News Categories: Uganda News

East Africa arrivals lift Kenya’s tourism under open travel

Visitor arrivals into Kenya from East Africa has grown substantially in the past three years, official data shows, partly signalling the benefits of an open visa scheme for the region. Kenya last year recorded a combined arrival of 95,845 visitors from Uganda, Tanzania and Rwanda, up from 80,841 in 2016. In 2015, some 58,032 visitors arrived from these countries. “Uganda topped the list of Kenya’s top source markets in Africa, growing by 20.6 per cent to 61,542 arrivals,” Kenya’s Tourism ministry said in its sector performance report for 2017. Arrivals from Tanzania also grew by an impressive 21.8 per cent in last year to 21,110 compared to 2016. Visitors from Rwanda increased to 12,193 in 2017 from 11,658 the previous year. Uganda saw its share in Kenya tourism arrivals nearly double in the past three years. Data by the Kenya’s Tourism ministry showed that Uganda was Kenya’s third largest source market for tourism with an overall share of 6.4 per cent last year compared to 3.9 per cent in 2015 and 5.8 per cent in 2016. East Africa has implemented multi-entry single tourist visa since February 2014. This visa enables visitors travelling in Kenya, Uganda and Rwanda to travel across all the three regions using a single permit that can be obtained in any of these countries. The move is a way of encouraging integration of citizens and cross-border trade. East Africa contribution The contribution of visitor arrivals from East Africa helped grow Kenya’s overall tourism arrivals to 1.47 million...

Changing climate pushes producers to alternative energy

Climate change is pushing governments and players in the energy sector to innovate and diversify their sources of power. Power producers are now lighting homes, businesses and public buildings using off-grid innovations. For farmers who rely on rain-fed agriculture, off-grid solar solutions have enabled irrigation, a breakthrough that will help beat the effects of harsh weather conditions ravaging the continent. The Uganda Solar Energy Association (Usea), the apex body for solar companies, last week hosted the Africa Energy Forum, an exhibition in Kampala, with support from USAid through its Power Africa initiative. More than 40 local and international solar companies gathered to showcase off-grid solutions, which, according to Usea chairman Emmy Kimbowa, will catalyse economic growth. Uganda’s electricity generation capacity is 870MW, with peak demand at 550MW. Demand is increasing by 10 per cent every year so electricity shortfalls are expected until more power generation facilities are brought onto the grid. With the bulk of grid electricity generated through large hydro sources (about 85 per cent), Uganda’s power supply is susceptible to drought, intermittent rainfall, and reduced river flows — factors that are expected to become more acute with climate change. In addition to the 600MW Karuma and 183MW Isimba hydropower projects set to come onstream later this year, Uganda is also pursuing a more diversified energy mix in order to meet its target of increasing installed capacity to 2,500MW by 2020. The country is making greater use of other renewable sources including medium and small-scale hydropower, biomass, solar, and...

EAC agrees to protect small traders in cross-listed firms

Small and individual investors of cross-listed companies in East Africa have been handed a lifeline after the Council of Ministers agreed on rules that give them powers to prevent hostile takeovers engineered by majority shareholders. The EAC member states have up to October this year to pass and ratify laws to cement the regulation that will see shareholders with less than 50 per cent of the total shares of companies challenge decisions on mergers and acquisitions taken by majority shareholders. The directive, which has been gazetted, will clip the wings of domineering majority shareholders and encourage cross-border investments in the region. “The objective of this directive is to establish minimum guidelines for the conduct of takeover bids and mergers and ensure an adequate level of protection for holders of securities throughout the Community,” said Dr Haji Ali Kirunda Kivejinja, chairperson of the Council of ministers and Uganda’s Minister for East African Affairs. Equal treatment According to the directive, all shareholders holding the same class of shares in a company will be treated equally and the boards of these companies will be required to give all shareholders an equal chance to decide on the merits of a takeover. “The board of an offeree company (company selling the shares) shall act in the interests of the company as a whole and shall not deny the holders of securities the opportunity to decide on the merits of the bid,” said Kivejinja. According to the EAC gazette notice, the partner states are required to...

