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Manufacturers want trade barriers addressed to deepen EAC trade

Kenya and Tanzania manufacturers are calling for East African Community (EAC) member states to promptly resolve pending non-tariff barriers to enhance intra-trade within the region. During a trade investment forum held on Thursday hosted by Kenya Association of Manufacturers (KAM) and Confederation of Tanzania Industries (CTI) in Dar Es Salaam, Tanzania, the industry stakeholders called for speedy resolution of non-tariff barriers (NTBs) and the review of the East African Community Common External Tariff (EAC CET). Trade between Kenya and Tanzania has improved in recent years in favour of the latter and is expected to be boosted by renewed talks after a long period of hard stance. “The visit by Her Excellency the President of Tanzania, Samia Suluhu heralded a new dawn, in the relationship between Kenya and Tanzania. Let us take advantage of this enhanced friendship, to resolve outstanding non-trade barriers that hinder trade between the two countries. A win for our community, means prosperity for us all,” said Dan Kazungu, Kenya’s High Commissioner to Tanzania. Kenya’s exports to Tanzania declined from Kshs. 34 billion in 2016 to Kshs. 31.6 billion in 2020 while Tanzania’s exports to Kenya grew from Kshs. 12.6 billion to Kshs. 27.6 billion in 2020. EAC Principal Secretary Dr Kevit Desai, urged traders in the region to embrace the Buy East Africa Build East Africa Initiative in order to enhance regional intra-trade “Through this initiative, governments will be more encouraged, to promote their respective local content. Additionally, it is important that all stakeholders complement each other’s...

Tanzania onboard with EAC Information Portal

Four of the six East African Community (EAC) countries now have fully operational Trade Information Portals, TIPs, following the launch of another by Tanzania. Uganda, Kenya and Rwanda already have operational portals, while the Burundi TIP is still under development and is expected to be launched on July 23rd. The South Sudan Trade Information portal will be developed later. The move by Tanzania further shows the country’s renewed interest in regional integration and trade since Samia Suluhu Hassan took over the presidency of the country three months ago. It is expected to boost intra-regional trade in East Africa as well as the region’s share of international trade. The TIPs map out all Imports, Exports and Transit Procedures, fees and time, which helps importers, exporters and transporters to operate under clear, certain and predictable business environments. The next step after mapping is to simply remove unnecessary and redundant bottlenecks. The TIP was launched during the Saba Saba International Trade Fair held in Dar es Salaam, by Zanzibar’s Minister for Trade and Industry Development, Hon. Said Omar Shabani. He stressed the importance of the Trade Information Portal and how it can help traders to get right and accurate information on how to export, import and transit goods. “The private sector, especially Micro, Small and Medium Enterprises can now exploit the opportunity availed to them by the TIP to grow their businesses by tapping into new markets,” he said. The EAC countries have all been repeatedly accused of violating the treaty especially regarding...

Kenya, TZ manufacturers push for elimination of trade barriers

Manufacturers from Kenya and Tanzania have called for the expedited resolution of non-tariff barriers (NTBs) and review of the East African Community Common External Tariff on the back of unsatisfactory trade levels in the last few years. Kenya’s exports to Tanzania declined from $342.9 million (Sh37 billion) in 2016 to $294.9 million (Sh32 billion) in 2020, while its exports to the rest of the world grew from $5.7 billion (Sh615 billion) in 2016 to $6.02 billion (Sh650 billion) in 2020. On the other hand, Tanzania’s exports to Kenya grew from $126.2 million (Sh13.6 billion) in 2016 to $258.2 million (Sh27.8 billion) in 2020. The country’s exports to the world grew from $4.4 billion (Sh475 billion) in 2016 to $5.2 billion (Sh561 billion) in 2020. Speaking during a trade investment forum hosted by Kenya Association of Manufacturers (KAM) and Confederation of Tanzania Industries held from Wednesday to Friday in Dar Es Salaam, Tanzania, Kenya’s High Commissioner to Tanzania Dan Kazungu said the elimination of trade barriers would boost trade significantly. “The visit by Her Excellency the President of Tanzania, Samia Suluhu, heralded a new dawn in the relationship between Kenya and Tanzania,” he said. “Let us take advantage of this enhanced friendship to resolve outstanding non-tariff barriers that hinder trade between the two countries. “A win for our community means prosperity for us all.” Read original article

