News Categories: The Horn of Africa News

Cost, efficiency to determine future of EAC ports business

Competition for port business has gone a notch higher in the East African coastal strip as cost and efficiency now threaten to snatch the pie from Kenya. This as Tanzania signed a multi-billion, long term modernisation project of the Port of Dar es Salaam with Dubai-based ports operator DP World to improve the port’s competitiveness. According to Dar es Salaam, the intention is to get a bigger share of the lucrative regional marine trade, currently controlled by the Port of Mombasa. On October 22 2030, Dar es Salaam inked a $250 million (Sh37.6 billion) 30 year concession agreement with DP World, for the later to operate and modernise the multi-purpose Dar es Salaam port, the largest in the country to improve its efficiency, competitiveness and trade opportunities for Tanzania and the region. While the port of Mombasa has been on top gear, due to its fairly modern facilities, earning it the moniker of the ‘Gateway to East Africa”, this position is gradually attracting the likes of Dar es Salaam, Djibouti and Somalia’s Berbera ports, according to the latest ranking by the World Bank’s Container Port Performance Index (CPPI) released in June this year. CPPI ranking favours Dar The CPPI rankings say that the Port of Dar es Salaam leapfrog Mombasa, which recorded a dramatic drop from position 296 in 2021 to 326 in 2022, below the port of Dar es Salaam which improved its CPPI rankings from 361 to 312 out of 348 in the review period. Though a long...

Global Gateway Forum kick starts to boost sustainable investments in infrastructure

The first Global Gateway Forum opened in Brussels on 25 October. It brought together over 40 high-level Government representatives, financial institutions and business representatives to discuss the world's investment needs, debate solutions and seal new deals.  The panel discussions on the first day focused on green energy and hydrogen, research and education, critical raw materials and transport corridors. President von der Leyen opened the Forum, and stated: “The fate of present and future generations depends, more than ever before, on the quality and quantity of the infrastructure that connects us all. Team Europe has put forward Europe's largest global investment programme ever: the Global Gateway. Global Gateway is about giving choices to countries – better choices. Because for many countries around the world, investment options are not only limited, but they all come with a lot of small print, and sometimes with a very high price. That is why Global Gateway investments work: they are demand-driven and they are a win-win for all partners involved.” The full speech is available on EbS here and you can also read it here. On the eve of the Forum, the Global Gateway Civil Society and Local Authorities Dialogue Platform held its first meeting with Commissioner for International Partnerships Jutta Urpilainen. The platform is a space for civil society and local authorities to engage on Global Gateway rollout within the different investment priorities. Agreements and announcements made during the first day of the Forum: Green energy During the first day of the Global Gateway Forum, several announcements in the field of the green energy transition were made:...

Global Gateway Forum 2023 – Stronger Together through Sustainable Investment

The 1stGlobal Gateway Forum took place in Brussels on 25-26 October 2023 bringing together representatives of governments from the European Union and from around the world with the private sector, civil society, leading thinkers, financing institutions, and international organisations. Global Gateway (website) is the EU investment offer to its partners around the world aiming at narrowing the global investment gap and ensuring security of global supply chains. It boosts smart, clean and secure links in the digital, transport, energy and climate-relevant sectors, and strengthens education, research and health networks. It provides investments for transformative, large-scale projects, while offering a respectful and qualitative and equal partnership to partner countries in line with the Sustainable Development Goals and the Paris Agreement. Working closely with European Member States, financial institutions and the private sector, Global Gateway promotes investments in hard infrastructure by improving the enabling environment, regulatory frameworks, norms and standards, technology transfer, know- how, while respecting and promoting international standards of labour, protection and respecting human rights, as well as good governance and transparency, which makes the Global Gateway approach unique. Across the world, Global Gateway aims to mobilise up to €300 billion in investments between 2021 and 2027 with a mix of grants, concessional loans and guarantees to de-risk private sector investments. In 2023, almost Global Gateway 90 projects were identified together with beneficiary partners to ensure that the results improve their necessary infrastructure and connectivity. Examples of projects supported through Global Gateway: In the Balkans, Global Gateway projects will improve the transport and energy connectivity in the region....

