NAIROBI, KENYA: The East African Business Council (EABC) has endorsed sports Cabinet Secretary Amina Mohammed for the World Trade Organization’s (WTO) Director-General position. In a statement, the outfit noted that Amina joining the WTO will be timely as Africa is keenly focusing on the African Free Trade Area (AfCFTA). “She is a strong advocate for the actualization of the AfCFTA and has also chaired the WTO’s 10th Ministerial Conference held in Nairobi in 2015, the Dispute Settlement Body and the WTO’s General Council in 2005, her passion for international trade, exemplary strategic leadership, diplomatic and negotiation skills maker her the right candidate for the job,” said Peter Mathuki, CEO East African Business Council. Her success in the position will be a great opportunity for the EAC bloc and Africa towards championing global economic policy to increase the continent’s share in global trade. “The business community in East Africa is assured that Amb. Mohamed will steer the WTO to greater heights. As a former Cabinet Secretary for Foreign Affairs and International Trade of the Republic of Kenya she is bold and proficient, it will be an honour for the continent to have the first African and first woman as the Director-General of the WTO,” said Dr. Mathuki. Mohamed said on Monday she is seeking Washington’s backing and expressed some sympathy with its criticism of the global body as she emerges as one of two reform-minded African female frontrunners. Delegates say Mohamed, a 58-year-old minister, and former WTO chair, is one of...

In Summary Sugar manufacturers have seen growth in surplus to about 170,000 tonnes as neighbouring countries, in which they have been selling some of the stockpiles, lockout sugar exports, especially from Uganda. Ugandan sugar manufacturers are facing an existential crisis after Kenya last week banned sugar imports, opting to solve challenges facing the country’s sugar industry. The ban means that at least 35,000 tonnes of sugar exports from Uganda will be locked out of Kenya, which is expected to increase Uganda’s stockpile. Uganda, according to Uganda Sugar Manufacturers Association, is currently grappling with stockpiles of about 150,000 tonnes with Tanzania, which had previously completely banned exports from Uganda, only allowing in about 20,000 tonnes. Mr. Jim Kabeho, the Uganda Sugar Manufacturers Association chairman yesterday told Daily Monitor the sector is in a crisis, which, unless urgently addressed by government and regional governments is expected to force out some manufacturers. “We are in a crisis. Local sales are low and now exports [are being locked out]. It is a big problem. If we can’t sell then factories are going to close,” he said, noting the crisis is expected to spread out to farmers, who can no longer sell their cane and efforts to sell it to countries such as Kenya have also faced challenges. Last week, Kenya closed out truckloads of cane from entering its territory for unexplained reasons. Kenya bans imports. About two weeks ago, Kenya’s Agriculture Cabinet Secretary Peter Munya announced a ban on all sugar imports and subsequently...

Paradoxically, the health and economic crisis have shown that the restoration of local production will be achieved through greater trade and economic integration. The post-pandemic period promises to be a moment of opportunity for Africa, that of securing supply by bringing production back to the continent. Yet the risks of supply disruption are not as much linked to a lack of factories in Africa as they are to the concentration of trade. Africa imports 75% of its drugs from Europe, India, and China. First and foremost, securing supply requires greater diversification of suppliers, backed up by trade agreements. Can this be done in a way that benefits African countries? Intra-community trade within EAC Intra-continental trade circuits are more fragile than international circuits. Despite the pandemic, cargo aircraft continue to land in Nairobi, container ships dock in Djibouti and oil tankers leave Port Sudan. Traffic in the Kenyan port of Mombasa is only expected to decrease 2.1% in the first quarter of 2020 as compared to 2019. The problem lies elsewhere. Quality of infrastructure Intra-Community trade within the East African Community (EAC) represents only 20% of its total trade (as opposed to 70% in Europe). Several factors are to blame for this, including the poor quality of infrastructure, complex administrative procedures, low competition in the carrier industry, and a lack of interconnectivity between the various modes of transport. For example, clearing a container takes eight days in Mombasa, less than two days in Mauritius and barely ten minutes in Europe. These differences are even more pronounced...

