Djibouti has formally opened one of four new ports designed to cement the tiny Horn of Africa nation's position as a continental hub, a statement from the ports authority said on Wednesday. Doraleh Multipurpose Port has been substantially upgraded as part of a Chinese-backed plan to establish Africa's largest free-trade zone that can handle $7 billion of goods a year. "The port of Djibouti is a gateway to one of the fastest growing regions of the world with 30,000 ships transiting the port each year," the statement said. "Located on two of the three busiest shipping routes in the world, the port provides a strategic platform for maritime activity connecting Asia, Africa, and Europe." Tiny Djibouti, with a population of 876,000, has long punched above its weight. It hosts large U.S. and French naval bases; China is also building a naval base. Djibouti also handles roughly 95 percent of the inbound trade for neighbouring Ethiopia, population 99 million. Doraleh's bulk terminal can handle 2 million tons of cargo a year, and offers space to store 100,000 tons of fertilizer, 100,000 tons of grain, and warehouses for other goods. The break bulk terminal can handle 6 million tons of cargo annually, the statement said, and there are 40,000 slots for vehicles at the RO-RO terminal. Two other ports designed to export salt and potash will open next month. Djibouti mainly handles goods from Asia, representing nearly 60 percent of traffic, the statement said. In 2015, overall traffic to Djibouti increased 20...

The region's manufacturing sector has huge potential and collective effort will be crucial for countries to exploit it, Prime Minister Anastase Murekezi has said. Murekezi was speaking at the official opening of the second East African Manufacturing and Business Summit in Kigali yesterday. He told regional policymakers, industrialists and other participants attending the summit that the East African Community has set out a target of ensuring that by 2032, the manufacturing sector will contribute 25 per cent to the bloc's GDP. Currently, manufacturing accounts for just 10 per cent of the GDP in the region. Murekezi said it is expected that by 2032 the bloc will have diversified the manufacturing base and raised the value of local content of manufactured exports to at least 40 per cent from the currently estimated value of 8 per cent. Source: All Africa

Regional manufacturers are currently in Kigali to chart ways of revitalising the sector and help increase its contribution to growth and job-creation in particular. The manufacturers, who are attending the second EAC Manufacturing Business Summit, want East African Community governments to put in place sector-supportive policies to drive growth. The East African business community blames the minimal contribution of 10 per cent to the bloc’s GDP on the lack of supportive policies and deliberate reforms to spur the sector’s growth. Other challenges such as high power tariffs, poor roads and high cost of air transport also need to be addressed by EAC partner states for the bloc to register meaningful growth, create more jobs for the youth and reduce its dependence on imports that erode foreign exchange reserves. In addition, the call by the East African Business Council for the region to produce “what we consume and consume what we produce” is timely. This challenges member states to promote value-addition initiatives, particularly among SMEs, to deepen and broaden the industrial sector. It’s such efforts that would lay a firm foundation that would allow for improved performance of the manufacturing sector. However, regional governments must be ready to review laws that discourage trade and fair competition. The EAC Heads of Summit meeting held in Dar es Salaamm, Tanzania on Sunday  raised the issue of non-tariff barriers and the declining trade among member states. This calls for bureaucrats in the region to revise policies that affect manufacturing and trade within the bloc....

The discovery of oil, gas and mineral deposits in East Africa has paved the way for ambitious infrastructure projects that have attracted at least $3.4 billion from international lenders in the past year. The World Bank, the European Union and China are the region’s main infrastructure financiers. According to the Deloitte African Construction Trends Report 2016, Kenya had initiated the highest number of projects, 11, followed by Ethiopia and Uganda, with nine projects each, and Tanzania with eight. China and the EU have been the biggest financiers of Kenya’s infrastructure projects, with roads taking the biggest share of the funds. The EU, in partnership with other lenders — the German Development Bank (KfW), the European Investment Bank (EIB) and the African Development Bank — is funding key roads on the Northern Corridor, including the $151.7 million Mombasa-South Sudan link road and the $152.2 million Mombasa-Mariakani road. Walter Tretton, head of infrastructure in the EU delegation to Kenya, said the new link roads are a game-changer, in some places cutting the journey from days to hours. “The new roads will also help reduce congestion while improving the competitiveness of the port of Mombasa,” Mr Tretton said. Northern Corridor The EU, through the Africa Infrastructure Trust Fund (EU-ITF), has given $22 million to fund the Mombasa-Mariakani road while KfW and EIB have given $55.2 million each. Kenya is expected to inject $19.8 million. The proposed Kitale-Morpus road in western Kenya, which is expected to eventually link Tanzania and South Sudan through Kenya, will be...