Global Gateway Forum: EU launches €72 Million cooperation priorities for Kenya to strengthen the green, digital and inclusive transitions

At the Global Gateway Forum in Brussels, European Commissioner for International Partnerships, Jutta Urpilainen and Kenyan Deputy President Rigathi Gachagua, launched the EU-Kenya cooperation priorities for 2023. The announcement further bolsters already strong ties and solidifies shared values between Kenya and the EU. Commissioner Urpilainen, said: “The European Union is a strong partner with Kenya and with the launch of the EU-Kenya Cooperation priorities for 2023, we are committed to continue supporting the country’s green, digital and inclusive transitions. To meet this goal, our partnership is growing ever-closer, and I witnessed myself when visiting  the country at the beginning of October. In Nairobi, I could see the Global Gateway in action and how it is transforming citizens lives. Together, we can support Kenya reach its strong potential by providing the country with high quality hard and soft infrastructure through improving urban mobility and connecting schools to the internet.” Kenyan Deputy President Rigathi Gachagua said: “Kenya welcomes this statement of signature of the Multiannual action plan 2023-2024, which will be realised through the outlined priorities for the Multiannual Indicative programme 2021-2027. This collaboration marks a pivotal stride towards a brighter future for the Kenyan people. As we implement the Global Gateway, we are confident that sustainable development, and prosperity will rightfully take centre stage in our development cooperation narrative going forward. This underscores the strong shared vision for a partnership that is best for our people and prosperity and  a future where our nation transitions into a green economy, prioritizing environmental sustainability. The EU's commitment is...

URA bags sh 85billion in 4 months through AEO Program

Uganda Revenue Authority (URA) has revealed a collection of 85 billion shillings in the last four months under the Authorized Economic Operators- AEO program. During the four-month period, the 57 AEOs carried out 447 import transactions with partners in China, signifying the program’s impact on international trade. According to the figure is highly promising, emphasizing the significance of the AEO program in enhancing revenue operations. According to the World Customs Organisation, an AEO is a party involved in the international movement of goods that has been approved by, or on behalf of, a national Customs administration as complying with WCO or equivalent supply chain security standards. To qualify for AEO status, companies must meet specific criteria related to customs compliance, financial stability, and security standards. Speaking at the 10th-anniversary celebration of the AEO program at the Sheraton Hotel on Wednesday, Sarah Chelangat, the Commissioner of Domestic Taxes, underscored the pivotal role AEOs play in customs revenue collection, accounting for over 40 percent of international trade operations, which also contributes a lot to the total revenues collected. Chelangat urged more enterprises to join the AEO program, highlighting that Uganda currently boasts 129 national AEOs. “Over the last decade, URA has been hard to enhance the AEO program and make it more attractive for the traders. Can you encourage more traders to be part of this program?”  Chelangat asked the AEO business owners. Chelangat highlighted Uganda’s mutual recognition agreements with China and South Africa, offering favorable treatment to Ugandan AEOs in these...

In Rwanda, Female Cross-border Traders Find Solidarity in the Face of Adversity

Rusizi, 23 October 2023 – It is still dark when Verena, a mother of five, wakes up at the crack of dawn to start her day. She is part of a cross-border cooperative alongside other women with whom they purchase legumes and vegetables from wholesalers in Rwanda to resell at the border with the Democratic Republic of the Congo (DRC). For women who form a majority of the traders at the border crossing, this is a major part of their livelihood. The journey from Rusizi in Rwanda where they purchase their wares to the border is about 10 km. If they are unable to find a truck to transport everything across the border, they must carry the produce the last kilometer by themselves. This means spending a better part of the day on the road. “At times we carry products on our heads which in that case means going back and forth at least three times a day,” Verena explains. On any given day, cross-border traders like Verena make roughly RFW 1,000 in profit (USD 0.85) which is well under the global poverty line of USD 2.15. Trade at the border is the sole source of income for her family. Aside from slim profits, female cross-border traders like Verena face other obstacles to generating income on a daily basis. Among them, restrictions to mobility at the border brought by the global pandemic led to reliance on middlemen to sell their products at the Congolese markets at the expense of being shortchanged. “Agents often...

KEBS Introduces New Standards To Enhance Global Excellence

The Kenya Bureau of Standards (KEBS) has today unveiled 416 new emerging standards, signalling the country’s relentless pursuit of excellence, safety, and innovation. Ministry of Investments, Trade, and Industry (MITI) Cabinet Secretary (CS) Rebecca Miano applauded KEBS, underscoring its pivotal role in realising the broader goals of the Kenya Kwanza Government. “Through KEBS’s initiatives, we are ensuring that our products are globally competitive and reflect our nation’s dedication to safety, quality, and innovation,” she said. Speaking during the World Standards Day celebrations, the CS said that these standards form the backbone of the aspirations of Kenya Vision 2030. Expanding on the significance of the standards, KEBS Managing Director Ms. Esther Ngari emphasised their role in diverse sectors. “Today’s launch showcases our commitment to progress and the promotion of safety, quality, and sustainability,” Ms. Ngari said. Ms. Ngari noted that ten of the newly introduced standards are geared towards intelligent transport systems, a move strategically aligned with the objectives of Sustainable Development Goal (SDG) 3, aiming to mitigate road traffic accidents. State Department of Industry Principal Secretary (PS), Dr. Juma Mukhwana, echoed the CS’s sentiments: “The unveiling of these new standards marks a decisive step forward, bridging gaps in various sectors and enhancing the efficiency of our industries.” He praised KEBS’s efforts in ensuring that sectors such as healthcare and nutrition have robust standards and stringent measures which ensure the safety of medical devices, notably syringes, directly impacting the reduction of disease spread. “By setting high benchmarks for products like baby...

