Traders trucked in 3.28 million bags of cheaper maize from Uganda in five months through May, fresh official statistics indicate, helping price out maize farmers from Kenya’s food basket regions. Data released by the Kenya Revenue Authority (KRA) shows 295,200 metric tonnes of staple maize was imported from the west-neighbouring country in the period, which was 47,610 tonnes more than what was bought in the whole of 2017 and 2016. Uganda accounted for 70.36 per cent of the nearly 419,548 tonnes of maize, an equivalent of about 4.66 million 90-kilo bags, which was was shipped into Kenya in that period. The rest of the maize was bought from Zambia (64,800 tonnes), Tanzania (56,245 tonnes), Mozambique (3,300 tonnes) and United Arabs Emirates (1.45 tonnes), KRA Commissioner for Customs and Border Control Julius Musyoki said in a report to legislators. There was no maize that was shipped in from Mexico where 584,095 tonnes (6.49 million bags) was bought last year, representing nearly half (44.36 per cent) of the 1.32 million tonnes that was imported to bridge a drought-induced shortage. The maize imports in the January-May period of the year were valued at nearly Ksh8.78 billion, Mr Musyoki told the National Assembly’s departmental committee on Agriculture and Livestock, chaired by chaired by Mandera South MP Adan Haji. The committee is investigating irregular purchase of maize by the National Cereals and Produce Board (NCPB) from traders at the expense of farmers. Maize from six-nation East African Community such as Uganda and Tanzania is exempted...

AN automobile inspection-One Stop Centre Inspection, which is currently under construction in Manyoni, is set for completion in September this year, officials said. The one stop centre is expected to easy goods transportation to the countries in the East African Community (EAC). The project’s resident engineer, NIMEA Consult (T) ltd’s Engineer Patrick Lutinya told the Deputy Minister for Works, Transport and Communications, Mr Elias Kwandikwa that they were optimistic to complete the project as planned. He said the project has been completed by 45 per cent. “We will not request additional time. We will surely deliver within time,” he added. The East African member states agreed for the construction of one stop centre for inspection to reduce trade barriers within the region. The Ugandan consignment shipped through Dar es Salaam port, for instance, was subjected to at least 30 inspection points before reaching its final destination. In March last year, the government in collaboration with the central corridor transit transport facilitation agency, (TTFA) kicked off the much-awaited OSIS in Manyoni. Similar project was launched at Nyakanazi in Kagera Region. The project is being executed by an Italian construction firm Ms Mantovani Group. Tanzania National Roads Agency (TANROADS) Singida Regional Manager, Engineer Leonard Kapongo said the cost of the project is pegged at 9bn/-. The entire OSIS project will cost 23 million Euros, comprising 21 million Euros by the Delegation of European Union Commission and two million Euros from Trademark East Africa (TMA) for feasibility study and construction supervision. Mr Kwandikwa...

Dar es Salaam. Women food processors will now have places to market their products after Trademark East Africa announced a plan to construct food parks. Trademark East Africa (TMA) through its project with Tanzania Women Chamber of Commerce (TWCC) has announced a tender, calling for bidders for conducting a feasibility study on development of food parks in the country. The tender also seeking a transaction advisor to advise Tanzania Food Processors Association of Women Entrepreneurs (Tafopa) on the development of appropriate framework to develop the food parks. Food parks are comprehensive food processing aimed at establishing a direct linkage from farm to processing and then to consumers markets, through a network centres and primary processing centers. Earlier, Vice President Samia Suluhu Hassan said at the women food processing stakeholders meeting that industrial parks were underway through President’ Office –Regional Administration and Local Government. She made the remarks when responding to a demand raised by women food processors who asked to establish industrial parks furnished with modern process of equipment for them to increase productivity and compete locally and globally. Ms Hassan further explained that the government was working with district and regional councils to ensure that industrial areas and business premises are allocated. “We understand the challenges facing small and medium sized enterprise and we will work on them. We are also discussing with government to trim down taxes on entrepreneurs’ particularity food processors,” she said. Source: The Citizen

