A new information note published by the WTO Secretariat highlights how trade in goods and services has been affected by temporary border closures and travel restrictions linked to the COVID-19 pandemic. It describes how the cross-border mobility of individuals plays an important role in both the cross-border provision and consumption of services and in manufacturing value chains. The paper notes that sweeping travel barriers introduced in the early stages of the pandemic have given way to more fine-tuned policies aimed at allowing through “essential” foreign workers, or creating quarantine-free “travel bubbles” among partners. Nevertheless, mobility barriers have had a particularly heavy impact on tourism and education services, as well as on trade in goods, due to their effect on transport services and on information and transaction costs. The paper notes that international cooperation has a potentially important role to play in minimizing the economic impact of mobility restrictions. For instance, exchanging information on lessons learnt about mobility restrictions and trade could help WTO members foster greater resilience in the face of future crises. Such an exercise could help with identifying options to implement travel measures that meet public health protection objectives while minimizing the negative effects on trade. Key points International trade and investment have always relied on the cross-border mobility of individuals. To contain the spread of COVID-19, many WTO members imposed temporary border closures and travel restrictions. The severe restrictions on cross-border movement are not motivated by trade considerations but by public health reasons. Nevertheless, they have had...

SUMMARY A market report from the East African Tea Traders Association (Eatta) shows a kilogramme of the beverage on average fetched Sh220 up from Sh210 last week. This is the first time in the last five months that the price has crossed the two-dollar mark. The report indicates that 26 percent of the total volumes offered for sale was withdrawn from the auction floor, the highest this year. Tea prices at the Mombasa auction rose to a five month high this week with the continued trend of high returns at the auction seeing traders withdraw a record volume from the floor in anticipation of a higher value in the coming sales. A market report from the East African Tea Traders Association (Eatta) shows a kilogramme of the beverage on average fetched Sh220 up from Sh210 last week. This is the first time in the last five months that the price has crossed the two-dollar mark. The report indicates that 26 percent of the total volumes offered for sale was withdrawn from the auction floor, the highest this year. “Out of 135,583 packages (8,929,677 kilos) available for sale, 100,161 packages (6,631,499 kilos) were sold. 26.13 percent packages remained unsold,” said the report. Tea prices at the auction have been rising in the last six sales as the demand for the commodity at the auction soars in recent days amid a decline in volumes. This week’s volumes dropped by 1.4 million kilos. The volumes have been declining in the last five sales...

SUMMARY Pressure on the Kenyan shilling against the US dollar is seen persisting for the remainder of the year, economists have forecast, keeping the cost of goods high in a net import economy. The shilling has persistently exchanged above 108 units against the greenback since August 6, and analysts at UK-based research firm Capital Economics see it exchanging between current levels and 110 units until the end of the year. They say the country’s heavy reliance on “less stable” forms of external financing such as diaspora remittances for foreign exchange reserves presents a major risk to the shilling. Pressure on the Kenyan shilling against the US dollar is seen persisting for the remainder of the year, economists have forecast, keeping the cost of goods high in a net import economy. The shilling has persistently exchanged above 108 units against the greenback since August 6, and analysts at UK-based research firm Capital Economics see it exchanging between current levels and 110 units until the end of the year. They say the country’s heavy reliance on “less stable” forms of external financing such as diaspora remittances for foreign exchange reserves presents a major risk to the shilling. Diaspora inflows grew by just 0.86 percent in the first half of 2020 to $1.46 billion, Central Bank of Kenya data shows. “Kenya’s dependence on less stable forms of external financing is a cause for concern,” Virág Fórizs, Capital Economics’ economist for Africa, wrote in a note on Tuesday. Parliamentary Budget Office – a unit...

Kenya’s uneasy relationship with Tanzania seems not to go away while it is threatening to degenerate into a trade war, with Dar es Salaam banning three Nairobi airlines from its airspace this week. The new round of feud was apparently triggered by Kenya’s move to exclude Tanzanians from travellers exempted from mandatory Covid-19 quarantine protocol. Kenya’s action was motivated by the fact that Tanzania has been lax in the fight against Covid-19, and has not instituted restrictive measures to curb the spread of the disease. Kenya, therefore, considers the neighbouring country high-risk, deserving a place on its red list. Piqued by Kenya’s move, Tanzania retaliated by pulling the plug on the three airlines, raising the list of barred operators to four, including Kenya Airways. Bilateral ties between Kenya and Tanzania have been blowing hot and cold for decades now. Disputes seem to be always never far from the surface and only a slight spark is enough to ignite a diplomatic tiff such as the one playing out. Diplomatic rows are a usual occurrence among nations, and especially so among neighbouring countries, as differences will always emerge. However, when feuds become as frequent as is the case between Nairobi and Dar, it becomes a source of concern that demands a comprehensive solution. The simmering differences and political grandstanding between them have resulted in a cold war stance that has hurt ease of doing business within the East African Community (EAC). Such constant spats are inimical to EAC’s vision of a region...

