The International Road Transport Organisation (IRU) (https://www.IRU.org) report, “Transit costs in East and Southern Africa” clearly demonstrates how African countries implementing the TIR Convention can reduce the costs of trade in southern and eastern Africa thus saving billions of dollars and increasing GDP in African countries. Since 1949, TIR has made international freight transits faster, more efficient and more secure, helping increase trade, boosting economic growth and making communities stronger. With TIR, goods are contained in sealed load compartments, and the contents are detailed in a TIR Carnet. This essential document accompanies the driver and the cargo along its journey. Customs simply have to verify the Carnet and that the seals are intact, rather than spend time to open the container and physically check the load. Umberto de Pretto, IRU Secretary General said “Some of the world’s highest trade costs can be found in Africa and the world’s road transport organisation, IRU, is working to support governments and the private sector to reduce these costs.” He continued “The report results show that TIR is up to 16 times less expensive than the national bond system on the Northern Corridor between Walvis Bay and Lubumbashi, and is also substantially more cost efficient on the three other African trade corridors in the study.” The report unequivocally concludes that the TIR system is the most cost effective transit bond method and could be deployed on all trade corridors in Africa. TIR, the world’s only universal customs transit system and one of the most successful...

The European Union flag. PHOTO | AFP  The European Union says it may have alternative ways of dealing with the East African Community member states should they fail to meet the deadline of signing a joint trade agreement in January next year. EU Head of Delegation Stefano Dejak told reporters on Wednesday that the three-month extension from October this year should give all the East African Community member states who have not signed to endorse the pact. But should they fail, he said the European bloc will negotiate appropriate arrangements with the region. “This was the case to October the 1st and thanks to our relations, we have found a way to address this and extend the period,” he said at his residence when asked if individual countries will have to negotiate separately if the agreement is not endorsed by the entire region. “If that would turn out to be the case (in January), we would certainly look out how best to partner with the government of Kenya and other member states of the East African Community to do the best for both, I think, especially for Kenya but it is the same in other countries.” The Economic Partnership Agreements (EPAs) is a set of agreements that allow African countries specific privileges to export to the European Union markets without being subjected to customs. The agreement covers trade in goods and development cooperation and covers on agriculture, fisheries and economic and development cooperation. RATFIED PACT On Wednesday, Kenya through its...

Corporate Council on Africa delegation president and CEO Stephen Hayes (Left) with CFC Stanbic East Africa regional boss Mike Blade. Photo/DIANA NGILA  IN SUMMARY The dinner event hosted in Mohamed’s honour resolved to immediately put modalities for holding of joint conferences, workshops and exhibitions to further the aim of greater US-Kenya trade and investment. A lobby representing United States businesses eying investment in Africa has today partnered with the Kenya government to in effort boost direct investments in Kenya. The partnership between Corporate Council for Africa and Kenya’s industrialisation ministry will help create cross-linkages between Kenyan and US traders enabling them to enjoy direct access to markets in both countries for mutual benefit. The two-year partnership deal signed by Trade, Industry and Cooperatives Cabinet Secretary Adan Mohamed and CCA President Stephen Hayes here in Washington, DC also stated that both parties will share information on existing opportunities for investment. “This MOU is a great opportunity for us to work more closely to promote trade and investment in Kenya. The Corporate Council has always been a champion for U.S. -Kenya business and we look forward to doing even more with them,” said the CS. A representative office The dinner event hosted in Mohamed’s honour resolved to immediately put modalities for holding of joint conferences, workshops and exhibitions to further the aim of greater US-Kenya trade and investment. CCA has conducted trade excursions to Kenya on several occasions that culminated to opening of a representative office in Nairobi. Mr Hayes said that...

