In East Africa, Uganda has entered into a Memorandum of Understanding (MoU) with South Sudan, which will see Kampala extend electricity to South Sudan’s border towns of Kaya and Nimule. Uganda’s state minister for energy Simon D’janga, explained that the agreement is in line with the East Africa Community Power Pool Agreement, which calls on all member states to connect electricity to each other, the Sudan Tribune reported. “Uganda is already implementing cross-border electrification with Rwanda and Tanzania, which is supplying power to Rakai, and we are going to connect power to Eastern DR. Congo,” D’janga said. “All the power is coming from Uganda. We will supply 400KV of electricity we already have electricity in Nimule and Kaya but on Uganda side and now we want to extend it inside South Sudan,” he added. Cross border electricity trade Media reported that South Sudan’s electricity and dam’s minister, Dhieu Mathok Wol, said the electricity agreement fulfils the regional leaders’ agreement to electrify the border towns to spur socio-economic activities in the border towns and reduce refugee migrations into Uganda. “It is President [Yoweri] Museveni’s idea that people in border towns be given electricity to spur socio-economic activities so that it can reduce refugee migrations into Uganda,” Wol stated. According to the Sudan Tribune, both governments signed a MoU to establish mechanisms for the project’s implementation through the formation of joint committees that will be responsible for mobilising funds meant for the project. Media cited the minister stating that South Sudan has...

In order to achieve our economic goals as envisioned in the 2030 development blue-print, we need to be deliberate in creating an export push for our local goods. A growth in our export value will not only increase revenue to our country through foreign exchange earnings, but will also have a socio-developmental impact by catalyzing the creation of productive jobs, thereby absorbing the large numbers of unemployed youth. In other words, exports ensure a healthy circular flow of income, stimulating an increase in the production of local goods and expansion of industries, consequently opening up opportunities for employment. Raising the national income also translates to increased public funds that would enable the Government to adequately provide and maintain the equal distribution of public goods and basic amenities for all citizens, ultimately increasing their quality of life. Export growth is not just beneficial for economic growth, it the supports social and political development of a country. The unveiling of the National Trade Policy mid this year re-sparked enthusiasm in industry, as it sort to enhance export competitiveness through investment in value-add industries thereby expanding our regional and global markets. In fact, the new policy places emphasis on turning Kenya into an Export-led economy, in an effort to support inclusive development. Whilst this vision is indeed laudable, the tangibility of it is still out of reach owing to various challenges faced currently both locally and regionally. At the moment, despite the immense opportunities that lie in the region, Kenya’s total export earnings...

Small-scale traders along the Rubavu-Goma border have raised concerns over what they perceive as an ‘illegal tax’ levied on them by DR Congo officials. Their protest is hinged on an existing bilateral as well as regional trade framework exempting import duty from those dealing in products not exceeding the value of $2,000. On the Rwandan side at Petite Barrière border post in Rubavu, there is a flurry of activity, with traders crossing into Rwanda while others at exiting to DR Congo. This was last week when The New Times visited the facility, but traders said that local officials in Goma (in DR Congo) do whatever they want, with some unsure whether the levies they are subjected to are sanctioned by authorities in Kinshasa. “In Rwanda, we are not required to pay any import tax but back home officials ask for money every now and then,” said Buyana Bibishe, a Congolese fishmonger. “That’s how it is there. I can say we are used to it but it is not good.” Her type of merchandise is number 10 on the harmonised common list of products eligible under the COMESA Simplified Trade Regime (SRT) between Rwanda and DR Congo, which was launched in 2016 to allow small-scale traders to import products not exceeding the value of $2,000, duty free. Olive Mukashyaka, a Rwandan who deals in garments, said that, in Goma, police and other local authorities demand for money as tax and that there is no standard amount. “Some will ask for 500...

