Speaking at an EAC high level EA business and investment summit held in Arusha this week, Serengeti Breweries Limited’s Managing Director, Mark Ocitti whose company is currently investing 14 million pounds (over 40bn/-) in expansion of its three brewing plants in the country, said the bloc’s tax regimes are not business friendly. Giving his views at a plenary session entitled, ‘Tax regime harmonization-fears, benefits and practical way forward’, Ocitti said, “The list of stays of implementation continue to grow due to concerns in terms of economic asymmetry between EAC member states in terms of revenue considerations, support for infant industries; affordability, high quality and sufficient availability of inputs, focus on growing competitive upstream industries and supply of high quality products at affordable prices for consumers.” Ocitti called for speedy tax harmonization among the EAC members saying that though some significant ground has been covered, the prevailing barriers to trade needed to be quickly managed in order to have a steady flow of investment and free movement of goods and services. “Vehicles such as duty remission schemes continue to play a crucial role in supporting manufacturing in EAC,” Ocitti argued while noting that different interpretation of the EAC Treaty’s article terms such as ‘import’ by the members has led to the higher domestic taxes charged on goods originating the bloc, a protectionist move that has lowered intra-EAC trade. Explaining on the impact of the current state on the brewing industry, the SBL chief executive noted that differences in the domestic taxation...

Parliamentary Diplomacy has played a key role in Global Governance. Experts from all over the world have analysed empirical case studies to demonstrates that parliamentarians and parliamentary assemblies have an increasingly important international role. The European Parliament, said to be one of the strongest autonomous institutional actors in world politics has been at the center of Parliamentary Diplomacy but the world has been turning attention to Africa: looking into the role of parliament and cabinet in foreign policy making, especially in South Africa and the East African Legislative Assembly. According to Weiglas and de Boer (2007, pp.93-4), Parliamentary Diplomacy is the full range of international activities undertaken by parliamentarians in order to increase mutual understanding between countries, to assist each other in improving the control of governments and the representation of a people and to increase the democratic legitimacy of inter-governmental institutions. In this article, Joel Okwemba, the Managing Director at the Centre for International and Security Affairs, shares his thoughts on Why we need a Structured Parliamentary Diplomacy for Africa. Why we need a Structured Parliamentary Diplomacy for Africa. However, opportunities are abounding when it comes to: how Parliaments interact with Foreign Policy questions; how Parliaments engage with the State on these questions; how to create form and structure on Parliamentary Diplomacy; and in the development of academic and theoretical literature on the Parliamentary Diplomacy theory in Africa. Parliamentary Diplomacy also referred to as Parlomacy[1], creates opportunities that are alternatives and complimentary to traditional diplomatic approaches that rely on...

It was born a long 22 years after a regional economic bloc by the same name but with fewer partner states collapsed – in 1977 – after only ten years of existence. The current edition of the EAC stands on a surface area of 2.5 million square kilometres and is home to 172 million people, some 22 per cent of whom live in urban areas. By its own account, the bloc had a combined GDP of US$ 172 billion in 2017, whose realisation one would dare suggest bears immense strategic and geopolitical significance. Some observers have argued that whoever engineered the crumbling of the “first-phase” EAC committed a sin of gigantic proportions. The EAC inherited the functions of what was known as East African Common Services Organisation (EACSO), itself set up soon after Tanzania, Kenya and Uganda gained their political independence in the early 1960s. Incidentally, EACSO itself took over from the East African High Commission – which was in place during the colonial era. In a way, then, it is that East African nations killed a good thing handed over to them on a silver platter. One might argue that what the three East African nations inherited was a rare asset – a case of ‘unite and quit’ instead of the much more common ‘divide and quit’ as applied to the Indian subcontinent some two decades earlier. The allusion to the commission of a gigantic blunder has a bearing on the fact that the EAC was, and is still,...

