Kampala’s decision a blow for Kenya’s oil ambitions in eastern Africa, although presidents say they will continue to work together on oil projects Uganda is to route its oil exports through Tanzania after a report found the country was a cheaper and more secure option than its other east African neighbour Kenya. Uganda is to use Tanga, a seaport city about 200km north of Dar es Salaam, to export its crude oil, rather than Lamu in Kenya. The announcement was made last month at the East African Community (EAC) summit held just outside Uganda’s capital, Kampala. Uganda said a pipeline between Kabaale, in Hoima district, and Tanga, of about 1,400km, will be the most cost-effective route when Uganda begins exporting oil by 2020. Map showing pipeline route and locations of Lokichar and Lamu Having had a pipeline route through Kenya rejected by Uganda, Kenya plans to build a pipeline from Lokichar in its oil-rich Turkana region to Lamu, where it is building a port, close to the border with Somalia. “President Yoweri Museveni [of Uganda] and I have announced that Kenya will embark on the construction of the Lamu-Lokichar pipeline while Uganda will build the other pipeline through its southern borders,” wrote Kenya’s president, Uhuru Kenyatta, on Facebook. “We have, however, agreed to continue cooperating on petroleum issues since both countries are new in the industry.” In March, Museveni and Kenyatta asked experts from Kenya, Uganda and Tanzania to assess both routes and, in a report last month, Ugandan experts...

A new action agenda to help African economies improve their economic competitiveness has been published by the World Economic Forum, the African Development Bank, OECD and the World Bank. The agenda comes at a time when shocks such as low commodity prices and a strong US dollar have highlighted the region’s chronic lack of competitiveness and the need for urgent diversification. Africa’s competitiveness challenges are well known and have been highlighted in the Forum’s “Africa Competitiveness Report” series since 1998. In a quest for long-term solutions to this chronic challenge, the four partners staged a series of high-level competitiveness workshops across Africa’s regional economic communities (RECs) between October 2015 and April 2016 with the aim of prioritising actions available to leaders. The resulting “Action Agenda for Raising Africa’s Competitiveness” synthesises more than 120 recommendations of more than 200 participants from government, business, academia, international organisations and civil society from across the East African Community (EAC), Southern African Development Community (SADC), the Economic Community of West African States (ECOWAS) and francophone North Africa. Across all regions, two elements were emphasized by participants: * Better public and private collaboration can be achieved by increasing levels of trust, establishing regular channels of collaboration and consultation, agreeing on a shared vision and working towards shared goals. * Greater regional integration can improve competitiveness and growth by opening markets, leveraging economies of scale, lowering costs and increasing the diversity of goods and services. Partners collaborated with the Rwanda Development Board and Brand South Africa for...

The African Union (AU) said on Saturday it has started the process of issuing the continent’s passport. Kenya’s Cabinet Secretary in the Ministry of Foreign Affairs and International Trade Amina Mohamed told a briefing in Nairobi that African ministers of foreign Affairs have began filling in the forms for the Africa passport which will be issued at the AU summit in July. “I have the honor to inform you that in line with the decisions of the AU Summit of Heads of State and Government to facilitate free movement throughout the continent, through the creation of African Passport for Heads of States and Ministers, the issuance process commenced on Friday,” Mohamed said on the sidelines of the Fourth AU Executive Council Retreat. This is the first time the retreat is being held in Kenya as previous ones were hosted by South Africa and Ethiopia. African Passport holders should receive a 30 day visa on arrival at all AU member states. Mohamed said that regional economic blocs such as the East African Community have already introduced regional passport to ease travel within the blocs. “The African passport will build on the success achieved by the trading blocs and help to achieve the dream of free movement of Africans across the continent,” she said. The CS noted that the continental passport will help to speed up the process of establishment of the Africa Economic Community. “It will also boost intra-Africa trade that is below the level of other continents,” she added. Source:...

