The East African Community member countries have been asked on to increase intra-regional trade so as to support the industrialisation agenda of the region. According to statistics from the World Bank, Africa’s share of global trade was at 2% three years ago and has gone down further by a percentage point. This means that the rest of Africa is growing its share in global market while Africa is not. This is backed by reports that the amount of trade Africa does within itself compared to other regions is low at 11%. Ali Mufuriki, a businessman and board chairman of Trademark East Africa, said Europe is at 60%, Asia has 60% and yet these do not have a free trade area. He made the remarks during the opening of the East Africa Trade and Development Forum recently. The event was organised by the trade ministry with support from Trademark East Africa. The two-day forum was aimed at creating a platform for partners and stakeholders in trade development to review, reflect and exchange ideas on the progress of Trademark East Africa and its partners. Mufuruki said for the region to achieve its industrialisation potential, there is need for member states to focus on the production of high value goods. People should be empowered with skills that will enable them work, own and drive the industries, which will in turn create jobs. He noted that EAC regional trade may not grow if cross border trade is one sided. Mufuruki cited the example of...

The UK should turn to Saudi Arabia for new trade and investment opportunities after Brexit and not a backward-looking Commonwealth, Saudi ministers said on the second day of a controversial visit to the UK by the country’s crown prince. As the UK and Saudi Arabia set out a broad ambition to strike nearly $100m of commercial deals over the next decade, the powerful Saudi energy minister, Kalid A al-Falih, told a business conference in London: “I would like to think that Saudis can be the pivotal link to a new partnership sphere for the UK that is perhaps not positioned in the past, as is the Commonwealth, but forward-looking, looking at the demographics of the Middle East, Africa, and Islamic world to which Saudi Arabia is central.” The UK should regard the kingdom as the dominant force in the Gulf and “your gateway to Africa, one of the next frontiers”, he said. Al-Falih’s pitch, emphasising that both the UK and Saudi Arabia were at “inflection points”, underlines the extent to which the Saudis sense the UK will need to step up its search for new trade partners after Brexit to replace lost EU markets. UK and Saudi entities on Thursday signed more than 18 economic agreements worth more than £1.5bn, covering education, pharmaceuticals and banking. Before heading to Chequers for a private dinner with the prime minister, the 32-year-old crown prince, Mohammed bin Salman, held a round of meetings mainly at the Saudi embassy in Mayfair. Seen as the dominant...

Amidst big talk on how to raise over US$78 billion for regional infrastructure projects, Tanzania’s President John Pombe Magufuli Magufuli had tough questions for the East African Community Council of Ministers. “I am sorry I am harsh but why did the Secretary-General not tell us why they only implemented 14 out of the 200 projects earmarked in 2014?” Magufuli asked at the recently concluded 19th ordinary summit of the East African Community Heads of State at Speke Resort Munyonyo, a Kampala suburb. His question also echoed concerns the East African Community Integration process has been too slow. Political will from frontline Presidents to implement initiatives of the integration process; the appetite to spend on big infrastructure projects to connect the region and ease the cost of doing business and how to fund the planned projects appeared the central issues at the meeting. This year’s retreat was the 4th on Infrastructure Development and Financing and it aimed at reviewing progress on the implementation of the priority projects agreed upon in the 3rd Retreat held in November 2014. It also served as the 1st Retreat on Health Sector Financing and Development. Apart from current EAC Chairman and host President Museveni, Kenya’s Uhuru Kenyatta, South Sudan’s Salva Kiir, Magufuli, First Vice President of the Republic of Burundi, Gaston Sindimwo attended the meeting. Rwanda’s Minister of Infrastructure, James Musoni, represented President Paul Kagame. The meeting was organized under the theme ‘Enhancing Socio-Economic Development for Deeper Integration of the Community.’ The Presidents plan to complete...

