President Uhuru Kenyatta recently officially launched construction of the $31 million Port Reitz/Moi International Airport Access Road. This project will not only raise Mombasa’ position as a more efficient logistics hub, but also make transit traffic much easier by allowing faster flow of goods. TradeMark Africa (TMA) are overseeing the project. It is partly funded by the UK governmnent’s Department of International Development with $20 million while the Kenya government is putting up the rest. Basically, the project means expanding access/offtake for the Kipevu West Container Terminal which will in turn increase the capacity and efficiency at the Port of Mombasa When completed, the $31 million investment being implemented by the Kenya National Highways Authority (KeNHA), will support the expansion of the road to a dual carriageway and improve the existing Port Reitz and Moi International Airport access roads covering 6.4 kilometres in length. It will also improve traffic movement at intersections, including the installation of traffic lights and grade separated junctions.   Frank Matsaert, the TMA Chief Executive Officer said the much awaited upgrade of the Port Reitz Road is a crucial milestone in increasing access to physical markets and the facilitation of the movement of cargo along the Northern Corridor that caters for Uganda, Rwanda, South Sudan and eastern Democratic Republic of Congo. Trucks that ply this route are currently the lifeline of these countries. They ferry in industrial inputs, along with consumer goods, and also transport to Mombasa Port a range of exports. An improved Port Reitz Road...

CHINA plans to develop a free trade area with African countries - to increase the continent’s exports to the far-east nation and offset the huge trade imbalance, a top official has said. Prof Hu Hailiang, the Vice-Chairman of the Social Sciences of the Ministry of Education in China, told reporters in Dar es Salaam yesterday that the envisaged free trade area falls under its new fiveyear development plan slated to begin this year. The free trade area agreement is expected to increase exports of goods from Africa to offset huge trade imbalance between the continent and China, he said “China will negotiate with individual African countries and regional blocks to develop free trade area agreement to promote exchange of goods and services and investments,” he said at a press conference organised after a seminar on new China. China’s policymakers are compiling the 13th Five-Year Plan (2016-2020), whose proposal was adopted at the Fifth Session of the 18th Communist Party of China (CPC) Central Committee in October last year. The new five-year national socio-economic development will charter an explicit blueprint for the country’s development over the next five years - and provide more opportunities for the development of other countries. China is Africa’s largest trading partner, surpassing the United States in 2009. According to Brookings Education Institution, in 2012, China’s trade with Africa reached $198.5 billion, while U.S.-African trade in 2012 was $99.8 billion. China’s trade with Africa is only 5 per cent of its global trade total. More than 80...

KAMPALA, UGANDA - Most of us dread sitting for examination papers. The East African Community (EAC) at Summit level of Heads of State should be no exception. There is a big problem in the neighbourhood. This year the EAC will have to sit the paper on ‘relevance of good governance in the integration process’, because the Burundi situation is getting out of hand. Failure will be a huge setback in the aspirations for a Common Market. Success however, will make the EAC that much stronger and more competitive as a investment destination. Burundi is tittering at the edge of an abyss. Foreign investor confidence is being tested. Uncertainity does not attract money. It simply scares it away, but the Burundi opposing parties remain stuck in their uncompromising positions. This has put the rest of the EAC in a muddle. Worse still, all efforts at peace-making have been soundly rebuffed, including the manhandling of EAC Secretary General, Amb. Richard Sezibera last October. The African Union has fared no better. The Burundi government was scalding in December when the AU mooted a force of 5000. There is nothing as frustrating as being caught up in a situation that is not of your own making. Both Rwanda and Tanzania have had to take in refugess, which  puts an added strain on their national budgets. A quick response came from Germany, who offered $18 million in appreciation of Tanzania’s efforts to handle the influx. Other help is hard to come by. The United Nations High...