East Africa urged to boost green development in the leather and textile sector

Nairobi, July 7 (Xinhua)-East Africa needs to green its leather and textile sector to promote exports, the International Trade Center (ITC), a joint body with the World Trade Organization, said Wednesday The report published in said. United Nations. According to the report, these sectors are the most polluted and have a negative impact on the local environmental quality, especially water resources. “The international value chain and textile value chain are working together to be environmentally friendly and reduce our ecological footprint,” a report co-authored by the Kenya Manufacturers Association (KAM). Says. The ITC says that most of this change towards environmental sustainability is due to large global fashion brands that require supply chain players to comply with internationally agreed standards for wastewater and chemical management. Said it was being promoted. “For East African companies, failure to comply with these standards poses a risk of being left behind in the global supply chain, and missing export market opportunities can be costly,” the report said. The findings show that textiles and leather are promising sectors in East Africa as they can create jobs, drive innovation and economic growth, and drive exports. The report states that these sectors have also been prioritized by most governments in the region in their industry blueprints as a means of paving the way for higher incomes. UN agencies say that despite the existence of comprehensive global standards and best practices, East Africa lacks an understanding of the steps required for compliance. The report states that local policymakers,...

East Africa: Tz Ready to Join EAC Roaming Framework

TANZANIA is finalizing plans of being part of the East African Community (EAC) roaming framework. In an interview with 'Daily News' yesterday, the Director of Communications Services at the Ministry of Information and Communication Technology (ICT) Clarence Ichekweleza assured that the country would join the framework before September this year. According to Engineer Ichekelezwa, Tanzania was scrutinizing and evaluating the new arrangement before it joined other partner states in the roaming framework, despite mounting pressure from EAC Transport, Communications and Meteorology Sector Council. "It was prudent to due diligence before getting into such an agreement... it is important to gauge the pros and cons that come with the regional roaming framework," explained Eng Ichekelezwa. He insisted that Tanzania had laid sound systems that would deter fraudulent activities as prerequisite to join the new arrangement, noting that some of the countries that had already become part of roaming framework failed to. She singled out the Telecom Traffic Monitoring System (TTMS) stationed at the Tanzania Communications Regulatory Authority (TCRA) as "This was an important step in joining the framework lest out country becomes a hotspot for cross border fraudsters," she said. Eng Ichekelezwa further appealed to other partner states to put in place such mechanisms as an important step for a unified telephone roaming system in East Africa, which is also known as One Network Area (ONA). She further revealed that the country was currently reviewing its legal framework before it becomes part of ONA. The regulations will first be gazeted before...

KRA links to 23 clearance points at Mombasa port

Cargo checkpoints at the Port of Mombasa have been linked to the Kenya Revenue Authority (KRA) in a move expected to reduce goods clearance time and enhance transparency. This is after the taxman commissioned a Sh2.6 billion Mombasa port metropolitan fibre optic network on Wednesday that will connect 23 clearing points to a centralised location in KRA’s Nairobi headquarters. The project is part of the Sh50 billion Eastern Africa Regional Transport, Trade and Development Facilitation Programme (EARTTDFP) that connects Kenya and South Sudan through the laying of a fibre-optic cable and construction of a superhighway. It is jointly funded by the government of Kenya and the World Bank. KRA Commissioner Corporate Support Services, Dr David Kinuu, said the new ICT infrastructure will improve efficiency in revenue collection. “Today’s event marks a major milestone for KRA and for the entire Eastern Africa Regional Transport, Trade and Development Facilitation Project and starting this financial year (July 1), KRA will have a central point to monitor its revenue collections to ensure there is efficiency,” said Mr Kinuu. “The project, which started in 2015, once completed will connect Kenya and South Sudan through fibre optic hence reduce time and cost of doing business,” he added. The project entails harmonisation of Customs and other border, risk management and control procedures, designing of a one-stop border post (OSBP) at Nadapal/Nakodok, strengthening of the cross-border trade including enhancing KRA coordination with other border agencies and supporting the implementation of an integrated border management system. Dr Kinuu noted...

NACCIMA harps on full implementation of free trade agreement

The National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has tasked the Federal Government with the full implementation of the African Continental Free Trade Area (AfCFTA) so that the country could tap from the huge benefits presented by the trade agreement. The National President of NACCIMA, Ide Udeagbala, during his investiture in Aba recently, said: “This is a giant leap towards increasing intra-African trade and creating collective wealth. It is also a bold step to take Africans out of poverty. “We are delighted at the work of the National Action Committee on AfCFTA since its establishment and have been part of its sensitization activities, through the NACCIMA committee on AfCFTA”. The NACCIMA president promised that the Association will continue to push for the full implementation of the agreement and ensure that Nigerian businesses harness its full benefits. Stressing the benefits of the trade deal, he said, AfCFTA will certainly be an important strategy in its quest to ensure Nigeria’s economic influence on the continent; taking note that Nigerian businesses are already strongly rooted in many African countries. In her speech, the immediate past National President of NACCIMA, Hajiya Saratu Iya Aliyu, said that NACCIMA, as a paramount member of the economy will continue to champion the cause of business, through free enterprise, constructive competitiveness and trade facilitation. “In line with the objectives of our association, we will continue to contribute ideas for the overall stability of the nation, while promoting growth in the private sector and exploring...

