Cargo volumes at Mombasa and Dar es Salaam ports have grown amid intensified competition, with Mombasa touting its efficiency while Dar is offering what it describes as favorable terms. Tanzania this week announced the completion of the $420 million Dar es Salaam Maritime Gateway Project (DMGP) and plans to expand its maritime infrastructure as it opened storage for cargo destined to four East African Community (EAC) states. Kenya charges up to $1,200 more per 40-feet container passing through the port of Mombasa. But the attractive package offered by the Dar port has seen it grapple with efficiency challenges, prompting the management to mull diverting cargo to the Bagamoyo Port. Tanzania Ports Authority (TPA) Director-General Plasduce Mbossa said they planned the construction of six new berths in Dar and Bagamoyo through public-private partnership. Dar es Salaam Port’s current performance is low compared with Mombasa, Beira and Durban, forcing major shippers to skip it due to higher anchorage costs. Average waiting period for a ship to offload cargo cargo is five days in Dar es Salaam, compared with 1.25 days in Mombasa and 1.6 days in Durban. Mr Mbossa said Dar was modernising its equipment to reduce congestion. But that is not the only problem Tanzania is facing. Poor overland transport infrastructure, mostly the roads and railway from the Dar port has greatly affected performance. Railways carry only three percent of cargo handled at the Dar es Salaam port, Mr Mbossa said. TPA is searching for a contractor for two berths at...

Malawi’s decision to join the Central Corridor Transport Facilitation Agency has raised hopes among the business community and the government of improved efficiency gains. The agency, a key multimodal transport network, plays a vital role in linking landlocked countries in the region such as Malawi to the Indian Ocean port of Dar es Salaam in Tanzania. Speaking in an interview yesterday, Minister of Transport and Public Works Jacob Hara said joining the Central Corridor is a strategic decision as Malawi’s affiliation to the agency is expected to yield several benefits. He said: “We believe that this partnership will significantly enhance our access to the sea and regional markets, promoting trade and economic growth in our country. “Malawi’s accession to the Central Corridor Transport Facilitation Agency is expected to yield several benefits, including reduced trade costs, improved infrastructure, enhanced trade competitiveness and increased regional integration.” Malawi is globally recognised as one of the largest landlocked developing countries which depend on its neighbours to gain access to international trade markets. Drawing a comparison between trade costs in Mozambique and Malawi, the World Bank in its Harnessing Natural Resources for Economic Transformation Report, found that shipping a container from China to Beira Port in Mozambique costs about $3 000 (about K5.1 million) less than transporting the same container from Beira to Malawi. The bank indicated that while transport and logistics costs are high in many countries, those faced in Malawi and other landlocked developing countries in sub-Saharan Africa translate to competitive disadvantages, including...

Nairobi, Kenya, January 23, 2024 –The United States government, through USAID’s Economic Recovery and Reform Activity (ERRA) program delivered by TradeMark Africa (TMA) with funding from Feed the Future, has awarded a three-year grant worth US$2 million to the Eastern Africa Grain Council (EAGC). This funding will strengthen the competitiveness of export-oriented staple food value chains in East Africa. Through the five-year ERRA US$75 million program, USAID and TMA are driving transformative trade and investment reforms in the East and Horn of Africa to create jobs in the staple crops and textiles sectors, especially for women and youth. A core part of this is to increase the ability of grain producers to export both regionally and to the rest of the world. East Africa's immense potential for food grain production and trade has been hindered by low production rates, poor post-harvest management, and climate pressures. These challenges contribute to the low competitiveness of its staples in regional markets, reduced cross-border trade, production deficits, and postharvest losses that threaten the region’s food security. This facility with EAGC will directly tackle these challenges, removing trade impediments and building grain exporters’ capacity in Kenya, Tanzania, and Uganda across export value chains such as Maize, Beans, Millet, Sorghum, and Rice. Speaking during the signing ceremony, TMA’s CEO, Mr. David Beer, revealed that the strategic collaboration with EAGC and USAID will boost grain exports within the region. “This includes spearheading innovative strategies such as Grain Business Hubs, or G-Hubs. These are operated by farmers, who...

