New system has brought new life into a once ailing transport system
Tullah Stephen
In the last few years, the desire by foreign investors to come to Africa has been growing. The continent has witnessed a number of international investors announce their intentions to invest in the continent. But even as this happens, trade among African countries is still low.
Barriers to trade continue to limit the growth of trade throughout African regional blocs. Trade barriers such as high tariffs on imports and unnecessary costs on exports have raised consumer prices, undermined predictability of the trade regime, and reduced investment in the region.
The East African Business Time’s Tullah Stephen caught up with Sindisio Ngwenya, the Secretary General of Common Market of East and Central Africa (COMESA), during the 2016 Global African Investment Summit held in Kigali, Rwanda, to talk about the proposed Tripartite Free Trade Area (TFTA) and more. Excerpt:
One of the key things that came up from the panel discussion is the low intra-African trade. What effects does this have on the region’s economy?
Mr Ngwenya: It is true that African nations trade very little among themselves. This low level of trade has made the continent less attractive to investors as well as led to sluggish development of businesses in the countries. Africa is the least economically integrated region in the world, as measured by intra-regional trade flows. Trade between African countries, as a share of the continent’s total trade has hovered at 10 per cent for decades; the proportion in Europe and Asia, by contrast, is close to 60 per cent.
One of the recommendations that came up during the summit is establishment of a TFTA. What is it all about?
Mr Ngwenya: TFTA was proposed in Kampala in 2008 and is basically a consolidation of three of the continents major economic communities. The Southern African Development Community (SADC), the East African Community (EAC) and COMESA. The main aim of bringing these blocs together is to promote development through increased economic integration among countries in the North East and South Africa.
How will TFTA agreement impact intra-regional trade in Africa?
Mr Ngwenya: The market itself has a combined population of over 625 million people and a combined GDP of US$1.3 trillion as a whole this makes the region more attractive to investors. The establishment will no doubt boost the regions competitiveness as in this arrangement, countries will work in a complimentary nature as compared to negative competition which has been the case. The new bloc will have trade values worth more than US$50 billion.
Market integration on the other hand will also remove trade barriers between the countries covered by the agreement. Integration will also make it easier for labor to cross borders and will enable population Africa’s to work together more easily, beyond the limitations of borders and political systems.
African countries’ tendencies to trade more with non-African countries have had serious ramifications for continental integration and for continental economic development.
The TFTA also promotes regional connectivity in terms of transport, energy, ICT and physical infrastructure, which will reduce the costs of doing business and trading for all companies operating in the area. Being able take advantage of regional industrial supply chains will mean that costs incurred by companies will come down even further. Increased integration will also lead to greater efficiency in terms of moving products and services across borders.
Are there blocs that are not participating in this agreement?
Mr Ngwenya: Yes. Some of the non-participating blocs include Arab Maghreb, Economic Community of West African States, Community of Central African States and the Community of Sahel-Saharan States. But I am hopeful that with time they will come on board. They are still having discussions among themselves and I have no doubt they understand the importance of coming together.
There are fears among some African countries that being part of a larger bloc will stifle their local industries due to competition from imports. Is this a genuine concern?
Mr Ngwenya: There should be no reason for concern. To protect our local industries, the bloc can adapt a common external tariff that will ensure local industries in the various member countries remain competitive.
What would you say is the greatest challenge going forward?
Mr Ngwenya: The next huddle is to implement the agreement. With other agreements implementation has been the issue. With the correct political will it will be a success.
What would be your final words for businesses and government in Africa?
Mr Ngwenya: I would urge them that rather than look for markets and trade partners outside the continent, the countries will find more value and better terms by ratifying and implementing the free trade area agreement.
By Architect Edward Mugo
Who knew that rearranging your child’s room could help boost his success? Or that adding some greenery to the office could make you more productive?
A 2012 study by a UK-based design firm IBI Nightingale, conducted jointly with the University of Salford, has found that a school’s physical design can improve or worsen children’s academic performance by as much as 25 per cent in early years.
Although there is near consensus on the relationship between housing quality and psychological distress, planners and property stakeholders have failed to address this problem in a holistic manner.
In many parts of Nairobi it may be already too late to change this very stressful urban fabric. This has forced many urban dwellers to reduce stress by over drinking, getting hooked on drugs, domestic violence and other deviant behaviour. We always realise when schools close how unfriendly our environment is and this is why there has been a proliferation of holiday camps for sports, religion, mentoring, cooking, to name a few. We are scared of our kids running around our estates as it is no longer safe for them.
Great teachers, stable families and a school’s location have long been said to be key to student success. New studies suggest that a school’s physical design can improve or worsen children’s academic performance by as much as 25 per cent in early years.
