If all works out according to nature’s cycle, the skies could open up in a matter of days and usher in the season of the long rains in East Africa. Nature, however, has become quite unpredictable of late. The El Niño rains came and went last year, and people in the region are increasingly getting accustomed to extremes of the weather. That means the heavy rains could actually come, and perhaps devastatingly so. Or they could simply disappear. Either way, East Africa deserves to be prepared. All too often, millions of people are caught unawares even by a phenomenon such as the long rains that has come with certainty over the millennia. It all means our countries are extremely exposed to changes in climatic and weather patterns. And even if the rains were to come and go in just the right measure, causing an abundant harvest, that still presents a problem. Many are the times when farmers decry losses due to lack of proper storage facilities as well as markets for their products. This leads to undesired losses. It also leads to a situation where there is plenty today and nothing tomorrow, or plenty in one place and scarcity elsewhere. Perhaps the tragedy has to do with governance. There is an “eating” mentality that has laid siege to a significant portion of the elite in East Africa. This mentality assures them that every project, every budgetary allocation, and every need that arises must be fully exploited for the purpose of...

The North Rift Economic Bloc (Noreb) is in the process setting up strategies that are aimed at ensuring counties in the bloc claim a spot in the East African Community (EAC) by exporting cash crops and improving the tourism sector. According to Noreb chairman who is also the Uasin Gishu Governor Jackson Mandago, they are finalising frameworks that include stepping up of horticultural farming in a bid to increase exports to Uganda, Tanzania, Rwanda and other regional countries. “We are in the process of finishing up very crucial strategies regarding this. Our counties are on the pathway to the East African Community and Noreb stands to benefit big time from exports of produce like coffee, tea and fruits,” said Mandago, during the Trans Nzoia Investment Conference (Tice) in Kitale on Thursday. Mandago said his county government had already started encouraging farmers to engage in horticultural farming. “Uasin Gishu is picking up very fast in production of passion fruits, mangoes and avocados which we are specially looking at not only delivering it to the regional market but also the European market," he said. "Trans Nzoia has good conditions for coffee and tea and therefore, investors are welcomed to set up a factory," he added. Noreb consists of Uasin Gishu, Trans Nzoia, Bungoma, Turkana, Nandi, Baringo, Elgeyo Marakwet, Samburu and West Pokot counties. Source: Uasin-Gishu County News

My ministry is focusing on designing, developing and maintaining a transport and infrastructure architecture that will facilitate sector growth. Vision 2030 envisages a country with integrated and firmly interconnected transport infrastructure, consisting of roads, railways, airports, seaports and waterways. The Ministry of Transport and Infrastructure is focusing on designing, developing and maintaining a transport and infrastructure architecture that will facilitate sector growth and accelerate national economic development. The mission of the ministry is to pursue world-class transportation systems for improved quality of life for the people of Kenya. The Standard Gauge Railway under construction, financed by Government of Kenya and a loan from the Government of the Peoples Republic of China, is one of the development projects that is critical for accelerating the economic prosperity of the country and the region. SGR is one of the biggest projects ever to be implemented by the government since independence. It aims to simplify transport operations across the borders, reducing the cost of transportation hence the cost of doing business; significantly making the country and the region attractive to investment. SGR is expected to link Mombasa Port, with its hinterland, through Nairobi, Kisumu and Malaba to Kampala, Kigali, and Juba. The Democratic Republic of Congo has expressed their interest in being part of SGR development. SGR will also provide improved passenger services both in terms of speed and comfort with the Mombasa to Nairobi journeys taking a mere four hours compared to 10 hours by the existing modes of land transport. Already, construction...

