The plan to upgrade Tanzania’s central corridor got into high gear last week after the African Development Bank (AfDB) committed Sh239 million ($2.6 million) to finance feasibility studies and design. The grant, which was negotiated under the Nepad-Infrastructure Project Preparation Facility, marks a fresh turn in the long-running efforts to lift the status of the transport corridor that runs from the Port of Dar es Salaam to Rwanda and Burundi and the Democratic Republic of Congo. Tonia Kandiero, AfDB’s resident representative for Tanzania, signed a letter of agreement on behalf of the bank, while EAC secretary general Richard Sezibera represented the region. In a statement released on Friday, the officials said the grant will pay consultants undertaking feasibility studies, detailed engineering designs, environmental and social impact assessment. The money will also finance preparation of bidding documents for the rehabilitation of the road sections joining Rusumo to Lusahunga and Nyakanazi to Manyovu via Kasulu in Tanzania; Kayonza to Kigali in Rwanda; and Rumonge to Bujumbura via Rutunga in Burundi. The main focus of the Central Corridor, has been Tanzania’s economy due to the limited amount of goods going in and out of Rwanda, Burundi and the Democratic Republic of the Congo. The upgrading of the Central Corridor is set to boost its appeal among traders from landlocked states since it is shorter a course to Rwanda and Burundi than the Northern Corridor that runs through Kenya and Uganda. An improved Central Corridor would make use of the Dar port attractive to...

The cost of engaging in cross-border trade has spiralled in Kenya to nearly double charges in Tanzania, putting a speed bump on the country’s bid to control East Africa’s logistics business. It costs an average of Sh200,695 ($2,255) for a firm based in Kenya to export a 40-foot container and Sh209, 150 to import same cargo size, the World Bank’s Doing Business 2015 shows. The survey shows that Tanzania, the only other East African state with a seaport, charges just Sh97, 010 ($1,090) to facilitate export of a standard container and Sh143, 735 to import one. “Tanzania has invested in port infrastructure. New cranes, a conveyor belt and anchorage tankers at the port of Dar es Salaam helped reduce berthing and unloading time as well as congestion,” notes the survey released last week. It adds: “The reduction in the time required for port and terminal handling activities benefits not only traders in Tanzania but also those in the landlocked economies of Burundi and Rwanda that use the port.” Kenya has been on an aggressive reforms drive to boost efficiency at its transport corridors and attract landlocked traders to Mombasa Port. Under a recent pact signed with Uganda and Rwanda, Kenya has significantly reduced regulatory barriers and initiated a number of programmes to boost efficiency along the Mombasa-Malaba road. It now takes about five days to clear goods from the port of Mombasa to Malaba with transporters going through only two road blocks and two weighbridges. In 2013, a trip from...

Egypt will host a conference in December to create a free trade zone between the largest economic blocs in East and West Africa which account for 60% of the continent’s trade, according to Minister of Trade and Industry Mounir Fakhry Abdel Nour. Abdel Nour said during a press conference held on Monday that Egypt has taken tough decisions in recent times with respect to economic reforms. The Egyptian government made cuts to energy subsidies during fiscal year (FY) 2014/2015, while simultaneously imposing taxes on incomes above EGP 1m by 5% over three years. Egypt aims to reduce the budget deficit to 10% of GDP by the end of FY 2014/2015, according to Abdel Nour. Abdel Nour also said that the Egyptian government hopes to reduce the trade deficit during the coming phase. The trade deficit reached 22% in July, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). Abdel Nour believes that the coming phase will witness the launch of several projects in the infrastructure sector through private sector partnerships. “The government has worked to support small investors, because supporting them opens new markets in different parts of the world,” said Abdel Nour. Source: Daily News Egypt

