Archives: News

Ebola tests resilience of Uganda’s cross-border trade

Kasese, Uganda –Cargo trucks waiting to clear customs snake their way towards an iron gate guarded by heavily armed security officers. Off to their flank, queues of travellers move through tarpaulin tents where government health workers screen them for theEbolavirus. This is the Mpondwe border crossing. Located about 424 kilometers (263 miles) west of the Ugandan capital of Kampala, it’s where Jennifer Kobusingye has plied her trade for over a decade – importing cosmetics from theDemocratic Republic of the Congo(DRC) to sell in Uganda.Like other small-scale traders, the grandmother of two takes out loans to purchase goods to resell at a slight markup – a business that normally earns her roughly $27 in profit each week.But these are not normal times. “Whenever a case of Ebola is registered, we don’t cross to Congo for a month or two,” Kobusingye told Al Jazeera. “And a month without work – or even two weeks – is a huge loss.”Though the border betweenUgandaand DRC has remained open, Kobusingye’s struggles demonstrate how the fear surrounding Ebola is negatively impacting some sectors of Uganda’s economy. Health workers dress up in protective gear at Bwera Hospital near Mpondwe, Uganda near the border with the DRC Open borders cannot stop fear.The DRC – Africa’s most populous country after Nigeria, Ethiopia and Egypt – is in the grips of the second-largest Ebola outbreak on record, and the country’s worst ever. Since the current out break was first declared in August 2018, more than 3,000 infections have been confirmed, and more...

EAC Regional Meeting on Trade Facilitation

The EAC Regional Meeting on Trade Facilitation is the first meeting of the EAC Sub-Committee on Trade Facilitation under the UNCTAD Phase II project on Trade Facilitation, funded by TradeMark EA. The project is aimed at providing technical assistance to the EAC Secretariat and the EAC Partner States in trade facilitation reforms and simplification of trade procedures built upon the Trade Information Portals, all implemented by UNCTAD. The meeting will ensure a coordinated and harmonized implementation process of the trade facilitation policies in the EAC region. The EAC Regional Meeting will be held in Dar es Salaam, Tanzania, on 22-25 October 2019 under the leadership of the EAC Secretariat with the participation of the Chairs of the NTFCs, Representatives of the Customs Authority and the East African Business Council. At the end of the EAC Regional Meeting, the EAC Secretariat will prepare recommendations to be presented and adopted by the EAC Sectoral Council on Trade, Industry, Finance and Investment in November 2019. Source: United Nations Trade and Development

Agriculture as a vehicle for increasing women’s participation in global trade

Recently, there has been a widespread recognition towards agriculture as an engine of growth and poverty reduction in developing countries.  Yet the sector keeps under performing in many parts of our continent and other developing countries. Globally, women produce 50% of global food products and comprise, on average, 43% of the agricultural labour force in developing countries according to FAO statistics. In African countries, according to the UNDP, the economic and social discrimination against women actually costs Africa USD 105 billion a year or 6% of the continent’s annual Gross Domestic Product(GDP). In Tanzania, agriculture is a principal source of income and livelihood for about 65% of the population contributing an estimated 30%to the GDP. There is a greater participation of women than men in the sector split 81% and 73% respectively -the number increases to 98% for women in rural areas. Many of the world’s poorest countries rely on traditional agricultural crops for export however,it has been proven that participation in high-value export commodity chains such as horticulture and fisheries provides considerable opportunities for growth and poverty reduction. An analysis conducted by International Trade Center Non-Tariff Measures Surveys across 20 countries in 2015 revealed that when it comes to gender parity, far fewer women owned businesses are engaged in international trade than those owned by men. Diversification into high-value agricultural exports has been cited as a key means of linking the world’s rural poor to global markets. But how do we unlock this potential of agriculture for improved livelihoods...

