Farmers from Uganda and the Democratic Republic of Congo will benefit from a combined $26 million training by TechnoServe, aimed at increasing production of specialty coffee for export. The non-profit development firm is training 15,000 farmers in eastern DRC under a five-year project funded by the United States Agency for International Development to the tune of $23 million. In western Uganda, the firm is targeting 30,000 growers under a four-year project funded by Germany-based Benckiser Stiftung Zukunft and Enveritas of New York to the tune of $3 million. In the DRC, TechnoServe will train farmers on climate-smart techniques and work with co-operatives to establish and improve processing facilities. The firm’s chief executive William Warshauer said growing global demand for specialty coffee presents an opportunity for farmers in the highlands of South Kivu to earn higher prices for their crop. “While meeting growing consumer demand for unique high-quality coffee, farmers can lift themselves out of poverty and provide better futures for their families,” he said. USAID/DRC mission director Christophe Tocco said the new value chains will improve food security, give farmers and small businesses a viable legitimate income and support economic growth. In western Uganda, TechnoServe will provide agronomy training to Robusta coffee farming families. “Robusta coffee is an important cash crop for more than 1.3 million farmers across the country. With improved farming techniques, farmers can improve coffee yields by an average of 50 per cent,” said TechnoServe. Meanwhile, Starbucks with Swiss food company Nestle have already recruited farmers in...

Kenya, Tanzania and Uganda are still squabbling over the implementation of the Common Market provisions, despite officials saying a lot of ground has been covered in resolving the issues. This came as Kenyan sugar-based products were denied preferential access to Uganda and Tanzania over the application of the Rules of Origin. For the fourth consecutive month, Cerelac, juice, ice cream and chewing gum from Kenya could not get preferential access to the Tanzanian market. A month ago, Uganda denied Kenyan confectionaries preferential access, arguing that Common External Tariff (CET) should be levied on the products since they were manufactured from industrial sugar imported under a 10 per cent duty remission scheme. Citing a 2017 legal notice, where Kenya was granted duty remission on raw sugar at a duty rate of 0 per cent for one year to manufacture sugar for industrial use, Tanzania is demanding full CET duties of 25 per cent on the products instead of the free access granted to products that meet the EAC origin criteria. However, Kenyan manufacturers argue that the products are not made from raw sugar but rather from industrial sugar imported under the EAC wide duty remission, which attracts 10 per cent levy. The Kenya Revenue Authority (KRA) argues that only one Kenyan company, which was supposed to produce refined sugar, benefited from the provision for imports under the 0 per cent levy. The firm has yet to utilise to the opportunity. “The denial of entry for Kenyan goods into Tanzania continues despite KRA’s...

East African governments are betting on modernising their ports to ease transportation bottlenecks and compete for the regional maritime business. On Monday, Tanzania announced that construction of the $10 billion Bagamoyo port begins in June, setting the pace of the country’s ambitious plan to have one of the most modern ports on the continent. Kenya also announced that it had picked Toyo Construction Co Ltd of Japan for a $319 million Mombasa port container-terminal expansion project starting soon. Djibouti, which has in the past three years inaugurated three new ports worth more than $650 million, had earlier announced that it was in talks with French shipping company CMA CGM to develop a $600 million new container terminal in its biggest port Doraleh, as seeks to become the region’s transport hub. Djibouti’s race to modernise its ports has shifted focus from Mombasa and Dar ports, especially after Ethiopia unveiled an electric Standard Gauge Railway early this year to ease the movement of goods to and from the country’s port of Ghoubet, which serves as the main gateway for exports from Ethiopia — handling ships of up to 100,000 deadweight tonnes. Special economic zones The country’s port upgrades, it says, is part of its four mega ports projects “aimed at providing world-class logistics platforms for shipping…with world class facilities will vastly improve the efficiency and ease of doing business in the Horn of Africa.” Its latest container terminal upgrade at the strategically located port of Doraleh, which connects Asia, Africa and Europe,...