Schools with leaking roofs, mouldy walls and dangling ceiling tiles can cause significant levels of stress and therefore impact learning to the tune of 25 per cent, especially in the early years.
We are also witnessing high stress levels at the work place, with many employees suffering from anxiety or depression. Sitting on a desk the whole day can literally kill you!
The World Health Organisation (WHO) now lists inactivity as the fourth-biggest killer of adults, but what does our architecture and space planning do to us? Does it heal or exacerbate the problem?
Making an office work for your employees through natural light, proper aeration and temperature, good facilities, colour and greenery can boost the productivity at the work place.
Poor office lighting is a stress-inducing factor. Choosing the “right” light is extremely important when considering an individual’s well-being. For example, when we are exposed to areas which are either too harsh or too dimly lit, lack of creativity may arise and we could be prone to headaches and confusion. Different lighting requirements might be appropriated for different work activities, job functions and individual requirements. It is important that your office designer or architect gets the lighting levels correctly. Both natural daylight systems and indirect lighting systems not only reduce electrical energy consumption but also create a more pleasant office environment by providing glare free and natural lighting.
Break out areas for staff should also be designed with more space and a variety of seating options. Being social areas, they should be designed with more colour and vitality.
The idea is to create indoor space that does not look like an office and is a fun place. It does not need to be expensive and can incorporate – flower vases, beanbags, creative partitions and simple paintwork.
How to fix the mess
On paper, most of the estates have part development plans that contain open play areas. Unfortunately, many home spatial qualities have deteriorated to an alarming degree. This is witnessed throughout the various social classes, for example the congested flats in Eastlands , Githurai , Rongai Kilimani , Westands , and Kileleshwa, all of which have minimal urban open space to play and relax.
These strategic spaces have either been grabbed and user changed or overgrown with weeds, grass, garbage, or even converted to become the local garage or kiosk haven.
The problem is in the policing of policy. Who ensures that developers provided sufficient play area in urban developments?
Can we think of partnering with companies that can develop commercial facilities, say members club, sports club on say 25 per cent of the land and that can commit to maintain the remaining 75 per cent of the open area for the community on a BOT (Build, Operate and Transfer) model?
It is time we worked to create a different, friendlier and healthier architectural space for the benefit of our well-being.
The writer is the CEO of EDG and Atelier, an architectural firm based in Nairobi. Email: edg@edgatelier.com
Rwanda’s national drone delivery program enables blood transfusion clinics across the Western half of the country.
Lack of adequate transportation, communication and supply chain infrastructure in sub-Saharan Africa hampers access to lifesaving and critical health products. Rwandan government has begun using drones to make life-saving blood deliveries to patients in the most remote parts of the country.
The drones and delivery service built and operated by Zipline, a California-based robotics company has the capacity to make up to 150 on-demand, emergency deliveries per day of life-saving blood to 21 transfusing facilities located in the western half of the country.
In Rwanda, postpartum hemorrhaging is the leading cause of death for pregnant women. Blood requires storage and transport at safe temperatures and spoils quickly. Due to the fact that there are many different blood products and no way to accurately project future needs, transfusion clinics in Rwanda do not keep all the blood they may need in stock.
“Drones are very useful, both commercially and for improving services in the health sector. We are happy to be launching this innovative technology and to continue working with partners to develop it further,” said Rwandan President Paul Kagame.
Rwanda’s national drone delivery program enables blood transfusion clinics across the Western half of the country to place emergency orders by cell phone text message. The orders are then received by Zipline at its distribution center located in the country’s Muhanga region where the company maintains a fleet of 15 drones, called Zips.
Each Zip can fly up to 150 km round trip regardless of the weather and carry 1.5kg of blood, which is enough to save a person’s life. Zips take off and land at the distribution center, and make deliveries by descending close to the ground and air dropping medicine to a designated spot called a “mailbox” near the health centers they serve. Zipline will make 50-150 emergency flights a day to 21 transfusion clinics across the Western Half of Rwanda and can fulfill orders in around 30 minutes.
“Drones have the potential to revolutionise the way we reach remote communities with emergency medical supplies. The hours saved delivering blood products or a vaccine for someone who has been exposed to rabies with this technology could make the difference between life and death,” said Dr. Seth Berkley, CEO of Gavi, the Vaccine Alliance.
This project will also act as an important test for whether drones are a viable way to improve targeted vaccine delivery around the world. Every child deserves basic, lifesaving vaccines. This technology could be an important step towards ensuring they get them.”
On his part, Eduardo Martinez, president of The UPS Foundation and chief diversity and inclusion officer at UPS said one of the most important focus areas for The UPS Foundation is to spark public-private partnerships that create powerful scale and drive demonstrable impact in support of global humanitarian aid and relief.