Three criteria often cited as being key criteria in the pursuit of sustainable economic growth and social development include adequate infrastructure, macroeconomic stability and an articulate and achievable development strategy. Despite the equal importance of the three criteria noted, our focus today shall be infrastructure. The importance of infrastructure development to achieving economic posterity is a topic well canvassed. Indeed, it is commonly noted that infrastructure development is a foundation on which to build an economy. Efficient infrastructure supports economic growth, improves the quality of life, and is necessary for national security. Zeroing in to quality of life, numerous studies point at there being a direct correlation between investment in public infrastructure and quality of life. These include investments in transportation, power and communication facilities and social infrastructures to name a few. In acknowledgement of the necessity of quality infrastructure to the achievement of economic advancement, the East African region has pointed out infrastructure development as a key tool for regional development. As a step toward the achievement of this, East African Community (EAC) leaders, in the recently concluded retreat on infrastructure development and health financing and development, pledged to invest $78 billion (Sh7.9 trillion) on infrastructure development over the next ten years. This will be utilised to fund over 200 capital intensive projects, such as the Standard Gauge Railway, renewable energy and various oil and gas projects in the region. As evident from the price tag of $78 billion, infrastructure projects are highly capital intensive. Often times, these are financed...

‘Potential’ is a word that crops up pretty frequently when discussing developments in East Africa’s ports sector. Certainly there are a number of significant projects moving ahead to provide deeper water, expanded facilities and entirely new ports. But for this region, ‘potential’ stretches far beyond national borders. In the tussle to serve landlocked countries, a port’s success is as much about its hinterland links and IT infrastructure as it is about straightforward quays and cranes. As such, there is significant investment in rail, bridges and inland terminals and dry ports. “There is a lot of investment in Africa, particularly from the Chinese. I am sure the potential is there – but how many years have we been saying Africa has potential?” says Dean Davison of London-based Clipper Maritime. “Certain ports benefit from their geographical location but they can’t control other factors such as national economic developments, local population and levels of demand.” Sultan Ahmed Bin Sulayem, DP World’s chief executive, recently said: “Africa’s trade potential is enormous, evident in the 400% increase in trade between Africa and the rest of the world in the last two decades. Infrastructure development is more important than ever to maintain and increase this growth momentum.” Public-private partnerships (PPP) are the route to progress in Africa, he said – they are an effective model to fund projects, especially those on infrastructure, “while robust government policy and transparency are essential to its success”. In all of the countries where DP World has operations in Africa, it...

In a historic first, East African Governors of the African Development Bank met with the President Akinwumi Adesina and Executives to discuss economic challenges, opportunities and successes in the continent’s fast-growing powerhouse region East African Governors of the African Development Bank (AfDB.org) met with the President Akinwumi Adesina and Executives to discuss economic challenges, opportunities and successes in the continent’s fast-growing powerhouse region. On the agenda: closing the $170 billion infrastructure gap across the continent, keeping pace with the region’s booming youth population, creating jobs and safeguarding peace and security. President Adesina assured the gathering that the Bank intends to make the strategic regional consultations an annual event to allow for more open dialogue, constructive feedback and the acceleration of development reforms. “We have 12 years left to the SDGs. It is an alarm bell because if Africa does not achieve the SDGs, the world won’t achieve them. The African Development Bank is accelerating development across Africa through the High 5s,” he stressed. “We are leveraging more resources for Africa’s development and the impact of our interventions is being felt.” The Governors – chiefly Finance Ministers and Ministers of Economic Planning representing Burundi, Comoros, Djibouti, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Sudan and Tanzania – shared these sentiments. “The High 5s are what Africa needs now,” said Henry Rotich, Kenyan Minister of Finance. “The Bank has financed one of our key interventions, the Last Mile Project, thanks to which 70 percent of Kenyans now have access to power in rural...

Concerns about the environmental impact of urban freight transport are growing along with population density and urban congestion. Thankfully, awareness of the need for sustainable urban development is also on the rise and the coordination of traffic and logistics is receiving greater attention. Yet the need is urgent for more efficient and effective freight transport systems that not only address costs but also tackle environmental issues such as noise, air pollution, vibration and visual intrusion. This is especially so in Nairobi, Mombasa, Kisumu, Thika and Nakuru. These challenges can be addressed using the concept of City Logistics. City Logistics can be defined as “the process for totally optimising the logistics and transport activities by private companies with the support of advanced information systems in urban areas considering the traffic environment, its congestion, safety and energy savings within the framework of a market economy.” It’s time to create real visions for logistics in our cities. We can start by setting targets for what can be achieved by applying this forward-looking concept in capital city first, then the rest follow. City Logistics presents us with three targets: mobility, sustainability and livability. Mobility is the central component for ensuring smooth and reliable traffic flow including freight traffic. Sustainability is necessary for making cities more environmentally friendly while livability is also an essential element and one that has garnered growing importance most recently as the number of elderly residents in cities is on the rise. Urban freight transport involves shippers, freight carriers, administrators and...

