The Taveta-Holili border post offers Kenya the best route to Burundi, Rwanda, and parts of Tanzania via the Voi-Taveta-Singida-Kobero road. Tanzania has failed to establish a geofence on a 15 km road beyond Taveta-Holili OSBP to open the transit corridor. This Non-Tariff Barrier is forcing truckers to take longer routes to deliver goods to Rwanda, Burundi, and parts of Tanzania. Across East Africa’s vibrant economic landscape, Kenya and Tanzania hold a prominent position as trading partners and nations engaging in a fierce economic rivalry. Collectively, the two countries collaborate in business, yet never-ending feuds often erupt into disruptions that hurt cross-border trade. Overall, the Kenya-Tanzania trade wars have slowed regional integration. These tensions have also limited the nations’ ability to exploit the full potential of the EAC market. Tanzania, with a projected economic growth of 5.5 per cent in 2023/2024, is actively positioning itself as a critical player in regional trade. In particular, Tanzania is tactfully intensifying competition with Kenya to control vital transit corridors. The ultimate goal is for Tanzania, which has outperformed Kenya as the top investment destination for investors looking to enter the region in the next two years, to enhance its position in the regional economy. The Taveta-Holili one-stop border post conundrum Built at an estimated cost of $12 million by TradeMark Africa (TMA), the Taveta-Holili One-Stop Border Post (OSBP) was launched in 2016. The post, which hosts key government agencies on trade from both countries, was established to enhance bilateral trade. Trade statistics indicate that the Taveta-Holili OSBP...

Zambia’s President Hakainde Hichilema has expressed a strong desire for the prompt restoration of the Tanzania-Zambia Railway Authority (TAZARA Corridor), which connects Zambia to Tanzania, to facilitate the efficient transportation of goods and petroleum products. TAZARA, originally constructed by the Chinese government in the 1970s, faces several challenges, including outdated infrastructure and a debt burden. During Zambia’s 59th Independence celebrations, President Hichilema engaged in numerous bilateral meetings with Tanzanian President Samia Suluhu Hassan in the Zambian capital, Lusaka. In September, it was revealed that a Chinese concessionaire is poised to assume control of the railway as early as the first quarter of 2024. President Hichilema conveyed to President Hassan that Tanzania should consider the Lobito Corridor through Angola as a complement to, rather than a competitor of, TAZARA. This plan involves the development of the Zambia-Lobito rail line, connecting northwest Zambia to the Lobito Atlantic Railway and the port of Lobito. The Lobito Corridor is a significant transport infrastructure project supported by the United States and is anticipated to enhance regional trade and provide open-access rail connections from the Atlantic Ocean to the Indian Ocean. Hichilema emphasized Zambia’s goal of establishing a 24-hour economy, underpinned by advanced digital technology. He proposed the transition from multiple border checks to a seamless, borderless movement of goods on both sides. President Hassan disclosed that Tanzania has allocated land for the construction of a dry port in Zambia and extended the storage time for Zambian goods at the Dar-es-Salaam Port. Zambia will be granted...

It is not every day that good news in one country brings joy to residents of another country. James Phiri, a merchant who imports and sells merchandise in Malawi’s Capital Lilongwe, smiles as he reads a news update that has just popped up on his mobile phone. It is about the upgrading, expanding and modernising of the Nacala Port facility in neighbouring Mozambique. “This is fantastic,” he says as he shows the update to his wife. For a long time, the long distance to the port has given Phiri a headache when importing mechandise due to the high transport costs which have to be factored into the final price, thereby making the goods expensive. Nacala is just 932km from Lilongwe and 700km from Liwonde, which is currently connected by rail to the Indian Ocean port. “This will definitely help to bring down the cost of transport, thereby making the goods more affordable,” he says. About 100km from Lilongwe in Zambia’s border town of Chipata, Jarson Mwendwa is equally excited by the refurbishment of the Nacala Port. PARTNERS – The three presidents and a Japanese official hold hands during the inauguration To Mwendwa, an improved Nacala provides shortest access to the sea. On October 7 this year, Mozambique President Filipe Nyusi, Malawi President Lazarus Chakwera and Zambia President Hakainde Hichilema opened the upgraded, expanded and modernised Nacala Port facility that seeks to improve regional trade and integration. The Nacala Port is Malawi’s shortest and cheapest route and will serve as a...

