Archives: Stories

Helping women with small businesses to compete in the East African market

One of TradeMark Africa’s (TMA) objectives, towards its ultimate goal of reducing poverty by increasing trade in East Africa, is improved cross border processes for small traders, especially women. Empowering women in the East African Community as part of the regional integration process is essential to TMA’s goal of improving business competitiveness. Its long-term aim is, through policy change, to eliminate barriers that affect women in trade. In Uganda, TMA is contributing to this by advocating for policy change that will assist women cross border traders and by building capacity, specifically through women’s organisations. “Women need help because of their historic marginalisation”, said iCON Programme Director, Ben Matsiko Kahunga. “They need both confidence and means. If a woman is processing and packaging juice what does she need to cross borders? How does she access quality certification? How can she get advice about packaging, branding and standards?” That is a question that had never occurred to Esther Kabengano, a 37 year old mother of two, living in the Ugandan capital Kampala, where she runs a small business processing and selling fruit juice. She was just too busy trying to survive. By any standards, Kabengano’s business is small, operating from her home where she makes 10 litres of juice at a time (10 litres being the size of the container she uses to hold it) and which she sells on the streets of Kampala by the cupful. Her profit is Ush 4,000 per day - about US$1.5. The profits are not enough...

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....

Landmark Port Charter to Unlock Northern Corridor Trade Potential

‘The gateway to East and Central Africa’ and ‘the regional hub of international trade’ is how the Kenya Ports Authority website proudly introduces the port of Mombasa on Kenya’s coast. It goes on to declare that the port is ‘Growing business, enriching lives’ - a commendable role which should have equally laudable consequences for the people of East Africa as successful trade translates into reduced poverty. Yet it wasn’t always so. While the port has been the gateway to East Africa for the last 100 years, there were times when business in the region was obstructed due to congestion and delays at the port that resulted in overdue consignments, often of raw materials needed for manufacturing. Anthony Weru, Senior Programmes Officer of the Kenya Alliance of Private Sector Associations (KEPSA) recalls December 2012. “Some of our members had to lay off staff”, he said, “Because there were no raw materials to process. They were all at the port.” Only 18 months later Weru is telling a different story. “For the last six months we have seen a tremendous change and improvement in efficiency at the port due to political will,” he said. “Cargo clearance, either to or fro, is now taking an average of four days to its destination (in Kenya) when it used to take 14.” All depends on port efficiency. For the private sector, which in Kenya consists of up to 90% of the work force, the ability to forecast when raw goods will arrive makes all the...

ECTS FOILS THEFT OF SOUTH SUDAN BOUND CARGO

The thefts were well planned; wait for the truck to get to a hill, open the doors and steal merchandise. However, the thieves did not know that the trucks were being monitored. No sooner had they tampered with the electronic seals than messages were sent to the central monitoring center (CMC) in Nakawa, Kampala. The incidents, according to Customs officer, Dunstan Luwaga, occurred last Wednesday and Thursday night. [caption id="attachment_3494" align="alignleft" width="624"] Kambali Kilondelo, a truck driver talks to the press at Nakawa[/caption] Whilst on duty, an officer in the CMC Wednesday night received an alert from a truck travelling on the Gulu highway, according to Luwaga. The driver, he said, was told to stop to ascertain what had happened. “When I walked to the back, the padlock was broken and the seal had been tampered with,” John Muteba the driver of the vehicle carrying merchandise stated. “I am so glad that the Electronic Cargo Tracking System (ECTS) helped me save the cargo. I would probably be in jail now.” He was headed to South Sudan. And on Thursday night, a similar incident happened between Matugga and Bombo on the same highway. Driving sugar to South Sudan, Kambali Kilondelo’s truck was vandalized.   [caption id="attachment_3495" align="alignleft" width="393"] John Muteba and his colleague stand outside their vehicle[/caption] Like Muteba, he was notified and he stopped. He walked to the back of the truck to the sight of 15 bags of sugar scattered on the road. The sugar, which had been grabbed...

