Finland Ambassador to Kenya, H.E. Pirkka Tapiola says his country is committed to doubling trade with Africa over the next decade. The ambassador spoke while touring the Port of Mombasa on Friday. The envoy commended the Government of Kenya and Development Partners for supporting Port Reforms and Modernisation Programme over the last decade that has dramatically improved evacuation of cargo at the facility. It for instance used to take 11 days to process imports through Mombasa in 2010, the time had fallen to only 5.5 days by 2017. The time to transport a container from Mombasa to Bujumbura also fell by 16.5% over the period. The Government of Finland, through TradeMark Africa has over the last decade invested more than US$13.1 million to support various projects in and around the Port of Mombasa. Finland also contributed US$445,000 to provide Personal Protective Equipment (PPE) through the Safe Trade Emergency facility by TradeMark Africa, a project that sought to keep ports, borders, and critical supply chains in the region safe for trade at the height of the COVID-19 pandemic. The Ambassador was received by General Manager Human Resources and Administration Mr. Daniel Ogutu and TradeMark Africa Deputy CEO, Allen Asiimwe.  The KPA General Manager noted that the support provided at the outset of COVID-19 was critical in keeping the port running. He further noted that port output slowed down due to COVID-19-related interruptions, calling on all stakeholders to work together to address such challenges. TradeMark Africa Deputy CEO and Chief of Programmes...

Prime Minister Robinah Nabbanja has suspended the operations of the weighbridge at the Kenya Uganda Malaba border to help to reduce the pile-up of trucks at the border. The prime minister on Friday made an impromptu visit at the Malaba border on a fact-finding mission to establish why the fuel prices have remained high yet the country had okayed trucks to enter the country even with Kenyan tests results. The truck pile-up at the Uganda-Kenya border started three weeks ago following Uganda’s proposed review of the Regional Electronic Cargo and Drivers Tracking System (RECDTS), which allows COVID-19 testing after 14 days, to a shorter duration of seven days due to the high transmissibility of the Omicron variant. As part of the change in policy, truckers were supposed to undergo mandatory COVID-19 testing which sparked a protest from drivers who parked their vehicles and blocked off the roads demanding that Uganda streamline its COVID-19 testing protocols in line with other EAC countries. Uganda charges 100,000 Shillings or 30 US Dollars for each test. The drivers rejected the charges, jeopardizing trade of all the states that rely on the Northern Corridor transit route for imports and exports. They demanded that Uganda eliminate the COVID-19 test charges or do away with the mandatory testing like the other EAC states. While the dispute raged, there was a spike in fuel prices with a litre of petrol going for as high as 10,000 Shillings in some places. The Ugandan government later abandoned the policy and...

Trade education is vital to further grow exports between the UK and Africa The Institute of Export & International Trade (IOE&IT) today announced a new investment in Africa with the opening of its first international office in Nairobi, Kenya. Building on the Kenya-UK Economic Partnership Agreement the IOE&IT is developing training, education and consultancy offerings for the entire African continent – unique and specific to Africa-world trade and intra-African trade. The opening of the office builds on a successful 2021 in Africa where the IOE&IT delivered qualifications in Kenya, Ghana and Nigeria. The Institute has worked with the International Trade Centres, along with the Ghana Export Promotion Authority and Nigerian Export Promotion Council, as well as developing a Trade and Information Pipeline (TLIP) with TradeMark Africa. UK exports to Kenya in 2021 were worth £530 million and imports from Kenya totalled £579 million. The TLIP project aims to increase trade for both sides and will help create greater visibility within supply chains and simplify the facilitation of trade between the UK and Kenya. The overall aim of the TLIP initiative is to reduce logistical time constraints for businesses by around 40%, reduce the cost of compliance by 20% – potentially worth an initial saving of up to £36m to UK Exporters. Marco Forgione, director general of the Institute of Export & International Trade “We are delighted to be opening our first office outside the UK in Kenya. It is a sign of how important we believe our work in Africa...

