ANTHONY KITIMO

Somalia's Farmaajo hands over presidency to Mohamoud

Monday May 23 2022

Outgoing Somalia President Mohamed Abdullahi Mohamed (centre left), also known as Farmaajo, presents the Somali flag to newly elected President Hassan Sheikh Mohamud during the handover ceremony at the Mogadishu palace on May 23, 2022. PHOTO | AFP

By ABDULKADIR KHALIF

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Somalia’s tenth President Hassan Sheikh Mohamoud, who was elected eight days ago, has taken over the presidency from his predecessor Mohamed Abdullahi Farmaajo in a handover ceremony at the Villa Somalia (presidential palace) in Mogadishu.

The event was graced by the speakers and deputy speakers of Somalia’s bicameral parliament (Lower and Upper Houses), MPs and senators, ministers of the caretaker government, representative of civil servants and other invited guests.

In a brief speech, President Farmaajo said he had handed several presidential files containing, among others, details of Somali troops in Eritrea.

“I have handed over details of 5,000 Somali cadets that completed training in Eritrea and will be repatriated by the new government,” he said.

“We postponed their repatriation last year due to the prevailing political situation,” he added.

The soldiers will join in the fight against the Al Shabaab militant group that had stepped up attacks ahead of the elections.

Mohamoud beat Farmaajo in the election held on May 15, garnering 214 votes against the latter’s 110 votes in the third round.

The new president is expected to deal with the al-Shabaab threat, rebuild national institutions and economic reforms and see the birth of a new constitution that will define the roles, functions and procedures of government.

“We had done a lot of work on resource sharing, airspace control, election act, and similar legal and economic initiatives, hoping that further improvements will be done by your new administration,” Farmaajo told his successor on Monday.

On his part, Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

“I am sure we are going to have President Farmaajo around, trusting that we will benefit from consulting with him as long as needs emerge,” the new Somalia president remarked.

Mohamoud made history as the first Somalia president to win a second term. His first presidency was from 2012 to 2017.

Read: Return of Mohamud to Somalia presidency

In the headlines

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Besigye arrested as he tries to take to the streets again

Soldier, chief killed in Uganda's wild west

Museveni's address: No govt intervention amid high cost of living

Nine media workers arrested in Ethiopia raids, outlets say

Moderna looks beyond Covid vaccines for Kenya factory

Ugandan soldier, chief killed in separate Karamoja raids

Monday May 23 2022

Karamoja regional police spokesperson, Micheal Longole (left) and the UPDF 3rd Division spokesperson, Maj Isaac Oware parade some of the guns recovered from suspected cattle rustlers while addressing journalists in Moroto District. FILE PHOTO | STEVEN ARIONG | NMG

Summary

Despite the heavy security deployment in the mineral-rich northeastern region armed attacks on civilians and soldiers by suspected Karimojong warriors continue unabated.

By DAILY MONITOR

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Authorities in Uganda are investigating two incidents in which a soldier and a sub-county chief were shot and killed in two separate attacks in the northeastern Karamoja region.

In Kaabong District security forces are hunting assailants suspected to be Karimojong warriors who shot and killed a Ugandan army officer in a Sunday afternoon attack which left two of his colleagues also injured.

Pt Lopec Lotuke and two of his colleagues were on a motorcycle when they were ambushed.

Describing the attack as unfortunate, Major Isaac Oware, the Uganda Peoples' Defence Force 3rd division spokesperson said: "Pt Lopec was the one riding a motorcycle. So, as they reached in between Loyoro and Losilang, the warriors showered them with bullets. He died instantly.“

According to Maj Oware, the two other soldiers sustained injuries on their legs and they were taken to Kaabong Hospital where they are getting treatment.

He said Pt Lopec whose duty station was in Entebbe, Wakiso District, was on his pass leave. His body was taken to his ancestral home in Kotido District for burial.

Chief's murder

Meanwhile, police in Kotido District are investigating the circumstances under which Napumpum Sub County LCIII chairperson was shot dead by unknown assailants.

Paul Lowok, 41, was shot dead by unknown assailants suspected to be Karimojong warriors in Napumpum trading centre on Sunday night.

Mr Micheal Longole, the Karamoja regional police spokesperson said detectives visited the scene and recovered two bullet projectiles from the wall of his house.

"We are yet to understand the motive of the killers but we will get them by all means," Mr Longole said.

His body was taken to Kotido Hospital for Postmortem.

Boda boda rider shot dead

The two attacks come just hours after police in Napak District in the same region said they were hunting for a group of suspected Karimojong rustlers who allegedly shot and killed a boda boda rider.

Samuel Mangat, 30, was shot en route from Apeitolim to Matany town after dropping a passenger.

Despite the heavy security deployment in the mineral-rich northeastern region --- with the First Son who doubles as the UPDF commander Land Forces, Lt Gen Muhoozi Kainerugaba, promising hell to the cattle rustlers --- armed attacks on civilians and soldiers by suspected Karimojong warriors continue unabated.

Read: Muhoozi threatens hell on Karamoja rustlers

Other attacks

In February this year, cattle traders from Teso region were shot at in an ambush around Kotido but no one died although they were left with injuries.

In March, another group of cattle traders was shot at in Kotido, and animals were taken from them.

In April, four lorries carrying fresh food from Mbale to Moroto were shot at on Nakapiripirit-Moroto road leaving one injured.

In the same month, a businessman in Kotido was shot dead at Panyangara on Moroto-Kotido road.

Read: Leaders finger army, police for laxity in renewed Karamoja raids

However, Mr Longole says the situation is under control and that the security forces were on top of the situation.

In July last year, UPDF and the police renewed their disarmament operations and arrested several suspected cattle rustlers. By March 2022, the forces said they had recovered 209 guns amidst resistance from the suspected rustlers. Last week, security officers said they had recovered 11 guns on Monday following a house search operation.

About 1,889 youth have so far been arrested.

In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Besigye arrested as he tries to take to the streets again

Museveni's address: No govt intervention amid high cost of living

Nine media workers arrested in Ethiopia raids, outlets say

Moderna looks beyond Covid vaccines for Kenya factory

Nine media workers arrested in Ethiopia raids, outlets say

Monday May 23 2022

Members of the Amhara Special Forces at an improvised camp in Humera, Ethiopia, on November 22, 2020. PHOTO | EDUARDO SOTERAS | AFP

By AFP

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At least nine media workers in Ethiopia's northern Amhara region have been arrested by local authorities, their employers said Monday, as rights activists warned of a sweep of unlawful detentions.

Two outlets -- the Nisir International Broadcasting Corporation and Ashara, both covering Ethiopian affairs on their YouTube channels -- said their studios in Amhara were raided in recent days and staff taken away, some to undisclosed locations.