Traders warned over substandard grain

KAMPALA - The Uganda National Bureau of Standards (UNBS) has warned traders dealing in grain that failure to adhere to standards set up by East Africa Grain Council (EAGC) will not be tolerated. "Regulation is going to force everyone trading in grains to certify before any sales are made," Patricia Ejalu, the deputy executive director for standards at UNBS, said. He was addressing participants who included grain farmers, traders in grain sector, processors and members of the East African Community. This was during the launch of cereals and pulses standards at the Imperial Royale Hotel in Kampala recently. The event was organised by East Africa Grain Council (EAGC) and supported by USAID East Africa Trade Investment Hub. "It is not right to put goods in the market and then certify later. It is not going to be business as usual," Ejalu said. The East Africa standards of cereals and pulses includes staple food such as soya beans, dry beans, millet flour, sorghum flour, maize grains, milled maize, wheat grains and wheat flour. Gerald Masila, the executive director of EAGC emphasised the importance of East African standards, saying safety and quality standards are critical for more trade, which is profitable. He informed participants that EAC partner states are supposed to ensure that standards are implemented. “We want trade to happen and more trade in terms of volume and frequency which has got less cost of transaction and less barriers," Masila said. Yohannes Assefa, the director agriculture and agribusiness USAIF East Africa...

Power Africa launches initiative to boost energy access in Uganda

Power Africa, a US government-led initiative, has announced the launch of the Power Africa Uganda Electricity Supply Accelerator, which will boost the east African country’s generation capacity by 1,000MW. With an estimated cost of $11 million, the facility will assist the Uganda government in establishing 1,000,000 new connections by 2020. The announcement occurred at the Uganda Solar Energy Association Expo in Kampala,  where senior officials from the Governments of Uganda and the United States as well as other Power Africa partners highlighted important developments in Uganda’s off-grid electrification efforts. US Ambassador Deborah R. Malac and UK High Commissioner Peter West also announced programmes to support the continued growth of energy access in Uganda in order to increase economic opportunities for all Ugandans. “Solar home systems can contribute greatly to national development,” said Ambassador Malac. “With solar energy, we can power irrigation systems; we can store medicine in rural health centers; and we can improve the quality of education children receive.” Read more... Supporting Uganda sector growth In a statement released by the U.S. Embassy in Uganda, they said the Accelerator builds on existing Power Africa support to the Rural Electrification Agency and the Electricity Regulatory Authority for enhancing electricity access and improving the regulatory framework for mini-grids. Energy Africa, a UK Government-led initiative, has been working closely with other development partners and the Government of Uganda to support the growth of the solar market by establishing a suitable enabling environment. During the Expo, UK’s Department for International Development announced the launch...

Bill seeking to ease cross-border movement tabled in parliament

A newly proposed  law on immigration and emigration in Rwanda would make it easier for people in border communities to cross borders without difficulty, Members of Parliament in the Lower House heard yesterday. The MPs on Thursday approved the basis of a draft law that seeks to amend the current law on immigration and emigration matters, which has to be reviewed to incorporate penalties on immigration and emigration related offences among other changes. While presenting the draft law in Parliament yesterday, the Minister in the Office of the President, Judith Uwizeye, said that provisions have been added in the draft law to make it easy for people living in border communities to travel to neighbouring countries. Under Article 57 of the draft law, the government has proposed that the Directorate General of Immigration and Emigration be allowed to work in consultation with local leaders and other relevant authorities to establish more crossing points to strictly facilitate movements of border communities. The draft law directs the directorate to put in place instructions governing the management of the crossing points. “It’s important that we make it easy for Rwandans to travel to neighbouring countries, especially those who live near the borders. Some of them would travel long distances to reach a gazetted border post,” Uwizeye told MPs. Immigration officials told The New Times that the move aims to close a gap in the law whereby people in some border communities were not explicitly allowed by the law to cross the nearby borders without...

New regional staple foods standards to boost trade

Kampala. Intra-regional trade in quality cereals and pulses is expected to increase following the launch of the gazetted East African standards of staple foods. Speaking in an interview on the sidelines of the launch of the nine standards for staple foods on Wednesday by East Africa Grain Council (EAGC) in Kampala, Mr Gerald Masila, executive director EAGC, said the lack of harmonised regional standards has for a long time barred trade as each East African country has been using its standards. “We have lost out on a market position. I do not have a number right now. But Uganda could easily double its sales to the region by more than 100 per cent if the quality standards of the grains produced here meet the specifications. This means there would be fewer rejections and much more access to markets. Uganda’s commodities would be able to fetch a better price and sign up continuous supply agreements,” he said. According to EAGC RATIN, a system that gives farmers, traders and processors a gateway to regional market information, Uganda has exported about 10.1m metric tonnes of cereals and pulses within EAC and The Common Market for Eastern and Southern Africa (Comesa) countries in the last seven years. On average, the country has for the last seven years been earning Shs1.9m per metric tonne of cereals and pulses exported. Cereals The standards will affect cereals such as maize, millet, wheat, sorghum, rice and pulses such as beans and peas. The revised standards are expected to...

