Two decades after the region’s leaders signed on to the revival of the East African Community (EAC), it has been planned that the Community will merge in joining forces to work and transact business as one. Are these plans coming as soon as we expect? And why am I not feeling EAC’s growth in my pocket despite the region significantly being praised throughout the continent and among international partners over its economic and regional performance? Well, these are some of revealing questions that run in everyone’s mind when the prospects to form a single currency by 2024 or deliver a rich, peaceful continent criss-crossed by high-speed trains by 2063 are made — especially in this current environment with prolonged political differences between the bigwig leaders, perceptions around unfair distribution of the benefits, and costs of regional integration; that have all halted the momentum, undermining regional integration process. The East African countries that include; Uganda, Kenya Tanzania, Rwanda, Burundi, and South Sudan that joined in September 2016, them coming together, there have been tremendous euphoria that the merger will build equitable and balanced economies, productive political and social standards which will eventually strengthen cooperation, from the socio-economic and political standpoint both in the individual countries, the continent, and the world at large. The master plan since the formation of the EAC, has been to have a free movement of people within the community, intra-trade to grow significantly — having common services like universities, airlines, railways and other infrastructures, has always been...

Countries around the world engage in trade between themselves in various ways including across their physical borders. However, adjustments at border points may determine both volume and speed of trading for a country and resultant economic performance compared to its neighbour. Trading across borders is a parameter the World Bank annually uses to assess countries in their ease of doing business. In the most recent 2020 Doing Business report, 190 economies including Rwanda were assessed. Doing Business records the time and cost associated with logistical process of exporting and importing goods. It measures time and cost (excluding tariffs) associated with three sets of procedures; documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. Rwanda, which fetched an overall score of 76.5% emerged in the 38th position, globally. Under the parameter of trading across borders, Rwanda scooped 75% and compared to all economies assessed, the country is ranked 88th. However, Rwanda is determined to make further adjustments under this parameter to remove all bottlenecks in its cross border trading with neighbouring economies. The country has so far reduced procedures for declaration and automation of clearances. According to Edith Mutesi, a Customs officer at Rwanda Revenue Authority, the country has pursued several reforms including adoption of Electronic Single Window System, so far reduced procedures for declaration and automation of clearances. “Declaration/clearance have reduced from 7 days to only 30 hours,” Mutesi says. For example this adjustment has significantly affected the turnaround time of...

It is der rigueur in the field of regional integration that a functioning common market is necessary before a monetary union. This is echoed in Article 5(1)(a) of the protocol establishing the East African Community Monetary Union (Eamu), which dictates that there must be seamless movement of people, goods and services within the East African Community partner states. This assumption feeds on the fact that it is more pragmatic to realise the benefits of a monetary union where there is free movement of goods, labour and capital. Simply put, money moves where goods, services and people can also move. But with a lukewarm common market, the EAC is creating a monetary union that will, among other things, have a single currency for Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan. A monetary union, strictly defined, means the use of a common currency by a group of countries. It entails the abandonment of national currencies and fiscal policies for a supranational shared currency. Previously, the EAC had a “monetary union” with the shilling as its currency. This ceased with the end of colonial rule. But in 2013, the revamped EAC signed the Protocol for the Establishment of the East African Community Monetary Union in line with the treaty. The Heads of State soon ordered the acceleration of a single currency. Stakeholder forums and comprehensive studies were held and a high-level task force formed to assess preparedness for such a union. A monetary union, it is hoped, will lead to reduction in...

The World Bank has projected a weaker economic growth in sub Saharan African in 2020, pinning hopes on investor confidence to turnaround fortunes of the region’s economies. According to the Bank’s 2020 Global Economic Prospects, growth is expected to pick up to 2.9 per cent this year, assuming investor confidence improves in some large economies, energy bottlenecks ease and robust growth continues in agricultural commodity exporters. The forecast is weaker than previously expected, reflecting softer demand from key trading partners, lower commodity prices and adverse domestic developments in several countries. But for East African Community, the problem is further compounded by low intra-trade, meaning much needed foreign exchange is spent on imports from outside the region, leading to slowdown in manufacturing and reduced job opportunities. This is the reason increasing intra-East African Community trade is top on the agenda of the regional private sector-led umbrella body—the East African Business Council (EABC). This was the major resolution arrived at in Arusha last November during the two-day high-level East African Business and Investment Summit. Even though the EAC is one of Africa’s fastest growing regional blocs, registering economic growth of 5.7 per cent in 2018, more intra-trade won’t be easy. While the Summit took stock of EAC achievements for the past 20 years, it is increasingly becoming clear that the more resolutions are made to increase intra-trade, the more the challenges the region faces. “Mechanisms for resolving Non tariff barriers were put in place, for instance, the national monitoring committees and regional...

