A proposal to amend the East African Community (EAC) Customs Management Act, 2014, to extend the time for removal of bulk containerized goods from the ports of discharge, is in the offing, in a move likely to reduce the cost of doing business in the region. In the regard, the Assembly has granted EALA legislator Abdikadir Omar Aden, leave to introduce a Bill to amend section 34 (5) of the existing Customs Management Act, 2014, to realise the above objective. With it, the Assembly further adopted a motion to amend the Act, when it received support yesterday. The Motion moved by Mr Aden, Chair of the General Purpose Committee and seconded by Dr Abdullah Makame, was moved under Article 49(1), 59(1) and Rule 26 of the Rules of Procedure of the House. At the moment, under the existing Act, the entry of cargo is required to be made within twenty-one days from the date of discharge of the vessel failing which the goods contained in the cargo begin to attract a charge or demurrage. However, Hon Aden avers that extending the time for removal of large consignments from the port of entry would eliminate demurrage charges and hence goods more affordable and allow for longer storage period to facilitate clearance. In the EAC, all cargo coming in to the region enters through the designated ports but mainly through the ports of Dar es Salaam in the United Republic of Tanzania and Mombasa in the Republic of Kenya. “I am concerned...

THE East African Business Council (EABC), in partnership with East African Community (EAC) and USAID support has convened over 38 industry champions and business leaders from the region to discuss opportunities of the African Continental Free Trade Area (AfCFTA), tariffs, rules of origin and trade in services. The EABC Chief Executive Officer (CEO), Peter Mathuki said in his opening remarks in Arusha yesterday that, “We need more public-private dialogue and involvement of the private sector in the negotiations of the AfCFTA at national, regional and continental levels,” He urged the EAC Partner States to eliminate barriers to trade, improve infrastructure and enhance regional value chains through manufacturing to harness opportunities availed by AfCFTA. He appreciated Rwandan President and the Chair Emeritus of the African Union and current Chair of the Summit of EAC Heads of State Paul Kagame President for championing the 1.2 billion continental markets. “Given that commencement of trading within the AfCFTA is slated for 1st July 2020, the East African private sector is steadfast in setting pace of the AfCFTA negotiations. EABC is in close discussion with the African Union and has offered to host the first-ever African Business Council in East Africa,” he said. In his remarks, Mr Christophe Bazivamo, the EAC Deputy Secretary General for productive and social sectors reiterated EAC’s commitment to work in close partnership with the private sector. “The world is targeting the Africa market, what are we targeting as East Africans?” said Bazivamo. He further said the EAC has agreed to...

Did you know that Uganda is the Birthplace of Robusta Coffee? Robusta is 80 percent of the country's total exports of 4.6 million (60kg) bags. Uganda is Africa's leading Coffee exporting country and second largest producer on the continent. Currently Uganda produces about 4.6 million (60kg bags) valued at about $500m. Coffee employs 5m Ugandans majority of who are women. Today, Uganda joins the rest of the World to commemorate October 1st -International Coffee Day. The 2019 International Coffee Day will be held at the Ankole Coffee Producers’ Cooperative Union (ACPCU) premises in Kabwohe, Sheema District on October 4. There will be a few presentations made but much emphasis will be put on Domestic Coffee consumption campaigns to promote local consumption and awareness among communities about coffee and its health/medicinal benefits. Organizations will present their products and services in an exhibition running currently with a panel discussion on the day. Organizations and networks specifically targeted at community building and those established by community members are highly encouraged to attend. The exhibition provides a unique opportunity to exhibitors to display the best coffees and affiliated services providing many opportunities to network with stakeholders from the entire coffee fraternity. This will be the perfect platform for gathering valuable coffee information, building trade relations and buyer and seller interaction. Africa is the cradle of coffee and is a producer of some of the best coffees in the world. However, social, economic and political problems can hinder its development. For Uganda, the country's political...

