Uganda's failure to enforce regional standards aimed at eliminating cheap imports and informal trade is depriving the country of Shs900 billion export revenue annually. Bank of Uganda statistics indicate that last year, the country formally exported maize worth $70 million (Shs254 billion) out of the 4 million metric tonnes. However, industrial players are saying the earnings were less than the country's annual revenue potential of $320 million (Shs1.1 trillion) if everybody played their part. In a bid to protect Uganda's maize from cheap imports outside East Africa and informal traders who distort the market, sector players want government to enforce the regional standards. In an interview with Prosper Magazine, the chairman of the Grain Council of Uganda, Mr Chris Kaijuka, said: "We want government through the ministry of Trade, to enforce the EAC Maize standards so that traders start trading formally." He said Uganda is being flooded with maize imports from Brazil and the Southern African countries. Consequently, Ugandan maize has been subjected to unfair competition which has affected the prices and the country's market. Mr Kaijuka said once this is done, Uganda's maize will be able to attract a premium price. This means export earnings will increase and more jobs will be created. UNBS According to Uganda National Bureau of Standards (UNBS), EAC maize standards were established in 2013 and were ready for implementation by the member countries. Mr Hakim Mufumbira, UNBS manager Sstandards in an interview with Prosper Magazine said: "Uganda adopted the standards and they are ready...

East Africa remains the fastest-growing sub-region in Africa, with estimated growth of 5.6 percent in 2017, up from 4.9 percent in 2016. This is according to the recently launched 2018 African Economic Outlook. The report notes that Africa’s growth is expected to remain buoyant, reaching 5.9 percent in 2018 and 6.1 percent in 2019. Strong growth is widespread in East Africa, with many countries including Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda growing 5% or more. The report also attributes the accelerated growth particularly in Kenya and Comoros toprivate consumption while also pointing out that public investment in infrastructure has been instrumental in Djibouti and Ethiopia. It also indicates that construction activity will remain strong. In a few countries, continued expansion of services, including information and communications technology, will be imperative. Manufacturing activity may increase the share of industry, particularly in Kenya and Tanzania. From here at Optiven, we believe that this positive outlook, especially on construction activity in Africa, and in Kenya by extension, is a positive thing for the real estate industry. “We are extremely excited to be part of the key drivers who will help accelerate Kenya and Africa towards more economic prosperity. We envisage an Africa that will have addressed housing conditions for the millions of Africans who still have no place to call home,” says Mr. George Wachiuri, CEO, Optiven Group. African economies have been resilient and gaining momentum. Real output growth is estimated to have increased 3.6 percent in 2017 and to accelerate to...

The International Air Transport Association (IATA) has urged governments to urgently address the infrastructure challenges airlines face to secure the industry’s future. Alexandre de Juniac, IATA’s director general and CEO, said there are worrying infrastructure gaps, which are increasing operational costs and, thus affecting the profitability of the sector. The official also advised governments against privatisation of airport infrastructure, saying such a move would “eat into” the sector’s profitability. “We have not found the correct regulatory framework to balance the interests of investors to get profits with the public interest for the airport to be a catalyst for economic growth,” he said. In a statement, De Juniac highlighted the need to build infrastructure “robust enough to meet the high standards of airline operations and passenger convenience”. This comes at a time when government of Rwanda is seeking to establish new regulations governing civil aviation in the country to help make it more efficient. Minister of State for Transport Eng Jean de Dieu Uwihanganye told Parliament on Monday that the new regulations will improve the way Rwanda investigates aircraft incidents and accidents. Uwihanganye said the proposed regulations will also enable the national carrier, RwandAir, to enter new markets in Europe and America “with ease because the new aviation rules are in line with standards requirements in Europe and the US. The draft law empowers the Minister for Infrastructure to conduct aircraft accident investigations, among other things, and also outlines how Rwanda will work with other organisations and governments to investigate the...

