Category: Enhanced Trade Environment

Setting standards in Rwanda’s food industry

Laurent Demuynck has a passion for mushrooms. He calls them “the meat of the poor” because of their high nutritional value. As founder and CEO of Kigali Farms, a Kigali based mushroom processing company, he wants to see Africa catch up with the rest of the world when it comes to growing mushrooms. In fact, he has a vision that in 10 to 15 years, thousands of people in Africa, maybe hundreds of thousands, will be making an income from mushrooms. Kigali Farms is one of 21 Rwandan food and agricultural companies that have recently benefited from global training, known as HACCP, that ensures standards in food safety are reached and maintained. HACCP, or Hazard Analysis and Critical Control Point, is an effective tool to prevent biological, chemical and physical contamination of food, and should eventually lead to a company receiving widely accepted certification. Funded in Rwanda by TradeMark Africa (TMA) and implemented by the British Standards Institution (BSI) in partnership with the Rwanda Standards Board (RSB), the HACCP training aims to provide safety in every part of the food chain from the farmer, to the processor, to the retailer, through to the final consumed product. For the food producers of Rwanda, HACCP certification is one more step towards the coveted goal of exporting their products to the East African Community and beyond. Exports are critical to reducing Rwanda’s trade deficit, yet until recently it had limited scope to test products for mycotoxin (fungal infection) contamination. Instead, they were sent...

South Sudan readies economy for Growth AMID Conflict

The symbols of South Sudan’s key challenges boom overhead every 15 minutes, briefly denying Juba residents the chance of sensible conversation, making paperwork on desks flutter and shake and dust rise on the streets. They are aircraft, commercial flights carrying businessmen and aid workers, and United Nations transport craft ferrying food and people to staunch the needs of more than a million made homeless and thousands killed since renewed internal conflict erupted in December 2013. Residents of Juba have become used to the noise but recognise that the aerial traffic encapsulates the dilemma facing the world’s newest nation as it tries to develop and tap its undoubted potential. “Peace. For South Sudan to really begin to grow, we need peace more than anything else,” says Caesar Riko, the policy and advocacy advisor of South Sudan Chamber of Commerce. “We can grow, even in conflict, but not the way we could if there was peace.” The world’s newest nation was born in July 2011 in jubilation after almost 30 years of war with the Khartoum government in the North but descended into internal conflict in December 2011 when President Salva Kiir accused his deputy, Riek Machar, of plotting to overthrow him. That simmering conflict shut down South Sudan’s key oil fields in the North of the country and has highlighted in cruel focus the need for the country to diversify away from 98% dependence on petroleum for the revenue with which to develop a country of around 12 million people. The...

Trademark East Africa helps fast track aid in South Sudan crisis

They live in a state of suspension under plastic sheets or twigs, under tents if they are lucky, out in the open if they are not. Women and children, men and boys; the only certainty in their lives is uncertainty. These are the human flotsam from South Sudan’s unresolved internal conflict, which erupted in December 2013, sending more than a million running for shelter, food and security, killing 10,000. “It’s a critical emergency,” says World Food Programme (WFP) Logistics Cluster head Fiona Lithgow. “Just getting relief to these people in a country of this size is an enormous challenge, but we are winning.” Relief flights leave Juba airport daily, airlifting or airdropping supplies to U.N. and NGO teams dotted around the compass points of one of Africa’s biggest countries, and the newest country in the world. Almost all of that aid comes by road from faraway Mombasa, or the U.N. logistics base at Entebbe, Uganda. It now gets fast-track clearance under a programme supported by TMA and its partners which has reduced clearance time to one or two days from four-five days before. “The paperwork has been hugely reduced for aid trucks,” says Bennet Obwoya, who oversees the comings and goings of the aid convoys in a small containerized office at the corner of the Nimule Customs area. “The need for proof of payment of taxes for aid, which is tax exempt, has been done away with. Verification of cargoes has been speeded up a lot and things have improved...

