The UK government is set to inject £211 million (Sh30 billion) to support the second phase of infrastructure projects in measures to ease cross-border trade between Kenya and her neighbours. Britain’s International Development Secretary Penny Mordaunt, who visited Kenya last week, was impressed by the progress made in the first phase of the programme that has since cut customs clearance times – from an average of nine to two days UK Department for International Development was one of key financiers of the first phase that started in 2010-2016 and saw Trade Mark East Africa help reduce customs clearance times from an average of nine to two days, and reduced the cost of trading across the region with new cargo-tracking technologies and improved infrastructure. “Here in Kenya, technology is delivering UK aid in new ways, from innovative cash transfers using biometrics, through to trade technologies that support economic growth, jobs and investment. It is in all our interests that we harness the best of British innovation with African entrepreneurialism – to create jobs, defeat poverty, and support our future trading partners, as we work towards a shared prosperous future,’’ said Mordaunt. Mordaunt pledged £60 million (Sh 8.7 bn) to fund sustainable urban economic development partnership in 10 rapidly growing towns in Kenya. The money will go towards urban economic planning, investment climate reforms and attracting private sector investment. UK has also invested £8 million (sh 1.16 billion) through the World Bank to assist the Government of Kenya in the development of...

Common Market for Eastern and Southern Africa (COMESA) has stepped up efforts to promote cross-border trade by embracing e-commerce to be able to “minimise physical barriers”. to trade across the region. Dr Francis Mangeni, the COMESA director of trade and customs, said that trade facilitation is a key priority for Africa, and a “digital free trade area (FTA) is a practical way of increasing intra-regional trade and creating wealth”. Mangeni added that the online FTA will be rolled out soon enabling member states to trade commodities, goods and services without need to travel. In a statement, Mangeni added that providing traders with the necessary digital tools will help boost intra-regional trade and enhance competitiveness of COMESA members in global trade. The official was speaking after a two-day workshop on the digital free trade area held in the Seychelles last week. Speaking in an interview with The New Times about the development, Geoffrey Kamanzi, the PSF director for trade facilitation and negotiations, said the move is a “timely measure that will help reduce the cost of doing business within the bloc”. It is also a unique opportunity to further realise the potential of free trade through ICT, as well as contribute to greater regional integration. Trade experts agree that in today’s rapidly-changing world and economies, the region cannot afford to be left behind. They say that embracing technology will enable the members in the bloc to overcome some of the barriers to trade which have for a long time made the...

Dar es Salaam — The laying of the Uganda-Tanzania crude oil pipeline is a step closer to commencement following the completion of a key engineering exercise. The process, which started in 2016, mostly focused on technical requirements as well as estimating the cost of the project. The firm which undertook the work, Gulf Interstate Engineering, said in Dar es Salaam yesterday that it completed the front end engineering design (Feed) early this month, paving way for the project developers to make the final investment decision (Fid). Feed entails basic engineering conducted after completion of a conceptual design or feasibility study. At this stage, before the start of engineering, procurement and construction (EPC), various studies are carried out to figure out technical issues and estimate the investment cost. "We have completed the Feed process which started in 2016. It mostly focused on technical requirements as well as arriving at a rough estimate for the project. This paves the way for the start of FID," Gulf Interstate Engineering senior vice president Criss Shipman said during the crude oil stakeholders' meeting. The meeting deliberated on opportunities to be found in the project. Mr Shipman said they had prepares drawings that the construction companies could work on. Meanwhile, an official from oil giant Total, who asked not to be named because he was not authorised to speak to the media, said the focus was now on FID, which mostly entailed approving the project before its implementation could start. He said once the project was...

