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East Africa

 
File photo 
 
Traders use web of corruption to smuggle endangered tree logs out of Tanzania. Chinese traders are expediting deforestation in Tanzania through illegal rosewood trade to feed a lucrative furniture market in Asia.

Rosewood is a rare raw material known for its medicinal role and luxury upholstery. While its bark cures ailments, the tree’s real value lies in its wood, whose value rises when crafted into furniture.

Despite efforts to curb deforestation, illegal logging of rosewood is going on unabated, background interviews suggest.

A rising demand for rosewood in China has apparently fostered a web of corruption across the forestry sector, drawing millions of dollars out of the country’s economy, local researchers said.

Although Tanzania’s authorities prevent deforestation, illegal traffickers often bribe local officials to smuggle the logs outside the country.

Gaudence Tarimo, forest officer in Rufiji district where the illegal timber business is rife, said the government is determined to dismantle the illegal network

“We are trying our very best to dismantle this vicious network of loggers who not only deplete our forests but also cause revenue loss,” Tarimo said.

- 'Simply not true'

Xin Li, a Chinese timber dealer whose company exports logs, dismissed the allegations saying they are not targeting specific tree species when exporting logs.

“We are authorized to transport logs, we have all the permits. Our business is legal,” she said.

Over 1.2 million logs of the endangered tree species worth $257 million were reportedly smuggled out of Tanzania in 2019, according to Journalist Environmental Team (JET), a local non- profit tracking forest degradation.

According to JET, foreign traffickers discreetly enter into Tanzania and illegally harvest logs of rosewood, which are then smuggled out to Asia.

“The traffickers know every trick to dodge the authorities, such as using fake permits to get the contraband out of the country,” said Johnson Mwambo, a local researcher working for JET

JET reports that this illicit practice is responsible for huge destruction of endangered forests and the loss of government’s revenue.

Tanzania loses approximately 430,000 hectares (1,062,553 acres) of forest every year to deforestation, according the United Nations Food and Agriculture Organization.

- Loophole for graft

Mbwambo said loopholes within existing laws coupled with corrupt officials and local community leaders in Rufiji have fostered China’s quest for endangered forests.

JET learned from a rosewood trader that it takes little effort to pacify a web of corruption and get the logs out of the country.

“Local officials get enough money which they share among one another to offset the risk,” Mbwambo said.

According to a 2018 report published by Forest Trends -- a Washington-based non-profit organization with a mission to conserve forests and other ecosystems, rosewood imports to China increased substantially in the past two decades and were worth approximately $2.6 billion between 2013 and 2014.

The illicit rosewood is transported to China where its hard red interior is used in making luxurious furniture, including beds.

A 40-year-old wood cutter, Daudi Kiziga told Anadolu Agency that he was approached by a Tanzanian wood businessman who offered him 23,000 Tanzanian shillings ($10) for every 2-meter piece of rosewood he could bring.

“I couldn't resist the temptation of getting easy money, I delivered the work and got paid about 345,000 Tanzanian shillings ($150),” he said.

- Widespread phenomenon

For the past decade, a legion of young people from the impoverished region have been hiding in the dense forests to work as loggers, a job that pays well by local standards, residents said.

The illegal logging of rosewood has become widespread in southern Tanzania regions with visible effects such as loss of vegetation cover, large scale forest degradation, increase in temperature, loss of biodiversity and low crop yields.

“They cut big trees to make logs, they use rafts made from other trees to slide the big log into nearby water ways ready to be transported,” said Mariam Osward, a resident of Rufiji. Source: Yeni Safak

  • Deputy President William Ruto at Kasarani Stadium during the launch of the Kenya Kwanza manifesto on Thursday, June 30, 2022
    DP RUTO TWITTER 
  • Deputy President William Ruto has named individuals he accuses of inciting Kenyans ahead of the Tuesday, August 9 elections. Speaking at his Karen office on Thursday, August 4, Ruto claimed that a section of journalists working for Kameme FM and Inooro TV were publicly inciting members of the public even as the country heads to the polls.

