News Tag: Uganda

UNBS cautions on standards

The Uganda Bureau of Standards (UNBS) has cautioned local manufacturers against thinking that standards were about mere getting product certificates from UNBS. Products certification involves the issuance of a certificate or mark (or both) to demonstrate that a specific product meets a defined set of requirements such as safety, fitness for use and/or interchangeability characteristics for that product, usually specified in a standard. "Standards are not about certificates. There are processes to go through before you get a standard," Patricia Ejalu, the UNBS deputy executive director said. Ejalu said this during a conference on enhancing local participation in the petroleum development. The function was organized by UNBS in collaboration with the Advocates Coalition for Development and Environment. The function took place at Protea Hotel, Kampala. Ejalu said certification refers to the confirmation of certain characteristics of a product, person, or an organization. This confirmation is provided by some form of external review, assessment, or audit. Certification provides an assurance of conformity to the specifications. Ejalu said local companies have to meet set standards both local and international in-order to participate in the oil and gas sector. Ejalu said before a company gets a certificate, the company has to bring sample of products to UNBS for testing. Ejalu also said the UNBS will also visit the firm where products are manufactured to observe the processes. She said many small firms often come to UNBS to be under product certification scheme with product samples and they want certificates for them at once. "Don't...

HOW AFRICA CAN MAKE THE NEXT QUANTUM LEAP IN TRADE

In 2010, Kenyan and Chinese archaeologists digging on the Indian Ocean coast found a haul of brass coins that have rewritten Africa’s trade history. Minted in the early 15th century, the coins show that Chinese missions were reaching the African continent 100 years before Europeans arrived. In the 1950s, newly-independent economies across Asia and Africa began to revive this ancient shipping route, but progress was slow. Trade between China and Africa only reached the US$1bn mark in the 1980s, with India-Africa trade following in 1991. This century, however, Asia-Africa trade has hit the fast lane. Trade between China and Africa has ballooned nearly seventeen-fold to $135bn, with trade between Africa and India surging six-fold to $55bn. This means more markets for African exports and access for Africans to a wider variety of consumer goods – often cheaper and better adapted to local conditions. Africa’s developing Meanwhile, imports of more affordable industrial goods – from 3G phone masts to efficient machine tools – have accelerated Africa’s own growth and development. Global Asian companies spanning agriculture, telecommunications, and infrastructure, such as Samsung and China Communications Construction Corp have made Africa-based enterprises a focal point for their foreign investments. Africa has also begun, slowly, to trade with itself. Companies like the Nigerian conglomerate Dangote Group are leading the way, expanding across the continent, whilst MTN’s telecoms presence across the continent continues to grow – where trade and connectivity are inextricably linked. Trade between Africa countries has doubled since 1990, in part jump-started by the...

Reframing Trade and Development: Building Markets through Legal and Regulatory Reform

As markets around the world become more integrated, trade policy is increasingly looked to as a path for building robust market systems, generating economic growth, and encouraging private entrepreneurship. Throughout the world, trade and development are closely intertwined, as evidenced by the recent launch of both the Tripartite Free Trade Agreement (TFTA) that will unite the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC), and the larger African Continental Free Trade Agreement (CFTA). These landmark trade initiatives are centred on how to use trade policy as a lever for regional integration and economic development, and they will require not only in-depth negotiations, but also ongoing legal and regulatory reform to align rules and strengthen institutions. As this paper will demonstrate, a stronger focus on development-led legal and regulatory reform will be needed to support negotiation and implementation of both trade agreements and World Trade Organization (WTO) disciplines and should be the lens through which trade and development is approached nationally, regionally, and multilaterally. Within institutions like the WTO, current approaches to trade and development focus primarily on generating and expanding market access to developed country markets, mainly through trade preference programmes, and special and differential (S&D) treatment for developing countries. While these aspects are important, they are not sufficient to achieve long-term economic diversification, improvements in livelihoods, and poverty reduction. Throughout the market, aid for trade (AfT) plays a pivotal role in helping countries and their stakeholders take...

