COVID-19 | TRADE Uganda enjoyed a booming cross-border informal trade, 80% of which was being done by women as their sole source of income. However, the inevitable closure of borders because of the dangerous COVID-19 is threatening to drive the women out of business, writes Faridah Kulabako Over the past decade, increasing the participation of women in cross-border trade has been a key focus area for stakeholders in trade, including the Government, through the ministries of trade and the East African Community affairs and development partners, including TradeMark Africa (TMA), USAID and the Eastern African Sub Regional Support Initiative for the Advancement of Women. Policies have been instituted to increase the participation of informal cross-border women traders to boost their incomes, improve living standards, and contribute to the country’s overall economic development. Data from the Bank of Uganda (BOU) indicates that informal cross-border exports fetched the country a total of $595m (about sh2.8 trillion) in the 2017/18 financial year. The Democratic Republic of Congo was Uganda’s leading export destination, accounting for $291m (sh1.3 trillion). It was followed by Kenya with $149m (sh691b) worth of exports, Rwanda, and South Sudan at $54m (sh250b) each, then Tanzania at $45m. The main export items were agricultural produce, mainly beans, maize, sugar, bananas, and fish. Trade was generally booming, then the COVID-19 reached the region, necessitating the closure of borders and paralysing movement. According to the Elegu Women Traders chairperson, Margaret Auma, her group members are now stuck with merchandise – cereals, grains, and...

Trade between China and Africa plummeted by around 14 per cent estimated at $41 billion in the first three months of 2020 compared to the same period in 2019, according to official figures released by China’s General Administration of Customs. The Chinese economy shrunk by 6.8 per cent in the first quarter of the year as the country was on lockdown. With factories and ports closed, in line with the global response of COVID-19, manufacturing output reduced significantly in February across the country due to the coronavirus pandemic decreasing Africa-bound exports from China by 10.5 per cent. China-bound exports from Africa, mostly raw materials for industry, such as oil and metals, also fell by 17.5 per cent in the quarter to US$19.8 billion. As it stands, China is the world’s largest oil importer but demand for the fuel from suppliers in African countries like Congo-Brazzaville slumped in line with the economic slowdown, and its price fell on international markets. Since its creation by China in 2013, the large-scale infrastructure and connectivity project Belt and Road initiative have expanded trade links to the Asian Nation. It has also helped to diversify the China-Africa commerce relationship to include telecommunications and machinery. However, raw natural resources such as oil, copper and iron still dominate the trading relationship. So far, Africa has over 30,000 confirmed coronavirus cases and governments have banned movement and gatherings as the central measure to contain the spread of the virus. Different African countries “Have varied trade relationships with China....

Transit cargo tracking service providers have been manipulating their systems to allow a multibillion-shilling cargo dumping cartel to thrive in a tax evasion scam busted by the Kenya Revenue Authority (KRA) investigators. From sealing cargo trucks from Mombasa and keeping them off the radar to terminating trips barely one hour into the journey to the borders, the tracking service providers have been the weakest link in the fight against cargo dumping, the evil that they were recruited to help tame more than a decade ago. An audit by KRA has revealed that in the trackers’ systems, some trucks took just 42 minutes to cover the close to 1,000 kilometres between Mombasa and Malaba border. Others are ‘still on transit’ since the year began while a few destined for Burundi and South Sudan have been completing the trips in Nairobi, Luanda and Eldoret, all in the effort to confuse KRA and evade taxes through dumping. The audit, which covered alcohol, milk and fuel products, is at the centre of a fierce falling-out between KRA and six system vendors, who are being accused of facilitating the loss of more than Sh2 billion in taxes. According to KRA, the vendors are fully in-charge of the data and use their access rights to determine what can be viewed from Times Tower and what is concealed, greatly tampering with data integrity. “Each vendor operates a separate platform, which is hosted at a location inaccessible to KRA, leaving the data not only vulnerable to adulteration but...

The Kenya Revenue Authority has directed that all cargo truck drivers and their crew undergo mandatory screening for coronavirus at border points. The new directives come a day after Uganda reported that several truck drivers from Kenya and Tanzania had tested positive for coronavirus. “KRA will implement the directives in the Joint Statement by Ministers Responsible for EAC Affairs and Health issued on 25th March 2020 on Covid-19 preparedness and response in EAC Region,”Commissioner Customs and Border Control Kevin Safari said in a statement. According to him, the new measures are to support Government initiatives aimed at managing the spread of COVID-19 at ports of entry and transit corridors countrywide. Other measures include ensuring a maximum of three crew for all cargo trucks crossing the international land border points; fumigating trucks at the International Border Crossing; designating hotels and/or lodges for the cargo crew as well as provision of sanitizers, disinfectants and clean running water for the drivers and their crew. In terms of security, KRA says it has taken adequate measures to ensure there are adequate staff numbers at the border points and that they continue to observe social distancing guidelines. “KRA Staff are well trained on hygiene protocols and shall put on Personal Protective Equipment (PPE) at all times when offering services to importers, exporters and stakeholders,” the statement reads. The taxman also notes technology is being used to ensure uninterrupted services to importers, exporters and stakeholders. This includes the use of Simba System, Integrated Customs Management System (ICMS)...

