The revival of railway connectivity is one of Africa’s top priority, African Union (AU) Commissioner for Infrastructure and Energy, Abou-Zeid Amani, affirmed Friday. Addressing the media on the sidelines of the 30th AU assembly of heads of state and government at its headquarters in Ethiopia’s capital Addis Ababa, Mr Amani added that railway connectivity is one of AU’s flagship projects. ‘I urge for implementation of AU’s Vision 2040 for Railway Revitalization in Africa that was adopted by the AU member states in June 2014,” he said. Part of this programme include the creation of an integrated high-speed train network that connects all African capitals and commercial centres on the continent, facilitating the movement of goods, people and services. Compared to other continents, Africa is the least interconnected thus hampering trade. “Until we begin to connect our countries, our trade will not be meaningful in terms of making a dent in the development that we need to undertake,” says Adama Deen, Head of Infrastructure at NEPAD. In recent years, rail construction has picked pace in some parts of the continent. In East Africa for instance, Kenya has completed the first phase of its standard gauge railway(SGR) running from the Coastal city of Mombasa to the capital Nairobi and has embarked on the second phase. Ethiopia on the other hand has inaugurated a major railway line connecting the landlocked country to Djibouti. The railway line links the capital Addis Ababa, to the Red Sea port of Djibouti – a stretch of more...

African economies have been resilient to negative shocks, yet poor infrastructure remains a key obstacle to the continent’s inclusive growth, according to the 2018 edition of the African Economic Outlook (AEO) presented to delegates at the African Union Summit on Friday. Africa’s average real gross domestic product (GDP) growth in Africa registered at 3.6% in 2017, increasing from 2.2% in 2016, according to the report. The report forecasted that Africa’s GDP growth will accelerate to reach 4.1% in 2018 and 2019. The main driver behind the witnessed growth was the overall improvement of global economic conditions, better macroeconomic management, recovery of commodity prices (mainly oil and metals), sustained domestic demand, and improvements in agricultural production. However, job growth remains a problem in Africa, as the continent still suffers from jobless growth as a result to limited structural change. Consequently, the report points out that sustained high growth did not substantially impact job creation. “Basically, a growth acceleration period is one in which the average growth rate of GDP per capita over a period of eight years is at least 3.5% per annum,” the report notes. “These studies present the behaviour of African economies in the face of difficult external conditions and announce the revival of growth with an estimated rate of 4.1% in 2018. We all know that growth is not yet inclusive in Africa, and unemployment affects more women and young people,” said the Commissioner for Economic Affairs at the African Union Commission Victor Harrison. Harrison urged member states...

Kenya is third in the usage of the dollar for domestic transactions in the East African Community countries according to a newly released report by the International Monetary Fund (IMF). The report shows that Uganda has the most dollarised economy in the region, followed by Tanzania while the least dollarised is Burundi. The latter also happens to be the smallest in terms of the annual gross domestic product in the Community. The IMF measures financial dollarisation in an economy to be represented by the foreign currency deposits and loans in commercial banks. Kenya has in the past few years kept high amounts of dollars in reserves and has also a facility with the IMF to access up to Sh155 billion ($1.5 billion) in the case of emergency. Currently Kenya and Uganda hold official foreign currency reserves equivalent to 4.7 and 5.1 months of imports, respectively. The multilateral lender has in the report recommended that countries with big transactions in dollars also keep a bigger amount of reserves in the same currency, indicating that Tanzania and Uganda should have dollar amounts of not less than 4.5 months of imports. “Given the high level of financial dollarisation, staff recommended maintaining international reserves at about 4.5 months of prospective imports rather than the earlier target of four months of imports,” the IMF said in its latest report on the Tanzanian economy, but also focusing on the other EAC countries. In a working paper released last year, the IMF staff indicated that dollarisation was...