The dream of a unified African market took a giant leap towards reality following the signing in Cairo, Egypt, in June 2015 of a Tripartite Free Trade Area (TFTA), bringing together EAC, COMESA & SADC blocs. With South Africa and Egypt, two of Africa's leading economies, driving the 26-country TFTA participants, experts are now advocating for, among others, good governance and prudent macroeconomic policies to reap the full benefits of the agreement. For several years, experts from the three largest trading blocs in Africa — the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) — were locked in intense negotiations over a free trade agreement whose aim is to bring about a unified and liberalised single market. The talks finally bore fruit on 10 June 2015 when 26 African countries signed the Tripartite Free Trade Area (TFTA) agreement in Cairo, Egypt. "The conditions [to form the TFTA] have never been better Under this agreement, all the 26 countries, with a combined gross domestic product (GDP) of about $1.3 trillion and a population of 565 million, will merge into a common market and eliminate tariff lines and trade barriers. The participating countries will benefit from liberalised intra-regional trade, which is expected to boost the flow of goods and services. When implemented, the free trade area will constitute about half of Africa's GDP, half of its population and will cover a combined landmass of 17 million square kilometres, about the...

In the minds of many, the container trade between east and southern Africa forms an altogether insignificant trade. That may be true if comparing it with a high volume area such as the Far East. Yet this region’s combined port throughput is approaching eight million TEUs, which is technically more than the whole of the Australian continent, and there is so much scope for growth in the 23 countries with their 437 million inhabitants. Dynamar has recently issued its latest report in its Container Markets and Trades series: East & Southern Africa (worldwide) Container Trades. The report highlights that: East and southern Africa’s container volumes have grown by nine percent compound annual growth rate (CAGR) since 2010 China’s exports to East Africa is expected to increase by 91 percent by 2020 The area is experiencing strong growth, rising incomes, falling poverty and economic diversification Transit cargo from Mombasa is growing at an average of seven percent; current share is 30 percent Inland transportation costs are reaching 77 percent of export value Sub Saharan Africa’s largest port is Durban, South Africa Somali-attributed pirate attacks back from 2010’s 220 to ten (too many) in 2014 The three main African regions covered in the report consist of 23 countries: 
East Africa: coastal Somalia, Kenya and Tanzania, plus seven landlocked countries
Indian Ocean: Madagascar, Mauritius, La Réunion (France) and three more island states 
Southern Africa: littoral Mozambique, South Africa and Namibia, plus four non-coastal nations Dirk Visser, Senior Shipping Consultant and Managing Editor DynaLiners, says: “Imagine that the...

A road connecting Port Reitz and Moi International Airport in Kenya has been commissioned by President Uhuru Kenyatta The road is being financed by UK’s Department of International Development (DFID) through Trademark East Africa (TMA) with a grant of US$20mn. The government of Kenya is providing US$11mn. UK High Commissioner to Kenya Nic Hailey said, “The UK is proud to support the Mombasa Port modernisation project. It will reduce the cost of doing business, improve infrastructure, and boost trade and economic growth in the EAC. This is a critical road. Our support, in partnership with and fitting with the overall vision of the Kenyan government, will benefit the population of Mombasa and reduce the cost of goods to millions of EAC residents.” The Port Reitz road will be the only way to access the Moi International Airport and links the second container terminal at the Mombasa Port to the Northern Corridor, East and Central Africa. Once completed, the new road will reduce traffic congestion at the Port Reitz area, which is a major road facilitating movement of cargo to and fro the Mombasa Port as well as Mombasa Town. Kenya’s cabinet secretary for transport and infrastructure James Macharia said, “The road link will serve as a key catalyst to improve cargo handling capacity of the port of Mombasa, in order to adequately serve Kenya's growing economy, as well as retaining the Mombasa port as the preferred one by the neighbouring economies. This will in turn ensure economic prosperity for both...

Arusha — Embattled Burundi President Pierre Nkurunziza may be stopped from assuming the chair of the East African Community (EAC) Heads of State Summit if a petition filed by human rights groups in Africa is given a nod by relevant regional bodies during its hearing which kicks off here today. The Pan African Lawyers Union (Palu) and other petitioners from within and outside the region want the Burundi leader stopped from taking over the rotating chairmanship of EAC until he resolves the political, human rights and humanitarian crisis in his country. The petition was submitted to the East African Legislative Assembly (Eala) and is set for hearing at the EAC headquarters beginning this morning at a time the mediation efforts among the warring parties in Burundi are yet to bear fruit and with the humanitarian crisis there worsening. President Nkurunziza, whose country is one of the EAC partner state, is expected to assume the Chair of the regional Heads of State during the coming Summit, whose date and venue is yet to be announced. He will take over from President John Magufuli. According to the EAC Treaty, the tenure of office of the Chairperson of the Summit is one year and the office of the Chairperson shall be held in rotation among the partner states. Currently there are five the others being Uganda, Rwanda and Kenya. Subject to the provisions of the Treaty, the Summit shall determine its own procedure, including that for convening its meetings for the rotation of...

