A consortium led by the German engineering group Siemens has won a contract to build a 1,000 kilometres high voltage power line linking Kenya and Ethiopia. The firm will partner with Spain’s Isolux Corsan to put up the line that will transmit 2,000 megawatts (Mw) hydropower from Ethiopia. The high-voltage direct current (HVDC) transmission link is scheduled to go into operation by end 2018.“Development of energy infrastructure and a reliable power supply is vital to Kenya’s economic development and industrialisation strategy,” Sabine Dall‘Omo, Siemens chief executive for southern and eastern Africa said. “This project will enable the expansion of Kenya’s electrical grid and help to provide secure energy supply for East Africa’s economic development” The project is part of a strategy under the East African Power Pool (EAPP) to improve connectivity and supply of power across the entire east Africa. It will also make it possible to expand alternating-current (AC) power grids from Kenya to countries like Uganda and Tanzania. Power lines connecting the east African states of Tanzania, Uganda, Rwanda, Kenya and Ethiopia are expected to be completed within the next three years, helping improve supplies and power trading. Other African regions have already connected their grids. Southern Africa has a series of links between South Africa, Zambia, Zimbabwe and Mozambique, allowing them to trade power. The Kenya-Ethiopia link will be a 500 kilovolt (kV) line, while the lines to Uganda and Tanzania will be 400 kV. The line to Uganda would then connect Rwanda and Burundi. Addis Ababa...

KENYA is up 21 ranks in the World Bank's 2016 Ease of Doing Business report, becoming the third most improved country. It is placed at position 108 out of the 189 countries in the survey released yesterday, compared to position 129 last year. The World Bank attributed the improvement to reforms in starting a business, electricity connection, property registration and access to credit. In getting loans, Kenya climbed 90 places to 28 from 118 last year, largely on the impact of credit scoring initiative, introduced in February 2014, under  credit information sharing. The country improved 14 places in electricity connection to number 127 while in registering a property, it is now placed at 115 from 121 last year. It is the first time since 2008, when it ranked 98th, that the country has been recognised globally for business reforms. The survey conducted between June 2014 and May, this year, ranks
Mauritius as the top business-friendly nation in sub-Saharan Africa and
32nd in the world. It is followed by Rwanda [62 globally], Botswana [72]
and South Africa [73]. Singapore retained the top spot in
business-friendly environment globally, followed by New Zealand,
Denmark, South Korea, Hong Kong, China, the UK, the US, Sweden, Norway
and Finland. "Today as a country
we stand tall, the wheels are turning and I dare say Kenya is on the move," Deputy President William Ruto said when he launched the report in Nairobi yesterday. "But the
work has just began, the road ahead is more challenging and more
needs to be done to attain our goal...

The Kenya Revenue Authority (KRA) has kicked off a search for the head of its newly created border security unit that is tasked with monitoring cargo and human movement to prevent tax leaks and tackle security threats. The taxman Wednesday called for applications for the position of a deputy commissioner in-charge of border security. “Reporting to the Commissioner, Customs and Border Control the deputy commissioner, border security will provide leadership in national border security,” the KRA said adding that interested candidates have until November 10 to submit applications. The KRA said the official will design and implement a national border security strategy and control structure, participate in national border security committees and advising the agency on critical border security issues. Hundreds of Customs officials with security training were last year redeployed to border entry points in a major security shake-up that saw KRA commissioner-general John Njiraini incorporated into the National Security Advisory Committee (NSAC). The committee chaired by Joseph Kinyua, the Head of Public Service, prepares briefs for President Uhuru Kenyatta. The border control officers (BCO) now work in collaboration with the Kenya Police Service following a presidential order that brought all security agencies under a single cohesive unit. The officers sit on security committees in their respective station areas and share intelligence with their national office, senior security sources said. Of late, Kenya has been facing security threats from the Somalia militant group, Al-Shabaab, which has been blamed for recent attacks on civilians and security personnel. There has also...

The Tourism Ministry has not been affected by the cash crisis that has seen the Government delay disbursement of money to key institutions in the last three months. Speaking at a function to welcome the resumption of direct passenger flights to Kenya by German airline Lufthansa Monday, Tourism Cabinet Secretary Phyllis Kandie said the tourism revival plan is on course and has not been disrupted by any cash problems. Mrs Kandie said she sees the sector attracting an additional Sh5.2 billion from the private sector and international partners to match a similar amount provided by the Government in this year’s Budget. “Our marketing efforts have not stopped at all. We completed a road show in the US, and we are now heading to London. We have received a lot of support from the private sector,” she said. However, she did not respond to a question on whether her ministry had received any of the Sh5.2 billion pledged by the Government to revive the sector that has been hurt by a wave of insecurity. Players in the sector had feared any fresh shocks, especially on the marketing front, would hurt recovery plans. Kandie said the sector is looking up, with the coming of the Pope to Kenya in the next two weeks, as well as the planned World Trade Organisation meeting set for December, expected to boost the country’s image. The return of Lufthansa after an 18-year absence is also expected to boost inflows of tourists from Europe. Source: The Standard

The Kenya Ports Authority will rely on a closed-circuit television footage to defend its decision to sack 20 workers for taking part in a strike over NHIF rates increase. The company was ordered by the court yesterday to file its written submissions and documentary evidences within seven days. Justice James Rika said that is the last chance granted to it. KPA’s lawyer Sanjeev Khagram told the court they will be relying on the CCTV footage among other documentary evidences to defend its case. The workers went to court to challenge their sacking and eviction from staff houses. Source: The Star