Ethiopia, Kenya To Explore Grain Trade Opportunities

Kenya and Ethiopia set to explore bilateral grain trade opportunities and investments to bridge cross border trade gap and enhance food security. A Kenyan delegation will convene in Addis Ababa, Ethiopia on 22nd to 25th October 2019 on a grain trade mission to explore business opportunities for grain trade and processing between Ethiopia and Kenya. Organized by the Eastern Africa Grain Council (EAGC), the delegation will comprise of grain traders and processors, government officials and logistics companies to facilitate access to key economic and grain trade policies for optimal transport routes and indicative costs solutions respectively. The mission will include a business-to-business meeting in Addis Ababa, an experiential field visit to a grain handling and processing facility in Adama, and a visit to a Commercial Farm in Bahir Dar. Confirming the delegation’s intent to leverage on the existing trade opportunities in Ethiopia , the EAGC Executive Director said that : “Kenya has recently had an increasing demand for grain raw materials for industrial processing particularly soya beans used for processing of soya milk, soya meat and the by products used for animal feeds manufacturing.” Additionally, Kenya has seen several new investments in food and feed grain processing and with an additional demand for grain raw materials which cannot be fulfilled by the domestic production. “The Ethiopian grain market therefore offers a very viable source that can be competitive if well facilitated.” Added Mr.Masila. Ethiopia’s agriculture is largely dominated by the cereal production with major cereals such as wheat, maize, sorghum...

Tanzania Open to Talks Over $10 Billion Port Project, Daily Says

Tanzania is open to discussions with investors on the $10 billion Bagamoyo Port project, but will prioritize the interests of the East African nation, the Daily News newspaper reported, citing Tanzania Ports Authority Director General Deusdedit Kakoko. Talks on the proposed port have stalled because investors’ conditions were likely to prevent Tanzania from reaping the maximum benefit from the project, the newspaper said. The Port Authority proposes a 33-year lease for the Bagamoyo Port investors, who are seeking a 99-year term. Tanzania signed a framework agreement in 2013 with China Merchants Holdings International, with financial backing from Oman’s State General Reserve Fund, to build the port and a special economic zone that is intended to establish a regional trade and transport hub, the Dar es Salaam-based newspaper said. Source: Hellenic Shipping News

Construction of largest market in East Africa to begin in December

Construction of a regional market, which according to Mr. Karim Karamagi, the chief executive officer at Rural United Business Association Network (RUSBA) Ltd, will be the “largest market in the East Africa”, is set to commence in December at Kyotera district in the central region of Uganda. The market, whose establishment is subsidized by South African based Degitech Energy Company Ltd at an undisclosed amount, will be erected on a 200 acres piece of land along the Kyotera- Mutukula Road. Features of the proposed facility Upon completion, the facility will have, but not limited to the following spaces: stores, wholesale shops, Restaurants, Cottage industries, Granaries, Fruit stalls/lockers, Open space for small retailers, Halls for seminars, Cold rooms, Exhibition grounds, Day Care Centre, Craft stalls/lockers, Shops, Information Centre, Butchery stalls, Animal market space, Furniture and timber, Agro Chemicals Garage, spare shops, Hotels, Halls for training and meetings, Recreational space, Forex Bureaus, Vehicle parking yard, Hardware shops, Health Units, Office space, Vet shops, Pharmacies, Car bonds, and  Playgrounds. Also Read: New Kasubi and Busega city markets in Kampala, Uganda, to open to traders soon Aim of the project Mr. Karamagi said that the market is aimed at bringing together manufacturers, distributors, wholesalers, retailers and consumers from all over the East African region, including Uganda, Kenya, Tanzania, Rwanda, Burundi, Southern Sudan and Western Part of the Democratic Republic of Congo. “The market will also create employment opportunities and encourage entrepreneurial growth in the republic of Uganda, and in so doing we will spur...

Rwanda inaugurates modern inland cargo handling port

Rwanda on Monday inaugurated a new modern inland cargo handling port that offers real-time cargo tracking services to customers. Dubbed Kigali Logistics Platform, the facility located in Kicukiro district in Rwandan capital Kigali, was constructed and will be managed by an Arab port operator Dubai Ports World group, according to a 25-year concession agreement signed with the government in 2016. The facility, which has been operational since September 2018 in test mode, has a capacity of handling 50,000 containers, Dubai Ports World Chairman and CEO Sultan Ahmed Bin said, speaking at the launch. "When operating at full capacity, it has the potential to save Rwandan businesses up to $50 million a year in logistics costs," he said. "Since the commencement of its operations, Kigali logistics platform has reduced truck-turnaround time from an average of 10-14 days to just 3 days". The cargo terminal is monitored by 24-hour CCTV with customers able to access real-time tracking through mobile and online portals, officials said. They explained that operational time is reduced via articulated forklifts and modern narrow aisle racking system in warehouses, said to be a first for Rwanda and only the second of its kind in Africa. According to the group's CEO, the facility serves as a gateway to the heart of Africa, connecting Rwanda to neighboring countries including Democratic Republic of Congo, Burundi, Uganda, Tanzania and Kenya. The facility will also access the port of Mombasa in Kenya and Dar Es Salaam in Tanzania, securing two trade gateways to the...

