Traders risk up to Sh500,000 in fine or a year in jail if they fail to register online for clearance of all imports and exports as the State moves to plug loopholes manipulated to ship in or export products. This follows the creation of the National Electronic Single Window System, which is now the only entry point to register and clear all inbound and outbound cargo. The online clearance system is linked to the Kenya Revenue Authority and the Kenya Ports Authority, giving the State more tools to tame tax evasion. “The system shall serve as a single entry point and platform for any person involved in trade and transport to lodge documents electronically, including import or export documents for processing and approval,” the Act reads in part. The law took effect on July 11 and revokes an Executive Order of 2010 that the government relied on to ensure that imports or exports are cleared electronically and ensure compliance with all taxes and duties. State agencies, including the Energy and Petroleum Regulatory Authority, Kenya Plant Health Inspectorate Service and Agriculture and Food Authority have also been linked to the system. An estimated 15,000 traders registered with the systems last year, highlighting why the government pushed for changes to the law to make listing compulsory. The platform will ease clearance hitches by offering a single paperless platform, a shift from the present situation in which traders have to visit every single entity. The system is key to facilitating cross-border and international...

The East African Business Council (EABC) just released its Barometer on Business & Investment in the EAC & Outlook 2022/2023, which captures the sentiment of the business stakeholders about how they see the business environment within the EAC. EABC is the apex advocacy body of private sector associations and corporates from the six East African Community (EAC) partner states Burundi, Kenya, Rwanda, South Sudan, Tanzania, Uganda, and DRC. It was established in 1997 to foster the interest of the private sector interests in the EAC integration process with the primary mission of promoting sustainable private sector-driven growth. EABC has Observer Status at the EAC level which offers an avenue for advocating the private sector interests in the EAC integration agenda with a view to promoting a conducive business environment in the region. This year’s EABC barometer shows the rate of investments, operation, and performance of businesses in the EAC bloc is recovering, and business stakeholders are optimistic about business in EAC. Economic Recovery from Covid-19 in EAC The Covid-19 pandemic has had a profound effect on businesses in the East African Community and globally. Some containment measures employed by EAC partner states to curb the pandemic such as curfews and closure of certain businesses negatively affected businesses in various ways. On the other hand, other businesses thrived by taking advantage of the new opportunities provided by the pandemic for instance manufacture of protective equipment, and medical care among others. The economic effect of the pandemic has been a subdued GDP...

Aid for trade is a crucial part of the integrated policy approach needed for trade and trade policies to advance sustainable development and support environmental objectives in least developed countries. At the Eighth Global Review of Aid for Trade on 27–29 July 2022, governments and stakeholders shared views on how best to harness aid for trade to support a just transition to sustainable trade that addresses the needs of developing and least developed countries. Extreme weather events and changing climate conditions are causing hundreds of millions in economic damage and severe suffering in least developed countries (LDCs). Eritrea, Madagascar, Mauritania, Chad, the Democratic Republic of Congo, Sudan, Mali, Ethiopia, and Congo face climate adaptation costs higher than their national spending on healthcare, with these adaptation costs ranging from around 5–22% of gross domestic product. The ocean states of Kiribati, the Solomon Islands, and Tuvalu and countries like Bangladesh, Senegal, Tanzania, and Uganda are flooded with plastic pollution with tremendous economic and health costs. From Laos to Madagascar and Guinea, rural populations, which account for two thirds of people living in LDCs, are experiencing the loss of biodiversity and ecosystems on which they directly depend for their subsistence. Faced with the huge social and economic toll of these planetary environmental crises, despite bearing the least historical responsibility for them, the world’s poorest nations have repeatedly highlighted the need for international support measures, including through Aid for Trade to address their trade-related impacts. Fostering aid for trade for sustainable development As governments and stakeholders...

