LOCAL shipping agents, freight forwarders and transporters are foreseeing booming business opportunities and enhanced efficiency once the expansion work at the Dar es Salaam port is completed and the envisioned electronic single window system becomes operational. Installed capacity at the country’s major gateway is presently at 18 million tonnes, but with the planned deepening and strengthening of berths at the port through the Dar es Salaam Maritime Gateway Project (DMGP), the capacity will surge to 28 million tonnes. Speaking in separate interviews with the ‘Daily News,’ industry players were upbeat that the coming of larger ocean vessels will reduce unit cost due to economies of scale and the same time reduce the dwell time that ships have been using at the harbour. “It is as well obvious that the government will register more revenue with the booming business at the port,” the Chairman of Tanzania Shipping Agents Association (TASAA), Mr Anil Patel, told this paper yesterday. Mr Patel was equally impressed that the envisaged electronic single window system, to become operational in 16-months’ time, will do away with red tape since importers and exporters will be allowed to lodge documents electronically. “There will be no need to shuttle from one government institution to another since everything will be done online. All responsible institutions will be connected to the system,” Mr Patel remarked. The views were supported by the Secretary General of Tanzania Freight Forwarders Association (TAFFA), Mr Tony Swai, who described the Dar es Salaam port as a ‘gold mine.’...

The South Sudanese government has called on Tanzania to send Swahili teachers to the country as it introduces the language in school curriculum ahead of its adoption as an official language. The request was made by South Sudanese Vice President Taban Deng Gai on the sidelines of the just ended African Union Summit on Tuesday, Tanzania’s Vice President Samia Hassan said in a statement cited by local media The Citizen. South Sudan also requested for assistance in other sectors of its economy including health, agriculture and security, the statement added. Swahili has been adopted as the official language for the East African Community (EAC), of which South Sudan is its latest member after it deposited the instruments of ratification on the Accession to the EAC Treaty last year. The language is part of the commitments entered in 2007 by the EAC, whose three founders – Kenya, Uganda and Tanzania – use Swahili as their official language alongside English. Source: Africa News

Traders have been urged to take advantage of the new customs reforms to become more competitive and increase cross-border trade. According to the Rwanda Revenue Authority (RRA), some of the reforms including, the gold card scheme and authorised economic operator, offer benefits that could enhance the efficiency of local traders. Though some of the reforms were implemented this year, the gold card facility was launched two years ago to ease goods clearance procedures for low-risk importers. Fred Nuwagaba, the RRA customs unit trade management division expert, however, said few cross-border traders have embraced the facility despite its enormous benefits. “Goods of compliant tax-payers that hold this facility (gold card) are released immediately upon declaration at customs. This is, therefore, an instrument that eases and promotes trade that the importers should exploit to boost business,” Nuwagaba told The New Times. The gold card scheme is intended to help customs balance its conflicting mandates of trade facilitation and enforcement and control, the expert explained. It also allows the department to facilitate low-risk consignments, allowing the agency to focus its enforcement efforts on the transactions representing “higher or unknown risk” ensuring easy flow of goods, he added. Sensitisation needed Trade experts, however, say there is need to sensitise traders on such facilities to enhance their effectiveness and, ultimately, promote regional trade. Kevin Umuhoza, a trade expert in Kigali, said it is RRA’s responsibility to educate traders about such facilities and the benefits they present them (business community). Umuhoza added that few importers and exporters...

