While the Kenyan portion of the new Standard Gauge Railway (SGR) is in part already under construction, the Ugandan portion of the project between the Kenya, Uganda, Rwanda, and South Sudan section will only reach up to the Ugandan border from where separate work contracts and funding will be needed to cross the “Pearl of Africa.” Information received over the Easter weekend speaks of Uganda President Museveni himself witnessing the signing of US$3.2 billion deal with the China Harbour Engineering Company, which will be handling the engineering and procurement side of the project. The main line of the new railroad will cross Uganda and link the border with Kampala. From there, the line is expected to move on to the border with Rwanda, while the dormant line from Kampala to Kasese will also be upgraded. In addition, a branch line will go north to connect the South Sudanese border town of Nimule, from where the section to Juba and beyond then has to be constructed under separate contracts. Questions have already been asked about the route to the Nimule border point, as the Rift Valley Railways operated a narrow gauge line which already extends to Gulu, only a short distance from the South Sudanese border, and with special reference being made to the planned LAPSSET railway. This new SGR line will connect the port of Lamu with both Ethiopia and South Sudan and will no doubt compete for cargo volumes with the branch line from Uganda to South Sudan. Only...

Regional integration optimism as TradeMark Africa projects spur regional trade volumes Historically, exporting finished products and importing raw materials has always been a terrible hustle for local manufactures which import raw materials and export finished products. The whole process includes the preparation and submission of numerous documents to different authorities to comply with import, export and transit regulatory requirements on either side of the borders. These endless requirements, together with their attendant costs in terms of time and resources, have always been big hurdle for private sector players. However thanks to the various projects including the Electronic Single Window (ESW) currently being implemented by TradeMark Africa (TMA), manufacturers can simultaneously submit the required trade information including customs declarations; applications for import and export permits; certificates of origin; and trading invoices, through a single online portal/window. This has resulted into a 30% reduction in transaction costs and time associated with processing documentation for selected imports and exports at key trade regulatory agencies in Uganda. But the ESW is only one of the successful projects that have had a tremendous impact on trade in the EAC. Others, such as the One Border Post, have meant a reduction in clearance time through the Uganda Revenue Authority ASYCUDA World system, which has been slashed by 30 hours. The average time to clear goods at Mombasa port and transport them to Kampala has also come down to just four days, while the number of customs declarations has gone down by 90% leading to an increase...

Local manufacturers face the unwelcome decision to either slash prices of their products or adopt vigorous marketing strategies to keep pace with the growing competition that is dominated by more affordable alternatives from regional companies. The latter alternative in itself is costly as it means having to spend big on marketing. Mount Meru Soyco Ltd (MMSL), Rwanda's only producer of edible oil, has been forced to slash prices of its products by Rwf200 to survive on a local market that's flooded with more affordable imported cooking oil. "We are operating at a loss, we have cut product prices just to maintain a market presence but we know it's not sustainable; cheap imports are hurting us," said Mayur Shrotriya, the firm's head of sales and distribution. MMSL's flag product, Star Goldy cooking oil, is a 50/50 mixture of palm and soya. A twenty-litre jerry can sells for Rwf22,300 on the market, a little more costly than alternatives from the region, such as Bidco and Mukwano, that go for Rwf21,900. Despite having a superior product, clients tend to go for the cheaper option, leading to a drop in demand for Star Goldy. The manufacturer was then forced to slash prices to attract clients. At Quartier Mateus, Kigali's central trading hub, wholesalers said price plays a major role, and clients will always go for the cheaper option. "One can't complain about prices. It's a global phenomenon. Clients and dealers are attracted to the cheaper options," a wholesaler, only identified as Charles, said. MMSL...

