News Categories: The Horn of Africa News

Photos: Inside proposed Rubavu Port

Construction of the Rubavu port, which is anticipated to enhance tourism and facilitate cross-border trade between Rwanda and DR Congo, is making progress. With works underway, the port, covering two hectares, is located in Rubavu District’s Nyamyumba Sector along the shores of Lake Kivu. According to the Senior Engineer at Railway and Cable Car Transport at Rwanda Transport Development Agency (RTDA), Jean Népo Ndayambaje, the development of the port will open up Western Province for tourism and trade. “It will increase connectivity between districts along the Lake Kivu shores as well as boost cross-border trade between Rwanda and DR Congo. It is anticipated that the port will reduce costs of existing trade flow along Lake Kivu,” Ndayambaje noted. The innovative facility is currently under construction and will be completed in two phases. It is comprised of two main sections: a cargo terminal and a passenger terminal. The cargo section meant for trade purposes has accommodation building for staff, a petrol station, waste water treatment plant, store and quay; whereas the passenger terminal has maintenance, an electrical substation, workshop, a-two-level building for a restaurant and the main offices of the port and security check.   Inside a break bulk store of Rubavu Port that is still under construction. The New Times recently toured the port, accompanied by Mohamed Salah Allani, a structural engineer from Société centrale pour l'équipement du Territoire (SCET-Tunisie), the company overseeing the construction. Allani, the construction supervisor who has 44 years of experience, mentioned that the construction project was...

EAC in push to fully implement AfCFTA trade terms

In Summary So far, the EAC Partner States have agreed on 308 tariff lines under category B; hence they are remaining with 90 tariff lines that have not been agreed upon. Under Category C, the EAC Partner States have agreed on 75 tariff lines, remaining with 96 tariff lines that are yet to be agreed upon. East Africa is at an advanced stage in implementing trade modalities under the African Continental Free Trade Area (AfCFTA), making it among the first blocs to embrace the continental deal. Led by the East African Business Council (EABC), with support from the German Technical Cooperation (GIZ) in EAC, the region is in the progress of developing the EAC Tariff Offer under AfCFTA for sensitive products and the exclusion list. According to AfCFTA modalities for the submission of tariff offers, the sensitive goods under category B require seven per cent of the tariff lines to be liberalised over a period of 13 years for Least Developed Countries (LDCs), and 10 years for developing countries. For the EAC, the required tariff lines under this category are 398. The excluded goods, which are under category C, cover three per cent of the total tariff lines and must meet the anti-concentration clause; that is, not more than 10 per cent of intra-African imports should be excluded from preferential terms. For the EAC, the required tariff lines are 171. The exclusion list will be reviewed after five years from the commencement of trading. So far, the EAC Partner States...

Tracking West Africa’s Economic Potentials: Tackling The Challenges And Future Perspectives – Analysis

As part of efforts to build a more resilient regional economy largely depends on several factors. What specifically is under discussion here is the Economic Community of West African States (ECOWAS), and  the strategic mechanism through which the region’s economy can be raised up to standard, taking cognizance of the fast growing population and its associated demand for employment and ensuring food security as well as sustaining certain level of appreciable living standards. Understanding explicitly the enormous untapped resources, both natural and human, is very essential and indivisible interconnected to the West African region’s development. As we know, there are 16 member states constituting the regional bloc, ECOWAS. As mid-July 2023, the World Population Review and the World Atlas, both estimated population 439 million. More than half of the population is under the age of 25. In fact, Africa’s population is exceptionally young compared to other world regions that have been aging at a fast rate, and demographers indicated that the region’s population will experience either steady or rapid growth. For three decades, at least, in our faculty academic studies and research, part of the written research papers at conferences unpack lessons on the relationships between demographic growth and economic development in Africa. That is to say Africa’s demographic profile has played a key role in its development. Specifically for West Africa, governments have to capitalise on its demographic profile through policies, engage them with them in various sectors especially in food production sectors for two main reasons: to ensure...

