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Kenya invites shipping lines to promote Lamu port

As a part of its marketing strategy to promote the newly developed Lamu Port, the Kenya Ports Authority has invited shipping lines to tour the port. According to reports, more than 10 shipping lines have agreed to so far to visit Kenya’s Lamu Port. Edward Kamau, general manager corporate services at the Kenya Ports Authority told the media that, “We are taking the shipping lines to Lamu to see and appreciate the facility and infrastructure that is being put in place ahead of commissioning.” He added,” We also want them to understand what is expected of them once we commence operations at the new port.” The Kenya Ports Authority’s marketing strategy also includes offering promotional tariffs to logistic companies which includes a 30 days free storage period for transshipment and transit cargo, 14 days free storage period for domestic cargo and a 40 percent discount for cargo-based charges as per the Kenya Ports Authority’s tariff. Edward Kamau also revealed that the Kenya Ports Authority will promote Lamu as a transshipment port. Recently, Denmark’s – Maersk, which happens to be the world’s largest container shipping firm agreed to call at Lamu Port. Maersk, which is the largest container ship and supply vessel operator in the world since 1996, will connect the Lamu Port to 300 global ports. The Kenyan government is developing the first three berths at the planned 32-berth port which is part of the Sh2.5 trillion Lamu-South Sudan-Ethiopia Transport Corridor (Lapsset). The project, which was flagged off in 2012,...

TRA collects 4.7bn/- at Sirari border

TANZANIA Revenue Authority (TRA) in Tarime collected 4.7 bn/-last month, attributing the success to tax compliance, curbing tax evasion and improving the relationship between taxpayers and tax administrations. Speaking yesterday at the Tanzania-Kenya border, TRA Mara Regional Assistant Manager, Aden Mwakalobo said the collection depicted the performance rate of 79 per cent as the initial target was to collect 5.935b/- . Moreover, the manager shed some light on alternative measures to improve tax collection at the Sirari border post, including continuous improved joint patrols along the porous border in collaboration with other security agencies, including the police, Tanzania Food and Drugs Authority (TFDA) and Tanzania Bureau of Standards. ''TRA looks forward to tackle potential challenges that may be faced by tax administrators in the future at the border post, including the tendency by some untrustworthy traders who smuggle illicit goods by using unofficial entries scattered here,'' he said. Mr Mwakalobo noted that he had directed TRA staff stationed at the Sirari entry point to quickly adapt to the directions by the fifth phase government under the leadership of President John Magufuli, such as gathering tax information, improving the collection of taxes and encouraging voluntary tax compliance. ''Customs and other border control agencies operating here face challenges, including effective facilitation of legitimate and legal trade and flows of goods, services, people and capital and not otherwise,” he noted. He revealed that halting the flow of illicit commodities, services and the apprehension and prosecution of individuals facilitating illicit trade was the only...

Goods’ smuggling across borders, endanger local industries

AS Tanzania just like any country struggles to promote trade between it with its neighbours, there are many benefits which also come with the business for the nationals as well as people from its frontiers. This includes improving foreign relations and harmonious living along the borders, besides increasing the citizens’ access to goods and resources they may not be having, but available outside the country. And as such trade booms, the citizens should be educated to be watchful against border jumpers who may exploit the free trade between the friendly nations to smuggle in counterfeit goods and also avoid paying statutory taxes. The citizens should be enlightened that such dishonest traders smuggling in goods by evading Tanzania Revenue Authority (TRA), Police, Tanzania Bureau of Standards (TBS) and other Customs Officials have ill intention and should be reported. This is because their actions not only endanger local small scale entrepreneurs, but may also flood the market with goods, whose sources are not certified by State authority as being fit for human consumption. The public especially those residing along the borders should be decanted to know that smuggled goods, which most of the time are restricted or prohibited, pose health risks to them and could be detrimental to the social well-being. These people may capitalise on unguarded porous borders to smuggle into the country contraband goods, which have significant impact on the economy and lives of Tanzanians, but they can not exist in business without fellow Tanzanians giving them sanctuaries without realising...

