Receives proposals for setting up two plants for processing of rice and beans in Rwanda, a sugar refinery in Tanzania, a pulses processing plant and a unit to process animal products. As many as five projects are under consideration now for investment in East African countries that will be facilitated under the Supporting Indian Trade and Investment for Africa (SITA) project. Govind Venuprasad, co-ordinator, SITA office for Asia and the Pacific, told The Hindu here on Tuesday that in the last four months, SITA had received proposals from mid-sized Indian companies for setting up two plants for processing of rice and beans in Rwanda, a sugar refinery in Tanzania, a pulses processing plant and a unit to process animal products. The approximate investment of these projects was expected to be $18 million. Earlier, speaking at a meeting organised by Confederation of Indian Industry (CII) here, he said countries covered under the SITA project were India, Ethiopia, Kenya, Rwanda, Uganda and the United Republic of Tanzania. The implementation phase for the project started in April this year and would be on till March 2020, and the focus sectors include leather, cotton, textiles, apparel, coffee, spices, essential oils, IT and ITES, and pulses. The Exim Bank was keen and was open to supporting bankable projects, he said. Indian partners and companies can look at investment, export of products and capital equipment, and technology and knowledge transfer to these countries. Rajesh Aggarwal, chief of trade facilitation and policy for business, International Trade Centre,...

THE Common Market for Eastern and Southern Africa (COMESA) has conducted training workshops for stakeholders in transit trade in preparation for the implementation of regional trade facilitation instruments. The objective of the training is to prepare key stakeholders involved in transit trade in Zambia with knowledge and skills to implement the COMESA Virtual Trading Facilitation System (CVTFS). The CVTFS is a trade facilitation technology that provides a single electronic platform for processing various transit trade instruments, including transit bonds, cargo tracking, overload control and insurance, among others. COMESA secretariat public relations officer Mwangi Gakunga said the commission had in May this year conducted six training workshops for stakeholders in transit trade in preparation for the implementation of regional trade facilitation instruments. He was speaking in a statement released in Lusaka. Mr Gakunga said the training also covered the Regional Customs Transit Guarantee (RCTG) scheme, commonly known as the CARNET, which is a customs transit regime designed to facilitate the movement of goods under customs seals in the COMESA region and to provide the required customs security and guarantee to the transit countries. "The training was also triggered by the signing of a Memorandum of Understanding between Zambia Revenue Authority and COMESA in May this year, for the implementation of the CVTFS," he said. Mr Gakunga has since refuted media reports that COMESA had been holding secret workshops to promote its trade facilitation instruments. He said the workshop addressed inherent fears among Clearing agents that the implementation of the systems, especially...

On June 10, 2015, at the 25th African Union Summit in Cairo, Egypt, African leaders signed the Tripartite Free Trade Agreement (TFTA). Prior to its signing, the agreement had been in negotiations for seven years. Several bodies have existed in Africa to foster regional economic integration: the Southern African Development Community (SADC), the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), the Inter-Governmental Authority on Development (IGAD), the Economic Community of West African States (ECOWAS), the Community of Sahel-Saharan States (CEN-SAD), the Economic Community of Central African States (ECCAS), and the Arab Maghreb Union (UMA). TFTA intends to unite three of these existing blocks, SADC, EAC, and COMESA, into one unified region. In doing so, the agreement renews the long-standing dream of an economically-integrated entity stretching from Cairo, Egypt to Cape Town, South Africa. If ratified, the agreement will create the largest free trade zone in the continent’s history with a membership of over 26 African states, a population of 632 million, an area of 17.3 million square kilometers, total trade of US$1.2 trillion, and 60% of continental output. TFTA also establishes a framework to bring in the Central and West African nations that are currently excluded from the agreement at a later date, which would create an even larger free trade zone across the entire continent. Details of the TFTA TFTA seeks to fulfill three main pillars: market integration, infrastructure development and industrial development. In terms of intra-regional trade flows, Africa is the least...

