DAR ES SALAAM, TANZANIA, September 10, 2014 /EINPresswire.com/ -- With the growth of African economies, the importance of ports as exit and entry points for commodities that are stimulating economic growth in the region is also rising. East African countries are undertaking port projects amounting to over US$23 billion allocated to new port developments, terminal infrastructure upgrades, and improving port procedures to meet the growing cargo needs. Presentations will be delivered by senior officials including Dr Enos Bukuku, Deputy Secretary General – Planning and Infrastructure, East African Community, Tanzania; Tau Morwe, CEO, Transnet National Ports Authority, South Africa; Sylvester Kasuku, Director General/CEO, Lamu Ports-South Sudan-Ethiopia (LAPSSET), Kenya; Fernando Couto, CEO, Port Nacala, Mozambique; and Tim Vancampen, CEO, Madagascar International Container Terminal Services, Madagascar, who will give insights into current and future port projects in their respective countries. “We’re witnessing an exciting and rapidly developing time for the port sector in East Africa,” says Tanatsiwa Mabeza, Conference Producer, IQPC South Africa. “It’s imperative that leading authorities, consultants, contractors and suppliers come together to discuss advanced engineering strategies that will support the government’s vision to transform East Africa into a global shipping hub.” An exclusive workshop on Doing Business in East Africa will be facilitated by Daniel Machemba, Executive Director-Secretary, Tanzania Chamber of Commerce, Industry and Agriculture, and Alex Kabuga, CEO, Kenya Trade Network Agency, Kenya to provide an understanding of the business environment in the region. Source URL: World News Report

Non-tariff barriers within the East Africa region are affecting regional trade, according to a recent study conducted by a regional think-tank. The East Africa Policy Centre, in its study released last month, noted formal and informal trade barriers remain major obstacles to economic growth and social development in the East African Community (EAC). According to Executive Director Mike Rotich, high transportation costs due to corruption, bureaucratic delays and poor infrastructure are an impediment despite the measures put in place to drive business. The study also notes that due to high costs of road transport within the region compared to shipping and air transport, only 23 per cent of EAC's total exports and 10 per cent of imports are intra-regional. "To transport a 20-tonne container from Mombasa to Nairobi costs $1,300, while a similar container from Mombasa to Kampala and Kigali costs $3,400 and $6,500 respectively. This is more than double the $1,200 one would incur to ship the same goods from Japan to Mombasa," Rotich notes. Apart from high road transport costs, overhead expenses such as bribes at border checkpoints and weighbridges incurred by transporters have also hindered the growth of regional trade. "We found that other overheads and bribes account for almost 19 per cent of the companies' total operation costs. Drivers who were interviewed claimed that many unexpected overcharges and bribes have to be paid at check points and weighbridges on the borders," the study notes. The study, which explored different factors affecting the trucking business in the...

Arusha — Uganda's Minister for East African Community (EAC) Affairs Hon. Shem Bageine will officially open the annual EAC Secretary General's Forum for Private Sector, Civil Society and Other Interest Groups at the Imperial Resort Beach Hotel on Friday, 12th September, 2014. This year's theme is: "EAC: My Home, My Business". Over 100 delegates from the Partner States are expected to attend the two day event; the third in series since 2012. The first was held in Dar es Salaam, United Republic of Tanzania, and second was last year in Nairobi, Republic of Kenya. The delegates will be drawn from the Partner States' Private Sector Organizations (PSOs), Civil Society Organizations (CSOs), professional bodies, academia/universities, media, EAC organs and institutions, development partners and other interest groups. The EAC Deputy Secretary General (in charge of Productive and Social Sectors), Hon. Jessca Eriyo, said that the Forum's objective was to provide a platform for regular dialogue between the EAC Secretary General and the Private Sector, Civil Society and other interest groups on how to improve the EAC integration process. "The 3rd Forum is an opportunity to widen and deepen EAC integration process and ensure stakeholder participation and inclusivity," according to Hon. Eriyo. She added:"The Forum will provide a space to dialogue on opportunities and challenges provided by the Regional integration process as well as share experiences." Professor Yash Tandon from Uganda, a renowned intellectual and policy-maker among others, will give a key note address on the Forum's theme. Prof Tandon is the former...