The announcement last week that construction of the Tanzania-Uganda crude oil pipleline would begin in August was received warmly by those who have the East African Community’s (EAC) best interests at heart. As a factor of increasing greater regional integration, the pipeline, (like the proposed Standard Gauge railways), will also improve the EAC’s profile as an attractive investment destination. The 1,403-kilometre pipeline will link oil fields in Uganda’s Lake Albert, Hoima region to Tanga port in Tanzania. According to senior Tanzania Petroleum Development Corporation officials, the construction of the crude oil pipeline will be carried out by three oil firms, namely: UK’s Tullow Oil PLC, France’s Total E&P and China’s Cnooc. Once completed, the oil pipeline will be able to ferry up to 200,000 barrels per day. The project works will also lead to installations of 200km of permanent new roads and corresponding bridges, and upgrades to 150km of existing roads. Some 15,000 jobs are expected to be created. These kind of projects inspire optimism among both local and foreign investors. This is because infrastructure projects are the foundations of modern economies. They have a huge multiplier effect. For instance regional governments are currently on an aggressive move to build more power plants. Much of rural EAC lacks grid electiricity. When you put up a power plant, you not only generate employment directly through construction and operations at the power plant, but also create an industrial base around the plant who would want to tap the power. This is a...

ARUSHA, TANZANIA - Last week, leaders of the East African Community (EAC) met in Arusha, Tanzania. There were two main items on the agenda. First, the induction of South Sudan as a full member state; and second, the launch of the shiny new EAC passport. Of the two, the latter is arguably more significant. According to a press statement, he gave a score-card of the deliverables during his tenure at the helm citing five key areas in the EAC broad vision and remarked that under his five year tour of duty, the bloc had witnessed significant achievements. His successor is Burundi national, Dr. Libérat Mfumukeko. On the Customs Union, Amb. Dr Sezibera remarked that sustained campaigns to ensure realization of the Single Customs Territory (SCT) had duly paid off. “Today, should one visit the Port of Dar es Salaam right here, you will witness revenue officials from the rest of the Partner States clearing goods,” he said. “The time within which it takes to clear goods has reduced tremendously. At the central corridor, it now takes 3 days, down from the 18 days while in the northern corridor, there is a significant reduction from 21 days to 5 days,” Amb. Dr Sezibera said. On the second item, he said that there was sustained pressure to rid the region of Non-Tariff Barriers (NTBs) and such, were paying off while the port clearance times were also reduced from three weeks to under 10 days. On the Common Market, a third item on...

KAMPALA, UGANDA - Africa is the most commodity-dependent continent on earth, but in the East African Community, Kenya is the least dependent. Africa’s economies increasingly need to create a hospitable environment for companies in the manufacturing and services sectors, Michael Armstrong, the Regional Director, Institute of Chartered Accountants in England and Wales (ICAEW) for Middle East, Africa and South Asia said last week. He said this will drive growth, as the old models of growth driven by exports of raw materials are out-dated. Within the East Africa Region, Kenya’s economy should expand by around 6% during the 2017 to 2020 period thanks to its relatively diversified economy and comparatively low commodity dependence bonding well with the country’s economic growth outlook. “The East African region is embracing the use of renewable energy to leapfrog older power generation technologies, while also reducing the need to extend the national energy grid to remote villages,” Armstrong said. The remarks were made following publication of an ICAEW study on growth in Africa. It reveals that growth is expected to average over 4% for the next five years. ICAEW was set up by Royal Charter in 1880. It has over 144,000 members. Over 15,000 of these members live and work outside the UK alone. The Institute also has some 9,000 students. In its report dubbed ‘Economic Insight: Africa Q1 2016’, ICAEW reveals that Africa is still heavily commodity–dependent. However the accountancy and finance body reports some good news for the African economies. Then warns that manufacturing...

IN SUMMARY Traders are saving up to $300 (Sh30,600) per transaction through more efficient joint clearance of cargo by EAC partner states at Mombasa port. An audit of the Single Customs Territory (SCT) system that was recently adopted by Kenya, Uganda, Rwanda, Burundi and Tanzania also showed that cargo clearance time at the port has dropped to an average of four to six days, from 18 to 22 in 2013. Under the SCT deal that began in 2014, clearing agents within EAC have been granted the rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping. Traders are saving up to $300 (Sh30,600) per transaction through more efficient joint clearance of cargo by EAC partner states at Mombasa port. An audit of the Single Customs Territory (SCT) system that was recently adopted by Kenya, Uganda, Rwanda, Burundi and Tanzania also showed that cargo clearance time at the port has dropped to an average of four to six days, from 18 to 22 in 2013. “Customs documentation requirements have been reduced by over 50 per cent and one customs agent is required to clear goods right from the Port of Mombasa or Dar-es-Salam to the Ugandan destination,” the Uganda Revenue Authority revealed in a performance update. The SCT system allows joint collection of Customs taxes by the East African Community partners. Under the SCT deal that began in 2014, clearing agents within EAC have...

