The inefficiency of our public transport infrastructure, on which our neighbouring states of Uganda and Rwanda also depend, has long been a national embarrassment. For many years now, we have been told that it took a much shorter time to ship goods to the Port of Mombasa from manufacturing centres in the Far East, than to deliver these goods by road from Mombasa to Malaba on the Kenya-Uganda border. Now that “the trains have arrived”, which will run on the brand new standard gauge railway, all this embarrassment will supposedly soon end. This SGR project, however, is not universally celebrated. Eminent critics insist that there has never been a greater white elephant in all of East and Central Africa. And that it is something of an economic crime to burden the country with such massive debt, when there will be so little direct economic benefits to be received from this SGR. I have no strong opinion either way on this. But what I do know is that the ultimate value of giant infrastructure projects is to be found not so much in the project itself, but in the “multiplier effects” that should follow. The Kenya-Uganda railway, for example, was built back in 1900 primarily to “open up the interior” of East Africa: to facilitate the establishment of a modern agricultural economy through the arrival of “White Settlers” who would carve out of the African Savannah large plantations for growing the valuable cash crops of the day. This was very successful....

The American Apparel & Footwear Association (AAFA) has entered into a partnership agreement with the East Africa Trade and Investment Hub to ensure best-in-class manufacturing of goods destined for the US market from East Africa. Signed yesterday (21 February) in Las Vegas, the agreement launches the 'East Africa Cotton, Textile and Apparel Initiative' to establish sustainable workforce development programmes and institutionalise environmental, social, labour and worker safety best practices in the region. The aim is to work with East African governments to raise industry standards, promote job creation, and increase trade and investment. US retailers and East African businesses are expected to both benefit from the initiative. The Hub, a United States Agency for International Development (USAID) organisation, will work to help East African governments and private sector entities institutionalise the best practices and standards that US apparel, footwear, and travel goods sourcing companies require. It is hoping to support the creation of 45,000 jobs across Ethiopia, Kenya, Rwanda, Tanzania, and Uganda in the first three years of the initiative, as well as creating jobs and further growth in the US apparel, footwear, and travel goods sector. Meanwhile, the AAFA says it will actively engage in advocacy activities before country governments in East Africa and lead private sector engagement. It will also "strengthen US manufacturing and support US jobs and economic growth" for its brands while encouraging companies and their suppliers to develop sustainable operations in East Africa. East Africa is establishing itself as a key sourcing destination for global apparel,...

Vice President Hamid Ansari today termed business ties of India with Uganda "dynamic" and key to bilateral relations but said the trade between the countries is yet to reach its "true" potential. Ansari was speaking at a India-Uganda Business Forum where he met President Yoweri Museveni and Vice President Edward Kiwanuka Ssekandi and held bilateral talks with them. "Our commercial and business ties with Uganda are dynamic and form a key pillar of our bilateral relations. It is a matter of satisfaction that India is one of the largest trade partners of Uganda but at USD 615 million, our bilateral trade is yet to reach its true potential," Ansari said. At the forum, Ssekandi pitched for greater investment from Indian companies in the resource-rich country, and termed his country as a "business destination for India". "I came away from that meeting with a reinforced confidence in the desire of the two governments to continue to engage with each other and a send a powerful message to the business community in both of our countries that here are the business opportunities which have to be availed of," he said. "The President was particularly emphatic in pointing out that the Indian manufacturers in a wide range of areas can benefit very considerably, and what the minister (of Trade and Industry, Uganda) said a few minutes back, my factoring in the thought that they are not looking at a modest market in Uganda only, but on a much wider market of the Eastern...