Kenya is optimistic that it will meet the October 1 deadline for the signing of the contentious European Union long-term trade treaty. The deal involves the EU and the East African Community. Representatives of the trade bloc meeting in Arusha on Wednesday arrived at a workable solution to outstanding issues which have delayed signing of the pact. “We hope the EU will accept our negotiated level of understanding in this agreement. We are optimistic they will and we shall meet the October 1, deadline,” Mr Nelson Ndirangu, the director of Economic and International Trade at the Ministry of Foreign Affairs told the Nation in Nakuru on Thursday. [caption id="attachment_3529" align="alignleft" width="450"] Red Land Roses growing in a farm in Kiambu County. Anxiety has gripped the multi-billion Kenyan horticulture industry after the European Union expressed worry over products.[/caption] FOURT PER CENT OF EXPORTS Kenya exports flowers to the EU worth Sh46.3 billion and vegetables valued at Sh26.5 billion every year. The EU takes about 40 per cent of Kenya’s fresh produce exports. Failure to sign the Economic Partnership Agreement (EPA) by the October 1 deadline will result in Kenyan goods being subjected to a 12 per cent duty for entering the EU. Mr Ndirangu said the Arusha meeting paved the way for presentation of the bloc’s resolutions to the EU. “There is hope, I can report. After presenting our negotiated position, it will be the EU to respond and we are optimistic that we are signing the agreement by October 1,”...

Recent news reports indicate that trade among East African partner states is growing by leaps and bounds. This is a positive development that regional leaders should seek to build upon and encourage. Rwandan exports to other East African Community countries, for instance, grew significantly in the first half of this year despite a poor showing in global markets. Exports to the EAC amounted to $97.8 million in the first half of 2014, up from $70.7 million in the same period last year. This represented a 38.6 per cent increase. Imports to Rwanda from the regional bloc, on the other hand, increased by 3.7 per cent from $239 million to $247.8 million in the same period. Themain exports included tea, raw hides and skins of bovine, coffee, steel andiron rods, vegetables and malt beer. Major imports were cement, palm oil, fats and oils, fertilizers, second hand clothing and sugar. The growth of trade among East African countries comes against the backdrop of failed negotiations for a new Economic Partnership Agreement with the European Union. The contentious areas have been referred to the political leadership of the two blocs for possible resolution following failure to clinch agreement by the technical teams. Kenyan exporters, in particular, will be badly affected from October, when they will have to start paying taxes on goods entering the European Union if no agreement will have been reached. The other EAC partner states are fortunate to be covered under the Everything But Arms arrangement. One way for East...

DAR ES SALAAM, Tanzania – The East African and Central members states have being agreed to work together through Public Private Partnership (PPP) to revamp the regional infrastructure system in harmonizing regional integration to foster social and economic development in the region. Speaking to invited delegates during the two days 5th East and Central Africa Roads and Rail Infrastructure Summit last week in Dar es Salaam, the Permanent Secretary in the Ministry of Transport, Dr Shaaban Mwinjaka said member states are ready to work together in collaboration with private sector in improving infrastructure system in the region such as roads, railways and airports. “There are a lot of opportunities so let us work together and invest together to foster regional integration and improving infrastructure system that fuel economic developments,” he said. Dr Mwinjaka noted that the government of Tanzania through the ministry of Transport is currently working hard to ensure that the central railway line operates effectively by adapting Big Result Now (BRN) model in the government system. He further said that the government is constructing and rehabilitating the terminal three at Mwalimu Nyerere International airport in order to accommodate approximately 6 million passengers daily. Dr Mwinjaka noted that the ongoing central railway line projects in Tanzania are Dar-Isaka, Kigali-Keza and Musongati with a total investment of $4.891million. He said that the upgrading of the Tanga- Arusha and the new line of Arusha to Musoma it’s currently estimation investment shoot up to $2.019 million which is in line of the...

African is a continent in conflict with itself, when our leaders talk about the diplomatic relations of our countries; we know there is more to what meets the ear. Amongst young Africans we hear loud shouts about Robert Sobukwe`s ideologies about pan Africanism but how willing are African to work together to create an Africa that is independent of foreign aid? African countries would rather export their oil, diamonds and maize to foreign countries rather than to other African countries. Africa can only be freed by the same strategy that has liberated us in the first place as Africans ‘unity’, working together to create a better Africa for all. Africa’s greatest asset is not its gold, it’s not its diamonds, but it is its youth working together beyond the limitation of borders and political dipomacy to create economic solutions that are viable for our people. The main factors that encroach on increasing intra-African trade include regional integration, economic diversification, conflict, infrastructure and border issues. The Motivation of Integration Although intra-African trade is not a panacea for development, it is quite important. It can help the continent’s small businesses to become more competitive by creating economies of large scale and weeding out big useless corporates that are less productive in the African marketplace. It can establish and strengthen product value chains and facilitate the transfer of technology and knowledge via spill-over effects. And it can incentivize and spur infrastructure development and attract foreign direct investment. For these reasons, expanding intra-African trade...

