News Categories: The Horn of Africa News

Uganda, Tanzania fresh produce volume via Mombasa on the rise

The volume of fresh produce from Tanzania and Uganda exported using reefers through the port of Mombasa, Kenya has increased to six percent, compared to last year. The Mombasa port recorded 6,813 20-foot equivalent units (Teus), helped by the installation of 1,367 reefer plugging points in its port facilities since last year. Reefers are refrigerated containers. The $380 million Business Environment and Export Enhancement Programme, implemented by TradeMark Africa to push for radical decarbonisation of value chains that deliver fresh produce is yielding fruit, with more traders preferring sea to air in transporting fresh produce. Consumers, especially in Europe, have been on the frontline in this push. Currently, perishable goods approvals through the Mombasa port are done at the point of loading, and permit approvals are granted by the KenTrade-operated National Electronic Single Window System. Read: EA corridors face costs, logistical barrier hurdles Kenya Ports Authority (KPA) Managing Director Capt William Ruto said the agency has installed 1,367 reefer plugging points: 795 at the Mombasa port, 336 at the Inland Container Depot (ICD) in Nairobi, 216 at the Lamu port and 20 at the Naivasha ICD. “Kenya started transporting horticultural produce by sea in a move that would reduce the carbon footprint and improve earnings. This is after Kenya signed a pact with the European Union, one of its major export destinations, agreeing to transport fresh produce via sea after Mombasa port complied with requirements last year,” Capt Ruto said. He added: “The goal is to enhance the competitiveness and share...

EU eyes €150bn transport investment to boost intra-African trade

The European Union Commission has said that it has concluded plans to invest €150bn in trade and transport infrastructure across West Africa with a special focus on the Lagos- Abidjan corridor. The Team Lead of the EU Delegation to Nigeria and ECOWAS, Celine Lhoste, stated on Monday in Lagos during a tripartite meeting between the Nigerian Shippers’ Council, EU delegation and ECOWAS that the initiative, which is part of its Global Gateway Initiative, aims to eliminate about 80 extortion checkpoints between the Benin Republic Border and Lagos State. “There is an investment package of €150bn for Africa and West Africa is an important region where we are already investing a lot along the Lagos-Abidjan corridor,” she said. Lhoste highlighted the importance of Lagos ports to trade efficiency in the Lagos-Abidjan corridor and emphasised the EU’s commitment to supporting efforts to decongest Lagos ports and improve inland dry ports. Lhoste expressed interest in facilitating coastal shipping between Cotonou and Lagos ports, which could significantly enhance trade between Nigeria and Benin. “We are looking at possible investments to facilitate trade and transport along the corridor and in Lagos. The investment package under the global gateway initiative seeks to use various funding sources, including private sector contributions and grants, to lower the cost of investments,” she stated. According to Lhoste, the EU is also in discussions with the Port of Antwerp to explore using barges to ease congestion and improve connections between seaports and hinterlands in Nigeria. The Transport Officer at the Directorate...

AfCFTA’s chief calls for reforming the secretariat to increase efficiency

What you need to know: AfCFTA Secretary-General Wamkele Mene has called on the Executive Council to allocate funds to the Secretariat to continue recruitment and review the function and scope of several directorates within AfCFTA Dar es Salaam. The Secretariat of the African Continental Free Trade Area (AfCFTA) has called for a comprehensive review of several directorates within its secretariat, citing concerns over their functions and scope. This includes the directorate of Trade in Services, Digital Trade, Investment, and Intellectual Property Rights, which is reportedly overburdened. AfCFTA Secretary-General Wamkele Mene made these remarks on Tuesday, June 26 during the 14th meeting of the AfCFTA Council of Ministers (COM) on trade, in Zanzibar. He called on the Executive Council to allocate funds for the Secretariat to continue recruitment, emphasising the need to review the function and scope of several directorates within AfCFTA. He said the division of dispute settlement must be properly staffed so that it adequately supports the Appellate Body. “These operational realignments are consistent with the general theme of both the Institutional Assessment and the 10-year Strategic Plan, in so far as they relate to the fit-for-purposefulness of the AfCFTA Secretariat,” he said. He therefore proposed the reassignment of some of the functions of the directorate to enable operational focus and efficiency. It is further noted that the position of Deputy Secretary-General must be provided with oversight responsibility for overall coordination. “The division of conferencing is not staffed at all; this is a critical function that enables the smooth running of...

