The meeting is held during the “Africa Industrialization Week”, organized by the African Union from the 18th to the 22nd November 2019, according to the press statement from AFZO. The attendees include over 220 delegates representing 43 countries attended this important event, including 60 African economic zones, 30 experts, as well as several representatives of governmental authorities, international institutions and public and private organizations. Several international speakers representing international and financial institutions such as UNCTAD, UNIDO, UNECA, AfDB etc. shared during this event their expertise on effective means for economic zones development in Africa. the statement noted that various topics related to challenges and trends of African economic zones were addressed including strategic directions and effective governance model, contribution of economic zones for FDI growth and job creation, importance of logistics competitiveness within economic zones, skills development and training. The opening ceremony of the Africa Free Zones Organization’ 4th Annual Meeting was cochaired by M. Albert Muchanga the Commissioner for Trade and Industry of the African Union Commission (AUC), Ms Dagmawit Moges the Minister of Transport of Ethiopia, M Mehdi Tazi Riffi the President of the Africa Free Zones Organization. Serving the development of Economic Zones in Africa AFZO was founded back in 2015 by Tanger Med along with other African economic zones. Africa Free Zones Organization brings together the leading African economic zones and institutions in charge of the development, management and promotion of economic zones in our continent. The Africa Free Zones Organization aims to ensure: – Representation...

Tea  and horticulture are among the top export earners in Kenya and the government places a lot of premium on these sectors, out of Sh.612.9 b Kenya earned from her total exports in 2018, the Country made Sh.123.7b from tea exports alone. The Principal Secretary (PS) State Department of Trade, Dr. Chris Kiptoo speaking on Sunday at James Finlay’s (JFK) in Kericho, said that from the earnings the tea industry alone contributed approximately 1.5 percent to the National Gross Domestic Product (GDP) in the year ending 2018. He  said that, the horticultural sector contributed approximately 1.8 percent to the GDP in the same year earning the country Sh. 153.7b, accounting to 25 percent of the total exports in the same year. The  PS  said that the country earned Sh. 113b from cut flowers alone accounting to 18 percent from the total exports in the Country. Dr.Kiptoo said that the tremendous achievement were realized due to the efforts by the tea and horticultural exporters including the James Finlay’s Kenya (JFK) who have continuously ensured that the tea and horticultural industry and cut flowers brands remains internationally competitive. The PS reiterated that the government is implementing various strategies and policy initiatives among them, the National Trade Policy, The Integrated National Export Development and Promotion Strategy (INEDPS) and the Agoa strategy, all aimed at increasing market access and diversifying exports from Kenya. “INEDPS has prioritized Tea and Horticultural sectors as one of the key drivers in achieving its target of an average annual...

The umbrella organization of the private sector of the East African Community (EAC) on Tuesday called for the elimination of non-tariff barriers within the economic bloc in order to boost intra-regional trade. Nicholas Nesbitt, chairman of East African Business Council (EABC) told journalists in Nairobi that the six-member trading bloc has achieved many milestones to facilitate trade. "There are still several challenges to be addressed, including reduction of non-tariff barriers, protectionist tendencies by nations that are hindering the expansion of intra-EAC trade," Nesbitt said. The EABC said that it is committed to advocacy that is aimed at making east Africa a leading trade and investment destination within Africa. "As the voice of the private sector in East Africa, we are committed to driving the integration process through high-level public-private dialogue engagement and platforms," he added. Nesbitt added that cross-border trade could be further enhanced by lowering of the cost of air travel among the member states. Source: Xinhau

The East Africa Business Council Is Now Calling On The East African Heads Of States And Their Governments, To Oversee A Harmonized Business Tariff In Order To Ease Businesses Transactions Among The Member States. Speaking To The Press Earlier Today While Briefing On The Upcoming Business Summit That Will Be Held In Arusha Tanzania On 30TH November Of This Year, KEPSA Chairman Nicholas Nesbitt Says That The Significant Growth Of Trade In East Africa Can Be Attributed To Removal Of Trade Barriers In The Region. He Also Said That Not All Member States Seem To Agree With The Common Tariff But They Are Hopeful They Will Consider The Request. Source: KTN News

East Africa’s private sector players are concerned by the slow pace of resolving a common external tariff (CET) regime which is expected to usher in a free trade zone. A free trade zone will increase intra East African Community (EAC) trade, as there will be no duty on goods and services imposed amongst them. The regime will also agree on a common CET, where imports from countries outside the bloc will be subjected to the same tariff across partner states. Though Nicholas Nesbitt, the chair of East African Business Council, did not directly refer to the frustrations, it is an inference taken out of his statement when he said the issue was creating a “dilemma.” Council agenda Nesbitt said finalising the review on CET was part of an item on the council’s agenda, to be presented to the EAC council of ministers for delivery of quick wins for the region. “There are ongoing discussions whether to adopt a three-band or four-band structure with the highest rate of 35 per cent CET. The challenge is if you are a manufacturing country, you will want a high CET while trading countries will want a low CET to import finished goods for your citizens. Therein, lies the dilemma,” said Nesbitt. The implementation of CET is behind schedule, as it was to take effect on July 1, this year. The bloc’s member states had agreed there be a CET of zero per cent on raw materials and capital goods, 10 per cent on intermediate...