The British government’s aid ministry says its new programme to support technological improvement to the way Kenya trades has proved successful. The UK says that it is now about to put an additional £211 million (Sh30.2 billion) into the second phase of the Trade Mark East Africa (TMA) programme. Following the visit of the UK’s Secretary of State for International Development Penny Mordaunt’s to Kenya earlier this week, a statement by the aid ministry hailed the “incredible power of technology to deliver aid in new ways” through TMA. Largest exporter The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. UK's Department for International Development (DFID) says innovative technology is helping Kenya build resilience to climate challenges, including drought, and to build a modern economy for the future. It said that Trade Mark East Africa was helping enterprise and creating jobs by “breaking down barriers to trade.” In Nairobi, Ms Mordaunt saw how the first phase of the programme has cut customs clearance times – from an average of nine to two days – and reduced the cost of trading across the region with new cargo-tracking technologies and improved infrastructure. Ms Mordaunt heard from British businesses about how this technology has helped them enter the Kenyan market. New ways “Here in Kenya technology is delivering UK aid in new ways, from innovative cash transfers using biometrics, through to trade technologies that support economic growth, jobs and investment,”...

Britain’s Secretary of State for International Development, the Rt Hon Penny Mordaunt, has hailed the “incredible power of technology to deliver aid in new ways” on her first official visit to Kenya. While in the country, Ms. Mordaunt saw how UK aid is supporting vulnerable communities in Marsabit County devastated by East Africa’s drought. In Nairobi, Ms Mordaunt also heard how UK support for innovative programmes is helping to create jobs for a rising population. Ms Mordaunt was also in the country to hear from British business about how new technology has helped them tap into the Kenyan market. The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. Ms Mordaunt also held a successful roundtable meeting with Kenya Cabinet Secretaries. The meeting chaired by the Cabinet Secretary for the National Treasury, Mr. Henry Rotich focused on ways of enhancing Kenya-UK bilateral relations and developing a partnership that will benefit both Kenya and the UK. The meeting also discussed President Kenyatta’s big four priorities: manufacturing, affordable housing, universal health care and food security for all Kenyans and agreed to work together to promote this agenda. During the meeting, the two governments agreed to co-host with the International Disability Alliance, the Global Disability Summit in London in July 2018 as a signal of commitment to work for all people. During her visit the International Development Secretary, launched the second phase of Trade Mark East Africa. The UK is significantly...

The East African Community will have a new logo later this week after judges scrutinize over 400 entries of a recently announced competition. The EAC spokesperson Richard Othieno says by the end of Wednesday, all the entries will have been presented to the branding experts for scrutiny. Also to be designed are logos for the three organs of the Community and eight institutions, totalling eleven. Under the EAC Brand Architecture competition, bidders are also required to recommend the corporate colour of the organization and a logo/emblem which should be a unique unifier of the EAC. The exercise will see a new flag designed for the Community, replacing the current one which has been criticised for having “too many colours. The winner of a design competition, which was launched in Juba, South Sudan on June 1st, 2017 and open to youths, will be awarded $ 25,000 (approximately Sh. 55 million). Source: 93.3 KFM

The East African Community is gearing up for the leaders’ retreat next month expected to seek sustainable ways to finance major infrastructure and health projects. For the infrastrcutre sector, the regional leaders will also consider new strategies to engage with the private sector and multi-lateral agencies such as the African Development Bank in financing. “The Heads of State Retreat on Infrastructure will also seek ways to mobilize the required financing to construct connecting roads that will decongest the cities and enhance ports logistics”, the Arusha-based EAC secretariat said at the weekend. Themed ‘Deepening and widening regional integration through Infrastructure and Health Sector Development in EAC Partner States’, the event will take place at Speke Resort, Munyonyo on February 21st to 22nd. “The Heads of State will address infrastructure and health development and financing in EA”, the statement said, adding that the meetings will also discuss ways to attain the objectives of the EAC Development Strategy. The retreat is expected to give impetus to infrastructure and health development by way of harnesing political support for regional flagship projects, funding committments and public-private arrangements. Railways, ports and inland waterways will be key priority projects to be discussed during the coming event as will be ways to seek finance to decongest the cities and improve ports logistics. Todate, three high level retreats on infrastructure development for the EAC bloc have been held so far; in 2008, 2012 and 2014. Through the retreats, several projects in transport, energy, civil aviation have been identified for...

