Ours is a continent rich in resources. From the coffee beans and cotton to mineral ores and oil wells, Africa is world-renowned for its raw materials. However, exporting raw materials alone will not allow Africa to reach its potential. Indeed, the recent slump in global commodity prices has served as a harsh reminder that our traditional reliance on raw materials needs to evolve. It is only by transforming our commodities into value added goods that Africa will reap the full benefits of our natural strengths. Transforming our resources will create larger profit margins, growth and jobs. This transformation will, however, require a big industrialisation drive across the continent to foster trade and growth. Advertisement In the wake of Africa Industrialisation Day, which this year reflected on how to accelerate Africa’s progress towards the creation of a Continental Free Trade Area, we must also consider the supporting infrastructure required to make this pre-eminent objective a reality. All economies – on the global scale, but also on the regional and local level – demand a high level of circulation, which is only possible through the development of the necessary infrastructure. In Africa, the lack of infrastructure is one of the greatest inhibitions preventing transformative growth. Ours is the only continent in the world without a transcontinental railway; in a continent where 16 out of 54 countries are landlocked, this is a real issue. Our infrastructure development therefore needs to be multimodal, ensuring that our coastlines are connected to our railways, airways and...

The Organization of Islamic Cooperation (OIC) announced on Thursday its plans for the Dakar-Port Sudan rail network project, which will link West and East Africa. Ambassador Hameed Opeloyeru, OIC assistant secretary general for economic affairs, announced an alliance with the African Union as the sponsor of the Dakar-Djibouti transport project, which is similar to the OIC scheme. He was delivering a speech on behalf of Yousef Al-Othaimeen, OIC secretary-general, during a session in Istanbul on the sidelines of the 33rd meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC). Opeloyeru said that ensuring the continued engagement of regional organizations — the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA) — as part of OIC’s Dakar-Port Sudan railroad network project would help to implement regional projects along the OIC transport corridor of the Dakar-Port Sudan railroad while addressing the challenges that may impede financing the project. He said that the OIC aims to strengthen its cooperation with non-States members — such as China — to ensure their participation in the Dakar-Port Sudan rail project through contributing to capacity building and providing entrepreneurs and business owners with financial support. It wanted to ensure that the project would be a meeting point with China’s Silk Road transport infrastructure project, “One way – one belt.” “This multi-stakeholder approach will further increase the engagement of state members involved in OIC’s Dakar-Port Sudan railroad project, which will serve as...

Traders in Kenya stand to benefit from increased efficiency following launch of the Information for Trade in Kenya web portal (infotradekenya.go.ke), which has consolidated more than 120 documents and procedures required for import and export business in Kenya on one online platform. The portal is estimated to serve at least 1.5 million users per month and consolidates 73 documents under exports, 52 under imports and one under transits (cross border trade) thus ensuring a shorter period in the export and import processes. "The InfoTrade Kenya portal is part of the Government's initiative to facilitate trade in line with the World Trade Organization (WTO) Agreement on Trade Facilitation, to which Kenya is a signatory and obliges governments to be transparent and to provide information to businesses." Dr. Kamau Thugge, Principal Secretary, National Treasury - Kenya Kenya Trade Network Agency (KenTrade) implemented the portal with financial support of approx. US Dollars 498,000 from United States Agency for International Development (USAID) through TradeMark Africa (TMA). The portal provides step-by-step guidelines and contacts on the procedures and documents required by a trader seeking to import or export various commodities from Kenya. United Nations Conference on Trade and Development (UNCTAD) provided technical assistance. Presiding over the launch, the National Treasury Principal Secretary, Dr. Kamau Thugge said, "The InfoTrade Kenya portal is part of the Government's initiative to facilitate trade in line with the World Trade Organization (WTO) Agreement on Trade Facilitation, to which Kenya is a signatory and obliges governments to be transparent and to...