Data from SWIFT shows that FIN traffic growth in East Africa has outperformed the total growth of SWIFT globally. In the year to date, total message traffic volumes grew by 20.1% versus 8.2% growth for SWIFT worldwide. This clearly illustrates the increasingly important role that East Africa plays in SWIFT’s global business. Figures released at SWIFT’s Business Forum East Africa also show intra-regional traffic has increased 19.8%. Data also shows that intra-regional FIN payments traffic is up 19.8% from 2015, and now accounts for 69% of FIN payments traffic in the region. The average daily number of messages has almost double since 2013, from 15,234 to 27,907 in 2016. This growth in intra-regional FIN payments could be a reflection of the success of the East African Payment System, which was established by the East African Community in 2013. The multi-currency system, operating on SWIFT, links the domestic payments systems in Kenya, Tanzania, Uganda and Rwanda. It makes cross-border fund transfers much easier within the Community, supporting the free movement of goods, labour and services. The system aims to reduce transaction time and lower the cost of doing business in the region. SWIFT traffic growth in the East African Community is significantly higher than the rest of the continent, which also saw major growth. Total message traffic volumes in Africa have increased by 15.4% this year. This is still greater than in EMEA overall at 9.4%, the Americas at 7.8% and Asia Pacific at 5.4%. The growth in East Africa is...

The Minister of Energy and Mineral Development Irene Muloni has said that fuel supply to Uganda has remained stable in the medium term and is able to support the growing demand of 7% per annum for Petroleum Products. “Rt. Hon. Speaker and Hon. Members of Parliament, the supply of Petroleum Products into the country, has been stable. Loading out of Kenya terminals of Eldoret, Kisumu, Nakuru, Konza and Mombasa together with Dar es Salaam in Tanzania is normal without interruptions,” Muloni said while presenting a report on the status of petroleum product supply in the country. She said the import into the country for mid-September 2017 was 85,048,119 liters comprised of 34,699,986 liters of Petrol, 42,694,601 liters of Diesel, 2,653,532 liters of Kerosene and 5,000,070 liters of Jet A-1. Muloni said tendering for supply of Products continues to take place monthly in Nairobi Kenya and that  a tender meeting was held two weeks ago for the supply for November 2017. she said the cargoes received through Mombasa port contributes 92% of the country's monthly requirements while the reminder (8%) comes through the Dar es Salaam Port. She said for stocks, the country has a combined total cover of 14 days' supply. Of these, twelve (12) days are provided by the private OMCs and two (2) days by Government storage facilities at Jinja. Therefore, in view of the above, Muloni said: “we are prepared and will continue to do everything possible to ensure a steady supply of petroleum products to the...

Ministers from Eastern and Central African blocs meet today in Republic of Congo capital Brazzaville to chart a common position on the COP 23 in November in Bonn, Germany. COP 23 is the latest of the series of meetings of Conference of Parties that are signatory to the Kyoto Protocol, an international treaty through which that member states commit to reduce greenhouse gas emission. The ministers expected to meet today in the Republic of Congo capital of Brazzaville are from the East African Community (EAC) and the Economic Community for Central African States (ECCAS). Rwanda subscribes to both blocs. The central focus of the meet is the acceleration of the operationalisation of the climate commission for the Congo Basin. Also on agenda is developing a strategy on how to speed up the operationalisation of the Congo Basin Commission of which the Blue Fund of the Congo Basin, the Green Business Fund and other initiatives created to ensure economic development within the region do not compromise environment conservation. The Blue Fund for the Congo Basin was ratified by 12 countries, including Rwanda, that heads the Commission of Central African Forests. Finding common ground The ministerial meeting was preceded yesterday by one for experts from the two blocs. Rwanda is represented by Dr Jean Baptiste Habyalimana, the ambassador to the Republic of Congo. The EAC Principal Environment and Natural Resource Officer, Eng. Ladislaus K. Leonidas, said that the conference is an opportunity for the two blocs to share experience. "ECCAS and EAC...

The African Development Bank (AfDB) is currently looking for a co-financing partner to fund the 445 km Kenya-Tanzania highway, officials said. AfDB Chief Regional Program Officer Lawson Zankli told Xinhua in Nairobi in a recent interview that his bank has tentatively set aside 300 million U.S. dollars towards the road project that runs along the East African Coastline from Malindi in Kenya to Bagamoyo in Tanzania. "We are looking for partners to bridge the remaining 485 million dollars required to complete the transnational highway," Zankli said. The project will consist of rehabilitation of 215 km of bitumen road on the Kenyan side and upgrading from gravel to bitumen standards of 230 km on the Tanzanian side. Zankli said that AfDB is to play a catalytic role in attracting funding from other partners. AfDB's board is expected to approve funding in mid 2018 to pave way for actual construction by the end of next year. Zankli said that environmental and social impact studies for the road project are currently ongoing. He noted that the road is expected to boost the key economic activities along the Indian Ocean coast such as tourism. "The improved infrastructure will help in easing movement of tourists along the Kenya-Tanzania coastline," he said. AfDB's current portfolio of projects in the Eastern Africa region is about 9 billion dollars, out of which about 70 percent is committed on transport, energy and water infrastructure projects. The Eastern Africa region includes Burundi, Comoros, Eritrea, Ethiopia, Djibouti, Kenya, Rwanda, Tanzania, Somalia,...