Rail freight tariffs in the East African Community are higher than in any other region of the world, a new survey shows. The 2014 East Africa Logistics Performance Survey notes that this is due to the lack of effective concession agreements as well as the inability by operators to invest in improving efficiency. “A well developed railway system would be the best solution to reducing transport costs,” said Gilbert Langat, the chief executive of the Shippers Council of East Africa. “The region must, therefore, establish clear guidelines to support logistics management for operators and intermediaries.” He said that governments need to invest in transport infrastructure, which will in turn boost international trade. He urged EAC member states to eliminate delays while goods are in transit in order to boost the bloc’s ability to compete effectively in the global economy. Humphrey Kisembe, an economist who was part of the study, said that one of the biggest challenges affecting the freight industry is the lack of transparent charges. “The imposition of surcharges has affected the competitiveness of the sector,” said Mr Kisembe said, adding that the lack of access to credit had contributed to the underdevelopment of small and medium size enterprises as providers of logistics services. Mr Kisembe said the average truck in the EAC covers 5,000-7,500km per month compared with the international average of 12,000 km. “This shows that transport corridors have inefficiencies such as delays at Customs and weighbridges,” he said. Kenya’s Transport Principal Secretary Nduva Muli said laws...

Kenya’s Cabinet Secretary East African Affairs, Commerce and Tourism Phyllis Kandie said Friday the meeting to be held in Nairobi would help resolve contentious issues blocking the signing of the agreement. "Some of the pending issues are at ministerial level and we are working with our partners in the East African Community (EAC) to have the agreement signed in time," she told journalists in Naivasha. The EPAs launched in Brussels in 2002 are aimed at enhancing sustainable growth, increasing production and supply capacities of the African, Caribbean and Pacific Group of States (ACP) countries, promoting structural processing and economic diversification of the ACP states while supporting regional integration. Experts say Kenya stands to benefit from foreign exchange earnings, employment opportunities and penetration to the European Union market with EPAs. The country has enjoyed preferential access to the EU market for the last 38 years through four successive Lome Conventions signed between 1975 to 2000. The intention is to reciprocate the trading terms that the ACP countries have been enjoying since 1959. But the negotiations have faced stiff competition from the civil society and ACP’s trade experts because of the risk they pose to local enterprises. As of 2013, the EU accounted for 17.2 per cent of Kenya overall trade. EU is currently the second largest export market for Kenya as it absorbs close to 25 percent exports and 14 per cent of imports. Kandie identified three contentious areas which various parties had failed to agree on leading to anxiety mainly...

According to the 2014 East Africa Logistics Performance Survey, the main reason is due to lack of effective concession agreements as well as inability by operators to invest to improve efficiency. "However, a well developed railway system should be the best solution to reduce transportation costs," Shippers Council of East Africa (SCEA) Chief Executive Officer (CEO) Gilbert Langat said. "The region therefore needs to establish clear guidelines to support logistics management for operators and intermediaries," Langat said. He said governments need to invest in transport infrastructure to effectively promote international trade, adding that cross border projects will reduce transport costs especially for the landlocked countries. He urged the trading bloc to eliminate the cases of delay so as to improve the ability of the EAC to compete effectively in the global economy. SCEA Economists Humphrey Kisembe said one of the biggest challenges for air freight industry is the lack of transparent air freight charges. "The imposition of surcharges has affected the competitiveness of the sector," Kisembe said. He said lack of access to credit has contributed to the underdevelopment of small and medium size enterprises as providers of logistics services. According to the economist, the average truck in the EAC only covers 5,000-7,500 kilometers per month compared to the international average of 12,000 km. "This indicates that transport corridors have inefficiencies such as delays at customs and weight bridges," Kisembe said. Kenya’s Transport Principal Secretary Nduva Muli said laws governing the railway business are currently been reviewed so as to...