Kenya Ports Authority is concerned over the long stay of containers destined for Uganda at the Mombasa port, and is now threatening to sell off any cargo that is not cleared by April 15. According to the authority, the Ugandan business community, which remains the top transit users of the port, has not effectively been clearing cargo on time. As of March 4, there were 2,435 containers (3,464 twenty-foot equivalent units) for Uganda customers that have been at the port beyond 21 days. 293 units (393 TEU’s) have been in the port for more than three months according to KPA, despite the authority giving an amnesty to specified Uganda cargo in the port to avoid being auctioned. KPA will be forced to auction the cargo to create space at the port if the owners don’t clear it by the expiry of the amnesty which is April 15. “From the trend of things, it is apparent that many cargo owners have not responded to the amnesty. We therefore appeal to you to take urgent steps and clear the cargo before they are auctioned to create space for business,” said KPA managing director Gichiri Ndua in a statement. “An efficient port should have ample yard space all the time to afford flexible shore handling operations. This prime space can only be made available consistently when customers are equally ready to remove their containers from the port immediately they land or within the allowed free stay period,” he added. Cargo owners are allowed...

Reports that the East African Legislative Assembly (Eala) has passed a law aimed at compelling member states to eliminate trade barriers and end protectionism is long overdue. It is quite worrying that despite the good intentions of the East African integration some of the partner states have been guilty of hindering smooth trade relations between them. It is our utmost hope that the Elimination of Non-Tariff Barriers Bill, 2015, sponsored by the Council of Ministers and passed by the assembly will be assented to by the heads of state so as to ensure that integration within the bloc becomes a reality rather than mere talk. As stated by the Council of Ministers, the non-tariff barriers that exist in the countries that form the East African Community should be eliminated for the integration process to succeed. We concur as it would be an exercise in futility for the bloc to pass a law that is not enforceable within the borders of a partner state. The proposed law will bar the member countries from imposing any new trade barriers while seeking to identify and remove existing hurdles. We have stated before that the only way a conducive trading atmosphere can be created in the region is if all members read from the same script and avoid actions that only hamper local and regional production. Following the launch of the Common Market Protocol in 2010, many expected the transition to be smooth. However, this has not been the case as internal disputes have...

Next month, Indonesia will be hosting the commemoration of the 60th anniversary of the 1955 Asia-Africa Conference. According to Indonesian President Joko Widodo, the commemoration aspires to remind the world that Indonesia played a significant role in the anti-colonial struggle. Amidst complex contemporary global politics, it will be a challenge for Jokowi to convince the world that this Asia-Africa gathering is necessary and relevant. Institutionalizing effective cooperation between the two continents should be a priority. Ten years ago, Indonesia hosted the Asia-Africa Conference golden jubilee, out of which came the New Asian-African Strategic Partnership (NAASP). At that 2005 summit, Asian and African leaders agreed to revive the 1955 Bandung Spirit, whose one aim was to advance cooperation between the two continents. The NAASP expanded the form of Asia-Africa engagement from merely non-aligned and anti-colonial rhetoric to broader cooperation. Since then, there have been several projects and programs under the NAASP banner, from diplomatic training and technical cooperation to a business forum. Nevertheless, the NAASP receives little in the way of either public attention or political will. Does the NAASP really boost Asia-Africa relations? That is unclear. Certainly, interactions between Asia and Africa are growing, especially on economic matters, but they do not appear to be driven by the NAASP. Asia and Africa currently lack any formal institutional links, despite the long-standing rhetoric of Asia-Africa solidarity. This is in contrast to Asia’s relations with other continents, which have been developed in institutions such as the Asia-Europe Meeting (ASEM) and the Forum...

