Growth in the logistics industry may stagnate or drop due to inadequate participation of women in the sector, a new study by lobby group Trademark East Africa shows. The study, released in June reveals that 68 per cent of female employees in the logistics sector find their working conditions very poor while only 13 per cent find them good. Locally, only 20.5 per cent of employees in the logistics sector are women, a statistic that is below the one-third participation requirement by the law. The story is replicated throughout the East African region with only Rwanda achieving slightly above the one-third rule, at 33.3 per cent, while Tanzania and Uganda stagnate at 15.8 per cent, while Burundi trails behind at 15.6 per cent women in the sector. “East Africa’s logistics industry faces a significant skills gap and the region could make up on much needed skills by enhancing women’s participation. We need to get to that level where more women take up relevant training courses and eventually these jobs so that we all grow the economies,” TradeMark Africa director of trade logistics Abhishek Sharma said in a statement to the Star. Collectively, the East Africa region only has 19.73 per cent of its women in the logistics industry with men taking up 80.21 per cent of the jobs. According to the study, the pipeline of young women to the industry is very narrow, a situation likely to make the sector worsen as women in the country are failing to enroll...

Kenya Ports Authority (KPA) has been selected to host the 26th International Association of Maritime Economists (IAME) Conference for the first time in Africa next year. The IAME President Jan Hoffman made the announcement during the official opening of the 25th IAME conference at a hotel in Kyoto, Japan.The theme of this year’s conference is “Maritime Transport Quality in the Evolving World Trade.” “Next year IAME will hold its annual conference in Mombasa – the first time we meet on the African continent and another reflection of the truly global nature of maritime transport and our association,” said Dr Hoffmann. The meeting is expected to put Mombasa Port in the international limelight and provide an opportunity to market it the preferred destination for cargo in the region. The conference comes in the wake of aggressive expansion and modernisation of the port that has also been supported by reforms to improve efficiency. Nomination of KPA is a win for the port of Mombasa against other six leading ports in Africa among them Port of Durban, Port of Lagos, Port of Abidjan, Suez Canal and Port of Djibouti. KPA’s Head of Corporate Development Martin Mutuku was co-opted as an IAME council member and is expected to receive the association’s flag as the main sponsor of the 26th event on behalf of the KPA Managing Director Catherine Mturi. KPA is expected to, among others, offer logistical and administrative support for the conference. Source: Daily Post Kenya

Traders have been urged to take advantage of the new customs reforms to become more competitive and increase cross-border trade. According to the Rwanda Revenue Authority (RRA), some of the reforms including, the gold card scheme and authorised economic operator, offer benefits that could enhance the efficiency of local traders. Though some of the reforms were implemented this year, the gold card facility was launched two years ago to ease goods clearance procedures for low-risk importers. Fred Nuwagaba, the RRA customs unit trade management division expert, however, said few cross-border traders have embraced the facility despite its enormous benefits. “Goods of compliant tax-payers that hold this facility (gold card) are released immediately upon declaration at customs. This is, therefore, an instrument that eases and promotes trade that the importers should exploit to boost business,” Nuwagaba told The New Times. The gold card scheme is intended to help customs balance its conflicting mandates of trade facilitation and enforcement and control, the expert explained. It also allows the department to facilitate low-risk consignments, allowing the agency to focus its enforcement efforts on the transactions representing “higher or unknown risk” ensuring easy flow of goods, he added. Sensitisation needed Trade experts, however, say there is need to sensitise traders on such facilities to enhance their effectiveness and, ultimately, promote regional trade. Kevin Umuhoza, a trade expert in Kigali, said it is RRA’s responsibility to educate traders about such facilities and the benefits they present them (business community). Umuhoza added that few importers and exporters...