Nisir said four of its employees, including journalists and back-office staff, were arrested and equipment seized from their workplace in Bahir Dar on Thursday and Friday by security forces and local police.

The network, which broadcasts on a YouTube channel, said two of its staff were believed to be detained in a prison at Bahir Dar, while another two were being held 185 kilometres (115 miles) from the regional capital.

The whereabouts of two other Nisir journalists remained unknown, it added.

"We urge the government to immediately release our journalists and return our studio equipment," the broadcaster said.

The other outlet, Ashara, said five of its staff were detained in a raid on their studio in Bahir Dar on Thursday and were being held in a detention centre outside the city.

Enforcement operation

Authorities in Amhara, the second-most populous region in Ethiopia, said over 4,000 people suspected of crimes had been arrested in an ongoing enforcement operation.

"The government will continue in a reinvigorated manner this peacekeeping work/activity," said Desalegn Tassew, head of Amhara's Peace and Security Bureau, in a statement published on state media.

Read: Amhara clashes mar Ethiopia’s tolerant image

On Sunday the Ethiopian Human Rights Commission (EHRC), the state-affiliated independent rights body, expressed concern about a spate of arrests that had netted "journalists and social activists".

The commission said while some detainees had been granted visitations or charged, "many other detainees have been unlawfully detained, have not been brought before court and have not been visited by family".

"Especially in the Amhara region, many detainees have been arrested in detention centres far from their home areas and arbitrarily detained, making it difficult for family members to know their whereabouts."

Read: Ethiopia arrests over 200 over violence

TV host Solomon Shumye, who has a show on YouTube, was also detained in the Ethiopian capital Addis Ababa on Friday and accused of inciting violence, his sister Tigist Shumye said.

Amhara authorities backed Prime Minister Abiy Ahmed and his federal forces in a war with the neighbouring Tigray region that began in November 2020. But divisions have since emerged over Abiy's handling of the conflict.

In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Besigye arrested as he tries to take to the streets again

Soldier, chief killed in Uganda's wild west

Museveni's address: No govt intervention amid high cost of living

Moderna looks beyond Covid vaccines for Kenya factory

Monday May 23 2022

Kenyan officials receive the second batch of 880,000 Moderna Covid-19 vaccine doses of at JKIA on September 6, 2021. PHOTO | NMG

Summary

The global adjustment to living with the virus — with the exception of Covid Zero-practising China and Hong Kong — has also diluted the urgency for booster shots, according to analysts.

By BRIAN NGUGI

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Kenya now says Moderna's $500 million (Ksh57.5 billion) vaccine plant will have a crucial role to play in the fight against other diseases beyond the Covid-19 pandemic amid a global glut of coronavirus vaccines.

The comments come amid a reported global vaccine oversupply that has crept up across a world once desperate for immunisation against the coronavirus, raising fears of the viability of Covid-19 plants in the pipeline.

But health Cabinet secretary Mutahi Kagwe said vaccine plants in the Kenya pipeline including the Moderna’s would also produce other vaccines. Therefore, the Covid-19 vaccines glut would not affect the construction plans.

"They will make vaccines..not just Covid ones," Mr Kagwe told the Business Daily.

Mr Kagwe ruled out concerns that the production glut of Covid-19 vaccines could derail Kenya's and the rest of Africa's plan to build vaccine plants.

"No," [we don't see this happening]," he said.

Moderna said earlier in March it expects to invest about $500 million (Ksh57.5 billion) in the Kenyan vaccines manufacturing facility and supply as many as 500 million doses of mRNA vaccines to the African continent each year.

The American biotechnology giant also had plans to start filling doses of its Covid vaccine in Africa as early as 2023, following the deal with the Kenyan government.

Moderna told the Business Daily on Friday "the plant is expected to be intended for mRNA therapeutics and vaccines versus being specific to Covid-19".

"We’ve entered into a memorandum of understanding with the Government of the Republic of Kenya to build a state-of-the-art mRNA facility in Africa — the intention would be for this plant to produce mRNA vaccines, including but not limited to Covid-19 vaccines," said Moderna on email.

Moderna has been developing several other vaccines based on mRNA technology, including for respiratory syncytial virus, HIV and shingles.

Read: Moderna to set up vaccine plant in Kenya

Vaccine makers invested in massive production capacity over the past year and some of that has come online only after most countries covered much of their populations with two doses.

The global adjustment to living with the virus — with the exception of Covid Zero-practising China and Hong Kong — has also diluted the urgency for booster shots, according to analysts.

The Institute of India Ltd, the world’s largest vaccine manufacturer and a key supplier of Covid-19 inoculations to developing countries, last month said it had halted making fresh batches of Covid shots after its stockpile grew to 200 million doses amid a global supply glut, it said.

The Indian company manufactures the vaccine developed by AstraZeneca Plc and Oxford University, as well as the shot from Novovax Inc.

Several countries across Africa have eased pandemic-linked restrictions and relaxed rules related to masking and quarantines, even as cases rise in some regions in the rest of the world.

Kenya plans to vaccinate 27.8 million Kenyans and has been acquiring doses of vaccines from Pfizer and Johnson and Johnson to supplement the Astrazeneca vaccines.

However, the vaccination initiative has been slowed down by the lifting of Covid-19 restrictions.

Kenya lifted Covid-19 measures, including the wearing of face masks in public, after sustaining less than one percent case rate for months.

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In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Besigye arrested as he tries to take to the streets again

Soldier, chief killed in Uganda's wild west

Museveni's address: No govt intervention amid high cost of living

Nine media workers arrested in Ethiopia raids, outlets say

Uganda police arrest Besigye as he tries to take to the streets again

Monday May 23 2022

Police arrest political activist, Dr Kizza Besigye after he tried to leave his home on May 23, 2022. PHOTO | ABUBAKER LUBOWA | NMG

By DAILY MONITOR

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Uganda police have arrested political activist and former presidential contender Kizza Besigye as he attempted to leave his home in Kasangati, Wakiso District.

He is currently detained in a police van, which had been parked near his homestead. The veteran politician was heading to Kasangati town to protest against the high commodity prices.

Read: Uganda blocks Besigye’s return to the streets

"I will not accept to be kept in my house like I am a prisoner in my own country. This must stop," Dr Beisgye said.

The police did not give any reason for his arrest on Monday. Since early this month, Dr Besigye renewed his criticism of President Yoweri Museveni’s government for doing nothing to cushion vulnerable Ugandans against the skyrocketing prices of essential commodities.

Dr Kizza Besigye in a police van moments after his arrest on May 23, 2022. PHOTO | MONITOR | NMG

His arrest comes just hours after President Museveni delivered a televised national address in which he said the government will not intervene through subsidies and removing import taxes because doing so would collapse the economy.