The Kenya Ports Authority recorded a 9.9 per cent growth in revenue between January and August compared with the same period last year. The increase was attributed to efficiency at the Mombasa Container Terminal Two (CT2), made possible by the automation of container handling processes and improvements in documentation and clearance processes. The special transshipment berth is located at CT2, and was built at a cost of Ksh27 billion ($270 million). In the eight months to August, the port of Mombasa handled 22.8 million tonnes up from 20.7 million tonnes in 2018; transshipment increased by more than 131.9 per cent, from 698,705 last year to 1,619,960 this year. On cumulative container traffic, a significant increase of 22,057 twenty-foot equivalent units (TEUs) or 9.5 per cent was realised during the period of July-August 2019/20 compared with the same period 2018/19 with transshipment traffic mainly accounting for the good performance growing by 30,933 TEUs, which is a 214.6 per cent growth. This is the highest transshipment the port has recorded, and is expected to boost earnings according to head of container operations Edward Opiyo. “Increasing transshipment cargo will reflect positively in our profits, and the CT2 where we have Berth 21 has greatly contributed to this. The completion of the second phase will increase transshipment cargo even more,” said Mr Opiyo. Containerised cargo and liquid bulk recorded a growth of 23.5 per cent and 11.2 per cent respectively. Uganda remained the port’s biggest client, accounting for more than 4.66 million tonnes of...

The world’s trade is expected to grow at a much slower pace this year and next year than previously anticipated. This is blamed on the “escalating trade tensions” and uncertainties around Brexit, according to the World Trade Organisation (WTO). World trade in merchandise is expected to expand by only 1.2 per cent this year, less than half the rate of 2.6 per cent growth anticipated in April, the WTO said in a statement released on Tuesday morning. World trade is forecast to reach 2.7 per cent next year, below the 3 per cent previously foreseen. WTO Director-General Roberto Azevêdo said the darkening outlook for trade is discouraging but not unexpected. “Beyond their direct effects, trade conflicts heighten uncertainty, which is leading some businesses to delay the productivity-enhancing investments that are essential to raising living standards,” he said. WTO economists had warned during its annual forecast in April that systemic threats to global trade – notably retaliatory tariffs between China and the United States – would continue to hamper the flow of goods. In September, US President Donald Trump increased tariffs on $112 billion worth of Chinese imports, threatening American consumers with higher costs for shoes, apparel and electronics. As China slapped retaliatory tariffs on $75 billion of American imports, President Trump threatened to extend tariffs to $550 billion worth of Chinese imports. The president last month delayed by two weeks a planned increase in tariffs on $250 billion worth of Chinese goods, momentarily restoring hopes for a trade deal. But...

Three African trade blocks have come up with two new projects aimed at increasing formal small-scale cross- border trade flows in the region, a spokesperson said on Tuesday. The Common Market for Eastern and Southern Africa (COMESA), the East Africa Community (EAC) and the Southern African Development Community (SADC) have come up with a 15-million-euro Regional Small-Scale Cross Border Trade Initiative and a 53-million-euro Trade Facilitation Project. The projects are funded by the European Union (EU) under the 11th European Union Development Fund, Mwangi Gakunga, Head Corporate Communications at COMESA said in a statement. He said the implementation of the two projects was expected to contribute to higher revenue collection for governments at the borders, increased security and improved incomes for traders. The first project was 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. According to the statement, the second project aims at increasing intra-regional trade flows of goods, persons and services by reducing the cost and delays of imports and exports at specific border posts. This will be addressed through reduction of non-tariff barriers, implementation of digital free trade area, improvement of coordinated border management and liberalization of trade in services and free movement of persons. Source: Xinhau

THE Micro Small and Medium-sized Entreprises (MSME), is contributing about 85 per cent of employment and 25 per cent to the Gross Domestic Product (GDP), making it the fastest growing sector in the East Africa Community (EAC), partner states. This was said by the Chief Executive Officer (CEO), of the Confederation of Micro and Small Enterprises Organisation East Africa (CMSEOEA), Mr Richard Muteti, during today’s inaugural of regional consultative forum on MSMEs held at East African Business Council Secretariat in Arusha on Monday. “Despite the importance of the MSMEs to the economy, there isn’t a tailor-made policy at EAC level focusing on the promotion of MSMEs,” said the East Africa Business Council Chief Executive Officer, Peter Mathuki. Lack of standards specifications, poor production methods, poor finish, reduced lifespan, sub- standard issues hindering the export growth of the products manufactured by MSMEs in the region. The chairman of CMSEOEA Mr Josephat Rweyemamu said, “Partnership with EABC will enhance us to speak in one voice on common issues facing business such as non-tariff barriers (NTBs) and harmonisation of standards,” The partnership is expected to increase economic vibrancy by enhancing forward and backward linkages to boost job creation, quality of the jobs and products manufactured by MSMEs. The EABC Director said in her remarks, “EABC will represent MSMEs issues in the high-level meeting with the EAC Heads of State and Council of Ministers” Innovations, exposure visits, capacity building, business to business linkages between micro and large industries and access to market are among...