In Summary The app will follow the trajectory of the truck and detect any smuggling or short-landing. The app is expected to be launched within two weeks. Truck drivers have welcomed a decision by the government to introduce an application through which they can access coronavirus test results. EU ambassador to Kenya Simon Mordue said Friday they are partnering the government to release the app in two weeks. The cargo transporters said on Sunday the app will limit the frequency of travel to Covid-19 test centres to pick their results. They also said the development will hasten the delivery of test results to individual drivers thus reducing the time they spend queuing on the roads. Mark Kibet who plies the Mombasa-Tororo route transporting clinker to the Tororo Cement Industry in eastern Uganda said he was ready to download and use the app. “That is a good decision because that app will help us when our samples have been taken. We will only be returning to our vehicles and wait for the results to come out through our phones,” he said in Amagoro. Results take two to three days and when they are released, drivers have had to travel again to Malaba to pick them, he said. Truck drivers are screened for the coronavirus after every 14 days and it has been cumbersome for them to travel to test centres to collect result certificates. Abdallah Boru who plies the Mombasa-Kampala and Mombasa-Juba routes said developers of the app deserve commendation. It...

Summary The chairlady of the Busia Cross-Border Cooperative, Ms Mariam Babu, said the banning of border trade has adversely affected over 7,000 traders. “Over 80 per cent of informal cross-border traders are women. This has caused strife in many families as women are unable to sustain their needs,” she said. The government says it will enhance surveillance on the Covid-19 pandemic at the country’s border points as it balances between minimising disruption of trade and keeping people healthy. Health Cabinet Administrative Secretary Rashid Aman, while raising concerns that the regions have become hotspots for transmission of the virus, assured traders Friday that they will not be adversely affected. “The sudden spike of cases is forcing us to put in place urgent but necessary measures to safeguard the lives of those involved and promote safe trade,” Dr Aman said in Busia. He attributed the increase in cases of Covid-19 at the border point to the huge traffic snarl-ups caused by truck drivers who queue to deliver goods on either sides of the boundary. “We are at the stage of community transmission and people must observe the stipulated health protocols,” he said. The European Union, in partnership with Trademark East Africa, donated Personal Protective Equipment (PPE) to various stakeholders at the border. Led by EU Ambassador to Kenya Simon Mordue, the team delivered safety gears worth Sh552 million to both Kenyan and Ugandan authorities. The consignment included safety boots, reusable masks, infrared thermoguns, reusable face masks, hand sanitisers and gloves. Cross-border small-scale traders...

Illicit trade has a detrimental impact on the substantial growth of legitimate business in the country. Not only does it negatively impact our economy but has also proven hazardous to the health and safety of the citizens of this country. A review of a recent study by the Anti Counterfeit Authority (ACA) demonstrates how illicit trade has infiltrated the sustainability of our local enterprises. The study highlights that 7,484 jobs were lost between 2016 and 2018 as a result of illicit trade. The report also states that losses as a result of pirated products stood at Sh2.2 billion over the same period, with the government losing KSh 102.99 billion in revenue in 2018. Illicit trade manifests itself in six major and interrelated ways: smuggling, transit fraud/dumping, trade in prohibited goods or products, illicit cash flows, human and wildlife trafficking, trade in small arms and light weapons and counterfeiting, piracy and substandard goods. Industry continues to grapple with illicit trade in the forms of smuggled, counterfeit and substandard goods. And even at this time when we are facing a pandemic, it is discouraging to note that we have seen an upsurge in the vice as a result of the supply gaps created by some containment measures. Such is the case, that counterfeiters have taken advantage of the increased demand for Fast Moving Consumer Goods as well as closure and time restrictions on the operations of some sectors. Combating illicit trade continues to be a challenge locally, regionally and globally. The Business...

COMESA has developed an online portal to be used by Member States to exchange information on availability of essential products within the region. This is in response to a directive issued by the COMESA Council of Ministers in May this year to develop the platform to support regional trade, during the COVID-19 pandemic. Secretary General Ms. Chileshe Kapwepwe launched the prototype platform to representatives of Member States, during a virtual meeting on Friday. The focal points will coordinate with the private sector in populating the platform with information on essential supplies. This is expected to boost local production and address shortages in supply from outside the region. Ms. Kapwepwe said the platform will enable Member States to share information on availability of products and their potential to produce and supply all different types of goods. It will connect buyers to suppliers of essential goods thereby promoting and fostering regional intra-COMESA trade. As part of the roll out and implementation of the platform, the Secretariat conducted a training programme considering that multiple stakeholder use is needed to make it versatile, functional and sustainable. Secretary General said the platform will also help small-scale cross-border traders and SMEs to have access to market information and linking producers, sellers and buyers. She noted that measures being implemented by Member States such as closing borders to prevent the spread of the pandemic are slowing down economic activity and have severely impacted cross border trade. She said the implementation of the Digital Trade Facilitation programme and...

