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Uganda hopes July Africa trade summit can address non-tariff barriers

Uganda is hopeful that the African trade meeting, taking place in Niger on July 7 will promptly address the issue of non-tariff barriers which for long has stood in the way of trade among countries. The meeting is intended to launch the operationalization the African Continental Free Trade Area agreement (AFCTA). The Agreement, a free trade area among 52 of the 55 African Union nations, was adopted during the 30th ordinary session of the African heads of state in Addis Ababa in January 2018. It brings on the table a market of 1.3 billion people. Literally, it means Africa wants trade where all its countries can trade with each without major restrictions. So far Nigeria, Eritrea and Guinea Bissau have rejected the agreement. By the end of May 2019, at least 24 countries had ratified the agreement meaning it can now be implemented. The agreement needed only 22 countries to kick-start work on supporting instruments. These instruments will be unveiled in Niger. Trade and Industry minister Amelia Kyambadde told reporters at the Uganda Media Centre today that there is now visible work in progress and Uganda expected members to address the issue of no-tariff barriers as soon as possible. Non-tariff barriers are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. They include import bans, discriminatory rules of origin and quality conditions imposed by the importing country on the exporting countries. Others are unreasonable/unjustified packaging, labelling, product standards. These,...

Seamless Travel through the EAC becomes a Reality: Launch of IIDEA Project “Easy Travel East Africa”

Not need to hassle your way at the bus stand anymore to catch a ticket. Traveling across East Africa is set to be easier following the launch of our IIDEA project “Easy Travel East Africa”. The online platform will enable cross-border travelers to plan ahead for their journey through access to real time information on scheduled trips and compare pricing as well as reserve bookings. The new system seeks to provide cross-border universal ticketing and customer support services. Easy Travel East Africa project lead and Bekn Global Technologies Chief Executive Officer Nicodemus Barasa explains how the platform brings together regional bus operators, regulators, tour agencies and immigration agencies. The company has already engaged six regional bus operators including Modern Coast, Tahmeed, Dreamline, Mash Poa, Easy Coach and Riverside Shuttle. “A passenger only needs to visit our website and search for buses doing cross-border travels. They will then be able to book for their tickets online. They will get ticket details emailed and SMS confirmation sent to their phones, which they will use to board the buses they had booked,” Barasa said during the launch event in June, in Nairobi. Easy Travel East Africa's aim for seamless travelling across the region is additionally achieved by offering border pre-clearance services for passengers using their platform. Hereby the passengers’ information will be sent to the immigration offices prior to their arrival at the border through the platform. The platform is ready for use and will fully be rolled out in August 2019. Mr...

China’s ambition dealt blow ahead of G20 as Tanzania and Kenya projects grind to halt

The hopes of China’s president Xi Jinping to play a more assertive role on the world stage were under pressure on Thursday as he headed to the G20 summit amid a trade war with the US and blows to his flagship Belt and Road Initiative (BRI). Mr Xi, who has reversed years of foreign policy caution, landed in Osaka amid reports that Tanzania had suspended a port project and Kenya halted construction on a coal power plant, dealing a major blow to Beijing’s ambitions in Africa. The port in the Tanzanian town of Bagamoyo was worth $10bn and would have been the largest in east Africa. But financing terms presented by the Chinese were “exploitative and awkward,” said John Magufuli, Tanzania’s president. “They want us to give them a guarantee of 33 years and a lease of 99 years, and we should not question whoever comes to invest there once the port is operational,” said Mr Magufuli. “They want to take the land as their own but we have to compensate them for drilling construction of that port.” When Mr Xi launched the BRI in 2013, developing nations enthusiastically signed on for loans to fund big projects that would set them on the path to prosperity. But six years on new governments are starting to cancel and renegotiate contracts given the weight of Chinese debt, casting doubt on the $1 trillion initiative set  to inaugurate a new ‘Silk Road’. Sri Lanka’s Hambantota port was a cautionary tale for many. After...