Indications are that the first berth of the new Lamu Port is nearly ready for business, with other reports indicating that highway infrastructure to feed and evacuate cargo from the new berth is far from ready - an unfortunate mismatch of project planning and implementation. The Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) corridor project was intended to link Lamu Port to South Sudan via a Lamu-Garissa-Isiolo-Lokichar-Juba highway and to southern parts of Ethiopia via the Isiolo-Moyale road which is already in place. For sustainable business at the new Lamu port the westward-bound highway will need to be constructed sooner than later. The multi-project Lapsset corridor was justified on the wider and longer-term principle of socio-economic opening up of the under-developed northern parts of Kenya through communication, trade, and improved security management. It was justified on economic not financial returns, and the socio-economic benefits are already visible in Lamu County. Benefits to the other counties along the corridor will accrue only when the highway is linked westwards. It was not the intention that the Lamu port competes for business with the Port of Mombasa and its captive Northern Corridor business. Further, the new SGR calls for maximum available cargo from Mombasa port. Using the Lamu port to trans-ship cargo which would otherwise be offloaded at Mombasa for the Northern Corridor appears inefficient and unlikely to pass tests in respect of costs from import ports to final importer location. The Lamu port was predicated mainly on new business opportunities from the neighbouring South Sudan...

The Kenya Revenue Authority (KRA) plans to deploy customs officers to Uganda and regional countries to facilitate trade and boost revenue collection. The move is aimed at sealing the revenue leakages and smuggling of goods which are rampant at the major border points. KRA Western Region Coordinator Joseph Kaguru said this will be the first time the agency will send its officers to Uganda, Burundi, Rwanda and Southern Sudan. “We have realised that we have been having issues with manufactured products going to Uganda and coming into the country. Our officers will be there to collect revenue and also seal loopholes from that end,” said Mr Kaguru. The plan to deploy customs officer across EAC states will mean cargo clearance will not be done at the border. This will reduce the pressure being experienced when clearing cargo at the border points “If you go to our major borders especially in Malaba and Isebania, you will not only find a lot of trucks parked there but cargo clearance being done at the border point,” said Mr Kaguru. “The cargo clearance will not be done at the border. Our border will be transit point. The cargo clearance will be done in the inland container depots in Uganda and other EAC states.” By the time a truck is arriving at the border all the clearance work will have been done and the tax paid, meaning it will easily pass through the border. “By having trucks parked at the border we are creating loopholes...

The Democratic Republic of Congo (DRC), sub-Saharan Africa’s largest country, is known for being a tough place to do business but also one of unexploited economic potential. Although the country has had a dark cloud looming over it for years, it recently held its first democratic transfer of power since it gained independence from Belgium in 1960. And like other African countries, the DRC is in pursuit of a stronger and thriving economy. The IMF has the country’s economy‘s growing at a rate of 4.3% in 2019; and nothing suggests that this will not improve in the future. For the DRC, the pursuit for a thriving economy is well within reach given its endowment with vast natural resources that could enable it to be a contributor to Africa’s economic growth and global supply of raw materials such as copper. The DRC’s new government seems to be committed to exploiting these natural resources, as demonstrated through the several sector reforms that have already been implemented. The most impactful, both short and long term, being investment infrastructure development & renewable energy, amendments to mining and oil & gas legislation as well as its participation in the Extractive Industries Transparency Initiative. In respect of infrastructure and energy, the DRC captured global attention with the world’s largest proposed hydropower scheme known as the Grand Inga project. A project that aimed to generate about 40,000 megawatts of power from water sourced at the mouth of the Congo River. This amount of energy can cater for...