News Categories: Uganda News

Japan allocates 20bn US dollars to Africa

JAPAN has pledged to allocate 20 billion US dollars (about 50tri/-) to African countries, Tanzania inclusive, in the next three years to support strategic projects and spur economic reforms in the continent. Japanese Prime Minister Shinzo Abe disclosed the hefty funding during the official opening of the seventh edition of the Tokyo International Conference for African Development (TICAD), which kicked off in Y okohama, Japan, yesterday. Mr Abe observed that Japan will continue to expand cooperation to develop Africa’s human resources, improve elementary education for children and help establish universal health care coverage. He noted that the established cooperation between Japan and Africa is further strengthened through TICAD, pledging to encourage the Japanese private sector to advance investment in the continent. According to Premier Abe, investments by Japanese companies in various African countries to date stand at around 20 billion US dollars. Expounding further on various programmes executed by Japan, including the ABE-African Business Education Initiative, the premier noted that over 350 youth are being supported to pursue practical trainings, with 3,000 others going through the programme as trainers. He maintained that Japan remains committed to support the health sector particularly on areas of medicines, nutrition and trainings on capacity building in the various African countries. He also pledged to continue supporting the continent in developing infrastructure, including roads, ports as well as technical support. Prime Minister K assim Majaliwa who is attending the meeting on behalf of President John Magufuli noted that Tanzania is among the largest producers of...

Rwanda hosts world’s 3rd Global Logistics Convention

Freight forwarders, transporters and related industry representatives gathered at the Kigali International Convention earlier this week to discuss weighty regional freight issues at the 3rd Global Logistics Convention. And although it was a two-day global talk shop that strove to cover logistics from across the world, the emphasis fell on regional rail enhancement, the transportation of water, and corruption – three crucial elements that top the agenda in the East African Community. Rwandan daily, New Times, reported that at Monday’s opening session, the country’s permanent secretary for trade and industry, Michel Sebera, “said that the logistics sector is central to economic development and requires attention if countries are to succeed in their development initiatives”. Abhishek Sharma, transport director at TradeMark Africa, said: “The main player that invests money in logistics infrastructure is the government. “But the main user of the infrastructure is the industry, the freight forwarders, and others. It is very important that when we are planning logistics, there is a constant dialogue between the government and the logistics players.” In recent times, Sharma said, “constant dialogue” between all concerned have ensured significant logistical improvements for land-locked Rwanda’s central and northern corridors through Tanzania, Uganda and Kenya. It had resulted, he said, in the substantial reduction of transit times and road haulage costs. On the central corridor alone, Sharma explained, the average speed of a truck travelling cross-border had doubled, from 7km p/hour to 14km p/hour. Switching to corruption, Denis Karera, vice-chair of the East African Business Council, said it...

TradeMark Africa To Fund FEAFFA With 3.5 Million US Dollars

TradeMark Africa (TMA) has announced funding the Federation of East African Freight Forwarders Associations (FEAFFA) with USD3.5 million to support a four-year program that aims at enhancing skills for customs agents, freight forwarders and warehouse providers in East Africa. The program implemented by FEAFFA across East Africa will offer timely training that is in tune with changing technologies and logistical needs, thus enabling customs agents and freight forwarders to provide competitive and high-quality end to end services. The two institutions made the announcement as they signed a grant agreement at the ongoing Global Logistics Convention in Kigali. Speaking at the event, Ms. Ithau said, “The high logistics costs in East Africa are driven not only by the high cost of inputs required for delivery of goods but also the inefficiencies and poor quality of logistics service delivery.” On his part, Mr. Seka highlighted important components of the program saying, “One key component is the updating of the East Africa Customs and Freight Forwarding Practicing Certificate (EACFFPC) curriculum and training materials. A strong warehousing module will be introduced to address the skills gaps in this critical element of logistics. We have focused on enhancing FEAFFA’s online learning program as this will ensure that training is available and accessible in many parts of the region. With this funding, FEAFFA will introduce a higher – level qualification that will build on the success of the certificate program. The higher-level training program intends to expose practitioners to global practices and position them as global...

Freight forwarders commend removal of cash deposit on containers

Regional freight forwarders on Friday penned two vital agreements with foreign associations including one removing the longstanding burden where companies were compelled to pay a cash deposit fee of $2,000, per container, before leaving the port. This came after a Memorandum of Understanding was signed between the Federation of East African Freight Forwarders Associations (FEAFFA) and the Dubai based National Association of Freight and Logistics (NAFL). Fed Seka, Chairperson of FEAFFA who signed the deal with Alexis Perinet-Marquet, Director of Product and Business Development at Switzerland-based Viaservice SA, at the end of the third Global Logistics Convention held in Kigali told Sunday Times that it is a big relief to Rwandan and regional businesses. The longstanding issue of container guarantees charges at the port, Seka said, was impeding business as the amount charged per container was too much. Now that it has been removed, he said, the cost of doing business will also reduce. Seka said: “There will no longer be cash deposits on containers; there is an issue which has been there, called a container deposit guarantee of $2,000 paid to the shipping line before one lifts every single container from the port.” “That money would be refunded once one returned the shipping boxes but it was a lot of money hindering our business. Imagine if you had 20 containers how much you would leave at the port as a container guarantee. That would be way too much.” With the signing of the MoU, he explained, Viaservice ensures the...