    He also accused the Directorate of Criminal Investigations boss, George Kinoti, of propagating a narrative that could see the country descending into chaos.

    UDA presidential candidate William Ruto speaking during a rally in Kesses, Uasin Gishu on Monday, July 25, 2022..jpg
    UDA presidential candidate William Ruto speaking during a rally in Kesses, Uasin Gishu on Monday, July 25, 2022. DPPS
     

    Ruto, who is seeking to succeed his boss, President Uhuru Kenyatta, also named Rift Valley Regional Commissioner, Maalim Mohammed, Trans Nzoia County Commissioner Samson Ojwang, Uasin Gishu's Stephen Kihara and Esustus Mbui of Nakuru, as perpetrators of incitement and hate messages in the country.

    "They are part of this scheme. They are the people holding night meetings to orchestrate and plan conflict among Kenyans and unfortunately, the President of Kenya is aware," Ruto claimed. 

    The Deputy President claimed that the administrators and law enforcement officers were threatened that they would lose their jobs in the event they do not ensure victory for Azimio la Umoja's Raila Odinga.

    He also accused Uhuru of working against him and threatening government officials.

    "We are concerned about meetings which are being done in dark places to orchestrate what is not good for Kenya. The President met people in Nakuru and what is emerging from those meetings is the leaflets you see."

    Upon being accused by the DP, lnooro TV - which was streaming the presser live - cut off the feed immediately.

    The DP also brought to the attention of the Independent Electoral and Boundaries Commission (IEBC) an edited clip circulated by Suna East Member of Parliament, Junet Mohamed, and Mombasa governor, Hassan Ali Joho, allegedly showing his spewing hate speech.

    He complained about the sluggishness nature in which the matter was being dealt with given that neither the Commission nor the investigative agencies looked into the clip that went viral. 

    Ruto further alleged that the government was undermining the freedom of assembly and association of the Kenya Kwanza supporters by denying them access to the Bukhungu Stadium. He also revealed that they were forced to cancel their rally in Mombasa today.

    "Today we are supposed to hold a meeting at Tononoka Grounds and some people are trying to use the police to block us. The excuse they are giving us is that the President is in Mombasa," the DP stated.

    The United Democratic Alliance (UDA) presidential flagbearer further stated that despite the push and pull between his party and Sports Kenya, he would still go ahead and hold his final rally at Nyayo Stadium on August 6.

    Meanwhile, the High Court on Thursday, August 4, suspended orders by Sports Kenya that blocked the use and availability of Nyayo Stadium for Kenya Kwanza’s final campaign rally.

     
    Deputy William Ruto and Kakamega Senator Cleophas Malala take a selfie atop a vehicle in Kakamega County on Sunday, July 31, 2022.
    Deputy William Ruto and Kakamega Senator Cleophas Malala take a selfie atop a vehicle in Kakamega County on Sunday, July 31, 2022. WILLIAM RUTO,   By PAUL KURGATKenyans.co.ke
Kenyan High Commissioner to Rwanda Philip Mundai Githiora. Photo: File.
 

Kenyan High Commissioner to Rwanda, Philip Mundai Githiora, has re-assured Rwandans, especially the business community, that the upcoming presidential elections will not interfere with the trade flow from Kenya to Rwanda and vice-versa. 

The Kenyan port of Mombasa is one of the major trade routes for Rwanda, linking the country to the sea. In an exclusive interview with The New Times, Githiora assured traders that his country learned from the past and measures have been put in place to ensure free flow of trade along the Northern Corridor. 

“Today, there is political maturity and over the course of years, Kenya has built seamless systems that are hinged on regional integration and as a result, trade has taken a centre stage. These are reasons why trade won’t be interrupted,” he said. 