The official start of free trading under the African Continental Free Trade Area (AfCFTA) in January 2021 moved a major continental aspiration closer to reality. One year later, cross-border trade in goods and services may not exactly be in full swing as had been anticipated, but indications are that there is some progress—the cup is half-full, not half-empty. A major hurdle is ongoing negotiations on the remaining crucial elements of the trade pact, particularly rules of origin. However, in an interview with Africa Renewal last month, the Secretary-General of the AfCFTA Secretariat, Wamkele Mene, sketched an optimistic vision of 2022. Factory workers producing garments for overseas clients, in Accra, Ghana. Credit: World Bank In sum, AfCFTA’s implementation will rev into higher gear, traders would be delighted, and the push toward accelerated industrialization of the continent should begin in earnest. Concluding negotiations on rules of origin, which is basically to determine the “nationalities” of thousands of products to prevent dumping, will be key to success. Already, negotiators have reached an impressive 87.8 percent agreement on rules of origin. That includes more than 80 percent of the about 8,000 products listed under the World Customs Organisation’s Harmonized System of rules of origin and tariffs. Such a high threshold of consensus guarantees that the vast majority of products can be traded. “What is outstanding are automobiles, textiles, clothing and sugar. These account for about 12-15 percent of what we call the tariff book. We want to conclude negotiations on these so that we can reach...

The United Kingdom (UK) at the weekend reaffirmed its commitments to channelling investments into Africa as Britain’s development finance in Africa exceeded target to hit £2.2 billion by 2021. At the second UK’s Africa Investment Conference (AIC) at the weekend, UK affirmed that Africa remains the focus for investment over the next five-year strategy period. The CDC Group, UK’s development finance institution, exceeded its 2020 commitment to invest £2 billion in Africa over the last two years with a closing mark of £2.2 billion by the end of 2021. The growth in Britain’s investments in African businesses came amidst the unprecedented upheaval caused by the COVID-19 pandemic. The CDC is owned by the UK Government and it is regarded as a champion of the United Nation’s (UN) Sustainable Development Goals. All proceeds from investments are reinvested to improve the lives of millions of people in Asia and Africa. To enhance UK-Africa partnerships, UK at the second AIC launched a new ‘Growth Gateway’ – a digital tool to link African and British businesses to UK Government trade, finance and investment services and opportunities.  The service provides practical online support to businesses in Africa that want to export to and invest in the UK, and businesses in the UK that want to export to and invest in Africa, backed up by a team of trade and investment specialists. The second AIC highlighted Britain’s strategic plan to boost economic cooperation with African nations and enhance UK’s role as the continent’s investment partner of...

Summary In its latest market summary, the International Air Transport Association (IATA) said demand for air freight has stayed above pre-crisis levels. IATA director general Willie Walsh, said data points that the cost-competitiveness of air cargo relative to that of container shipping has improved over recent months. Kenya Airways and Ethiopian Airlines have already drawn up strategies to take advantage of their respective airports which are investing on cargo segments. The battle for the air freight market share among African airlines is intensifying, thanks to Covid-19 disruptions that have driven up ocean freight rates. Many airlines are now upgrading their fleets and expanding destinations as shortage of containers in the region continues to bite. In its latest market summary, the International Air Transport Association (IATA) said demand for air freight has stayed above pre-crisis levels. “African airlines saw international cargo volumes increase by 26.7 percent end of last year, which is the largest increase of all regions. International capacity was 9.4 percent higher than pre-crisis levels, Africa is the only region in positive territory, albeit on small volumes,” read part of the IATA market summary. Cost-competitiveness Shippers Council of East Africa Chief Executive Gilbert Lagat said, apart from cost and efficiency, time to receive consignments has boosted the air freight business considering persistent road and ocean delays. “Importers consider time, cost and efficiency. If the consignment reaches on time at a moderate cost, importers will consider and with the increasing trade barriers at the borders, air freight is the best...

Uganda and Tanzania have resumed talks aimed at eliminating trade barriers, a major hindrance to the smooth flow of trade between the two countries. During a Joint Permanent Committee meeting held in Kampala, officials from both countries also agreed to continue pursuing joint infrastructure projects. Uganda has over the years blamed Tanzania of instituting several non-tariff barriers that have thwarted seamless trade between the two countries. Uganda's trade volumes have been affected by the non-tariff barriers imposed by Tanzania. These include restrictions on exports such as sugar, milk and movement on Ugandan trucks. For example, Ugandan trucks entering Tanzania are charged road user fees of up to $500 from Mutukula border to Dar es Salaam, yet the country charges a flat rate of $152 for trucks from other countries. Tanzania’s Minister of Foreign Affairs and East African Cooperation, Ambassador Liberata Mulamula, who led the Tanzanian delegation, said the two countries were committed to working closely for the betterment of their people through trade and infrastructure development. “I am comfortable that our Governments are several miles ahead to kick-start the construction of the East Africa Crude Oil Pipeline Project (EACOP) and the operationalisation of the Murongo/Kikagati Hydro Power Project along Kagera River, just to mention a few,” she said. During the meeting, the countries agreed to appoint focal points for all ministries, departments and agencies (MDAs) in the two countries who will coordinate and follow up on issues to ensure quick and full implementation on what has been agreed. A joint...

