Innovators and entrepreneurs in the logistics and transport sector across the East African Community have a chance to acquire part of $16 million grant-based fund under the second phase of the logistics Innovation for Trade (LIFT) Challenge Fund. The TradeMark Africa initiative will provide grants ranging from $150,000 to $1 million to winning proposals from innovators across the world, whose project ideas will be implemented in East Africa. The organisation has already called for entries from qualifying sector player. The LIFT initiative is managed by Nathan Associates through a fund management team based in Nairobi, and is funded by the UK Department for International Development (DFID). It seeks to trigger and introduce innovative approaches to tackling freight and transport costs in the East African Community (EAC). TradeMark Africa chief executive Officer Frank Matsaert urged innovators to apply for funding, saying the challenge had enabled stakeholders to test new ideas that should reduce the cost and transport time in the EAC. “It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of ‘best practice’ technologies in the transport and logistics sector, enabling local businesses to compete favourably in the increasingly global economy,” said Matsaert. Businesses in the transport and logistics sector, or those that provide services to actors within it, are now being invited to submit their innovative concepts to LIFT for possible funding. The LIFT Challenge Fund is open to businesses...

Burundi, Kenya, Rwanda, Tanzania, and Uganda consider ending imports of used garments by 2019 in order to increase domestic production. Five East African countries may ban sales of second-hand clothing from abroad – a staple of many residents’ wardrobes – in order to bolster domestic garment making. Burundi, Kenya, Rwanda, Tanzania, and Uganda make up the East Africa Community (EAC), which directed its member countries to phase out textile and shoe imports by 2019. The heads of state of all five countries must agree before the limits could take effect. The proposal comes as many African countries seek to increase manufacturing and other industries to fuel economic growth. Charitable donations resold Second-hand clothing, mostly from Europe and North America, are a mainstay of local clothing markets in Africa, according to Dr. Andrew Brooks, author of Clothing Poverty: The Hidden World of Fast Fashion and Second-hand Clothes. In Uganda, for example, second-hand garments account for 81 percent of all clothing purchases, Brooks said. East Africa imported more than $150 million worth of second-hand clothing in 2015. Brooks noted that the used clothing is less expensive than locally produced garments or even inexpensive new imports. U.S., U.K. are largest exporters Most of the second-hand clothing sold around the world comes from charitable donations by European and North American residents who are unaware the clothing will be sold, Brooks said. The United States and the United Kingdom are by far the largest exporters of used clothing. The United States exported used garments worth more than...

A Sh1.6 billion ($16 million) grant-based fund that supports innovators and entrepreneurs working in the logistics and transport sector has opened entries for its second phase. Logistics Innovation for Trade (LIFT) Challenge Fund will provide grants ranging from Sh15 million ($150,000) to Sh100 million ($1,000,000) to winning proposals from innovators across the world, whose project ideas will be implemented in East Africa. LIFT is a TradeMark Africa initiative managed by Nathan Associates through a fund management team based in Nairobi. It is financially supported by the UK Department for International Development (DFID). It seeks to trigger and introduce innovative approaches to tackling freight and transport costs in the East African Community (EAC). TradeMark Africa CEO Frank Matsaert asked innovators to apply saying the challenge had enabled stakeholders to test new ideas that should reduce the cost and transport time in the EAC. “It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of ‘best practice’ technologies in the transport and logistics sector, enabling local businesses to compete favourably in the increasingly global economy,” said Mr Matsaert. LIFT Challenge Fund manager David Mitchell said the initiative’s impact to local entrepreneurs had been positive. “The Challenge Fund instruments fill a significant gap in the financial support needs of private businesses and the innovators that drive business activity to greater results and efficiencies,” said Mr Mitchell. Businesses in the transport and logistics sector, or...