Rwanda plans to expand Zipline’s drone delivery service to the Eastern half of the country in early 2017, putting almost every one of the country’s 11 million citizens within reach of instant delivery of lifesaving medicines.
While Rwanda’s dro
ne delivery service will initially focus on blood, an international partnership between UPS, Gavi, the Vaccine Alliance, and Zipline will help the country quickly expand the types of medicines and lifesaving vaccines that can be delivered. UPS has already provided US$1.1 million grant for the study of Rwanda’s blood drone delivery operation with an eye towards helping the country quickly expand the types of medicines and lifesaving vaccines to be delivered.
Over the course of the next year, and with the support of the partnership with UPS and Gavi, Zipline plans to expand drone delivery services to countries across Africa and the Americas. Additionally, Zipline recently announced plans at the White House to expand it service to the United States, where it will serve Indian reservations in Maryland, Nevada, and Washington State.
The healthcare fund offers retirees access to over 200 hospitals locally, as well as oversees for high risk and chronic conditions such as Cancer, High Blood Pressure and Diabetes
By Tullah Stephen
Social security financial services firm Enwealth has partnered with APA Insurance and Apollo Asset Management to design a savings product, Anaya Post-Retirement Health Care Fund that will allow workers to pre-fund their health care insurance upon retirement. With contributions as low as Ksh 2,000 per month, members of the Anaya Post-Retirement Health Care Fund will have access to quality healthcare services from over 200 hospitals locally and overseas.
According to studies by the Retirement Benefits Authority (RBA), medical bills are among the key expense that most retirees living on a lower income find challenging upon retirement. This is compounded by the increasing health expenditure, which had grown to KSh73.2 billion by December 2015. The percentage of admissions for people over 65 stood at 34 per cent in 2013 compared to 25 per cent a decade ago.
According to Enwealth CEO, Mr. Simon Wafubwa, the fund is the best option for workers in the market as it attracts better return, assuring growth for a workers’ hard earned income and at the same time cushioning them from a future filled with high medical bills.
The product is designed with levels of flexibility such as bronze, silver, gold, platinum that allows members choice of benefits class based on affordability and desired level of benefits and is open to both cooperates and individuals and anyone above age 18 years.
Apollo Asset Management will provide Fund Management services whereas APA will provide health insurance solutions at retirement.
“Members that participate in this product will enjoy optimal returns which make it cheaper in terms of funding for the target benefit. Upon retirement, the money will be utilized to pay for medical premiums for covers offered by APA Insurance,” says Ashok Shah CEO Apolo Group.
RBA’s Chief Executive Mr Isaac Odundo welcomed Treasury’s amendments to the law during this year’s budget enabling workers to start saving before retirement. He adds that lack of adequate healthcare is known to cause early death for retirees.
The Anaya Post-Retirement Healthcare Fund will cover all diseases including high-risk pre-existing conditions such as cancer, diabetes, High Blood Pressure, amongst others that are not ordinarily covered by conventional health insurance covers for senior citizens.
By Tullah Stephen
Farmers in Kenya have a reason to smile after the government announced that it had introduced a crop insurance scheme to cushion them from adverse weather conditions. President Uhuru Kenyatta made the announcement on Wednesday when he officiated the official opening of the Agricultural Society of Kenya fair at Jamhuri Grounds. Farmers in Kenya have been suffering from severe shocks such as droughts and floods in the last few years due to unpredictable weather patterns. The scheme is designed to assist farmers to improve their financial resilience to the challenges and adopt improved production processes to help break the poverty cycle of low investment and low returns.
“A thousand farmers in these counties have already benefitted from the premium subsidy at a cost of Sh300 million,” said President Kenyatta, adding that his administration has also introduced livestock insurance, which is being piloted in Turkana, Wajir, Marsabit, Isiolo and Tana River at a cost of Sh152 million. Drought represents the greatest cause of livestock mortality in the Northern Arid and Semi-Arid Lands and through the scheme, the government intends to purchase drought insurance from private insurance companies on behalf of vulnerable pastoralists.
President Kenyatta also disclosed that the insurance scheme was also is being tested in Bungoma, Nakuru and Embu counties. “The results of the two pilot schemes are encouraging. Ultimately, we intend to roll out these schemes to every county,” remarked the president.
He also announced that the government had also purchased more land under irrigation and revitalized older schemes to ensure that farmers in the country have access to regular water supply and hence increase food crops and livestock production. The president also announced that his government was taking measures such as lowering the cost of farm inputs to ensure food security. The government has distributed over 912,920 tons of subsidized fertilizers to 1.5 million farmers and reduced the average cost of fertilizers by half since 2013. Additionally the government also commissioned two fertilizer plants in Eldoret and Nakuru both with a combined production of 500,000 tones.