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Rwanda Joins SADC, EAC, COMESA Trade Deal

Rwanda parliament has ratified the 2015 Tripartite Free Trade Area (TFTA) agreement, a market of three regional blocs. TFTA brings together country members of the Common Market for Eastern and Southern Africa (COMESA), East Africa Community (EAC) and the Southern African Development Community. The ratification was passed this Wednesday without going through the commission scrutiny but came with debate on its importance, fears of duplication of the recently launched African Continental Free Trade Area (AfCFTA) worth $3.4 trillion. TFTA consists of a US$1.2 trillion free trade area, incorporating 26 African nations, with a population of 632 million people. The overall aim of the TFTA is to remove barriers to trade and to ease the movement of people between its signatory nations. Minister of Trade and Industry, Soraya Hakuziyaremye who presented the bill said “This agreement is very important to our export market since it introduces our country to a much wider market as it includes the Southern Africa Development Community of which we are not member.” At first, some members of parliament were hesitant to endorse it on ground that the agreement may be just a duplication of the already existing AfCFTA. “I sense an issue of duplication here. We should be sure that we would not loose taxes to these agreements,” MP Frank Habineza said. For MP Ignacienne Nyirarukundo, the AfCFTA was enough. MP Christine Muhongayire backed the idea of her colleagues but advised that parliament takes its time to assess the deal in the commissions. “It’s advisable to...

High Expectations As Uganda-Tanzania Business Forum Is Launched In Kampala Comments Feed

Kampala and Dar es Salaam have Wednesday launched preparations for the anticipated two-day Uganda-Tanzania Business Forum 2019 scheduled to start on September 5. The ceremony presided over by State Minister for Regional Affairs Philemon Mateke was held at Uganda’s Foreign Affairs Ministry in Kampala. Uganda’s High Commissioner to Tanzania said the Forum will be held in Dar es Salaam under the theme “Promoting bilateral trade and investment for growth and sustainable development.” The one-day private sector led event will be attended by Ugandan President Yoweri Museveni and his Tanzanian counterpart John Pombe Magufuli. Kabonero further revealed that discussions and presentations will revolve around new and existing trade and investment opportunities in Uganda and Tanzania. He said the event will be preceded by a Joint Permanent Commission (JPC) of Ministers from both sides to resolve the existing trade barriers. The business forum comes against the backdrop of increased concerns by Ugandans that movement of people and goods especially between Mutukula and Dar es Salaam is hindered by dozens of checks by Tanzanian authorities. Uganda is determined to tap the Tanzanian market which has remained tricky for decades. > The Tanzanian ambassador to Uganda said the construction of the standard gauge railway is underway with hopes of reaching Morogoro in the next few months. Thereafter, he said, the railway line will be extended to Mwanza. This would allow cargo movement from Dar to Mwanza before being loaded on water vessels on Lake Victoria enroute to Port Bell. The private sector is being...

Is Kenya losing its lead in the region?

Kenya could slowly be losing its strategic lead in East Africa due to the changing geopolitics and the newfound unity between Ethiopia, Eritrea and Somalia. Analysts suggest Kenya needs to adjust its foreign policy in light of Ethiopian Prime Minister Abiy Ahmed Ali becoming the regional point man to fix problems ranging from the Kenya-Somalia maritime dispute to the conflict in Sudan. TRADE HUB As an important trade hub for landlocked countries, Kenya has maintained its the middle-of-the path stance taken during the Cold War under the Non-Aligned Movement. As a result, Kenya has kept its allies like the US and China in investments, leadership of international organisations and tackling threats like terrorism, climate change and HIV/Aids. In 2014 Kenya developed its first written foreign policy since Independence in 1963, with five main pillars — peace diplomacy, economic diplomacy, diaspora diplomacy, environment diplomacy and cultural diplomacy. However, Kenya’s peace diplomacy is being overshadowed by organisations like the Intergovernmental Authority on Development (Igad) with Prime Minister Abiy as its chairman. According to Abdiwahab Sheikh Abdisamad, director and senior consultant at Southlink Consultants and a Horn of Africa political scientist at Kenyatta University, oil multinationals are lobbying for Somali interests in their own countries. He added that Kenyan foreign policy towards Somalia needs restructuring since the fight against Al Shabaab has attracted new stakeholders, with the Gulf crisis spilling over into Somalia. “Kenya should side either with the Saudi-led coalition or the Qatari and Turkey alliance. To date, Kenya has not sided...

