TCCIA News and Events Blog

ZAMBIA has signed an agreement aimed at harmonising all aspects of transport, trade and spatial development with the Democratic Republic of Congo (DRC) and Namibia.

During the signing ceremony on the Walvis Bay-Ndola-Lubumbashi Corridor Development communications minister Professor Geoffrey Lungwangwa (pictured) said according to various publications by our regional bodies, transport costs in Africa were in the range of 60 per cent.

“Transport costs in our region as a share of value of exports are high. According to various publications by our regional bodies, transport costs in Africa are in the region of 60 per cent.

The high cost of transport in our region and Africa as a whole has negatively impacted on our competitive capacity on the global economic market,” Prof Lungwangwa said. “As ministers responsible for transport under this corridor, there is need for us to cooperate and work tirelessly to reduce this cost for the benefit of our people we are serving in our respective countries.”

He said excessive documentary requirements and insufficient use of automated systems at border posts also hindered smooth trade in the region.

Prof Lungwangwa said the inadequate border facilities at most border posts was another bottleneck as some officials were forced to work under trees.

On the issue of immigration, Prof Lungwangwa said commercial drivers were subjected to obtaining VISAs valid for seven days in some cases when they had to spend more days on the road hence wasting time and raising transportation costs.

Prof Lungwangwa said the Walvis Bay-Ndola-Lubumbashi Corridor Development was of critical importance to the southern African region’s economic development.

“We are going to witness the signing of an agreement which is also focusing on harmonisation of all aspects of transport, trade and spatial development initiative among the participating states namely the Democratic Republic of Congo, Namibia and Zambia,” he said.

Prof Lungwangwa said the initiative of the Walvis Bay-Ndola-Lubumbashi Corridor Development was initiated by then Namibian president Sam Nujoma and former president Frederick Chiluba in 1997 during the state visit to Namibia by late DRC president Laurent Desire Kabila.

“As ministers of transport in the three countries, we were then directed to establish this corridor. We have taken so much time to have this corridor become a reality because of various consultations our officials were making.

They had to consult the donors, the public and private sectors and other international organisations including the regional economic grouping such as SADC and COMESA. This agreement establishing the Walvis Bay-Ndola-Lubumbashi Corridor was also subjected to legal scrutiny by our respective ministers of justice,” Prof Lungwangwa said.

He added that the agreement was being signed to facilitate cross border trade and transit-transport cooperation among the three states.

“Give landlocked countries of Zambia and the Katanga Province of DRC unimpeded access through Namibia’s territory to the Port of Walvis Bay and development initiative aimed at the developing other economic areas along the corridor such as mining agriculture and tourism to mention a few,” Prof Lungwangwa said.

And Namibian minister of works and transport Helmut Angula said developing countries were particularly challenged as a result of remoteness from international markets, unfavourable terms of trade, limited investment in infrastructure development and maintenance as well as other policy-related dilemmas.

“The share of Least Developing Countries in world trade also remains dismal over the years. Thus establishment of functional transit-transport arrangements through bilateral treaties conventions, policy reforms and harmonisation of common rules and standards are imperative as we seek to take advantage of global trade instruments,” he said.

Angula said the Walvis Bay-Ndola-Lubumbashi Corridor Development was equally a fulfilment of sub-regional protocols on cooperation and development.

“I urge that the virtues of our agreement be operationalised or risk degenerating into a mere dream in the increasing competitive corridor and cross border business. Thus the need for trade facilities through removal of both physical and non-physical barriers cannot be overemphasised,” Angula said.

And permanent secretary in the Ministry of Communications and Transport Dominic Sichinga said Livingstone City faced a lot of challenges as a transit town in terms of infrastructure and other socio-economic problems.

“Accidents are on the rise in this city because of high traffic of trucks transiting through the city. HIV/AIDS cases are also on the rise in this city.

Statistics show that a major contributing factor is that a great number of truck drivers spend a lot of time from their homes and engage themselves in sexual activities. I would urge trucking companies to develop HIV/AIDS policies in places of work,” said Sichinga.

ZAMBIA has signed an agreement aimed at harmonising all aspects of transport, trade and spatial development with the Democratic Republic of Congo (DRC) and Namibia.

During the signing ceremony on the Walvis Bay-Ndola-Lubumbashi Corridor Development communications minister Professor Geoffrey Lungwangwa (pictured) said according to various publications by our regional bodies, transport costs in Africa were in the range of 60 per cent.

“Transport costs in our region as a share of value of exports are high. According to various publications by our regional bodies, transport costs in Africa are in the region of 60 per cent.

