President Kenyatta and Prime Minister Desalegn agree to remove hurdles that have limited business in the past.
Thursday June 23 2016
Deal with Ethiopia expected to ease trade
President Uhuru Kenyatta and Ethiopia’s Prime Minister Hailemariam Desalegn at a press conference at State House in Nairobi on June 23, 2016. PHOTO | PSCU
In Summary
In a renewed bid to open up their borders and facilitate investment and trade, President Uhuru Kenyatta and Ethiopia’s Prime Minister Hailemariam Desalegn agreed to remove hurdles that have traditionally limited business.
This means nationals of both countries will enjoy relaxed rules on residence for investors and entrepreneurs, easier application procedures for Kenyan companies seeking to invest in Ethiopia, as well as relaxed work permits for expatriates from both sides.
By AGGREY MUTAMBO
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Kenyan investors and expatriates venturing into Ethiopia should expect less restrictions to their business once an agreement signed by the two countries is implemented.
In a renewed bid to open up their borders and facilitate investment and trade, President Uhuru Kenyatta and Ethiopia’s Prime Minister Hailemariam Desalegn agreed to remove hurdles that have traditionally limited business.
This means nationals of both countries will enjoy relaxed rules on residence for investors and entrepreneurs, easier application procedures for Kenyan companies seeking to invest in Ethiopia, as well as relaxed work permits for expatriates from both sides.
A statement released on Thursday after the two leaders met at State House in Nairobi says they are willing to “elevate the economic relations between the two nations through signing the historic Special Status Agreement”.
The deal, signed in November 2012, was meant to offer a framework for engagement from both sides to enhance economic and commercial relations.
At the time, focus was on developing textiles, agriculture and raw materials.
On Thursday, a statement read by Foreign Affairs Cabinet Secretary Amina Mohamed said the Joint Ministerial Cooperation Commission of the two countries had agreed to take on board the private sector, which has the largest pool of money to invest.
“The session recognised the role of the private sector in enhancing trade and investment between the two countries,” she said at State House.
The Kenya National Chamber of Commerce and Industry and the Ethiopian Chamber of Commerce and Sectoral Association yesterday signed an agreement to provide guidelines through which firms in Kenya and Ethiopia can engage.
And the leaders announced they had agreed on the construction of key oil pipelines.
One line will link Nakuru-Isiolo-Moyale-Hawassa-Addis, and another Lamu-Isiolo-Moyale-Hawassa.
The date when the project will start will be announced at the end of the year.
This means the Lamu Port- South Sudan-Ethiopia Transport (Lapsset) corridor project, launched in 2012, is still on, at least because two of the founders Ethiopia and Kenya continue to say so.
Yesterday, President Kenyatta told reporters that the construction of Lapsset-related facilities will be fast-tracked.
The facilities include roads linking the two countries, an international airport in Isiolo and a port in Lamu.
Kenya had been left out in the cold after two partners Uganda and Rwanda announced a change of heart on transport projects.
Uganda chose to use Tanzania for its pipeline route while Rwanda announced it would opt for Tanzania, too, for its standard gauge railway.
Both countries had argued it would be expensive to make their facilities pass through Kenya, which also could not guarantee security for them.
Kenya signs infrastructure MoUs with Ethiopia including a pipeline deal
Source – Daily Nation (Kenya)
Kenya and Ethiopia sign oil pipeline deal as they commit to enhance ties
By Roselyne Obala
Fri, June 24th 2016 at 00:00 GMT +3
Kenya signs oil pipeline pact with Ethiopia after Uganda snub
President Uhuru Kenyatta and Ethiopian Prime Minister Hailemariam Desalegn address a joint press conference following bilateral talks at State House, Nairobi, June 23, 2016. Photo/PSCU
President Uhuru Kenyatta and Ethiopian Prime Minister Hailemariam Desalegn signed the pact during bilateral talks at State House, Nairobi, on Thursday.
At a joint press conference that followed the talks, Uhuru said Kenya is working closely with Ethiopia on the Lapsset project.
Kenya intended to build the pipeline with Uganda but President Yoweri Museveni opted for an agreement with Tanzania.
Uganda changed tack in March saying it was planning a pipeline from Hoima to Tanga on Tanzania’s coast, prompting a last-minute push by Kenya for another switch.
Read: Kenya to go solo on oil pipeline, Uhuru and Museveni decide
Kenya and Ethiopia agreed to strengthen their strategic alliance. They celebrated successes in cross-border security through a Joint Borders Administrators Framework, set up to address anti-peace elements.
“We are both committed to actualising the provisions of the sustainable peace agreement we signed last year, which will reduce the vulnerabilities faced by border communities,” Uhuru said.
The two countries have also been working together to stabilise and bring peace to Somalia and the region.
“Today provided an opportunity for us to affirm, deepen and expand our historical partnership,” the President said.
He thanked the PM for his goodwill saying several projects have brought citizens together and opened up opportunities for them.
Kenya and Ethiopia’s relations will be strengthened further through a pact for closer cooperation in sports that will see a Kenya-Ethiopia marathon.
Hailemariam said Ethiopia considers Kenya a strategic partner and a natural friend given the similarities between the two countries.
He said Kenya and Ethiopia are key to the stability of the region and Africa.
“Kenya and Ethiopia are the pillars of the region and we have to work together to stabilise the region,” he said.
“The African continent expects leadership from Kenya and Ethiopia,” the PM said, adding the two will become forces to be reckoned with if they strengthen their ties.
DP William Ruto and Kenyan and Ethiopian cabinet ministers were present.
Kenyan Foreign Affairs CS Amina Mohamed read a joint communiqué before the leaders addressed the press.
It contained measures to strengthen the countries’ relationship. Amina and her Ethiopian counterpart Tedros Adhanom have been discussing ways to operationalise agreements between the two countries.
Several other bilateral agreements were signed, including ones on oil and gas, health, sports, cross border cooperation in animal health and sanitary measures, and education.
Uhuru and Hailemariam will later attend a Kenya-Ethiopia Business Forum at the Hotel Intercontinental.
The President and First Lady Margaret Kenyatta will tonight host a a state banquet in honour of the visiting Prime Minister and
Source – The Star, Kenya.
Kenya signs oil pipeline deal with Ethiopia
By NEVILLE OTUKI
Posted Thursday, June 23 2016 at 16:35
In Summary
- President Uhuru Kenyatta made the pact with Ethiopian Prime Minister Hailemariam Desalegn in Nairobi as part of joint infrastructure projects to integrate the region under the Lamu Port-Southern Sudan -Ethiopia Transport (Lapsset) corridor.
Kenya has inked a deal with Ethiopia to construct a crude oil pipeline to run from the coastal town of Lamu to Addis Ababa months after Uganda chose to export her oil through Tanzania
President Uhuru Kenyatta made the pact with Ethiopian Prime Minister Hailemariam Desalegn in Nairobi as part of joint infrastructure projects to integrate the region under the Lamu Port-Southern Sudan -Ethiopia Transport (Lapsset) corridor.
Ethiopia is eyeing gas production and exportation starting next year following discoveries.
“The two leaders witnessed the signing of bilateral agreements including a pact on the oil pipeline that will run from Lamu to Addis Ababa under the Lapsset project,” a statement from State House said.
Uganda had initially expressed interest for a joint pipeline with Kenya but later opted to take its oil to overseas markets through Tanzania’s Tanga port.
Kenya is set to start construction of the $2.1 billion crude oil pipeline to be completed in 2021, according to Ministry of Energy and Petroleum.
Overall, Kenya and Ethiopia entered into five pacts, including cooperation in sports, cross-border livestock, health and education.
Source – The East African