Kenya’s current account deficit was dented in the first three months of this year after imports substantially outweighed exports. According to the latest figures by the Kenya National Bureau of Statistics (KNBS), the current account deficit more than doubled to Sh123.2 billion between January and March compared to Sh43.4 billion in the same period last year.A decline in international merchandise, said the national statistician, was mainly to blame for the trade imbalance. During the period under review, exports dropped by 2.3 per cent to Sh152 billion even as imports went up by 32.4 per cent on free on board basis to Sh 411.6 billion. “International merchandise trade, which includes exports and imports of goods registered a deficit of Sh259.6 billion in the quarter under review, an increase of 67.3 per cent from a deficit of Sh155.2 billion in the first quarter of 2016,” said the Quarterly Balance of Payments Report. A deteriorating current account deficit means that the country lost critical foreign exchange cash, particularly the United States dollars, as most of it was used to get goods from the international market. Kenya’s foreign cash account is mainly boosted by earnings from exports and tourism as well as domestic remittances. There were increased earnings due to travel inflows following improved tourism arrivals in the quarter under review. Money sent back home by Kenyans abroad, or Diaspora remittances, also increased by 5.5 per cent to Sh45.1 billion in the first quarter of this year from Sh42.8 billion in the first quarter...

National Treasury Cabinet Secretary Henry Rotich says the funds will go towards the high priority project, which is expected to offer easy access to the region, mobility and transportation of goods and passengers. Rotich added that the project will significantly decongest the city of Mombasa by providing an alternative option to the Likoni Ferry by linking the mainland with Mombasa South Coast. “It will further complement the ongoing expansion of the Mombasa Port, the proposed development of SEZ and therefore contribute to a higher economic development of the country,” he said. The amount is a follow-up of the Sh28.94 billion loan provided by Japan to fund the project’s first phase in 2012. The new loan will finance the construction of the 8.9 km road between Mwache Junction and Mteza, and the 6.9 km road between Mteza and Kibundani. It is expected that the new stretch will provide a link between the Mombasa-Nairobi highway and the Likoni-Lunga Lunga Road. The Yen dominated loan for the entire Mombasa Port Area Road Development project in total now amounts to about Sh36.9 billion. “Through the completion of this project, the logistics around the Mombasa Port will improve dramatically the development of the Dongo Kindu SEZ,” Japanese Ambassador to Kenya Toshitsugu Uesawa, during the signing of the loan. The yen credit extended to Kenya is part of the Sh14.6 billion assistance extended to fund different projects in the country. The loan, which will attract an interest of 1.2pc, is to be repaid after 30 years with...

Kenya stands to gain significantly from stronger economic growth of regional partners, as it can take advantage of increased demand from these economies, says a report launched on Tuesday by an international accountancy and finance body. The report by the Institute of Chartered Accountants in England and Wales (ICAEW) finds that Nairobi is positioned to take advantage of rising demand for manufactured goods, while the country's location and relatively developed transport infrastructure will allow Kenya to act as the gateway into the East Africa region. "The East Africa Community (EAC)'s infrastructure development strategy still largely depends on improving the efficiency of imports to the region through Mombasa, from which Kenya can be expected to gain," the report says. The report reveals that EAC members accounted for a fifth of total Kenyan exports in 2016. According to the report, the African continent accounted for 41 percent of Kenya's exports in 2016 while Europe and Asia each accounted for approximately a quarter of total exports. The study finds that Uganda held the position of Kenya's largest single export destination accounting for 11 percent of total exports during 2016. The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provides a snapshot of the region's economic performance. The report focuses specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola. The East African nation has been relatively successful in diversifying its exports and building up a strong manufacturing base. Agricultural products such as tea and flowers made...

EAST African Grain Council (EAGC) is optimistic that the Zambia Commodity Exchange (ZAMACE) platform will boost trade relations between Zambia and East Africa. EAGC executive director Gerald Masila said the East African region has a great demand for local commodities, providing an opportunity for Zambia to supply grains and cereal to that region. Mr Masila said in an interview when ZAMACE hosted-regional grain trade facilitation forum last week that the gathering provided an opportunity for Zambia to supply East Africa as Zambia is a big supplier and producer of grains and cereal. “We are here hosting a trade facilitation programme that has brought together buyers from the East African region including Rwanda, Burundi, Uganda, Kenya, Malawi and others. “In this forum, buyers from the Eastern African region are meeting sellers from Zambia and they are negotiating and signing transaction agreements for supply of grains and cereals out of Zambia to East Africa… This is the beginning of a long journey that will see a total change in trade relations between Zambia and East Africa,” he said. Mr Masila said the assurances that Minister of Finance Felix Mutati gave to the business community that Government will support the transactions and also address the bottlenecks that may come along the way of trading will further boost trade relations. “We are, therefore, glad that the minister [of Finance] has confirmed that the export bans are a thing of the past and that Zambia has changed orientation so that this country will be looking...