The Government Wednesday unveiled a web portal that summarises information on international trade. The Information for Trade in Kenya web portal consolidates more than 120 documents and procedures required for the import and export businesses. A trader is expected to take a maximum of five minutes to access information from the platform by Kenya Trade Network Agency (KenTrade). United States Agency for International Development (USAid) through TradeMark Africa funded the project to the tune of $498,000 (Sh51.3 million). National Treasury Principal Secretary Kamau Thugge said the platform would put Kenya on the global trade map. Source: Standard Digital

Clearing and forwarding agents have blamed non-tariff barriers for slow movement of cargo at the Mombasa port. They say the Kenya Revenue Authority (KRA) introduced new procedures at the key infrastructure that have now become an impediment to trade. “Cargo is coming to the port but the rate at which it is leaving is slow. The problem is that there are procedures that have been introduced which are leading to slow clearance of cargo,” said Kenya International Freight and Warehousing Association (Kifwa) chairman, William Ojonyo, on Thursday. According to the lobby, although the political impasse between President Uhuru Kenyatta and Nasa leader Raila Odinga that lasted more than three months was partly to blame for slow movement of goods from the port, there were more underlying issues. Kifwa said three months ago that clearing agents had incurred a Sh600 million loss as traders scaled down their activities at the port due to electoral anxiety. “We cannot blame the political atmosphere because that is not the problem. KRA has missed its target by billions of shillings not because the ships that were calling at the port are not coming. The problem is that the cargo is taking unnecessarily long to be cleared,” Mr Ojonyo added. The logistics lobby group claimed that nearly all goods coming to the country by sea were being subjected to stringent procedures including mandatory verification that took too long. “For the first time in the history of clearing and forwarding, all cargo is attracting storage charges because...

Traders in Kenya stand to benefit from increased efficiency following launch of the Information for Trade in Kenya web portal that aims at easing costs of trade. KenTrade CEO Mr. Amos Wangora said the portal will enable traders to access all the relevant documentation requirements for imports and/or exports of their respective commodities adding that their aim is to boost Kenya’s efforts to become a globally competitive player in the overall share of trade in the world. “It provides the current, potential traders and other stakeholders with total transparency on rules and procedures pertaining to import and export formalities, through detailed, practical and up-to-date descriptions of steps to go through, as seen from the user’s point of view to assist them to make informed business decisions,” Wangora explained. He added that the InfoTrade Kenya Portal together with the Kenya Trade Net System would provide an end to end solution on regulatory and documentation requirements in the country and to streamline and simplify trade processes for the business community. The portal has consolidated more than 120 documents and procedures required for import and export business in Kenya on one online platform. The portal is estimated to serve at least 1.5 million users per month and consolidates 73 documents under exports, 52 under imports and one under transits (cross-border trade) thus ensuring a shorter period in the export and import processes. Kenya Trade Network Agency (KenTrade) implemented the portal with financial support of approx. US$ 498, 000 from the United States Agency...

The portal consolidates all information on all laws, steps, licenses and other documents required for Import-export trade in Kenya Kenya becomes the first country in East Africa to comply with the article one of World Trade Organisation Trade Facilitation Agreement which is Transparency in export – import information. InfotradeKenya.go.ke includes a step by step guide to international trade, administration procedures, agencies to visit, permits, applicable fees among others. Kenya Trade Network Agency Chief Executive Amos Wangora says the portal will help importers and exporters transact faster and help make informed business decisions. He says the new portal will also create more transparency into international trade and reduce corruption. “Poor documentation of international trade procedures is a major stumbling block affecting traders in Kenya increasing lack of understanding of trade requirements in regard to exports and imports,” he said. The portal is estimated to serve at least 1.5 million users per month and consolidates 73 documents under exports, 52 under imports and one under transits (cross-border trade) thus ensuring a shorter period in the export and import processes. KenTrade implemented the portal with financial support of approx. Sh51.5 million from United States Agency for International Development (USAID) through TradeMark Africa (TMA). The move comes even as the government plans to increase its exports by 20 percent per annum. The government is already working on an export strategic plan which will be ready in two months Source: Capital Business