Burundi tax success builds confidence, business image and hospital

A gleaming new hospital stands on a hillside in rural Burundi, a tribute to a tax system envied in many parts of Africa and the government’s commitment to home-grown development of one of the world’s poorest countries. “It was built entirely from our own resources,” says Dr Liboire Nigiri, Director General at the Ministry of Public Health. “Before long Burundians won’t have to go abroad for interventions and surgery. They will use their very own hospital.” The 150-bed Karusi referral hospital is the latest gleaming example of the way that the government of Burundi has turned around a corrupt and ineffective tax collection system to comply with the demands of East African Community (EAC) membership and modernise its public spending. The facility which was officially opened in mid-2014 boasts of a gleaming new ambulance parked outside the emergency area, new beds, mattresses, furniture and equipment, flowers budding along its tidy walkways and grass taking root in open areas. “This facility, paid for entirely from domestic funds, would never have been possible without the leadership of the government and the hard work and dedication of the OBR (Office Burundaise des Recettes – Burundi Revenue Authority) says OBR Commissioner General Dr. Domitien Ndihokubwayo.” Over the last four years, the government has moved closer to its target of funding its own spending 100% from its own tax and customs revenue. OBR has been supported by TradeMark Africa as part of its programme to help EAC governments and private sector institutions modernise and improve...

Burundi Bureau of Standards and Quality Control – Modernising Standards to Guarantee Quality and Safety

Slowly, but perceptibly, sediment forms out of a white substance and gathers at the bottom of a test tube in a small laboratory off the main road in Bujumbura. The sediment’s name is fraud. “What you are seeing is the analysis of a milk sample we took from a street vendor,” says laboratory assistant Benoit Glaud. “It’s been diluted with flour and with water, which is no surprise to us. Basically, Burundians are victims of massive fraud in foodstuffs. Glaud is a consultant working to modernize the tools and methods of the Burundi Bureau of Standards and Quality Control (BBN) to help exporters compete in the East African Community (EAC) market and to accustom producers and consumers to the idea that standards are not an extra tax but a guarantee of quality and safety. “Having the BBN stamp on your product is vital for the free movement of goods within the (East African) community,” says Damien Nakobedetse, BBN’s Director-General. “Without laboratory test results and the BBN stamp, it is very difficult to sell a product beyond the local market. Without certification, many countries will refuse imports or demand further analysis, which is expensive.” BBN has been around for two decades but its mission gained added urgency with membership of the EAC and the need for strict standards in the emerging single customs area the bloc is establishing. It was a case of standardize to survive. Across the community, TradeMark Africa (TMA) is helping national standards offices modernize, develop and introduce...

Setting the East African Standards for Increased Trade and Prosperity

The five Partner States of the East African Community (EAC) are currently involved in activities related to the conformity of products traded within the region. The process which includes the preparation, approval and adoption of the standards related to those products is undertaken by the different national standards bodies in each one of the partner states. A common definition of a standard is a document approved by a recognized body that provides for common and repeated use rules, guidelines or characteristics for products or related processes and production methods, for which compliance may or may not be mandatory. Standards play an important role in regional integration. “Standards are vital to integration,” says José Maciel, Director of Non-Tariff Barriers (NTBs) and Standards at TradeMark Africa (TMA). “In addition to safeguarding the health and safety of the consumers and the environment, standards can cut the cost and time of doing business by huge amounts. In that sense, they are central to the future wealth of the EAC.” All across the five-nation regional economic bloc, TMA is helping national partners harmonize the standards of the most commonly traded goods in the region so that they can cross borders unimpeded by questions about their authenticity or reliability or origin. These include some of the most-traded goods in the EAC such as tea, coffee, iron, petroleum and edible fats and oils. TMA is assisting the EAC national bureaus of standards, the private sector and the EAC Secretariat on two levels: national and regional. At the...

Rwanda targets exceptional food safety standards to boost exports

Rwandan food producers are submitting themselves to the most stringent of global tests –good enough even for astronauts in space - to get a stamp of approval that will enhance their standing in world markets and help increase badly-needed exports. “This certification has increased consumer confidence and our confidence too,” says Dative Giramahoro, of Sosoma Ltd, which mills maize. “We sell in Kenya’s Nakumatt supermarket in Kigali, so now there is no reason why we cannot sell to any Nakumatt in Kenya,” she says. The certification is part of a programme overseen by the Rwandan Bureau of standards (RBS) to help the local food industry eat into the country’s 4-1 trade deficit with the rest of the world by increasing exports to the East African Community (EAC) and beyond. “There is no doubt that the certification we have received will help us increase exports and we see the European Union (EU) and Canada as primary targets, even the United States,” says, Anna Uwiganza, head of Kinazi Cassava Plant ltd. The standards are out of this world. They were pioneered by the U.S. Pilsbury Company, the U.S. army and the U.S. space programme NASA to guarantee the safety of any food that astronauts might consume in space. Called Hazard Analysis and Critical Control Points (HACCP), the system is a set of preventive analyses to prevent bacteria getting into the food chain at every point from harvests to packaging and is the most widely used food safety standard in the world today....

