The standard gauge railway (SGR) line raked in sales of Sh13.5 billion in its second full year of operations, signalling that the mega project will take longer to break even. The revenues largely driven by a jump in income from freight services, which began charging commercial rates after the end of promotional tariffs in 2018 while increased use of first class tickets in the passenger service compensated for fewer journeys, official data show. The Kenya National Bureau of Statistics (KNBS) data indicate that SGR generated sales of Sh5.7 billion in 2018, reflecting a 136 percent rise in growth. The revenues were not enough to meet the operation costs, which are estimated at Sh1.5 billion a month or Sh18 billion a year. “The substantial increase in revenue from freight transport is partly explained by use of normal tariffs in 2019 compared to promotional tariffs in 2018,” said the KNBS. Cargo charges on the SGR line from Mombasa to Nairobi were increased by up to 79 percent from January last year in a bid to raise more revenue to pay the Chinese operator. But some importers said their transport costs shot up by nearly 50 percent when they used the rail due to extra fees, more time spent clearing goods at the Nairobi train depot and the need to send a truck to collect the goods from there. The data also show that China Communications Construction Company, the operator, increased cargo volumes 43.5 percent to ferry 4,159 tonnes in 2019 even as...

In a 17-page document titled 'EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the Covid-19 Pandemic' sent to the six partner states, the EAC Secretariat called on member states to enforce mandatory screening or testing of truck drivers and crew at border posts. Undertaking mobile monitoring during transit at selected inland points is also important, it said. Partner states were further advised to quarantine those with symptoms for 14 days under the supervision of the respective health ministries. To facilitate cross-border trade during the ongoing crisis occasioned by the novel coronavirus, member countries must adopt a multi-sectoral and coordinated approach, it said. They need to provide access at all designated points for entry and exit of goods and treat cross-border movement of trucks and cargo as essential services, the document underlined. Items to be prioritized as essential goods to mitigate the Covid-19 pandemic are food, fuel, medicaments, agricultural products and inputs, security supplies, emergency and humanitarian relief goods, it said. To mitigate critical shortages of equipment and supplies, member states need to promote local production of the items required to contain Covid-19, for example, medicaments, sanitizers, protective gear and ventilators, it said. “Partner states have further been advised to support the micro, small and medium enterprises (MSMEs) sector which employs many East Africans by exploring avenues to enable MSMEs to remain in business and expand as a foundation for the post-Covid-19 recovery process,” the statement reads in part. Transporters and transporters' associations must adhere to the requirement...

The Covid-19 pandemic is literally changing the way we live.. Several countries have imposed stringent lockdown measures a way of combating the dreaded disease. The Stay at Home restrictions have resulted into a slowdown of the social and economic life, with most activities coming to a near standstill and haunting images of empty streets from Lagos to Kampala, to Cape Town to Addis Ababa becoming part of the ‘new normal’. Unlike other global crises, such as the 2008 financial crisis, or the 2014 commodities crisis, which put stress on capital markets and the macro and formal economies, the Covid-19 pandemic has impacted both formal and informal economies. The lockdowns and curfews have had a disproportionate impact on the most vulnerable people of our societies; particularly women and the urban poor, who are mostly engaged in informal activities with a daily income, and do not have the luxury of working from home. Majority of the daily income earners, as well as micro and small entrepreneurs, will not be able to meet their loan obligations because their sources of income have literally dried up. Also, the collection of microfinance loans, which usually happens on a cash basis during weekly group meetings, has come to a halt as authorities have put in place strong social distancing guidelines. Most of these people have not only lost their livelihoods, in this Covid-19 lockdown, but have also lost the capital that they had for their informal activities. Such capital normally ranges from between $30 and $100....

The increasing calls for more economic protectionism spell disaster for Africa – and the UK must use its new freedom to rebut them Covid-19 has now spread to all corners of Africa and, as the rate of infections increase, the continent's economies are coming to a crashing halt, risking the reversal of two decades of economic progress. Trade has been the heartbeat of Africa's economic success, with the UK alone importing £12.7bn in goods and services from Africa in 2016, much of which from the agriculture sector. But this vital economic activity, and the millions of livelihoods it sustains, is under threat. Trade volumes in the East African Community are down by up to 25pc since the beginning of 2020, with even worse damage in the informal sector. There are warnings of a food security disaster on the continent. The threat is not only from Covid-19 itself. As Dr Dirk Willem te Velde, of the Overseas Development Institute, explains: "Some in the UK – and other large economies around the world – are arguing for autarky or increasingly protectionist policies that would wreak havoc on trade with Africa, often disguised as well-meaning social and environmental objectives, or attempts to protect domestic businesses and jobs. These protectionist voices must be resisted." Policymakers must understand the full consequences if stringent new production standards are imposed on imports, as some in the UK are calling for. Proxy export embargo Exports from much of Africa would be effectively locked out from the UK and...