Landlocked countries in the region are watching with interest the mega infrastructure projects that are taking place in countries along the Eastern Africa coastline. Countries such as Uganda, Rwanda, Eastern Congo and South Sudan are currently heavily depended on the port of Mombasa for their imports. Limited alternatives have always seen them put up with high costs, delays and congestion at the port of Mombasa but this could soon change, as Tanzania spends big on upgrading its ports of Dar es Salaam and Tanga and building corridors connecting the ports to the hinterland and neighbouring countries. Djibouti, while not a traditional competitor to Mombasa, is also spending large sums in infrastructure upgrade, with the help of China in its ports and setting up a free trade zone that it expects could be the ‘Dubai’ of the Great Lakes region. While there has always been talk of importers and shippers ditching Mombasa for Dar es Salaam, experts say the new developments when complete will keep Kenyan port operators on their toes. Already, there is a sense that power is shifting in the region, with Kenya’s tradition partners keen on playing a bigger role in the region. Kenyan neighbours – and even Kenyan importers – have over time expressed discontent with delays and congestion at the Port of Mombasa but have lacked alternatives. The delays and congestions have always had the effect of pushing up prices of imported goods in the region. Among ongoing and planned infrastructure development on the Tanzania coast...

At the close of the fourth round of the inter-Burundian dialogue held in Arusha from 16 to 19 February, Mkapa said it is imperative to convene an extraordinary summit of Heads of East African Community states to boost the dialogue process. “There is an imperative need to hold an extraordinary EAC summit to look into the obstacles that cause the dialogue process to drag on. It is an emergency. I will present this to the mediator and the current EAC President as soon as possible, “Mkapa told journalists on 19 February. The facilitator in the Burundian conflict requested Burundi crisis stakeholders to commit themselves to peace, comply with the principles and spirit of the Arusha Peace Agreement and the Constitution. Mkapa said that participants generally agreed on the key points discussed namely the return of refugees, the improvement of the political climate, the economic sanctions imposed on Burundi and the return of the exiled politicians. He said, however, that there are certainly divergences in their implementation. “I remain convinced that the four themes form the basis for the next dialogue session,” Mkapa said. The facilitation in the Burundi crisis had organized the 4th dialogue session for the actors in the Burundian conflict, but the Government of Burundi rejected that invitation. It accused the facilitation team of having invited some members of the coalition of opposition political parties CNARED wanted in Burundi. They are accused of being involved in the coup against the Burundi institutions. “EAC must impose sanctions on the...

It is crystal clear that the relation of Ethiopia and Sudan is evolving to the level of mutual trust. Their cooperation in investment and diplomatic communication has continued growing. Ethiopia has been working with all nations close by to capitalize regional interrogations. It as well is striving to address infrastructural gaps on top a underpinning power as well as trade and human development endeavors. Ethiopia is showing unwavering commitment towards furthering relationship between the aforementioned nations. The country's clicking with Sudan could corroborate the case in point. For mutual benefits, Sudan the trustworthy nation in pursuing and willing to establishing proper relations with the Nile Basin countries. tBoth nations have demonstrated notable cooperation in the utilization of the Nile River in this system. Both Ethiopia and Sudan believe that Nile is surely a source of cooperation and mutual benefits among neighboring countries. The economic and security interdependence Ethiopia has developed with Sudan is considered to be a lasting investment for both. Its political leadership's commitment is attributable to the achieved important gains in economic integration. For instance, the volume of trade has been increasing significantly showing 27 percent annual growth since the Preferential Trade Agreement was signed between the two sides before ten years. Last week, the 18th session of the joint Ethio-Sudan border development conference had been held in the town of Mekele, northern Ethiopia. The conference's focus was among the initiatives by the two countries geared towards strengthening ties. The monumental ties of Sudan and Ethiopia could be...

When it comes to non-tariff barriers, each country in the East African Community has a story of its own: If not complaining about another member state, the said country is imposing its own, according to a report on the elimination of non-tariff barriers in the region. The report points fingers at Tanzania as the country with the highest number of NTBs in the region. For example, to register any product in Tanzania, one is required to pay $2,000 against other countries in the region charging $1,000. After registration, Tanzania demands the same price for renewal after every five years besides an annual retention fee of $300. According to the report, presented to the EAC Sectoral Council of Ministers on Trade, Industry, Finance and Investment on February 2, the Tanzania Food and Drug Authority (TFDA) registers injectables and other products per pack size and treats each pack as a product by itself. In other countries in the world including the other EAC states, manufacturer's register all products as one but highlight all the presentations on the same certificate. "Kenyan exports to Tanzania are subjected to verification three times -- at the manufacturers premises, and the trucks have to pass through ICD for full verification at the border. This consumes time and is costly for Kenyan exporters," said the report adding that Tanzania also has a pallet fumigation requirement for Kenyan wood pallets to enter into Tanzania. The 75 per cent rules of origin requirement for tobacco originating from Kenya to enter...