Washed-out Kenya Road Blocks East Africa Trade Route for Second Day

MOMBASA, KENYA — A washed-out road in Kenya has blocked the flow of goods from Kenya's Indian Ocean port of Mombasa for a second straight day, officials said on Wednesday, choking the main trade route into East Africa. Mombasa handles imports such as fuel and other vital goods for Uganda, Burundi, Rwanda, South Sudan and eastern Democratic Republic of the Congo. Queues began forming at about 10 a.m. local time (0700GMT) on Wednesday when heavy rains swept away a temporary road about 50km from Mombasa. The road was being used as a diversion while the main highway leading to the capital, Nairobi, was repaired. Police and truckers stuck on the road say the queues are now almost 50km long, with many trucks, busses and cars stranded far from towns and villages where they can purchase water and food. “I have not eaten since yesterday morning, not showered and not even changed clothes,” Nathaniel Chweya, a truck driver hauling 10 cars to the Ugandan capital of Kampala, told Reuters. Police urged patience as some motorists threatened to stage protests. “We are working on it. This is not an easy task and we are all affected. Give us time,” Martin Kariuki, Coast regional traffic police commandant, said. Willingtone Kiberenge, acting chief executive of the truck owners' umbrella body, Kenya Transporters Association, said the delays were piling on losses for trucking companies. “We have more than 1,500 trucks stuck in the traffic since yesterday. Nothing much has changed and the problem is escalating....

Border Communities Urged to Optimise Integration Benefits

Valentine Rugwabiza, the Minister for East African Community, Affairs has urged border communities to take advantage of regional integration to develop. Addressing residents of Kirehe District at the official closure of the ministry's awareness week, over the weekend, Rugwabiza observed that it was the responsibility of the private sector to make good use of the opportunities that the region presents. The awareness was conducted to sensitise Rwandans on the benefits and opportunities of the EAC integration. The event was attended among others by Rwanda's Mps to the East African Legislative Assembly, Dr James Ndahiro and Valerie Nyirahabineza, and the Governor of Eastern Province Odette Uwamariya. Rugwabiza called on Rwandans to be aggressive if they are to benefit from the regional integration process. She said the East African Community put in place policies and structures to support and create an enabling environment for micro cross border traders in the region. "There's a lot we can get from the integration... for the past eight years we have been committed to ensuring that local businesses receive all the support they need to do their businesses... it can be done better through public private partnerships," she said. "Small businesses across borders are supposed to be tax free... you must know your rights so that no one exploits you. We shall be on close look to make sure all the agreed protocols are observed." Rugwabiza added. The minister pointed out that Rwanda joined the EAC with an aim of tapping into the region's economic benefits,...

East African integration

Increasing political and economic integration is gaining ground in East Africa, but how are the states in this region likely to benefit from the process and what can they learn from the European model? The East African Community (EAC), which comprises Tanzania, Kenya, Uganda, Rwanda and Burundi, is further strengthening ties as the five states push towards closer integration. The region already counts as one of the most integrated areas in the world after Europe, and is largely based on other communities particularly the European Union. This also reflects a global trend, as states seek greater cross-border cooperation. Tom Ottervanger, of counsel at Allen & Overy in Amsterdam notes that there has already been significant progress: “This is the second attempt  [after the collapse of the original EAC in 1977] in East Africa to integrate their economies, although this is more than an attempt, a lot has already been accomplished.” However, he notes that although a lot has been accomplished on paper, there is still some way to go. Allen & Overy has been working with local law firms and people from different jurisdictions – including civil servants and judges – to promote integration in the East African region. However, Ottervanger states that “it is important to note that we are taking a comparative approach rather than a colonial approach in regards to what can be done in East Africa”. Economic integration is part of a wider gradual trend across Africa and Ottervanger notes that promoting further integration across Africa...

Can the Seychelles become a global trade hub?