Kenyans will go to polls on August 9 to among other leaders elect a new president that will replace the incumbent Uhuru Kenyatta who has served up his two terms. During the post-election violence that occurred after the 2007 elections in Kenya, goods transiting through the Northern Corridor worth $47.5 million were lost in the violence, and owners are still awaiting compensation.

The Mombasa port serves different countries in the region including Rwanda, Uganda, DR Congo, Burundi, and South Sudan, which underscores Kenya’s significance in regional trade.

“Trade has become the center of the East African Community, in fact, the last four times the presidents of Kenya and Rwanda met in this year alone, their conversations always carried an element of trade. It shows how trade is a pivot of the region. I can assure traders that their businesses won’t be interrupted by the upcoming elections,” said Githiora.

Rwanda-Kenya trade

The envoy went on to detail in numbers how the two countries have been trading with each other over the course of years saying that since 2000, Rwanda Development Board recorded 55 Kenyan investors ploughing roughly $400 million into Rwanda while other Kenyan investors have at various points helped Rwanda mobilise close to $1 billion from external sources over the last 15 years.

According to the Observatory of Economic Complexity (OEC), a leading data visualisation tool for international trade data, during the last 24 years, the exports of Rwanda to Kenya have increased at an annualized rate of 8.15%, from $2.86 million in 1996 to $18.7million in 2020.

The CEO of the East African Business Council, John Bosco Kalisa also told The New Times that in the upcoming Kenyan presidential elections, “there are no indications of violence and truly a lot has changed in the past years. If you read the Kenyan terrain well and how campaigns are going, you can only anticipate a calm environment, that’s why I encourage the business community to carry on with their business.”

The two front-running candidates in the upcoming Kenyan elections are current Deputy President William Ruto and former Prime Minister Raila Odinga.

The other two candidates are George Wajackoyah and David Mwaure. Registered Kenyan voters living in Rwanda will vote from the Kenyan High Commission in Kigali and according to the commission, 1090 will vote from the commission’s office. Edwin Musoni, New Times

 

Public debt has been growing with external debt now valued in the excess of Shs40 trillion ($10.5b). Photo | file

What you need to know:

Government will re-examine ratios of interest payments to tax, interest payments to exports income and debt-to-economic growth balances   

Government is considering changes to future borrowing in the face of mounting pressure to manage debt and repayment, according to Ministry of Finance.  

The changes, according to Ms Maris Wanyera, the Ministry of Finance director for cash and debt policy, will include re-examining ratios of interest payments to tax revenues, interest payments against export earnings and debt-to-economic growth balances. 

“Future borrowing will be biased towards concessional loans and the domestic debt market for purposes of budget support, but we shall not acquire commercial loans for project implementation,” she said.

Debt has been mounting with government last month conceding that it was no longer sustainable. 

However, Finance Minister Matia Kasaija last month said government would continue to borrow unless Ugandans paid more taxes to fund a rise in priority demands. 

Uganda’s debt-to-gross domestic product (GDP) ratio, measured as the level of indebtedness, rose to 54 percent in June from 49.1 percent based on cumulative debt data captured between July 2021 and June 2022. 

Public debt, according to government data, currently stands at Shs73.5 trillion ($19.2b), with external debt valued in excess of Shs40 trillion ($10.5b). 

State Minister for Planning Amos Lugoloobi last month said Covid-19 related borrowing resulted into higher debt levels pushing debt ratio to GDP beyond the threshold of 50 percent.

Therefore, Mr Lugoloobi said, there was need for government to rethink the financing architecture of the National Budget with the view of increasing tax ratio to GDP through focused increase in production and infrastructure, create markets and promote trade.  

“Trade is [one of the least] funded sectors  ... we need to begin planning for trade and markets,” he said.

The East African Community member states are required to maintain a maximum debt to GDP ratio of 50 percent in line with monetary union convergence targets approved in 2013.

It is a benchmark also adopted by the International Monetary Fund.

The latest increment in public debt also points to short-lived opportunities realised from previous economic rebasing exercises - an undertaking to revalue the size of an economy, growth benchmarks plus adjustments in key economic performance indicators such as debt to GDP and tax to GDP ratios.