The East African Legislative Assembly (Eala) has been commended for banning plastic bags. Eala passed the Polythene Materials Control Bill 2016 that if it becomes a law it will totally ban the use of plastic bags across the East African Community. According to stakeholders here, plastic materials threaten the ecosystem. The bill proposes the use of biodegradable packaging materials. Moreover, exemptions have been made for materials used in medical stores, industrial packaging, and agriculture. Punishment for those caught breaking the law will be left at the discretion of member states. Despite efforts by authorities to manage the environment, the use and right disposal of polythene materials have been a problem. The Lake Zone director for the National Environment Management Council, Mr Jamal Baluti, says the majority of the people are ignorant about the dangers of plastic materials to the environment. He says people cannot manage the use of plastic bags because there are no other packaging materials to replace plastic bags. "The idea of phasing out plastic bags across the bloc has been discussed by environment agencies of EAC member states." He noted that the amount of resources the government spends to unblock drainage systems and clean the environment is bigger than the cost of replacing packaging practices. According to him, the introduction of right policies and proper enforcement mechanisms will have plastic bags phased out easily. He cites Rwanda, which banned plastic bags in 2008 and replaced them by biodegradable packaging materials. Tanzania banned liquor sachets to protect the...

The current trade war between Tanzania and Kenya is not helpful and certainly does not bode well for the unity of the East African Community. The row has seen Kenya block cooking gas and wheat imports from Tanzania, while Dar es Salam has blocked Kenyan milk and tyres from entering its territory. While each country has had some reason for taking the drastic moves, overt protectionism is likely to end up being a lose-lose situation. Many citizens of EAC benefit from regional trade and there are a lot more benefits from having open borders within the region than there would be when individual countries restrict trade. The spat could lead to loss of many jobs and a source of livelihoods for many, when markets are closed. The concerns that the two countries have such as what Kenya has in regard to safety risks in regard to importation of gas should be resolved diplomatically. The relevant agencies between the two countries can quietly reach out to address the concerns and resolve the problem amicably. Tanzania can endeavour to do the same so that the issues are not seen as an all-out trade or even political conflicts, which is unlikely to have any positive effects. Essentially, the solution is for the two countries to come together and negotiate in good faith, for the good of their citizens. Source: Business Daily

Kenya’s Mombasa-Nairobi Standard Gauge Railway (SGR) launched operation on Wednesday, becoming the newest addition to the list of Chinese-built railways in Africa that are fast-tracking development and delivering green growth. The 480-km railway cuts the journey from Kenya’s capital to the Mombasa Port, the biggest port in East Africa, from 12 hours to just over four hours. While the railway brings about the much-awaited convenience and efficiency, it also succeeds in accommodating the wildlife movement needs, thus causing minimal interference to the animals. Prior to the new 3.8 billion U.S. dollars SGR, which is the biggest infrastructure project for Kenya since its independence in 1963, people relied on the two-lane highway (A109) and the century-old meter-gauge railway for road transportation. Neither of the two has been efficient enough to meet the demands of Kenya’s rising economy. Due to lack of maintenance and upgrading, the colonial-era railway has dropped its speed to below 40 km/h and its annual freight volume is less than 1 million tonnes, accounting for less than 10 percent of the total throughput of the Mombasa Port. The A109 road has long been a problematic alternative, laden with truck traffic and prone to accidents. Overturned trucks are commonplace, paralyzing traffic, damaging roads, and causing pervasive pollution. The SGR line has a designed speed of 80km/h for freight trains and 120km/h for passenger trains. One freight train, which can haul a record 200 containers, can get about 100 trucks off the road. Atanas Maina, managing director of Kenya Railways...