Construction is now underway on the second phase of the 1,219-kilometre Tanzania standard gauge railway, which seeks to connect Dar es Salaam to the port city of Mwanza on the shores of Lake Victoria in northern Tanzania. Phase two of the standard gauge railway project will involve construction of a 426-km line from Morogoro to Makutuporo region in Dodoma in a move that is expected to gift Tanzania with its first high-speed railway. Work is proceeding on the first phase of the project, which involves replacement of the existing century-old Dar es Salaam to Morogoro narrow gauge line with a new standard-gauge railway line. The 205km-railway line whose groundbreaking ceremony was held in May 2017 is expected to be completed by November next year. A Sh125 billion (US$1.2 billion) contract to build the segment was awarded to Turkish construction firm Yapi Merkezi and Portugal’s Mota-Engil Africa in February last year. Phase one of the Tanzania standard gauge railway is designed for passenger trains with speeds of 160km/h and freight trains of a top speed of 120km/h. The segment will have six stations including a dry port at Ruvu. “The standard gauge railway and a dry port in Dodoma will boost the development of central regions,” President John Magufuli said on Thursday shortly before laying the foundation stone for the project in Dodoma. President Magufuli added that after completion of the Dar es Salaam to Dodoma railway line, the government will extend the standard gauge railway to Mwanza covering 1,219 kilometres....

Tanzanian President John Magufuli has laid the foundation stone for the second construction phase of the standard gauge railway (SGR) from Morogoro region to Makutupora in Dodoma region covering 426 kilometers. Speaking in the capital Dodoma shortly before he had laid the foundation stone on Wednesday, Magufuli said upon completion the SGR will help create 30,000 direct employment opportunities and some 60,000 indirect jobs. “The SGR and a dry port in Dodoma will boost the development of central regions,” said Magufuli, adding that after construction of the Dar es Salaam-Dodoma railway line, the government will extend the SGR line to Mwanza covering 1,219 kms. The total cost from Dar es Salaam to Mwanza is estimated at 7 billion U.S. dollars. The 522-km-long Dar-Dodoma line is being constructed by Turkish firms. The SGR will also help ease the flow of goods and people in the neighboring landlocked countries of Uganda, Zambia, the Democratic Republic of the Congo, Burundi and Rwanda. For his part, Prime Minister Kassim Majaliwa urged all Tanzanians to support the president in his efforts aimed at making the east African nation an industrial economy. “The fifth phase government is determined to improve people’s lives, thus the need for the public to support the initiatives rather than opposing everything the government is doing,” he said. Makame Mbarawa, the Minister for Works, Transport and Communication, said upon completion, the railway line will be able to transport 10,000 tonnes of cargo at one time. “We have lost customers at the Dar...

Arusha — Fears of shaky financial status of the East African Community (EAC) were allayed on Tuesday evening when a Kenyan cabinet secretary declared it cannot run bankrupt. "The Community cannot run bankrupt due to delayed contributions by the member states", the newly appointed cabinet secretary for EAC and Northern Corridor Peter Munya affirmed. He told the East African Legislative Assembly (Eala) that the financial woes facing the regional organization were being addressed by relevant authorities. "There are challenges with some countries delaying payments but we have talked on how to tackle this", he said as the House debated the 'State of EAC' speech by current Chair President Museveni of Uganda recently. However, he said the long term solution to the crisis lay with the often touted sustainable financing mechanism which was also discussed during the recent Heads of State Summit in Kampala. He noted discussions were on advanced stage on how to sustainably raise funds through slapping tax on imports, slicing the GDP "or a combination of these". According to him, the Community was also weighing on the current system where each of the six partner states made equal contribution to its annual budget and equity option. Mr. Munya's remarks came only weeks after the Arusha-based secretariat announced that only 40 per cent of the 2017/2018 expenditure budget by the partner states had been remitted to Arusha. The EAC and its organs and institutions had budgeted to spend a total of $ 110 million during the 2017/2018 financial year...