For America’s future, look to Africa

The United States has, since its founding, been a beacon for free and fair trade throughout the entire world. From rejecting taxes and restrictions on trade during our colonial period under the rule of the British Crown to the power of the U.S. Navy upholding international trading routes post-World War II, our trade practices have established the long and robust groundwork so that Americans have access to goods and markets in all corners of the earth. Yet this pioneering spirit of economic liberalization has not extended fully to our engagement with Africa, a continent with which our nation has a deep and historical connection. The first country to recognize the United States as an independent nation from Britain was the North African country of Morocco –– and while thousands of miles may separate our two continents, many Americans can trace their faith and heritage back to the majestic grounds of Northern and Eastern Africa. Our two histories also acknowledge the troubling and inhumane practice of slavery. The Great Sin of slavery spread throughout the world and left behind the indelible roots of African culture, traditions, innovation, and history that have inspired and shaped the world and our country. Despite our oft-communal history with the African continent, policymakers in Washington hardly understand its peoples, cultures, and governments. Not surprisingly, this may be why we have yet to fully appreciate the growing economic and political powerhouse Africa has become. Let me throw out just a few noteworthy pieces of information: Africa represents...

Rwanda selected to host continental e-trade platform

The African Union, through its department of Economic Development, Trade and Mining, on Wednesday chose Rwanda as the continental headquarters for the African e-trade Group. The development, announced during the annual Africa Integration Day, will, among others, facilitate the group’s ambition of supporting 600,000 SMEs in Africa over the next five years. The African e-Trade Group is a social entrepreneurship initiative with the primary aim of providing a comprehensive e-commerce platform to enhance the role of Africa’s SMEs in inter and intra-African trade. In an interview with The New Times on Wednesday, the Minister for ICT and Innovation, Paula Ingabire, said that the move is aligned with Rwanda’s vision of becoming an ICT and logistics hub in Africa. “With the mix of initiatives such as Smart Africa and YouthConnekt Initiative already hosted in Rwanda, we believe Ae-trade Group is another initiative to continue supporting trade across the continent,” Minister Ingabire said. She disclosed that, once established, the facility’s headquarters in Rwanda will host its SMEs programme, build a data centre in the country and also bring more than 5000 jobs in the next five years. The continental data centre will facilitate Small and Medium Enterprises towards lowering hosting data prices, Ingabire highlighted. “AeTrade Group will also create specific programmes to support Rwandan SMEs that will grow towards the increase of export of Made in Rwanda products to other African countries,” she asserted. “We encourage Rwandan SMEs to take advantage of this initiative to grow their business beyond the Rwandan borders.”...

“Why The African Continental Free Trade Area Is Important”

By Aletha Mudyahoto- The African Continental Free Trade Area (AfCFTA) is a true manifestation of how ideas have been transformed from ideologies into development. Officially opened in January 2021, the AfCFTA aims to create a single market, requiring member states to lift tariffs from 90% of goods inorder to promote free access to commodities, goods and services across the continent. A free trade area is the region encompassing a trade bloc whose members have signed a free trade agreement sealing economic cooperation. AfCFTA covers trade in goods and services, investment and intellectual property rights etc. The full benefits of the AfCFTA are yet to be realised because it’s operations have been affected heavily by the persistent corona virus (covid-19) which has ravaged the whole continent, endangering economies resulting in disruption of industrial production, financial markets have become volatile, slow movement of goods and people as well as closure of borders which have slowed trade facilitation. The AfCFTA presents a crucial opportunity for regional integration, all member states are unified for a common interest of economic growth and development. The ability to successfully trade under the AfCFTA refutes the idea that Africans cannot prosper without dependency or inter- dependency on Western countries. Intra- Africa trade gives member states access to vast markets, with the removal of trade barriers countries are able to export their products and goods in many quantities and an increase in exports means an increase in domestic income and the flow of foreign currency and eventually reduction of...