The UK’s Department of International Trade (DIT) is pledging funding for infrastructure development in Africa, including £4-billion in South Africa, £1-billion in Kenya and £750-million in Nigeria, through export credit agency, UK Export Finance (Ukef). These investments are to help aid and address “a chronic infrastructure backlog” that the World Bank estimates to be about $93-billion a year in the sub-Saharan Africa region – with 319-million people in the region not having access to reliable drinking water, 620-million not having access to electricity, and only 34% of people having adequate road access. Although Africa is the second-fastest urbanising region in the world behind Asia, with estimates showing that more than half of its projected 2.2-billion people will live in cities in the next 30 years, the continent still struggles with a lack of infrastructure, states DIT. UK Africa trade commissioner Emma Wade-Smith says Africa’s infrastructure challenges not only inhibit its ability to trade with the rest of the world, but are also a significant obstacle to intra-African trade – both are critical to the continent’s economic growth agenda. AFRICA INSIGHT Wade-Smith urges that there is enormous scope for Africa to boost its exports to the UK and other parts of the world if it can address its infrastructure backlog. “Research shows that, in the long term, trade is better than aid and, without adequate infrastructure, it will be difficult for Africa to boost its ability to buy and sell globally.” DIT in Africa has been instrumental in establishing the Africa...

The United Kingdom’s Department for International Trade (DIT) has pledged billions of Pounds Sterling in lending and guarantees to African countries to help them address a chronic infrastructure backlog. “Africa’s infrastructure challenges not only inhibit its ability to trade with the rest of the world but are also a significant obstacle to intra-African trade, both of which are critical to the continent’s economic growth agenda,” said Emma Wade-Smith, the UK’s Trade Commissioner for Africa. “Finance is a critical component of infrastructure development and the combined risk appetite of £21.4bn we have across the region to facilitate projects is a clear sign of the UK’s belief in Africa’s long-term economic growth trajectory.” DIT in Africa has a presence in 21 countries across the continent, can enable the provision of these facilities through UK Export Finance (UKEF), the United Kingdom’s export credit agency, a part of DIT. Loans can be extended in the local currencies of 9 African countries for projects ranging from transportation, mining and general construction, though they must include at least 20% UK content and meet all other lending criteria. For example, UKEF has the ability to support infrastructure projects in South Africa (up to £4bn), Kenya (up to £1bn) and Nigeria (up to £750m). “Of course, projects must still meet all the lending requirements before we’re able to disburse any funding. But in terms of capacity, we have the ability to provide significant funding for infrastructure projects across Africa,” Wade-Smith added. Although Africa is the second-fastest urbanizing region...

The East African Community has embarked on a landmark work-load analysis and job evaluation exercise that could substantially alter the organizational structure of the Community. The 15-day exercise which is being conducted by experts from the six EAC partner States has been convened in line with the directive of the 35th Meeting of the Council of Ministers which was held on April 4, 2017 in Arusha, Tanzania which approved the terms of reference for work-load analysis and job evaluation. The experts are drawn from the Public Service Commissions as well Ministries of Public Service in the partner States. Speaking at the opening of the exercise, EAC Secretary General, Liberat Mfumukeko said that one of the expected outcomes of the exercise would be a new organizational structure for the Community. Mfumukeko said that the desired structure should be flexible and decentralized to allow speedy decision-making at all levels of the Community using fewer resources. “To explain the relationship between EAC and the Partner States, I wish to point out that the role of the Secretariat is to coordinate and not implement projects and programmes,” he added. The scope of the meeting which has been convened by the EAC Ad Hoc Service Commission includes: Undertaking a comprehensive analysis of all positions in the Organs and Institutions; Undertaking a comprehensive analysis of the proposed structures for EAC Organs and Institutions; Proposing a new Grading Structure for the Community, and; Reviewing and updating Job Descriptions for staff in the proposed structures. The meeting will...