An estimated US$ 600 million in revenue and close to half a million jobs at stake
Failure by the Partner States to remit their contributions in time has left the East Africa Community (EAC) struggling to meet its financial needs. The Secretariat has now resorted to cost-cutting measures as is wades into a murky future.
Improved property registration, electricity connection and access to credit push Kenya up in ease of doing business
By Bonface Otieno Kanyamwaya
Kenya has moved up 16 places in the World Bank’s ease of doing business ranking. Kenya is ranked position 92 from position out of 189 countries making it the third most improved economy.
This is also the first time in seven years Kenya has appeared among the top 100since 2009, when it was ranked position 82.
The report, titled ‘Equal Opportunities for All,’ shows Kenya’s improvement was largely helped by implementation of regulatory reforms in resolving solvency, starting a business, protecting minority investors and getting electricity. The country also performed well in dealing with construction permits, trading across borders and registering property.
According to the report titled ‘Equal Opportunities for All’, the period taken for business to be connected to electricity has reduced 110 days down from 145 last year while the country improved to position 28 in ease of accessing credit from 116 last year.
On the other hand, property registration now takes 61 days from 72 last year.
“This is a marathon and we will not be complacent until we attain position 50 by 2020,” said Industrialization Cabinet Secretary Adan Mohammed while welcoming the result of the report.
“While we celebrate this significant progress, the work has just begun and our goal is to be among the top 50 destinations globally in doing business,” said Deputy President William Ruto while gracing the report’s release in Nairobi.
The index which measured 190 economies worldwide ranked New Zealand the best overall. Singapore slipped to second in the report after topping the ranking for a decade. Macedonia, which placed 92nd a decade ago, improved two spots from a year earlier to position 10.
Closer home, Rwanda ranked 56 from last year’s 59-maintaining the title of second best country in Africa after Mauritius which is ranked 49th the easiest place to start a business in the region. Uganda ranked at position 115 from last year’s 122, while Tanzania moved to position 132 from 144 last year.
Troubled by civil strife, Burundi ranked at 157. South Sudan, another East African country dogged by incessant conflict, was ranked at 186, four places short of being the worst performing country in the world. At 190, Somalia which is still suffering in war, terrorism and fledging government is ranked as the worst country to start a business in the world.
The Kenyan government is keen on strengthening its bilateral relations with Turkey at the on-going Turkey-Africa Economic and Business Forum (TABEF 2016), in Istanbul.
A delegation of over one hundred (100) strong Kenyan companies is already present in Turkey to reinforce the Government’s commitment to grow trade and investments between the two countries.
While at the forum, the delegation will make the two-day trip to meet Turkey’s local authorities at the highest level with the aim of fostering relationships and exploring opportunities for business and investment.
This comes hot on the heels of Turkey and Kenya’s commitment to raise the volume of trade from US$144 million to $1billion a year, a commitment made during Turkish President Recep Tayyip Erdogan visit to Kenya in June this year where the two countries formed a Joint Economic Commission to deepen economic cooperation.
Leading the Kenyan delegation at the forum, Ministry of Industry, Trade and Cooperatives Cabinet Secretary Mr. Adan Mohamed said Turkey provides potential opportunities for Kenya to amplify its global positioning on matters trade and investment. “Turkey is an important market for Kenya, with huge potential that has been under-utilized over the years and we expect to grow trade volumes ten-fold over the current kes.14 billion during this medium term,” said CS Mohamed.
Turkey’s exports to Kenya in 2015 totalled more than $130 million. The top five export categories for 2015 were hygienic products, some motor vehicle parts and tractors. Turkey imported goods from Kenya worth more than $10 million, ranging from coffee to crude animal and vegetables.
While commenting on the Forum’s agenda, the Cabinet Secretary noted that trade and investment continues to play a vital role in Africa’s economic growth performance and it has potential to promote trade-induced industrialisation on the continent.
And added: “Turkey’s bilateral trade volume with Africa has reached 17.5 billion in USD in 2015. This is a three-fold increase in volume compared to the records of 2003. Trade volume with sub-Saharan Africa was realised at 6 billion USD level in 2015. This was a significant drop and I hope that through this platform the trade volumes will increase to surpass what was achieved in 2015,” concluded Mr. Mohamed.
The Turkey –Africa Economic Business Forum is being held under the auspices of H.E. Recep Tayyip Erdogan, President of the Republic of Turkey. It brings together over 1500 delegates from the African continent, keen to do business with Turkey.
The two-day forum which begun today is jointly organised by the Ministry of Economy of the Republic of Turkey, African Union (AU), the Foreign Economic Relations Board (DEIK) and Turkish Exporters Assembly (TIM).
The focus of the Forum is “Financing African Investment Projects: Infrastructure, Transportation and Energy.” The Forum is a unique platform for the high level officials, decision makers, business organizations, economic communities and other participants from Africa and Turkey to discuss the challenges and immediate opportunities, establish relationships with the public and private operators, and demonstrate their expertise and business.
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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
The government of Rwanda through the Ministry of Trade and Industry, on Friday launched a new committee that will advise and support the government in undertaking interventions geared towards business competitiveness. The National Trade Facilitation Committee (NTFC) will ensure that institutions and all stakeholders responsible for controls and procedures related to importation, exportation and transit of goods work together and coordinate trade related activities.
NTFC brings together the Private sector, civil society and Public sector representatives as well as trade related service suppliers to discuss issues of trade and trade related policies or measures and agree on better approaches to reform, improve and learn from experiences.
The committee whose launch was in line with the provisions of the Trade Facilitation Agreement (TFA) will be chaired by the Permanent Secretary of the Ministry of Trade and Industry. It is set to play a leading role in developing Rwanda’s road map for the implementation of the trade facilitation agenda along the provisions of TFA and will be instrumental in synergizing trade facilitation perspectives across the country including outreach programme to sensitize stakeholders. It will also monitor and evaluate the performance of Trade Facilitation in Rwanda.
Speaking during the launch, the Minister of Trade and Industry, Honorable Kanimba François said, “Rwandan government is committed to resolving challenges faced by exporters and importers on a daily basis especially burdensome procedures, time consuming processes in export and import, delays at the borders. The newly formed committee will assist in fast tracking and advising on interventions that will create fast, reliable and cost effective trade environment for all.”
Rwanda has been a champion for trade reforms and has already implemented a number of trade facilitation interventions. The interventions have been cited by the Doing business report of the World Bank as key contributors to improving Rwanda’s ranking in ease of doing business index. Rwanda is today ranked among the top 3 African easiest places to do business in 2015 by the World Bank Doing Business Report, 2015. The report also ranked the East African Nation at position 46th out of 189 countries from 143 in 2008 globally.
“One of the key areas we are looking to support the NTFC in is development of an implementation plan and project proposals of new bankable projects that will bridge identified gaps for Rwanda to comply with its obligations under the WTO Trade Facilitation Agreement,” says Patience Mutesi Trade Mark East Africa Country Director,
“A key area that we are looking to for example is the developments of trade information portals that will enable availability of information to the public and any potential investor into Rwanda,” she added.