Read: Museveni's address: No govt intervention amid high cost of living

"Just turn and go back to your house," the commanding officer on the ground who did not reveal his name said before ordering the officers to arrest an unrelenting Besigye.

The new drive is designed as a replica of his famous 2011 Walk-to-Work protests that came at the backdrop of the general election. The 2011 protests against the harsh economic situation occasioned by the wild election expenditure spread across many parts of the country although they were brutally suppressed by both the military and police, leaving five dead, scores injured and hundreds languishing in prisons.

In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Soldier, chief killed in Uganda's wild west

Museveni's address: No govt intervention amid high cost of living

Nine media workers arrested in Ethiopia raids, outlets say

Moderna looks beyond Covid vaccines for Kenya factory

Museveni full address: Why government won't intervene amid rising cost of living

Monday May 23 2022

Ugandan President Yoweri Museveni. PHOTO | PPU

Summary

Nearing 78 years of age in September, I am doing very well. I have no hesitation bearing testimony for our much better indigenous food. Millet is the only cereal in nature that has got protein, carbohydrates and iron. I had also read something comparable for sorghum. However, for the indigenous sorghum, there was the problem of some bitterness. However, with bio-technology by our researchers, the bitterness can be removed.

By YOWERI MUSEVENI

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The Ugandan government will not intervene amid an outcry over the rising cost of living.

President Yoweri Museveni, in a televised state address on Sunday night, said government subsidies or removing import taxes would collapse the economy.

The rising prices of goods have been occasioned by surges in the cost of petroleum products and other imports amid global supply chain constraints following the war in Ukraine.

Mr Museveni advised the citizens to make do with the imported items the country can afford, and substitute expensive wheat with locally available food such as cassava, bananas, millet, and maize.

Here is the full address:

Countrymen and Countrywomen,

Greetings. I am here today to remind you of the challenges we have been able to face and successfully handle, together, in the last three and a half years. The following have been the challenges:
1. locusts (enzigye);
2.   the rising waters of the lakes;
3.   the landslides;
4.   the floating islands that were threatening to destroy the power dams;
5.   the armyworms (kanyanaanga);
6.   the Covid-19 pandemic;
7.   the terrorist attacks in Kampala and the bijambiya (machete) killers in Masaka;
8.   the resurgence of cattle-rustling in Karamoja and the surrounding areas; and, recently, the rising costs of commodities on account of the globe recovering from the Covid-19 pandemic and the war in Ukraine.

As usual, those who do not believe in God and in themselves, started panicking and predicting doom. However, we, the NRM fraternity, whom God has enabled to handle even bigger problems in the past, such as the wars emanating from the unconstitutionalism in Uganda between 1966 and 1986, were sure that each and everyone of these challenges could be rationally, not irrationally, handled.

As we speak today, many of these challenges have been handled. Indeed, many Ugandans may have even forgotten about these problems. Where are the locusts? Where are the floating islands, etc.? Of all these problems, the Covid-19 pandemic, was the most challenging. Why? It was because, after a quick but careful analysis, we saw that the pandemic could, indeed, be handled but with massive lockdowns, starting with the unprecedented sending home, prematurely, of our 15 million grandchildren (the learners – pupils, students) in the primary schools, the secondary schools, the tertiary Institutions and universities and keeping them there for one and a half years. I do not think that this figure included the pre-primary pupils. No sooner had the pandemic confronted us, than the “struggle between the two lines”, to use Mao Tse Tung’s words, started.

Read: Uganda kept schools closed longest – Unicef

Also read: Uganda schools reopen after 2-year Covid closure

This is the struggle between the correct line of the revolutionaries (the change-makers) and the line of the reactionaries (wapinga maendeleo); the struggle between the “narrow path that leads to heaven and the broad road (Omuhanda Rugyeendwa) that leads to Gehena (hell), as it says in the Book of Matthew Chapter 7 verses 13-14. In the Book of Genesis, Chapter 1 verses 26-28, it talks of Man “establishing dominion over nature”. As I normally like to quote, it goes as follows:

“26 Then God said, “Let us make mankind in our image, in our likeness, so that they may rule over the fish in the sea and the birds in the sky, over the livestock and all the wild animals,[a] and over all the creatures that move along the ground.” 27 So God created mankind in his own image, in the image of God he created them; male and female he created them. 28 God blessed them and said to them, “Be fruitful and increase in number; fill the earth and subdue it. Rule over the fish in the sea and the birds in the sky and over every living creature that moves on the ground.”

Right from the beginning, God empowered man to use his superior brain to find solutions to the problems that confronted him.

The struggle between the two lines, therefore, was as follows: the revolutionary side (our side) pointed out that what was primary was to avoid death (massive death – ekyorezo), all other problems notwithstanding. The reactionary line was to emphasise the loss of jobs, loss of businesses, loss of school time, pregnancies of young girls, etc. Our line was that ebizibu (problems) are not equal (comparable) to death (okufa). Death is irreversible, while problems are reversible at the appropriate time. “Ekitatta Muhima, tekimumalako ente”, we say in Luganda (if a Muhima does not die, even if he loses cows, he will, in time, recover them).

What were the results of the struggle between the two lines? The extreme example of the line of ebizibu (problems) are equal to death (okufa), was the European Country of Sweden. Up to now, they have a total of 18,941 people dead from the small population of 10.2.million people. Other countries were oscillating between the two lines and the losses, up to today, are as follows:

USA - 993,691,
UK - 177,890,
France - 144,449,
Germany - 138,204,
Italy - 165,738,
Spain - 105,642,
India - 524,323,
South Africa - 100,898,
Argentina - 128,776,
Brazil - 665,319.

In Uganda, the death toll up to now is 3,600, out of a total of 164,153 that were infected. Our total population is now 43 million people. Those are the results of the recent struggle between two lines. Our deaths from corona up to March 2021, were only 335 persons. It was the indiscipline of the opposition during the elections that pushed the figures to the present 3,600. On account of the strictness, taking the Biblical narrow path, Uganda, up to now, has had two waves of the corona pandemic, while other countries have had 3 and even 4 waves.

In Luganda, we say: “Akutwaala ekilo, omusiima bukedde” (the one who successfully guides you in the night, you thank him in the morning for the good work). Now that we are emerging from the consecutive nights of problems (Locusts, rising waters of the Lakes, terrorism, cattle-rustling, Covid-19, etc.), it is time to both thank the NRM and reconfirm its credentials as a no-nonsense, problem solver.

Read: Uganda relaxes Covid restrictions for travellers

As the other problems were being solved or waning in severity, in comes the problem of high costs for commodities. Of course, the problem of high commodity prices is much easier to deal with and it is not new. At the beginning of the NRM Administration in 1986 and for the period 1972-1986, following the expulsion of the Ugandan-Indian entrepreneurs by Idi Amin, Uganda experienced continuous high inflation, severe shortages of commodities (so-called “essential commodities”), very high prices, forex black market (Kibaanda), smuggling of goods out and into Uganda (magendo) and speculation (kusamula).