TradeMark Africa is working with East African Community member countries to harmonise the standard regulations of the commonly traded goods in the bloc to stimulate business in the region. This is based on a study by East Africa Business Council conducted last year, dubbed: Prioritisation of EAC standards and technical regulations for development, harmonisation, revision or withdrawal. The survey determined that agricultural and manufactured products are the most traded in the bloc. It also identified 93 most traded goods such as tea, cement, iron and steel products, petroleum oils and related items. Edible fats and oils, tobacco and tobacco products, soap and detergents, paper and paperboards, containers, medicaments, beer and other fermented products were also categorised as most traded. A total of 170 specific raw materials used for manufacturing various products in the EAC are also traded the most. Import products from the rest of the world were 44 and the most exported goods to the rest of the world were 68. According to the director of Non-Tariff Barriers (NTBs) and Standards at TradeMark Africa (TMA), Mr José Maciel, standards can cut the cost and time of doing business by huge amounts. “The difference in technical regulations and standards among partner states and lack of EAC technical regulations framework are some of the constraints to intra-EAC trade,” reads the report. The five partner states are now in the process of preparation, approval and adoption of the standards related to these products under national standards bodies in each member country. “Standards...

Tanzania has joined three countries in the East African Community (EAC) in a single tourist visa initiative. The original countries involved in the initiative, which allows visitors to travel to certain countries on one visa, were Kenya, Uganda and Rwanda. Tanzania is newest country to join. Waturi Matu, coordinator at Kenya Tourism Federation, says part of the delay in Tanzania joining the agreement was lack of infrastructure. “What has been lacking has been political goodwill and I think certain countries needed to get themselves prepared for the implementation. Of course it requires internet technology to do that and I think that’s what caused the delay,” said Matu. Matu is excited at the prospects of having a full East African tourism visa which will allow multinational tourism packages, increase business opportunities and increase tourism. “This will ease movement for tourists across the region, it is also going to attract high yield tourists and long stay tourists. Because if you’re visiting three or so countries in East Africa you’ll spend an average of four days minimum in each country,” she added. Tanzania to join EAC single tourist visa Tanzania has made a U-turn and decided to join three other East African countries in implementing the single tourist visa initiative. One of the main challenges that the east African region has been facing, in particular, Tanzania is dealing with poaching and the illegal sale of wild life products. “A multinational and an EAC approach is very useful because some of the times when...

"TANZANIA and China are good all-weather friends," said Chinese Vice- President, Li Yuanchao, during a reception in Beijing recently to commemorate the 50th anniversary of the diplomatic relations between the two countries. Good all-weather friends the two countries indeed are as attested by the long standing friendship and cooperation that have withstood the test of time, thriving on the strong foundations built by the founding fathers of the nations, namely Mwalimu Julius Nyerere and Mao Zedong. The countries reaffirmed their friendship and bilateral relations commitments during President Jakaya Kikwete's six-day state visit to China where the world's second biggest economy pledged more investments and trade with the African country. President Kikwete and his entourage were accorded the warmest of receptions. The trip indeed started on the right footing,as upon arrival at Beijing International Airport, he was escorted in a motorcade to the state guest house located downtown. This made the Tanzanian president the first visiting head of state or government to be driven in motorcade after the practice was abolished in 2004. China had been using motorcades to escort visiting dignitaries since the founding of the People's Republic of China in 1949, only to abandon the tradition ten years ago for various reasons including traffic issues. To many, the break from a decade-old protocol was a clear testimony of how seriously the Chinese government took the Tanzanian president's visit to Beijing. Apart from the motorcade honour, Mr Kikwete was also conferred with a Honorary Professor award by the China Agricultural...

The East African Community should form regional regulatory agencies instead of each country having its own, which adds to trade barriers, according to the African Development Bank. "The complex set of separate organisations existing at present often overlap and capacity would be more effective if it were operating in a less complicated environment," AfDB says in its East Africa Annual Report 2014. The pan-African lender says single agencies would help the bloc to streamline and boost efficiency of cross-border processes by removing non-tariff trade barriers. In an interview last week, Trade Mark East Africa chief executive Frank Matsaert, whose firm is helping in the regional integration process, said the countries must understand the various forms of non-tariff barriers to ease cross-border flow of people and goods. "All member states need to invest in monetary mechanisms that can help expose and deal with these barriers both at national and regional levels, because they keep popping up from time to time," he said. Eliminating non-tariff barriers is anticipated to reduce costs of doing business within the trade bloc, which shares some of the infrastructure such as ports, roads and railways. Source: The Star

