News Tag: Tanzania

TAZARA aims at tripling cargo tonnage

MOVING OUT: Freight forwarders who use TAZARA, will enjoy benefits and advantages that no other transporter is able to offer.   DAR ES SALAAM, TANZANIA – The Tanzania-Zambia Railway Authority (TAZARA) plans to increase its cargo haulage capacity from 600,000 per annum to two million tonnes in the next five years as part of efforts to be more commercially viable.  This comes follows a joint partnership entered between TAZARA and Zambia Cargo and Logistics Limited (ZCL) (formerly known as MOFED Tanzania Ltd) to offer a complete loop of logistics services. In his presentation at the 7th East & Central Africa Roads and Rail Infrastructure Summit held last week in Dar es Salaam, TAZARA, Managing Director Engineer Bruno Ching’andu told participants the process is underway to amend the law governing the establishment of the authority to meet its new commercial objectives in order to compete in the market competition in the East and Southern transport market share. He said that the Authority it is set to undergo major changes to improve its performance and benefit the economies of the two countries as of currently the authority gets only 5% share of the Dar es Salaam ports cargo but strategically business is going on to reach up to 60% of the market share through the port. Established in 1976, TAZARA, which was established to unlock the landlocked Zambia and support the liberation struggle of the Southern African countries, is now working to ensure that it operates profitably. He said that the rehabilitation...

Harmonized standards can sharpen EAC competitive edge

Standards are a vital element in trade, because they help business interaction and access to markets in the economy.  Standards and compliance can also encourage trade by providing valuable information about product requirements or consumer preferences which all add to competitiveness. A standards regime helps open-up markets. It allows customers to compare offers from different suppliers, making it easier for smaller and younger enterprises to compete with larger and stronger companies. They also give small and medium size enterprises (SMEs) a competitive advantage by enabling them to compete on a level playing field with bigger enterprises internationally and to increase market share. With a total population of about 146 million people, the East African Community (EAC) offers fertile ground for companies to do business.  By doing so, this leads to economic growth generated by higher levels of intra-East African trade. The EAC has developed East African Standards to harmonize requirements governing quality of products and services across the Community. Companies rely on these standards and their own conformance to increase efficiency, reduce costs, and boost sales of their products and services. Implementation of common standards has put the EAC at the fore front of competition policy in sub-Saharan Africa.  It is foreseen that through harmonized standardization and compliance, any trade barriers encountered during the exchange of goods and services within the EAC is limited or avoided altogether. On the other hand, compliance with strict standards of regulations can often be expensive for companies. However research points to the fact that...

Africa Makes Progress On Trade and Economic Integration

Geneva — African countries are boosting intra-regional trade and deepening economic integration at a time when politicians in the global North are raising doubts about the benefits of trade, says the head of the United Nations Conference on Trade and Development. UNCTAD Secretary-General Mukhisa Kituyi told the World Trade Organization's annual public forum in Geneva: "Africa is widely noted for its low levels of intra-regional trade, but in fact the levels are much higher when North Africa is removed from the analysis." Speaking at a session on inclusive trade at the recent forum, he said economic integration will be key to Africa's long-term success and African nations must integrate more. "Africa has to know that there is no part of the world which has been successful in trading globally without learning first to trade with its neighbors," Dr. Kituyi said. UNCTAD says that in East Africa, intra-regional trade is closer to 26 percent, the same level as in Latin America. At the opening of the forum, Nigeria's Trade and Investment Minister, Okechukwu E. Enelamah, presented remarks for President Muhammadu Buhari which underlined the importance of an inclusive trade agenda. "This is a key question, particularly at this moment, when leaders are grappling with the challenge and consequences of inequality which has emerged as a major risk to peace and security," Enelamah said. 'Inclusive Trade' "Nigeria believes that a meaningful approach to inclusive trade will combine action by multilateral institutions for updated and more flexible rules, on the one hand, with...