Dar es Salaam — Tanzania Private Sector Foundation (TPSF) has highlighted 8 achievements it recorded during the implementation of a yearlong East Africa Trade Hub project in facilitation towards compliance with the region common market protocol. Among other achievements, the project succeeded to re-open rice markets for small holder farmers in Rwanda and Uganda, this was after eliminating the 75 per cent common external tariffs. TPSF Director of Policy Mr. Gilead Teri briefed journalists yesterday that, the measure was imposed after allegation that imports from Tanzania were found to been mixed with other rice from Asian countries. "Rwanda has eliminated a $300 as tax on importing rice from Tanzania that limited exports," he noted. He added that, farmers are currently export to Rwanda and other EAC countries freely, thanks to dialogues made during the project. Another thing that TPSF cerebrates is the directive statement by the President John Magufuli during the Tanzania National Business Council (TNBC) dialogue when he ordered a port of Dar es Salaam to operate within 24 hours a day. Mr Teri said that, the move fasten track on clearing of goods from the port. Again, the hub has pushed for the elimination of 18 per cent Value Added Tax (VAT) on ancillary services in the clearance of goods which was a hefty burden for traders and business owners. "Not only the consequences faced by the business community but the Dar port also saw a significant decrease in consignments as traders and business owners opted for alternative...

THE envisaged standard gauge railway line and the dry port in Dodoma will boost the development of the central regions, Dodoma Regional Commissioner Dr Binilith Mahenge has said. As President John Magufuli plans to lay a foundation stone for the construction of a 336- km long line from Morogoro to Makutupora in Dodoma this Wednesday, Tanzania Ports Authority (TPA) says works on the mega dry port in the country's capital was gathering tempo. "This is the initial stage of the government- funded SGR line. After the Dar es Salaam- Dodoma line, the government will extend the SGR line to Mwanza some 1,219km and other parts," he said. The total cost from Dar es Salaam to Mwanza is estimated at 15trn/-. The 522-km long Dar- Dodoma line is implemented by the Turkish based firms. The state owned Reli Assets Holding Company (Rahco) said at least 7trn/- would be spent on constructing the country's first speed railway. The dry port in Dodoma is planned for Ihumwa, some 20 km from Dodoma's downtown enroute to Dar es Salaam. The area is further expected to host the ceremony this week when President John Magufuli will cut the ribbon to okay the construction of the SGR line that the government and economists say will open up new doors for development in the central regions. "This line is crucial for the economic development of these regions. It will also help ease the flow of goods and people in the neighbouring countries - Kenya, Uganda, Zambia, Dr...

Rwandan importers and exporters will no longer have to travel to Dar es Salaam port, Tanzania to clear their shipments, thanks to the new Tanzania Ports Authority (TPA) liaison office, which opened last week in Kigali. The liaison office is expected to operate as a one stop centre for traders to pay and clear their goods from Kigali without having to travel to Dar es Salaam. According to traders, the initiative by TPA will reduce the cost of doing business along the central corridor. Fred Seka, the Association of Clearing and Freight Forwarders Rwanda head, said the new office will help enhance efficiency and competitiveness. His views were echoed by Bheki Mthembu, the Cimerwa chief executive officer, who said the new office gives traders a choice in terms of efficiency and pricing. “It means that, as traders, we have a choice to make based on who provides the best quality service in terms of efficiency and pricing,” Mthembu said adding that stakeholders should also address the other challenges facing traders along the central corridor. Tanzania’s port of Dar es Salaam is by far the most important port for Rwanda, accounting for over 80 per cent of the country’s international maritime trade. More than 90 per cent of other exports (apart from tea and coffee) go through Dar es Salaam, according to figures from the Ministry of Trade and Industry. And, according to Prof. Makame Mbarwa, Tanzania’s Minister for Works, Transport and Communications, Rwanda is the port’s third largest customer using...

When Djibouti makes international headlines, it is usually in connection with the many superpowers that have built military bases on its shore. France, the United States, China, Italy and Japan all have a major military presence in the tiny East African nation. But for Djibouti's government, there is another major power that is even more important: Ethiopia. It is difficult to overstate just how dependent Djibouti's economy is on its much larger neighbour. There is almost no fresh water in Djibouti, so it must import water from Ethiopia. Most of its electricity comes from Ethiopia too. Little grows in Djibouti's arid desert landscape, so fresh fruits, vegetables and grains are trucked across the Ethiopian border every day. Economically, by far Djibouti's most valuable assets are its ports. But these too are almost entirely reliant on a healthy trading relationship with Ethiopia, which, being landlocked, requires an outlet to the sea. Ethiopia is an anchor in the Horn of Africa - any disruption will have knock-on effects More than a century ago, when the old Port of Djibouti was built by the French colonisers, it was connected with a railway that linked Addis Ababa to Djibouti City. Given the size differences of the two countries - today Ethiopia's population is more than 100 million, while Djibouti's is less than 1 million - the port was never about trade with Djibouti, but trade with Ethiopia. It is no coincidence that today, the new Doraleh Container Terminal is the end of the line...