Lack of skills and capacity among clearing and freight forwarding agents has been blamed for trade hurdles across the East African region, a new survey shows. The survey by TradeMark Africa (TMA) established that 477 clearing agents in the region had not been trained on improving trade logistics. This means that freight forwarding firms continue to incur costs such as fines imposed when clearing agents make errors on systems. The TMA survey conducted between 2011 and 2014 estimated that companies could save Sh38,500 annually if they employ trained clearing agents. TMA chief executive Frank Matsaert said business prosperity is achieved when there is a trade flow. “By training key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop,” he said. He said the survey was based on the premise that freight forwarders and clearing agents lacked necessary skills and capacity in clearing cargo at border points which resulted to an increase in cargo clearance costs and cargo release times. It was implemented by the Federation of East African Freight Forwarders Associations (FEAFFA) in conjunction with the East Africa Revenue Authorities (EARA). A total of 4,023 out of 4,500 freight forwarders and clearing agents were trained during the programme that sought to seal some skills gaps. The highest number of graduates in the programme were from Kenya, 1,665, while Tanzania had 1,218. Uganda, Rwanda and Burundi had 717; 299 and 164 graduates respectively. The survey projected an 84 per...

As traders rue missed opportunities relating to Uganda choosing Tanzania over Kenya on the pipeline route, other initiatives are going on to spur intra-trade in East African. Hopefully, the recent initiative by Kenya and Uganda supported by a number of global and regional bodies to create a common platform for facilitating cross-border trade in fish and fishery products, using Busia Border point will succeed. Many times, the cumbersome and punitive inspection protocols for animal, human and plant products across the countries, which have different requirements and standards, has made it difficult for intra trade between the two countries. Uganda has a bigger supply for fish products, which on many occasions go to waste, while traders in Kenya face a huge domestic demand for fish products for local and export consumption cannot access because of stringent standards and different trade regimes within the two countries. To ease the cross border trade in fish and fish products, that will allow increased intra trade within the two countries, and by extension, export to other countries, a number of activities and facilities are to be established at the Busia border point that will provide quick inspection of human, animal and plant products health both at and behind borders. The pilot is among the several initiatives being implemented by partners in the business community as a way of increasing the level of intra trade volumes in Africa including: the EAC has developed the regional sanitary and phytosanitary standards, (SPS) the Inspectors’ guide; standard Operating Procedures;...

The top African trade show - which was held from May 7 to 9 - at the Inkosi Albert Luthuli Convention Centre (Durban ICC), exploded with originality and creativity of the Africa’s wealth of cultural appeal, tourism natural attractions, services and products. In the media talk facilitated by the CNN New York based news anchor Richard Quest, African tourism ministers acknowledged the need to consult and engage one another to work on the bulk of issues which hinder tourism penetration. African ministers led by Hanekom added a strong voice on how Africa countries can come together to position themselves as tourism business collaborators and promote inbound tourism in which huge opportunities have largely not been exploited. “If one quarter of African countries were to implement the open skies for Africa decision  and facilitate great air connectivity between our countries - additional jobs (job creation) and an added GDP that could be generated with obvious numerous benefits for tourism in many countries, said Derek Hanekom, South African’s tourism minister. Hanekom said that many major airlines fly to Africa from North America, Europe, Asia and other parts of the world. However, once visitors reach this continent they encounter difficulties in connectivity as well as exorbitant air fares from country to country. He said that air transport services in Africa remained a critical constraint. Hanekom, who was one of the three panelist’ tourism experts who attended the media talk including ministers from Zambia, Zimbabwe, Namibia, Lesotho, Seychelles, Swaziland, Burkina Faso and Ghana. “Africa’s...

This was revealed here on the side-lines of the Indaba, Africa’s largest tourism trade show by the CEO’s of Tourism Board from Tanzania Ms. Devota Mdachi and Kenya’s Acting CEO, Ms. Jacinta Nzioka, and Uganda’s UTB Acting Marketing Manager, Ms. Sylvia Kalembe. “While we expect a significant growth of International arrivals this year, regional markets remains a potential segment that we are happy with the response of the Indaba trade show”, said  Devota Mdachi, Tanzania Tourist Board’s Managing Director. Tanzania was represented by nearly 40 exhibitors showcasing different tourism services and products from travel agents, tour operators and hospitality industry stakeholders.  Devota said the show exposed the growth of interest for Tanzania destination from different stakeholders including hosted buyers. Intra-Africa tourism business, according to Devota, is rising with many visitors visiting Tanzania from the African continent, particularly from South Africa. Some of key investments in the lodges and hotels in Tanzania are run and managed by South African companies, one of the pull factors, according to her. Zanzibar, the Serengeti national park Mount Kilimanjaro and Ngorongoro crater dominated most of the enquiries while some shown interest in the Ruaha and Katavi national parks in the Southern Tanzania. Of interest to some enquiries, Devota said was the Kigamboni new bridge which opens up tourism beaches in the administrative and commercial capital of Tanzania, Dar es Salaam. The Tanzania stand was graced with visits by different media houses based in and out of Africa including Richard Quest, the CNN news anchor who...