Tanzanians topple trade barriers with their cell phones

Two years ago truck drivers plying the highway from Dar es Salaam through Tanzania could only fume and argue when they ran into bureaucratic roadblocks, which slowed them to a halt. Today they get around those barriers – with their cell phones. A trailblazing scheme developed by the Tanzanian business community allows frustrated operators to report Non Tariff Barriers (NTBs) slowing their freight by SMS message and online – and it is working. “Of all the NTBs that have been reported to us, 42%, that’s nearly half, have been resolved,” says Shammi Elbariki, NTB project coordinator at the online system developed by the Tanzanian Chambers of Commerce, Industry and Agriculture (TCCIA). The award-winning scheme, developed with help from TradeMark Africa, has attracted attention from the transport industry across the region as it struggles to overturn NTBs inherited from the days before the East African Community (EAC) project was launched. “Uganda has already asked about the technology used so that it can devise a similar scheme, and there is similar interest across the EAC because NTBs are an EAC-wide problem,” says Josaphat Kweka, TradeMark Africa (TMA) Country Director, Tanzania. EAC member governments are committed to abolishing NTBs eventually to create a seamless single market that will spur trade and prosperity and TradeMark Africa (TMA) has helped create National Monitoring Committees (NMCs) in every state to accelerate the process. Under the TCCIA scheme, transport operators, freight forwarders and clearing agents are trained how to report NTBs both online and through SMS and...

Rwandan truckers see Tanzanian barriers to trade reduce

Rwanda’s small trucking industry hasn’t had much to shout about recently, unless it was to complain about interminable roadside delays due to bureaucracy, corruption and paperwork. Until now. Some neat diplomatic footwork with neighbouring Tanzania has given Rwandan truckers some good news in an industry where time is money, costs are high, and margins small and the playing field tilted towards the regional giants and their huge trucking sectors. “Yes, some good news for a change,” says Theodore Murenzi, head of the Rwanda Truckers Association. “Tanzania has dropped a road toll which penalized Rwandan trucks on the central corridor. It’s not 100% good news, but it’s a real start.” A study into the competitiveness of Rwanda’s road freight industry highlighted what Rwandan truckers had long complained about – Tanzania charged Rwandan trucks a $500 transit toll yet Rwanda charged Tanzanian registered trucks only $152, putting Rwanda’s drivers at a $348 disadvantage every return trip and adding to already high costs. Such bureaucratic hurdles to free trade are known as Non Tariff Barriers (NTBs). The EAC is committed to eliminating them altogether, but the process is laborious and the barriers cemented in protectionism. “We registered this as an NTB at the level of the EAC, but the harmonization of the road toll at EAC level is not decided,” says Vincent Safari, head of the National Monitoring Committee on NTBs. “But the study was evidence-based, factual and detailed and we were confident it would succeed, somehow.” After validation of the findings of...

New breed of freight professionals spur trade

An innovative training program for clearing agents is growing a new breed of professionals to spur trade and prosperity in East Africa. “Where you see trade grow you see prosperity take root. By training the key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop” said Silas Kanamugire of TradeMark Africa (TMA). Run by the East Africa regional freight forwarding governing body (FEAFFA), the program is quickly churning out a fresh generation of professionally trained freight forwarders to quickly expand the ever-growing potential for trade within the East African region. With TradeMark Africa (TMA)’s support, FEAFFA aims to transform the job of freight clearing and forwarding into a recognized profession and to standardize and regulate this key position to streamline the process of doing business in the five-nation bloc. “My clients are now satisfied with the fast clearance of their goods. We are now not seen as unreliable or barriers to the trade process, but rather partners who can help grow the prosperity of this region”, Said Xavery Komba, CEO of Victorius Tanzania Ltd, one of the trained agents. “With more than 40% of business costs accruing to transport and logistics, there is increasing appreciation of the importance of the sector in international trade. I am pleased this program will raise professional standards in the industry with the aim of increasing trade and prosperity in the region,” said the Federation’s Regional Executive Officer, John Mathenge. Up until recently,...