Can citizens afford new, locally made clothes? And how will Chinese factories change the landscape? In 2015, shareholders of manufacturing corporations from across the East African Community (EAC) — including Rwanda, Burundi, Kenya, Uganda, South Sudan, and Tanzania — met for a summit in Uganda to discuss “a new dawn in the history of manufacturing in [the] East Africa region.” During the summit, resolutions were made, including one stipulating that the EAC would develop a policy to support the development of sectors such as textiles and apparels, “which are crucial for employment creation, poverty reduction, and advancement in technological capability.” A year later, a handful of countries in the EAC proposed banning imported used clothing in an effort to boost the development of local textile and clothing manufacturing. In Rwanda, the Ministry of Trade and Industry developed a new strategy for “Made in Rwanda,” a campaign it had started in 2014 to boost local economy by celebrating Rwandan designers and products. Linda Mukangoga, co-founder of Haute Baso, a clothing and design shop in Kigali, Rwanda, is excited about what the future holds for Rwandan designers. “Made in Rwanda,” she says, “means being able to create clothing and services in collaboration with Rwandans for both local and international consumers.” “Made in Rwanda means being able to create clothing and services in collaboration with Rwandans for both local and international consumers.” Although efforts to stimulate East African domestic markets might appear to some to be a promising sign of the EAC’s dedication to growth, the United...

Arusha — The East African Legislative Assembly (Eala) wants speeded up removal of trade barriers hampering regional integration. Newly-elected Speaker Martin Ngoga said in Kampala on Tuesday that non-tarriff barriers (NTBs) in particular were a matter of concern. "We should continue to address these challenges in order to secure East Africa's future for prosperity," he said when the fourth Assembly began its business. Mr Ngoga, a Rwandan member who was last month elected as new Speaker for Eala,insisted NTBs in particular should be stamped out quickly in order to enhance free movement of goods, labour and services. "We need to venture into new areas of integration and consolidate those we have agreed upon," he pointed out. The Speaker cited problems which have impacted the education sector in the region such as lack of uniform fees as among issues that must be sorted out quickly. Ugandan President Yoweri Kaguta Museveni reiterated increased productivity and free trade within the bloc when he addressed the Assembly on Tuesday. He said at a time of reports Uganda was facing a shortage of food, there was a huge stock of five million tonnes of maize capable of sufficiently meeting the current needs. "We need a situation where all producers in the partner states are able to freely sell their produce," the Uganda leader said in his address, according to a dispatch to The Citizen. President Museveni also called for the region to effect better use of the existing common natural resources for its own prosperity,...

Thursday, 25th January 2018 President Yoweri Museveni has said that integration will ensure the survival of Africa. The President made the remarks in a meeting held with the Ugandan legislators in the East Africa Legislative Assembly (EALA) aimed at identifying areas of national interest that the legislators should focus on during their tenure. President Museveni told the legislators yesterday at State House, Entebbe, that their main focus should be on the integration of East Africa, which he observed will enhance the region’s prosperity, security, identity and protection of shared resources. “African leaders who do not talk about the prosperity of the continent are enemies of the people. There is no way African business people can blossom without a big market,” he said. Mr. Museveni told the legislators that they should utilize their time in EALA to monitor the progress of the common market so that the region becomes one market for business. “Although on paper, the East African Community has already removed the trade barriers, tariff and non-tariff barriers still hinder trade and inter-state borders continue to delay and increase the business costs,” he said. The President said that because of the colonial divisions, borders still remain an inconvenience to the unity of the people. “While growing up, although there were no buses to take people to and from Goma, Juba or Kigali because of the division by the French, Arabs, British and Belgians, people still managed to communicate informally,” he said. On security, President Museveni said that through collaboration,...

In downtown Nairobi, George Kimondo runs a shop selling second-hand women’s clothes, or mitumba. Since quitting his job with a security company to start his business eight years ago, George says he now earns as much as four times his previous monthly salary. He started by hawking clothes in offices and on the streets, before setting up a shop after one year. “Business is good during the holidays and at the end of the month,” he says, when he can generate as much as US$1000 per week. But George’s success as a businessman might be coming end. In March 2016, the six members of the East African Community – Kenya, Rwanda, Uganda, Tanzania, Burundi and South Sudan – jointly agreed to phase out the importation of second-hand clothes and shoes over three years. In a joint statement issued during a 2016 summit in Arusha, Tanzania, the EAC presidents said the move would help boost local cotton, textile, apparel and leather industries. Currently, imported second-hand goods are big business throughout Africa. According to USAID, second-hand clothing generates approximately 355,000 jobs in the EAC and some US$230 million in income (which USAID describes as a conservative estimate). From second-hand cars to medical equipment and clothes, critics say the continent is a dumping ground for used consumer goods from the Global North and they commend the EAC for taking steps to reverse the current situation. However, opponents of the ban say it will cut off an important source of inexpensive, good quality clothing from trading blocs such as...

