Last week the World Bank’s Ease of Doing Business Report revealed that Kenya’s standing had improved by 12 places. It is now ranked 80 among 190 economies and is the top improver in Africa. The last time Kenya was ranked this highly was in 2008 when the country stood at number 84. It is now the third highest in Africa with only Mauritius and Rwanda higher at 49th and 56th place respectively. The report says the improvement was credited to five reforms in the areas of starting a business, obtaining access to electricity, registering property, protecting minority investors and resolving insolvency. These improvements are important for several reasons the first of which is that the report is an important signaller for investors, particularly foreign investors. Improvements in ranking are positive signals for foreign investors in particular. Some may argue that the report makes no difference to the ordinary Kenyan but the truth is that SMEs and informal businesses are tethered to larger businesses who often seek foreign investors. Thus an indication that the investment climate has improved bolsters investment opportunities for large formal businesses who can pass business on to SMEs and informal businesses as suppliers, distributors or service providers. The report is important because it gives an indication of how easy it is to start and run a formal business in Kenya. The easier it is to start and run a formal business in Kenya, the higher the chances are that informal businesses may take the path toward formalisation....

The Kenya Association of Manufacturers (KAM) and the TradeMark Africa (TMA) said the centralized business portal will provide industry stakeholders and potential investors with information on economic and legal environment, industrial and trade statistics relevant to the manufacturing sector and its sub sectors. KAM Chairperson Flora Mutahi said in a statement on Friday that the information shared through the portal will provide investors with the necessary data needed to map out areas of investment and potential sectors for businesses to scale into. “Kenya moved a notch higher in e-commerce following the recent launch of the devolution portal which seeks to provide an interactive platform for information sharing between the business membership organizations, county governments and constitutional implementation bodies,” Mutahi said. She said another key milestone for industry has been the launch of the new National E-Trade Portal – a national e-commerce gateway. The portal launched by KAM is part of the wider efforts to integrate the use of technology in the manufacturing sector in line with economic goals towards Vision 2030. “It will increase the sector’s investment competitiveness by providing necessary data needed for investment and ultimately, the growth of the sector,” said Mutahi. Ministry of Information, Communication and Technology, State Department of ICT and Innovation Principal Secretary Victor Kyalo noted that the ICT sector is envisaged to transform Kenya into knowledge and information based economy. Kyalo said the ICT sector is the catalyst for competitive and dynamic economies, adding that Kenya is considered the leading technology and innovation hub...

THE announcement by the Chinese Ambassador to Zambia Yang Youming that the three governments of China, Tanzania and Zambia have reached an agreement on the revival of Tazara is great news. Tazara should never be allowed to collapse. It is an important institution directly linked to how the country has developed since independence and the friendships it has been able to cultivate with the outside world. The railway line was built out of necessity. A year and few days after Zambia’s independence, Ian Smith unilaterally declared independence for Southern Rhodesia, which he renamed as Rhodesia. It was a coup against the British Crown. The declaration of independence for Rhodesia was a big blow to the new Zambian nation. Since the start of the twentieth century, its trading system was tied to southern Africa. Its external trade depended on the Rhodesia Railways and was routed through the ports of Durban, Port Elizabeth and Beira and imports were mainly sourced in South Africa. This was the case until the Federation of Rhodesia and Nyasaland was established, when the Southern Rhodesian industry developed and became the main supplier on the Zambian market. But products not available in South Africa and Rhodesia still continued to transit through the ports of South Africa and Rhodesia. Yet, six weeks after UDI, Zambia’s access to these routes was cut off. The British Prime Minister Harold Wilson and American President Lyndon Johnson declared economic sanctions against Rhodesia. This greatly hurt Zambia’s economy. In fact, the sanctions hurt Zambia...