The full implementation of the African Continental Free Trade Area (AfCFTA) agreement is projected to increase real incomes by 7 per cent or nearly $450 billion. At the World Economic Forum 2024, President Paul Kagame reiterated the imperativeness of partnership between the private sector and the public sector in a manner that helps change the narrative about Africa being too risky a continent. Kagame was addressing the Forum of Friends of the AfCFTA held under the theme “Driving Action under the African Continental Free Trade Area” where an action plan to “Accelerate Global Business and Investment in Africa” report was also launched. The Forum partners committed to contribute to projects and investments in four key sectors that will spur socioeconomic transformation on the continent, under the AfCFTA. Agriculture and agro-processing Intra-African trade in agriculture is expected to increase by 574 per cent by 2030, if tariffs are eliminated under the AfCFTA. The agriculture and agro-processing industry plays a critical role in Africa’s economic transformation, a continent grappling with food insecurity yet endowed with resources for large-scale production. The report indicates that opportunities for private sector investment abound in agriculture’s long value chain, whether from fertilisers and irrigation for farming, or value-added processing, through storage and delivery to the end consumer. Including also an investment to develop and deploy accessible and affordable digital agritech tools, especially those of smallholder farmers. “Overall, the goal is to work towards transforming the agriculture and agro-processing industry to meet domestic food security and ultimately become...

SEISMIC change is underway in Africa. The United Nations projects that Sub-Saharan Africa will account for more than half of the growth of the world’s population between 2022 and 2050. That means that by 2050, one out of every four people on earth, and more than a third of the world’s young people (between the ages of 15 and 24), are expected to be African. Remarkably, during the same period, Nigeria is expected to surpass the United States as the world’s third most populous country. To be sure, Africa’s projected shift in population and the potential demographic dividend, in which a higher proportion of the population contributes to domestic production, will both reshape and drive global economic growth. In the coming era, Sub-Saharan Africa is expected to account for 90 percent of the growth in the world’s working-age population, and the region’s working-age population is projected to be larger than that of both India and China. This development is in the context of projected population declines in much of the world, including China, Germany and Japan. As a result, Africa is set to play a bigger role in shaping contemporary geopolitical and economic affairs. In September 2023, the African Union joined the Group of 20, the premier forum for international economic cooperation. The move gives the continent the same status as the European Union, which sits alongside 19 countries, including the UK, Russia and the United States. One of the defining questions of this century is: How will Africa create...

The Uganda National Bureau of Standards (UNBS) together with the South Sudan National Bureau of Standards (SSNBS) are set to harmonise sampling, test methods, and certification processes to enhance bilateral trade between the two countries. The resolution is one of the many reached during a meeting between the two National Standards Bodies held in Nimule. The engagement, which was led by both the UNBS Ag. Executive Director Daniel Richard Nangalama Makayi and the SSNBS Chairperson and Chief Executive Officer (CEO) Dr. Kuorwel Kuai Kuorwel, came after a recent standoff between Uganda and South Sudan over maize exports from Uganda, which saw a joint Ugandan delegation travel to Elegu-Nimule in 2023 to negotiate the release of impounded Ugandan trucks with maize grain and flour in South Sudan. Since then, UNBS embarked on batch sampling and laboratory analysis of maize grain and flour exports to South Sudan in designated sampling yards in Central (Afrokai in Matugga), Eastern (Uhuru Parking, Mbale), and Northern Uganda (Layibi in Gulu), utilizing the UNBS Central and regional testing laboratories. Since this intervention, 346 out of the 367 samples representing 94.2% of the total maize flour samples analyzed, complied with the standard requirements and were from 23 companies certified by UNBS. The two National Standards Bodies have thus agreed that; All products covered by Compulsory Standards including cereals and cereal products  (mainly maize flour) must be certified by UNBS before being exported to South Sudan from Uganda. A Sanitary and Phyto-Sanitary (SPS) certificate from competent authorities in Uganda MUST accompany other products exported...

Revenue collection has grown up to 42% as business at Katuna border steadily improves ever since Rwanda lifted  travel restrictions on Rwandan Nationals to cross into Uganda Katuna border businesses had been stagnant for about four years following closer with Uganda on February 27, 2019. At the time, Rwandan president Paul Kagame accused Uganda of spying on Rwanda, abducting Rwandan citizens locking them in none designated areas, as well as hosting and facilitating dissents . Rwanda then issued an advisory to it's nationals against traveling to Uganda,saying their safety was not guaranteed. After close to three years of no business at the border,Rwanda re-opened on January,31, 2022 and since then some of the businesses that had collapsed at the border started operating. However whereas the Katuna boarder was reopened,Rwandan Nationals crossing to Uganda were asked to each pay a shs5000 which was meant for a Covid PCR test which was a challenge to many of them. In addition, Rwandan nationals especially the small scale businessmen were stopped from buying food items and other essentials from Ugandan markets. However, in June last year, Rwandan Nationals were allowed to cross freely into Uganda to trade into Ugandan markets. Our reporter visited Katuna border where she noticed free movement of Rwandan Nationals crossing to Uganda freely to shop from Ugandan markets which has seen an improvement in revenue on the Ugandan side. In a phone interview,Edrine.M.Mutebi, the acting assistant commissioner in charge of public and corporate affairs at Uganda Revenue Authority said that...