China is funding a quarter of large-scale construction projects in eastern Africa, cementing Beijing’s ascendancy in the region’s economic diplomacy at the expense of traditional allies like the United States and the European Union. The latest Deloitte Africa Construction Trends Report 2017 shows China is bankrolling 25.4 per cent of the mega projects in the region. The Asian tiger is followed by international development finance institutions like the World Bank, which comes in second at 19.7 per cent. African development finance institutions like the African Development Bank (AfDB) are ranked third at 15.5 per cent while funds from private domestic sources stand at 4.2 per cent. The EU accounts for 8.5 per cent while single countries contribute seven per cent, with the US trailing at a paltry 2.8 per cent. “China is the most prolific funder of large-scale construction projections in East Africa financing one in four projects in the region,” says the report released in Nairobi on Tuesday. Deloitte Africa infrastructure and capital projects leader Jean-Pierre Labuschagne linked the rise of Beijing in the region to a cocktail of geo-politics as more EAC nations look east and abandon their traditional partners in the search for new markets by the resource-hungry Asian behemoth. “You have a Chinese economy that is booming, possibly flattening a little bit because of the world economy and so they are looking to export those services and expertise,” Mr Labuschagne told the Business Daily. “I do think there is also an element of a political statement behind...

Tanzania’s current gas exploration and mining is billed to be at the top of agenda, as Kenya is being ranked a major oil exporter before the year 2020. The event (June 14 – 15, 2018) at the Intercontinental Hotel will also celebrate its fifth anniversary as the most prestigious oil and gas summit in East and Central African region. The Summit will significantly address onshore oil discoveries in Uganda and Kenya and offshore gas discoveries in Tanzania and Mozambique, developments that have made East Africa a subject of intense interest among the global energy industry. “The speed at which governments in East Africa are developing hydrocarbon reserves is a clear indication of their will to cement the region’s reputation as the new hotspot in hydrocarbon exploration and production,” reads a statement from the Summit organisers dispatched to Arusha last week. President John Magufuli has since ordered that exploitation of natural gas begin “as a matter of urgency” while Kenya’s President Uhuru Kenyatta announced his government’s plans to bring forward the country’s oil production deadline by two years and ‘set a path’ that would enable the country to become a major producer and exporter by 2019. The Early Oil Pilot Scheme (EOPS) Agreement between the Joint Venture Partners and the Government of Kenya was signed on March 14, 2017, allowing all EOPS upstream contracts to be awarded. The EOPS production of 2000 barrels per day is expected to commence around the end of the year. “Africa Oil Corporation is society and...

The Ugandan government has announced plans to regain the role of primary operator of the country's power infrastructure. The East African reported that technocrats have been looking closely at the concession of South African utility Eskom, which operates the Kiira and Nalubale generation dams. Eskom's contract is due to expire in five years. According to media, Uganda Electricity Generation Company Ltd (UEGCL) is already preparing to carry out repairs at Nalubale dam. The dam was built in 1954; experts have highlighted that it has passed its lifespan. Eskom, as per concession agreements, should fix any anomalies in the dam; however, UEGCL's intended active involvement raises questions about whether the government is making a u-turn on its privatisation policy. "Those are our assets and Eskom's contract is ending in five years so there is no way it can invest in the dam," said UEGCL chief executive Harrison Mutikanga. "We are going to carry out a cost benefit analysis of the Nalubaale dam. It will help us determine whether to abandon it or not," Mutikanga added. Regaining power infrastructure The East African claims to have seen a document outlining the government's move to regain divested companies. Top on the list is the electricity sector. Read more... According to the document, the government is considering amendments to several laws including the Electricity Act 1999 and the Public Enterprises Reform and Divesture Act 1993, to clarify roles of different players, sourcing for funding, making the electricity sector government business and making it mandatory for the private sector...

East African countries are leading in implementing Africa's agricultural transformation policies. According to a report on the Malabo declaration, Southern Africa comes second. The declaration is a set of agricultural goals that Heads of State attending the African Union Summit in Malabo, Equatorial Guinea in June 2014 adopted, to be attained by 2025. The Africa Agricultural Transformation Scorecard tracks progress in commitments made by governments. East Africa managed an average score of 4.20, which indicates it is on track to meeting its commitments when assessed against the 3.94 benchmark for 2017, with five out of the eight regional countries that submitted their progress to the AU, managing the minimum 3.92 score. Rwanda was ranked the best agriculturally transformed country in Africa with a score of 6.1, thanks to political and institutional reforms. Burundi scored 4.7, Ethiopia 5.3, Kenya 4.8 and Uganda 4.5, to cement the region's 4.2 score ahead of the Southern Africa region which scored 4.02, and Northern, Central and Western Africa which scored 3.83, 3.62 and 2.35 respectively. Speaking at the launch of the scorecard, Ethiopian Prime Minister Hailemariam Desalegn asked the seven countries that did not submit their reports to do so in the next review in 2020. Source: All Africa