GENEVA – According to an old African proverb, “When elephants fight, it is the grass that suffers.” The same is true for full-blown trade wars: when major economies clash, developing countries will be among the hardest hit. On June 1, the US administration imposed import tariffs of 25% on steel and 10% on aluminum. The levies will affect not just China, but also Canada, Mexico, and the countries of the European Union. As Cecilia Malmström, the EU Commissioner for Trade, observed at a recent event held by the United Nations Conference on Trade and Development (UNCTAD), “We are not in a trade war, but we could be.” It is a situation that should concern everyone. We know from history that nobody “wins” in a trade war. Tariff hikes by major trading countries represent a reversal of efforts since the end of World War II to eliminate trade barriers and facilitate global commerce. Since the General Agreement on Tariffs and Trade took effect in 1947, the average value of tariffs in force around the world has declined by 85%. That is no coincidence; rather, it is the result of multilateral cooperation, and eight rounds of global trade negotiations, first under the GATT, and then under its successor, the World Trade Organization. Tariff reductions, together with technological advances, drove the extraordinary expansion of global trade that we have witnessed just in our lifetimes. In 1960, trade as share of world GDP stood at 24%; today it is nearly 60%. The expansion of...

"The best is the enemy of the good" is an expression associated with Voltaire. It just might have critical relevance for the relation between the African Continental Free Trade Area (ACFTA), the Common Markert for Eastern and Southern Africa (Comesa)-the East African Community(EAC) and the Southern Africa Development Community (SADC) Tripartite Free Trade Area (TFTA) and the regional economic communities (RECs) in Africa. But on June 8, 2018, Kenya deposited with Comesa Secretariat in Lusaka, the instrument of ratification of the TFTA, having ratified ACFTA as well and deposited the instrument with the African Union Commission. Both South Africa and Uganda were also taking the same approach of ratifying both. Just a year ago, it all looked impossible to many around the world that Africa could have a Continental Free Trade Area. But for some, this was de javu, for it was the same trepidation in 2015 just before the TFTA was launched on 10 June in Egypt. The TFTA was an African revelation, for it demonstrated the palpable possibility of and spurred strategists towards a continental equivalent. Having missed the deadline of December 2017, ACFTA was duly launched a mere three months later on March 21, 2018 in Kigali, with 44 out of the 55 African countries signing the Agreement on the spot. World history was made, despite entrenched skepticism rooted in pessimistic narratives about Africa but delighting and vindicating optimists around the world. There was some pending work though. Precise time frames were duly set. Annexes (with detailed...

Kampala. East African currencies, including the Ugandan and Tanzanian shillings as well as the Rwanda franc have taken a beating as they continue to weaken against the dollar. The Ugandan shilling has edged downwards by 3.6 per cent against the dollar since January while the Tanzanian shilling has edged by 1.8 per cent. The Rwanda franc has been a bit resistant only weakening by 0.9 per cent. The Uganda shilling has been the worst hit closing last Thursday at Shs3,824 against the dollar, according to Bank of Uganda. The weakening trends present a tricky situation for the region, which has been recovering from a difficult period characterised by a rapid increase in imports, relatively violent elections and slowed economic growth. This has not been helped by stagnated or reduced growth in the export sector. The Uganda shilling, according to Mr Stephen Kaboyo, the Alpha Capital managing partner, has been undermined by surging dollar demand amid low forex inflows. “Bank of Uganda’s intervention [last week] provided a short period of relief,” he said, highlighting the likelihood of continued weakening of the Uganda shilling in the weeks ahead. “Outlook indicates sustained weakening in the coming days on account of intense demand from importers and commercial banks,” he said. The Central Bank, Mr Kaboyo said, had last week only sold Shs101b worth of dollars against the targeted Shs180b after the unit lost almost Shs50 of its value in just three days. Earlier, Bank of Uganda had said it would not intervene in the...

Tanzania’s priorities in the 2018/2019 budget are its flagship infrastructure projects and creating a conducive environment for investment and business, especially in the agriculture sector. In the budget presented last week on Thursday by Finance Minister Philip Mpango, the focus was on agriculture, infrastructure and industrialisation. Dr Mpango is seeking to improve irrigation infrastructure, warehouses and markets, supply of inputs, dissemination of skills and development of the livestock and fisheries sub-sectors. On industries, he is proposing to implement a recently developed blueprint for regulatory reforms to improve the business environment. The budget also plans to prioritise social services such as clean water, free basic education, improved health facilities and supplies. The finance minister has allocated funds to support electricity generation, construction of the standard gauge railway (SGR) and improving regional and rural road connectivity, air and marine transport. The construction of the SGR, new trunk roads, revival of the ailing Air Tanzania Corporation, expansion of airports and ports also top the government’s agenda. The government is allocating 12.9 per cent of the total budget amounting to Tsh4.2 trillion ($2.1 billion) to the development of major infrastructure projects aimed at making Tanzania a middle-income economy in the next seven years. About Tsh1.4 trillion ($700 million) has been earmarked for the construction of the SGR between Dar es Salaam-Morogoro (300km) and Morogoro-Makutopora in the capital city of Dodoma (422km).This is significantly higher than the Tsh900 billion ($400 million) set aside in the 2017/2018 financial year. The government has set aside Tsh215 billion...