KAMPALA - The minister in charge of general duties in the Office of the Prime Minister, Prof Tarsis Kabwegyere has advised government to do a teacher exchange program with neighbouring Tanzania. Bring in Tanzanians to teach Ugandans Kiswahili, and send Ugandans there to teach the natives English, he suggests. If this is done, the minister sees more Ugandans learning Kiswahili and hence breaking the kind of communication barriers that may come in the way of Ugandans fully benefiting from regional integration. "Kiswahili is a language of communication in the integration process and it is urgent that every East African learns it,” Kabwegyere said at a stakeholders' conference on the end of the Ministry of East African Community Affairs (MEACA) capacity-building project this week. “Because to be competitive and gain greater good in the process, Ugandans need to learn the language urgently.” He pointed out that Uganda is the only country among other East African Countries with the smallest percentage of people that can speak Kiswahili fluently. "The language is very relevant and we need to learn it urgently in order to break communication barriers with other East African countries. But we are slow because ignorance is holding many Ugandans back." “But the faster we learn it, the more we shall enjoy the benefits of the integration.” Although taught in many schools in Uganda, many locals are skeptical about adopting Kiswahili, with several associating the language with the army, police and crime-related activity. “It’s a language thieves use to rob people....

OVER 80 percent of Non-Tariff Barriers (NTBs) reported through the online system developed within the tripartite COMESA-East African Community and South African Development Community (SADC) has been resolved. According to a status report presented at the ongoing COMESA policy organs meeting in Addis Ababa, 476 NTBs have so far been reported on the online system, http://www.tradebarriers.org out of which 385 have been resolved. At least seven were considered non-actionable. A press statement issued by COMESA Secretariat Public Relations Officer Mwangi Gakunga on the 18th COMESA Summit, currently, eight categories of NTBs have been identified as most restrictive to trade in the region. They included government participation in trade and restrictive practices tolerated by governments; lengthy customs and administrative entryprocedures; technical barriers to trade and sanitary and phyto-sanitary measures. Others were specific limitations including quantitative restrictions, and quotas; charges on imports; transport, clearing and forwarding; and issues related to transit clearance; and other procedural restrictions. It was notable that no NTB of the SPS related category have lately been reported meaning that member states are applying the health and sanitation measures judiciously,” he said. “Part of the reason why reported NTBs take long to resolve is the different understanding the parties involved have regarding them,” says the report. Customs and administrative entry procedures lead in the number of NTBs reported at 37 percent followed by transport, clearing and forwarding with 17 percent and other procedural problems with 15 percent. The three categories account for 69 percent of the reported NTBs. “The...

NAIROBI (Xinhua) -- Investments in trade infrastructure as well as the removal of bureaucratic and procedural barriers to economic integration have positioned the East Africa region as the destination of choice for doing business, a study has shown. A study published on Wednesday by the TradeMark Africa (TMA), a donor-funded organization formed to help regional states speed up integration, said the harmonization of product standards has expanded the East African Community (EAC) trade basket. Encouraging results achieved over the past year, including investments in key ports have resulted in reduced cargo transit times on East Africa’s main transport corridors, and accelerated implementation of the EAC’s Single Customs Territory, said TMA Annual Report. TMA Chief Executive Officer Frank Matsaert said the reduction of average time to clear goods at Kenya’s Mombasa port and transport them to Kampala, Uganda to fours days has buoyed the investments in the EAC region. Matsaert said the reduction in the number of customs declarations by 90 percent leading to an increase in trade volumes, an example of fuel imports into Uganda which has increased from 32. 1 million litres to 108 million litres are behind surge in investments. "The results presented in this annual report point to an ever improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa," he said in Nairobi. He said poor infrastructure, delays in cargo clearance and customs procedures at the port contribute to the high cost of doing business along the transport corridor....

KAMPALA, Uganda - Transport costs in East Africa are around 60% higher than those in the United States or Europe and this is complicated by the many underdeveloped supply chains which keeps rates up. The British government’s Department for International Development (DfID) has come up with a $16 million fund to pay for ideas that would provide practical savings for East African business people and traders. More money is being sourced. Consultancies and other firms are being invited to offer solutions that will help business people reduce their regional transport costs Over seeing Logistics Innovation for Trade (LIFT), is TradeMark Africa (TMA) who are already at the centre of streamlining cross-border trade across the region “Its aim is to encourage the private sector to invest in East Africa’s logistics and transportation industry, testing out fresh innovations that will help bring down the significant barriers to trade that slow the region’s economic development,” Frank Matsaert, the TMA chief executive officer said recently. He said, “The idea is that LIFT will shoulder part of the perceived risk of investing in East Africa and reduce the cost of entry for companies eyeing the region.” Deadline for applicants is tomorrow, but by last week more than 30 private firms had applied for grants in the first round. Matsaert said, “One example of the type of innovation TMA hopes to trigger through the grants is the development of electronic platforms allowing small businesses to jointly buy space on a truck rather than individually bearing the...