Kenya will use this month’s meeting with Tanzania to push Dar es Salaam to sign the European market access agreement as the country fights to save its multi-billion shilling traded. If locked out, Kenya stands to lose out on its current preferential access to European markets, subjecting its exporters to higher tariffs and cumulative tax demands in excess of Sh100 million a week as was the case in 2014. Trade secretary Adan Mohamed said conclusion of the long-pending deal will be addressed during the meeting to be held before the end of the month to persuade Dar to sign the Economic Partnership Agreement (EPA). Kenya and Rwanda signed the deal in 2016, but it needs approval from all members of the East African Community bloc—which also includes Burundi and Uganda—to take effect. Nairobi is at the moment accessing the European Union under a special arrangement after three other members failed to endorse EPAs last year. “In the meeting with Tanzania this month we shall discuss the issue of EPAs as part of our trade negotiations with the country,” said Mr Mohamed. He said Kenya is missing out on opportunities outlined in the EPA agreement. A delegation from Tanzania will also be visiting the country to discuss the trade wars between the two states. This meeting will come after the one held in Arusha in September. Mr Mohamed has been leading the regional bloc in the push for an EPA within the member states in the last two years. In March,...

Kenya’s trade deficit widened by Sh215.6 billion in the first eight months of the year as the cost of maize and rail imports soared amidst flat export earnings. Latest data from the Kenya National Bureau of Statistics (KNBS) shows the cost of imports rose by 23 per cent or Sh216.3 billion to hit Sh1.156 trillion in the eight months to August, while export earnings only rose by Sh701 million or 0.2 per cent to Sh394.4 billion. Imports rose when the government was importing rolling stock for the standard gauge railway and, in the second quarter, when the effects of drought pushed up food imports. According to Central Bank of Kenya, the worsening of the trade deficit has also had an effect on the current account, widening it by 5.4 per cent in the second quarter of the year to Sh135 billion from Sh128 billion at the end of quarter one. “Food imports rose on account of increased importation of cereals and sugar during the first half of 2017 resulting from dry weather conditions. The increase in oil imports in the second quarter of 2017 reflected relatively higher oil prices on the international market,” said CBK in its quarterly economic review for the three months to June. The KNBS data shows that in the eight months to August, food and beverage imports accounted on average for 14.1 per cent of the total import bill, compared to just 7.8 per cent in a similar period in 2016. Exports on the other hand...

Kenya Ports Authority’s Mombasa Port and Tanzania’s Dar es Salaam Port are not business rivals, the KPA management said on Tuesday. The two ports complement each other in handling business for the east and central African region despite the fact that Mombasa is much larger than its Dar neighbour, a forum was told. “Kenya alone cannot handle the millions of tonnes of cargo destined for Congo, Rwanda, South Sudan and Burundi annually. We need Tanzania to complement us. At the same time, Tanzania cannot alone handle all the cargo destined for east and central Africa region, so they need Kenya,” said Hajj Masemo, a senior corporate affairs official at KPA. Mombasa Port is ranked fifth in Africa after Egypt’s Port Said, Durban in South Africa, Tanger Med in Morocco, and Alexandria in Egypt. It achieved its one million container handling capacity two years ago, and has 21 berths compared to Dar e Salaam’s 13, while the Dar port made its 600,000-container handling capacity last year. To remain responsive to shipping and trade trends, KPA said it will continue with elaborate port modernisation programmes to position Mombasa as a world class port of choice. Managing director Catherine Mturi-Wairi said they have embarked on several expansion plans to modernize the port, including expansion of yards and berths, and an improved ICT process. “We have modernized cargo handling equipment, installed a state of the art integrated security system to control pilferage, dredged the port channel and widened its turning basin. Consequently, the port...