Read: High fuel, commodity prices dampen Museveni’s first year in his sixth term

All these were solved by the NRM and, indeed, the recent problem of ekyengera (omweeru – surplus) of sugar, soap, maize, milk, bananas, cement, mitayimbwa (steel bars) etc., is a result of that success. This is why we have been engaging with neighbours (eg. Tanzania, Kenya, etc.) to help us solve the problem of ekyengera (surpluses – omweeru). How did the NRM solve the problem of ebula ry’ebintu (eibura, shortages) of between 1972-1986? We shall see how in this document. However, this history is clear.

Read: Tanzania reaps spoils of Uganda’s trade fights

Therefore, the recent phenomenon of high commodity prices, is, indeed, a problem but it is easier to solve than, for instance, Covid-19 was. Covid-19 needed severe restrictions and new science (eg. Vaccines). This one will be solved with existing knowledge but rightly applied.

The high commodities prices are from the following factors:

1. The end of Covid-19 pandemic, meant that sectors of the economy that had been closed, such as hotels, suddenly opened when the production of, for instance, palm oil for soap manufacture had also declined because there had been no demand for two years. The resumed production levels cannot yet match the demand.

2. I also hear, that some of the producers decided to turn their palm oil into petrol, just like we were about to turn our surplus sugar into petrol as a way of solving the problem of kyengera (surplus).

3. The war in Ukraine and Western sanctions on Russia, have also caused shortages of wheat for the bread-eaters that do not include me because I am a muhogo-karo-banana eater and milk drinker, fertilizers, petrol, gas, etc.

Read: Outcry as Uganda fuel crisis escalates

Again, here, we confront the struggle between the two lines: the revolutionary, patriotic line of the truth and seriousness on the one hand and the reactionary line of populism, cheap popularity and lack of realism of: prices-control by Government, subsidies, tax cuts on the other hand. Although this is not as serious as Covid-19, the choices here, are also with serious implications. It is a choice between okubandama (collapse) of the economy on the one hand or survival (kwetaasa, kuhonoka). The real medicine for high prices and shortages, is increased production. Produce more, if you can.

In 1986, as we were beginning to deal with the catastrophic situation of shortages that had characterized Uganda for 14 years, starting with the 1972 mistake of Idi Amin expelling our Asian business people, there was talk by some of price and rent control. In one Cabinet meeting, we were informed of an Indian known as Gandesha that owned many buildings in Kampala and was charging exorbitant rents. Some were saying that we should invoke the Rent Control Act and the Government should set the rent levels itself. After careful analysis, we rejected that logic. The solution we adopted, was letting rent-levels remaining high for that time. This would attract many people to invest in housing. It is that flooding into housing, that would solve the problem of high rents by making rentable buildings many. That is how the huge growth of buildings in the Kampala – Entebbe – Wakiso – Mukono area, was triggered. Within a year or two, I started hearing of there being so many houses for rent, that many of them had no People to rent them.

Read: Uganda’s real estate sector remains resilient

Shaku shaku: Shambagira (riddle). Nyabweengye, n’obweengyebwe (Each wise person has got his own smart solutions to problems). What is the answer to the riddle? N’enkoko, kuchuutsya, etaine mabeere. It is the hen bringing up its chicks, when it has no breasts to feed them.

Now, coming to the issue of high commodity prices of: petrol, diesel, sugar, salt, bar soap, powder soap, cooking oil etc., we have to remember the nature of the challenge: Kubandama (collapse) or survive (kuhonoka). As already pointed out above, the problem of high commodity prices is not as dangerous as Covid-19. However, if it is not handled correctly, it can lead to collapse. Yet, with patience and correct response, it will turn out to be an advantage for the country.

Straight away, a serious problem solver, would cluster the commodities with high prices into two clusters: the imported ones on the one hand and the locally produced ones on the other hand. Some of the ideas people think about when confronted with high commodity prices, are the idea of subsidy (Government okutu kwatirako) or removal of taxes by Government from those commodities. With imported commodities, this is a recipe for disaster. It will lead to collapse. Why? Let us take the example of petrol. A litre of petrol before the rise of prices in November 2021, was UGX4,590 which meant USD 1.3 at that time. A litre of petrol is now UGX 5,500 which means USD 1.48. This is all with the tax. The more expensive litre of petrol (ey’obuseere), is doing two bad things: emptying the pockets of the consumers, but also emptying our national dollar reserves. We now have USD 4.5 billions in our Reserves.

These are enough to support imports for 4.2 months. If we subsidize or even just remove the taxes on imported commodities, the level of consumption will either remain the same, but this time each litre taking more dollars, or actually increase. The dollar drain will now increase per litre and also, worse, people may buy more of this expensive commodity. With the Great Lakes area, there is another problem – smuggling (magendo). When an item is cheaper in one country, eg. Uganda, there is a powerful incentive for smugglers to buy cheap in Uganda and sell expensively in the neighbouring country. Therefore, cheaper petrol in Uganda, would be cheaper for the Region.

It would seriously encroach on our reserves. Moreover, the removal of taxes on some of the commodities, would mean tax loss to Government of: UGX1.53 trillion for petroleum, UGX1.15 trillion for diesel, UGX520 billion for wheat. How, then, do we fund our budget for – roads, electricity, schools, medicine, security, etc.? There are items we do not tax – eg. Medicine, raw materials, etc. It is, therefore, not true that we tax everything. The very crucial items, are not taxed. Therefore, removing taxes or subsidizing many of the imports is suicidal and a blunder.

In my head, I had sympathy for removing taxes on locally produced goods such as sugar, milk, cement, etc. because, if People buy more of them, it will be good – they would be buying more local goods. This was until I looked at the taxes to be lost. On sugar, we would lose Ugx.193 billion, on cement, Ugx.200 billion, mitayimbwa Ugx.120 billion. We could see that the route to tax cuts and subsidies, even for the locally produced goods, was not a wise one. What, then, is the wise way? The wise ways are, therefore, the following:

1. To use frugally these imported items

(kukekereza, kwereembareemba) or kubyesonyiwa (get alternatives);

2. To use our own raw-materials – such as sunflower oil and castor oil (enshoga-shoga) for soap as we wait for the expanded palm oil production which takes longer – sunflower takes only 4 months; for bread, we can use our banana and cassava flour for bread-making apart from eating the traditional foods; for many years now, I do not eat wheat bread nor rice; I eat our richer indigenous foods of akaro (millet), muhogo (cassava), empogora (bananas cooked in their skin), ebinyobwa (G-nuts), obushaza (peas), enyamay’ente (beef), etc.