East Africa growth forecast to remain buoyant in 2018

Resurgence in agriculture, infrastructure and manufacturing is expected to lift East Africa’s economic performance in 2018, an outlook by the African Development Bank (AfDB) shows. East Africa remains the fastest-growing sub region in Africa, with estimated growth of 5.6 per cent in 2017, up from 4.9 per cent in 2016. Growth is expected to remain buoyant, reaching 5.9 per cent in 2018 and firming further to 6.1 per cent in 2019. “Strong growth is widespread in the sub region, with many countries including Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda growing five per cent or more” the bank says in its Africa Economic Outlook 2018. Agriculture will rebound after poor harvests last year on improved rainfall, the bank said noting that inflation spiked to nearly 10 per cent in the region, fuelled by a rise in food prices especially in Kenya, where the effects of the early 2017 drought reduced the maize harvest, causing chronic shortages of the staple. Median inflation “Median inflation is projected to fall sharply in East Africa, partly as a result of an improved harvest” the report notes. Consumerism and mega infrastructure projects are s also expected to bolster growth this year. “Private consumption is the most important driver of growth in Comoros and Kenya while public investment in infrastructure has been instrumental in Djibouti and Ethiopia. Construction will remain strong. In a few countries, continued expansion of services, including information and communications technology, will be key,” the report says. “Manufacturing may increase the share of...

Uganda launches harmonized EAC grain standards

The Eastern Africa Grain Council (EAGC) has launched 9 product standards for staple foods in Uganda. The 9 product standards are for food crops that fall under grains category such as rice, maize, sorghum among others. The grain standards are expected to boost and increase grain trade between Uganda and other countries within the East Africa region by reducing technical barriers related to standards which had previously hampered such trade. Handing over the developed standard’s to the government of Uganda, the Assistant commissioner in charge of EAC integration in the Ministry of East African Affairs, Annet Namara said the standards will play a big role in economic integration among the EAC member states. “The EAC has been implementing the EAC Customs Union since 1st July 2005. This was in effort to eliminate internal tariffs on goods produced within our territories in order to promote intra EAC Trade, adopt a common tax policy on third party goods and eliminate all non-tariff barriers to trade and now with the coming of the grain standards, we shall see great progress in trade among EAC member state,” she said. The Deputy Executive Director in charge Standards at the Uganda National Bureau of Standard, Patricia Ejalu reiterated the bureau’s plan to enforce compliance to harmonized standards by tightening checks on grain quality parameters at the border check points to ensure that consumers feed on safe food. Ejalu said Uganda being one of the leading producers of grain; her traders will benefit more from the harmonized...

The Rise of China and the Fall of the ‘Free Trade’ Myth

‘America first does not mean America alone,” President Trump declared last month at the World Economic Forum in Davos, Switzerland. This sudden burst of pragmatism from an avowed nationalist showed what a difference a year can make. Denouncing the “false song of globalism” during his presidential campaign, Trump, on his third full day in office, canceled the Trans-Pacific Partnership, a regional trade deal with Japan and 10 other countries. He then denounced Canada, Germany and South Korea for exporting more to the United States than they import. He promised to renegotiate trade pacts with Europe, Canada and Mexico and get a better deal for American workers. In Davos, however, he reached out with conciliatory words to the very free-trading and globalizing elites he has consistently maligned. Clearly, Trump’s views on trade and globalization have evolved since his insurgent campaign. This may well be because of the rapid gains in the past year of a country he did not mention by name. In fact, Trump chose in Davos to affirm that “America is open for business” because it was in these same Alpine heights, three days before Trump was inaugurated as president, that China seized the opportunity to claim leadership of the global economy. With the United States seemingly in a protectionist crouch, China had become, despite all its problems, indispensable. “In a world marked by great uncertainty and volatility, the international community is looking to China,” Klaus Schwab, the founder of the World Economic Forum, said last year while introducing...