WASHINGTON: Senior officials from East African countries agreed during a workshop that significant progress had been made over the past five years in expanding and improving national accounts statistics and in implementing several 2008 System of National Accounts recommendations. They participated in the IMF’s East African Regional Technical Assistance Center (East AFRITAC) workshop in Zanzibar, Tanzania. Thirteen officials representing the East African Community (EAC) and national statistical offices of Burundi, Eritrea, Ethiopia, Kenya, Malawi, Rwanda, South Sudan, Tanzania and Uganda took part in the East AFRITAC harmonization workshop during February 16-20, 2015. For each country, the economic statistics strategies were presented and discussed. In addition to harmonizing the national accounts, the statistical offices for Burundi, Eritrea, Ethiopia, Malawi, and South Sudan will continue to focus on implementing the General Data Dissemination System; while those of Kenya, Rwanda, Tanzania and Uganda will focus on implementing the Special Data Dissemination Standard. The workshop also helped to ensure that the technical assistance program for real sector statistics is closely aligned with member countries’ needs. The knowledge acquired by participants will contribute to improved planning and implementation of macroeconomic statistics development work in East African countries. Source: Customs Today

* Region has made big oil, natural gas discoveries * Infrastructure a barrier to regional trade By Fumbuka Ng'wanakilala DAR ES SALAAM, March 26 (Reuters) - The leaders of five East African countries went on a charm offensive on Thursday to lure investors for a massive plan to upgrade infrastructure in the region that has made big hydrocarbon discoveries. Tanzania, Kenya, Uganda, Rwanda and Burundi, whose combined economies are worth a total $110.3 billion, are working to package joint infrastructure plans aimed at boosting trade and speeding up economic integration in the region. Oil and gas discoveries in Kenya, Uganda and Tanzania have turned the region into an exploration hotspot. "East Africa is a good bet for investors ... this is about mutually beneficial and profitable investments, for all stakeholders involved whether public or private," Rwandan President Paul Kagame told an investor conference in Dar es Salaam on Thursday. The East African Community (EAC), which groups the five countries, said in a 2015-2025 strategy document it needs between $68 billion and $100 billion over the next decade to build roads, ports, railways, transmission lines and oil and gas infrastructure. Tanzania plans to upgrade its railway and connect land-locked Zambia, Uganda, Rwanda, Burundi and eastern Democratic Republic of the Congo to its Dar es Salaam port through a 1,300 km (780 miles) central corridor. Tanzanian transport officials said the government was in talks with CANARAIL, a Canadian rail consulting and engineering firm, for the construction of a 1,464km standard gauge railway...

Negotiations over the establishment of a Tripartite Free Trade Area on trade of goods between the Common Market for East and Southern Africa (COMESA), the East African Community (EAC) and the Southern Africa Development Community (SADC) have been finalized and will be launched later this year, COMESA Secretary General Sindiso Ngwenya said during the 34th Council of Ministers meeting currently taking place in Addis Ababa. The tripartite FTA will not only be a major boost in intra- regional trade but would also stimulate the level of economic activity across the region and reduce poverty through employment creation and wealth generation, Ngwenya said Thursday. With 26 countries or 48 percent of the membership of the African Union, 56 percent of the population of the continent, the launch of the free trade area is also anticipated to significantly contribute towards establishment of an African single market Meanwhile, negotiations on the trade in services and trade-related areas such as competition policy and intellectual property rights will commence soon after the launch of the Free Trade Area in goods, he adds. The intra-trade within the COMESA region reportedly reached $22 billion in 2014 as the intra- trade in SADC and EAC has reached $72 billion and $8.6 billion respectively. I am confident that the establishment of the Free Trade Area would follow the same growth path, however it should be supported by accelerated growth pace of infrastructure and industrialization, Ngwenya said. He said even if intra-trade within Africa remains low, the continent recorded intra...