Uganda’s President Yoweri Museveni is expected to launch the East African Community constitution-making process in Kampala on August 19, setting the pace for the attainment of the bloc’s fourth and last integration pillar — political federation. However, the region has decided to start with a political confederation. At the 20th Ordinary Summit in Arusha in February, the EAC heads of state asked President Museveni to oversee and provide political guidance to the legal experts tasked with the drafting of the Confederation Constitution. The EAC in May 2017, adopted the Political Confederation as a transitional model ahead of the envisaged last pillar of integration. The Confederation Constitution requires the EAC partner states to agree on areas to co-ordinate centrally, including trade and foreign policy, while other areas will be conducted by respective national governments. Each EAC partner state nominated two constitution drafting experts and a draftsman, making a team of 18. The constitution experts met for the first time in Arusha in September 2018, without their counterparts from Tanzania, to agree on terms of reference and a roadmap. The committee has spent about a year consulting partner states ahead of the drafting of the constitution. Tanzania’s failure to name its experts to the committee called to question the country’s commitment to the integration agenda, as the Treaty Establishing the EAC stipulates that the committee should not proceed without participation of one partner state. Source The East African

Rwandans travelling to Uganda have resorted to going through Tanzania as uncertainty shrouds the opening of the common border at Gatuna, six months after Kigali blockaded it and advised its citizens against crossing into the neighbouring country. GRUELLING JOURNEY Now, travellers use the Rusumo route in the southeast, cross into Tanzania and proceed to Kampala, a gruelling 12-hour journey. The journey through the direct route via the Gatuna border post is four hours shorter. There is no direct bus to Kampala through Rusumo. Passengers catch buses to the Tanzania side from which they board others to Kampala. Matunda Bus operates services to Rusumo. Some travellers who spoke to The EastAfrican said they have had to endure the detour due to business interests and families in Uganda, defying the advisory by Kigali that they risk being arrested, detained and tortured by Ugandan security agents. Olivier Nduhungirehe, State Minister for EAC Affairs told The EastAfrican that if there were people still travelling to Uganda it was “up to them.” “What we know is that we discouraged them from going there because of their security. We cannot prevent them from going. We strongly advise them not to go to Uganda,” he said. BORDER TRADE AFFECTED The EastAfrican toured the border area at Gatuna this week and found the informal cross-border trade dead. Trade in foodstuff is now one way, with Ugandans allowed to cross into Rwanda to buy or sell goods. Forex shops are, however, still thriving due to a large number of Ugandans and tourists who cross...

The Port of Lamu will start operations in October following completion of the first berth early this month. The Kenya Ports Authority (KPA) yesterday said it will be offering heavy discounts for importers using the new port in a bid to attract vessels to Lamu. The commissioning on October 20 will coincide with Mashujaa Day. The Lapsset Corridor Development Authority (LCDA) on August 5 said the first berth was complete, setting the stage for its launch. Two other berths will be completed by end of next year, with the target being to have 32 operational berths over the next five years. KPA said it would allow importers to store imports for up to one month for free after it starts operations at the new port. “In order to promote traffic into the new Port of Lamu, KPA wishes to announce a promotional tariff for vessels and cargo as follows – 30 days storage free period for transshipment and transit cargo, 14 days storage free period for domestic cargo,” said a statement yesterday. Multipurpose berth KPA said it would also discount other services including a 40 per cent drop on discharging cargo from ships and cargo handling services at the shore. “The first berth will be used as a multipurpose berth and will be capable of handling any kind of vessel especially the self-sustaining vessels. KPA has put in place plans to install three ship-to-shore gantries by the time the remaining two berths are ready for operations in October,” it said....