The six African countries threatened with losing access to the European single market have finally agreed to sign the EU’s Economic Partnership Agreements (EPAs). But the continent’s regional integration may suffer as a result. EurActiv France reports. Kenya’s parliament last Wednesday (21 September) ratified the European Union EPA, signalling the end of a drawn-out struggle between several African countries and the European Commission, over the future of their trade relations with the EU. In July, Brussels had upped the pressure on six African governments, threatening to suspend their single market access if they had not ratified the new agreements by 1 October. Customs duties Faced with a tax on their EU exports if they failed to cooperate, Ghana, Ivory Coast, Botswana, Namibia, Swaziland and Kenya all finally agreed to ratify their Economic Partnership Agreements, bringing the lengthy negotiation process to an end. These EPAs replace the non-reciprocal trade agreements granted by the EU under the Cotonou agreement, signed in June 2000. The aim is to maintain the preferential access to the European market enjoyed by the African, Caribbean and Pacific (ACP) countries, in return for reduced customs duties for European exports. But the balance of the new agreements has attracted criticism from certain African countries, as well as civil society organisations, which say the dice are weighted in favour of the EU. The loss of customs revenue, coupled with competition from European products arriving on less development markets, is a major cause for concern. Integration in East Africa Following the...

By Jonathan Kamoga Trade between Uganda and Kenya is projected to increase as the construction of a new and shorter route from Mbale to the Lwakaka border post in eastern Uganda kicks off. The state minister for trade, Michael Kafabusa Werikhe, said when this road is complete, the quantity of exports and imports through Kenya is set to increase. Warikhe was speaking at a contract-signing ceremony between Uganda National Roads Authority and Chinese contractor, China State Construction Engineering Corporation, recently. "With the construction of this road, we are going to see improved quantity of trade in this area and this is especially with Kenya and South Sudan," he said. The 44.5-kilometer road will be constructed using a Shs 140bn loan from the African Development Bank and it will be completed within two years. Allen Kagina, the Unra executive director, was adamant that because of the productivity of the area, the road will benefit both Kenya and Uganda. "Kenyans have over time told us that this is a shorter route, can you make this road for us," Kagina said. "This is a very productive area for feeding both Uganda and Kenya and we expect production to go up. We also expect tourism to increase." Source: All Africa

The travel and tourism industry is recognizing World Tourism Day. Founded in 1980 by the United Nations World Tourism Organization (UNWTO), each year World Tourism Day brings together the global tourism community to highlight a significant theme with implications for destinations large, small, cosmopolitan, and rural, on every continent. This year's theme, “tourism for all, promoting universal accessibility,” touches on one of the most salient tenets of travel – mobility and inclusivity. According to the UNWTO, “accessible tourism for all is about creating products and services that can equally be enjoyed by persons with disabilities, tourists and locals, families with small children, seniors and everyone else.” According to 2015 UNWTO figures, Africa welcomed 62.6 international tourists, a decline of 2.7 million from the year prior, yet there is no greater region with the potential to boost accessibility for local, regional, and international visitors than in Africa. And in 2016, we have seen tremendous strides in making Africa a more accessible destination. “Africa has some of the most exciting and unique tourism experiences. The focus on tourism inclusivity and accessibility for all, presents African entrepreneurs with tremendous economic opportunities to develop tourism products, services, supply chains, and technology platforms to accelerate Africa's tourism sector growth and sustainability,” said Charles Leyeka Lufumpa, Director of the Statistics Department, African Development Bank. This year's Tourism Day celebrations coincide with the launching in July 2016, of the African Union's electronic passport (e-Passport). “This flagship project, first agreed upon in 2014, falls squarely within the framework...

The World Trade Organization Tuesday lowered its global trade forecast, warning that anti-globalisation rhetoric and Brexit were pushing trade growth to its slowest pace since the financial crisis. The warning comes as talks on a landmark free trade deal between the European Union and the United States faces stiff opposition and Britain's EU exit causes jitters. The WTO said that global trade was now estimated to expand by just 1.7 percent this year, compared to its April projection of 2.8 percent. The WTO estimates that global trade will expand by just 1.7% in 2016, compared to its April projection of 2.8% The new figure is also a far cry from a projection a year ago that trade would swell by 3.9 percent this year. Describing it as "wake-up call", the Geneva-based global trade body said growth had fallen to its slowest pace in around seven years, when the global financial crisis hit. "With expected global GDP growth of 2.2 percent in 2016, this year would mark the slowest pace of trade and output growth since the financial crisis of 2009," the trade body said in a statement. Looking ahead, the WTO said several issues, including Brexit's possible impact, had now cast a shadow and it had revised down its 2017 forecast. Trade is now expected to grow between 1.8-3.1 percent, down from the previously anticipated 3.6 percent, said the WTO, which sets the rules of global commerce. Also clouding the outlook, the WTO said, is "the possibility that growing anti-trade...