The UK government is set to inject £211 million (Sh30 billion) to support the second phase of infrastructure projects in measures to ease cross-border trade between Kenya and her neighbours. Britain’s International Development Secretary Penny Mordaunt, who visited Kenya last week, was impressed by the progress made in the first phase of the programme that has since cut customs clearance times – from an average of nine to two days UK Department for International Development was one of key financiers of the first phase that started in 2010-2016 and saw Trade Mark East Africa help reduce customs clearance times from an average of nine to two days, and reduced the cost of trading across the region with new cargo-tracking technologies and improved infrastructure. “Here in Kenya, technology is delivering UK aid in new ways, from innovative cash transfers using biometrics, through to trade technologies that support economic growth, jobs and investment. It is in all our interests that we harness the best of British innovation with African entrepreneurialism – to create jobs, defeat poverty, and support our future trading partners, as we work towards a shared prosperous future,’’ said Mordaunt. Mordaunt pledged £60 million (Sh 8.7 bn) to fund sustainable urban economic development partnership in 10 rapidly growing towns in Kenya. The money will go towards urban economic planning, investment climate reforms and attracting private sector investment. UK has also invested £8 million (sh 1.16 billion) through the World Bank to assist the Government of Kenya in the development of...

Common Market for Eastern and Southern Africa (COMESA) has stepped up efforts to promote cross-border trade by embracing e-commerce to be able to “minimise physical barriers”. to trade across the region. Dr Francis Mangeni, the COMESA director of trade and customs, said that trade facilitation is a key priority for Africa, and a “digital free trade area (FTA) is a practical way of increasing intra-regional trade and creating wealth”. Mangeni added that the online FTA will be rolled out soon enabling member states to trade commodities, goods and services without need to travel. In a statement, Mangeni added that providing traders with the necessary digital tools will help boost intra-regional trade and enhance competitiveness of COMESA members in global trade. The official was speaking after a two-day workshop on the digital free trade area held in the Seychelles last week. Speaking in an interview with The New Times about the development, Geoffrey Kamanzi, the PSF director for trade facilitation and negotiations, said the move is a “timely measure that will help reduce the cost of doing business within the bloc”. It is also a unique opportunity to further realise the potential of free trade through ICT, as well as contribute to greater regional integration. Trade experts agree that in today’s rapidly-changing world and economies, the region cannot afford to be left behind. They say that embracing technology will enable the members in the bloc to overcome some of the barriers to trade which have for a long time made the...

The British government’s aid ministry says its new programme to support technological improvement to the way Kenya trades has proved successful. The UK says that it is now about to put an additional £211 million (Sh30.2 billion) into the second phase of the Trade Mark East Africa (TMA) programme. Following the visit of the UK’s Secretary of State for International Development Penny Mordaunt’s to Kenya earlier this week, a statement by the aid ministry hailed the “incredible power of technology to deliver aid in new ways” through TMA. Largest exporter The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. UK's Department for International Development (DFID) says innovative technology is helping Kenya build resilience to climate challenges, including drought, and to build a modern economy for the future. It said that Trade Mark East Africa was helping enterprise and creating jobs by “breaking down barriers to trade.” In Nairobi, Ms Mordaunt saw how the first phase of the programme has cut customs clearance times – from an average of nine to two days – and reduced the cost of trading across the region with new cargo-tracking technologies and improved infrastructure. Ms Mordaunt heard from British businesses about how this technology has helped them enter the Kenyan market. New ways “Here in Kenya technology is delivering UK aid in new ways, from innovative cash transfers using biometrics, through to trade technologies that support economic growth, jobs and investment,”...