The global shortage of shipping crew and officers has reached serious proportions, threatening the future of an industry that remains the lifeblood of world trade. According to the latest data from the International Maritime Organisation (IMO), there was a supply requirement of 498,000 seafarers in 2008, with an officer shortfall of 34,000 that increased to 83,900 in 2012. Safe navigation Ports and harbours employ mariners to ensure the safe navigation of ships. Their job is physically demanding, with marine pilots, for instance, required to board moving vessels from small, high-powered launches, often in rough seas. They also have to deal with high-risk cargo, poor manoeuvrability and communication difficulties. To protect the future of world trade, IMO launched the “Go to Sea’’ campaign in partnership with the International Labour Organisation (ILO) and shipping firms. The campaign is aimed at promoting seafaring as an attractive option for young people that can provide rewarding and long-term prospects, not only at sea, but also in the broader maritime industry. IMO has also established an umbrella initiative under which governments can mount their own campaigns to improve seafarer recruitment. Andrew Mwangura, a Mombasa-based independent maritime researcher, told Business Beat that the worldwide supply of seafarers in 2010 was 624,000 officers against a demand of 637,000. “To address this gap, we need to ensure there are incentives given to shipping companies,’’ he said. Mr Mwangura said in countries with a developed maritime industry, there are advanced incentive systems to boost employment numbers, including tax considerations, access...

The Government has expressed commitment to improving infrastructure with the the aim of opening up Kenya’s economy to neighbouring countries. Transport Principal Secretary Nduva Muli said the Lamu Port-Southern Sudan-Ethiopia Transport ( Lapsset) corridor project and the Standard Gauge Railway would expand the economy and spur trade between Kenya and its neighbours. Mr Muli said Kenya and other countries in the region were poised for major economic development following the discovery of minerals, oils and natural gas. There was, therefore, need for proper infrastructure – a good transport network and efficient port services. In a speech read on his behalf by the Director General of National Transport Safety Authority (NTSA) Francis Meja, Muli said the Government supports maritime transport as a major contributor to trade development. He said the Government was aware the continent could not develop its intra-continental trade to reach the vast market presented by its huge population if there was no transport connectivity. And to ensure the country opens its borders, the Government is planning to make the northern corridor a dual-carriage road from Mombasa to Malaba. ENHANCE TRADE “It is for this reason the Government recently commissioned the Voi-Taveta road to link the Mombasa port with its hinterland of northern Tanzania and Burundi through Holili,” said the PS in his speech. He said the Lapsset project was an attempt by the Government to open up the northern frontier to enhance trade with neighbours like Ethiopia, South Sudan and beyond. He said the Government was finalising settlement...

Tarmacking of the main road linking Kenya with Ethiopia is expected to be completed by end of next year, Marsabit governor Ukur Yattani has said. Mr Yattani said the 505km Isiolo-Marsabit-Moyale road was 60 per cent complete and that work was progressing well. “Construction is ongoing. By the end of next year, we will have connected Addis Ababa to Nairobi on tarmac road, which will change the economy of this place,” Mr Yattani, whose county occupies 15 per cent of Kenya’s land mass, said. The road is expected to cost Sh46 billion and is funded by the African Development Bank, the European Union and the national government. The governor said the road would ease travel to Nairobi, which used to take four days but has since been reduced to one day. “Petrol stations will come up. We also have lodges, cottages, banks and other institutions. The road will be a game changer,” Mr Yattani told journalists at his office. The project was initiated by former President Mwai Kibaki in 2007. “We will open ourselves to competition. We encourage it. People should come and create jobs to our people,” Mr Yattani said. Separately, Laisamis MP Joseph Lekuton said he was happy with the work done on the road. Already, the Isiolo-Merille road, which is part of the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor is complete. A spot check by the Business Daily indicated that construction of the remaining phases between Merille River bridge and Marsabit town, and between Marsabit and Moyale...