The government and development partners are finalising plans to set up an exclusive Covid-19 test laboratory for truck drivers at the Coast Provincial General Hospital in Mombasa County. Speaking at the Port of Mombasa on Thursday, Health CAS Dr Rashid Aman said the ministry is aware of the critical role truck drivers play in the economy of the country and beyond hence the need to come up with a system to address efficiency testing of truckers. '' We have been testing the general population including high-risk persons but needed to come up with a different stream to test the truckers. We have held very successful discussions with the International Organisation for Migration (IOM) and have identified a laboratory at the Coast Provincial General Hospital where testing equipment will be installed for truckers,'' he said. Aman said once the truck drivers have their samples taken at the Miritini Testing Centre, they shall be sent to the new laboratory at Coast Provincial General Hospital for faster release of results. He explained that testing of truck drivers is very critical in this era of Covid-19 but has been hugely affected by constant delays at key border crossing points in the region leading to cargo delays across borders. ''Since Covid-19 free certificates is a requirement for all truck drivers plying the region’s highways and crossing common borders poses, the new will ensure results come good time. We are also coming up with an application that will enable quick transmission of the tested driver's results...

20 August 2020 10:20 pm | Kenya News Media Dedicated Covid-19 testing laboratory for truck drivers in Mombasa. The Ministry of Health is setting up a dedicated covid-19 testing laboratory for truck drivers at the Mombasa Teaching and Referral Hospital. The new laboratory which will be unveiled next week is aimed at fast-tracking the testing of truck drivers and speed up the movement of cargo from the port of Mombasa to other countries in the region. Health Chief Administrative Secretary (CAS) Rashid Aman also announced that results for covid-19 will be relayed digitally in a move aimed at easing the evacuation of cargo from the port. Dr Aman said the records for those who have undergone testing will be confirmed at points of entry and exit electronically.

The European Union (EU) Ambassador to Kenya H.E. Simon Mordue is on a two-day visit of Mombasa. On Thursday 20th August, he handed over Personal Protective Equipment (PPEs) to Kenya Ports Authority to support its fight against COVID-19. The Ambassador was hosted by Mombasa Governor H.E Ali Hassan Joho, Permanent Secretary Ministry of East Africa Community (EAC) Kevit Desai, Kenya Ports Authority Managing Director Rashid Salim, and TMA Kenya Country Director, Ahmed Farah. Today’s PPE’s delivery will meet the needs of 2,730 Kenya Ports Authority staff, Port Police, Kenya Revenue Authority staff, Port health staff and sustain them for 60 days. The 2730 staff were prioritised as they are the first responders and most vulnerable dealing with port health, first aiders and handling of cargo as it arrives. The PPE’s include Reusable masks, Hand sanitisers, Hand washing points, Disinfectant spray, Infrared Thermometer, Reusable Safety Boots, Full protective PPE for front line health workers, N95 face masks and face shields, as agreed with KPA in consultation with KRA and port health and advice from medical agencies at regional and international levels. The European Union is the largest donor to Kenya’s component of TMA’s Safe Trade Emergency Facility (STEF) programme with a contribution of KES 600 million (EUR 5 million). Its under this programme that the PPE delivery has been made as part EU’s wider support for mitigation against the spread of COVID-19 and promotion of continuous safe trade in Kenya. The delivery to Port of Mombasa is critical as the port...

East African Community women traders have been the worst-affected by border closures, with trade declining by more than 50%. This is one of the unintended consequences of a lack of a regional approach to COVID-19 containment measures, which have caused havoc in the region’s major trade routes. Those in trade have termed this COVID-19 nationalism. When regional borders closed, only formal freight was allowed. “In our region, there is a significant amount of cross-border trade, which is primarily carried by women traders,” says Abhishek Sharma, a senior director of transport at TradeMark Africa. In the aftermath, dramatic contractions were seen in the women-driven cross-border trade. “The trade declined by more than 50% and around 60% in Kenya. The impact was hardest on them,” according to Sharma. TradeMark is an acronym for trades and market East Africa and is a multi-donor vehicle. It has a presence in 13 countries and most of its work is focused on the East African Community and the Horn of Africa. It has started initiatives in Malawi, Mozambique and Zambia. TradeMark Africa specialises in infrastructure and trade facilitation, and works with the private sector and governments. Its headquarters are in Nairobi. Help on the way It is now working on a $23m COVID-19 intervention funded by Canada, Denmark, European Union, Netherlands, Finland, the UK and the US. Most of the money will go towards border and port safety initiatives. The money will also fund food security and access to medicines, and preventing job losses and building resilience. “We are...

ADDIS ABABA, Aug. 21 (Xinhua) -- The United Nations Economic Commission for Africa (UNEAC) on Friday said that African women in business have a big role to play in a post-COVID-19 Africa. The statement was made by Mama Keita, Director of the UNECA in East Africa, during a regional virtual dialogue that aimed to address the economic and social challenges met by women and girls as a result of COVID-19 pandemic, with a focus on economic empowerment of women, according to an ECA statement issued on Friday. The ECA director emphasized that "African business women could significantly reduce the continent's high dependence on imports of essential food, medical and pharmaceutical items." Keita, after presenting the socio-economic effects of the COVID-19, also underscored how reduced economic activities stemming from lockdown, curfew as well as disruption in international trade affected the region. She also appealed for innovative policies and initiatives that could make a difference for women. "As we are building back our economies after COVID-19 and are seeking to turn vulnerabilities into opportunities, let us recall that intra-Africa trade is still very low at less than 20 percent and that women entrepreneurs have a big role to play in boosting this," said Ms Keita. Xia Huang, Special Envoy of the United Nations Secretary-General for the Great Lakes Region of Africa, also acknowledged the disproportionate and negative impact of the pandemic on women and girls, especially in the economic sphere, and stressed the need to place women at the center of all...