President John Magufuli has assured his Ugandan counterpart Yoweri Museveni of full cooperation in accomplishing the construction of crude oil export pipeline from Hoima District in Uganda to the Indian Ocean port of Tanga. According to a press statement issued by the Directorate of Presidential Communications, Dr Magufuli made the assurance in Kampala during his talks with the Ugandan leader. He arrived in Uganda to attend President Museveni's inauguration slated for Thursday. At the Entebbe International Airport, he was received by Ugandan Works and Transport Minister John Byabagambi and Uganda's High Commissioner to Tanzania, Ms Dorothy Samali Hyuha. Uganda's Assistant Inspector-General of Police Andrew Felix Kawesi was also present at the airport to receive the Tanzanian leader. Dr Magufuli is popular in Uganda for the radical changes he has embraced in Tanzania, including spearheading the fight against corruption, since he took over office late last year. He joins two other dignitaries, King Letsie III of Lesotho and the Prime Minister of Swaziland, Dr Barnabas Dlamini, who arrived in Uganda on Tuesday evening. He then headed to State House Entebbe for an official welcoming ceremony. This is the second time for Dr Magufuli to travel outside the country since becoming president. He first travelled to Rwanda last month. President Museveni recently endorsed his country's decision to construct the pipeline through Tanzania during the 13th Northern Corridor Integration Projects (NCIP) Summit in Kampala, which was also attended by President Paul Kagame and Uhuru Kenyatta of Rwanda and Kenya, respectively. The envisaged pipeline...

By Geoffrey Irungu Export orders from Uganda improved business conditions in Kenya in April after a slowdown in March, a survey released by CfC Stanbic Bank on Monday. The growth in trade with Uganda resumed in earnest after the conclusion of elections in March according to the bank. "It's business as usual in Uganda after the conclusion of elections in February and hence Kenya's manufacturing exports have been robust," said Jibran Qureishi, regional economist for East Africa at CfC Stanbic Bank. The lender forecast that the completion of the standard gauge railway will further increase the trade with Uganda. The railway line is set to reach Nairobi by mid next year. The railway is planned to be extended to Kisumu and Malaba at the border with Uganda. "As regional infrastructure is bolstered, through developments such as the standard gauge railway, we believe this avenue will continue to show more promise in the coming years," said the bank. The improvement in trading will come as a relief for businesspeople since Uganda has traditionally been Kenya's single largest export market. There has also been considerable unease following the government's failure to clinch an oil pipeline deal to transport Uganda's oil through Kenya. The deal instead went to Tanzania. The latest Purchasing Managers' Index (PMI) data released by CfC Stanbic indicates a turnaround in growth of Kenya's private sector, following a substantial slowdown at the end of the first quarter. The PMI picked up from a five-month low to signal robust improvement in...

While Europe is on the verge of breaking up, Africa is reaping the benefits of integrating, growing and developing its trading blocks The collapse of virtual borders is one of the most remarkable things to have happened in our lifetimes. In the world of cyberspace, time and distance have become almost peripheral considerations when it comes to doing business. Services from software development to accounting can be delivered across the world in the blink of an eye. Future business leaders will struggle to imagine an era when communication was neither immediate nor virtually free. But in the physical world, integration between and even within countries has happened at a much slower pace. In some regions, high freight costs are made worse by antiquated working practices, such as demanding cash deposits of $1,000 to $5,000 instead of accepting insurance. At too many borders, goods still hang around and wait needlessly, raising costs and hurting business competitiveness. There are plenty of successful examples of regional economic integration, from Europe’s single market to, increasingly, the East African Community (EAC), the fastest growing bloc on the African continent. But for every success there is a graveyard of stalled or stunted regional initiatives to remove barriers to trade and investment. This is unfortunate, because for many smaller economies, especially landlocked ones, regional integration is not a policy option, it’s a necessity. Building trade blocs with neighbouring countries can help small countries to get access to ports. It can help them achieve economies of scale, facilitate...