East African Community launches €1.6 million climate change programme

The intra-Global Climate Alliance Plus (GCCA+) Programme on supporting Climate Change Adaptation and Mitigation Actions in the East African Community has been launched at the EAC Headquarters in Arusha, Tanzania. The European Union (EU) is providing funding to the tune of 1.6 million Euros for the four-year project which commenced in July 2019 and runs up to June 2023. The project which was launched by the EAC Secretariat in collaboration with the EU will, among other things: support EAC Partner States in addressing different climate change challenges; reviewing and updating their Nationally Determined Contributions (NDCs) for the effective implementation, and; developing community based climate change initiatives that will have tangible impacts on local communities. In his opening remarks, the Chairperson of the Meeting, Eng. John B. Kizito, on behalf of the Ministry of Foreign Affairs and International Cooperation, Rwanda thanked the EU for its support in enhancing the capacity of the EAC region on climate change, strengthening the implementation of climate change actions, the Paris Agreement and regional capacity to access climate change funding. Eng. Kizito cited some of the challenges posed by climate change in the region and echoed the need to take concerted measures in strengthening resilience while adopting low carbon and sustainable development pathways. The EAC Deputy Secretary General in charge of Productive and Social Sectors, Hon. Christophe Bazivamo, who represented the Secretary General, reiterated the EAC’s commitment to mitigate the impacts of climate change, adding that the Community had developed EAC Climate Change Master Plan (2011-2031),...

East Africa bloc pledges to cooperate to curb tax revenue loss

The East African Community (EAC) member states on Thursday pledged to enhance cooperation in order to curb tax revenue losses. Patrick Mukiibi, commissioner of tax investigations department, Uganda Revenue Authority told Xinhua in Nairobi that the exchange of information in the economic bloc is critical to boosting domestic resource mobilization. “The overall aim of joint investigations is to boost the tax compliance rate which has a positive effect on tax authority revenues,” Mukiibi said during the East Africa regional meeting for commissioners of investigation and enforcement. The meeting brought together tax investigation commissioners from Kenya, Uganda, Rwanda, Burundi and Tanzania to discuss ways of detecting and combating tax evasion and tax crimes in the region. Mukiibi said that enhanced collaboration is necessitated because companies in the region have set up subsidiaries in other partner states. “It is also important to work together in order to learn lessons from each other given that different countries have developed different capacities and competencies,” he added. According to the Ugandan tax official, optimum regional cooperation will require that some national laws be amended in order to ensure a harmonized domestic tax regime. David Yego, commissioner of tax investigations and enforcement at Kenya Revenue Authority said that sharing of intelligence across the trading bloc will ensure that tax fraud and evasion that is committed across borders are detected and those found culpable are prosecuted. Source: CGTN Africa

Crossing closed: How women on the Uganda-Rwanda border are coping

Uganda and Rwanda are embroiled in an ongoing diplomatic row that has seen major border crossings between the countries closed since late February. Caught in the crossfire are women whose livelihoods depend on the free movement of goods, services and people across the Uganda-Rwanda border. In June, three civil society organisations filed a lawsuit on behalf of women traders against the Rwandan and Ugandan governments, alleging that the border closures infringe on multiple provisions of the 1999 Treaty for the Establishment of the East African Community - including violating the economic rights of women to engage in trade. Hopes for improved relations were raised on August 21, when the presidents of both countries signed a memorandum of understanding (MOU) aimed at ending months of tensions. But the two countries aren't planning to discuss the thorny issue of the border until at least mid-October. In the meantime, women who rely on cross-border trade to make a living are struggling to get by. Al Jazeera visited the border town of Katuna to find out how they are adapting to these trying new circumstances. Source: Aljazeera

18bn/- border post launched

TANZANIA and Zambia yesterday officially launched the US 7.8 million dollars (approximately 18bn/-) Tunduma-Nakonde one stop border post whose thrust is to boost and facilitate trade between the two countries as well as other member states of the Southern African Development Community (SADC). The colourful event was witnessed by Tanzanian President John Magufuli and his Zambian counterpart Edgar Lungu as well as Cabinet minister and other officials at the busy border post between the two countries. The modern Tunduma-Nakonde one stop boarder post becomes the first state of the art facility connecting the East African Community (EAC) and SADC to which Tanzania is a member state of both regional blocs while Zambia is a member of the latter. Speaking during the occasion, Dr Magufuli said the facility is paramount in boosting trade between member states of SADC, noting further that the trade volume between Tanzania and Zambia surged from US 89 million dollars in2010 to 265bn/- last year. During the period under review, exports from Tanzania to Zambia totaled 149.5bn/- while imports from the latter amounted to 116.3bn/-, he stated. President Magufuli was nevertheless hopeful that there was still room for growth of intra-country trade and investments between Tanzania and Zambia as well as other member states of SADC. Zambia is among the leading countries for importing and exporting its products through the Dar es Salaam Port, with reports from the Tanzania Port Authority (TPA) showing that the country accounts for about 37 per cent of cargo which is handled...

