Why visa-free policy is a game changer for Africa’s one-market

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In: Tanzania Foreign Investment News

The African Development Bank (AfDB) Group has backed Kenya’s open visa entry policy as a key cog in the fruition of a proposed free market on the continent.

Kenya in January 2024 joined Rwanda, Seychelles, Gambia and Benin in removing visa requirements for travellers from other African countries to boost trade and investments.

And now AfDB has lauded the move as a game-changer in facilitating the free movement of workers around the continent and helping create the African Union-backed African Continental Free Trade Area (AfCFTA) trading bloc.

AfCFTA is projected to be the world’s largest market on full implementation with a population of about 1.4 billion people.

“Implementing policies that enable free mobility of labour and services—such as the open visa entry for Africans being championed by Kenya and Rwanda—would facilitate the operation of the AfCFTA,” AfDB analysts wrote in the African Economic Outlook 2024 report published last week.

“The AfCFTA can be a game changer if fully implemented and domesticated by all African countries. It will create a single continental market for goods and services, with free movement of capital, talent and skills.”

Kenya’s visa-free entry policy requires travellers to apply through Electronic Travel Authorisation (eTA) 72 hours before arrival to be granted permission to enter Kenya.

Nairobi, however, requires travellers to pay $30 when applying for eTA, a condition that analysts insist is a visa by another name.

Critics have also pointed out that the eTA system— the online visitor registration platform — was not accommodative for African traders who need to travel to Kenya for emergency reasons and those wishing to change travel time.

The complaints prompted the Department of Immigration and Citizen Services to exempt citizens of Ethiopia, South Africa, Comoros, Congo-Brazzaville, Eritrea, Mozambique and San Marino from paying the fees when applying to travel to Kenya via eTA.

The fees do not also apply for citizens from member countries of the seven-nation East African Community trading bloc.

The backing from AfDB has come at a time when traders have complained of lengthy border checks and varied quality standards at the border points, listing them among the biggest threats to the creation of a common market on the continent.

The complaints arose from their experience following the launch of the Guided Trade Initiative (GTI) in October 2022, which aimed at stress-testing the operational, institutional, legal and trade policy environment ahead of the full rollout of AfCFTA.

The initiative covered trade in tens of products such as tea, coffee, ceramic tiles, batteries, processed meat products, sugar, pasta, glucose syrup, dried fruits and sisal fiber.

The pilot scheme was implemented in eight countries: Kenya, Tanzania, Rwanda, Ghana Egypt, Mauritius, Cameroon and Tunisia.

Traders, however, said bureaucratic red tape at border posts in some participating countries was proving to be a bigger barrier to free movement of goods on the continent than its weak transport and logistics capacity.

“If it is taking us so long just to do standards, you can imagine the kind of challenges we are facing around access to the markets,” Flora Mutahi, the founder of Melvin Marsh International, told a forum in Nairobi last year. “Logistics around getting to the market…are cumbersome. These are barriers that we need to first overcome.”

Trade Principal Secretary Alfred K’Ombudo said at the time that the biggest task for the Accra-headquartered AfCFTA secretariat should be more of simplifying customs procedures, than eliminating tariff barriers which, he says, are coming down.

“If you want to trade internationally, it’s not just about bringing down tariffs, but it’s about dealing with borders…transport logistics, shipping industry, and making sure that your goods arrive competitively,” Mr K’Ombudo said.

He added: “It’s about ensuring that you package your goods according to the requirements of the foreign market and comply with the requirements in sanitary and phytosanitary and all of those issues.”

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Tanzania: President Samia Receives Honorary Doctorate

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Tanzania: President Samia Receives Honorary Doctorate

SEOUL — Tanzania President Samia Suluhu Hassan has received her fifth Honorary Doctorate of Philosophy (Honoris Causa) from the Korean Aerospace University recognizing her contribution in the Aerospace Sector.

The award was bestowed to the President by the University President Hee Young Hurr, in Seoul, Republic of Korea, on June 3, 2024.

President Samia is in Seoul for an official state visit and she is scheduled to grace the first South Korea-Africa Summit on Tuesday, June 4.

Source: allafrica.com

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Gardening triumph in semi-arid Isinya

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In: Tanzania Foreign Investment News

When Alice Migwi and her husband bought their one-acre land in Isinya, Kajiado County it was all dry and sulky. It was hard to imagine that 12 years later, it would be this tranquil, with lots of greenery, butterflies and birds, ornamental plants, and Pemba and Kikuyu grass creating a beautiful lawn.

Their labour of love has paid off, she says.

At her home, she has created a beautiful xeriscape, a practice of designing landscapes to reduce or eliminate the need for irrigation or constant watering.