Kenya stands to gain significantly from stronger economic growth of regional partners, as it can take advantage of increased demand from these economies, says a report launched on Tuesday by an international accountancy and finance body. The report by the Institute of Chartered Accountants in England and Wales (ICAEW) finds that Nairobi is positioned to take advantage of rising demand for manufactured goods, while the country's location and relatively developed transport infrastructure will allow Kenya to act as the gateway into the East Africa region. "The East Africa Community (EAC)'s infrastructure development strategy still largely depends on improving the efficiency of imports to the region through Mombasa, from which Kenya can be expected to gain," the report says. The report reveals that EAC members accounted for a fifth of total Kenyan exports in 2016. According to the report, the African continent accounted for 41 percent of Kenya's exports in 2016 while Europe and Asia each accounted for approximately a quarter of total exports. The study finds that Uganda held the position of Kenya's largest single export destination accounting for 11 percent of total exports during 2016. The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provides a snapshot of the region's economic performance. The report focuses specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola. The East African nation has been relatively successful in diversifying its exports and building up a strong manufacturing base. Agricultural products such as tea and flowers made...

EAST African Grain Council (EAGC) is optimistic that the Zambia Commodity Exchange (ZAMACE) platform will boost trade relations between Zambia and East Africa. EAGC executive director Gerald Masila said the East African region has a great demand for local commodities, providing an opportunity for Zambia to supply grains and cereal to that region. Mr Masila said in an interview when ZAMACE hosted-regional grain trade facilitation forum last week that the gathering provided an opportunity for Zambia to supply East Africa as Zambia is a big supplier and producer of grains and cereal. “We are here hosting a trade facilitation programme that has brought together buyers from the East African region including Rwanda, Burundi, Uganda, Kenya, Malawi and others. “In this forum, buyers from the Eastern African region are meeting sellers from Zambia and they are negotiating and signing transaction agreements for supply of grains and cereals out of Zambia to East Africa… This is the beginning of a long journey that will see a total change in trade relations between Zambia and East Africa,” he said. Mr Masila said the assurances that Minister of Finance Felix Mutati gave to the business community that Government will support the transactions and also address the bottlenecks that may come along the way of trading will further boost trade relations. “We are, therefore, glad that the minister [of Finance] has confirmed that the export bans are a thing of the past and that Zambia has changed orientation so that this country will be looking...

The East African Legislative Assembly (Eala) has been commended for banning plastic bags. Eala passed the Polythene Materials Control Bill 2016 that if it becomes a law it will totally ban the use of plastic bags across the East African Community. According to stakeholders here, plastic materials threaten the ecosystem. The bill proposes the use of biodegradable packaging materials. Moreover, exemptions have been made for materials used in medical stores, industrial packaging, and agriculture. Punishment for those caught breaking the law will be left at the discretion of member states. Despite efforts by authorities to manage the environment, the use and right disposal of polythene materials have been a problem. The Lake Zone director for the National Environment Management Council, Mr Jamal Baluti, says the majority of the people are ignorant about the dangers of plastic materials to the environment. He says people cannot manage the use of plastic bags because there are no other packaging materials to replace plastic bags. "The idea of phasing out plastic bags across the bloc has been discussed by environment agencies of EAC member states." He noted that the amount of resources the government spends to unblock drainage systems and clean the environment is bigger than the cost of replacing packaging practices. According to him, the introduction of right policies and proper enforcement mechanisms will have plastic bags phased out easily. He cites Rwanda, which banned plastic bags in 2008 and replaced them by biodegradable packaging materials. Tanzania banned liquor sachets to protect the...

The current trade war between Tanzania and Kenya is not helpful and certainly does not bode well for the unity of the East African Community. The row has seen Kenya block cooking gas and wheat imports from Tanzania, while Dar es Salam has blocked Kenyan milk and tyres from entering its territory. While each country has had some reason for taking the drastic moves, overt protectionism is likely to end up being a lose-lose situation. Many citizens of EAC benefit from regional trade and there are a lot more benefits from having open borders within the region than there would be when individual countries restrict trade. The spat could lead to loss of many jobs and a source of livelihoods for many, when markets are closed. The concerns that the two countries have such as what Kenya has in regard to safety risks in regard to importation of gas should be resolved diplomatically. The relevant agencies between the two countries can quietly reach out to address the concerns and resolve the problem amicably. Tanzania can endeavour to do the same so that the issues are not seen as an all-out trade or even political conflicts, which is unlikely to have any positive effects. Essentially, the solution is for the two countries to come together and negotiate in good faith, for the good of their citizens. Source: Business Daily