The cost of accessing regional and continental markets for Kenyan businesses is gradually easing, findings of a survey suggest, citing falling tariffs and customs procedures. Traders who participated in a survey conducted by top-tier lender, Stanbic Bank, said that the burden of high taxes, infrastructure challenges, political instability, and conflict when buying and selling goods with other African countries was on the decline. About 31 percent of Kenyan firms reported cross border trade landscape to be either “very or extremely easy” in May, according to the Africa Trade Barometer index, nearly doubled from 17 percent in September last year. “This result may be driven by the fact that the majority of the businesses exports are sold to fellow EAC member states, where the existence of the EAC Common Market Protocol and EAC Customs Union has eliminated or significantly reduced tariffs and trade barriers,” research analysts at Stanbic Bank wrote in the report released to media last week. “The EAC has also harmonised customs procedures among member states and thereby significantly simplified trade processes between member states, which may explain why the majority of businesses are not significantly impacted by customs regulations.” The findings further suggest that the proportion of surveyed businesses that were aware of opportunities under the African Continental Free Trade Area (AfCFTA) has nearly tripled to 43 percent in the review period compared with 15 percent previously. This came after the Accra-based AfCFTA secretariat launched a year-long Guided Trade Initiative (GTI) in October last year aimed at stress-testing...

Competition for port business has gone a notch higher in the East African coastal strip as cost and efficiency now threaten to snatch the pie from Kenya. This as Tanzania signed a multi-billion, long term modernisation project of the Port of Dar es Salaam with Dubai-based ports operator DP World to improve the port’s competitiveness. According to Dar es Salaam, the intention is to get a bigger share of the lucrative regional marine trade, currently controlled by the Port of Mombasa. On October 22 2030, Dar es Salaam inked a $250 million (Sh37.6 billion) 30 year concession agreement with DP World, for the later to operate and modernise the multi-purpose Dar es Salaam port, the largest in the country to improve its efficiency, competitiveness and trade opportunities for Tanzania and the region. While the port of Mombasa has been on top gear, due to its fairly modern facilities, earning it the moniker of the ‘Gateway to East Africa”, this position is gradually attracting the likes of Dar es Salaam, Djibouti and Somalia’s Berbera ports, according to the latest ranking by the World Bank’s Container Port Performance Index (CPPI) released in June this year. CPPI ranking favours Dar The CPPI rankings say that the Port of Dar es Salaam leapfrog Mombasa, which recorded a dramatic drop from position 296 in 2021 to 326 in 2022, below the port of Dar es Salaam which improved its CPPI rankings from 361 to 312 out of 348 in the review period. Though a long...

The first Global Gateway Forum opened in Brussels on 25 October. It brought together over 40 high-level Government representatives, financial institutions and business representatives to discuss the world's investment needs, debate solutions and seal new deals.  The panel discussions on the first day focused on green energy and hydrogen, research and education, critical raw materials and transport corridors. President von der Leyen opened the Forum, and stated: “The fate of present and future generations depends, more than ever before, on the quality and quantity of the infrastructure that connects us all. Team Europe has put forward Europe's largest global investment programme ever: the Global Gateway. Global Gateway is about giving choices to countries – better choices. Because for many countries around the world, investment options are not only limited, but they all come with a lot of small print, and sometimes with a very high price. That is why Global Gateway investments work: they are demand-driven and they are a win-win for all partners involved.” The full speech is available on EbS here and you can also read it here. On the eve of the Forum, the Global Gateway Civil Society and Local Authorities Dialogue Platform held its first meeting with Commissioner for International Partnerships Jutta Urpilainen. The platform is a space for civil society and local authorities to engage on Global Gateway rollout within the different investment priorities. Agreements and announcements made during the first day of the Forum: Green energy During the first day of the Global Gateway Forum, several announcements in the field of the green energy transition were made:...

The 1stGlobal Gateway Forum took place in Brussels on 25-26 October 2023 bringing together representatives of governments from the European Union and from around the world with the private sector, civil society, leading thinkers, financing institutions, and international organisations. Global Gateway (website) is the EU investment offer to its partners around the world aiming at narrowing the global investment gap and ensuring security of global supply chains. It boosts smart, clean and secure links in the digital, transport, energy and climate-relevant sectors, and strengthens education, research and health networks. It provides investments for transformative, large-scale projects, while offering a respectful and qualitative and equal partnership to partner countries in line with the Sustainable Development Goals and the Paris Agreement. Working closely with European Member States, financial institutions and the private sector, Global Gateway promotes investments in hard infrastructure by improving the enabling environment, regulatory frameworks, norms and standards, technology transfer, know- how, while respecting and promoting international standards of labour, protection and respecting human rights, as well as good governance and transparency, which makes the Global Gateway approach unique. Across the world, Global Gateway aims to mobilise up to €300 billion in investments between 2021 and 2027 with a mix of grants, concessional loans and guarantees to de-risk private sector investments. In 2023, almost Global Gateway 90 projects were identified together with beneficiary partners to ensure that the results improve their necessary infrastructure and connectivity. Examples of projects supported through Global Gateway: In the Balkans, Global Gateway projects will improve the transport and energy connectivity in the region....