Uganda is upset that it was kept in the dark about the negotiations around the government-to-government fuel deal between Kenya and two Gulf nations. PHOTO | NMG The dispute between Uganda and Kenya over petroleum imports boiled over in the past week, with an angry Kampala lodging a case at the East African Court of Justice (EACJ) against Nairobi for blocking its use of its pipeline to transport fuel. The case seeking to compel Kenya to grant Uganda permission to use the pipeline, some say, was the ultimate signal that relations between President Yoweri Museveni and Kenya’s William Ruto had broken for good. In times past, the two were bosom buddies, advocating open borders and more trade in Africa. Ruto had been appearing at political functions in Uganda before he became President. And then things changed and now they no longer attend each other’s national events, as Uganda started raising concerns about emerging non-tariff barriers erected by Kenya on bilateral trade. The oil deal seems like the last straw. There is more than meets the eye, said Nasong’o Muliro, research fellow at the Global Centre for Policy and Strategy. “It’s a rarity for an African country to sue another in an African court. And for that matter, involving historically interdependent neighbouring states such as Kenya and Uganda,” he told The EastAfrican. The two countries have bickered before on trade and even territory, but the fact that it rarely reaches the courts means the two sides always knew diplomatic channels were...

Nigeria Customs Service (NCS), yesterday, announced a partnership with the African Continental Free Trade Area (AfCFTA) Secretariat to facilitate trade on the continent. It also highlighted the stagnated growth of African trade system at 14 to 15 per cent over the past few years. NCS Comptroller-General, Bashir Adewale Adeniyi, while speaking during a meeting with AfCFTA members in Abuja, regretted the low trade volume in Africa, stating that the continent currently accounts for a paltry three to four per cent of global trade. Recognising the benefits of trade, including economic growth, job creation and poverty alleviation, Adeniyi expressed enthusiasm for the potential of AfCFTA and its objective of creating a continental free trade area. He described the Guide Trade Initiative as an important tool for countries to expand their markets, emphasising the need for collaboration to verify goods at ports of origin. The Customs boss noted that his administration had implemented measures to improve trade facilitation in Nigeria. In the first quarter of the year, the parties plan to conduct a time-release study in collaboration with other government agencies to streamline processes. Adeniyi equally underlined data analysis, announcing plans to train officers in this field. In his remarks, Secretary-General of AfCFTA, Wamkele Mene, while congratulating Adeniyi on his appointment, expressed excitement about finding solutions to trade challenges in Africa. He underscored the importance of cooperation between the two organisations in addressing trade impediments. Mene said the collaboration would significantly enhance trade and revenue generation in various African countries. The partnership...

What you need to know: Fostering regional trade, resource mobilisation and integrating new partner states are at the core of the EAC’s New Year agenda Arusha. The East African Community (EAC) is seeking to boost intra-regional trade to at least 40 percent of its trade with the rest of the world in five years – up from 11 percent currently. Fostering regional trade, resource mobilisation and integrating new partner states are at the core of the EAC’s New Year agenda. Attaining the target means increased efforts to eliminate a host of trade barriers that have persisted for years. EAC secretary-general Peter Mathuki has outlined measures, which he believes will foster intra-regional trade to the desired level. These include optimising the implementation of the Customs Union and Common Market protocols and implementing the four-band Common External Tariff (CET) to enhance trade competitiveness. Two years ago, the regional economic bloc adopted a CET structure of zero percent, 10 percent, 25 percent and 30-35 percent.”We endeavour to continue with its implementation to facilitate trade competitiveness,” Dr Mathuki said in his New Year address to EAC staff. He added that non-tariff barriers (NTBs) were to blame for low intra-regional trade that was in 2022 estimated to be only 11 percent of EAC’s trade with the rest of the world. “We need to work together to eliminate NTBs hindering intra-regional trade,” Dr Mathuki said, adding that he was optimistic intra-regional trade in East Africa would rise to at least 40 percent in the next five...