President Trump has reportedly decided to impose new tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum. This comes after the Commerce Department conducted two lengthy — but mostly closed-door — investigations under Section 232 of the Trade Expansion Act of 1962. Under this law, Commerce Secretary Wilbur Ross concluded that imports of steel and aluminum threaten America’s national security and recommended that Trump impose comprehensive new import restrictions. Imposing trade restrictions to protect national security would be an unprecedented shift in U.S. policy. While there have been many historical episodes of the U.S. steel industry demanding — and being granted — import protection of some form, what is taking place this time is truly different. This kind of protection would have tremendous economic and institutional repercussions well beyond the two cases currently on Trump’s desk. Here are five reasons for that: 1) This cuts a significant amount of imports. The two investigations cover about 2 percent of total U.S. goods imports in 2017: Imports of steel were $29 billion and aluminum $17 billion. These two are the largest of all trade investigations the Trump administration has conducted — each involves much more trade than the combined imports hit by Trump’s tariffs on solar panels and washing machines, announced in January. And the proposed cuts in imports are sizable. Trump’s tariffs would go further than Ross’s recommendations, which aimed to slash steel imports by 37 percent and aluminum by 13 percent. New tariffs would probably...

The African Development Bank (AfDB) has said it is in talks with its Governors to unravel strategies that are effective and efficient in closing Africa’s $170 billion infrastructure investment gap. The bank also canvassed for support among its East and North African Governors on the need for urgent measures to match the continent’s growing population and youth unemployment, which it likened to a “ticking time bomb.” At a two-day consultation at the bank’s headquarters in Abidjan, CÕte d’Ivoire, they however, described the continent’s growing young population as a potential growth engine for the world, when harnessed. AfDB President, Akinwumi Adesina, said the good news is that the solution is within our reach and will require investments. Already, to bridge the investment gap, ensure inclusive growth, and create employment for the continent’s population, the meeting endorsed the African Development Bank-led African Investment Forum and described it as a timely opportunity to catalyse investments into projects and attract social impact financing to Africa. Tanzania’s Minister for Finance and Planning, Isdor Mpango, called for closer involvement of the private sector in financing development on the continent. “The African Development Bank is well positioned to advise and assist governments and the private sector to come up with bankable projects,” Mpango said, calling for “direct resources to provide budget support and investment opportunities.” Through the AIF scheduled for November 7 to 9, 2018, in Johannesburg, South Africa, the region’s development bank and its partners intend to showcase bankable projects, attract financing, and provide platforms for...

East African Development Bank (EADB) has secured a Sh1.5 billion ($15 million) loan from the Arab Bank for Economic Development in Africa (Badea) for onward lending to traders in Kenya and other member countries. The purpose of the credit is to enable EADB finance imports from eligible Arab exporters to particular importers in the East African Community (EAC) countries. EADB – owned by Kenya, Uganda, Tanzania and Rwanda – usually funds regional projects in infrastructure, manufacturing, agribusiness and education sectors. “We have continued to build relations with new lenders and development partners. To this end, the Arab Bank for Economic Development in Africa (Badea) has established a line of credit with the EADB of an amount of $15 million,” said EADB director-general Viviane Yeda in a statement. As at end of 2016, the EAC member states had a stake of 87.3 per cent, with African Development Bank (AfDB) holding most of the remaining shares through its 8.8 per cent shareholding, callable capital, technical assistance and funding lines. The EADB strategic plan for the period 2016 to 2020 follows a period of business growth over the previous plan period 2011 to 2015 and an in-depth review of EADB operations and related operations policies in 2015. In December last year, Global Credit Ratings (GCR) affirmed the long-term and short-term national scale ratings assigned to the regional lender of AA+ (UG), (KE), (TZ), (RW), and accorded it a stable outlook, besides affirming its foreign currency international scale rating of BB+. Source: Business Daily