Intra-African trade will increase by 52.3 per cent under the African Continental Free Trade Area (AfCFTA), according to the African Trade Report 2018. The report, released by a pan African financial institution, Areximbank, the value and volumes of traded goods and services are also expected to more than double within the first decade of implementation, it has been revealed. Trade experts say this will happen if the implementation “is accompanied by robust trade facilitation measures”. According to the report, removal of all tariffs will lead to welfare gains of $3.58 billion. The Gross Domestic Product (GDP) is anticipated to increase by 0.65 per cent, volume of exports grows by 2.94 per cent and imports increase by 3.13 per cent. However, removal of all tariffs and all non-tariff barriers (NTBs) will lead to a welfare gain of $17.95 billion, 3.15 per cent growth in GDP, 5.2 per cent growth in exports and 6.59 per cent growth in imports.

The owners of Dubai Ports (DP) World Kigali Logistics Platform, a new modern inland cargo handling facility, are considering the feasibility of running it as a regional e-commerce hub. The $35 million facility, launched in October this year, sits on 13 hectares and features an Inland Container Terminal (ICT) with ample warehousing capacity, a container yard, administrative and services buildings, and parking spaces. Nadya Abdullah Al Kamali, Chief Executive of Customs World, told The New Times here that they are working on aligning the Kigali operations with e-commerce activities. She added that the facility is being marketed as an avenue to serve the regional market as a one-stop-shop facility. “We have big plans for the Kigali port, which is a state of the art facility. The Government has been very cooperative in its set-up, we want it to serve as a regional facility,” she said. She was speaking to this reporter on the sidelines of the Global Business Forum underway in Dubai. This comes at a time when the Dubai-based Customs World is in the process of selecting four hubs in Africa for its Dubai Silk Road Strategy, which seeks to increase UAE’s involvement in transport and logistics services across the globe. Its chief executive, however, did not disclose the countries they are in negotiations with at the moment. With its services currently spanning about 65 countries across the world, the holding company recently launched an initiative dubbed World Logistics Passport to boost the role of the Dubai Silk Road programme, which paves...

Ugandan traders have missed 440 billion Shillings in potential earnings between March and September 2019, a period during which Rwanda has maintained a closed border at Gatuna. This is according to a compilation of figures from Bank of Uganda. The figures, compiled monthly, show that traders in Uganda earned a paltry USD 8.3 million (31 billion Shillings) in the seven months to the end of September 2019. This is less than the USD 128.7 million (471 billion Shillings) that Ugandan traders earned in the same period last year when the border was open. Ironically, figures show that Rwandan traders earned more from Uganda compared to what their counterparts in Kampala earned from Rwanda. They clinched USD 9.98 million (36 billion Shillings) in the same period, up from USD 12 million earned when the border was open.  The figures don’t account for the informal trade between both countries. For Uganda, the figures are a pointer to how destructive the impasse has been to the free-flow of goods and services, the hallmark of the East African Community integration. Today November 18, 2019, both countries were expected to meet in Kampala to discuss the border opening. But Rwanda called off the meeting adding another layer of uncertainty on when trade can resume. Isaac Shinyekwa, a researcher on regional integration said in the long run, both countries will resolve their issues but there is still an inability for two countries to figure what they want exactly. He said there were more deep-seated issues that...

Air India is set to resume direct flights between Mumbai and Nairobi on November 27 following a two-month delay. The direct flights were to begin on September 27 but were delayed to this month due to operational hitches. “The planning for flights usually takes time and that is why there were operational delays. But all is now set for the flights this month with air tickets currently being sold...The maiden flight is scheduled to depart Mumbai for Nairobi at 6.25 am (local time),” said Indian’s High Commission to Kenya in a statement. India’s national carrier is scheduled to fly four times a week between Nairobi and Mumbai and will cut travel time from between 10 and 11 hours to six hours. This will save travellers hours spent on flights that usually involve long layovers in Dubai, Middle East. The commission notes that the flights are expected to shore up trade between India and Kenya as well as other East African Community countries. Trade between India and Kenya is estimated at $2 billion annually. According to 2018 data from India’s department of commerce, Kenya exports to India grew from $7.2 million to $137 million in 2017. The data also indicates that India imports to Kenya went up from $1.974 billion in 2017 to $2.071 billion last year. Air India used to operate directly between India and Kenya but later abandoned its operations. Some of the key economic sectors that are expected to greatly benefit from the Mumbai-Nairobi direct flights include tourism,...

Kenya is losing about Sh100 billion yearly in freight charges for imported cargo, which is paid to foreign shipping lines docking at the Port of Mombasa. Last year, the port made a cargo record of 1.3 million containers leading to a freight payment of Sh78 billion. Each of the standard containers is paid a minimum freight rate of $500 (Sh50,000). Also every year, the port receives about 130,000 units of second-hand vehicles which attract freight charges of Sh10.4 billion, all of which is repatriated back to foreign countries where the shipping lines ferrying them are registered. The reason Kenyan is not getting a share of this huge amount of cash is simple; the country does not have a national shipping carrier that would enable it to benefit from the charges levied on imported cargo. Experts say such a local carrier will be to shipping what Kenya Airways (KQ) is to the aviation industry. To address this situation, cargo importers and other players are calling on the Kenyan government to introduce the Cabotage law to save them from paying billions to foreign firms. ‘Cabotage laws apply to merchant ships in most countries that have a coastline, to protect the domestic shipping industry from foreign competition, preserve domestically-owned shipping infrastructure for national security purposes, and ensure safety in congested territorial waters. The Kenya International Freight and Warehousing Association (Kifwa, Car Importers Association of Kenya (CIAK) and independent maritime and shipping sector players say Kenya lags behind in applying the laws that the...