US investments in Kenya to overshadow aid cuts: official

A recent cut in US funding for combating HIV/Aids in Kenya does not amount to a scaling back of US interests in the country, the State Department's top Africa official said on Wednesday. “Our official government funding that we spend around the world represents a very, very small percentage of total US investment in countries,” Tibor Nagy, the assistant secretary of state for African affairs, told reporters. “A great proportion of investment in Africa comes from our private sector,” the diplomat added. In the case of Kenya, US foreign direct investment totalled $405 million in 2017 — a 7.5 percent decrease from 2016, according to the Office of the US Trade Representative. The US also registered $644 million in imports from Kenya in 2018 — a 12.6 percent increase from the previous year, the same source indicates. Mr Nagy offered his comments on US government assistance and private investment in response to a journalist's question about a sharp reduction in assistance to Kenya through the President's Emergency Programme for Aids Relief (Pepfar). Source: The East African

Kenya eyes third position in container handling

Kenya will in January improve its cargo handling rank in Africa to position three after the commissioning of four more ports, Kenya Ports Authority (KPA) has said. Currently Kenya is ranked fifth after Egypt, South Africa, Tanzania and Morocco due to increased efficiency in cargo handling and the rising volumes of containers entering and leaving its port. The ongoing construction of Lamu port, Shimoni fishing port, the Inland Container Depot in Naivasha and the lakeside port of Kisumu are at an advanced stage of completion. KPA managing director Daniel Manduku told Business Hub that KPA projects to cross 1.3 million Twenty-Foot Equivalent Units (TEUs) at the end of the year from one million TEUs achieved last week. “We are optimistic to move up to position three from the current fifth in Africa by the end of the year. Ports are rated on their efficiency and the volumes of cargo they handle. We believe we are improving tremendously,” he said. Land reclamation Numbers released last month show that annual handling capacity at the Port of Mombasa had increased from 250,000 TEUs in 2008 to the current above one million TEUs. The recent reclamation of 100 acres of land from the sea in Phase 1 of the port’s expansion programme will inject an additional 550,000 TEUs container terminal capacity. “In the maritime sector the one million TEUs mark is very high and I am happy that we hit the one million TEUs mark almost four months to the close of the year. Going by...

Comesa to formalise small scale cross-border trade

The Common Market for East and Southern Africa (Comesa) has launched two projects aimed at formalising cross-border trade among small scale businesses. The move is expected to enhance Malawi’s exports under the block. This follows the inaugural meeting of the projects steering committee which began on Monday in Lusaka, Zambia. The first project is a €15 million Regional Small-Scale Cross Border Trade Initiative (SSCBTI) while the second is a €53 million Trade Facilitation Project, both funded by the European Union (EU) under the 11th EU Development Fund. The Trade Facilitation Programme aims at increasing intra-regional trade flows of goods, persons and services by reducing the costs and delays of imports and exports at specific border posts. It is expected that this will be addressed through reduction of non-tariff barriers, implementation of digital Free Trade Area, World Trade Organisation Trade Facilitation Agreement, improvements of the Coordinated Border Management and liberalisation of Trade in Services and free movement of persons. A statement from Comesa says implementation of the two projects is expected to contribute to higher revenue collection for governments at the borders, increased security and improved incomes for traders. “The SSCBT initiative is designed to address challenges facing small scale traders which include high transactions costs arising from delays at the border, high taxes and high transport costs; corruption and harassment among others,” reads the statement in part. Spokesperson in the Ministry of Industry, Trade and Tourism, Mayeso Msokera, said the development is expected to boost government’s revenue and trade for...