African governments have been urged to increase investments in the digital infrastructure to enhance trade. African Union High Representative for Infrastructure Development Raila Odinga said technology has become an indispensable tool in today’s world.With rapid population growth globally, he said, there is a need to expand investments in the digital technology space to fast-track transportation of goods, passengers and services.“We need to increase data networks and connections linking the African continent and the rest of the world as we leverage technology to boost services and production,” said Raila. The AU envoy and opposition leader was briefing the media at the Kisumu International Airport after hosting Zimbabwean billionaire Strive Masiyiwa whom he lauded for his efforts at improving ICT infrastructure in Africa.Masiyiwa’s flagship firm Econet Wireless is best known for its high-speed internet services available in a number of African cities. Raila assured investors of his support in fostering IT infrastructure growth across the country and the greater Horn of Africa.Masiyiwa, who is also the founder of Liquid Telecom promised to expand IT networks, cross-data as well as broadband connectivity across Kenya and the continent at large Source: Standard Media

According to the 2017/18 Bank of Tanzania (BOT)’s Annual Report, Tanzania was the fastest growing economy in SADC with a GDP growth of 7.1 per cent. Tanzania’s total intra-Sadc trade however declined by 3.5 per cent in 2017 as compared to 2016 due to fall in both exports and imports. Nevertheless, Tanzania continued to be a net exporter to other Sadc countries, recording a trade surplus of $445.5 million in 2017, up from $397.2 million in 2016. Specifically, Tanzania recorded a trade surplus with South Africa, DRC, Malawi, Mozambique, Zimbabwe, Angola and Botswana. Meanwhile, Tanzania recorded a trade deficit with Zambia, Madagascar, Mauritius, Namibia, Swaziland, Seychelles and Lesotho. Tanzania’s major exports to the Sadc region were gold, cigarettes, wheat flour, juice, ceramic, fish, glass, cement, soap, footwear, and bricks, while major imports, were motor vehicles, maize seeds, gas, iron sheets, lubricants, beer, apples and sugar. As per the above statistics, Tanzania can leverage on its membership to trade blocks such as Sadc to achieve further economic growth. However, there are a number of issues that will need to be addressed to further grow intra-Sadc trade in not only goods but also services. Non-tariff barriers (NTBs) remain a challenge - for example, a recent ban on importation of poultry by Tanzania may be perceived as an NTB. Other challenges include the lack of harmonisation of sanitary and phytosanitary measures for agriculture and livestock, as well as custom delays including processing export/transit permits. Sadc with its combined population of close to 350m...

Kenya has been ranked the second leading innovation hub in sub-Saharan Africa by the World Intellectual Property Organisation in its latest Global Innovation Index (GII) 2019 report. Kenya’s so-called Silicon Savannah only trails upper middle income economy South Africa, with Mauritius coming third. “Kenya has a track record for recording high levels of innovation, outperforming on levels of innovation relative to GDP for the ninth consecutive year, an excellent record at par with other lower-middle-income countries like India, the Republic of Moldova, and Vietnam,” reads the report. Kenya’s innovative strength has been attributed to startups’ easy access to credit and microfinance loans. “As in previous years, Africa shines in terms of innovation relative to level of development. Out of the 18 innovation achievers identified in the GII 2019, six (the most from any one region) are from the sub-Saharan African region,” says the report. Source Business Daily

The Permanent Secretary Amb. Patrick Mugoya Tuesday morning addressed the ongoing 3rd Trade and Business Facilitation Symposium (TBFS) 2019 in Mombasa, Kenya. Amb. Mugoya highlighted on the need to improve the strategic alliance in trading between Uganda and Kenya to boost the trade volume between the two countries which currently stands at approximately USD 1.2 Billion. On commending the efforts of the Consulate of the Republic of Uganda – Mombasa led by Amb. Tayebwa Katureebe, Amb. Mugoya reiterated the importance of such platforms as a means of getting the Private Sector to share experiences, identify opportunities and challenges and agree on appropriate measures to promote trade and investment. Amb. Mugoya emphasised the duty of government officials in addressing all Non-Trade Barriers/Non-Tariff Measures and implementing decisions that have already been agreed to in a timely manner. The symposium aims to:- Strengthen cooperation and enhance coordination and partnerships among stakeholders in the trade value chain in addressing common challenges; Support the business community in making use of the Electronic Single Window for customs clearance of goods; Provide increased understanding on key trends and issues in regard to combating counterfeit products; Enlighten participants on key issues of tax policy, administration and the rationale to pay taxes; Provide an opportunity for participants to appreciate the Kenya import market; Establish a vibrant permanent platform for information sharing and amongst partners and stakeholders; Change mindsets and increase production for export. Source Edge