Buying Tanzania products good for economy: TPSF

Tanzania Private Sector Foundation executive director Godfrey Simbeye speaks in Dar es Salaam last week. PHOTO|THE CITIZEN REPORTER  In Summary Last week, TPSF executive director Godfrey Simbeye held a discussion with some editors about the project. Below are some of the issues discussed: The Tanzania Private Sector Foundation (TPSF) — an apex body of all business associations in Tanzania — will tomorrow unveil Tanzania’s Top 50 brands which is one of the components under its newly launched Proudly Tanzanian Campaign. Last week, TPSF executive director Godfrey Simbeye held a discussion with some editors about the project. Below are some of the issues discussed: What does the ‘Proudly Tanzanian Campaign’ entail? It is simply the “buy local” campaign coordinated by TPSF, Tanzania Bureau of Standards, Tanzania Trade Development Authority, Confederation of Tanzania Industry and GS1 Tanzania. The campaign seeks to address the issues of job creation, boosting local consumption and stimulating our economy, through local investment in local products, services and exports. On 30th September 2001, former President, Benjamin Mkapa spoke at length regarding the dangers of depending on foreign aid but he also emphasized on the need for Tanzania to produce quality product that can be sold at affordable prices. With this campaign, we understand that by encouraging consumption of locally produced products, we will be promoting local producers thereby helping in the creation of jobs and hence increase government revenues. What has happened so far with regard to the campaign? We have conducted a survey to come up with...

Ethiopia-Djibouti railway big boost to China’s Africa projects

Chinese employees of the new railway that links Addis Ababa to Djibouti take pictures in front of the Chinese-made Ethiopian trains in Addis Ababa on September 24, 2016. The construction of the 752.7-km Ethiopia-Djibouti railway adheres to China’s level-two electrified railway standards. PHOTO | AFP  In Summary As many African countries have been following different gauge standards of Western countries, they are not in a position to form an integrated African railway network. A consortium of the two Chinese contractors, CREC and the China Civil Engineering Construction Corporation (CCECC), beat their Western rivals to win the bid. ADDIS ABABA Ethiopia and Djibouti launched Africa’s first modern electrified railway connecting their respective capitals Thursday. It also marked the first time that the complete spectrum of an overseas railway industry chain is fully backed by Chinese standards. The construction of the 752.7-km Ethiopia-Djibouti railway adheres to China’s level-two electrified railway standards. It has a designed hourly speed of 120 kilometres and a total investment of $4 billion. As many African countries have been following different gauge standards of Western countries, they are not in a position to form an integrated African railway network. In January 2004, African countries proposed an integrated railway network on the continent. With support from regional organisations like the Economic Community of West African States (Ecowas), the Southern African Development Community (SADC) and the East African Community, construction projects at transnational and intra-regional levels have been put on agenda. Before official planning was set for the Ethiopia-Djibouti railway...

New EAC rules of origin ‘will spur regional manufacturing industry’

The revision of rules of origin for products manufactured within the East African Community (EAC) have encouraged investment and boosted manufacturing sector within the region, the business community and officials have said. In Article 1 of General Agreement on Tariff and Trade, rules of origin are defined as laws, regulations and administrative determinations of general application applied by any member to determine the country of origin of goods leading to the granting of tariff preferences. Different stakeholders were speaking during the 7th session between the Ministry of East African Community and the Rwandan private sector, last week. The meeting sought to learn from the private sector’s experience on the implementation of the revised EAC Rules of Origin, and to share updates ahead of another meeting later this month that is envisaged to carry out a comprehensive review of Common External Tariff (CET). The 25 revised EAC rules of Origin (RoO) came into effect on January 23, 2015. While expounding on the revised rules, Fred Nuwagaba, a senior customs officer at Rwanda Revenue Authority (RRA), said they are more flexible, clearer and more explanatory. “They encourage investment in manufacturing, encourage investment in agriculture and aim at boosting processing industry in the region.” He warned the business community that, recently, there have been problems with people from some EAC member states who export cooking oil to Rwanda after only purifying and packaging crude oil commonly imported from Asia, a practice he said does not qualify for the preferential treatment under the new...