African nations are protecting their airlines from stiff competition, making uncertain whether the dream of the SAATM open skies policy will be achieved. The Single African Air Transport Market (SAATM) was adopted in January 2018 to liberalize civil aviation on the continent and drive economic integration. It is one of the flagship projects of the African Union Agenda 2063 and will complement the African Continental Free Trade Area (AfCFTA), another flagship project. SAATM aim to create single airspace, however, is proving a bit complicated. The East African Community exemplifies reasons for some of the complications. First, it is telling that the bid to liberalise air transport in the region in implementing the Yamoussoukro Decision is yet to be realised since 2006. 24 years have passed. In the meantime, only Kenya and Rwanda are part of the SAATM treaty. Tanzania, Uganda, Burundi and South Sudan are yet to sign up. At the meet in Kigali in July last year appraising implementation status of the treaty, Rwanda was the only country in the region among others on the continent that had attained 100 per cent implementation. The 28 countries that have so far signed the treaty can begin to operate single airspace, but only 10 of them have fully implemented concrete measures. There is no indication whether two of the major markets – Egypt and Kenya – have started implementation, according to the appraisal. If the SAATM is to succeed, it will have to hurry up the already signed members and especially...

The Sudanese Sea Port Corporation will provide Ethiopia with necessary support as it makes use of Khartoum’s ports for the importation and exportation of commodities. Sudan’s Sea Port Corporation is also expected to offer assistance to Ethiopia’s state-owned shipping and logistics service – the Ethiopian Shipping and Logistics Service Enterprise. This is aimed at facilitating the importation of fertilizer. The idea of cooperating on port service and usage is of crucial significance to Ethiopia, who like several other nations across eastern Africa, is landlocked. Burundi, Rwanda, Uganda, and the Democratic Republic of Congo all have to transit goods through the Indian Ocean ports of Mombasa in Kenya and Dar es Salaam in Tanzania. Source: Africa.com

President Uhuru Kenyatta is scheduled to launch the proposed Sh350 million Uhuru Business Park and refurbished port in Kisumu County next week. Preparations were in top gear yesterday with County Commissioner Susan Waweru and Kisumu City Manager Dorice Ombara supervising the ongoing construction works in the park. This development comes after the Kenya Railways Corporation donated 23 acres of land to the county for industrial growth. The county government decided to put up a business park named after President Uhuru who initiated the process to accommodate displaced traders in town. Over 10,000 traders were displaced after several markets including the popular Lwang’ni Beach fish market were demolished. The businesses were standing on land belonging to Kenya Railways which the Kenya Ports Authority reclaimed for the expansion of Kisumu Port infrastructure. Some of the affected traders have not been resettled to date but with the construction of the Uhuru Business Park, they are likely to resume business soon. Kisumu Governor Anyang Nyong’o said were it not for President Uhuru’s intervention, they would not have received the funds to build the park. At least 7,500 stalls and 2,500 jua kali sheds will be built to resettle those displaced in the city’s structural reorganisation. The area has also been fenced and is now under twenty four hour security surveillance just as was done in Kisumu Port to avoid interference with ongoing work. Security officials said the area has 886 housing units built by Kenya Railways in 1901 and it had to be guarded...