“The consignment was cleared automatically in the system, after the importer’s clearing agent, Express Shipping and Logistics (ESL), lodged entries in the system and paid the duty of Sh65 million before the arrival of the cargo,” said the Commissioner. The tax collector expects the next bulk consignments of  42,000 metric tonnes of clinker and 25,540 metric tonnes of coal to be cleared through the system. The former arrived at the Port of Mombasa on 7th August on-board MV Boreas Venture and the latter is expected to arrive on August, 21 by MV African Hoeg respectively. Clearance of cargo through the new system is a major milestone for KRA in tis bid to expedite customs clearance of cargo and enhance trade facilitation. The iCMS was introduced to replace the 12-year-old Simba System with key innovations, including automated valuation bench-marking, the automated release of green-channel cargo, importer validation and declaration, and linkage with iTax. “iCMS will reduce the cargo dwell time for compliant imports at the Port of Mombasa since the system does not require human intervention at the document processing center, unlike the Simba System,” said the tax collector. iCMS has been implemented in phases. The clearance module for air cargo went live on 10th May 2019, while the roll-out for land and sea cargo began on 7th July 2019 Source Capital FM

TANZANIA is among the African countries that have proper and modern infrastructure that facilitates economic growth within Southern African Development Community (SADC) member states. Improved infrastructure supports the development of the agricultural sector to ensure food security in the country and the region at large. Mr Domingo Gove, the Director of food, agriculture and natural resources with the SADC secretariat, said yesterday that Tanzania was among African countries that had managed to invest in infrastructure for the betterment of the country’s economy and that of the region. He said Tanzania had improved road networks, ports, airports and railway lines, which were key components of regional integration. “Tanzania is doing great in this area of infrastructure, improvement of infrastructure contributes to the development of the SADC economy and facilitates regional integration,” he noted. He said SADC promotes trade in all agricultural products and ensures food security in all 16 member countries. “We work as one in all countries. If there is a certain programme in Tanzania, we ensure the programme is harmonised in Namibia,” he noted. Mr Dove, who heads the SADC food security, agriculture and natural resources directorate, was giving an overview on how SADC addressed issues related to food security, agricultural production and natural resource issues in the 16 SADC member countries. Commenting on the state of food security in the SADC region, Mr Dove said there was a shortage of rains in the last agriculture season in most SADC member countries and that the situation had led to...

Ugandans exporting goods to South Sudan are losing billions of shillings in taxes due to a failure by regional countries to ratify the Double Taxation Agreement (DTA). The agreement is expected to lower taxes and increase cross-border investments. Speaking at a press conference held at the Morocco Consulate in Kololo, Hon. Dr. Abraham Maliet Mamer, Secretary General, South Sudan Investment Authority, who came to Uganda for the two-day West Nile Investment Symposium 2019 said that ratifying the agreement could save companies millions of dollars in tax and additionally provide greater incentives for cross-border investments. He said that for investors, being taxed in two jurisdictions — their home country (Uganda) and the country in which a fund ultimately invests (South Sudan) — it is a big turn-off. “It is our expectation that implementation of this agreement will increase cross-border businesses and investment — which, in the long run, will even increase employment as well as domestic revenue,” said Dr. Maliet Mamer. He said that South Sudan government seeks to negotiate tax treaties with Uganda which is a major trading partner to avoid cross-border investors being taxed twice on their income and to maximise investment between them. “Because of the relationship we have [Uganda and south Sudan]; there are no reasons why our people are paying double taxes. In the final of all of these, the burden is passed on to consumers,” he said adding that “we need to look into it.” He said the businessmen should be taxed once “and then...