The high cost of transport in our region and Africa as a whole has negatively impacted on our competitive capacity on the global economic market,” Prof Lungwangwa said. “As ministers responsible for transport under this corridor, there is need for us to cooperate and work tirelessly to reduce this cost for the benefit of our people we are serving in our respective countries.”

He said excessive documentary requirements and insufficient use of automated systems at border posts also hindered smooth trade in the region.

Prof Lungwangwa said the inadequate border facilities at most border posts was another bottleneck as some officials were forced to work under trees.

On the issue of immigration, Prof Lungwangwa said commercial drivers were subjected to obtaining VISAs valid for seven days in some cases when they had to spend more days on the road hence wasting time and raising transportation costs.

Prof Lungwangwa said the Walvis Bay-Ndola-Lubumbashi Corridor Development was of critical importance to the southern African region’s economic development.

“We are going to witness the signing of an agreement which is also focusing on harmonisation of all aspects of transport, trade and spatial development initiative among the participating states namely the Democratic Republic of Congo, Namibia and Zambia,” he said.

Prof Lungwangwa said the initiative of the Walvis Bay-Ndola-Lubumbashi Corridor Development was initiated by then Namibian president Sam Nujoma and former president Frederick Chiluba in 1997 during the state visit to Namibia by late DRC president Laurent Desire Kabila.

“As ministers of transport in the three countries, we were then directed to establish this corridor. We have taken so much time to have this corridor become a reality because of various consultations our officials were making.

They had to consult the donors, the public and private sectors and other international organisations including the regional economic grouping such as SADC and COMESA. This agreement establishing the Walvis Bay-Ndola-Lubumbashi Corridor was also subjected to legal scrutiny by our respective ministers of justice,” Prof Lungwangwa said.

He added that the agreement was being signed to facilitate cross border trade and transit-transport cooperation among the three states.

“Give landlocked countries of Zambia and the Katanga Province of DRC unimpeded access through Namibia’s territory to the Port of Walvis Bay and development initiative aimed at the developing other economic areas along the corridor such as mining agriculture and tourism to mention a few,” Prof Lungwangwa said.

And Namibian minister of works and transport Helmut Angula said developing countries were particularly challenged as a result of remoteness from international markets, unfavourable terms of trade, limited investment in infrastructure development and maintenance as well as other policy-related dilemmas.

“The share of Least Developing Countries in world trade also remains dismal over the years. Thus establishment of functional transit-transport arrangements through bilateral treaties conventions, policy reforms and harmonisation of common rules and standards are imperative as we seek to take advantage of global trade instruments,” he said.

Angula said the Walvis Bay-Ndola-Lubumbashi Corridor Development was equally a fulfilment of sub-regional protocols on cooperation and development.

“I urge that the virtues of our agreement be operationalised or risk degenerating into a mere dream in the increasing competitive corridor and cross border business. Thus the need for trade facilities through removal of both physical and non-physical barriers cannot be overemphasised,” Angula said.

And permanent secretary in the Ministry of Communications and Transport Dominic Sichinga said Livingstone City faced a lot of challenges as a transit town in terms of infrastructure and other socio-economic problems.

“Accidents are on the rise in this city because of high traffic of trucks transiting through the city. HIV/AIDS cases are also on the rise in this city.

Statistics show that a major contributing factor is that a great number of truck drivers spend a lot of time from their homes and engage themselves in sexual activities. I would urge trucking companies to develop HIV/AIDS policies in places of work,” said Sichinga.

source – the citizen

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Tanzania sold tea worth Sh3.31 billion ($2.55 million) at the Mombasa auction last month.It sold 1.369 million kilos out of 1.493 million offered in the month. According to reports by Africa Tea Brokers Limited, a kilo was sold at an average of $1.86.

In February 2009, Tanzania offered 1.422 million kilos, but 1.141 million kilos were sold at an average of $1.38 a kilo.Primary grade tea was sold at an average of $2.15 a kilo last month, more than $1.62 in February 2009. Secondary grade tea was traded at an average of $1.28 against $1.05 during the same period.

Major tea buyers of Tanzania’s tea are Global Tea Commodities (K), Van Rees, LAB International (K) Ltd and Abbas Traders Limited.

The Mombasa auction, which is second largest tea market in the world after Colombo, handled 33.154 kilos of which 31.589 million kilos were purchased at an average price of $2.94 a kilo last month.

In February last year, 28.83 million kilos were offered but 23.867 million kilos were sold at an average of $2.12 a kilo.Kenya is a leading tea producer in the world. It accounted for 75 per cent of total market supply last month and 72.6 per cent in February 2009.