Walking on the streets of business and residential districts of Kampala and other leading cities in East Africa, you will notice many new high quality establishments selling all sorts of items. Most visible are fast food, hospitality and auto-related brands among many others. What most East Africans do not know is that as our East African entrepreneurs outdo each other by opening many (few, limited by financial and operational considerations) company-owned outlets,  owners of these multinational brands realized long ago that the easiest way to conquer the world is to build an army of dedicated business partners running their own businesses using the multinationals’ long-established brands under pre-agreed arrangements, thereby guaranteeing them a quick worldwide footprint at a fraction of the cost of setting up and running company-owned outlets. The reality is that multinational franchise brands are trooping into Africa attracted by Africa’s youthful population and the burgeoning middle class, coupled with market saturation back home. If the situation is not addressed actively, early, we will end up like Philippines where 70% of the franchise sector is controlled by foreign brands as opposed to South Africa where 90% of all franchises are home-grown. In deciding between the Philippines and the South African model, we should consider the benefits of each. These multinationals play a very significant role in creating jobs, transferring skills, playing commercial diplomacy and creating wealth for themselves and everyone in the value chain. But they repatriate all their profits back home and import most of their inputs...

Speaking in Dar es Salaam yesterday, the businesspersons from Zambia, who are currently on a familiarisation tour of the port’s activities, said there has been a remarkable improvement in terms of performance, from cargo handling at the port to transportation. “We do appreciate efforts being made by the Tanzania Ports Authority (TPA) in improving service delivery at Dar es Salaam Port. The port remains the best gateway for Zambia,” said Michael Nyirenda, President of Zambia Chamber of Commerce and Industry, who led the delegation. However, he called for more measures to be taken between relevant authorities in Tanzania and Zambia to expedite cargo clearance upon reaching Tunduma border from Dar es Salaam. According to Mr Nyirenda, there is much delay of cargo upon reaching Tunduma border post on its way to Nakonde on the Zambian side. Acting TPA Director of Marketing, Ms Lydia Mallya said Zambia transported 1.248 million tonnes of cargo through the Dar es Salaam Port between January and September 2016, but following improvement in various areas the cargo increased to 1.478 million tonnes between January and September, this year. Ms Mallya told the 10-man delegation that TPA was open for suggestions and proposals from Zambian business community on how best to improve service delivery. Zambian traders are the number one TPA’s transit customers. Acting Tanzania Ports Authority (TPA) Director General, Lazaro Jacob assured the delegation that TPA and other stakeholders in the transport sector would continue supporting and improving service delivery. “I would like to inform you...

An enlightening Kenyan proverb says: a man stung by a bee does not destroy all the beehives. Kenyan politicians need to take a cue from this ancient wisdom. In their unrelenting efforts to deprecate each other, President Uhuru Kenyatta’s Jubilee Party misused the legislative body and coerced the highest institute of justice rendering it subservient which let a highly questionable re-election go ahead. His arch political rival, Raila Odinga continues to be adamant in his efforts to be the first citizen and is considered to be equally responsible in severely maligning the geo-political goodwill and socio-economic confidence that Kenya has so painstakingly earned to become a regional powerhouse. Opposition leader Odinga’s call for the boycott of products manufactured by companies controlled by hardliners associated with President Kenyatta sends out a wrong signal within business circles. It projects Kenya to be a country at war with itself. When Kenya falters, its ramifications create an imbalance in the East-African region in several ways. Trade wars could escalate, which neighbouring Tanzania is quite keen on but unable to initiate because Kenya is the pivotal regional economic powerhouse. Inland members of the East African Community (EAC) namely Uganda, Burundi, South Sudan and Rwanda would face trade and industry challenges since they are highly dependent on the Kenyan sea-port in Mombasa for its supply of consumer products and the import of industrial raw materials. The Ugandan economy registered a sluggish first quarter. “We are more concerned with events in Kenya which is a key trade...

For the typical entrepreneur, profit is the main motive. This, after all, is the presumed reward for taking on risk. The bottom-line often keeps executives awake at night. Progressively growing profits and keeping shareholders happy with handsome dividend payouts is the ultimate measure of how the business is doing and, by extension, how effective the leadership is. This is the way we have always looked at and evaluated business. Not anymore. PROFIT Profit, on its own, no longer offers an accurate measure of the success of today’s business. It is an insufficient measure that does not give the full picture of the state of a business. Impact is actually the new measure of success. Focusing only on profit without considering a business’ positive impact is outdated. The true measure of the success of a business is its impact on the wellbeing of people and the planet. Wellbeing is the ultimate measure of success. Social and environmental impact can no longer be ignored. The business model of the future is one that is keen on not only maximising profit, but also positive impact that benefits people and the planet. Business has to take the lead in prioritising an inclusive economy, where enterprise plays a role in promoting the greater good, broadening prosperity and tackling inequality. In the business environment today, massive prosperity and technological innovation notwithstanding, globalisation continues to intensify, leading to complex global issues that have negatively affected society. SOCIAL ILLS This ranges from massive environmental depletion and degradation due...

