KAMPALA –In a game-changing move, the Kenya Ports Authority (KPA) has garnered praise from a cross-section of Kampala traders, for introducing Kargo Pay, a cutting-edge electronic payment system. This alternative cargo payment mode is set to revolutionize efficiency and expedite the settlement of port charges. One of the traders lauded the new system as a game-changer in the clearing process, predicting significant time savings and improved turnaround for traders. Clearing goods at the port, a historic challenge for traders is set to become a streamlined and secure process, sparing them from the hassles of physically transporting large sums of money to Kenya. Another trader also emphasized the newfound convenience of Kargo Pay, allowing traders to clear goods remotely, even during night hours, from the comfort of their homes—an unprecedented advantage in their trade endeavors. The system launched as a response to evolving industry needs in 2023, has been warmly received for its ability to facilitate transactions in the local Ugandan currency, a feature that aligns seamlessly with traders’ preferences. Christened “Kargo Pay”, this system not only champions currency flexibility but also introduces alternative payment methods such as bank cards and mobile transfers. By eliminating the need for physical visits to banks, Kargo Pay enhances convenience, providing a transformative solution for the clearing of goods. Kargo Pay has potential to alleviate clearing of cargo headaches. While recognizing the app’s benefits, traders suggested improvements to it, showcasing the traders’ openness and enthusiasm to embrace digital solutions that enhance operations. KPA, during a...

What you need to know: The East African Community (EAC) partner states have been directed to gear up for the App’s operationalization by April 30 this year Arusha. A new mobile App intended to fight trade barriers in East Africa will be rolled out soon. The East African Community (EAC) partner states have been directed to gear up for the App's operationalization by April 30 this year. The facility has been developed to ease the reporting, monitoring and elimination of non-tariff barriers (NTBs) in the bloc. This allows the users to report the complaints in any of the three official languages of the EAC, which are English, Swahili and French. The App can be downloaded from the Apple Store, Google's Play Store and other such stores. It can be accessed through https://eac-mobile.portal.africa, according to a statement from the EAC secretariat. The directive to roll out the App by April 30 was made at the ministerial meeting of the EAC held in Arusha last Friday. The App was developed with the support of Trademark Africa and finalised and piloted during the National Monitoring Committee (NMC) meetings last year. The App was officially launched in December last year in Bujumbura by the EAC secretariat but is awaiting formal operationalization. According to the EAC secretariat, operationalization of the App in April 30 will be preceded by sensitization and capacity building for relevant public and private sector officials and other stakeholders. NTBs have been a major hindrance to the free movement of goods as...

PRESIDENT Emmerson Mnangagwa has called for a speedy establishment of a one-stop border post between Zimbabwe and Botswana. He said this while addressing delegates attending the 4th Zimbabwe-Botswana Binational Commission Summit underway in Botswana. “The unrestricted movement of our citizens as well as goods and services is an essential cog to stronger economic cooperation. In this spirit, the establishment of the One Stop Border Posts should be expedited,” he said. In the same vein, the President said the proposed railway line between Botswana, Mozambique and Zimbabwe must be pursued as it will promote rail connectivity in the region. “The development of cross border infrastructure projects to increase our economic efficiencies and competitiveness must be pursued with greater vigour and confidence. The proposed railway line between Zimbabwe and Mozambique (known as the Ponta Techibanjne Inter-Regional Heavy Haul Railwa Project) is highly anticipated for greater rail connectivity in the region.” President Mnangagwa also called for investment and cooperation by the private sectors in the renewable space to support industrialisation of economies. The 4th Zim-Botswana Bi-National Commission is set to further solidify the already strong bond between the two neighbouring countries as well as unlock avenues for collaboration. Read original article