Dar es Salaam — Ugandan President Yoweri Museveni yesterday dropped strong hints on why he chose Tanzania over Kenya as the exit route for its oil pipeline. Speaking in Dar es Salaam yesterday at the signing of a joint communique that signals conclusion of negotiations between the two countries over the pipeline President Museveni indicated that his personal relationship with Tanzania, and especially, his role as a follower of Mwl Julius Nyerere, was vital in pushing him towards Tanzania for the pipeline deal. President John Magufuli's no nonsense, walk-the-talk leadership style seems to be another deciding factor. "I have been a follower of Mwalimu Nyerere since 1963. And the main reasons that I supported Mwalimu were his stance against tribalism, patriotism, his support for Africa liberation movement and his stance on the East Africa Federation," President Museveni said. The 1,443 kilometres long pipeline dubbed the East African Crude Oil Pipeline (EACOP) from Kabeele (Hoima District in Uganda) to the Tanga Port was initially expected to pass through Kenya. When Uganda opted for Tanzania last year the reasons cited were the low cost of the pipeline construction due to the fact that the Tanzanian terrain is less rugged, the existence of a port at Tanga as opposed to constructing a new one at Lamu and less land compensation due to lower price of land in Tanzania. Speaking at the same event yesterday in the State House President Magufuli repeated these factors as having had a sway over Uganda's choice for Tanzania....

What are the primary non-tariff barriers in Kenya? FRANK MATSAERT: The non-tariff barriers that affect Kenya the most are often imposed by Kenya itself. The first problem is weighbridges with the amount of delays, traffic congestion, overloading and transparency. The second problem is roadblocks, particularly on the trade corridor between Tanzania and Kenya. The third problem revolves around border institutions, particularly those with Tanzania and Uganda. Here, the border crossings open at varying times and when trucks arrive, they need to wait until the crossing opens. They also often still need to show physical rather than electronic documents, which hinders efficiency. Lastly, there’s also an issue with standards recognition between countries, and sometimes there are multiple institutions required to export and move goods around. This obviously creates quite a lot of complications for companies doing business on both sides of the border, and these all heavily affect the country’s neighbours. As far as remedies go, weighbridges can be replaced with modern weigh-in-motion bridges. Not only that, they can be linked across borders as well. To remedy the roadblock issue is a bit trickier, but it should definitely include more monitoring of roadblocks and making the private sector more aware of the cost that they incur for companies. For border institutions, revenue authorities should simply agree on a standard 24-hour opening for busy borders so traffic congestion can be avoided. Document processing should also be automated. For standards recognition, the main driver for efficiency will be harmonisation and mutual recognition. How...

For many years Rwandans have been dependent on second hand clothes imported from Europe and the United States. They are affordable and their high demand kept traders in business. However, the East African Community (EAC) partner states have agreed to systematically phaseout importation of second hand clothes in a way that will not hurt people dealing in them. In the Heads of State summit that was held in Dar Es Salaam, on May 20, partner states adopted a method to promote local apparel industries that will help meet local demand and indirectly discourage import of second hand clothes. “Partner states agreed that for now, the best approach to phaseout second hand clothes is by supporting local industries instead of banning importation of the clothes once and for all,” Francois Kanimba, Minister of Trade, Industry and East African Community Affairs today. In February 2016, five heads of state in the East African Community – Burundi, Kenya, Rwanda, Tanzania and Uganda – agreed to bring about a total ban on imports of secondhand clothes by 2019. While commenting on motives of the ban then, Rwandan Minister of Finance and Economic Planning Amb. Claver Gatete said that ending the trade was not just about industry, “it is just not acceptable according to our dignity.” “Every year, we spend over $15 million to import second hand clothes. Wearing such clothes is not worth our value,” said Claver Gatete, Rwanda’s Minister of Finance and Economic Planning. However, the EAC has since realised that the ban...