By Dorothy Nakaweesi To improve regional markets which have become bigger consumers of Uganda's exports, government has hatched a plan to construct border export zones. The border export zones will act as one-stop-markets where traders from neighbouring countries will pick the goods without going through a lot of bureaucracy. The Common Market for Eastern and Southern Africa (Comesa) and Uganda Export Promotions Board will oversee the construction of the border export zones. The Comesa support will be channeled through the Regional Integration Support Mechanism (RISM) - a European Union Development Fund that supports member states to implement regional integration programmes. Speaking at the ministry of Trade offices in Kampala during the opening of the steering committee meeting recently, Comesa Secretary General Sindiso Ngwenya, said: "Border export zones will result in reduced cost of doing business." Mr Ngwenya added: "This project has very high potential to generate increased revenue for the country and the region." However, he said there is need for the project to find other means of sustaining itself when the RISM funding ends in December this year. Comesa has so far approved €3.9 million (Shs14.5 billion) for Uganda. In his submission, Mr Elly Twineyo, Uepb executive director, said: "At least 60 per cent of Uganda's exports go to the regional markets Comesa inclusive. Most of the people who trade are small and medium enterprises (SMEs), a fact we cannot afford to ignore." He said once the border export zones are implemented, they will serve as a one-stop shop...

Managers of the Ghana International Bank have disclosed that the bank will soon commence operations in East African countries such as Rwanda, Tanzania, and  Zambia to help improve Ghana’s trade finance. According to the managers, the bank currently holds an asset of 400 million British pounds on the African continent. Speaking to Citi Business News at the sidelines of an International Trade Finance Programme, the Executive Director of the bank, Mark Arthur stated that the primary aim of the bank is to deepen financial relationship with other countries to help improve Ghana’s trade budget. “In Eastern Africa we are focusing on Kenya and certain African neighbors like Rwanda, Tanzania, Zambia and so on. This is relatively new markets that we are entering,” he said. He stated that the bank is still developing and deepening relationships with other African countries to promote trade. He pointed that, in Nigeria the bank decided to operate in the secondary market to maximize its output. Touching on the four-day programme organized by the bank, Mr. Arthur stated that about 40 bankers and senior business executives will attend this year’s programme, which is the sixth. “We are excited about the next four days, we will cover the full range of trade finance products, recent issues in international trade finance, risk assessment, money laundering and fraud as well as practical problem solving,” he said. Presenting his opening remarks, an Advisor to the Governor of the central bank Mr. Franklin Belnye said “banks play a key role in...

An NCPB store: NCPB has since opened its stores with the government agency offering Sh2,300 per bag while middlemen are buying at Sh1,800 dealing a blow to maize farmers in the North Rift region. PHOTO | FILE  IN SUMMARY Maize farmers in the North Rift region have been experiencing perennial difficulties in selling the crop due to lack of market with NCPB being the main buyer of the produce. Kenya will not stop maize imports from Uganda as the two countries have signed East African trade protocol, Agriculture Cabinet Secretary Willy Bett has said. According to Mr Bett business between Kenya and Uganda will move seamlessly so long as the goods meet required standard. “We are not supposed to stop maize from coming in we are a bloc, we are East African Community and we have signed protocol. We challenge our farmers to be more competitive in crops production in order to remain relevant in the market,” said Mr Bett. He added:  “But we really find that the crops from Uganda are more competitive than ours and this should challenge our farmers to be more competitive.” Mr Bett who was speaking on Friday during the official opening of agri-business trade fair at the University of Eldoret disclosed that a team has been setup to carryout survey on maize pricing which will be profitable to farmers. National Cereals and Produce Board (NCPB) has since opened its stores with the government agency offering Sh2,300 per bag while middlemen are buying at Sh1,800...