The EAC secretariat said in a statement on Wednesday that the accord was signed by the EU envoy to Tanzania and the EAC Manfredo Fanti, and EAC Secretary-General Libérat Mfumukeko. The programme is a regional response to the various and growing security threats across the EAC region, the statement noted, elaborating that it will work both on enhancing technical capacities and building trust between law enforcement agencies in the EAC partner states. Without mutual trust, data and information will not be shared, while the shared aim is to intercept those engaged in transnational organised crime, it specified. The 45-month programme will be implemented by the EAC Secretariat and the International Criminal Police Organization (Interpol), complementing several other initiatives to ensure peace and security in the EAC zone. “Cooperation in this area can work only if there is mutual trust among law enforcement agencies and this is what the programme aims at,” the EU envoy noted. In his remarks Amb. Mfumukeko hailed the long standing partnership between the EAC and the EU in the peace and security sector, which he said was a key enabler to the integration process in East Africa. “The current phase of EDF11 has set aside 85 million euros for a variety of interventions supportive to various integration initiatives, among them peace and security. The EAC is also a beneficiary of 528 million euros through a regional envelope that covers IGAD, COMESA, IOC and SADC,” he stated. Since 2007, the EU has extended support to the EAC...

The African Infrastructure Guarantee Mechanism’ was organised as part of the 3rd African Pension Funds and Alternatives Investment Conference. It was well attended by an audience mostly composed of industry players – private pension fund administrators, trustees, asset managers, government pension funds and development finance institutions. This grouping clearly demonstrates the interest to develop such initiatives to scale up greater investments in the African infrastructure space. The session was moderated by Dr Morgan Pillay Senior Infrastructure Finance Expert from GIZ, who presented the objectives of the AUDA-NEPAD session. To objectives were; to gauge the appetite of institutional investors (pension funds) for the implementation of the African Infrastructure Guarantee Mechanism and discuss its financial potential; and to make use of the Pension Fund conference platform to consult on what can make the concept a reality. This includes possible implementation strategies and concrete action steps towards scaling risk mitigation and an African Guarantee Scheme to enable the mobilisation of African pension fund investment for African infrastructure. The session panel, with representatives from the AUDA-NEPAD, the African Development Bank; the Development Bank of Southern Africa and the Trade and Development Bank gave its interpretation of the African Infrastructure Guarantee Mechanism as instrument of risk mitigation. Industry players were requested to give their thoughts on how the development of such initiative could bring value in facilitating alternative investments in the African Infrastructure space. Deliberations included working with development partners in the development of similar initiatives such as the African Development Bank and its co-guarantee...

Last week, Rwanda president Paul Kagame sounded war drums in a terse tone to an anxious parliamentary chamber. The president promised hell to his country’s enemies who have “gone behind their backs.” This came on the backdrop of a relatively successful year in the region marked by several positive developments. The DR Congo is open for business, leading a number of high-powered trade missions in the region. Peace in the DRC has also given breathing space to the Banyarwanda/Banyamulenge diaspora to trade at the borders and further inland. The local unit has absorbed this effect in its strengthening against the US dollar at a record 3,680 to the greenback up from 3,950 in July 2018. The DRC has started talking to Uganda over the $10 billion war debt arising from liability imputed by the International Court of Justice in The Hague. Inside the DRC, there may be some tension between former president Joseph Kabila’s party, which is normal as he wants to potentially run for office again, but president Tshisekedi hasn’t run into direct combat with him, leaving that task for his Chief of Staff and political coalition partner. There is now a big opportunity for Uganda and Rwanda to relocate factories into the Congo, especially if DRC’s application to enter the East African Community, (EAC) is considered. In South Sudan, the warring parties are being nudged towards a settlement. Even Pope Francis and Archbishop of Canterbury Justin Welby are planning to come. The price of crude oil may yet...