In Uganda’s Mbale Town, a promising farmers’ society is pooling local coffee producers into a thick band of wealthy people. And it is easy to see how. Established in eastern Uganda, the Bugisu Co-operative Union (BCUL) is a group of farmers, processors and exporters of pure Arabica coffee. With a capacity of over 100,000 tonnes a year, the society has survived largely on its strong supply chain. It has more than 300 smaller growers’ societies at the grassroots. Uganda produces over three million 60-kg bags of coffee per year, earning about Sh50 billion ($500 million) in revenue. BCUL may well be adding a lot to those figures. But how did Uganda get here, while neighbour Kenya continues to uproot its coffee trees? There is a story to it, officials at BCUL told the Sunday Nation. Four decades ago, Kenya was the leading coffee producer in East Africa. But today, the farmers’ incomes have dwindled and production has dropped from 130,000 tonnes in 1980s to about 40,000 tonnes in 2016/2017 financial year. Then, Uganda was under rogue dictator Idi Amin Dada in the 1970s. A study by the European Economic Community found that Uganda’s production of key export crops — coffee, cotton and sugar — slumped between 1970 and 1978 by about 51 per cent. The most lucrative trade between Uganda and Kenya at the time was smuggled coffee. But from 1988, three years after President Yoweri Museveni of the National Resistance Movement (NRM) took over power, Uganda’s house started being in...

Trade Ministers from Uganda and South Africa have reaffirmed their commitment towards facilitating trade and investment flows between the two countries. The two ministers Amelia Kyambadde, the minister of Trade, Industry and Cooperatives and her counterpart Gratitude Bulelani Magwanishe, the South African Deputy Minister for Trade and Investment signed a declaration on Tuesday in Pretoria, South Africa recognising the imperative to build a mutually beneficial trade and investment relationship that supports the industrialisation imperatives of the two countries. The ministers met during the 2nd South Africa – Uganda Joint Trade Committee (JTC) Meeting in Pretoria. The meeting followed the 1st JTC held in November 2015 Kampala, which was established to strengthen the trade relations between Uganda and South Africa. In her remarks, Minister Kyambadde underscored the widening and imbalanced trade and investment flows between Uganda ans South Africa. By 2016, Uganda’s trade imbalance with South Africa was estimated at  $ 198Million, Uganda’s imported from South Africa goods worth $215 million against Uganda’s exports worth $17 million. “Imports from South Africa are mainly processed and manufactured products that include flat rolled products of iron or non-alloy steel, transport goods vehicles, electricity meters, semi-finished products of iron and non- alloy steel, printed matters, apples and medicine, while Uganda’s export was mainly coffee,” she said. Kyambadde noted that there has been an increase in the South African Companies operating in the Ugandan economy yet the number of Ugandan Companies operating in the South African market was minimal. Currently, there are over 60 South African...

The UN specialized agency on civil aviation on Thursday hailed the East Africa Community (EAC)'s aviation safety record. Barry Kashambo, the regional director for Eastern and Southern Africa at the International Civil Aviation Organization (ICAO) told an aviation forum in Nairobi that the high standards has been validated by the continued progress in the ICAO safety audits taken in the last four years. "Four out of the five audited EAC states are among the 12 that are above 60 percent effective implementation score in the Eastern and Southern Africa," Kashambo said. "This translates in 80 percent of the audited states being above the Abuja target of ensuring that Africa's aviation accident rate be in line with global average by end of 2015," he said during the occasion of the official opening of the fourth EAC Symposium on Aviation Safety. The two-day symposium was organized by the Kenya Civil Aviation Authority (KCAA) in collaboration with the Civil Aviation Safety Oversight Agency (CASSOA), the administrative agency of the East African Community (EAC) that focuses on safe and secure development of aviation in the region. The regional aviation conference brought over 300 delegates from East Africa and across the world to review ways to improve aviation safety in the EAC. Kashambo said ICAO shares the region's desire to build resilient state aviation oversight systems that will ensure protection of the lives of the traveling public. He noted that the target of improved safety can only be achieved if the region fulfills certain prerequisites...