The World Bank said on Sunday it had approved a $345 million loan for the expansion of a port in Tanzania's commercial capital Dar es Salaam, which the East African country aims to turn into a regional gateway. Dar es Salaam is vying with the port of Mombasa in Kenya to become the trade hub for landlocked neighbours such as Zambia, Rwanda, Malawi, Burundi, Uganda and the Democratic Republic of the Congo, but both ports are hobbled by congestion and inefficiency. The port handled 13.8 million tonnes in 2016 - an increase from 10.4 million in 2011, reflecting an average growth of 9 percent per year, according to the bank. Tanzania wants to lift its capacity to 28 million tonnes a year by 2020. "The project represents the start of an incremental process towards increasing the capacity of the port of Dar es Salaam and strengthening its economic role in the region," Richard Martin Humphreys, the World Bank's lead transport economist, said in a statement. In a 2014 report, the bank said inefficiencies at the port was costing Tanzania and its neighbors up to $2.6 billion a year. The statement said ongoing infrastructure investments at the port were expected to improve overall productivity and reduce waiting time to berth from 80 hours to 30 hours. "Enhancing its operational potential will boost trade ... and reduce the current cost of $200-$400 for each additional day of delay for a single consignment," said Bella Bird, the World Bank's Country Director for Tanzania....

The FINANCIAL -- The capacity of the Port of Dar es Salaam will be increased to 25 million tons over the next seven years following the World Bank Board of Executive Directors’ approval of a $345 million credit and a $12 million grant to the new Dar es Salaam Maritime Gateway Project (DSMGP). The investments in the Port will also improve waiting time to berth from 80 hours to 30 hours as well as overall productivity. “The Port of Dar es Salaam is vital for the economies of Tanzania and neighboring countries,” said Bella Bird, World Bank Country Director for Tanzania who also oversees Malawi, Burundi and Somalia. “Enhancing its operational potential will boost trade and job creation across the region, and reduce the current cost of $200-400 for each additional day of delay for a single consignment.” The DSMGP is to be implemented as part of a larger ongoing investment program for the overall development of the Port of Dar es Salaam with the support of several development partners. The Government of Tanzania is contributing about $63 million through Tanzania Ports Authority, while Trade Mark East Africa is supporting improvements in the spatial and operational efficiency of the port currently, through the rehabilitation of access and egress roads and demolition and relocation of sheds. The United Kingdom through its Department for International Development (DFID) are also contributing a $12 million Grant. This support will co-finance the activities in the DSMGP, and further support is available for capacity building programs...

The World Bank and UK-funded Dar es Salaam Maritime Gateway Project (DSMGP) will be undertaken by China Harbour Engineering Construction Company (CHEC), a subsidiary of the state-run China Communications Construction Company. It is expected to be completed in 36 months, Xinhua reports. The plan is to double the port’s cargo handling capacity from 13.8 million tonnes last year to 25 million tonnes over the next seven years. The volume of cargo handled by the port has been growing at an average of 9% a year for the past five years, says the World Bank. As GCR reported earlier this year, work was to include dredging the access channel and turning basin to make the port available to ships with a draft of 14m. Plans also called for a new container terminal, better railway linkages inside the port and two new berths. Three roads leading out of the port will be upgraded to six-lane motorways in order to reduce the costly “dwell-time” of 10 days currently afflicting the port. “The Port of Dar es Salaam is vital for the economies of Tanzania and neighboring countries,” said Bella Bird, World Bank country director for Tanzania. “Enhancing its operational potential will boost trade and job creation across the region, and reduce the current cost of $200-400 for each additional day of delay for a single consignment.” The World Bank is lending Tanzania $345m for the scheme, and giving a $12m grant. The bank lists the overall cost of DSMGP as $421m. The Tanzanian government has contributed...