Kenyan President Uhuru Kenyatta has described the East African Community (EAC) as a great African dream that is fast becoming a reality. Uhuru made the remarks, yesterday, while addressing the Ugandan parliament during his three-day state visit to the country. "It is the fastest integrating region in Africa, and one of the fastest in the world. Our Northern Corridor Integration projects have led the way," Kenyatta told the House. "One example is the Standard Gauge Railway, whose construction, starting in Mombasa, is progressing on schedule. Upon its completion, it will dramatically reduce cargo transport costs by 60 per cent, to the benefit of Ugandan businesses, farmers and consumers alike." The Northern Corridor is the transport network that links the landlocked countries of Uganda, Rwanda, South Sudan and Burundi to Kenya's Maritime Port of Mombasa. Kenyatta's visit was dominated by bilateral talks on trade, regional security and the ambitious infrastructural projects under the Northern Corridor that the two countries share. He said his country is expanding the port of Mombasa and taking steps to rapidly improve its efficiency. "We are also going ahead with the development of the LAPSSET project, which will offer the region yet another world-class outlet for its goods," he added. Source: All Africa

President Abdel Fattah Al-Sisi stressed the importance of benefiting from three trade agreements signed with African countries topped by the agreement reached recently in Sharm El-Sheikh between the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development community (SADC). During a meeting on Monday 10/8/2015 with a delegation representing newspapers in some African countries, the President said he has been keen since coming to office on openness to Africa and boosting ties with African countries. Presidential Spokesman Alaa Youssef said the President welcomed the African journalists during the meeting, which came days after the inauguration of the New Suez Canal project. He said the President affirmed the new project is in parallel with the efforts to boost transport movement, including the project of linking Lake Victoria to the Mediterranean. The President discussed with African journalists aspects of cooperation between Egypt and African countries, pointing out that such cooperation is not limited to technical support to them but also extended to important partnerships, added the spokesman. He said the President pointed out that the cancer hospital in Egypt received 600 medics from the Nile basin countries who received training during the past three years. Sisi stressed the importance of cooperation in the fields of combating terrorism and said the terror combat must not be limited to security, but rather must be through economic and social issues. The President said the State respects and appreciates the role of media and did not put...

The Eastern Africa Grain Council (EAGC) in partnership with FoodTrade Eastern and Southern Africa has launched the G-Soko Platform. This is an online trading service that links smallholder farmers to grain buyers through a networked and structured market mechanism. Gerald Masila, the Executive Director of EAGC said recently in Nairobi, “Right now there is urgency to expand regional food trade due to the exponential growth of staple food imports. “Linking rural food surplus production zones in Eastern Africa to major deficit urban consumption centres requires a well-functioning regional market. We wanted to address this deficiency but also do it in a way that is inclusive and effective. This is why we developed G-Soko; a market transaction platform that will enhance food trade across borders, and contribute towards making trading more transparent,” Masila said. According to a release, the platform will allow farmers to easily sell their products at a favourable prices and this should help stabilise the food supply chain in East Africa because of guaranteed market access. The G-Soko platform was developed by Virtual City, a leading mobile software solutions firm supporting the supply chain and agribusiness industry in Africa. Virtual City Managing Director, John Waibochi said, “The model addresses the challenge of funds inadequacy by devising affordable export/import financing modalities. It creates synergies from the small scale farmers to the bulk buyers based on tested market structures.” He said, “This system also enhances traceability of grains. Its Grain Bulking feature allows farmers to consolidate and sell their grains...

Kenya and Uganda have struck a deal allowing cheaper Ugandan sugar into the Kenyan market, ending the long-running feud over the trading of the commodity across their common border. The deal President Uhuru Kenyatta signed with his Ugandan counterpart Yoweri Museveni in Kampala also clears the way for Kenyan traders to export beef to Uganda under similar terms, deepening the commercial ties between Kampala and East Africa’s largest economy. The agreements were signed during Mr Kenyatta’s three-day visit to Kampala where he held bilateral meetings with his host Mr Museveni and addressed the Ugandan parliament. Ministry of Trade officials said they were expediting issuance of import permits to Ugandan sugar traders to enable them feed the undersupplied Kenyan market. Kenya has had a near diplomatic stand-off with Kampala over the Ugandan traders’ quest to export sugar to the region’s largest economy, arguing that the country did not produce enough sugar to meet its consumption needs and would therefore not have excess to export. The Kenyan authorities have maintained that Ugandan traders were importing sugar cheaply for repackaging and exporting to lucrative markets such as Kenya. Uganda has strongly defended itself against the allegation, arguing it has excess production capacity that can produce sugar for export to the Common Market for Eastern and Southern Africa (Comesa). Foreign Affairs and International Trade secretary Amina Mohamed said the slow pace of processing of permits for Ugandan sugar exporters was behind the stalemate, adding that the issue had been resolved. Mrs Mohamed said the...