Even though the world investment report places Uganda second in the region in attracting foreign direct investment, a group of Indian investors have expressed frustration over delays in clearing business deals due to by government bureaucracy. They advised the Government to support value addition which will boost the quality of exports from Uganda, and also attract global markets and a good premium. “It takes on average 14 days to have a major consignment approved in Uganda due to delays by government officials and the lengthy approval process, which frustrates investors,” said the Chief, Trade Facilitation and Policy for Business at the International Trade Centre, Rajesh Aggarwal. He said the delays affect the country’s competitiveness on the world market and asked government to effect sustainable, inclusive and far-reaching solutions. This was during the Supporting Indian Trade and Investment for Africa (SITA Fifth Partnership Platform Meeting at the Speak country Resort in Munyonyo recently. SITA is a trade support organization established to boost trade and investment between Indian and East African businesses through growth in key sectors such as ICT. India is so far the second biggest foreign investor in Uganda, after China, according to the 2015 records from the Uganda Investment Authority (UIA). He stressed the importance of high-level government commitment in addressing non-tariff measures and implementing the necessary reforms for improving the business and investment climate “Every day spent in clearance delays affects trade by 1% according to the World Bank and there is no investor that wants to lose....

It probable that among the 1,200 visitors due in Kigali for the World Economic Forum for Africa (WEF 2016) this week, many will be surprised that they can hop over to either Kenya or Uganda using the same visa. The visa goes for only $100 and more convenient than before when one had to tackle each country’s immigration singularly. Now with the one visa, it allows access to the three countries for up to 90 days. The visa can be bought at the point of entry into any of these countries. For those who are interested in visiting one of the East African countries only, the fee will remain at $50 for Uganda and Kenya, and $30 for Rwanda. This is a great opportunity to tout the merits of the East African Single Visa launched two years ago and currently incorporating Kenya, Rwanda and Uganda. Burundi and Tanzania have more than once indicated a strong interest to join the club. The East African Community (EAC) sees itself moving towards a common agenda and by showing visitors the convenience of the Single Visa, they may just become more intrigued into investing in the region. If not right way, but at least take the time to go out and look about for opportunities. However even if their sole aim is to relax after the Forum, the tourism receipts will be much appreciated. Hosting international conferences is a very serious business. A host of cities around the world including Las Vegas, Vienna, Geneva,...

TradeMake East Africa (TMA) through the Logistics Innovation for Trade (LIFT), a development finance instrument that provides grant finance for innovative business projects proposed by the private sector operating in the transport and logistics sector in East African, has secured $7.6 million for Round 2 funding. In an interview DAVID MITCHELL, LIFT Fund Manager tells Sam Okwakol, how and what one needs to do in order to benefit from the Fund.  QUESTION: Briefly explain, what LIFT is to an ordinary reader? ANSWER: LIFT is a challenge fund that rewards innovation ideas/project in the logistics and transport sector within the East African Community with grant funding. LIFT funds innovative logistics projects (not companies) ideas that provide sustainable solutions with measurable socio-economic impacts. Funds are provided by means of grants, matching applicants funding up to $1 million (LIFT contribution) per project. Why did you choose this approach in implementing LIFT? This is a historic idea which has been used successfully in different parts of the world. We have adopted it to harness the potential and energies of individuals in the private sector to derive solutions that can reduce the logistical and transport challenges facing the region. East Africa has well educated people with good ideas, can do research and most of all care about the development of their countries. Therefore capturing their potential will help us find solutions to reduce transit time and transport cost challenges faced by the logistical and transport sector, while at the same time helping in reducing the...

NAIROBI.- The African Union (AU) said on Saturday it has started the process of issuing the continent’s passport. Kenya’s Cabinet Secretary in the Ministry of Foreign Affairs and International Trade Amina Mohamed told a briefing in Nairobi that African Ministers of Foreign Affairs have began filling in the forms for the Africa passport, which will be issued at the AU summit in July. “I have the honour to inform you that in line with the decisions of the AU Summit of Heads of State and Government to facilitate free movement throughout the continent, through the creation of (an) African passport for heads of states and ministers, the issuance process commenced on Friday,” Mohamed said on the sidelines of the Fourth AU Executive Council Retreat. This is the first time the retreat is being held in Kenya as previous ones were hosted by South Africa and Ethiopia. African passport holders should receive a 30-day visa on arrival at all airports in AU member states. Mohamed said that regional economic blocs such as the East African Community have already introduced a regional passport to ease travel within the blocs. “The African passport will build on the success achieved by the trading blocs and help to achieve the dream of free movement of Africans across the continent,” she said. The cabinet ecretary noted that the continental passport will help to speed up the process of establishment of the Africa Economic Community. “It will also boost intra-Africa trade that is below the level of other continents,”...