Trade is a basic economic commodity that activates and improves people’s socio-economic livelihoods. To increase competitiveness and spur regional economic growth, quality control and checking are pivotal. Standards, testing, conformity and assessment processes have been frequently mentioned as barriers to trade. East African countries – Kenya, Tanzania, Uganda, Burundi, Rwanda and now the rookie member, South Sudan — are addressing these barriers with the aim of increasing intra-EAC trade. Proper testing and certification increases the speed at which goods are traded across borders, ensures conformity assessment certificates are accepted, reduces rejection of goods and minimises costs. This is where the TradeMark Africa-supported Standards Harmonisation and Conformity Testing Programme comes in. The programme was launched in 2011 to help the East African National Standards Bureaus achieve regional harmonisation of standards and improve testing capacities, thereby improve trade competitiveness. So far, there are 70 new harmonised standards. Also, a 59 per cent testing cost reduction and 74 per cent average testing time reduction have been achieved across the East Africa Community bureaus of standards respectively. An analysis of volumes and values of intra- and extra-EAC trade of sampled products that the programme supported, indicates a growth trajectory — a 144 per cent increase in intra and extra EAC trade (from $857,997 in 2010 to $2,094,748 in 2014). The programme has also achieved clear results on market access requirements and certification of locally manufactured products by small and medium enterprises, particularly in Kenya. There has been a 194 per cent increase in the...

Making access to visas easy or scrapping the requirement entirely is an important way governments can help promote tourism and trade among the nations of the continent, according to the African Development Bank (ADB). The ADB has developed the Africa Visa Openness Index to assess which countries have the most open and efficient visa access. The bank says cumbersome visa procedures undermine doing business across borders on the continent. On average, travel within the continent is often difficult because African nations are “more closed off to each other than open” the ADB said in its 2016 report (pdf) on visa access. “Free movement of people is not a reality across Africa.” Most require visas in advance The report said only 20 percent of the 55 countries in the index do not require visas and only 15 percent offer visas on arrival, meaning more than half require visitors to obtain visas in advance. To make matters worse, the report said, many of Africa’s strategic hubs have restrictive visa policies while the continent’s small, landlocked and island states tend to be more open to promote trade links with neighboring countries. The report said countries in West and East Africa tend to be more open than in other regions. The top 10 nations for openness stand out, with an average score of 0.86 (out of 1) on the ADB index, more than double the overall average of 4.25. Seychelles is first for openness The top 10 countries are Seychelles, Mali, Uganda, Cape Verde,...

East African Community member states have failed to reach a deal on a common tax rate as the bloc’s smaller economies worry about significant revenue losses. The failure to harmonise value added tax, income tax and excise tax rates has left the regional bloc deliberating on how to harmonise legislation and regulatory frameworks governing the operations of these taxes in each country. A three-day meeting — convened by the EAC’s Sectoral Council on Finance and Economic Affairs in Arusha Tanzania from May 5-7 — to deliberate on the issue failed to agree on a policy framework to guide the process and instead sent the document to a consortium of experts. The draft EAC Domestic Taxes Policy Framework, which is under consideration, is critical for the harmonisation of VAT, income tax and excise duty. The Committee on Fiscal Affairs said the process of producing the domestic taxes harmonisation policy was taking too long and directed the EAC Secretariat to convene a meeting for the tax policy and tax administration subcommittee to look into the draft document and develop an EAC policy on tax harmonisation by August. Kenya’s National Treasury said while harmonisation of domestic taxes is a priority for the bloc, some countries are reluctant to go that route because of the fear of loss of  revenue. “This issue came up as part of the discussions during the meeting in Arusha last week. VAT has not been harmonised because it is an important source of revenue so countries are reluctant to lose out,” said Geoffrey...