Kenya has become the top regional destination for investors putting money in impact investments that target both social and financial gains, a new study shows. The report, which looked at regional impact investments made between 1998 and 2004, says Kenya accounted for nearly half of the $9.3 billion (Sh930 billion) invested. The report, produced by the UK Department for International Development (DfID), the Global Impact Investing Network (GIIN) and Nairobi-based Open Capital Advisors found Kenya had impact investments worth $4.2 billion (Sh420 billion) which is 46 per cent of the amount that went to the region. Data shows Development Finance Institutions (DFIs) such as the World Bank are the biggest investors in power plants, schools, banks, hospitals and other ventures having put $3.6 billion (Sh360 billion) in such ventures through 136 deals. Private equity and venture capital firms invested $650 million (Sh65 billion) in 221 deals over the same period. The study says that more funding would have gone to local ventures were it not for security concerns. “Kenya is so dominant that some impact investors express concern that the landscape is already saturated. However, ongoing security concerns as well as challenges common to the region have kept impact investing activity in Kenya from reaching its potential,” says the report. Human capital “Kenya offers the advantage of more readily available human capital compared to other countries in the region,” the study says. "But like other countries in the region, the informal nature of many businesses poses challenges for investors, and...

Egypt’s Ministry of Industry and Foreign Trade is looking to double its exports of agricultural crops and is looking to African markets to realise this goal. Through free trade agreements with Nigeria and Senegal (with more between West and Central Africa on the way) the North African nation is seeking to trade with notable African markets such as the International Maritime Organisation (IMO), and the Economic and Monetary Community of Central Africa (CEMAC). Egypt’s Minister of Industry and Foreign Trade, Mounir Fakhry Abdel Nour, highlighted that Egypt had already reached a preliminary agreement with IMO in 2004. After negotiations were halted, the ministry is now seeking to reach a final agreement through the current negotiations. Abdel Nour added that the volume of African total product amounts to $2.5 trillion, that annual exports amounts to about $599.5 billion and that total annual imports are worth $605 billion. However, Egypt’s share of these amounts is no more than $4 billion. Egypt is developing its trade relations with the rest of the continent based on three approaches: Re-forming Egypt’s mutual interests with other African countries, moving from merely water-based interests to achieving broader economic outcomes Strengthening Egypt’s presence in African markets by leveraging its commodities; the ministry seeks to transform the country into a major supplier of goods to needy African countries Increase the size of the technical assistance provided by Egypt which assist with social and economic development.   Abdel Nour said: “The ministry implemented important steps to strengthen cooperation with Africa,...

Kenya's President Uhuru Kenyatta has urged the East African region to harness its "shared identities" as the strongest asset to develop its economy. Addressing the Ugandan Parliament in Kampala on Monday, President Kenyatta said the close ties between the people of Kenya and Uganda should encourage similar policies that would guide the region out of poverty. "It is such shared identities and people-to-people links that tie our partnership. We will need these links more than before in future," he told Ugandan MPs. Mr Kenyatta, who was on his first ever state visit to Uganda since his election, used the podium to challenge the region to reorganise policies if they have to catch up with the 'Asian Tigers'- the emerging economies of the Far East. These 'Tigers' include Malaysia and Singapore, "countries who have managed to move from wretched poverty to great wealth in just two generations." Of concern to him is corruption and poor governance, which he argued were eating into any progress the two countries make. Standard gauge railway Both Uganda and Kenya belong to the East African Community, which also includes Rwanda, Burundi and Tanzania. The region has been involved in key infrastructure projects such as the multibillion-dollar standard gauge railway, improving the Port of Mombasa and reducing road blocks on goods in transit. But President Kenyatta admitted there are "enemies" who may want to stand in the way of these projects. He never named them, but hinted at corrupt officials and political detractors who he argued posed...