She has grown over 25 species of succulent plants. The garden has more than five species of agaves, which have rosettes of succulent leaves used to make tequila. Her garden also has false pineapples, aloe vera, ponytail palms and jade plants.

Alice Migwi tends to her garden in Isinya Kajiado County on May 28, 2024. 

Photo credit: Billy Ogada | Nation Media Group

Her balcony has potted plants and she has used traditional kettles and cups, giving the space a touch of Africa.

On one side of the garden, there is a colourful array of flowering plants including marigolds and African daisies. She refers to this area as the “pollinator hotspot.”

“My home now attracts a lot of bees and butterflies. I love to see how nature interacts with each other. I also have birds, lizards, frogs, geckos, and even hedgehogs,” says the 48-year-old, adding, “I get to interact with nature despite living in a dry area”.

For many people, the late 40s signals a more relaxed living, perhaps away from the city, but they cannot live far because of the long commute time to work or school. However, Ms Migwi says living in Isinya has worked perfectly for her family and the greenery is now a bonus.

“We have lived in several places, including Uganda, Tanzania and different locations in Nairobi. Now I’m working as a consultant/entrepreneur, so Isinya is a perfect place. As much as it seems rural, it just felt right. Our children are also big enough to cope with living here and we have only one daughter in school whom we drop and pick and it works out quite fine. I also have another brother who lives not too far away and that gives us comfort in its own way,” she says.

Ms Migwi’s love for gardening started when she was young.

“Since I was a child, I have always been fascinated by flowers, especially roses and the mimosa. The little things fascinated me so much and so I always had a love and interest for plants. The more I ventured into it, the more I just fell in love with it,” she recalls.

Her first garden gave her a space to experiment with vegetables and beautiful flowers such as monsteras – the evergreen perennial vines and other flowers that are essential for any plant lover with high expectations of creating beautiful botanical worlds.

“The climate of this area said a lot about how the art would be done. It is so dry and hot. I had the idea of planting beautiful flowers, but the plants died a painful death even when I watered them. They reminded me of the climatic conditions I live in,” Ms Migwi recalls.

She did not give up. She went back to the drawing board.

“Plants will let you down, they will die, and that’s probably every gardener’s first experience. We always have that period where you start and then you say no, this is not for me,” says the mother of three.

Baby sun rose ground cover plants at Alice Migwi’s garden in Isinya Kajiado County on May 28, 2024.

Photo credit: Billy Ogada | Nation Media Group

She has had many such episodes but always comes back stronger.

“Just two years into desert landscaping, my love of working with plants and creating garden spaces has grown far beyond the reach of secateurs or loppers,” says Ms Migwi, adding, ” I’m a creative person at heart. I thought about how I could paint the landscape into a picture that represents who I am, a place that would make me and others feel at home. While most people choose to grow food, I wanted to do something different.”

The art extends into her house. The corridors are lined with potted money plants [Epipremnum aureum, grown to fill the house with prosperity and wealth]. She also has a Hoya, a reliable warm-weather bloomer which thrives in the right soil, plenty of light, and adequate water. She also has multicoloured Aglaonema, which she bought from local vendors.

“Many residents here don’t know about ornamental plants, but they [plants] grow best here. So I thought, if I can show people, they can go and practice it in their homesteads so they can have beauty around them,” she says.

For those looking to pot their flowers, she says “potted plants can become stressed because they are confined to a small space.”

“Plants communicate and thrive when they grow together, sharing nutrients and water. When a plant is alone in a pot, it can become weak and dry up quickly. They may appear unhappy because they are solitary and require more attention,” she says.

Her secret to maintaining a lush garden is to stick to the basics. When planting, she uses compost alone or mixed with soil. Occasionally she feeds the plants to ensure they have nice, healthy-looking leaves, and finally, she adds natural fertiliser. She uses a mixture of black cotton soil and sand.

“The black cotton soil holds a lot of water. The sand is added to drain the excess water because plants don’t thrive in waterlogged conditions. Plants store water in their leaves, taking only what they need and releasing any excess. If you grow them directly in the black cotton soil, they will rot,” she says.

 French Marigold at Alice Migwi’s garden in Isinya Kajiado County on May 28, 2024. 

Photo credit: Billy Ogada | Nation Media Group

“When trying to improve your space, it’s important to consider your climate. Don’t try to grow something just because you’ve seen it elsewhere and assume it will work for you. When it comes to ornamental plants, soil quality is not a concern. If the climate is suitable, the soil will be too,” she adds.

“As drought-tolerant plants, “I don’t water them at all. Instead, they draw water from the humidity,” she says.

Ms Migwi does not see it as a challenge to look after her plants. “I only do weed.” “If you are a busy person and you want to garden, you can start with ornamental plants. They are easy to maintain, they don’t bother you with diseases, you don’t have to worry when you travel,” she notes.