Kenya, has finally accepted seafarers’ crew change through Port of Mombasa after the COVID-19 pandemic forced maritime states to close their borders, leaving thousands of sailors stranded aboard ships in the high-seas for months. Kenya now joins 13 countries that agreed to the new international measures to open up borders for seafarers and to increase the number of commercial flights to expedite seafarers repatriation efforts following an international crew change summit held in London 9th July, 2020. Kenya, thus becomes the second African country to bow to the pressure by the international communities to have maritime states open their borders for thousands of seafarers who had been denied entry into foreign countries due to the coronavirus. Djibouti carried out the first crew change of merchant sailors in its territory  on July 3rd, 2020 and is ready to do more as more seafarers look forward to joining their loved ones on land who have been stranded by the coronavirus, a senior port official said. Lying on the Bab al-Mandab strait, which is one of the world’s busiest shipping chokepoints, Djibouti is a critical transit hub. More than 2,500 ships transit and call at its ports annually. Continued complications with changing over ship crews due to coronavirus restrictions in some jurisdictions is still affecting supply chains despite an easing of lockdown in many parts of the world. Some 400,000 seafarers are affected on land or on ships – with many at sea for longer than an 11-month limit laid out in a...

Construction works of the first three Lamu port berths are complete with handover and commissioning of the Sh. 42 billion project expected in December 2020. A tour by KNA of the Lamu Port project revealed that the three berths are complete, while construction of the container yards for berth 2 and 3 is ongoing where dredging works is underway alongside construction   of part of the 1.2 Kilometre causeway. The project has remained on course despite the global economic slowdown that COVID-19 crisis has wrought upon government projects across the country, with the project receiving a further shot in the arm, where Sh 6 billion funding has been earmarked by the treasury for the 2020/2021 financial year. Foreign affairs principal secretary macharia kamau (blue shirt) flanked by lapseet regional manager Salim Bunu and Housing PS Charles Hinga during a recent visit of the Lamu Port Project in Kililana which is near complete with commissioning works expected in December this year “The LAPSSET project has the confidence of the President who understands the sum of the LAPSSET’s parts in enabling the country achieve its status as a burgeoning middle income economy. it is illustrated in his administration’s political and economic support despite the tough economic times that the country and the whole world is experiencing,” Lamu Port-South Sudan-Ethiopia-Transport Corridor project (LAPSSET), Director General (DG), Sylvester Kasuku intimates. Speaking exclusively to KNA, the LAPSSET DG Kasuku, further underscored that the construction and completion of the first three berths, presents a strong case for...

Naftali Elude Mzota, a driver for the Impala Shuttle Company in Tanzania, has been driving between Tanzania and Kenya for over 23 years. Asked about the difficulties of crossing the border, Mzota sighs. “Customs clearance used to be a real challenge here, because there were two borders. You had to go through at the Tanzanian immigration office, and then repeat the exercise on the Kenyan side. It used to take between one and a half and two hours,” he said, smiling. “That’s all changed now. When passengers arrive, it doesn’t matter which side they come from, a single checkpoint does all the administration and they are able to carry on across the border.” The land border between these two East African countries, now has just a single border post. This project, the One-Stop Border Post, was set up at Namanga, a town of 16,000 inhabitants that straddles Longido District in Tanzania and Kenya’s Kajiado County in Kenya. By cutting the crossing time to a maximum of half an hour, the One-Stop Border Post project has boosted trade and tourism between Kenya and Tanzania. To set up the border post, the African Development Bank in 2007 approved $185 million in funding, of which $108 million went to Kenya and $77 million to Tanzania. The Bank co-financed the project with Japan International Cooperation Agency. “Thanks to the new crossing point, road traffic has increased,” said Edward Wilson Lyimo, the owner for more than 20 years of a hotel on the Tanzanian side...