Mutukula to get regional market

All is set for the construction of a regional market at Mutukula border post in Kyotera District. Mr Karim Karamagi, the chief executive officer at Rural United Business Association Network (RUSBA) Ltd, on Monday said construction of the regional market at Kasanvu Village on Kyotera- Mutukula Road will start in December. “Kyotera District local government leased to us 200 acres of land with the purpose of constructing a regional market and trust me, it will be the largest [market] in the East African region,” he said. Mr Karamagi revealed that the project will be funded by South African based Degitech Energy Company Ltd However, he declined to disclose the specific budget for the project, but it is reported that the facility is estimated to cost more than Shs1 trillion . “Apart from the technical work which needs expatriates, our local people will be the first to get employed,” he said. Mr Karamagi said the market will bring together manufacturers, distributors, wholesalers, retailers and consumers from all over the East African region. “Our target is to create employment and promote entrepreneurial growth in Uganda, in so doing we will spur value addition and also promote export of value added products to regional markets like [East African Community] EAC and Comesa [Common Market for Eastern and Southern Africa],” he says Benefits The Kyotera District Chief Administrative Officer, Mr Fred Kalyesubula, said the market is among government initiatives to encourage the private sector to engage in gainful trade and investments. “We have embraced...

Kenya pushes for a regional cargo tracking system

Kenya is pushing to bring on board all East Africa Community member countries to the regional electronic cargo tracking system to streamline cargo transportation and boost tax collection through the Single Customs Territory. Kenya’s National Treasury acting Cabinet Secretary Ukur Yatani said having all EAC countries using Rects is crucial in avoiding dumping of goods, minimising travel delays, improving cargo security and boosting tax revenues. Speaking at the 2019 taxpayer’s month forum, Mr Yatani said: "Plans are underway to roll out Rects to include South Sudan, Tanzania and ultimately to destinations outside the EAC bloc." But the biggest challenge is that Tanzania has its own electronic cargo tracking system (Tancis), a multi-vendor platform owned by private companies. The push to bring Tanzania on board, in particular, comes at a time when Rwanda, Burundi and the Democratic Republic of Congo are increasingly using the Central Corridor as a viable option than the Northern Corridor via Kenya. While it is clear that South Sudan is set to join Rects as soon as the transitional government is in place this November, negotiations with Tanzania are ongoing. Source: The East Africa

Africa: Kagame – Africa Must Fund Her Own Transformation

The African continent cannot continue to rely on foreign aid to finance its transformation, President Paul Kagame has said. Kagame was speaking in Abidjan at the 8th CGECI (Confédération Générale des Entreprises de Côte d'Ivoire) Academy, the largest annual gathering of Private Sector in the West African country. The summit brings together the private sector of the West African countries and covers topics such as avenues to grow competitiveness, relevance and growth among other topics. "We have to reach a point where our countries have the capacity to finance our own transformation. Development aid has been useful and it continues to be useful, especially when we work to get the most impact out of every cent that we receive. But the point has never been to remain dependent forever when we have always had the potential to be wealthy ourselves," Kagame said during the keynote address. Rather than continuously look to other countries for aid, Kagame said that there are more productive ways for Africa to partner with various countries and regions for mutual benefit. This year's conference is themed around creating a conducive business climate. To create a more conducive business climate, Kagame said deliberation among public and private sector from various countries are crucial to share connections and experiences. "One way to advance this cause, is through forums like this one. Coming together here, we make useful connections, share experiences, and learn from each other. The starting point is ensuring that relevant actors in both the public and...