Trade initiatives must keep up with the evolving needs of developing and least developed countries (LDCs) in order to adapt to climate change as part of a global economic strategy, participants heard at the Aid for Trade Global Review on 28 July. Open trade and lowering barriers to environmental goods and services must play a critical role in providing affordable access to advanced technologies needed to transition to a low-carbon economy, speakers said. At a plenary session on the second day of the Aid for Trade event, speakers focused on how this initiative can help develop critical trade infrastructure while supporting resilient, climate friendly and inclusive trade outcomes. The session benefited from the expertise and practical insights of experts and financing partners engaged in green transition activities. In his opening remarks, WTO Deputy Director-General Xiangchen Zhang told participants that climate change is one of the most pressing challenges of our time. The World Bank estimates that natural disasters already cost low- and middle-income countries USD 390 billion per year regarding damage related to water, transport and power infrastructure. “In that context, adapting to climate change by reducing climate-related risks and vulnerability is a key economic strategy. International trade can contribute to climate change adaptation efforts by enhancing economic resilience to extreme weather events through diversified supply chains, timely provision of essential goods and services, improved food security, and greater access to climate-related adaptation technologies,” he said. DDG Zhang stressed that the transition to a low-carbon economy entails a substantive transformation...

Digitalization brings new opportunities in trade and creates the potential to underpin resilience in times of crisis The digital transformation of customs and borders in Africa could improve efficiencies in processes and yield trade gains on the continent of US$20 billion a year Single Window can cross-check credentials for consistency and traceability, reducing errors and fraud The digital transformation of customs and borders in Africa could improve efficiencies in processes and yield trade gains on the continent of US$20 billion a year. Digitalization brings new opportunities in trade and creates the potential to underpin resilience in times of crisis. The digital transformation of customs and borders in Africa could improve efficiencies in processes and yield trade gains on the continent of US$20 billion a year. With digital trade in place, pre-existing bottlenecks in infrastructure can be tackled, efficiencies can be leveraged, and Innovative solutions can be harnessed. However, countries in Africa vary greatly in their readiness for digital trade. In African countries where economic resilience must be fostered, jobs must be created and entrepreneurship must be facilitated, digital trade must be in full swing. How digital automation is easing the flow of trade Thanks to technological advances, importing and exporting goods and services in Nigeria has become easier thanks to the rise of online international trade administration portals. These online portals automate the experience for many stakeholders including customs officials, businesses importing finished goods and raw materials for manufacturing, and those exporting their goods across the globe. Blockchain technology, Artificial Intelligence (AI),...

TANZANIA and Zambia have agreed to look into ways of harmonizing custom system to boost cross-border trade between the two countries, the Minister for Investment, Industry, and Trade, Dr Ashatu Kijaji has said. She said in Dar es Salaam on Wednesday that harmonization of custom system was one of the measures agreed at a meeting with her Zambian counterpart, Chipoka Mulenga, on Wednesday to resolve red tapes that affect smooth trade operations between the two countries. “We have discussed possibility of having single customs system to ease movement of cargo from Dar es Salaam Port to Zambia or Congo,” said Dr Kijaji after a ministerial meeting held a day after President Samia Suluhu Hassan and her Zambian counterpart Hakainde Hichilema set the tone in invigorating trade relations between the two countries after meeting in Dar es Salaam, on Tuesday. Among other issues, the two Presidents discussed and agreed on addressing challenges facing long-haul drivers and small-scale traders across the border of the two countries. They deliberated on easing trade barriers at the Nakonde Tunduma One Stop Border Post (OSBP) to facilitate smooth movement of people and goods across the border. In the wake of their talks, Tanzanian Minister for Investment, Industry, and Trade, Dr Ashatu Kijaji and Zambian Minister for Commerce, Trade and Industry, Mr Chipoka Mulenga, on Wednesday came out with joint measures to address the challenges for the development of the two countries. The two ministers agreed to jointly work to resolve challenges facing long-haul drivers and small-scale...

Summary The EABC Business Barometer is an index that captures the sentiment of the business stakeholders about how they see the business environment within the EAC. Businesses in Burundi, Kenya and Uganda reported reduced cost of doing business during the pandemic. Business captains in the region are optimistic that business in the East African Community bloc will increase by 11 per cent in 2022 and 2023. The East Africa Business Community Barometer on Business and Investment links the slight optimism to perception of business owners on the effectiveness of measures introduced by governments in response to the Covid-19 pandemic. Several states imposed key discretionary actions and policies in 2020 and 2021 to limit the human and economic impact of the pandemic. In Kenya, for instance, a package of tax measures was adopted, including full income tax relief for persons earning below Sh24,000  per month and reduction of the top pay-as you earn rate from 30 to 25 per cent, There was also a reduction of the base corporate income tax rate from 30 to 25 per cent, reduction of the turnover tax rate on small businesses from three to one per cent, and a reduction of the standard VAT rate from 16 to 14 per cent. These conditions, according to business owners, plus other loan flexibility policies, contributed a large extent of the growth. The EABC Business Barometer is an index that captures the sentiment of the business stakeholders about how they see the business environment within the EAC. It shows the...