Magufuli orders major reforms at the port of Dar

Operations at the port of Dar es Salaam are slow because the authority has not invested enough in cranes for offloading ships. PHOTO | FILE  IN SUMMARY President John Magufuli has ordered the Tanzania Ports Authority (TPA) to hold crisis talks with Tanzania International Container Terminal Services (TICTS) as a first step towards reviewing the contract that grants the latter monopoly of container handling activities at berths 8, 9, 10 and 11 until 2025. The president said the so far served 16 years of the contract have not benefited the government. The 2005 contract extension was done at a time when the port was experiencing serious congestion and was criticised by Members of Parliament and termed dubious. President John Magufuli has ordered the Tanzania Ports Authority (TPA) to hold crisis talks with Tanzania International Container Terminal Services (TICTS) as a first step towards reviewing the contract that grants the latter monopoly of container handling activities at berths 8, 9, 10 and 11. The contract was signed in 2000, granting TICTS a 10-year licence to offer handling services at the port’s container terminal, the Kurasini Inland Container Depot and at the four berths. Initially, TPA performed all the functions related to container management. The contract bound TICTS to pay a fixed royalty of $3,680,000 annually, plus wharfage for each container handled. In 2005, TPA and TICTS signed an addendum to the contract (2nd addendum) that extended the lease period from 10 to 25 years and gave TICTS an additional operational area that...

Longest vessel docks at the Dar Port

DAR ES SALAAM Port has for the first time received the longest ship, having 261-metre length, to ever dock at the facility. According to the Director General of the Tanzania Ports Authority, Eng Deusdedit Kakoko, Mv Hammonia Grenada has the capacity of carrying 4,256 containers. "The ship had docked on Wednesday afternoon and offloaded 483 containers and loaded 656 others for transporting them to Thailand," noted Eng Kakoko. The arrival of the ship at the Port was regarded as true reflection on the ability of the port to handle large vessels which in the past diverted to Mombasa Port. He has assured customers that the port is fully operational and the arrival of Mv Hammonia has just opened doors for more larger ships.  Source: Daily News

New Study shows how TIR, the World’s only Universal Customs Transit System, can Radically reduce Trade Costs in Africa

The International Road Transport Organisation (IRU) (https://www.IRU.org) report, “Transit costs in East and Southern Africa” clearly demonstrates how African countries implementing the TIR Convention can reduce the costs of trade in southern and eastern Africa thus saving billions of dollars and increasing GDP in African countries. Since 1949, TIR has made international freight transits faster, more efficient and more secure, helping increase trade, boosting economic growth and making communities stronger. With TIR, goods are contained in sealed load compartments, and the contents are detailed in a TIR Carnet. This essential document accompanies the driver and the cargo along its journey. Customs simply have to verify the Carnet and that the seals are intact, rather than spend time to open the container and physically check the load. Umberto de Pretto, IRU Secretary General said “Some of the world’s highest trade costs can be found in Africa and the world’s road transport organisation, IRU, is working to support governments and the private sector to reduce these costs.” He continued “The report results show that TIR is up to 16 times less expensive than the national bond system on the Northern Corridor between Walvis Bay and Lubumbashi, and is also substantially more cost efficient on the three other African trade corridors in the study.” The report unequivocally concludes that the TIR system is the most cost effective transit bond method and could be deployed on all trade corridors in Africa. TIR, the world’s only universal customs transit system and one of the most successful...

EU says it may have alternative ways of dealing with EAC states

The European Union flag. PHOTO | AFP  The European Union says it may have alternative ways of dealing with the East African Community member states should they fail to meet the deadline of signing a joint trade agreement in January next year. EU Head of Delegation Stefano Dejak told reporters on Wednesday that the three-month extension from October this year should give all the East African Community member states who have not signed to endorse the pact. But should they fail, he said the European bloc will negotiate appropriate arrangements with the region. “This was the case to October the 1st and thanks to our relations, we have found a way to address this and extend the period,” he said at his residence when asked if individual countries will have to negotiate separately if the agreement is not endorsed by the entire region. “If that would turn out to be the case (in January), we would certainly look out how best to partner with the government of Kenya and other member states of the East African Community to do the best for both, I think, especially for Kenya but it is the same in other countries.” The Economic Partnership Agreements (EPAs) is a set of agreements that allow African countries specific privileges to export to the European Union markets without being subjected to customs. The agreement covers trade in goods and development cooperation and covers on agriculture, fisheries and economic and development cooperation. RATFIED PACT On Wednesday, Kenya through its...