Perhaps no single organisation has made such an effective mark on streamlining East African Community (EAC) cross-border trade than TradeMark Africa (TMA). In its annual report for 2013-2014, TMA explains their success Investments in trade infrastructure as well as the dismantling of bureaucratic and procedural barriers to economic integration, is positioning the EAC region as the destination of choice for doing some business. At the centre of all this improvement is TMA who have regional offices in all five EAC countries with Nairobi hosting its headquarters. The report is titled ‘Partnering for Prosperity in East Africa’ and TMA says this continued partnership with the East African governments has resulted in great progress being made. Introduction of the One Stop Border Posts (OSBP) systen across the region has increased physical access to markets for both formal and informal traders. Pilot operations at the Kobero/Kabanga between Tanzania and Burundi borders already indicates a two-day reduction in transit times at Kabanga for cargo trucks, as well as reduction in tedious formalities for traders. Previously excessive paperwork at the border posts caused costly delays which in turn kept the costs of doing business consistently high. Frank Matsaert, the TMA Chief Executive Officer highlighted some key successes. There has been a reduction of average time to clear goods at Mombasa port and transport them to Kampala to four days. The number of customs declarations have been slashed by 90% leading to an increase in trade volumes. For example, fuel imports into Uganda have increased from...

Kenya and Tanzania are caught in a head-to-head race to become the preferred regional transport hub amid massive expansion projects in sea ports, connecting railway and road networks. Tanzania on Monday said it plans to spend Sh1.3 trillion ($14.2 billion) to construct a new rail network in the next five years, financed with commercial loans as the country aims to become a regional transport hub. Tanzania, like its neighbour Kenya, wants to capitalise on a long coastline and upgrade existing rickety railways and roads to serve growing economies in the land-locked heart of Africa. Oil and gas discoveries in Kenya, Uganda and Tanzania have turned the East African region into an exploration hotspot, but transport infrastructure in those countries has suffered from decades of under-investment. “This will be the single biggest project ever to be implemented by the Tanzanian government since our country’s independence,” Reuters quoted Transport Minister Samuel Sitta as having said in a statement seen on Monday, referring to the year 1961. The projects include constructing a 2,561 km standard gauge railway connecting the port at the commercial capital of Dar es Salaam to Tanzania’s land-locked neighbours, Rwanda and Burundi at a cost of $7.6 billion (Sh700 billion), Mr Sitta said. Two additional lines, to be built at a combined cost of $6.6 billion (Sh608 billion), would connect Dar es Salaam to the coal, iron ore and soda ash mining areas in the south and northern parts of the country, he said. Tanzania targets to increase the capacity...

In late February, the United States signed a trade deal with the East African Community (EAC), the bloc of five countries around Africa’s Great Lakes. In an email interview, Nora Carina Dihel, a senior trade economist at the World Bank, discussed U.S. trade with the EAC and the rest of Africa. WPR: What is covered by the recent U.S. trade deal with the EAC, and what impact is it likely to have on the economies of the EAC? Nora Carina Dihel: The new cooperation agreement signed by trade ministers from the five EAC countries—Burundi, Kenya, Rwanda, Tanzania and Uganda—and the U.S. Trade Representative aims at streamlining customs procedures and providing technical assistance to promote trade by facilitating initiatives on sanitary and phytosanitary measures, which cover food safety and animal and plant health, as well as technical barriers to trade. Specifically, the agreement seeks to reduce red tape at the borders, decrease customs wait times and enhance the capacity of EAC countries to apply common international standards on various products, including agricultural exports. By building capacity in these three key areas, the agreement is expected to deepen U.S.-EAC trade and investment ties and increase the EAC countries’ capacity to adopt international standards by helping them implement World Trade Organization agreements. The deal has the potential to boost EAC initiatives to reduce trade costs and accelerate regional integration by supporting EAC countries in their efforts to eliminate non-tariff barriers that fragment the regional market and develop appropriate standards at the regional level....

TradeMark Africa has announced that it will inject about $90m (about Shs 261bn) to promote infrastructural development projects in the region. The announcement came after some data showed that trade in the region had picked up partly as a result of the ease with which cargo is cleared throughout the different corridors, an initiative that TradeMark Africa was active in facilitating. “This year we are focusing [to invest] around the same about $85 to $90m. The results presented in this annual report point to an ever-improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa,” said Frank Matsaert, the CEO TradeMark Africa. He continued: “TMA is playing an important role as a catalyst in mobilizing around $600 million at Dar es Salaam port to improve its performance through better infrastructure and port operations. Our partnership at both Mombasa and Dar es Salaam ports involves an innovative approach, mixing hardware and software solutions.” Matsaert was speaking at the launch of their annual report 2013/2014 at Sheraton hotel in Kampala on Tuesday. He said TMA had made strides to improve informal trade across borders. He added that since traders do not usually use formal systems and structures for their transactions, it was difficult for regional trade policy initiatives to have any significant impact on their lives. TMA notes that the continued support to the national bureau of standards in achieving regional harmonisation of standards has seen 108 standards harmonized to date, 41 of which were...