Protectionism is seemingly on the rise and this, combined with the already devastating economic effects of the COVID-19 pandemic, may have serious repercussions for African trade. CNBC Africa spoke with Frank Matsaert, CEO of Trade Mark East Africa on how to keep trade between Africa and the rest of the world flowing. Source: CNBC Africa

The European Union’s decision to support Kenya with EUR 300 million (Sh35 billion) is Europe’s statement of friendship and partnership in these difficult global times. We are now starting to allocate these funds to specific measures. They are part of an overall Sh1.75 trillion (EUR 15 billion) package that the EU mobilised on April 6 to help its partners in developing countries face a virus that affects us all. This is only the start because the EU and its member states will be providing additional support to Kenya in the coming weeks and months. The EU has been speeding up its approval procedures to start delivering on the full package of support. It provided the first tranche of humanitarian aid at the beginning of this month. Last Friday, together with our ‘Team Europe’ colleagues from Denmark, Sweden and Finland, we mobilised Sh211 million towards water sanitation, provision and awareness raising, thus fighting Covid-19 across hotspots in 25 counties. These are mainly under-resourced areas, which also face water scarcities. The Kenyan government is providing an additional Sh200 million. A further Sh1.1 billion of EU support in this domain has gone to supporting women and vulnerable households, shielding them from the financial impact of measures to contain Covid-19. The EU is also increasing its support to Kenya, to enhance access to agricultural inputs; seeds and saplings, in order to ensure that Kenyans have access to food and hygiene standards in markets and storage facilities are met. In parallel, efforts are being made to...

COVID-19 has now spread to all corners of Africa and, as the rate of infections increase, the continent’s economies are coming to a crashing halt, risking the reversal of two decades of economic progress. Trade has been the heartbeat of Africa’s economic success, with the UK alone importing £12.7bn in goods and services from Africa in 2016, much of which from the agriculture sector. But this vital economic activity, and the millions of livelihoods it sustains, is under threat. Trade volumes in the East African Community are down by up to 25% since the beginning of 2020, with even worse damage in the informal sector. There are warnings of a food security disaster on the continent. The threat is not only from COVID-19 itself. As the Overseas Development Institute’s Dirk Willem te Velde explains: “Some in the UK – and other large economies around the world – are arguing for autarky or increasingly protectionist policies that would wreak havoc on trade with Africa, often disguised as well-meaning social and environmental objectives, or attempts to protect domestic businesses and jobs. These protectionist voices must be resisted.” Policy makers must understand the full consequences if stringent new production standards are imposed on imports, as some in the UK are calling for. Exports from much of Africa would be effectively locked-out from the UK and their other major markets around the world, leading to countless jobs being lost on the Continent where unemployment rates are already as high as 70%. At the same...

Trade in the East African community has been greatly affected by the COVID-19 pandemic with exports in the region declining by more than 60 per cent in the past two months according to the East Africa Business Council. Join this CNBC Africa panel of stakeholders and experts for more on this Source: CNBC Africa

The call is from Erastus Mwencha, the former Secretary-General of the Common Market for Eastern and Southern Africa (COMESA) and Tony Pengelly, the Director of the Secretariat for the UK All-Party Parliamentary Group for Trade Out of Poverty. Writing in The Daily Telegraph newspaper this week, they said: “Trade has been the heartbeat of Africa’s success, with the UK alone importing £12.7 billion in goods and services from Africa in 2016, much of which from the agriculture sector. “But this vital economic activity, and the millions of livelihoods it sustains, is under threat. “We must act now to keep trade with Africa flowing.” The writers noted that trade in the Eastern African Community had fallen by 25 per cent since the beginning of this year and warned of the danger of protectionist policies that were being advocated in the UK. “Policymakers must understand the full consequences if stringent new production standards are imposed on imports, as some in the UK are calling for. “Exports from much of Africa would be effectively locked out from the UK and their other major markets around the world, leading to countless jobs being lost on the continent, where unemployment rates are already as high as 70 per cent. “At the same time, British consumers would be denied goods such as Kenyan tea and green beans, or Ghanaian cocoa and fruit. “There are no winners in this situation,” write Mr Mwencha, who is also a former Deputy Chairman of the African Union Commission, and Mr...

The UK government has been urged to keep trade with Africa flowing in the midst of the COVID-19 pandemic that experts say is threatening to destroy 20 years of economic progress on the continent. The call comes from Erastus Mwencha, the former Secretary-General of the Common Market for Eastern and Southern Africa (COMESA) and Tony Pengelly, the Director of the Secretariat for the UK All-Party Parliamentary Group for Trade Out of Poverty. Writing in The Daily Telegraph newspaper this week, they said: “Trade has been the heartbeat of Africa’s success, with the UK alone importing £12.7 billion in goods and services from Africa in 2016, much of which from the agriculture sector. “But this vital economic activity, and the millions of livelihoods it sustains, is under threat. “We must act now to keep trade with Africa flowing.” The writers noted that trade in the Eastern African Community had fallen by 25 per cent since the beginning of this year and warned of the danger of protectionist policies that were being advocated in the UK. “Policymakers must understand the full consequences if stringent new production standards are imposed on imports, as some in the UK are calling for. “Exports from much of Africa would be effectively locked out from the UK and their other major markets around the world, leading to countless jobs being lost on the continent, where unemployment rates are already as high as 70 per cent. “At the same time, British consumers would be denied goods such as...