Despite being dwarfed by other African countries, the Seychelles archipelago in the western Indian Ocean is aiming to become a hub for trade between African nations, emulating small countries such as Singapore which acts as an Asian hub for the global commodities trade. Speaking at the island’s ‘African Prosperity conference’ the Chairman of the Seychelles Chamber of Commerce and Industry, (SCCI) Marco Francis said: "I have travelled to many parts of Africa. Africa has some very good structures to do business. African businessmen have the same vision as we do, they want to do business and they want to expand. Let’s partner together.” In an effort to boost trade, leaders from 26 African countries met earlier this year to sign a declaration to this end in Sharm El Sheikh, Egypt which will establish a free-trade zone spanning almost the entire eastern half of the continent. The Tripartite Free Trade Agreement (TFTA) incorporates member countries from the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC). It therefore stretches from the southernmost tip of the continent to Egypt, which is the continent’s most northern nation. Although Seychelles’ regional imports to these nations totalled as much as $214 million in 2012, this was offset by weak reciprocal exports of $3.8 million, which indicates that, if nothing else, much more still can be achieved in this area. Francis said: “We need to remove barriers…air access, vessel infrastructure to transport containers. These are...

Red tape, risk can harm Africa trade, Bin Sulayem warns

African states must be transparent to attract foreign investment, DP World chairman says DUBAI: African nations must do more to cut red tape and develop their infrastructure if they are to attract investment and trade, DP World Chairman, Sultan Ahmad Bin Sulayem, said in Dubai on Tuesday. Addressing delegates at the Africa Global Business Forum, he said that countries must realise they are competing with states around the world for investment funds. DP World operates two ports in Algeria and one each in Djibouti, Senegal, Egypt and Mozambique. “The six terminals we have are in partnership with the governments,” Bin Sulayem said at a session on the infrastructure of trade. “It’s working.” But he said many investors were concerned about risk when considering African investments. DP World is currently in a dispute with the Djibouti government over its port concession there. Bin Sulayem said he could not discuss specifics, as the case was in arbitration, but added that the port is “contributing almost 12 per cent of GDP (gross domestic product) in Djibouti”. “The port is the most modern in Africa, with an amazing infrastructure,” he said. “Today, if we were to invest in a developed market in Europe — we just built a port in England — it may be that the return is low, but it is safe. “In Africa there is opportunity, but the risk is perceived by many people. We are investing, so we gave more courage than many people,” he added. Further highlighting the attraction...

Tourism Expo to Market Uganda Beyond Borders

Kampala — East African countries are to form a joint tourism body to reap benefits from the industry internationally. This was revealed at the Pearl Of Africa Tourism Expo at Serena Hotel yesterday. Opened by vice president Edward Ssekandi, the expo brought together more than 300 exhibitors, several tourism boards, including Rwanda Development Board, Kenya Tourism Board, South African Tourism Board and Zimbabwean Tourism. "Uganda has very rich potential but you cannot serve sole opportunities when we can form a bigger fare that can attract the numbers that we need," said Herbert Byarunanga, the president Uganda Tourism Association. According to Carmen Nibigira, the coordinator of East Africa Tourism Platform, uniting all the East African Community states under an umbrella will bring business personnel to the region and get one voice for the private sector in the diverse tourism platforms of geo tourism, nature, and adventure. Source: All Africa

Trade missions no substitute for boots on the ground

If farmers are to feel the benefit of global exports in their pockets, brand-building exercises such as the upcoming Irish trade mission to West Africa must be matched by serious commitments from exporters to markets that will pay for a high-value food product. The value of internationally-traded agri-food products has more than doubled over the last decade and exceeds €700bn.Most of the growth in demand is taking place in emerging and developing markets where demographics, social trends and income growth are leading to increased demand for food. This particular growth trend is primarily of interest to countries that can produce low-cost food commodities. Another emerging market trend - that is of greater interest to exporters from high-cost countries such as Ireland - is the growing segment of discerning middle-class consumers, who value a high-quality and traceable product. It is important that exporters identify the kind of growth market with which they are dealing. For example, the Middle East, Africa and South Asia (MEASA) is an attractive market in terms of population and income growth. More than 75pc of the world's population growth over the next 15 years will come from this region, which has a forecasted average economic growth rate of 8.4pc, which will facilitate a 35pc increase in per-capita GDP over the next five years. However, the top-line figures are deceptive, since these figures reflect a growing population, which will continue to seek low-cost foods.Even in higher-income countries in the Middle East, the average consumer remains extremely cost-conscious, is...