Tanzania is proposing to implement sweeping changes in the East African Community common external tariff (CET) regime, increasing duty on almost three quarters of the goods, as it seeks to protect local industries. Kenya also announced similar measures, but on a smaller scale, saying it is important to grow local industries and increase production while protecting producers from cheap imports. Last month, finance ministers from the East African Community agreed to effect changes to the CET and make amendments to the EAC Customs Management Act 2004, to protect local industries and farmers from cheap imports of items like sugar, maize, wheat and rice, as well as Customs-related taxation measures. However, only Tanzania has sought to fully implement these changes in the 2018/19 fiscal year, with Kenya only proposing to implement three of the proposed 25 changes. Uganda and Rwanda have not proposed any changes in the budgets delivered on Thursday. The current CET is based on three bands: 25 per cent for finished goods, 10 per cent for intermediate goods and zero per cent for raw materials and capital goods, with a limited number of products on the “sensitive goods” list, which attract rates above the maximum 25 per cent. The three-band tariff package has been blamed for killing competitiveness of local businesses and obstructing intra-regional trade by forcing them to pay duty of 25 per cent on some imported inputs which should ordinarily attract zero per cent or 10 per cent duty. The EAC CET was last reviewed in...

KAMPALA, June 15 (Xinhua) -- Bridging over a swamp fully covered with green weeds, the 1,450-meter-long Nambigirwa bridge in southern Uganda is one of the longest bridges in East Africa. The bridge is part of the Chinese company-built Kampala-Entebbe expressway that links the Ugandan capital Kampala and the country's main gateway Entebbe International Airport. The whole expressway project consists of a four-lane dual carriageway with the length of 49.56-kilometers, bridges, major interchanges, underpasses and toll plazas. The construction of the project started in 2012. China Communications Construction Company Limited (CCCC), the constructor, handed over a 4.1-kilometer-long reconstruction section on Nov. 12, 2017 and a 37.21-kilometer-long toll section on May 18, 2018. Currently, the expressway is capable of being open to traffic and is in trial operation. Funded by the concessional loan from China, the expressway is expected to alleviate problems in terms of travel time and comfort, and to enable people to do business more efficiently, according to Edward Katumba-Wamala, Ugandan Minister of State for Works. Over the years, travelers passing through the Entebbe airport have increased hugely, and the number of the travelers is likely to increase with time, Wamala told Xinhua. On the other hand, the traffic volume in Uganda has been increasing over the years and roads that were made for the traffic of the 1970s can no longer accommodate the traffic of today, he said. One of the pains people are facing when travelling to and from the airport is that at times they would miss...

Enterprise Singapore (ESG) opened a centre in Kenya yesterday - its third in Africa - to help Singapore companies enter the region and boost trade and investment between both markets. The centre in the capital Nairobi will serve as a regional hub for East Africa and complement ESG's outlets in Johannesburg, South Africa, and Accra, Ghana. ESG assistant chief executive Yew Sung Pei said: "Today, over 60 Singapore companies operate in Africa across more than 50 countries. Interest from Singapore companies is growing. "Our (Nairobi) office will identify opportunities for Singapore companies, broaden our networks and strengthen the Singapore brand in the fast-growing region." ESG has identified several growth sectors in East Africa where Singapore firms can contribute, including fintech, e-commerce, logistics, light manufacturing and urban solutions and energy. The official opening coincided with a state visit to Kenya and Rwanda by Deputy Prime Minister Tharman Shanmugaratnam, who is also Coordinating Minister for Economic and Social Policies, and Dr Koh Poh Koon, Senior Minister of State for Trade and Industry. The delegation is being accompanied by 20 Singapore firms on a business mission organised by ESG and the Singapore Business Federation. East Africa is the fastest-growing region in the continent and accounts for 22 per cent of Sub-Saharan Africa's total gross domestic product. It grew 5.9 per cent last year to $467.6 billion. The region is home to some of the fastest-growing economies in Africa, including Ethiopia, Kenya, Rwanda, Tanzania and Uganda. Singapore's economic ties with the region have been...