The single tourist visa – a win-win all round

East Africa as a region contains some of the world’s most celebrated tourist destinations, from the wildebeest migration through Kenya and Tanzania to the iconic gorillas of Rwanda’s Rwenzori Mountains and Uganda’s Impenetrable Forest. Combine these with the beaches of the Indian Ocean, the highest mountains and longest river in Africa, the deep lakes of the Rift Valley, and an abundance of wildlife (including nearly 2000 bird species), and you have a tourist destination made in heaven. Yet the number of visitors East Africa (Burundi, Kenya, Rwanda, Tanzania and Uganda) receives annually is a fraction of those of its competitors in Africa, such as South Africa and Morocco. Allan Ngugi of TradeMark Africa (TMA) puts much of this down to cost, including the cost of individual visas to each country. For a family of five to visit just three countries in East Africa, he noted, it would cost them about $750 in visas alone, not to mention inconvenience. Add that to the cost of flights, hotels and safaris then those tourists who want to visit more than one country in East Africa are instantly discouraged. East Africa Tourism Platform launched Realising that East Africa had to be positioned as more competitive tourist destination, especially as tourism is a key income earner,an East Africa Tourism Platform (EATP) was launched in April 2012 with the support of TradeMark Africa (TMA). Its mission is to promote intra and inter-regional tourism through advocacy, marketing, skills development, research and information sharing” and it works closely...

Technology and partnerships assist the EAC to get things done

The East African Community (EAC), headquartered in Arusha Tanzania, is defined as the regional intergovernmental organisation of the Republics of Burundi, Kenya, Rwanda, the United Republic of Tanzania, and the Republic of Uganda. Heads of Partner States meet at a special summit twice a year when they give “general directions and impetus as to the development and achievement of the objectives of the Community” . However, the first item on the agenda of any EAC summit is to review past decisions by member states and monitor their implementation progress: have they been implemented, are they ongoing or has no action been taken? The obligation to review past decisions, as the first item on the agenda of every EAC Summit, was passed at the November 2013 Summit. That responsibility has now been made easier by the introduction of the East African Monitoring System (EAMS), a computerised system that records all decisions made since 2001 up to the present day and which focuses on those decisions that still need to be implemented – presented in dashboard format. Holding Partner States accountable The East African Community Secretariat, with support from TradeMark Africa (TMA) and GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit - Germany’s government-supported development agency),developed EAMS capture the progress of implementation of EAC Council of Ministers decisions, by Partner States. . This fosters accountability by the Partner States on the decisions they make. Delays in actioning decisions that have been agreed by all Partner States, such as removing non-tariff barriers, can be both...

Technology and Progress Unlocks Trade Corridor

Mombasa-Kampala-Kigali Highway It’s 1,200 km from the Kenyan port of Mombasa to the Ugandan capital, Kampala and another 525 to the capital of Rwanda, Kigali. But with a few strokes of the politicians’ pens and some clicks on a mouse, that distance just got dramatically shorter. “It used to take 18 days or more for one of our trucks to get here from Mombasa,” said Kassim Omar, Chairman of the Uganda Clearing Industry and Forwarding Association (UCIFA). “Now the same journey takes four days, sometimes even three.” The reduction is due to the decision at a Northern Corridor infrastructure summit by the Presidents of Kenya, Rwanda and Uganda to speed rapidly growing freight along their key trade route and the implementation of a variety of hi-tech systems that have slashed paperwork and time. The combination has stripped away a lot of the bureaucratic red tape that snarled the free flow of trade in the East African Community and contributed to some of the highest transport costs in the world, accounting for up to 40% of the price of goods to consumers. In October 2013, Presidents Yoweri Museveni of Uganda, Paul Kagame of Rwanda and Uhuru Kenyatta of Kenya agreed to implement a Single Customs Territory (SCT) between them as members of the East African Community. Tanzania and Burundi, say they followed suit at the Summit in November 2013. At a stroke, the agreement removed multiple weighbridge, police and customs checks along the Mombasa-Kampala-Kigali route and introduced computerised clearance and electronic...

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...