SWEEPING reforms for service improvement at the Dar es Salaam Port have started yielding results, with especially transporters enjoying thriving businesses. Tanzania Truck Owners Association (TATOA), a union of key cargo haulers to/ from the landlocked countries, has lately experienced business growth, thanks to a huge increase in cargo at the port. "We are going through an impressive business trend...we registered a record 35 per cent increase in cargo last year," TATOA Chairperson Angelina Ngalula told the 'Daily News' in Dar es Salaam over the weekend, adding: "...and there are signs of bright future."Soon after assuming office in November 2015, President John Magufuli introduced tough measures to cleanse the rot at the country's largest sea port, vowing to squarely deal with all elements of theft, embezzlement and tax evasion. The President's move sparked uproar, leading to an abrupt drop of cargo ships at the facility. Some critics blamed the cleansing move, accusing the Head of State of crippling the port. But, Dr Magufuli remained adamant, declaring: "I'm willing to see even one ship docking at the port monthly but adequately paying our taxes rather than having hundreds of them, with no tax collected." Almost all stakeholders are today grateful to the President. "We indeed thank President Magufuli...he has created great business for us," said Ms Ngalula. Among the reforms that have boosted business at the port include improved infrastructure, intensified security on cargo, removal of Value Added Tax (VAT) on transit services and reduced road blocks. "Cases of stolen cargo...

The Tanzania Zambia Railways Authority (TAZARA) has said improved business at the Dar es Salaam port in Tanzania will help boost the transportation of cargo in its area of operations. TAZARA managing director Bruno Ching'andu said the freight traffic in the year 2016/17 increased to 170,000 from 130, 000 recorded in the previous year. Mr Ching'andu said the passenger traffic increased from 414,746 to 487856 in the 2016/2017 year while the transit time reduced from 8.5 to 6.4 days. He said the demand in the transportation of metals such as Copper and Manganese has gone up requiring added transportation. "More cargo to Dar es salaam has been stimulated by improved services by management in such areas as reduced transit time, accidents and security risks. Improved performance of the Dar es salaam port will increase cargo on the line," he said. Mr Ching'andu was speaking during a media luncheon on Thursday last week. He said the promotion of railway policy by the shareholding governments had helped improve the performance of TAZARA. Mr Ching'andu said there was need for management at the company to improve capacity in the short term by getting into access agreements and lease of equipment as well as enhancing marketing efforts to recapture more freight. He however said lack of sufficient recapitalization ,inadequate rolling stock, poor truck condition leading to low locomotive speed was affecting the performance of the company. "Huge deferred maintenance leading to low motive power and wagon availability, inadequate rolling stock obsolete signaling and telecommunication...

Prices of goods in East Africa are expected to remain stable this year, a reprieve for consumers, following near double-digit inflation last year. A report by African Development Bank (AfDB) released last week indicates that inflation in the region is expected to fall sharply due to improved crop harvests, having spiked to nearly 10 per cent last year. East Africa is also expected to post the fastest growth on the continent, which will likely attract more investors into the region. “Growth is expected to remain buoyant, reaching 5.9 per cent in 2018 and 6.1 per cent in 2019. Strong growth is widespread in the sub-region, with many countries (Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda) growing five per cent or more,” said AfDB in its 2018 Africa Economic Outlook report on the continent’s macroeconomic performance and prospects. Factors to spur growth Some of the factors expected to contribute to faster economic growth are increased private consumption and manufacturing, especially in Tanzania, Kenya and Rwanda, and investment in public infrastructure in Djibouti and Ethiopia. “African economies have been resilient and are gaining momentum,” said Akinwumi Adesina, president of AfDB. “Challenges remain, especially for the structural transformations that would create more jobs and reduce poverty by deepening investment in agriculture and developing agricultural value chains to spur modern manufacturing and services.” At the launch of the report at the headquarters in Abidjan on Wednesday, Mr Adesina said that Africa’s infrastructure requirements are about $130 billion to 170 billion a year. “That’s far higher than...