24-kilometre road co-financed by African Development Bank and the EU game-changer for livelihoods in The Gambia

Gambian President Adama Barrow has commissioned the 24-kilometer Senegambia Bridge access road co-financed by the African Development Bank and the European Union, saying it is a critical link that will help boost trade between Gambians and the rest of Africa. African Development Bank Group President Dr Akinwumi Adesina toured the road during a recent visit to the West African nation. He expressed satisfaction that the bridge has increased economic integration and trade between Senegal, The Gambia, and other countries in the region. "With the completion of the construction works here, we are confident that regional trade will be enhanced and goods and services passing through this access road will reach more distant countries with ease and on time," President Barrow said during the inauguration held on Monday 2 October. He said the Trans-Gambia Corridor Project, which included the construction of the Senegambia Bridge, had eliminated delays and difficulties in ferry crossings that had previously occurred between Yelli-Tenda and Bamba Tenda.  It used to take at least two days to get on a ferry to cross the Gambia River. Now it takes 10 minutes for vehicles to cross the river across the bridge. President Barrow recalled his government’s request to the African Development Bank for support to upgrade the roads and build a model one-stop border post between The Gambia and Senegal. Dr Adesina (left) and Gambian President Barrow (right) visit the Senegambia Bridge and new access roads. The African Development Bank mobilized a 16 million euro grant from the EU-Africa...

Chirundu border now open 24 hours

Chirundu One-Stop border post now operates 24 hours a day as Zimbabwe and Zambia seek to enhance intra-Africa trade and respond to the surge in volumes of feeder traffic from Beitbridge and Forbes border posts as well as the traffic from each country. The border had been opening between 6am and 10pm before the third shift went active for continuous operation. It is the second border post after Beitbridge to offer a 24-hour service. Chirundu Border Post has been one of key links of trade from South Africa to Zambia and other countries in the north and needed to have the same hours as Beitbridge. The extension of hours of opening of Chirundu One-Stop border post was announced by Home Affairs and Cultural Heritage Minister Kazembe Kazembe in a Statutory Instrument gazetted last Friday. This is also consistent with the Government’s policy thrust to improve the ease of doing business by removing all possible trade barriers that might impede on economic activity. Economic analysts said allowing Chirundu Border Post to work for 24 hours had huge benefits to the economy. Dr Langton Mabhanga of the Africa True North Strategy Institute said the extension of opening hours dovetailed with the spirit of the African integration in the context of Africa Continental Free Trade Agreement which was the theme during the African Union summit held in Addis Ababa, Ethiopia, early this year which was attended by Heads of State and Government in the continent. “The increased hours is testimony of how Zimbabwe...

Tanzania, Zambia tackle cross-border trade challenges

Tunduma. Tanzania and neighbouring Zambia have signed agreements on addressing eight out of 24 trade challenges. Plans are also in place to resolve the remaining 16 by December 31, 2023. The move aims at facilitating trade between the two countries, including reducing truck congestion at the Tunduma border. The Permanent Secretary of the Ministry of Industry and Trade, Dr Hashil Abdallah, made the statement last Tuesday at a press conference during a joint meeting with their Zambian counterparts held at Tunduma's One Stop Border Post in Songwe Region. The two-day meeting discussed trade challenges. Dr Abdallah said the two countries have agreed that cargo, with all required permits, should be transported from Tanzania to the respective countries through Zambia without hindrance, according to trade agreements under the World Trade Organisation (W TO) and the Southern African Development Community (SADC). He also directed all public institutions serving transport service businessmen to ensure they were not blocked from doing their businesses without tangible reason. They, instead, insisted that they should be assisted in addressing their challenges, especially in the acquisition of permits. To ensure the success of the measures, Dr Abdallah called on transporters to ensure they obtained all necessary permits before starting their journeys. Zambia's Director of Foreign Trade, Ms Lillian Bwalya, said her country had committed to addressing the challenges in order to promote cross-border trade between the two countries. At the meeting, Tanzania's Deputy Permanent Secretary of the Ministry of Finance (Management and Economics), Mr Elijah Mwandumbya, insisted that...