Four more border points to be opened on Busia

  The government has announced plans to open four border points in Busia County to boost trade in the region. Addressing residents after an assessment tour of the proposed crossing points on Thursday, Border Management Secretariat Director Kennedy Nyaiyo said the decision was informed by the accessibility and vastness of the area. “The border points earmarked for upgrading are Sio Port, Mulwanda and Buteba in Funyula Constituency and Port Victoria in Budalangi to complement the existing Busia and Malaba One Stop Border Posts,” he said in Port Victoria. A county security team led by County Commander John Nyoike, said the additional entry points will end cases of tax evasion, which has seen a variety of products sneaked into the country through the porous border. Mr Ezekiel Okwach, the chief officer in the Office of the Governor, said there is a need to consider other entry points like Adumai in Teso North, which is very busy, but has no Kenya Revenue Authority officers. “The opening of more entry points will enhance taxation and have a multiplier effect on the county’s income,” he said. Source: Daily Nation

Rwanda-Tanzania SGR to go to eastern DRC

  The standard gauge railway (SGR) train in Kenya. Plans are underway to extend the planned Rwanda-Tanzania SGR to eastern DR Congo. PHOTO | FILE | NATION MEDIA GROUP A plan by Tanzania and Rwanda to extend the joint standard gauge railway line to link Kigali and Rubavu on the border with the Democratic Republic of Congo seems to have gained fresh impetus after President Felix Tshisekedi’s recent visit to Dar es Salaam. Kinshasa has given the green light for a feasibility study to be carried out to pave the way for the stretch to its eastern border. President Tshisekedi said in Dar es Salaam that the extension of the SGR to Rubavu will open up trade opportunities for the country which, according to a TradeMark Africa report, depends entirely on the ports of Dar es Salaam and Mombasa for its imports and exports. The detailed design for an extended line from Isaka in Tanzania to Kigali in Rwanda, covering 575km, was agreed on and both countries are going to finance the project at a cost of $2.5 billion, with Tanzania paying $1.3 billion and Rwanda $1.2 billion. Rwanda will incur another expense to cover the extended line to Rubavu. ASSURANCE President Tshisekedi assured President John Magufuli of Tanzania of increased volumes of his country’s exports and imports through Dar es Salaam, which will be connected with the SGR when is complete.

South Sudan integrates online portal to slash non-tariff barriers

JUBA, June 25 (Xinhua) -- South Sudan said Tuesday it has already integrated an online portal aimed at eliminating various non-tariff barriers (NTBs). The move aims in a bid to ease trade and expedite timely delivery of humanitarian aid as the country seeks recovery from more than five years of conflict. Mou Mou Athian, Undersecretary for East African Community (EAC) under the ministry of trade, industry and EAC Affairs, said the online portal is the first trade-related online tool in South Sudan designed to provide information on institutions and mechanisms to fight NTBs. "It is designed as the virtual center that provides information on national, regional and international themes related to the elimination of NTBs," Athian told journalists in Juba during training of officials on use of the portal. He disclosed that they developed two tools that will help with the identification, registration and elimination of NTBs. Athian revealed that the first tool is the national response system for NTBs that will enable quick resolution of specific NTBs particularly those related to non-compliance to the existing rules. He disclosed that the second tool is specifically designed to assist humanitarian organizations in South Sudan and revenue authorities to streamline the process of tax exemptions and enable faster flow of humanitarian assistance to people in need in South Sudan. "The NTB portal directly addresses South Sudan's commitments arising from its membership to the EAC and will help South Sudan's participation in regional forums that are established to address NTBs," said Athian. He...

Women join fight against illegal trade at Kenya-Uganda border

Officials of the cross-border women traders sacco speak in Busia on June 26, 2019. They appealed for sensitisation of women on cross-border trade to avert the use of ungazetted routes. PHOTO | GAITANO PESSA | NATION MEDIA GROUP IN SUMMARY They hope to tame smuggling of banned or fake goods and raise avenues to collect more tax. Most of the women who took part in the event admitted to having used illegal crossings. EAC is currently developing a framework on cross-border security. Authorities along the Kenya-Uganda border are roping in business groups run by women in a campaign meant to make official border points attractive to traders and dissuade them from using illegal crossings. This, they hope, will tame smuggling of banned or fake goods and raise avenues to collect more tax from traders using the revamped Busia One-Stop Border Post, the Malaba crossing and other border points under renovation. During the cross-border women traders’ conference facilitated by Trademark East Africa in collaboration with State department for Gender held at Itoya Hotel in Busia Wednesday, it was revealed that women, who are among key stakeholders in cross-border trade, have been avoiding regular borders out of fear of harassment. REVENUE LOSS In the process, they deny the two countries the much sought after revenue. Most of the women who took part in the event that brought together participants from Kenya and Uganda admitted to having used illegal crossings to avoid what they termed as “punitive taxes” and harassment by customs officials...

