In Summary Tanzania had last month banned Kenyan airlines from its space. It lifted the suspension last week after Kenya opened its skies to her flights. The resumption of flights between Kenya and Tanzania is key for bilateral trade, the East African Business Council has said. It will help grow trade and investments between the two countries, the council says. "This will spur regional tourism, intra-EAC trade and bilateral trade between Kenya and Tanzania offering steady business and economic rebound,” chief executive Peter Mathuki said over the weekend. Tanzania had last month banned Kenyan airlines from its space, in retaliation to Kenya’s decision to put in place strict travel measures for its citizens over Covid-19 concerns. It lifted the suspension last week after Kenya opened its skies to her flights. "For the purpose of this release, therefore, the resumption and restoration of flights for all operators are with immediate effect," Tanzanian Civil Aviation Authority director-general Hamza Johari said. The Kenyan Government added Tanzania to the list of 147 nations whose citizens are exempted from the 14-day mandatory quarantine upon arrival. Other countries that have been added to the list include Ghana, Nigeria and Sierra Leone. Though Kenyan and Tanzania have been falling in and out of love, the latest developments are expected to boost trade which is slightly in favour of Kenya. In 2019, the value of Kenya’s exports to Tanzania stood at approximately $336 million (Sh 36.4 billion) while imports were valued at $275. Million (Sh29.7 billion). “The East...

What you need to know: Construction of the Makupa causeway is underway, with works now on the overpass at Changamwe. Kenya National Highway Authority (KeNHA) says the section from Digo Road to Kibarani is complete and open for use by the public. Multibillion-shilling road projects currently underway in Mombasa are set to change the face of the port city, boosting its prospects in transport and tourism. Construction of the Makupa causeway — for long a nightmare for motorists entering and exiting the island through the Moi International Airport and the Standard Gauge Railway (SGR) terminus — is underway, with works now on the overpass at Changamwe. Kenya National Highway Authority (KeNHA) says the section from Digo Road to Kibarani is complete and open for use by the public. “We’re working on the Changamwe roundabout road-over-rail section at Bangladesh and the Mikindani section,” KeNHA communications director Charles Njogu told the Nation. At the same time, the first phase of the Dongo Kundu bypass connecting Mombasa and Kwale counties is complete, with the second and third phases of the Dongo Kundu-Kibundani highway ongoing. Once complete, it will comprise an interchange at Kibundani on the Likoni-Lunga Lunga highway and two bridges at Mteza (1.4km) and Mwache (660m). Likoni Channel Once fully operational, the bypass, which links to key installations such as the Moi International Airport and the SGR terminus in Miritini, will enable tourists to link to the South Coast without having to use the Likoni Channel. The Sh28 billion project will be...

SUMMARY Women stand to gain up to 2.5 percent more in real income with removal of trade barriers, a new World Bank report has shown. The joint report by the World Bank Group and the World Trade Organisation has revealed that trade openness can increase women income and welfare by easing business activities and reducing the amount spent on specific goods such as food, clothing and childcare items that are highly demanded by women. The report, Women and Trade: The Role of Trade in Promoting Women’s Equality, cites that higher tax burden is the result of many applied duties and higher spending on imported goods by women consumers. Women stand to gain up to 2.5 percent more in real income with removal of trade barriers, a new World Bank report has shown. The joint report by the World Bank Group and the World Trade Organisation has revealed that trade openness can increase women income and welfare by easing business activities and reducing the amount spent on specific goods such as food, clothing and childcare items that are highly demanded by women. The report, Women and Trade: The Role of Trade in Promoting Women’s Equality, cites that higher tax burden is the result of many applied duties and higher spending on imported goods by women consumers. In a sample conducted in 54 developing economies, the current tariff structure in 78 percent of countries benefit male- headed households. Even though Kenya surpassed most economies, higher tariffs which translate to a lower share...

NAIROBI, Kenya, Sept 17 – Kenya’s economy is expected to rebound in the last quarter of 2020 on the back of increased export of horticultural products, fruits, and tea to key markets, a new report has said. According to a report released by Scope Markets, this will be a marked improvement, especially of the horticultural industry, which was losing at least Sh106 Million per day as a direct impact of the Covid-19 pandemic three months ago. The report says the economy will rebound in the last quarter of the year against an earlier forecast of a contraction after key industries and manufacturing sectors were hit by the Covid-19 pandemic. Scope Markets Kenya has indicated that Kenya’s flower industry, the largest exporter of blooms to Europe, is on the rebound following ease down on trade restrictions, witnessing export earnings increase in the period through July, as did those of tea and fruits compared to last year. This improved performance is expected to impact the entire value chain positively, with renewed economic activities The European market accounts for nearly 70% of Kenya’s cut flower exports and coronavirus restrictions had slashed daily orders by half. Scope Market analysts have also forecasted that Kenya’s economy will grow at 1.5% in 2020 driven by improved agricultural yields because of good rains and improved market conditions following an ease down of some of the strict Covid- 19 restrictions. The analysts noted that the Covid-19 pandemic has had a negative impact on all businesses and sectors within...

Summary When complete, Uganda will for instance have a massive supply headroom considering the country’s consumption is 4.5 million litres per day Nairobi has since August last year been counting on revival of Kisumu Port to create thousands of jobs and revive the economy of Western Kenya by re-opening the key road-rail-and-water transport corridor. Uganda is months behind schedule on completion of its oil jetty, which forms the major component of the revived seaway. Uganda’s prolonged delays in completing the construction of an oil jetty on its side of Lake Victoria has frustrated Kenya’s efforts to relaunch the Kisumu Port, whose refurbishment last year cost taxpayers $30 million (Ksh3 billion). Nairobi has since August last year been counting on revival of Kisumu Port to create thousands of jobs and revive the economy of Western Kenya by re-opening the key road-rail-and-water transport corridor. Uganda is months behind schedule on completion of its oil jetty, which forms the major component of the revived seaway. “The Kenyan oil jetty was completed and is ready for use but unfortunately our counter partners on the other side of the lake, which is Uganda, are not ready,” said the Kenya Pipeline Corporation (KPC) managing director, Dr Macharia Irungu, in a presentation to the Senate Standing Committee on Energy last week. Kenyan President Uhuru Kenyatta late last month made an impromptu visit to the port, one of many tours of the facility that he has taken since it was completed in August last year. He silently departed...