Nearing 78 years of age in September, I am doing very well. I have no hesitation bearing testimony for our much better indigenous food. Millet is the only cereal in nature that has got protein, carbohydrates and iron. I had also read something comparable for sorghum. However, for the indigenous sorghum, there was the problem of some bitterness. However, with bio-technology by our researchers, the bitterness can be removed. We, the Ntungamoists, the only advantage we found in bread was convenience in storing and transporting.

This is what Dr. Muranga in Nyaruziinga, in Bushenyi, is going to solve with the banana flour and cassava flour which is much healthier than wheat flour that has got the problem of dry glutin which is 9.9% and, therefore, is not good for the human body. The ministry of agriculture is going to guide you as to how our farmers can up-scale the production of sun-flower and castor oil seeds for vegetable oil for soap making as well as bananas and cassava for flour for bread. Sun-flower takes just 4 months and castor oil seeds (enshoga-shoga), take between 140

– 180 days to produce pods. With Palm oil, I hear that Indonesia and Malaysia have banned the export of that item and, therefore, removing the tax will not change anything.

This leaves the problem of petrol and diesel, products for which we do not have an easy local replacement until our own oil comes on stream in, 2025 with first production and the refinery expected in 2026 and we refine some of it for the final products. Even before the War in Ukraine, the price of fuel was going up, on account of the worry by the fossil fuels producers of the global movement for clean energy (solar, wind, nuclear, geothermal, hydro-power, hydrogen, etc.).

On account of that fear, the petroleum companies were, apparently, no longer exploring for new reserves. Yet, the new clean energies, would take time to be available. The Russian-Ukrainian war, has made it worse. Just before the Ukrainian war, the price of crude was USD 80 per barrel. It is now USD 114 per barrel. Therefore, the Ukrainian war, has added another USD 34 per barrel. Of course, this is an artificial addition caused by the countries of the Global North (the Bazungu) mishandling their bilateral relations and also mishandling global affairs as well.

We are quietly engaging these actors to see how these actors can remove this artificial burden from the World. Nevertheless, this artificial distortion, should not divert us from our long-distance journey of achieving social-economic transformation because that is the only way of not only increasing our affluence but also immunizing ourselves against the mistakes of others.

In spite of being obstructed by some elements within Uganda that many times delay our programmes, the way we have been able to transcend the recent challenges of locusts, rising Lake Waters, Covid-19, etc., shows that we are moving towards that state of immunity from the mistakes of others. Even with the high commodity prices, we are still doing much better than many countries in the World. Our inflation has risen from 2.7% before the artificial crisis to 4.9% now. Compare this with other countries: UK 9%, USA 8.3%, France 4.8%, Germany 7.4%, Italy 6%, Spain 8.3%, Russia 17.8%, China 2.1%, Kenya 6.47%, Tanzania 3.8%, Rwanda 10.5% and Ghana 23.6%.

If it was not for the endless obstructions to our programmes, eg. The Palm Oil project in Buvuma, Sango Bay – we would even be much better off. With our coming Oil, Uganda will be immune to the external disruptions. Working with our African brothers, Uganda and Africa will be prosperous irrespective of the actions of the mistake makers, short of using nuclear weapons among themselves which may affect the whole World. Let us, therefore, not be diverted.

We are self-sufficient in food (maize, bananas, cassava, milk, beef, Irish potatoes, beans, peas, fruits, etc.). This is one of the most important factors for survival in times of peril like these. We have good infrastructure, we have a strong Army for guaranteeing peace and we are beginning to pay our scientists well. Nothing can stop us from growing if we work with our African brothers and sisters and other people of goodwill.

Actually, in my opinion, the only, really serious, vulnerabilities for Uganda, are two: continuing to depend so much on rain-fed agriculture and the damage to our incomparably good environment by encroaching on the wetlands (ebisharara, ebitoogo), Lake Shores (emyegyeego), river banks (enkuungu), forests and steep gradient mountain cliffs (ensa). I have agreed with both the Ministries of Agriculture on enhanced irrigation and with the Ministry of Environment on restoring our wetlands by promoting fish-farming on the edges (emiiga) instead of drying them with swamp rice growing, restoring the forests, etc. We should even agree with the Coastal Countries (Kenya and Tanzania) on, possibly, using nuclear energy to desalinate sea-water as an insurance in the face of the erraticness of the rain caused by the sabotage by the mistakes of global mistake-makers.

In conclusion, I repeat that the only, really, serious dangers to our future are: reliance on only rain-fed agriculture; damage to our environment; and a nuclear-war among the mistake-makers.

During the State of the Nation Address on the 7th of June, 2022, I will touch on the issue of the so called “coffee deal” that was being discussed in Parliament the other day. I could see fundamental disorientation in the position of some of the speakers that were speaking in Parliament. Uganda, indeed Africa, being in a slave-relationship with external actors, is not comparable to any other factors.

To recapitulate (summarize), we need to know and do the following:

1. Subsidies for and removing taxes from imported products is definite suicide because it will deplete both the family savings and the National Reserves, leading to inability to pay for imports because foreigners beyond East Africa do not accept the Uganda shilling as a unit of exchange. They insist on the dollar, gold, etc.

2. The correct action is to kukekereza (being frugal) – kwereembareemba or kubyesonyiwa (get alternatives for the non-oil items).

3. With the internally produced commodities, I was tempted to look at removing taxes because, with these, increased consumption would favour Uganda. However, the tax loss of Ugx. 193 billion for sugar, Ugx. 200 billion for cement, Ugx. 120 billion for mitayimbwa, would cripple our budget and the planned developments. Some of these challenges are

temporary. We have been having the phenomenon of low commodity prices eg. for maize, etc. It is the continued development of the economy that will get us to the stability of a more integrated economy. Only a few months ago, I opened a new factory of industrial sugar in Kinyara. This is the sugar, that is used in Coca Cola as refined sugar, different from the raw-sugar for tea. It is also used for medicines like children’s syrups. Its opening, was helping us to tackle the issue of surplus sugar. There are plans to get petrol out of sugar. With that phenomenon of a more integrated economy, the instability of ekyengera with low prices today and, then, ebula with high prices tomorrow, will be tamed.

4. With petrol, diesel and paraffin, the artificial crisis of the Bazungu has added another $34 dollars. We are engaging the involved actors on this. When we succeed here, we shall remain with original reason of the fossil fuels being worried about the clean energy sources. That will be much better than where we are now. It is important for Ugandans to know that even when we get our own petroleum, we cannot sell it below the World prices minus transport costs.

I thank you everybody for listening.