IN SUMMARY Kenya Ports Authority (KPA) says it is eyeing higher volumes of transshipment cargo when it takes over the completed phase one of the second container terminal currently under construction at Mombasa port. Despite the potential in the region the KPA has over the years restricted the volume of transit cargo to avoid congestion due to limited handling and storage capacities. Statistics by the port manager showed transshipment (handling of goods destined for other ports) has over the years remained at less than one per cent of the total cargo containers handled at the port. Kenya Ports Authority (KPA) says it is eyeing higher volumes of transshipment cargo when it takes over the completed phase one of the second container terminal currently under construction at Mombasa port. Despite the potential in the region the KPA has over the years restricted the volume of transit cargo to avoid congestion due to limited handling and storage capacities. “With the ever growing container and overall port cargo throughput in Mombasa, this new terminal will offer the much needed space to match the growth. The KPA also looks forward to increasing its capacity to handle transshipment cargo for the neighbouring ports which of late are struggling with serious congestion problems,” the KPA said in an update. READ: Part of new Mombasa port terminal opens in March Statistics by the port manager showed transshipment (handling of goods destined for other ports) has over the years remained at less than one per cent of the...

IN SUMMARY A new cargo clearance system, expected to lower transaction costs and tighten compliance, is set to be piloted from next week by shippers in the region. New system aims to make trade and cargo importation and exportation less tedious. Lobby says system will provide shipping information to agents to enable them intervene long before the cargo arrives at the port and clear it in time. A new cargo clearance system, expected to lower transaction costs and tighten compliance, is set to be piloted from next week by shippers in the region. The Shippers Council of East Africa (SCEA) will roll out the Advance Cargo Shipment Information (ASHI) System for two months starting March 18 as the lobby seeks to make trade and cargo importation and exportation less tedious for shippers. The system, also referred to as Electronic Cargo Tracking Notes (ECTN), is envisaged to reduce congestion at the port and cut operation costs resulting from demurrage and storage charges for imports. The system is also meant to improve efficiency and curb revenue leakages. Cargo heading to Kenya will be covered by Electronic Cargo Tracking Notes or Cargo Shipment Information — a maritime document issued by the shipper at the loading port providing information including its flows to destination country. The document will also include details of the shipper, description of the cargo including its value, country of origin, weight, freight rate and other additional charges. The shippers council has partnered with Antaser Afrique, a Belgium-based company, to roll...

Outgoing East African Community (EAC) Secretary General, Dr Richard Sezibera, has decried the use of money by politicians seeking public office in the regional bloc, saying this was fuelling corruption and stalling development. At 4th Annual East African Community Secretary General's Forum held in Dar es Salaam on Friday, Dr Sezibera said corruption would remain a curse in the region as long as leaders used their financial muscles to buy votes. "Voters in the region tend to elect people on the influence of money. Corrupt candidates will always be corrupt leaders," he said. The function ran under the theme 'Good Governance and Constitutionalism'. Dr Sezibera noted that corruption was still rife in the EAC member states, and a stumbling block to good governance. He commended President John Magufuli for his relentless efforts to fight the vice for the betterment of wananchi. The outgoing EAC boss urged other leaders in the region to emulate President Magufuli's stance on graft. He also echoed the President's statement at the just ended 17th Ordinary EAC Heads of State Summit that it was high time leaders focused on ensuring residents benefitted from integration. He said: "Integration is not just about words, but putting things into action to improve people's lives in the region." Meanwhile, the Head of TradeMark Africa-East African Community (TMA-EAC), Mr Jason Kap-Kirwok, said his organisation will organise more seminars on good governance to member states for citizens to enjoy fruits of the integration. Source: allAfrica