But for her lawn, what was supposed to be her living space became her drying space. She had to spread 20 tonnes of fertiliser to get her Kikuyu and Pemba grass to stick.

“The rainy season was a blessing for my grass, it gave me the boost I needed,” she says.

Beyond her own garden, Alice extends her passion to the community. As a consultant, she designs outdoor spaces for local families, often creating areas for play and relaxation surrounded by wildlife-friendly and fragrant planting. She is also an author, sharing her knowledge and love for gardening with others.

Alice’s vision as a gardener is to create a community space with native plants where people can interact with nature.

“I enjoy all aspects of gardening, from planting seeds to pruning hedges and clearing branches. Gardening is the best form of exercise, and I’m always surprised by how good my body feels after just a few minutes in the garden,” she says.

Alice Migwi has found joy and peace in xeriscaping, proving that with passion and perseverance, even the driest lands can bloom beautifully.

“The glory of gardening is to have your hands in the dirt, your head in the sun, and your heart in nature,” she reflects on the words of Alfred Austin (English poet).

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South Korea agrees to lend billions to Tanzania, Ethiopia

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By REUTERS

Tanzania and Ethiopia said they had signed accords with South Korea for loans of billions of dollars, part of broader deals that will give the Asian nation access to Africa’s crucial mineral resources and vast export market.

South Korea is hosting at least 30 heads of state, including Tanzania and Ethiopia, at a South Korea-Africa summit this week.

Tanzania said it will borrow $2.5 billion over the next five years from South Korea through concessional loans.

Read: Ruto, Samia eye trade deals with South Korea

The country also signed two accords on Korean use of its ocean resources and minerals used in clean energy technologies such as nickel, lithium and graphite, presidential spokesperson Zuhura Yunus said on Sunday.

Ethiopia, a fast-growing economy with 126 million people, signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development, the state-affiliated Fana media outlet said.

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Tanzanian President Samia Suluhu Hassan is also seeking cooperation in sectors including sustainable use of ocean resources, development of natural gas deposits and creative industries, and for Tanzania to supply labour to South Korea, according to Yunus.

Since Friday, South Korean President Yoon Suk Yeol has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and was due to meet separately with heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.

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East African Community in limbo as funding crisis paralyses operations

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By LUKE ANAMI

Many programmes of the East African Community (EAC) have stalled in the past few months due to a cash crunch blamed on non-remittance of dues amounting to about $40 million by partner States.

By press time, some of the regional body’s workers were yet to be paid their May 2024 salaries, and a number of organs and institutions had suspended their activities due to lack of budget.

The East African Court of Justice (EACJ), the region’s legal watchdog, announced that it was suspending sessions due to financial constraints.

Read more  here

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Tanzania: Why Private Sector Credit Grows At Decreasing Rate

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TANZANIA — THE private sector credit growth has been growing at a decreasing rate since quarter four last year, but still remained in the Bank of Tanzania (BoT) targets.

The latest monthly economic report of the Bank of Tanzania (BoT) shows that credit growth to the private sector slowed to 16.6 per cent in the year ending April compared to 22.9 per cent posted in the corresponding period last year.

According to the central bank report, private sector credit growth started a downward trend in September last year (21 per cent) to April this year (16.6 per cent).

The Head, Research & Financial Analytics at Alpha Capital said yesterday that the private sector credit growth is still growing, rather at a decreasing rate, averaging 17 per cent in quarter one this year from 23 per cent in quarter three last year, as per the Monetary Policy Report by the BoT.

The slowdown in private sector credit growth has been in line with monetary policy implementation, gauging the growth towards a set target of 16.4 per cent, according to the Monetary Policy Statement published in February 2024.

Private sector credit growth and aggregate money supply growth have remained above target for the last two years, prompting the central bank to adopt the less accommodative policy in 2022.

The policy was finally abandoned in the end of 2023 as growth of money supply approached within the central bank’s target, albeit remained slightly afloat.

Vertex International Securities Research and Analytics Manager Beatus Mlingi said the BoT’s economic reviews from January to April 2024, highlight a concerning trend of declining credit to the private sector.

Several factors contribute to this decline, each with significant implications to the Tanzania’s economy.

One primary reason for the reduction in credit is the tightening of monetary policy by the BoT.

To control inflation, the central bank decided to increase the Central Bank Rate from 5 per cent in the first quarter of this year to 6 per cent in the second quarter.

This increase in interest rates makes borrowing more expensive, thereby reducing the demand for credit among private sector businesses.

As a result, companies find it more challenging to secure the funds needed for expansion and operations.

Another contributing factor is the increased risk aversion among banks, particularly tier 2 and lower-tier banks.