In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Besigye arrested as he tries to take to the streets again

Soldier, chief killed in Uganda's wild west

Nine media workers arrested in Ethiopia raids, outlets say

Moderna looks beyond Covid vaccines for Kenya factory

Dar port reaps from rising political heat ahead of Kenya polls

Monday May 23 2022

Trucks at the Port of Mombasa. FILE PHOTO | NMG

Summary

Smarting from the 2007 post-election violence that subjected businesses to heavy losses, Tanzania has become the favourite for most importers, who are avoiding the Northern Corridor ahead of the August polls.

By ANTHONY KITIMO

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The heat from Kenya’s campaigns ahead of the August 9 General Election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting from the windfall as more cargo destined for the Great Lakes region is diverted to the Dar es Salaam port.

With memories of the 2007/08 post-election violence that disrupted transport on the corridor still fresh — and a $63 million compensation award ordered by a Nairobi court still pending — many importers, especially Ugandans and Rwandans, are opting for the Central Corridor.

Due to this cargo flight, transit volumes through the Dar es Salaam port to the Central Corridor have recently recorded significant growth as Mombasa registers plateaued or declining volumes of goods on the northern route.

According to the latest Mombasa Port Corridor Community Charter report, transit volumes through the Dar es Salaam port grew at 21 percent in 2021 while those through the port of Mombasa declined 6.2 percent in the same period.

The decline is blamed on a move by importers in Uganda, Kenya’s largest transit market in the region, to divert more cargo to Dar es Salaam. Rwandans, too, diverted imports, especially during to the political impasse with Uganda that saw a three-year blockade of the common Gatuna/Katuna border point on the Northern Corridor.

The new report shows that Uganda-bound cargo reduced by 5.7 percent in 2021 while that going to Rwanda had dropped by 56.7 percent. In 2022, experts predict further decline for the Mombasa port, even as the government continues to upgrade it and offer lucrative incentives to users.

The port operators are reassuring their customers of security on the route, amid heightened campaigns for Uhuru Kenyatta’s succession that pits his rival-turned-ally former prime minister Raila Odinga of the Azimio la Umoja coalition against his ally-turned-foe, Deputy President William Ruto, leading the Kenya Kwanza alliance.

Aware of the shift in fortunes, the Kenyan government has moved to ensure increased efficiency and cargo-handling capacity in the Mombasa port after Japanese contractor, Toyo Construction, which has been constructing a second container terminal, completed the project. The government has appointed Swiss firm, Mediterranean Shipping Company (MSC), to run it.

Read: Kenya readies expanded Mombasa port for operations

The completion of this terminal gives the port an additional annual capacity of 450,000 twenty-foot equivalent units (Teus), bringing the total capacity to 2.1 million Teus.

However, the political temperatures have gone a notch higher this past week after the two frontrunners named their running mates from President Kenyatta’s backyard in Central Kenya, a battleground in the hunt for votes. The region largely supports Dr Ruto, but Mr Odinga seemed to gain some ground after naming veteran politician from Kirinyaga County and former Justice minister Martha Karua as his running mate. Dr Ruto has chosen Rigathi Gachagua, the MP for Mathira Constituency in the neighbouring Nyeri County.

This has set the stage for a bruising battle for the State House race, with some neighbours and the US having jitters about a possible contested presidential election result. Dr Ruto’s camp has often alleged that there is a plan by state agencies to rig the polls in favour of President Kenyatta’s preferred candidate, Mr Odinga.

Read: Kenya’s polls heat drives jitters up the Northern Corridor

Uncertainty around election

In March this year, top US spy agencies expressed concerns about the uncertainty around the Kenyan election, warning that any disruptions will not be healthy for regional stability. Kenya, a strategic ally of the US in the region, faces the test of stability in a hotly contested presidential election at a time it has emerged as a peace broker in the conflicts in Ethiopia, South Sudan and the Democratic Republic of Congo.

Kenya has invested heavily in infrastructure, among the standard gauge railway and two inland ports to facilitate transport of cargo from Mombasa port to Uganda, Rwanda and Democratic Republic of Congo. This has also seen Kenya refurbish its old railway to transport cargo to Malaba border with Uganda.

A recent report titled Worldwide Threat Assessment, which presents a consensus among 17 US intelligence agencies, said that East Africa probably will see new bouts of conflict … “as the region becomes increasingly strained by the civil war in Ethiopia, power struggles within the transitional government in Sudan, continued instability in Somalia, and a potentially contentious election in Kenya.” The declassified 31-page document came at a time the Ugandan Cabinet and legislators were voicing their concerns about the rising political friction in Kenya, which has driven up the cost of living along the Northern Corridor due to hesitancy by importers and transporters to use the route.

The leaders called on their government to put in place a robust contingency plan for factors that could drive up commodity prices, key of these being the Kenyan elections.

Lessons from the past

Kenya is the main route for imports into Uganda, with oil from international sources delivered to Eldoret in the North Rift, where other Northern Corridor countries of Uganda, South Sudan, Rwanda and eastern DR Congo pick it up for transportation to their markets.

Uganda has learnt from the 2007 polls, when post-election violence in Kenya led to blockage of fuel imports and rail-bound cargo from Mombasa after sections of the railway track were uprooted by rioting youth. “Uganda should facilitate imports and exports through the Central Corridor and deploy more water vessels to connect to the Central Corridor,” said Jane Nalunga, executive director of the Southern and Eastern Africa Trade Information and Negotiations Institute, Uganda.

Port and rail service providers in Tanzania and Uganda in early March signed a freight forwarding agreement with Roofings Group of Uganda to increase the volume of cargo through the Dar es Salaam port. Uganda Railways Corporation Chief Operating Officer Okachi Abubakar said 70 carriages had been flagged off from Uganda to Dar, and two ships would facilitate transportation of the cargo through Lake Victoria.

While there has not been major election-related violence in the current campaigns, the ghosts of the 2007/8 violence continue to haunt importers and transporters on the Northern Corridor. In 2018, a Kenyan court ordered the government to pay 16 Ugandan and Rwandan companies $63 million as compensation for trucks and goods lost during the post-election chaos.

Read: Northern Corridor states ‘monitoring Kenya’s elections’

Michelle D. Gavin, a former US ambassador to Botswana, earlier told The EastAfrican that the August elections will be among the most consequential political events in Africa in 2022.

“In a turbulent region, Kenya’s stability, economic muscle and diplomatic leadership are more essential than ever before,” she said. “An electoral process that takes a wrong turn could threaten the country’s capacity to continue playing a pivotal regional role going forward.”

US Secretary of State Antony Blinken, during his first official visit to Kenya last year, urged the government, opposition parties, civil society to work together to ensure safe and stable elections that reflect the will of the Kenyan people in the elections.