In a statement, EABC therefore urges the Ministers Responsible for Transport, Health and EAC to convene and find a win-win lasting solution to the barriers hindering the free movement of cargo across EAC borders and in particular, the borders between the two countries. he East African Business Council has lauded the President of the United Republic of Tanzania, H.E. John Pombe Joseph Magufuli and the President of the Republic of Kenya, H.E. Uhuru Kenyatta, for their directives on ensuring free movement of goods across borders between Kenya and Tanzania, which will facilitate increased trade between the two countries. In a statement, EABC therefore urges the Ministers Responsible for Transport, Health and EAC to convene and find a win-win lasting solution to the barriers hindering the free movement of cargo across EAC borders and in particular, the borders between the two countries. “The fourteen (14) days standstill on the movement of goods between Kenya and Tanzania borders risks business continuity and affects intra-EAC trade. There are over 1000 trucks stranded at both sides of the border, this is significantly affecting the intra-EAC trade and movement of essential and perishable goods across borders.” The statement read in part. Also read: The East African region lays plans of opening-up The council also noted that there is also a slowdown in movement of cargo across all EAC borders, this is disrupting regional value chains due to the emerging challenges restricting the movement of truck drivers in a bid to contain the spread of COVID-19....

This presentation was made by Ms. Gloria Atuheirwe of Trade Mark East Africa during the Virtual public forum on the Plight of Women Traders during the COVID-19 pandemic; Trade in Services, Trade in Goods and the Policy Environment held on Thursday, 10th September 2020. [download id="55709"] Read original article

Amina Mohamed, the Kenyan candidate for the position of Director General at the World Trade Organisation (WTO) has promised to advance an open trading system once given the mandate. She made this promise while addressing a virtual meeting with East African Community business leaders this week. Mohamed is the only candidate from the region for the WTO top job. The regional business community has expressed confidence in the candidature of Mohamed, buoyed by her promise to steer reforms towards eliminating trade barriers and implementing the African Continental Free Trade Area (AfCFTA) agreement if selected. The virtual meeting which took place on Wednesday was convened by the East African Business Council (EABC), which brought together industry captains from the region to deliberate on deepening relations between the private sector in East Africa and WTO. Speaking from Geneva, Mohamed told the meeting that once given the mandate, she will push for a vibrant multi-lateral trading system to boost Africa’s trade. “If I was selected, I would be a strong advocate for an open trading system. I’d also be a leader in reforming the system and particularly in recovering the economy from the Covid-19 pandemic,” she said. According to the UN Economic Commission for Africa, businesses in African countries currently face higher tariffs when they export within Africa than outside the continent. “If we eliminated the current overall average tariffs of 6.1 percent in Africa, we would actually double intra-Africa trade among African countries, from 15% to 30%. If we also eliminate some...

Arusha — Nigeria, sub-Saharan Africa's largest economy, is keen on increased trade links with the East African Community (EAC). Outgoing Nigerian High Commissioner to Tanzania Sahabi Issa Gada, said his country was ready for deeper relations with the EA bloc. "There is a need to encourage deeper integration through business exchanges," he said when he paid a visit to the EAC headquarters here. Dr Gada, who was also accredited to the EAC, said increased trade between the two sides would boost the economies of the same. He did not give any statistics but trade between Nigeria, also the most populous country in Africa, is often reported to below. According to the International Monetary Fund (IMF), Nigeria's economy is worth more than $ 500 billion and $1 trillion in terms of nominal GDP and purchasing power parity respectively. It is often seen as a 'Giant of Africa' owing to its large population of 206 million, a strong economy and an emerging market by the World Bank. EAC Secretary General Liberat Mfumukeko stressed the need for stronger collaboration between EAC and the Economic Community of West African States (Ecowas He said although the EAC has made some milestones, it was now bound to focus on a few priority areas "that will produce impactful results to the lives of EA citizens". He added: "Integration is not an easy movement as it needs vision, courage and commitment of the partner states to propel the agenda." He stressed the need for Ecowas and EAC to...

The International Monetary Fund, IMF, has given the Kenyan economy a positive outlook saying it will adjust its growth projection next month. The fund which had projected economic growth of 0.3 percent this year says the economy has shown strong signs of resilience beating many expectations. According to the IMF Resident Representative for Kenya Tobias Rasmussen, the change in outlook is supported by an improvement in several economic indicators. IMF says there will be an “upward revision” of its June forecast for the Kenyan economy where it had warned that the CODIV-19 pandemic will see the Kenyan economy shrink by 0.3 percent in 2020. The fund says there has been an upturn in most activity indicators looking at the numbers coming out of Kenya and it’s fair to say that the outruns here have so far been better its expectations. The National Treasury expects the Kenyan economy to grow by just 2.5 percent due to COVID-19 induced economic slowdowns. When the first case of the virus was reported in Kenya n Marc this year, the government responded by closing the airspace, imposing dusk to dawn curfew, and curtailing inter-county movements. These measures have so far been lifted as the number of cases continues to decline. Renaissance Capital forecasts Kenya’s economy to grow at 1.5 percent in 2020 driven by superior agricultural yields and strong export of flowers and horticultural goods. Read original article