At the Global Gateway Forum in Brussels, European Commissioner for International Partnerships, Jutta Urpilainen and Kenyan Deputy President Rigathi Gachagua, launched the EU-Kenya cooperation priorities for 2023. The announcement further bolsters already strong ties and solidifies shared values between Kenya and the EU. Commissioner Urpilainen, said: “The European Union is a strong partner with Kenya and with the launch of the EU-Kenya Cooperation priorities for 2023, we are committed to continue supporting the country’s green, digital and inclusive transitions. To meet this goal, our partnership is growing ever-closer, and I witnessed myself when visiting  the country at the beginning of October. In Nairobi, I could see the Global Gateway in action and how it is transforming citizens lives. Together, we can support Kenya reach its strong potential by providing the country with high quality hard and soft infrastructure through improving urban mobility and connecting schools to the internet.” Kenyan Deputy President Rigathi Gachagua said: “Kenya welcomes this statement of signature of the Multiannual action plan 2023-2024, which will be realised through the outlined priorities for the Multiannual Indicative programme 2021-2027. This collaboration marks a pivotal stride towards a brighter future for the Kenyan people. As we implement the Global Gateway, we are confident that sustainable development, and prosperity will rightfully take centre stage in our development cooperation narrative going forward. This underscores the strong shared vision for a partnership that is best for our people and prosperity and  a future where our nation transitions into a green economy, prioritizing environmental sustainability. The EU's commitment is...

Uganda Revenue Authority (URA) has revealed a collection of 85 billion shillings in the last four months under the Authorized Economic Operators- AEO program. During the four-month period, the 57 AEOs carried out 447 import transactions with partners in China, signifying the program’s impact on international trade. According to the figure is highly promising, emphasizing the significance of the AEO program in enhancing revenue operations. According to the World Customs Organisation, an AEO is a party involved in the international movement of goods that has been approved by, or on behalf of, a national Customs administration as complying with WCO or equivalent supply chain security standards. To qualify for AEO status, companies must meet specific criteria related to customs compliance, financial stability, and security standards. Speaking at the 10th-anniversary celebration of the AEO program at the Sheraton Hotel on Wednesday, Sarah Chelangat, the Commissioner of Domestic Taxes, underscored the pivotal role AEOs play in customs revenue collection, accounting for over 40 percent of international trade operations, which also contributes a lot to the total revenues collected. Chelangat urged more enterprises to join the AEO program, highlighting that Uganda currently boasts 129 national AEOs. “Over the last decade, URA has been hard to enhance the AEO program and make it more attractive for the traders. Can you encourage more traders to be part of this program?”  Chelangat asked the AEO business owners. Chelangat highlighted Uganda’s mutual recognition agreements with China and South Africa, offering favorable treatment to Ugandan AEOs in these...

Rusizi, 23 October 2023 – It is still dark when Verena, a mother of five, wakes up at the crack of dawn to start her day. She is part of a cross-border cooperative alongside other women with whom they purchase legumes and vegetables from wholesalers in Rwanda to resell at the border with the Democratic Republic of the Congo (DRC). For women who form a majority of the traders at the border crossing, this is a major part of their livelihood. The journey from Rusizi in Rwanda where they purchase their wares to the border is about 10 km. If they are unable to find a truck to transport everything across the border, they must carry the produce the last kilometer by themselves. This means spending a better part of the day on the road. “At times we carry products on our heads which in that case means going back and forth at least three times a day,” Verena explains. On any given day, cross-border traders like Verena make roughly RFW 1,000 in profit (USD 0.85) which is well under the global poverty line of USD 2.15. Trade at the border is the sole source of income for her family. Aside from slim profits, female cross-border traders like Verena face other obstacles to generating income on a daily basis. Among them, restrictions to mobility at the border brought by the global pandemic led to reliance on middlemen to sell their products at the Congolese markets at the expense of being shortchanged. “Agents often...