Tea prices at the Mombasa auction slid to a one-month low on Tuesday, reversing a trend of sharp increases in the past few weeks amid panic buying due to political uncertainty in the country. Market data from the auction indicated that the price of tea dropped by a marginal Sh5 a kilo at this week’s sale to trade at Sh305, down from Sh310 last week. Jitters about prolonged electioneering have triggered a steady rise in tea prices. East African Tea Traders Association (EATTA), which manages the auction, said the prices realised this week are favourable despite the slight drop. “This is still a good figure, as we have only lost a few cents, when compared to last week’s trading,” said EATTA managing director Edward Mudibo. In corresponding sale last year, a kilo of made tea was sold at Sh231 on average compared with the current value. Mr Mudibo said there was demand in the latest sale with buyers still practising cautious buying on Tuesday. Mr Mudibo pointed out that most teas still traded at above Sh400 per kilo bringing the average price to Sh300. Mombasa is a regional hub for the tea trade with the auction selling teas from more than 19 African countries. Each variety attracts different a price based on quality. About 132,480 packages (8,630,000 kilos) of tea were available for sale in Tuesday’s trading, where 118,020 packages (7,726,498 kilos) were sold while 9.36 packages remained unsold. Kenya is a leading exporter of black CTC tea and the...

Reading the history of Africa, you can never miss the scramble for its acreage and the resources, leading to the illogical, politically instigated birth of countries as defined by the borders we now know. Communities and commerce were disrupted as traditional trade routes and peoples’ movements were choked. The rise of additional barriers to trade can be traced to this. Fast forward to present times; technology is getting deployed to address some of our most pressing needs as caused or exacerbated by colonial actions. Earlier this year we saw the fintech space grab headlines with an influx of venture funding. This did not come as a surprise, as in retrospect the movement of funds had been curtailed by the scramble for Africa, which in essence is one part of what underpins commerce. Money is now able to traverse the continent in a split second applied towards the exchange of value. The battle for that turf remains; whoever can move the bits and bytes faster and cheaper will win. The second part of the commerce equation is commodities. The medium of exchange can cross borders fluidly but the product side doesn’t enjoy such benefits, at least not yet. To move products, one requires infrastructure and inventory; both of which are a hodge podge of varied grade deployments in Africa. Infrastructure covers roads, railways, airports, ports, warehouses, holding docks among others. Inventory covers trucks, airplanes, wagons, and various motorised plus non-motorised transports with carriage capacity; all available in plenty but lacking a...

Africa’s leaders, along with everyone else interested in US-Africa relations, have waited eight months for US President Donald Trump’s administration to explain its Africa policy. We aren’t there yet. But in recent weeks Trump has indicated the level and extent of his interest. And, senior African affairs officials at the State and Defence Departments are at last attempting publicly to outline US goals and objectives toward Africa. This, apparently without much guidance from their president. Trump’s inaugural address to the UN General Assembly said little about Africa – barely one paragraph towards the end. One sentence praised African Union and UN-led peacekeeping missions for “invaluable contributions in stabilising conflicts in Africa.” A second praised America, which continues to lead the world in humanitarian assistance, including famine prevention and relief in South Sudan, Somalia and northern Nigeria and Yemen. The next day Trump hosted a luncheon for leaders of nine African countries –Cote d’Ivoire, Ethiopia, Ghana, Guinea, Namibia, Nigeria, Senegal, Uganda, and South Africa. Only his welcoming remarks have been published but they are nearly devoid of policy content or guidance. His opening gambit reminded me of a 19th century colonialist hoping to become rich, as he proclaimed: Africa has tremendous business potential, I have so many friends going to your countries trying to get rich. I congratulate you, they’re spending a lot of money….It’s really become a place they have to go, that they want to go. Trump called on African companies to invest in the US. Then, shifting to security cooperation,...