IN what sounds to be something akin the European Marshall Plan after economies of the countries in Europe went on their knees at the end of World War II, Eastern and Central African leaders last week convened in Dar es Salaam for a similar initiative. The Marshall Plan required a lessening of interstate barriers, a dropping of many petty regulations constraining business and encouraged an increase in productivity, as well as adoption of modern business procedures. In a similar style regional leaders last week pledged to use the Central Transport Corridor to unlock the region's social and economic potential. The leaders, among other things, flagged off four modern cargo trains with consignments destined to Burundi, eastern Demoratic Republic of Congo (DRC), Rwanda and Uganda. They rightly observed that the launch of the corridor would herald the beginning of the new way of doing things after a long period that was dominated with wasteful hauling of millions of tonnes of cargo along the over-stretched roads. The leaders were out to lure investors for a massive plan to upgrade infrastructure in the region that has made big hydrocarbon discoveries. The East African Community (EAC) member states - Tanzania, Kenya, Uganda, Rwanda and Burundi, whose combined gross domestic product (GDP) is $110.3 billion (about 204tri/-), are working to package joint infrastructure plans aimed at boosting trade and speeding up economic integration in the region. Oil and gas discoveries in Kenya, Uganda and Tanzania have turned the region into a globally reputed exploration hotspot....

The Connected East Africa 2015 Summit is an annual event chaired by the Kenya ICT Authority in consultation with key ICT industry players and key government decision makers, and 2015 marks the 7th year of such a summit. It is taking place at the Leisure Lodge Resort in Kwale Sub county, off the coast of Mombasa. The regional conference aims to address issues of building an integrated ICT infrastructure and policies in the region. The East Africa countries have formed an inter-ministerial committee which looks into breaking regional barriers in harmonization of ICT. This committee will report their progress at the Summit. The Summit also aims to establish a platform for collaboration, capacity building and knowledge sharing between government and the ICT sector with a view of linking and hastening implementation of government IT projects to world-class standards. Objectives of this 7th Edition summit will look to: To address gaps in ICT integration and shared infrastructure among the East African Member states To speed-up harmonization of ICT regulation across the region To build support on ongoing ICT integrated infrastructure projects across the East African region. To provide a platform for meaningful networking that will result in fruitful relationships that contribute to the economic development of the East African region. Set to feature a number of top speakers and an experienced panel from East Africa states and beyond to discuss issues from the objectives of the summit. The Summit is also set to feature an Award Ceremony that celebrates innovation in...

NAMIBIA'S continued dependence on imports has put pressure on the country's foreign reserves causing a N$1,8 billion balance of payment deficit for the 2014/15 financial year. Presenting the 2015/16 national budget yesterday in parliament, finance minister Calle Schlettwein said the deficit was caused by strong inflows of imports over exports. This, he explained, further put pressure on the stock of foreign reserves, although they remain sufficient to support the currency peg. He also said the deficit comes after the country enjoyed a surplus of N$598 million in 2013/14. In the monetary policy for January that was presented on 18 February this year, the Bank of Namibia said the country's reserve stocks had declined on a yearly basis by 13,7% to N$16 billion. “This was mainly due to the high import bill. Despite this pressure, the international reserves remain adequate to maintain the one-to-one link of the Namibian dollar to the rand,” the statement said. Schlettwein said Namibia should optimise trading opportunities by improving significantly on her productive capacity and avoid the trap of becoming a captive market for those countries with an ability to trade in finished goods. He also said Namibia believes in the relevance of the Southern African Customs Union (SACU) as an engine for regional integration and industrialisation. About 30% of Namibia's budget is funded through SACU earnings, with the country raking in N$7,9 billion during 2011/12; about N$12 billion during 2013/14, while for 2014/15, the earnings were estimated to be N$18,12 billion. The SACU revenue sharing...