Trade Mark East Africa, FEAFFA sign $3.5 mn deal at Rwanda convention

Rwanda has implemented a number of trade facilitation initiatives including, Rwanda Electronic Single Window, which has enabled faster clearance of imports and exports. By Our Correspondent August 30, 2019: At the 3rd Global Logistics Convention, $3.5 million deal was signed between Trade Mark East Africa and the Federation of East African Freight Forwarders Association (FEAFFA), to raise capacity in East Africa’s logistics sector. The convention is held at the Kigali International Convention Centre, Rwanda from August 29–30. The four-year EAC Logistics Sector Skills Enhancement Program funded by the United States Agency for International Development (USAID) through TradeMark Africa, and implemented by FEAFFA; will address existing skills gaps in the region that have since resulted into high costs of doing business within the community. The programme will help build skills of customs agents, freight forwarders and warehouse operators. TradeMark Africa’s director, Patricia Ithau and FEAFFA president Fred Seka signed the agreement. During the 3rd Global Logistics Convention, PS @mikesebs said that this convention will offer a unique opportunity to professionals in the transport and freight logistics sectors from all over the world while sharing best practices with transporters and logistics policy makers.pic.twitter.com/nsb0cjqJhJ - Min of Trade |Rwanda (@RwandaTrade) August 29, 2019 After the signing, Seka said the funding will facilitate introduction of a higher-level qualification that will build on the success of the certificate program, such as exposing practitioners to global practices and position them as global logisticians. “The gender gap is still prevalent in the logistics sector. Women make up to only 20 percent...

EABC calls for closer partnerships with regional governments

The East African Business Council has called for closer government partnership and involvement with the private sector in policy formulation to enhance the competitiveness of the EAC region. This, according to the EABC Chairman Mr Nick Nesbitt will also enhance value addition in agriculture, mining and services sectors among others as well as strengthening regional value chains. “EABC is a respected coordinator and holds respective dialogue with EAC governments with balanced regional views and policy stance,” he said. Mr. Nebsitt  was speaking during a courtesy visit to Uganda’s President Yoweri Kaguta Museveni, and highlighted the importance of fast tracking the  comprehensive review of EAC CET; Liberalization of Opens Skies;  One Network Area on Telecommunication; Harmonization of Standards in the EAC; Strengthening the EAC Secretariat on enforcement of laws; Market access with Democratic Republic of the Congo; Transport interlinkages in the region – Road, Rail and Water (lake Victoria); Inter-governmental trade dispute resolution mechanism and closer government involvement and government partnership with the private sector. “Comprehensive review of the EAC Common External Tariff (CET) is yet to be finalized four years down the line adversely affecting intra-EAC trade,” said Hon. Peter Mathuki, EABC CEO. Mr. Nesbitt further appreciated H.E. President Museveni for resolving border misunderstandings for the common good of the East African people as enshrined in the Treaty. “This will go a long way in instilling confidence to the citizens and business community,” said Mr. Nesbitt adding that a healthy and vibrant private sector will support social and economic development of the...

Logistics expert highlights consequences of unsolved logistic challenges in EAC

Ahead of the third Global Logistics Convention, in East Africa, which takes place on August 29-30 at the Kigali Convention Centre, Abhishek Sharma, TMA’s Senior Director for Transport spoke to Business Times’ James Karuhangaabout the state of the logistics sector in the region. According to the logistics expert, in the past 10 years, the status of logistics in the region has improved significantly but challenges persist and that is why such a conference comes in handy. Most importantly, he noted, it is very important that countries work very hard to reduce the cost of logistics because poor people bear the brunt more when things go wrong in the logistics sector. The excerpts; What is the situation of the logistics sector in the region at the moment? In the last, 10 years, the status of logistics in the region has improved significantly; the time and the cost has come down dramatically along both the northern corridor and the central corridor. For example on the central corridor, for Rwanda, while the average speed of truck on transit was 7 kilometers an hour it has now improved to as much as 14 kilometers an hour and so, that is doubling is speed along the corridor. This has resulted in a reduction in prices of logistic movements along the corridor. Which studies back this up? The Logistics Performance Index of the World Bank also shows a significant improvement in all the countries of the EAC on logistics. What it shows is that normally, the logistics performance of...