UNECA United Nations Economic Commission for Afr : All set for Horn of Africa trade forum focusing on region’s pharmaceutical industry

Addis Ababa, Ethiopia, June 26, 2019 (ECA) - All is set for the two-day regional trade forum for the Horn of Africa focusing on the implementation of the historic African Continental Free Trade Agreement that went into force on 30 May. The theme of the forum is: 'AfCFTA Implementation: Breaking Down Geographical, Logistical and Regulatory Barriers to Trade and Investment in the Horn to Boost Industrialisation: A Focus on the Pharmaceutical Industry'. Speaking on the eve of the meeting. Stephen Karingi, Director of the Economic Commission for Africa's (ECA) Regional Integration and Trade Division, said much work now needs to be done now that the AfCFTA is in force. 'These regional trade forums, besides providing platforms for member States, business communities, researchers and others to access cutting-edge evidence-based policy analysis and briefs, methodologies and tools to support shared gains from the AfCFTA, will allow the region to discuss what needs to be put in place in terms of policies to ensure every African benefits,' Mr. Karingi said. He said sessions, which will focus on a number of sub-themes, including boosting competitiveness and job creation in the Horn of Africa with pharmaceuticals as an example; stocktaking - completing the investment, competition and intellectual property protocols of the Phase II agenda; broadening policy space and taking advantage of flexibilities, will encourage participants to expand their thinking and explore fresh opportunities under the new continental market. 'Thanks to the AfCFTA, Africa is now in a position to say market size is no longer...

Central Corridor stakeholders call on Dar port to cut charges

  In the Central Corridor Transport Observatory Report for 2018, it stated that Dar Port also charges U$266 per container of exports compared to Mombasa’s U$223 which makes it more expensive hence less competitive. “However it is quite cheaper importing and exporting through Dar es Salaam Port for the Central Corridor member states except for Uganda that is near Mombasa Port,” said Central Corridor Transit Transport Facilitation Agency (CCTTFA)’s Executive Secretary Captain Dieudonne Dukundane. Capt Dukundane said Tanzania can expedite fully implementation of the re-opening of the multimodal route of Dar es Salaam to Mwanza to Port Bell in Uganda which will be a game changer for the landlocked country’s cargo transiting through Dar Port. He said the Central Corridor’s leading port of Dar es Salaam needs to reduce its charges so that it can compete with the Northern Corridor’s Mombasa Port and other corridors in the East and Central Africa region. According to the CCTO report, the Northern Corridor is the only route in East and Central Africa which is considered as a serious competitor of the Central Corridor as it also provides a gateway through Kenya to the landlocked economies of Uganda, Rwanda, Burundi and eastern DR Congo, as well as South Sudan. The report asserts that marine vessels take up to three weeks in the outer anchorage of Dar es Salaam port while offloaded cargo ca stay up to two weeks before clearance thanks to delays in while if well organized takes only two days. Permanent Secretary...

Let Us Embrace Intra-Trade In Africa To Boost The Economy, Says EABC

The  Eas  African Business Council (EABC) has urged the private sector and policy makers to embrace intra-trade as a means of boosting Africa’s economy. This  is  a  move that will see the success of African Continental Free Trade Area (AfCFTA) project that will create a single economic market in Africa as  a means of reducing cost of doing business, reducing trading levies and increasing efficiency and standards of doing business in Africa. Speaking  on Monday during the official opening of the EABC Regional Consultative workshop on AfCFTA, the EABC Chairman, Nick  Nesbitt  said that improving  intra-trade will enhance competitiveness in the continent which will extend the value addition chain in the member states. “If  we embrace intra-trade, there will be regional value addition by improving the manufacturing sector which will open up markets across the region advancing Africa’s economy and living standards,” he said. Nesbitt  also  said that improving intra-trade will integrate different countries, different businesses and political agenda making it easier for business people  to trade within the continent. The  Chairman  added that less trade is done in the continent compared to other continents because of the difficulty in doing business and urged the key players  in trade to deal with the issues so as to ensure the success of trade in Africa. “Doing business in Africa is difficult due to physical, travel, telecommunication, political and non-tariff barriers. We need to deal with these issues together as the private sector and the policy makers to boost trade in Africa,”...