Mozambique: Paved Road Brings Mozambique and Tanzania Closer

President Filipe Nyusi on 4 August inaugurated a road in Mueda district, in the northern province of Cabo Delgado, which provides easier access to the border with Tanzania. The 70-kilometre paved road runs from Moma to Negomano. It ends at the Unity Bridge over the Rovuma River, which forms the boundary between Mozambique and Tanzania. The first stone for the new road was laid in October 2018. It was budgeted at two billion meticais (US$31.3 million), and financed by the African Development Bank (ADB). President Nyusi told the ceremony that the road will facilitate trade and the movement of people between the two countries. It would reduce journey time and the cost of maintaining vehicles. "This road will facilitate national, international and cross-border trade, contributing to an increase in incomes, and a growth of the economy", he stated. Paving the Roma-Negomano road, President Nyusi continued, is part of the government's vision of connecting the entire country by road, "from the Rovuma to the Maputo" (the rivers marking Mozambique's northern and southern limits), from the village of Negomano to the resort of Ponta de Ouro (on the frontier with the South African province of Kwazulu-Natal). "The Roma-Negomano road is a palpable asset for implementing the goals of the African Continental Free Trade Area", the President added. He believed the road will stimulate tourism since it is near the eastern end of the Niassa National Reserve, the country's largest conservation area. It could also develop agricultural value chains and promote the industrialisation...

EABC, Afreximbank partner to foster intra-african trade

THE East African Business Council (EABC) together with Afreximbank entered a strategic partnership aimed at fostering Intra-African trade and regional economic integration to maximise opportunities between the country members. According to a statement issued by EABC on Wednesday, the agreement will raise awareness among small and medium-sized enterprises (SMEs) especially the youth and women in business about African Continental Free Trade Area (AfCFTA) Protocols and its significance for business growth. Speaking at the sensitisation workshop for the SMEs held yesterday, EABC’s Executive Director and CEO, Mr John Bosco Kalisa said Business within the EAC has been doing well despite the financial challenges attributed to the Covid-19 and the Russia-Ukraine conflict such that the agreement will continue flourishing businesses. “The East African bloc has shown economic resilience despite Covid-19 and the Russia-Ukraine war,” said Mr Kalisa. He stressed that the purpose of such workshops is to focus on trade facilitation procedures and strategies to access markets effectively under the African Continental Free Trade Area (AfCFTA). He further urged the governments of the EAC Partner States to continue improving the business environment for youths to be innovative and drive integration and prosperity in Africa. Under the partnership, the two bodies will promote the implementation of the AfCFTA by engaging in specific activities that strengthen the private sector’s capacity, enhance trade facilitation and unlock new opportunities for businesses across East Africa. On his part, the Assistant Commissioner, Technological Research and Innovation/MSME, Ministry of Trade Industry and Cooperatives Uganda, Mr Okot Okeello Richard said...

Making development finance work for Africa

If the Covid-19 pandemic demonstrated our interdependence and hyper-connectedness, Russia’s war in Ukraine and its economic consequences have further underscored that no country or region can stand alone. We are all integrated – politically and by trade and investment linkages – into the global economy. Given growing awareness of this, policymakers around the world are rethinking their approach to sustainable development and re-examining the role of multilateral development banks (MDBs). These institutions are of course still relevant. But whether they are fit for purpose in their current form is open to debate. To determine how MDBs can best support developing countries, let us consider the difficulties facing Nigeria, where I served as minister of finance, budget, and national planning from 2019 until this year. During the pandemic, more of our citizens were pushed into poverty, and our economy faltered. The breakdown in global supply chains caused the price of crude oil, our largest export product, to crash, tipping Africa’s largest economy into recession. The economy rebounded after a series of reforms, but Russia’s war in Ukraine now confronts us with higher food, oil, and fertilizer prices. Nigeria is also dealing with fiscal stress, exacerbated by historically low non-oil revenues and adverse global economic conditions. A significant portion of the country’s revenues goes toward servicing its debt, and rising interest rates are pushing up debt-service costs further. Against this backdrop, our biggest challenge is getting the economy back on track and ensuring that our citizens live dignified lives. MDBs, including the...

How AfCFTA can strengthen regional value chains and SMEs growth

Earlier this month, United Bank for Africa (UBA) Plc, signed an agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to provide financing to Small and Medium scale Enterprises (SMEs) across Africa. This partnership seeks to address a critical challenge hindering SME growth on the continent: the lack of financial access and other obstacles such as non-tariff barriers, inadequate infrastructure, digital technology adoption, limited logistics networks, and regulatory disparities across countries. The AfCFTA is actively addressing these challenges, aiming to unlock the full potential of SMEs and drive their growth, while strengthening Africa’s regional value chain. In December 2021, Kenya imposed a ban on Ugandan poultry products, prompting Uganda to respond in kind by banning Kenya’s agricultural exports. This non-tariff barrier significantly hampered trade between these East African countries until earlier this year when Kenyan President William Ruto reversed the ban on Ugandan agricultural produce. Similarly, West Africa’s trade relations faced challenges following the closure of Nigerian land borders in August 2019 to curb smuggling. Although some borders reopened in December 2020 during the COVID-19 pandemic, the protectionist policy affected Nigeria’s exports and balance of trade. The policies implemented in Kenya and Nigeria had a profound ripple effect on SMEs within and outside these countries, forcing some to shut down or seek alternative markets for their goods. Mozambique’s initially commendable introduction of the Temporary Import Permit (TIP) has now become a significant hindrance for individuals and businesses involved in transit cargo from South Africa to the Port of Maputo. The manual processing of TIPs at the entry point incurs...