MOMBASA, Kenya, Jan 12 – The tourism industry received a major boost as President Uhuru Kenyatta opened a marina in Mombasa, the only one of its kind between Cape Town in South Africa and Cairo in Egypt. The President announced a raft of initiatives that will revitalise the industry such as a Sh1.2 billion incentive for charter flights to stimulate tourism arrivals at the Coast. “This will encourage those already flying in to increase the frequency of their flights,” President Kenyatta said. The President disclosed that visa fees for children under 16 will also be waived with effect from February 1. To bring park entry fees down, President Kenyatta directed the National Treasury Cabinet Secretary to initiate the amendment of the VAT Act and incorporate the amendments in the Finance Bill for financial year 2016/2017. “With this measure, the Kenya Wildlife Service will cap the park entry fees at $60 (Sh6,000) down from $90 (Sh9,000),” President Kenyatta said. The Head of State spoke on Tuesday when he opened the English Point Marina, a multi-billion shilling landmark resort in Mombasa County. First Lady Margaret Kenyatta and Cabinet Secretaries Judy Wakhungu and Eugene Wamalwa were at the event. President Kenyatta said the resort is a major endorsement of the recovery strategy of the country’s tourism and hospitality industry, adding that it heralds good tidings in the sector. The four-acre ocean view resort features a 26-room hotel, conferencing facility, a roof-top restaurant, a casino, swimming pool, 96 serviced apartments – including eight penthouses...

NAIROBI (Xinhua)-- Kenyan authorities on Monday said they would develop and promote cruise tourism to diversify the beach and safari-oriented tourism. Presidential spokesman Manoah Esipisu said President Uhuru Kenyatta would on Tuesday open the English Point Marina, an iconic landmark in the coastal city of Mombasa as part of efforts to diversify tourism. "English Point Marina will put Kenya on the map of the luxury yacht market and the investment is set to open up Kenya to the high-end international ocean traveler," Esipisu said in a statement issued in Nairobi. The 4-acre ocean view, multi-million dollar marina resort features a 26-room hotel, conferencing facility, a roof-top restaurant and 96 serviced apartments as well as a boardwalk with retail outlets, water-sports centre and fully-serviced 88-berth marina. Esipisu said Kenya is a destination with diverse and rich tourism attractions. The East African nation’s best year for cruise tourism was 2011 when Kenya had more than 1,200 tourist arrivals by sea. The negative growth in the sector was mainly attributed to piracy across the Indian Ocean, but piracy in recent years has been on the decline thanks to enhanced security. Esipisu said the Jubilee Administration has identified tourism as one of the key economic pillars in Kenya’s Vision 2030 and is launching several investment opportunities such as resort cities, hotels, eco-lodges, conference facilities, and marinas as part of our tourism flagship projects. Kenya’s coastal tourism sector has continued to see a rise in numbers as six cruise ships arrived in Mombasa with more...

For a long time, the 54 countries of Africa have been a patchwork of different languages, laws, and currencies, making travel (let alone business) on the continent quite an endeavor. Indeed, for businesses, for a long time being in Africa has required moving from country to country, which too often means more than just navigating a map and changing money—it includes meeting different standards, understanding different laws, and paying different tariffs at every (and there are many) border crossings. At the same time, African countries, many landlocked and small, face unique challenges in being able to scale industries and access markets. How might Rwanda export its coffee if it has no access to the ocean? How might a line of countries best collaborate to create a railroad or road spanning their collective land for the benefit of all? How might countries with different advantages integrate into global value chains? And so, in 1991, 51 heads of state and government signed the Abuja Treaty, which established a roadmap towards an African Economic Community to be completed by 2028. In 2013, the African Union, created Agenda 2063—a vision and action plan—which, among other objectives, sets out to better integrate the continent to circumvent and even knock down these obstacles to trade, investment, and overall economic growth. Thus, the African continent has been creating and fostering “regional economic communities” with the aim of facilitating trade and eliminating economic bottlenecks. Eight of these communities, as seen in Figure 1, are the “building blocks” of...