Rising non-performing loans (NPLs) have led these banks to adopt stricter lending criteria.

When banks perceive lending to the private sector as riskier, especially in uncertain economic conditions, they become more cautious, further restricting credit availability.

Additionally, new regulatory measures aimed at improving the banking sector’s stability might inadvertently tighten credit conditions.

The BoT’s risk assessment parameters for banks can constrain their ability to lend, as they must adhere to stricter regulatory requirements to maintain stability.

The implications of this decline in credit availability for Tanzania’s economy are significant.

Reduced credit hampers business expansion and investment, leading to slower economic growth. The private sector, which is a crucial driver of economic activity, relies heavily on credit for capital expenditures and operational funding.

Without adequate credit, businesses may cut back on hiring or even lay off employees to manage costs, leading to higher unemployment rates and reduced household incomes.

Furthermore, financial constraints on businesses can lead to a decline in consumer confidence, resulting in lower consumer spending.

This reduction in spending can further slowdown economic activity, creating a negative feedback loop that exacerbates economic challenges.

Long-term investments in infrastructure, technology and other productive assets may also be postponed or canceled, reducing the economy’s productive capacity and growth potential.

An economist-cum-investment banker, Dr Hildebrand Shayo said yesterday that some commercial lenders have funded mega and long term projects which take long time to start operations.

“Some commercial lenders have been financing mega projects which take a long time to commence production thus causing delays in loan payment,” he noted.

Dr Shayo said that some private sector players implementing government projects have been experiencing payment delays thus destabilising liquidity stance of the lenders.

He said also the considerable part of the non-performing loans that most commercial lenders are experiencing is from the private sector players.

Source: allafrica.com

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Tanzania Digital Inclusion Project Wins Global Award

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In: Tanzania Foreign Investment News

DAR ES SALAAM — THE Tanzania Digital Inclusion Project (TADIP) has excelled at the recently concluded World Summit on Information Society (WSIS 2024 PRIZES) held in Geneva, Switzerland.

Implemented by the Internet Society Tanzania Chapter (ISOC-TZ) in Kigamboni District, Dar es Salaam, the project recorded victory in the category of Access to Information and Knowledge.

The award was received by ISOC-TZ president Nazar Kirama, who was accompanied by Minister for Information, Communication and Information Technology, Mr Nape Nnauye.

Mr Nape thanked Tanzanians for their cooperation and vowed that no Tanzanians would be left behind in digital inclusion. Mr Kirama expressed happiness for winning the award, stating that it was a positive gesture towards the digital inclusion journey.

“I am thankful to receive this award alongside the responsible minister. It is my hope that Tanzania will continue to improve in digital inclusion,” Mr Kirama stated.

Explaining about the competition, Mr Kirama mentioned that their project was among 1,049 projects from different countries that entered the competition in the first round.

After screening, 369 projects proceeded to the second and final round, in which the Tanzanian project was among them.

According to Mr Kirama, during the summit’s climax on Tuesday this week, their project was declared the winner in the ‘Access to Information and Knowledge’ category.

The TADIP, initiated in 2020, is a 10-year project aimed at closing the digital divide in Tanzania by connecting the unconnected and underserved citizens in rural and urban centres. The project will connect 32.44 million people and train 6 million youths and women on digital literacy.

It is envisioned that 1,500 WiFi School InfoHubs, 262,260 WiFi Community InfoHubs, and 12,437 WiFi Super InfoHubs will be established throughout Tanzania to connect the unconnected millions.

The WiFi Super InfoHubs will also include a Climate Monitoring Focal Point (CCM-FP), involving students and youths in measuring things like carbon emission levels and air quality. Recently, Minister Nape made significant announcements shedding light on Tanzania’s vision for digital transformation and its role in shaping a sustainable and inclusive future.

He emphasised the transformative power of digital technology and the commitment to leveraging it for the benefit of all citizens.

The Minister stressed the importance of integrating digital solutions into key sectors such as education, healthcare, agriculture and governance to enhance efficiency, transparency and accessibility.

One of the key announcements made by the Minister was the government’s ambitious Vision 2025, aiming to position the country as a digital leader on the global stage.

This comprehensive vision includes strategic initiatives to improve digital infrastructure, promote innovation and entrepreneurship, enhance digital literacy, and ensure the availability of affordable and reliable internet connectivity nationwide.

Mr Nape emphasised the need to bridge the digital divide, recognising that access to digital tools and connectivity is essential for individuals and communities to fully participate in the digital economy.

The project is at aimed higher-connecting citizens to meaningful internet, creating community network innovation hubs, providing digital skills, digital adult education, e-learning skills for teachers and STEM trainings for girls to reduce digital gender gap.

Source: allafrica.com

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