Clearing and forwarding practitioners want East Africa (EA) governments to pass laws regulating the industry to deter malpractices associated with handling import and export cargo. The Federation of East African Freight and Forwarders Associations(FEAFFA) this week said that introduction of a Single Customs Territory for the region had affected their operations as they were now required to understand how each country’s law are applied on matters import or export cargo. FEAFFAs executive director John Mathenge said there was also need to have a single regulatory authority for the East African Community (EAC) to help create a seamless arena for clearing agents and freight forwarders to operate in. “The Bill is an important step towards creation of a harmonised regime making it easy for our members to operate across borders while ending the raging confusion that makes it impossible to create rules and regulations for our industry,” he said. The meeting observed that Kenya, Uganda, Tanzania and Rwanda were yet to formulate a standard definition of tasks handled by FEAFFA members creating loopholes for graft to thrive at ports and border points. It noted that heightened activities at ports also saw many FEAFFA members engage in undercutting deals, adversely affecting operations and causing disagreements among members that have in the past raised integrity issues affecting even customs officials. Mr Mathenge said while the EAC had passed a law defining the role of FEAFFA members and customs agents, no country had domesticated the same denying them an opportunity to formulate professional standards...

Kenya’s ambition to accommodate larger aircraft and introduce fast trains features prominently in the estimates that Treasury secretary Henry Rotich unveiled last week. Construction of flagship projects required to facilitate the changes is set to start at the tail-end of President Uhuru Kenyatta’s first term after agencies running the segment received the lion’s share of the development budget. The Kenya Airports Authority (KAA) which has the immediate task of overseeing direct flights to the US and expanding county airports to accommodate bigger planes, has been allocated Sh8.5 billion for its projects. To start direct flights, the Jomo Kenyatta International Airport (JKIA) must meet a raft of safety and security parameters under the International Aviation Safety Assessment (IASA). Kenya has been implementing a raft of recommendations by the US government to enhance security, among them separation of passenger arrival and departure terminals, clearing the flight path, and fencing off the airport. “For KAA, there is an immediate task of remodeling and expanding terminals B, C and D of the JKIA,” Transport and Infrastructure PS Irungu Nyakera told the Business Daily. “At least 15 per cent of the allocation will be spent on construction of a second runway at JKIA while the rest will be compensation of land owners in Malindi and expansion of the Isiolo runway.” On the other hand the Kenya Railway Corporation (KRC), which is working on the standard gauge railway (SGR), tops the list of development fund recipients with a total allocation of Sh311 billion for projects in...

The East African Community partner states have agreed to renew the war on water hyacinth. Burundi, Kenya, Rwanda, Tanzania and Uganda also proposed that governments and other players develop pollution prevention and control master plans for all major sources of pollutants within the lake basin. These are some of the 23 recommendations made by scientists from the regional bloc that are expected to ensure sustainable development of the Lake Victoria Basin. The scientists, who presented a record 47 research papers, concluded that the campaign to save Lake Victoria needs firm political commitment and more resources. Last week, during the Lake Victoria Basin Environmental Research and Scientific Conference in Mwanza, Tanzania, permanent and principal secretaries from the five partner states signed the resolutions for the first time in the region’s history. Raymond Mngodo, the Lake Victoria Environmental Management Project regional coordinator, read the recommendations on behalf of the delegates. CLIMATE SMART TECHNOLOGIES The proposals require the states to develop a shared basin-wide framework for water quality monitoring and research. The delegates also recommended cleaner production technologies among industries and municipalities as an industrialisation strategy for the basin. “The recommendations from this conference should be used to advance sustainable development agenda to the Lake Victoria Basin Commission’s strategic plan 2016-21,” Dr Mngondo said. Another issue that emerged was the need to profile, prioritise and promote climate smart technologies, adaptation and resilience strengthening measures. This includes promotion of alternative energy efficient technologies to reduce the effects of climate change. Partner states were also...