Uganda’s pioneer economic rebasing exercise was done in 2012 and was followed by another in 2019. 

Data from the 2019 economic rebasing showed the value of Uganda’s economy had grown to Shs137 trillion ($35.8b) while tax-to-GDP ratio had dropped from 13 percent to around 12 percent.

The size of Uganda’s economy grew from Shs148 trillion ($38.7b) in the 2020/21 financial year to Shs162 trillion ($42.4b) in 2021/22.

Findings from the two economic rebasing exercises yielded a debt-to-GDP ratio of 40-50 percent - a scenario that offered technocrats limited space for future borrowing activity.

Latest economic data shows that headline inflation averaged less than five percent during financial year 2021/22 while economic growth stood at 4.6 percent during the same period.

Savings to GDP ratio reached 17 percent by close of 2021/22 while youth unemployment - a leading poverty indicator, was 13 percent in the same period.  

Productive use        

Ms Madina Guloba, the Economic Policy Research Centre senior research fellow at Makerere University, wondered what portion of public debt is put to productive use and the return on investment. 

“Uganda’s economy looks less bankable to lenders because the rate of debt accumulation exceeds the pace of development experienced in this country,” she said. 

“What matters is the motive behind the borrowing. For example, is government borrowing to invest in a new power dam while another that has been under construction for long is yet to generate power,” Ms Mubbale Kabandamawa-Mugalya, an investment manager at Sanlam Investments, said. By The East African

 

Angry residents on Sunday blocked Lokitanyala–Kitale highway in Moroto in northern Uganda for several hours in protest over delayed compensation by the government.

The locals blocked the road at the junction between Tapac trading centre and Kosiroi demanding compensation for the 42-kilometer stretch. Several trucks from the Tororo Cement factory were denied access to the Kosiroi mining site where they ferry limestone. The same road is also used to connect to Amudat district through Looro sub county.

Charles Tokon, a resident of Tapac trading centre says ever since they filled compensation forms early last year, they have not received any response from Uganda National Road Authority (Unra) and yet they promised to compensate them within a period of six months.

"Unra said they would pay us within six months but I’m wondering what is happening because they are not communicating and now we are under pressure because our landlords are demanding money," explained Tokon.

Tokon said they are just tossed around whenever they try to raise the matter before Unra officials. Emmanuel Lorot, another resident, says the delays in payments are going to affect the road construction project because they are not willing to allow the works to continue before they are paid.

Lorot said the roadworks have left their gardens, homes and trees destroyed but Unra is delaying giving them the money that they would have used for constructing somewhere else. Robert Lomongin, whose house was destroyed, urged the government to consider the skyrocketing prices while valuing their property for compensation.

"Prices for building materials have increased and we may not be able to replace our houses, so we hope Unra is considering that too," he added.

John Achia, the Tapac sub-county chief said the affected persons were told to go and rent as they wait for payment which was expected in about six months from December last year. He attributed the delays in compensation to the government processing of finances that requires the system upgrade since it’s a new financial year.

According to him, the affected persons will be paid as soon as the government is done with the issues of accountability. He urged the community to be patient and allow work to continue as they wait for the government's response to their concerns.

Eng Benjamin Enyuku, Unra deputy resident engineer admitted the delays saying they had assured to pay the affected persons within the period of six months but unfortunately some changes have affected the process.
Enyuku says the affected people were asked to provide their details for compensation and everything was approved and only awaiting government action. He said the locals should not worry because the government is ready to pay their money after working on a few

Enyuku said they will be meeting the affected persons this week to have all the concerns addressed amicably to avoid any protests from the community soon. The construction of a new highway linking Moroto to Kenya is being upgraded to bitumen II grade and the contract is an extension of the job done on the Soroti –Katakwi-Moroto road section at a total amount of Shs 646.8 billion. - URN/The Observer

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