Dynamar B.V. of Alkmaar, The Netherlands, has recently issued another report in its Container Markets and Trades series: the fourth biennial edition of the “East & Southern Africa (worldwide) Container Trades”. Salient details and some of the interesting findings of the study are discussed in this review. West Africa West Africa is clearly moving into the direction of maturation. Compared to East Africa, the ships are bigger, there are more carriers and there is a substantial presence of international port operators. Currently, 112 box ships sail the core Asia-West Africa routes. Deployed by ten different carriers, their average capacity is 5,300 TEU, with the biggest ship measuring no less than 13,100 TEU. East Africa East Africa still has clearly some way to go compared to West Africa. With 2,900 TEU, the average of the 52 container vessels serving the area from Asia is little more than half the size of its West African sister. Including the largest 4,900 TEU unit, they are operated by nine different carriers. Hub and spoke is not practiced in East Africa. Hutchison Port Holdings (Dar es Salaam) was the single foreign terminal operator in the region until, recently, DP World started operating Berbera and sister company P&O Ports announced to develop Bosaso. Mombasa, the region’s largest outlet, is operated by its port authority. Defunct, but increasingly served Somalia may still be considered partly defunct, ever more containerships are coming to its ports. Eight different services are concerned, operated by six carriers: CMA CGM, Emirates Shipping,...

The European Union (EU) will continue to offer its assistance, to the best of its abilities, to the East African Community (EAC). The Head of the EU Delegation to Tanzania and the EAC, Amb Roeland Van de Geer, said that over the seven year period from 2014 to 2020, the EU and the EAC were addressing key challenges in East Africa by jointly implementing an ambitious development programme through the 85 million Euro 11th European Development Fund. Amb. Van de Geer further said that, in addition, EU Member states were also making available considerable amounts in development support to the EAC. “However important aid may be, trade and investment are crucial for a better future for all East Africans,” said the envoy. Amb. Van de Geer said the EU would continue to partner with the EAC in development cooperation and the promotion of peace, security and democracy in the East African region. He noted that the two blocs had witnessed increased cooperation over the past two decades, adding that the wide ranging cooperation would continue in the political, economic and developmental fields. Amb. Van de Geer was addressing guests during a cocktail event to mark the Europe Day 2017 at the EAC Headquarters in Arusha, Tanzania. He acknowledged that despite many years of unprecedented economic growth, Europe today suffers from serious economic difficulties. “Difficult as the times may be, our Union, built on solidarity and on the strong commitment to peace and development, see these tough times as an opportunity...

Speaking at the 18th Ordinary Summit of the of the Heads of State at Dar es Salaam State House minutes after assuming the EAC chairperson seat from Tanzania’s John Pombe Magufuli, President Museveni explained the three pillars for integration. “Integration is about three issues; prosperity, security and ‘ubuntu’ (brotherhood)”, the President said. Giving a synopsis of the origins of the East African Community, President Museveni praised Mwalimu Julius Nyerere for being steadfast in the push for regional unity even when his immediate post-colonial peers developed cold feet. “In 1963, Kenyatta (Jomo), Nyerere and Obote (Milton) met in Mbale, Uganda and declared there would be a political federation before the end of that year,” said President Museveni. “Obote and Kenyatta developed cold feet by the end of 1963 but Nyerere insisted on working for the EAC. It is how I became a Nyerere supporter.” He cited Mwalimu Nyerere’s decision to unite Tanganyika and Zanzibar in 1964 as evidence of commitment to unity and ultimately the region’s prosperity. “There was a revolution in Zanzibar and an opportunity offered itself. Nyerere and Karume formed Tanzania. It has survived all this time. Unity of Tanganyika and Zanzibar has given more opportunity of people the island to come to the mainland and vice versa,” he said. Integration for prosperity “Integration is important for prosperity. It is not a luxury. It is not whether I like you or not,” President Museveni said before illustrating his argument using the relationship between Kenya and Uganda when the latter’s...