Nairobi, 8 February: The Government of the Netherlands, through its Ministry of Foreign Affairs, in a significant boost to global trade development, has announced a $63 million funding to TradeMark Africa, a leading aid-for-trade organisation. This strategic investment will fuel TradeMark Africa's Strategy 3, covering the period till 2030, aimed at driving green, sustainable economic growth, fostering innovative trade practices, and promoting inclusive trade across Africa. This move underscores the Netherlands' commitment to enhancing economic opportunities, job creation and facilitating sustainable trade throughout the continent. Marchel Gerrmann, Ambassador for Business and Development Cooperation at Netherlands Ministry of Foreign Affairs, said: “TradeMark Africa will significantly contribute to a more inclusive and prosperous trade landscape for the African continent, benefitting both African and Dutch businesses." The Netherlands’ contribution will be invested in strengthening trade systems so that they benefit local exporters, foster economic growth, and create sustainable livelihoods across diverse sectors. This investment will be instrumental in improving market access for local products at the global level, in addition to bolstering initiatives that drive innovation, research, and development within the African market, enhancing competitiveness and green trading practices. As part of its Africa Strategy, the Netherlands contributes towards the implementation of the African Continental Free Trade Area (AfCFTA). The AfCFTA is expected to boost intra-African trade over 30% by 2045 and is projected to provide an average extra 2.7% GDP boost across the continent. The AfCFTA could lift 30 million Africans out of poverty by 2035, offering market opportunities to both African...

What you need to know: They questioned the authorities on their commitment to ensuring that all cargo leaves the port within a maximum of five days after completing all customs procedures Dar es Salaam. Members of the East African Legislative Assembly (EALA) visited the Dar es Salaam port on February 8, 2024, and raised concerns over key challenges affecting users of the facility in particular and the central corridor in general. Led by the Chairperson of the Committee on Communication, Trade, and Investment (CTI-EALA), Rutazana Francine, Eala members highlighted the challenge of cargo delays and issues related to cargo storage facilities, which increase cargo handling costs at the port. "We started our visit on the central corridor on February 4. We meet stakeholders, including operators, investors, traders, and customs officials from both here and EAC member countries. Despite being satisfied with the performance of the port, they raised a few challenges," stated Rutazana, an Eala member from Rwanda. Ms Rutazana questioned the port management on their commitment to ensuring that all cargo leaves the port within a maximum of five days after completing all customs procedures. She expressed bewilderment at the persistence of complaints about cargo delays, leading to fines imposed on traders. “Another issue is the increased demand for the port; are there other areas for cargo storage to enhance efficiency?" she added. Responding to these concerns, Mussa Biboze, the representative of the director of the Dar es Salaam Port, said the port operates efficiently despite some minimal challenges,...

In Summary Trade policies, particularly the ad hoc restrictions to trade leading to export and import bans, have seriously affected grain trade in the region. Factors positively enabling regional cross-border trade in grains are the diverse agro-ecology that delivers a harvest of grains all through the year. Gerald Masila, Eastern Africa Grain Council (EAGC) Executive Director and JudyAnne Wanjiku, managing director EFKen Leasing Ltd (EFKen) sign a Memorandum of Understanding (MoU) to provide lease finance for mechanization to farmers and Micro, Small and Medium Enterprises (MSMEs). Image: EZEKIEL NG'ANG'A The grain trade in Eastern Africa struggles with quantity and its quality and safety. As a result these affect the price and health of the consumers. Star reporter Agatha Ngotho interviewed Gerald Masila, executive director, Eastern Africa Grain Council, about some of the challenges facing the grain trade in the region over the years. What is EAGC and what do you do? The Eastern Africa Grain Council is a membership council of firms and organisations in the grain value chains in the Eastern Africa region. It is not for profit and the main objective is to ensure quality and safe grain are produced and traded through the supply chain, in an efficient and inclusive manner resulting in minimised costs and increased return on investment. EAGC members include small holders, medium and large-scale commercial farmers, grain traders and warehouse operators who aggregate and trade in grains, processors who take in grain raw materials. What are some of value chains you deal with? Key cereals and pulses we deal with...