Le projet « femmes dans le commerce transfrontalier », initié par l’ONG Trademark East Africa, vient d’être lancé officiellement. Objectif : relever les défis auxquels font face ces femmes Malmenée et empêchée de travailler. Souvent obligée de payer de l’argent pour exercer tranquillement son commerce… Un grand défi que rencontre Médiatrice, 31 ans, mère de cinq enfants. Lors du lancement officiel de ce projet, cette vendeusede légumes qui exerce sur la frontière burundo-congolaise de Gatumba confie que les « petites commerçantes » font face à de nombreux problèmes. L’absence de Numéro d’identification fiscale (NIF) et des documents requis par l’OBR. Le non-accès à l’information sur les mécanismes de facilitation du commerce.Des infrastructures quasi inexistantes (mauvaises routes, manque de dépôts de stockage) qui rendent la vie très difficile… et bien d’autres problèmes sont vécus par ces petites commerçantes. « Tous ces manquements les exposent à la corruption», affirmele ministre du Commerce, Jean-Marie Niyokindi, qui a lancé ce projet. 400 femmes sont bénéficiaires directes de ce projet qui sera exécuté sur trois frontières: Gatumba, Ruhwa dans la province Cibitoke, Mugina dans la province Makamba et le port de Rumonge. D’après la représentante légale de l’Association des femmes rapatriées du Burundi (Afrabu) qui exécute le projet, l’un des objectifs majeurs est de fournir à ces femmes une information suffisante sur les mécanismes de commerce transfrontalier et les lois qui les régissent. « Le résultat sera d’établir les Bureaux d’information commerciale (BIC) aux frontières de Makamba et Rumonge. » Les femmes représentent 90% des...

Following a series of high-level meetings with President Yoweri Museveni and local business executives, Momar Nguer who recently led a business delegation of top French executives to Uganda declared the mission a success. The 25-member delegation recently traveled to Kampala under their MEDEF umbrella (Mouvement des Enterprises de France), a French business association which brings together close to 170,000 French companies to explore opportunities in road and internet backbone infrastructure, pharmaceuticals, oil and gas, telecoms and credit finance, among others. Nguer who is the chairman of MEDEF’s Eastern Africa Business Council and also sits on French oil major, Total’s executive committee, told local journalists in a debriefing session at the French ambassador’s residence in Kampala on Nov.26 that French companies are “eager to build long-term partnerships with their Ugandan counterparts.” “We know that French companies will never know better the local environment than our Ugandan counterparts,” Nguer said, “We are humble enough to know that and we are humble enough to want to build upon the knowledge that our Ugandan counterparts may have.” Among the French business leaders who traveled to Kampala were those from Airbus Helicopters, a helicopter manufacturing firm, Thalès, an aeronautic, space, defence and security firm, Société Générale, a banking and financial services giant, Ponticelli Frères, a construction and maintenance firm that has interest in the oil and gas sector, Sogea Satom, a construction and public works firm and Bolloré Transport & Logistics, a logistics company which is already well-established in Uganda. Others included; Suez International which...

ENERGY Ministers from Rwanda, Tanzania and Burundi have rejected a request to extend the deadline for the completion of the Regional Rusumo Falls Hydroelectric project. Despite expressed satisfaction on the implementation of the hydro-power project, the Council of Ministers (CoM) meeting held at the Rusumo One Stop Border Post (OSBP) rebuffed the request for deadline extension by the board until September, 2021. Tanzanian Minister for Energy Dr Medard Kalemani who attended the 11th Ministerial meeting said instead, they have directed the board to work night and day and ensure that the project is completed by end of February, next year. He explained that work progress currently stood at 59 per cent adding that among steps taken include recruiting a new project manager who started work on July 28, this year. The meeting was also attended by Burundi Minister for Energy and Minerals, Engineer Come Manirakiza and his Rwandan counterpart, Ambassador Claver Gatete. Once completed, the Regional Rusumo Falls Hydroelectric Project (RRFHP) is envisaged to address the acute shortage of electricity experienced by the three countries, which negatively affect their economies. The project will generate 80 MW of renewable clean energy, relatively low cost power to the national grids of the three countries shared equally, with each country receiving an additional 165 GWH per year. The additional power will benefit about 1,146,000 people in the three countries-520,000 in Burundi (5.4 per cent), 159,000 in Tanzania (0.34 per cent) and 467,000 in Rwanda (4 per cent). The joint development was entered by...