KPA boosts fresh produce exporters with 1,367 container charging points

The Kenya Ports Authority (KPA) has installed more than 1,300 power points at its shipment facilities between Mombasa and Naivasha to run refrigerated containers, boosting fresh produce exporters shipping their consignments by sea. Refrigerated containers, also called reefer containers, are used for goods that require temperature controls during shipping. The special containers are equipped with a refrigeration unit that has to be plugged into an electrical source at a depot, terminal, or on board a vessel. The reefer containers are used to ship fruits and vegetables, meat, fish (fresh or frozen), milk and dairy products, flowers, pharmaceuticals, juice and concentrate, and chocolate. KPA managing director William Ruto said the agency has installed 795 container charging points in Mombasa, 336 in Nairobi, 216 in Lamu, and 20 in Naivasha. "We have been receiving fresh produce from Tanzania and other parts of the country. We increased plugging points due to increased demand. In handling this fresh produce, shippers of containerised perishable produce are granted priority to land in all our entry gates," said Captain Ruto. He said the charging points would support traders who prefer sea transport of avocados, vegetables, flowers and other fresh produce. The KPA targets to upscale the number of reefer charging points and also prioritise fresh produce at scanning points at different port facilities to ensure quick truck turn-around time. One of the fresh produce companies, Vertical Agro (EPZ) Limited, said sea transportation has a lower cost as compared to air transport. "The introduction of special refrigerated containers...

Afreximbank backs new intra-African trade company with US$1bn investment

The African Export-Import Bank (Afreximbank) is spending US$1bn to fund the launch of an initiative designed to grow intra-Africa trade and increase SME access to finance. The African Trade and Distribution Company (ATDC) is a partnership between Afreximbank, Arise Integrated Industrial Platforms (Arise IIP) and the African Continental Free Trade Area (AfCFTA) Secretariat. The ATDC will focus on expanding access to regional and global markets for smallholder farmers and SMEs by providing financing, warehousing, logistics, regulatory advice and prospecting. Anish Jain, chief executive of Arise’s parent company Equitane, tells GTR that every transaction the company undertakes will be unique, with solutions developed individually for each SME. Jain says Afreximbank’s funds have yet to be fully allocated, but a substantial amount is expected to enter a revolving fund for trade finance lending. The company plans to initially focus operations on companies in West and Central Africa before expanding to the rest of the continent. ATDC will also distribute processed goods and raw materials from Arise’s industrial zones, which are currently active in Gabon, Togo and Benin. These zones focus on improving Africa’s export market by turning African raw materials into finished goods, a key concern for AfCFTA member states. The trade finance gap in Africa – measured as the difference between demand and supply for financing facilities across the continent – stands at around US$81bn per year, according to a 2023 estimate by the African Development Bank (AfDB). SMEs are particularly vulnerable to being denied financing due to poor credit scores or a lack of...

La Finlande salue les exportations horticoles locales par fret maritime

La Finlande a salué la décision du Kenya d'exporter ses produits horticoles par voie maritime plutôt que par voie aérienne, la qualifiant de durable d'un point de vue environnemental.  Par l'intermédiaire du ministre du commerce et du développement Tavio Ville, le gouvernement finlandais a déclaré que l'Union européenne (UE) encourageait le transport maritime depuis plusieurs années. "L'UE et ses États membres ont joué un rôle moteur dans le passage de l'aérien au maritime pour le transport des produits horticoles", a-t-il déclaré.  Cette déclaration a été faite alors que la Finlande s'est engagée à fournir un soutien financier aux projets de facilitation du commerce en Afrique. Le Kenya fait partie des pays qui bénéficieront du financement qui sera entrepris par l'intermédiaire de TradeMark Africa (TMA) pour libérer le potentiel du commerce intra-africain. M. Ville a déclaré que la Finlande croyait au libre-échange, ajoutant que le commerce transfrontalier était nécessaire pour assurer un avenir plus prospère. Le ministre s'exprimait au Inland Container Depot (ICD) à Mai Mahiu, Naivasha, après avoir signé un accord commercial avec TMA. Il a salué le travail accompli par TMA pour lever les barrières régionales dans la région de l'Afrique de l'Est, notant que l'accord favoriserait des modes de transport des marchandises plus durables sur le plan de l'environnement. "Nous soutiendrons la stratégie de TradeMark Africa avec 12 millions d'euros (1,6 milliard de shillings) pour un financement de base sur trois ans et cet accord est une excellente preuve de volonté politique", a déclaré M. Ville. David Beer,...

Financial Sector Deepening Tanzania et TradeMark Africa s’associent pour stimuler l’inclusion financière et numérique des femmes commerçantes en Tanzanie

Dans une démarche historique visant à renforcer l'inclusion financière et numérique des femmes commerçantes en Tanzanie, Financial Sector Deepening Tanzania (FSDT) et TradeMark Africa (TMA) ont signé un partenariat stratégique qui souligne leur engagement commun à autonomiser les femmes en élargissant leur accès aux solutions financières numériques, renforçant ainsi leur participation au commerce transfrontalier. Avec une subvention de 453 000 dollars (1,18 milliard de TZS) de TMA, financée par la Fondation Bill et Melinda Gates, ce partenariat marque le lancement du projet d'inclusion financière et numérique pour les femmes commerçantes en Tanzanie, qui se concentre sur trois domaines stratégiques : l'amélioration de l'accès au marché et de l'information, la stimulation de l'utilisation des services financiers numériques et le plaidoyer en faveur d'un environnement politique et réglementaire favorable. Malgré les avancées de la Tanzanie en matière d'innovation numérique, les femmes commerçantes se heurtent à des obstacles importants à leur participation économique. L'Autorité tanzanienne de régulation des communications (TCRA) fait état d'une augmentation des abonnements numériques, mais la participation des femmes reste faible. Seules 34 % des femmes ont accès à l'internet, 18 % seulement ont un compte bancaire et 51 % de tous les exclus financiers sont des jeunes, ce qui souligne le besoin urgent d'inclusion financière. Parmi les défis à relever figurent des politiques non réactives, un accès limité aux services financiers, une faible culture numérique et des informations inadéquates sur le marché. Les femmes et les jeunes commerçantes sont également confrontées à des obstacles tels que le manque de...