It sold tea at an average price of $3.13 a kilo last month, higher than $2.28 in February 2009.Kenya’s tea varieties have high qualities and subsequent prices.Other countries which sell tea through the Mombasa auction are Uganda, Rwanda, Burundi, Madagascar, Mozambique, Malawi and the Democratic Republic of Congo.

Last month, Pakistani and Egyptian packers were dominant in the first two auctions. They were both active but at lower levels in the third week.Afghanistan lent strong support in the first two auctions, easing in the third week but re-entered with more interest in the last sale. Yemen and other Middle Eastern countries also lent strong support.

There was more interest from Kazakhstan in the first two weeks but thereafter activity waned. Sudan showed a little interest in the first two auctions and subsequently lent more activity with some activity from Russia, but was selective in the next auction with interest waning in the final week.

The UK was selective and showed a little more interest in the first two weeks lending more enquiry in the last sale.
Bazaar was out bid in the last two auctions but showed more activity in the first two weeks. Somalia was more active at the lower end of the market.

Source – The Citizen

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The Tanganyika Planting Company (TPC) has started producing 20 megawatts from sugarcane waste.TPC chief executive officer Robert Baissac said the aim was to reduce dependence on hydropower which had been fraught with uncertainties during droughts.

TPC will cut its running cost since it will be operating on its own electricity.Some energy will also be supplied to surrounding communities and the surplus will be sold to the Tanzania Electric Supply Company.

TPC is discussing with the Ministry of Minerals and Energy on the possibility of supplying 10 MW to the national grid. TPC is using 10MW for its needs and for the surrounding communities.

According to Mr Baissac, the programme is sustainable and has no negative environmental impacts.
TPC Limited, which was established 79 years ago, was registered in Denmark as A/S Tanganyika Planting Company Limited.

It started production in 1936 with the capacity of 4,000 tonnes of sugar.In June 1973, it was registered in Tanzania as TPC Ltd which was owned by Danish A.P. Moller.

In 1980, the government took it over. But as the economy was being reform, it was privatised to Sukari Investment Company Ltd — a Mauritius-registered firm — which bought 75 per cent of shares in 2000.

Source The Citizen

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Tanzania�s coffee prices continued to fall, with a limited quantity of the crop changing hands, traders have said. The state-run Tanzania Coffee Board (TCB) said 4,781 60-kg bags were offered, with 3,923 bags sold. At the last auction on February 18, 7,263 60-kg bags were offered and 5,324 bags sold. “(The) overall average prices at the Moshi exchange were down by $4.16 per 50kg compared with the last auction,” TCB said in its coffee auction report. At last week’s auction, average coffee prices plunged by $14.02 per bag. East African coffee is normally packed in 60-kg bags but the prices are quoted for quantities of 50 kg. Traders said most buyers have already met their export sales commitments as Tanzania’s coffee season comes to an end. Benchmark grade AA sold at $159.20-$232.60 per bag compared with $142.00-$235.00 per bag at the last auction and fetched an average price of $212.80 per bag, down from $217.55 previously.

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Plans are underway to harmonise laws of export processing zones (EPZs) in East Africa.

The director-general of the Tanzania EPZ Authority, Dr Adelhelm Meru, hopes by so doing investments will be increased and the cooperation enhanced among EPZ bodies in the region.
He was briefing top officials of the Kenya EPZ authority in Dar es Salaam on Monday.

According to the acting chief executive officer of EPZA Kenya, Mr Joseph Kosure, current laws which oblige EPZs to sell only 20 per cent of their products in the East African markets are outdated.

He said it was important to amend such laws to allow EPZs to sell at least 70 per cent of their products in the region.

He also observed that East Africa�s EPZs faced challenges, which should be addressed.
�Foremost,�our people don�t know the concept of EPZs. This hinders them from fully participating and benefiting from the investments in terms of employment, for example,� he said.
Trust between the customs bodies in the region and the EPZs investors is also lacking because customs departments impose export taxes on EPZ products.

Dr Meru told the Kenyans that Tanzania�s EPZs exported goods worth over $250 million (Sh339 billion) in 2008. �
�Thirty-three companies have been registered so far in the EPZs and the future is bright,� he said.
Mr Kosure, who was leading a three-member team, commended the Tanzania EPZA for its achievement.

�This is the reason why we have come here to learn from you,� he said.
�In 1994, we recorded exports worth less than a billion Kenyan shillings but the figure has gone up considerably but we think we can do better than this,� he said.
The number of companies operating as EPZs in Kenya increased from four in 1994 to 99 in 2008.
EPZ investments started in Kenya in 1994

source- The Citizen

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