Rwanda ratifies TFTA treaty

Rwandan traders and service providers are optimistic after parliament ratified the Tripartite Free Trade Area (TFTA) agreement, which brings together Comesa, SADC and the EAC. Rwanda became the 5th country to ratify the treaty, out of the 26 countries that signed the agreement in June 2015 in Egypt. The others are Uganda, South Africa, Egypt and Kenya. However, some parliamentarians questioned whether the deal was not a duplication with the coming into force of the African Continental Free Trade Area (AfCFTA). But, the business community, especially those who trade in various African countries, welcomed the ratification. The TFTA is a $1.2 trillion free trade area, incorporating 27 African nations, with a population of more than 632 million people. Its aim is to eliminate trade barriers and ease the movement of people between member countries. Minister of Trade and Industry Soraya Hakuziyaremye, who presented the Bill to parliament, said the agreement is important to the country’s export market since it introduces it to a much wider market that includes SADC, of which Rwanda is not a member. The agreement will enable all goods to enjoy a 100 per cent tax exemption on all products moved within the blocs and has a transition phase of five years, giving a wide market reach advantage to the country by promoting its “Made in Rwanda” products. Ms Hakuziyaremye said the TFTA and AfCFTA complement each other and signing the TFTA would help the country benefit faster. Source:  The East African

French economic diplomacy in Tanzania scaling up a win-win partnership

The general purpose of French economic diplomacy is to participate in tackling Tanzania major development challenges, basing the bilateral economic exchanges on a fair and structuring partnership for the long term. In this context, the French Embassy supports the national Vision 2025, fostering industrialization in order to access to a middle income country status as soon as possible, through aid (bilateral, multilateral and European), trade and investments. France economic cooperation aims at contributing to reduce poverty, secure basic needs for the population and offer a sustainable development of the middle class. A fruitful dialogue with Tanzanian authorities must also be maintained to be sure to meet the country requirements. According to the global priorities of Tanzania, France offers a comparative advantage in strategic areas such as urbanization, energy, including renewable energies, transports, infrastructures, health, agriculture, security and defence. The French Embassy also accompanies the initiatives of the French private sector in Tanzania by giving some guidance in risk assessment, identifying opportunities, providing financing support (export guarantees, feasibility studies support and capacity building improvement). For historical reasons the French companies are traditionally very active in Western and Central Africa, but they are more and more eager to intensify their activities in East African dynamic economies. Tanzania, with its diversified opportunities, strategic geographic location and secured environment is a key country in the region. French companies have been established in Tanzania for many years and have strong track records to be proud of. For instance, Total has just celebrated its 50 years...

DR Congo’s bid to join EAC is of varied potential interests

Recently, the Democratic Republic of Congo formally applied for admission to the East African Community (EAC). The EAC is a regional intergovernmental organisation whose current Partner States are: the Republics of Kenya, Rwanda, Uganda, South Sudan, Burundi and the United Republic of Tanzania. The Republic of South Sudan acceded to the EAC Treaty on 15 April 2016 and is now a full member as of 15 August 2016. Prior to analysing the varied interests to the EAC bloc, it is quite interesting to analyse whether the DRC application is conformable to the EAC Treaty, the principal governing instrument of the Community. The EAC is a closed organisation as opposed to an open organisation. To illustrate, a closed organisation specially formed to be either from a regional perspective or for a functional perspective. In this context, the EAC is a closed organisation of a regional perspective. In the pursuit of its core mandate, the EAC discharges its duties in the interests of the Community, in turn to the benefits of its citizens, and in the light of the EAC Treaty, under Article 3, and implementing Protocols [notably Customs Union and Common Market]. Indeed, in a closed organisation, all interactions only happen within the specific system, which means closed systems are shut off from the outside environment, and every interaction is transmitted inside that closed system. Under Article 3, paragraph 3, of the EAC Treaty embodies the essential requirements to be taken into account by the Partner States in considering the application...

Kenya to host Kenya trade week in partnership with COMESA

Trade, Principal Secretary Chris Kiptoo says the summit provides a platform to take stake stock of the gains made following the adoption of Integrated National Export Development and Promote Strategy. The strategy prioritizes 23 sectors among them industry, agriculture and tourism which are key in boosting intra African trade as well as create an avenue for Business connections among Africa member states. The current intra-Africa trade fluctuates between 15 and 18 per cent and efforts to boost this and tap the 3.4 trillion dollars market are on the rise. The trade summit is expected to not only provide a platform for stakeholders involved in trade to showcase the best in the region but also exchange ideas on the current state of play in trade. Kenya will be looking to expand its export values as well as diversify its products under the buy Kenya build Kenya initiative as well as E-commerce. Kenya currently is doing almost 6 billion dollars of export which is about 8 percent of the GDP. Kiptoo says the summit will provide an opportunity for participants to deliberate on the economic diplomacy in the contest of the regional blocs that include EAC, COMESA, TFTA and AfCFTA. The Economic Commission for Africa suggests that the AfCFTA has the potential both to boost intra-African trade by 52.3 per cent by 2022 by eliminating import duties by 90 per cent, however only 22 members have ratified the agreement Source: KBC