Les travaux de modernisation du poste frontalier de Nakonde débuteront dès la remise du site à l’entrepreneur.

Le gouvernement zambien et TradeMark Africa (TMA) ont remis officiellement hier à l'entrepreneur le site pour l'amélioration de la frontière de Nakonde en un poste frontalier à arrêt unique (OSBP). Ceci marque le début des travaux d'amélioration visant à faciliter le commerce transfrontalier et le transit entre la Zambie et la Tanzanie par la réduction de la saturation. La cérémonie de remise des clés s'est déroulée en présence de représentants des gouvernements zambien et britannique, de TradeMark Africa et de l'entrepreneur. Financé par le gouvernement britannique, ce projet d'environ 8,4 millions de livres sterling améliorera le flux de marchandises et de personnes le long du corridor de Dar es Salaam, rationalisera les opérations, améliorera l'efficacité des douanes et réduira le dédouanement des marchandises des deux côtés de la frontière. La remise du site fait suite à la signature d'un accord de soutien aux partenaires entre le gouvernement zambien et TradeMark Africa en mars de cette année. Le poste frontalier fera l'objet de nombreuses améliorations, notamment la réfection des routes à l'intérieur de l'OSBP et du parc de stationnement des camions, la construction de bâtiments administratifs et d'entrepôts supplémentaires, et l'installation d'un scanner de fret à rayons X moderne. Le projet prévoit également la numérisation des processus de dédouanement et l'installation de portes intelligentes afin de réduire la durée de séjour des camions de 64 heures à moins de 10 heures (soit une réduction de 84 %). Les deux jours et demi qu'il faut actuellement pour dédouaner les camions de marchandises...

Namibia And Zambia Going Ahead With A One-stop Border Post Agreement

Namibia and Zambia are currently in the advanced stages of negotiations to establish a one-stop border post (OSBP) at the Katima Mulilo border post. This initiative, aimed at enhancing trade and security between the two nations, has been in the works since April 2019 and is now on the brink of finalisation. Key stakeholders, including the Namibia Revenue Agency, are involved in the negotiations, which started on Tuesday and should conclude on Friday. The goal is to streamline border procedures, facilitate smoother cross-border trade, and bolster security measures between the neighbouring countries. The OSBP project is a critical component of efforts to modernise and improve border management between Namibia and Zambia. It is designed to reduce delays and inefficiencies, thereby promoting economic integration and cooperation in the region. Namibia received the initial draft of the agreement in 2019, and since then, both countries have been involved in high-level discussions to bring the project to fruition. During the opening session of the current negotiations, Abner David from the Namibian delegation and Margaret M. Chikuba from the Zambian delegation, who co-chair the Joint Technical Committee, emphasised the importance of the OSBP project. David pointed to the challenges faced during the initial negotiations and stressed the need for open dialogue and the establishment of post-agreement task teams to ensure the project’s successful implementation. “The OSBP aligns with practices endorsed by the World Customs Organisation (WCO), which are essential for facilitating smoother and more efficient cross-border trade,” David said. He called for continued cooperation...

Standards breach to lock SMEs out of continental trade, warn lobbies

Private sector lobbies have cautioned that Small and Medium Enterprises (SMEs) risk being locked out of the opportunities in the African Continental Free Trade Area (AfCFTA) due to poor absorption of specified standards. A meeting to discuss standardisation issues among SMEs in the region acknowledged the difficulties these businesses face in trying to adopt the standards set for the products or services they trade-in. These difficulties have been compounded by the slow process of harmonisation of standards across the several markets or economic blocs in the region. Similarly, even countries affiliated with different economic blocs end up shifting to their local standards for protectionism purposes to prevent some businesses from exporting into their markets. Agricultural goods are said to be the most affected, with SMEs not aware of the needed certifications and which agency issues the same. Agricultural goods are said to be the most affected, with SMEs not aware of the needed certifications and which agency issues the same. Trade and Investment Officer at Kenya Private Sector Alliance (Kepsa) Levi Injendi said while Kenya’s exports have grown from Sh873 billion in 2022 to cross the Sh1 trillion mark in 2023, SMEs still do not feature prominently. “Interestingly, SMEs contributed just about 25 per cent of these exports,” he said. Mr Injendi noted the supply chain as one of the challenges SMEs face when it comes to utilising AfCFTA. The available logistics are also expensive and unreliable. He also cited a lack of value addition by many Kenyan businesses, particularly...