Speaking during a visit to Busia One-Stop-Border Post on Tuesday, Interior Chief Administrative Secretary Hussein Dhadho noted that a section of officers are  misusing the privilege as well as Government resources even while not on duty. Dhadho further advised Kenyans to use the curfew and lockdown period to bond with their families adding that some parents have been delegating their responsibilities to the house helps. The CAS urged Kenyans to use hand gloves while shopping at the super markets or wash their hands immediately after shopping noting, “With the tendency of people picking items, checking and returning them to the shelves, the virus can spread easily.” Transport CAS Chris Obure on the other hand assured Malaba residents that the Ministry will fast track completion of ongoing construction works at the border. He said the Ministry will set aside funds for establishing a dual carriage at Busia One Stop Border Post. On his part, Health CAS Dr. Rashid Aman urged County and National Government officers to work as a team with a view to contain the coronavirus pandemic. He expressed confidence that the Country will provide all the necessary items required in the fight against the pandemic and urged Kenyans to adhere to the Government’s directives on social distancing and washing hands regularly. Busia Governor Sospeter Ojaamong urged the team from the National government to consider the Counties as high risk area saying there should be concerted efforts between the County and National government on how to address the challenge of...

Legal Practitioner and Senior Partner at AB& David Africa, David Fosu-Dorte has called on African governments to domesticate purchases and procurement processes to boost Intra-African trade strategizes and minimize the negative economic impact of the COVID-19 pandemic. “We could see Africa and some countries in Africa becoming an alternative base of supply chain of some items. We may have to as African countries coordinate our response to COVID in such a way that COVID becomes an impetus for increasing intra African trade rather than decreasing it,” he said. Speaking on the Eye on Port Panel discussion on how national and international Trade and regional Protocols have been frustrated by the COVID-19, the lawyer, said the global consequences of COVID-19 should teach African nations a lesson to boost intra-African trade because the reliance on the West and Far East has obviously proven not to be the best sustainable option. AfCFTA Implementation He also indicated that the COVID-19 has significantly impacted the establishment of the African Continental Free Trade Agreement in various ways, including uncertainty surrounding the level of commitment of governments, and the closure of borders indicating a substantial reduction of intra-African trade volumes since the pandemic. “Businesses on the continent are having stresses so you don’t expect them to ramp up production especially at a point they can’t export. So in the absence of open borders, in the absence of free movement, definitely, all these are going to affect the ability to produce and even when the restrictions are lifted...

A Kenya Airways Dream liner plane carrying over 40,000 kilogrammes of vegetables and herbs departed for London today at 8.00 am. The move has been termed as a great contribution to the Kenyan economy amidst the COVID-19 crisis. A big thank you to all parties that made this possible; Growers/Exporters, Freight Forwarders, Kenya Airways, Fresh Produce Exporters Association of Kenya (FPEAK), Kenya Flower Council (KFC), European Union in Kenya, TradeMark Africa and the Government of Kenya. Source: HortiNews

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The Covid-19 outbreak has transformed life. We can feel the economic and health impacts in Kenya, the UK and across the globe. Good people are working hard to support their communities – including those with day jobs who now have little income. Others are shamelessly trying to exploit the situation. Many of us with office jobs have been able to work from home, where we have become adept at conference calls, trying to keep a routine and balancing the demands of childcare and exerting extreme willpower not to snack on unhealthy foods. It has been decades since we have faced a peacetime challenge like Covid-19. The UK stands with Kenya as one of our strongest partners. By working together, we will reduce the impact of the virus for both our nations – saving lives, protecting development gains, supporting the economy and helping Kenya bounce back quickly so those most in need reap the benefits. The G20’s decision on April 15 to freeze debt payments has given 76 economies some breathing space – including some of Kenya’s debt. On April 12, the UK announced a global support package of Sh26 billion to UK charities and international organisations to slow infections and save lives globally, including in Kenya. The total amount of UKaid committed to the global fight against Covid-19 is Sh97 billion, making the UK one of the biggest donors to the international response. An equally distributed vaccine will be the best defence. In Kenya, leaders, businesses and communities are leading...

The Covid-19 outbreak has transformed life. We can feel the economic and health impacts in Kenya, the UK and across the globe. Good people are working hard to support their communities – including those with day jobs who now have little income. Others are shamelessly trying to exploit the situation. Many of us with office jobs have been able to work from home, where we have become adept at conference calls, trying to keep a routine and balancing the demands of childcare while trying not to snack on unhealthy foods. It has been decades since we have faced a peacetime challenge like Covid-19. The UK stands with Kenya as one of our strongest partners. By working together, we will reduce the impact of the virus for both our nations – saving lives, protecting development gains, supporting the economy and helping Kenya bounce back quickly so those most in need reap the benefits. The G20’s decision on 15th April to freeze debt payments has given 76 economies some breathing space – including some of Kenya’s debt. On 12 April, the UK announced a global support package of Sh26 billion to UK charities and international organisations to slow infections and save lives globally, including in Kenya. The total amount of UKaid committed to the global fight against Covid-19 is Sh97 billion, making the UK one of the biggest donors to the international response. An equally distributed vaccine, will be the best defence. In Kenya itself, leaders, businesses and communities are leading the...