Tanzania could turn to World Bank to finance the construction of its electric standard gauge railway (SGR). Finance and Planning Minister Dr Philip Mpango on Monday said that the World Bank had expressed its intention to help fund the Isaka-Rusumo SGR section and Rwanda’s section from Rusumo border to Kigali, along with other transport infrastructure projects. This would be an about-turn from President Magufuli’s earlier stance that Tanzania would finance its multibillion-dollar railway, aircraft modernisation and energy projects. “We have the funds for the construction of the standard gauge railway until its completion from Dar to Isaka. We also have the resources internally to fund the construction of the Stiegler Gorge hydroelectricity project,” President Magufuli said in March. About two years ago, President Magufuli asked for money to finance infrastructure project from the World Bank Group president Dr Jim Yong Kim, who was on a visit to Dar. Budget allocation And now, Dar has announced setting aside over $610 million in the 2018/19 budget for the construction of the 300km SGR between Dar and Morogoro; and the 336km Morogoro-Makutopora line. This is significantly higher than the $392.23 million set aside in the current financial year. Transport and works Minister Makame Mbarawa told parliament that an additional $435,821 had been set aside for a feasibility study into the proposed 371-kilometre SGR project linking Isaka and Rusumo in Rwanda. Dr Mpango’s meeting with World Bank officials in Washington D.C. now sets in motion the discussions between Dar and Kigali over the railway...

Nairobi. A fresh round of trade wars is simmering in East Africa after Tanzania and Uganda imposed taxes on Kenya made confectionery products like chocolate, ice cream, biscuits and sweets citing use of imported industrial sugar in the goods. The two states have rejected certificates of origin issued by the Kenya Revenue Authority (KRA) and opted to levy 25 per cent import duty on Kenyan confectioneries. Acceptance of the certificate-- a document showing where a good has originated so as to determine the import duty chargeable — guarantees Kenyan goods tax-free entry into Uganda and Tanzania. The East Africa Community common market is made up of Tanzania, Kenya, Uganda, Rwanda and Burundi allows free movement of locally manufactured goods within the bloc. Tanzania and Uganda revenue authorities have, however, accused the Kenyan manufacturers of tilting competition in their favour by using industrial sugar imported under a 10 per cent duty remission scheme. The region does not produce industrial sugar. Last week, Kenyan firms accused Uganda and Tanzania of using the customs taxes to restrict trade in East Africa. “This is an EAC-wide remission scheme that is available to all manufacturers in the region,” said Kenya Association of Manufacturers (KAM) chief executive Phyllis Wakiaga. “We are not supposed to pay duty when we sell in the region because our competitors in the region also rely on industrial sugar imported under the same remission scheme.” KRA has come to the defence of Kenyan firms saying confectionery products made of industrial sugar imported under...

Arusha. Tanzania and Uganda consume 50 per cent of bananas grown in Africa, but realise only nine per cent of the potential yield due to poor productivity due to pests and diseases. The two countries do not feature among the leading exporters of the food crop because of little efforts to boost production, quality and secure foreign markets. “Cote d’Ivoire and Cameroon are the two leading banana exporters in Africa. What is wrong with us in East Africa?” asked Dr Cyprian Ebong, the acting executive secretary of the Association for Strengthening Agricultural Research in Eastern and Central Africa (Asareca). He was speaking at the launch of a $13.8 million Breeding Better Bananas (BBB), a banana improvement project targeting Tanzania, Uganda, Kenya, Burundi, Rwanda and Ethiopia. The three and a half-year project aims at improving productivity of the crop and make it a traded commodity through marker assisted hybrid selection. Dr Ebong said although banana is both a food and cash crop, the region has failed to exploit the potential due to poor production technologies coupled with disease and pest attacks. To ensure increased productivity that would lead to commercialisation of the crop, research will be intensified for high yielding and disease resistant breeds. For the East African Community (EAC) bloc, banana production generates $4.3 billion annually, accounting for five per cent of the Gross Domestic Product (GDP). In Tanzania, a total of 760,000 hectares of the crop, one of the major food staples and a leading income for smallholder farmers,...

The World Bank says 18 sub-Saharan African countries are at "high risk of debt distress" in 2018 compared with just eight five years ago. The World Bank’s Pulse report doesn’t name the 18 but a report in TheEconomist says Kenya is among the 18 countries where government debt is above 50 per cent of GDP. The bank has also expressed concern that tax receipts are not meeting the cost of debt repayments in several countries. It warns that the consequences may be severe if action is not taken to address the issue in the coming years. This is because from 2021 international bonds start maturing and large repayments pose “significant refinancing risks” to the region, the bank says. Public debt rising The World Bank says that public debt relative to GDP is rising throughout most of sub-Saharan Africa, and the composition of debt has changed. More countries have shifted away from traditional concessional sources of financing toward more market-based ones. From 2013, the dynamics and composition of public debt changed significantly. Public debt increased from an average of 37 per cent of gross domestic product (GDP) in 2012 to 56 per cent in 2016, with more than two-thirds of the countries experiencing an increase of more than 20 percentage points. Debt sustainability risks in the region “have increased significantly” over the past few years, the report says. “Higher debt burdens and the increasing exposure to market risks raise concerns about debt sustainability,” the report says. Eighteen countries were classified at...