Mr Odinga, who is also the African Union High Representative for Infrastructure Development, on Wednesday visited South Sudan and held talks with President Salva Kiir before commissioning the 3.6km Freedom Bridge, a symbol of trade connectivity between Juba and the rest of the region.

Later on Thursday, the Kenyan leader held talks with President Yoweri Museveni in State House Entebbe.

“We discussed a wide range of issues concerning our two countries,” President Museveni wrote on his Twitter handle.

Mr Odinga also tweeted: “We walked down memory lane to discuss the shared history of our countries aimed at forging stronger ties moving into the future.” Whether the Kenyan leader’s tour to the two EAC member states will help calm the jitters remains to be seen.

The Northern Corridor has in the past year witnessed increased competition from the Central Corridor in cargo throughput to landlocked Rwanda, Burundi and eastern DRC, with indications of higher costs and transit time through the route, attested to by a decrease of cargo destined to Uganda.

In the past five years, cargo destined for Burundi through Mombasa registered the highest decline in volumes, at 53.3 percent, followed by Tanzanian cargo at 3.9 percent, and Uganda at 0.5 per cent, while DRC registered highest increase in cargo through the northern route at 21.6 percent, and South Sudan at 12.1 percent.

The latest Mombasa Port Corridor Community Charter report warns that the corridor’s performance could be worsened by the electioneering period. Gilbert Langat, the Charter’s chairperson and CEO of the Shippers Council of East Africa (SCEA), said they are engaging partners on the corridor to assure them of safety and security of their cargo and vehicles to build confidence.

Shippers have also cited high penalties charged by the port, detention charges to, delays in railage to the Inland Container Depot in Nairobi, delays in offloading and return of empty containers and unstable automated systems by agencies as other reasons driving them to the Central Corridor.

SCEA reports indicate that 80 percent of imports through the port of Mombasa are handled as through bill of lading (TBL) due to an unpredictable operational environment resulting in an additional cost of between $100 and $150 per Teu. A through bill of lading allows for transportation of goods within domestic borders and through international shipment.

These charges are estimated to have cost the business community between $1 million and $1.5 million, paid to the shipping lines and ship agents in 2021. The detention cost accruing before containers cleared from the ICDN was estimated between $190,000 and $350,000 weekly, due to delayed railage, system downtimes and equipment breakdown.

Structured engagements

Shippers through the port of Mombasa in 2020 paid an average of $3,600 as storage penalties, but in 2021 the cost declined 33 percent to $2,400, a decline the Kenya Ports Authority attributes to “progressive structured engagements between the lead agencies and the private sector led by SCEA”.

Despite the decline in transit cargo volumes through Mombasa, the port still registered a positive performance in 2021, the impact of Covid-19 and global economic crisis notwithstanding.

Between January and December 2021, the Mombasa port registered 34.5 million tonnes of cargo compared with 34.1 million tonnes in 2020.

Containerised cargo increased 5.15 percent from 1.36 million Teu in 2020 to 1.43 million Teu in 2021. Transit cargo was 9.3 million tonnes in 2020, compared with 10.1 million tonnes in 2021.

Meanwhile, Tanzania’s “softened” borders with Kenya has reduced non-tariff barriers in the one year of President Samia Suluhu’s reign. Data from the Kenya National Bureau of Statistics (KNBS) shows that Tanzania’s exports to Kenya doubled in just 10 months after the Samia takeover. In the John Magufuli era, the two countries engaged in many trade rows, with Tanzania playing protectionist while imposing restrictions on trade with Kenya, against the EAC Common Market rules.

KNBS’s Economic Survey 2022 shows that the impact of the Covid-19 pandemic notwithstanding, Kenya imported more goods from Tanzania in the past year than before.

In May 2021, President Samia and Uhuru Kenyatta agreed on targets, including eliminating 14 identified non-tariff barriers in six months.

After President Samia’s visit, President Kenyatta directed the country’s agriculture officials to allow Tanzanian maize imports that had been barred. He also directed that work permits be harmonised and relaxed the policy on business visas for traders. Tanzania exported more food to Kenya in 2021.

Increase in imports

“Kenya’s imports from Tanzania nearly doubled from Ksh27.9 billion ($242.6 million) in 2020 to Ksh54.5 billion ($473.9 million) in 2021, partly attributable to increase in imports of maize and rice from this country,” said the report released by Treasury Cabinet Secretary Ukur Yatani earlier this month.

“Similarly, Kenya’s exports to Tanzania and DR Congo exhibited a significant rise from Ksh31.8 billion ($276.5 million) and Ksh14.3 billion ($124.3 million) in 2020, to Ksh45.6 billion ($396.5 million) and Ksh24.4 billion ($212.2 million) respectively.”

The rise was due to an increase in domestic exports of tea, cut flowers and coffee to DR Congo and soap to Tanzania. Uganda remained the largest export market for Kenyan products, according to the report, trade disputes notwithstanding.

“The value of exports to Uganda increased from Ksh72.2 billion ($627.8 million) in 2020, to Ksh91.7 billion ($797.4 million) in 2021, largely driven by increase in domestic exports of cement clinkers, palm oil, flat-rolled products of iron and non-alloy steel and re-exports of machines tools for drilling, boring sinking, milling, threading or taping,” the report states. “As a result, Uganda continued to be the country’s key export destination, accounting for 12.3 percent of total export earnings. Increased demand for sugar and milk led to the increased expenditure of imports from Uganda.”

In the period, exports to South Sudan declined 26 percent to Ksh17.1billion ($148.7 million), resulting in a reduction in domestic exports of food supplements, and re-export of dried leguminous vegetables.

In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Besigye arrested as he tries to take to the streets again

Soldier, chief killed in Uganda's wild west

Museveni's address: No govt intervention amid high cost of living

Nine media workers arrested in Ethiopia raids, outlets say

Moderna looks beyond Covid vaccines for Kenya factory

DRC’s President Tshisekedi in Burundi for 3-day visit

Monday May 23 2022

President Evariste Ndayishimiye of Burundi hosts DRC's Felix Antoine Tshisekedi at State House in Bujumbura on May 21, 2022. PHOTO | NTARE HOUSE

Summary

By MOSES HAVYARIMANA

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The Democratic Republic of Congo President Felix Antoine Tshisekedi arrived at Melchior Ndadaye International Airport in Bujumbura on Saturday evening for a three-day state visit to Burundi.

He was received by Burundi’s Foreign Affairs minister Albert Shingiro before meeting President Evariste Ndayishimiye at State House Bujumbura.

President Tshisekedi was honoured at Burundi’s State House (Ntare House) with a 21-gun salute and tree planting to mark his visit.

After a closed-door meeting, the DRC leader said the two countries are seeking to strengthen bilateral ties and economic cooperation in agriculture, defence and security, and railway project.