Kagame urges African leaders to enact investment policies

President Paul Kagame on Thursday, August 3, issued a rallying call to fellow African leaders saying that governments must step up and enact enabling investment policies, to be able to attract major impactful investments such as the just-inaugurated Anjia Prefabricated Construction Cement Factory in Muhanga district, Southern Province. “That’s what we have been doing here in Rwanda for a number of years,” he pointed out. The Head of State made the call shortly after launching and also touring the $100 million facility which targets an annual output of a million metric tonnes output in order to address the supply deficit in the market. The development is part of the investments made by the West International Holding Ltd, a subsidiary of China West Cement Group. Already the company’s initial injection of over $50 million has seen the setup of a high-performance cement grinding station system with two kinds of Cement; the CEM II/A-M 42.5 Ordinary Portland Cement as well as the CEM II/B-M 32.5 ordinary Portland cement. Following a guided tour, President Kagame commended West China Cement Group’s commitment to the infrastructure development of “not just Rwanda but our continent.” “Over the years, West China Cement, and West International Holding, the company have become key players in Africa’s efforts to reach self-sufficiency in cement production,” he added. “Earlier I had the opportunity to tour the plant, you have set the bar high in terms of quality and we appreciate that.” Prospects look promising The African cement, concrete and construction business is...

Visa Barrier Removal to Boost Intra-Africa Travel

Early this year, President William Ruto hinted at scrapping visa restrictions for African travellers within the continent. In his speech during the opening of the Private Sector Dialogue on the African Continental Free Trade Area (AfCFTA), the President stated that Africa must work towards integrating more, eliminating barriers to international trade and pushing for the establishment of a more secure, reliable and efficient cross-border payments system that will deepen financial inclusion and foster growth in the continent. “This is home. We support wholeheartedly the AfCFTA and we must remove any impediments to the movement of people around our continent. Africa presents an attractive and expansive market for investors seeking new business opportunities,” President Ruto said. In his commitment to ensure that this happens, the president has ensured that more countries allow Kenyans to travel without visa restrictions. Apart from South Africa, Eritrea, Senegal, Comoros and Djibouti, are now on the list. Consequently, according to the latest Henley Passport Index Report, the Kenyan passport has improved six places in the global mobility rank to position 67 from 73 and now occupies the seventh position as one of Africa’s most powerful passports. Destination of choice When it comes to tourism, there has been an impact to business operators who offer packages in regional travels. For instance, following the removal of the visa restrictions to South Africa, it is said that close to 10,000 Kenyans visited South Africa in the first quarter of the year. Data released by South Africa Tourism indicate that...

Unfair business practices blamed for Kenya’s food prices

Food prices remain relatively high in Africa from the economic turbulence occasioned by the Russia-Ukraine war and the Covid-19 pandemic, but in Kenya, they are alarmingly high. Data from the UN Food and Agriculture Organisation (Fao) shows that globally food prices have substantially decreased since the peak in March 2022, and continue on a downward trajectory. The Fao Global Food Price Index, which measures the change in prices of a basket of five food items – including meat, dairy, cereals, oil and sugar – has dropped by 37.4 points since March 2022. In Kenya, however, the inflation rate was 7.9 percent in June, driven mostly by a rise in prices foods and non-alcoholic beverages, which have increased by 10.3 percent since last year, according to latest data by the Kenya National Bureau of Statistics (KNBS). Other countries in the region, although still grappling with inflation, are recording easing food prices, albeit at a pace slower than the global food prices. Tanzania, for instance, reported an inflation rate of 3.6 percent in June, a slowdown from the 4.0 percent in May. Food prices increased by 7.8 percent in the past year, but are on a downward trajectory, having fallen by 0.3 percent between May and June, figures from the National Bureau of Statistics show. Uganda trends In Uganda, general consumer prices, including food, have relatively been stable for the past six months, based on data from the Uganda Bureau of Statistics. So, why are Kenyan consumers still paying so much for food?...