Deputy Foreign Affairs Minister has said the governments of Uganda and Kenya have removed certain trade barriers impeding the flow of commodities into landlocked South Sudan. The hurdles include the compulsory Covid-19 retest of truck drivers imposed by the Ugandan authorities – and the electronic cargo tracking deal a Juba-based company, K-Polygone SAS extended to Uganda’s IVESCO Uganda Limited. More than a week ago, regional truck drivers protested against Ugandan authorities for imposing a compulsory second test for Covid-19 despite having taken the booster from one’s country of origin. The move caused shortages of goods including fuel in Uganda as truck drivers parked at the Malaba and Busia entry points to Uganda for several days. This reportedly led to a shoot-up in commodity prices there with South Sudan being affected as well. Deputy Foreign Affair Minister, Deng Dau says he met with Kenyan Ministers of Transport and Trade before traveling to Kampala, Uganda on Thursday to resolve the matter. “With our meeting the government of Uganda, that thing was resolved. And that all the truck drivers tested in one country are allowed, and the testing can last up to 14 days,” Deng said. According to him, more than one thousand trucks destined for South Sudan left Malaba and Bussia on Friday. Praising the move, Dau said “I’m happy to report that the governments of Kenya and Uganda are both supportive … And yesterday about 1026 trucks have left.” Concerning the electronic cargo tracking deal the Trade and Industry Ministry and...

The Cabinet Secretary for ICT, Innovation and Youth Affairs, Joe Mucheru, has urged public institutions to embrace digitalization and leverage innovation to improve service delivery.  Citing innovation as the new frontier of creating value and solutions to present challenges, CS Mucheru noted that the digital transformation journey that the Government has embarked on will support enhance service delivery in government institutions. The implementation will be guided by 2019 Digital Economy Blueprint to achieve the Kenya Vision 2030. According to the ICT CS, digitalization of government services is also aimed at driving the country’s knowledge economy, supported by laws such as the Data Protection Act 2019 which guides the use and management of electronic data and Business Laws (Amendment) Act No. 1 of 2020 which seeks to enhance the ease of doing business in Kenya. Speaking at the Konza Technopolis – Intel Corporation Forum Themed Accelerating Government Digitalization or the realization of Vision 2030 held in Mombasa, the CS lauded the institutions that have embarked on the digitalization process adding that they will be competitive regarding service delivery to the public. “I am glad that you took part to create this dialogue because it is very critical. As a country we need to embrace technology to move to the next level and I think it is great that many corporations are determined to move forward,” said CS Mucheru, adding that organizations must keep up with the trends on digital markets to drive the economy. He said: “I want to challenge organizations...

For a majority of Kenyan small and medium enterprises (SMEs) or startups, selling products by wholesale and retail is a core business model. As such, the market appears to be at times flooded with so many products that young companies without huge budgets for marketing die as soon as they get started. However, this situation would be different if most firms instead pursued other models, such as business process outsourcing (BPO), according to a paper published by Viffa Consult Ltd. BPO is the process of getting a third-party service provider to perform specific tasks that you would otherwise have performed in-house as a business. The idea comes from the manufacturing industry where manufacturers would hire other firms to do procurement, branding and distribution. A BPO can be in the same locality or elsewhere depending on the services it offers. Examples of BPO include call centres, human resources, back office processing and engineering design, data transcription, accounting and payroll outsourcing, software development and creative services such as animation. The global market for outsourced services as of 2019 was $92.5 billion (Sh10.4 trillion) with the US generating the lion’s share of the revenue ($62 billion). “India is among the leading countries for offshore business services due to solid investment case, supportive policy and legal environment and abudant skilled labour,” says the paper. Business longevity In a country where the business environment is not very conducive for SMEs, Viffa Consult suggests in the research paper titled BPO Market Opportunity for Kenyan SMEs: A case of...