Tanzania has rejected Kenya Revenue Authority (KRA) backing of locally made goods in a fresh trade spat that has seen Dar es Salam impose barriers on confectionery products like chocolate, ice cream, biscuits and sweets. Tanzania slapped a 25 per cent import duty on Kenyan firms citing the use of imported industrial sugar in the goods. It has ignored evidence from KRA indicating the share of imported sugar in the Kenya- made goods was within the levels that grant the products tax-free passage to Uganda and Tanzania. The East Africa Community (EAC) common market made up of Tanzania, Kenya, Uganda, Rwanda, South Sudan and Burundi allows for free movement of locally manufactured goods within the bloc. “The denial of entry for Kenyan goods into Tanzania continues despite KRA’s intervention to clarify the matter to its Tanzanian counterpart,” Kenya Association of Manufacturers said on Thursday. “KRA has provided detailed information with evidence that manufacturers of above affected products, import industrial sugar for tariff number 1701.99.10.” Tanzania and Uganda revenue bodies have, however, accused the Kenyan manufacturers of tilting competition in their favour by using industrial sugar imported under a 10 per cent duty remission scheme. The region does not produce industrial sugar. Last week, Kenyan firms accused the two countries of using the customs taxes to restrict trade. “Despite these and other multiple attempts, Tanzania has continued to bar Kenyan products and has additionally denied the delivery these goods under bond,” KAM said, adding that the move had forced Kenyan firms...

Dodoma — PRESIDENT John Magufuli yesterday called for unity and cooperation among East African Community (EAC) member states to maintain the region's sustainable development. Dr Magufuli said distrust and trade barriers in the EAC bloc benefit nobody, but were instead victimising the East Africans doing businesses and other socialeconomic related activities. He said massive investment in industrial and infrastructure development is vital for effective utilisation of existing natural resources to benefit the over 170 million people. Addressing the evening session of the East African Legislative Assembly (EALA) here, President Magufuli said Members of Parliament (MPs) were dutybound to improve people integration and adopt suitable laws and policies for the region. "EALA members should ensure that policies and legislations attract and promote investments ... this is your responsibility as parliamentarians to ensure that we all care for others," he said. Explaining on the shortage of industries, President Magufuli who aggressively champions industrial revolution in the country, said EAC member states have not been benefitting from their natural resources due to lack of manufacturing industries. "South Sudan, for instance, has huge quantity of minerals and oil reserves, but few exploiters are condemning the youngest African nation to endless conflicts. "....This is also the case with Tanzania ... we are the second country in Africa with largest number of livestock, yet, most of us here don't put on shoes produced from local industries," he said. He added: "We don't benefit from these raw materials and they do not help our 170 million people,"...

President John Magufuli yesterday outlined at least five issues that East Africa Legislative Assembly (Eala) members need to work on to support the development agenda of the region. The issues, according to him, include intra-regional diplomatic disputes, trade barriers and mistrust among member states. Dr Magufuli also mentioned low industrialisation and poor infrastructure as major hurdles to development in the region. Addressing Eala members who were meeting in Dodoma, President Magufuli said: "There are some disputes, which you are all aware of, that have persisted for a long time. In fact, they are playing a role in delaying the region's development. "But it is also my wish that you, as representatives of East Africans, will be discussing possible solutions to trade barriers and how to spur investment in the region. Also, don't forget also that mutual trust in the region is important in promoting peace and unity." On industries, Dr Magufuli challenged Eala members to help mobilise domestic and foreign investments in manufacturing and processing of natural resources. His emphasis also was on the need to improve electricity production, which was still low compared to demand. "The East Africa Community (EAC) has a total population of about 170 million. This is a huge market, and that is why it is important to focus on industrialisation. We cannot continue to import everything," noted the Head of State. "You have been elected at the right time. Intra-regional trade is picking up. It has now reached $5 billion from $1.8 billion in 2005....