Mchinji, 5th August 2022…. The Government of Malawi through the Ministry of Trade and Industry today held a sensitization workshop at the Mchinji - Mwami One Stop Border Post (OSBP) aimed at creating awareness about the new One Stop Border Post (OSBP) to the community and economic operators in the district and beyond. Supported by TradeMark Africa through funding from the United Kingdom’s Foreign Commonwealth and Development Office, the workshop was led by the Secretary for Trade and Industry, Ms Christina Zakeyo, senior officials from the Ministry of Trade and Industry (MoTI) and the Malawi Revenue Authority (MRA). Participants, including border officials, District Council members, religious leaders, village elders and various border community members were sensitized on how an OSBP operates, its efficiencies and expectations on cooperation. Further, the speakers outlined the benefits of the OSBP to Malawi’s trade development prospects and the resultant socio-economic development of communities around the border and the economy as a whole. Speaking at the workshop, the Director of Trade at the Ministry for Trade and Industry, Ms Charity Musonzo said: “This OSBP will significantly change the way of doing business at the border by improving cross-border trade; free movement of people and enhancing trade facilitation in general, thereby further accelerating Malawi’s trade integration of the regional and world markets. Under the African Continental Free Trade Area (AfCFTA), we are exposed to a market of over 1.2 billion people and a combined gross domestic product (GDP) of more than US$2.5 trillion across Africa. This OSBP...

Discover IOTA Use Cases with the IOTA Lighthouse Projects Dashboard This blog post gives an overview of IOTA’s role in different use cases and explains how its unique features contribute to several lighthouse projects. The solutions developed in these projects are suitable for any industry that requires transparency, immutability and secure data transfers. Our new project dashboard provides a comprehensive overview of the projects along with the IOTA wiki of the tools developed, free for anyone to use and replicate to continue building on IOTA. Gone are the days when IOTA’s catalog of projects could be summarized in a brief overview. Today, the Foundation is a crucial player in several public and private sector projects. Whether multi-year EU-funded collaborative research and development endeavors between a dozen organizations or projects carried out with a single partner, IOTA’s unique characteristics and frameworks make it an indispensable technology for different kinds of projects. The versatility of IOTA makes it suitable for any field, as demonstrated by the sheer diversity of use cases among its projects, including audit trails for supply chain processes, monitoring, and different kinds of marketplaces. These lighthouse projects are torchbearers for the adoption of a technology that offers integrity and verifiability of data and value exchange. To provide a comprehensive overview of IOTA’s lighthouse projects and demonstrate how its features are utilized, the Foundation has launched a new project dashboard. The dashboard includes a summary and key information about each project, such as consortium partners, timeline, and use cases, as...

Zimbabwe is set to import 400 000 metric tonnes (MT) of Maize from Zambia and Malawi to be delivered this June to alleviate a food crisis in the country. This will cost the country at least US$120 million before haulage and other costs are considered. Total grain imports will likely total 700 000MT in 2022. According to the World Food Programme (WFP), an estimated 6 million people (roughly 40% of the population) need food aid in the country with an increasing number of urban dwellers now food insecure. The government has forecast maize production for the 2021/22 season to be 1.56 million MT, down from the previous season's multi-year record of 2.72 million MT. Zimbabwe requires 2.2 million MT annually for industrial, human and livestock consumption. The government has encouraged private business players to import grain to plug the deficit, while subsidized farmers are obligated by law to supply the government. Grain Net Importer Harare has been a net importer of cereals since 2006 with maize production averaging less than 1.3 million MT per year in the last 10 years. Wheat production has averaged 110 000MT for the past 10 years against a national demand of 450 000MT per year. Yield per hectare for maize (the staple crop) remains very low with average national yield less than 0.7 tons per hectare (Lower than the African average of 1.8 tons/ha). The yield is also lower than Southern African peers who are largely affected by the same climatic conditions, with Namibia, Malawi...