Five operational instruments will govern the AfCFTA

The AfCFTA will be governed by five operational instruments: the Rules of Origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; a digital payments system and the African Trade Observatory. Each one was launched by different Heads of State and Government that included President Cyril Ramaphosa of South Africa, President Abdel Fattah El Sisi of Egypt who is current Chairperson of the AU; Mr. Moussa Faki Makamat, the Chairperson of the African Union Commission; and President Mahamadou Issoufou of Niger, who is the Champion of the AfCFTA. The launch ceremony included “a roll call of honour”, at which the 27 countries that have ratified the instruments of the AfCFTA were announced, and those that have signed but not yet ratified were mentioned. A commemorative plaque of the signing was also unveiled. The AfCFTA agreement was adopted and opened for signature on 21 March 2018 in Kigali. The AfCTA entered into force on 30 May 2019, thirty days after having received the twenty-second instrument of ratification on 29 April, 2019 in conformity with legal provisions. “The speedy entry into force of the AfCFTA is a source of pride for all of us”, said AU Commission Chairperson Mr. Moussa Faki Mahamat. He described the free trade agreement as one of the instruments for continental integration in line with the objectives of the Abuja Treaty and the aspirations of Agenda 2063. The Chairperson also highlighted the importance of peace building and security on the continent, adding that “it would be...

Rwanda Trade Fair To Attract $40 Billion In Trade Deals

The organisers of the Second Intra-African Trade Fair (IATF2020) expect it to surpass the achievements of the inaugural trade fair held in Cairo in 2018 by attracting 10,000 participants and generating intra-African trade and investment deals worth more than $40 billion, Prof. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), has said. Prof. Oramah was speaking at the formal launch of IATF2020 during the African Continental Free Trade Area (AfCFTA) Business Forum 2019 held on the sidelines of the 12th Extraordinary Summit of African Union (AU) Heads of State in Niamey. He told guests that the trade fair, scheduled for Kigali from 1 to 7 September 2020, would attract more than 1,100 exhibitors from over 55 countries. “Working with our esteemed partners, we will exceed the achievements of 2018,” he said, describing IATF2018 as a resounding success, not in the colorful displays exhibited, but in the showcasing of diversity of tradable goods by about 1,100 exhibitors from 45 countries and in the execution of deals worth about $32 billion. That trade fair resulted in a Nigerian technology company winning a $100-million contract to provide technology-based solutions to the South Sudanese government and an Egyptian company winning contracts in many African countries to supply and install energy generation and distribution equipment worth close to $1 billion. It also created opportunities for other  Egyptian and Tunisian companies signing a $50-million partnership deal to create a joint venture for assembling home appliances and the signing of a $3-billion energy generation project between...

Manufacturers bet big on Africa trade pact

Kenya’s manufacturing sector is betting big on the proposed Africa-wide trade pact that will provide access to what has been described as the biggest market in the world. Nigeria became the latest member to sign the landmark agreement, which aims to increase trade among African countries. With Eritrea as the only African country not to be part of the trading bloc, the potential for the regional initiative to transform the economies of the member states looks pretty real. According to the Oxford Business Group, Kenya’s exports are projected to increase by over Sh10.2 billion ($100 million) following full implementation of the free trade pact. The group notes that with 41.2 per cent of Kenya’s exports destined for free trade pact member states in 2011, compared with the 13.4 per cent share of imports from the same zone, Kenya enters the bloc from a position of relative strength. Only 12 per cent of Africa’s trade is between countries, signifying the huge promise for participating countries. Kenyan manufacturers are banking on the agreement to take the lead in producing competitive products in terms of quality and prices. “The Continental Free Trade Area agreement provides an opportunity for Kenya to become a manufacturing hub for Africa,” said Kenya Association of Manufacturers (KAM) chief executive Phyllis Wakiaga. President Uhuru Kenyatta has been at the forefront in pushing for deeper trade ties among African countries, driven by the realisation that Kenya will reap massive benefits, particularly in efforts to achieve industrialisation. When he joined other...