In December, the EU and Kenya signed a trade agreement featuring strong provisions on environmental, social and labour standards. Niels Keijzer, Frederik Stender and Tim Vogel write that as Kenya walks the fine line of compliance, the outcome could not only shape the country’s economic landscape but also have implications for Kenya’s role in the African Continental Free Trade Area. Trade policy is a tough business in today’s competitive global landscape. Despite its considerable experience in this area, the European Union has experienced this first-hand. While the trade agreement between the EU and the Southern American trading bloc Mercosur remains in limbo, the EU’s trade negotiations with Australia collapsed due to differing ideas about market access. Talks on agreements with Indonesia and India are also not going smoothly. A common stumbling block is the EU’s desire to use trade agreements to promote its values and standards in a variety of areas. Further below the public radar, however, the EU has recently concluded such a “comprehensive” trade agreement – and with a close and growing market. After reaching a political agreement in the summer of 2023, the EU signed a trade agreement with Kenya on 18 December. The agreement will enter into force once the European Parliament has given its consent and the EU and Kenya complete their respective legal procedures. The agreement The EU-Kenya agreement features among the EU’s most ambitious trade agreements concluded with developing countries, not just in relation to trade but also with respect to broader objectives. Beyond the conventional focus on tariffs, the agreement...

Avocado stakeholders have warned producers and exporters to stick to global standards if they are to earn from the high-value fruit following a harvesting suspension that has been in place since October last year. Okisegere Ojepat, the Chief Executive Officer, Fresh Produce Consortium of Kenya warned those involved in the export of immature avocados that they risked various penalties, including cancellation of their licenses. Ojepat added, “But even if the market opens, it’s not a guarantee that everything will go away. We must ensure by all means that we guard this market by maintaining the highest quality standards. For those who do not comply, the law will take its course.” He said that government inspectors are carrying out an assessment to ensure that the country has a proper fruit that is mature, and has the right dry matter content as is required. “No avocado will be allowed to the export market without attaining the required 24 percent dry matter content,” added Ojepat.“We want to encourage our members to comply with the world global standards that the market requires and to ensure that the dry matter and traceability are maintained in the certification but most importantly they secure their orders and secure proper arrangements.” Ojepat said the sector players are upbeat about good fruit and high volumes following indicators from the field inspections. The production volumes, he added, are expected to increase by 10-12 percent. “We are looking forward to a good season following good rains and capacity building exercises that...

For many Rwandan women living near the country’s boundary with the Democratic Republic of the Congo (DRC), cross-border trade is a major part of their livelihoods. For Verena, a mother of five who regularly makes the 10km journey from the Rwandan wholesalers to the Rusizi II border to sell produce, this is her family’s sole source of income. If she is unable to find a truck to transport everything across the border, Verena must carry the produce the last kilometre by herself, which means spending most of the day on the road. “At times we carry products on our heads, which in that case means going back and forth at least three times a day,” Verena tells Robert Kovacs, who visited Rusizi last May with the International Organization for Migration (IOM). Cross-border traders like Verena can expect to make a profit of around 1,000 RFW a day – well below the global poverty line of US$2.15. What’s more, Covid-related restrictions at the border now mean Rwandan traders have to rely on brokers to sell their products in Congolese markets, which can be costly. “Agents often cheat us by lying that they made losses,” says Verena. “Others take products on credit and don’t pay, which exposes us to losses and hurts our trade.” In the face of these challenges, women like Verena who trade across the Rwanda-DRC border have turned to the co-op model for protection, and to pool their resources. For the past three years, the IOM has been working with...

Trade Principal Secretary Alfred K' Ombudo on Wednesday clarified that there is currently no ban on Air Freight Exports for fresh produce from Kenya to the European Union. The PS noted that the government was not aware of any ban on Kenyan fresh produce exports as earlier indicated by reports by a local daily. “So, there is no ban, and for our exporters, sea freight is a useful addition to airfreight,” the PS clarified. Media reports which have since been flagged as inaccurate had indicated that Kenyan exporters were currently shifting to sea freight for fresh produce as opposed to air travel which the European Union (EU) had allegedly banned. However, the PS elaborated that Kenyan exporters already preferred to use the sea as it was a cheaper and allows for more customised cold storage facilities. As such, he stressed that the trend was not informed by a ban but rather, shaped by preference. Different types of flowers in containers awaiting shipment.  “Already, a substantial quantity of Kenyan exports into Europe are freighted by sea. These are for products such as mangoes and avocadoes," PS Ombudo noted. Some commentators had previously argued that sea freight was costlier and a slower means of delivering fresh produce to the EU, a comment which the PS has contested. “And although most flowers are freighted by air, some are starting to use sea freight, as this will get cheaper and greener,” Ombudo stated. The PS further revealed the government’s plans and involvement to increase the transition...