This is the first visit for Mr Tshisekedi to Burundi since his country’s admission into the East African Community (EAC) in March this year. He last visited Burundi in June 2019.

DRC has been galvanising support from EAC countries to stem rebel activity in its eastern frontier which borders four member states, including Burundi.

Last July, Presidents Ndayishimiye and Tshisekedi signed several agreements in Kinshasa during the former’s visit to the country. They included cooperation development; maintenance and strengthening of peace, defence and security; trade facilitation; and political and diplomatic consultations.

Read: DRC and Burundi sign cooperation deals

“We are looking at common interest areas that include the railway project which will link Tanzania, Burundi and DRC,” President Tshisekedi said at a press briefing in Bujumbura on Saturday.

The railway project is expected to connect Tanzania through the central corridor Uvinza to Musongati, Gitega and Bujumbura in Burundi and Uvira and Kindu in eastern DR Congo.

While in Burundi, Mr Tshisekedi will visit two agricultural organisatons, including the main fertiliser manufacturer Fomi. He will also lay a wealth on former president Pierre Nkurunziza’s grave.

In the headlines

Farmaajo hands over presidency to Mohamoud

President Mohamoud called Farmaajo a ‘Somali elder’ who could contribute his wealth of experience.

Dar port reaps from rising political heat in Kenya

The heat from Kenya’s campaigns ahead of the August election is affecting the flow of goods on the Northern Corridor, with Tanzania benefiting.

Besigye arrested as he tries to take to the streets again

Soldier, chief killed in Uganda's wild west

Museveni's address: No govt intervention amid high cost of living

Nine media workers arrested in Ethiopia raids, outlets say

Moderna looks beyond Covid vaccines for Kenya factory

Kinshasa enters shipping business, set to rock EA boats

Sunday May 22 2022

A vessel docks at the port of Dar es Salaam. The DR Congo says it has obtained yard spaces in Mombasa and Dar es Salaam to roll out offices for its new shipping line, The Lignes Maritimes Congolaises, that will start operations from June. PHOTO | AFP

Summary

The Kenya Ports Authority (KPA) is banking on the admission of the DR Congo to the East African Community to increase its business market in the region.
DRC’s new shipping line will also use Tanzanian ports and this could be an added incentive to Dodoma’s latest programme to expand its inland ports.

By APOLINARI TAIRO

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By ANTHONY KITIMO

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The Democratic Republic of Congo is entering shipping business with eyes on East Africa’s two biggest ports in Kenya and Tanzania, signalling further intent by the bloc’s newest member to ease its importation channels.

This week, officials from Kinshasa announced they had obtained yard spaces in Mombasa and Dar es Salaam to roll out offices for DR Congo’s new shipping line: The Lignes Maritimes Congolaises (LMC) that will start operations from June.

The decision that came just about a month after the DR Congo was formally admitted into the East African Community reflects the country’s desire to tap into the benefits of being in the trade bloc, where it is now cheaper and easier to import as tariffs are headed for reduction.

The Kenya Ports Authority (KPA) is banking on the admission of the DR Congo to the East African Community to increase its business market in the region.

LMC, the state-owned shipping line mandated with maritime transport and the operation of marine vessels in DRC, is targeting to channel more import-export cargo through the Port of Mombasa, as well as raise volumes in Dar.

The LMC delegation led by director Banze Nkulu Mulunda and other government officials agreed to open office at the Port of Mombasa to coordinate imports and exports from their country.

“After a discussion on operational and logistics issues with KPA container terminal principal operations officer Michael Bokole and his team, we have agreed to start our operations from Mombasa starting next month.

‘‘This will help in creating more jobs and business opportunities not only for DRC but to Kenya,” said Dr Mulunda.

Mr Bokole welcomed the delegation and said it was a big milestone in ensuring the DRC is integrated into the EAC.

“The DRC recently joined the EAC community bolstering trade opportunities among member states who are keen to increase intra-EAC trade and benefit from the common market. Them coming to Mombasa will increase both import and export of goods through the port,” said Mr Bokole.

The Kinshasa team agreed LCM will be responsible for collecting royalties from shipping lines that carry cargo to and from the DRC.

LMC has adequately addressed the issue of storage, traceability and security of its products as the DRC expects to increase its business after joining the EAC in April.

Open for trade

DRC is now expected to deposit the instruments of acceptance with the East African Community secretariat, agreeing to open up its market to other member states for business as it got admitted to the regional bloc.

The instruments of acceptance will see the member states trade freely with Kinshasa in line with the Common Market Protocol that allows free movement of goods and services.

Prior to admission, EAC states had to pay tariffs for imports or exports because of external rules that were applicable.

The DRC comes into the bloc with a huge market of 90 million people and the potential to contribute to an expanded market and investment opportunities to boost the EAC common market.

Already, Kinshasa has bilateral and multilateral cooperation arrangements with EAC partner states in various areas, including customs, infrastructure and productive and social sectors as a member of the Southern African Development Community (Sadc), the Common Market for Eastern and Southern African (Comesa), the Economic Community of Central African States (ECCAS), the Economic Community of the Great Lakes Countries (CEPGL) and the International Conference on the Great Lakes Region (ICGLR).

In March the EAC Council of Ministers met to “ensure all ground” had been covered and agreed upon by all parties to allow seamless integration of the newest member of the bloc.

Tanzania ports

DRC’s new shipping line will also use Tanzanian ports and this could be an added incentive to Dodoma’s latest programme to expand its inland ports.

The Tanzania Ports Authority (TPA), for example, is expanding the Kasanga port on Lake Tanganyika at a cost of Tsh4 billion ($1.7 million). Kasanga is the second biggest port on Lake Tanganyika after Kigoma.

The Lake Tanganyika Business Summit held in Kigoma last week discussed various measures to speed up movements of goods and people within the Great Lakes Region, mostly to DR Congo.

Officials in Tanzania have also been driving for more markets in DR Congo, holding a business summit with top traders in the DRC last week. The summit attracted business executives and other stakeholders who use the Dar es Salaam Port as a gateway for imports and exports.

Kigoma Regional Commissioner Thobias Andengenye said in a statement that the Lake Tanganyika Investment and Business Summit will further open the Kigoma region for cross-border trade. TPA said in its latest report that other five ports on Lake Tanganyika have been established to handle Congo cargo, while a shorter road has been designed to connect Tanzania and Lubumbashi in Eastern DR Congo through Kasanga Port on Lake Tanganyika.

Bulk copper

The ports authority said it is currently facilitating the exportation of bulk copper from the DRC.

The Dar es Salaam port is currently, handling over 1.8 million tonnes of cargo from the DR Congo per year.

Tanzania exports to the DRC in 2021 were estimated at $207.23 million, according to the Tanzania Embassy in Kinshasa.

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