Showgoers should expect better and innovative products at the forthcoming Made-in-Rwanda exhibition later this month, Private Sector Federation (PSF) has said. Eric Kabeera, the head of communications and marketing at PSF, said a number of new and ‘big’ exhibitors, including manufacturers of products like computers, motorcycles, and innovative housing solutions, have already registered for the annual expo. The Made-in-Rwanda expo targets local manufacturers and small-and-medium enterprises (SMEs), including cottage industries. “For instance, Rwanda Motorcycle Company will exhibit affordable sports motorcycles that go for about Rwf3 million compared Rwf8 million if one is to import the same type of bikes,” he said. Kabeera added that STRAWTEC, which makes building materials from compressed agricultural waste like rice and wheat stalks, is one of the exhibitors that will showcase low-cost housing solutions and building materials. “The firm’s products are affordable, eco-friendly and ensure sustainable housing solutions,” Kabeera said in an interview with The New Times over the weekend. “Previously, people used to think about Made-in-Rwanda products in terms of handicrafts. But through continuous sensitisation and outreaches, Rwandans have increasingly come to appreciate locally-made goods,” he said. The year will mark the fourth edition of the annual Made-in- Rwanda trade fair that is slated for November 29 to December 5 at the Gikondo expo ground in Kicukiro. Supporting manufacturers Emile Nsanzabaganwa, the chief executive officer of Kinazi Cassava Plant, said the Made-in-Rwanda exhibition gives manufacturers a platform to showcase their products to the Rwandan people. He added that it is crucial to market and...

Experts from 14 regional countries including Rwanda will this week deliberate on how they can consolidate the strong performance of the region while ensuring the economic transformation needed to reduce poverty and achieve the Sustainable Development Goals. This will be during the Intergovernmental Committee of Experts (ICE) which meets in Moroni, Comoros, next week. It is organized by the United Nations Economic Commission for Africa (ECA) in partnership with the government of Comoros. “This will constitute an excellent opportunity for experts from the region to discuss some of the major bottlenecks and catalysts for growth,” said Andrew Mold, the acting director of the ECA sub-regional office in Eastern Africa. “There is also a special session dedicated to discussing the development trajectory of the host country, during which ECA’s Comoros profile will be presented. The session will focus on the country’s long-term growth strategy, and opportunities in the tourism and energy sectors.” According to the Commission, the growth rate of Eastern African countries has been among the fastest in the world in recent years, averaging 6.8 per cent between 2012 and 2015. However, it is noted that in 2016 and 2017, the regional growth rate declined to 5.6 per cent. The evolution of per capita income growth has reportedly been much more modest while instability has increased, and the meeting will focus on different sectors that constitute either catalysts or constraints to growth and structural transformation. It is noted that the expansion of the tourism sector, the vast potential of the...

Betty Makena is Kenya’s first ever woman Port Inspector. She is working for the International Transport Federation (ITF) based at the Mombasa Port. She is responsible for the safety and welfare of passengers and crew members ashore. It is also her mandate to ensure proper employment and living conditions for staff. Speaking to the Saturday Standard, Ms Makena says hers is a physically demanding job that requires her to be fit. “It is a hectic job considering that majority of vessels that call at the port are the modern versions which are large. Therefore, one has to be physically fit to endure the scaling up and down of the ships,’’ she says. She joined ITF in 2012. She previously worked in the telecommunication department at the Kenya Ports Authority (KPA). In line, she was the third ITF Mombasa Port Inspector since the country joined the global ports network which today boasts of having 136 inspectors. Captain Salim Khamis was the country’s first port inspector from the year 2000 to 2002. He was succeeded by Juma Khamisi (now deceased) who served from 2003 to 2009. During the interview, she floored 13 men, majority of who were ship captains, to get the job. She was the only one, among the other candidates, with a strong trade union background which forms a key requirement for one to be appointed an ITF inspector. While working at KPA, Ms Makena was elected first Gender representative at the Dock Workers’ Union and the Central Organisation of...