DAR ES SALAAM, TANZANIA - Spintelligent, a major business consultancy in sub-Saharan Africa, is helping to organise the next AgriBusiness Congress East Africa set for next January in Dar es Salaam. The consultancy has said agriculture is the newest addition to Spintelligent’s portfolio of conferences and exhibitions. Shanaaz Adams, Agribusiness Congress East Africa event director said last week, “The enthusiasm with which the agricultural industry and regional authorities have embraced Agribusiness Congress East Africa right from the launch of this event, shows that we are addressing a real need in the sector for a meeting place for private and public sector stakeholders throughout the East African region, key decision makers, industry suppliers and farmers of all scales, to discuss critical issues facing the sector, learn from case studies and network.” In a statement in run-up to the two-day event at Dar’s Mlimani Conference Centre Spintelligent saud: ‘The agriculture sector is regarded as one of the most critical industries for the African continent due to its economic potential, projected as a $1 trillion industry in Sub-Saharan Africa alone by 2030.  Adams said: “Growth corridors have been identified across several regions in many East African countries. With advantageous policies, ample arable land, a stable economy and government, and a renewed focus on agriculture, Tanzania is a model East African country.” ‘Spintelligent’s agriculture events connect agricultural professionals – from small farmers to commercial farming enterprises – to industry experts, leading global equipment and machinery suppliers, seed and agrochemical producers, irrigation and water management...

ARUSHA, TANZANIA - The East African Community (EAC), is pushing for a long-term preferential trade agreement with the United States to eliminate the fear of unilateral withdrawal of the Africa Growth and Opportunity Act (AGOA) by the Federal government. Trade  between the EAC and the US reached $2.8 billion in 2014. The US exported $2 billion worth of goods ,but only imported $743 million in items. EAC believes the limitation of AGOA is that it is unilateral and can be withdrawn anytime. This year the US extended the AGOA up to September 30, 2025, but the EAC thinks that this span of 10 years is insufficient for increasing trade volume by leaps and bounds. Hence, the EAC recently submitted its plea to Michael Froman, the United States Trade Representative (USTR) on the modus operandi and the time to begin negotiations on the pact. According to sources, the Community is looking for a trade partnership similar to the one it shares with EU. This provides protection against undue competition. The EAC also believes it has not been able to utilise the US quota-free market under AGOA since the agreement does not match the World Trade Organization’s structure for free trade agreements due to its 10-years duration of operations. Source: East African Business Week

President Kenyatta is right. The East African Community and the whole integration project needs ideas that spark the imagination. This should not be a one-off thing, but a permanent campaign to drum into the people of East Africa how economic integration can change their lives for the better. From my observations, occasionally we hear of awareness campaigns that come and go, but leave no lasting impact. We need noise. With such things as social media, I am sure we can do better. Source: East African Business Week

Investors to score big as Rwanda Development Board automates critical processes Kigali, 22 October, 2015: Investors to Rwanda should expect better and more efficient services from Rwanda Development Board (RDB) as the government arm automates critical services offered to investors. The RDB and TradeMark Africa today unveiled a new online system that will enhance the capacity of RDB’s One Stop Centre to process and issue licensing certificates including the Investment Registration and Environment Impact Assessment Certificates, at the click of a button. [caption id="attachment_10147" align="alignleft" width="600"] TradeMark Africa Rwanda Country Director Hannington Namara (Right) and Rwanda Development Board’s Chief Financial Officer Mark Nkurunziza (Left) during the launch of RDB’s One Stop Center online portal[/caption] This will bring key government agencies responsible for the entire investor experience under one screen. The portal will link and exchange important information with among others: Rwanda Electronic Single Window, Online Business Registration, this will further speed the process of application for investment certificate, tax exemption requests and environmental impact assessment. Speaking during the launch, Mr. Mark Nkurunziza, the RDB Chief Financial Officer said, “Investors coming to Rwanda will now find it easier to register their investments. Importantly, the new online system will help us to attain our mission of transforming Rwanda into a dynamic global hub for business, investment, and innovation. The scope of our work includes all aspects related to the development of the private sector.” TradeMark Africa Rwanda Country Director added; “The launch of the portal is a sign of our continued support...

There are growing worries that even though the East African bloc continues to integrate, the rise of anti-competitive trade habits is bound to make it difficult for other companies to join the region. Some countries within the region continue to grapple with coming up with strong competition laws as they try to strike a balance between protecting their indigenous firms and attracting foreign companies. Ms Tania Begazo, a senior economist, Competition Policy Cluster, Trade and Competitiveness, World Bank Group, argues that opening markets and removing anticompetitive sectoral regulation will safeguard and encourage competition in the East African Community. “Competition is an ingredient for economic growth. You can’t attract investment if you are not competitive. Tackle cartel agreements that raise the cost of key inputs and final products, and prevent anticompetitive mergers,” she said. She was speaking at the EACOMP regional advocacy workshop organised by CUTS Nairobi with support from TradeMark Africa (TMA) in Arusha recently. As competition deepens, anticompetitive practices such as predatory pricing - where large firms with strong financial muscle collude to sell their goods or services below the cost of production - could make it difficult for other companies to enter the market. In his analytical report, Should EAC Regulate Competition?, Alloys Mutabingwa, the former EAC deputy secretary General, argued that countries needed to create a free and fair environment that promoted competition. “Whereas competition among firms is a precursor to economic development, a competition culture that is characterized by high levels of cartelization, heavy-handed government intervention,...