TANZANIA Trade Development Authority (TanTrade) has successfully helped over 32,000 local traders to access international markets in the past four years. The support has also enabled traders to engage in various activities including establishment of industries. TanTrade Deputy Director General, Latifa Hamisi told reporters on Wednesday that in the past four years traders were equipped with investment and business opportunities information at both local and international levels. She said traders have been enabled to participate in export business, which is the best process in boosting the economy. She said 405 traders were connected to markets and managed to sell 102,000 tons of maize, 2,000 tons of groundnuts, 5,000 tons of soya beans, 50 tones of cereals and 5,000tons of cassava. “TanTrade has succeeded to connect 405 traders who sold a total 0f 102,000 tones of maize in local and external markets, 2,000 tones of groundnuts, 5,000 of soya beans, 50 tones of cereals, 5,000 tones of cassava” she said. Ms Hamis added that traders managed to sell seven tones of papaya leaves, 200 kilograms of the baobab fruits and two tones of cardamom as well as 3.2 tones of ginger flower. The deputy director general gave an example of local market success saying that there were some instances where some farm products produced from one area were made available to the other like export of tomatoes from Tanzania mainland to Zanzibar. On regional market, Ms Hamisi said her office strived greatly to connect traders to regional markets such as the...

THE geographical location of Tanzania stands as a link to sixteen member countries of the Southern African Development Community (SADC) which have a reason to take a leaf from Tanzania in order to facilitate and boost intra-trade activities in the region. Tanzania boasts many opportunities which may help spread investment potential in the southern Africa region. The development of the SADC region will depend on trade and industrial growth all of which require facilitation of efficient infrastructural development which Tanzania is already investing in. These includes, Julius Nyerere Hydro-electricity power Generation Project which upon its completion is scheduled to generate 2,115 megawatts of electricity. This is enough to cater for the southern African countries. The log stretch of the Standard Gauge Railways (SGR) covers1,450 Km in total. Another one is the 1,860 kilometre-long bi-national railway link known as TAZARA owned by Tanzania and Zambia which is vital in boosting intra-regional trade as it joins southern Africa and Eastern Africa through its railway transport network. The two countries plan to restructure the railway infrastructure for increased investment use by southern countries that will unlock its potential for boosting intraregional trade, a key pillar for regional integration in southern Africa. With a designed capacity of over two million tonnes of freight per annum, TAZARA has been handling traffic for the SADC countries as well as the Common Market for Eastern and Southern Africa (COMESA), thereby providing a vital regional link with the rest of the world through the port of Dar es...

As discussed several times in this column, the Kenya Government has earmarked trade as a key factor towards the achievement of the Big 4 Agenda, and ultimately the realisation of Vision 2030. With a view towards harnessing Kenya’s trade potential, Kenya seeks to unlock the tried and tested economic benefits offered by Special Economic Zones (SEZ), as evidenced by the largely successful SEZ regimes of India and China. This in itself indicates a shift from reliance on Export Processing Zones (EPZ) which failed to attain the desired economic impact. Special Economic Zones, established and defined by the Special Economic Zones Act 2015, refer to designated geographical areas where business-enabling policies are implemented and sector-appropriate on-site and off-site infrastructure and utilities are provided for by the Kenyan Government. Under the SEZ regime, participating investors stand to benefit from a trade enabling environment. Notably, the Act highlights integrated infrastructure facilities, access to business and economic incentives as well as the removal of trade barriers and impediments as being key benefits accorded through the SEZ regime. Drilling down to the incentive angle of SEZs, the major selling point of SEZs in Kenya is the tax shields offered within the confines of an SEZ. Particularly, from a tax perspective, SEZs are considered to be outside the customs territory of Kenya, thereby operating within a jurisdictional bubble that shields them from taxes and similar regulatory hurdles that directly or indirectly impede trade. Consequently, licensed SEZ enterprises, developers and operators benefit from various tax rebates such...

The East African Community (EAC) has launched a campaign aimed at creating a new momentum towards its regional integration agenda. COMPETITION The campaign dubbed ‘The EAC I Deserve’, which targets to reach over 10 million East African citizens in the next one year, was officially launched during the regional bloc’s 20th anniversary in Arusha, Tanzania, on November 21, 2019. The campaign will include social media interfaces and a regional youth videos and animations competition involving all EAC partner states where 30 youthful winners will take home $25,000. “The youth must actively engage in the integration process. Accounting for over 65 per cent of East Africa’s total population, capturing and incorporating their dreams and aspirations in the integration agenda through videos and animations in the competition is imperative,” said EAC Secretary-General Ambassador Liberat Mfumukeko. Source: Daily Nation