From the near pinnacle of a customs union, the old East African Community (EAC) came crashing down in 1977. Why? Political differences between the erstwhile leaders and perceptions around unfair distribution of the benefits and costs of regional integration halted the momentum. Through rebirth and enlargement, though, the new EAC has again risen to great heights as one of the most successful integration schemes on the African continent. Then again, recent headlines like “Uganda, Rwanda feud restricts free movement” and “Uganda and Rwanda trade accusations over border crossing dispute” are stark reminders of some of the difficulties that precipitated the demise of that previous integration experiment. The unfolding situation in East Africa is of global relevance as we can see many familiar dynamics at play in the context of debates on trade and integration globally. Take, for instance, in the European Union (EU), where tensions have been heightened over recent years. Is free trade and integration only beneficial to the already successful economies but harmful to the countries in the periphery? What about Brexit, which has raised a bucket-load of questions regarding national identity, political legitimacy of institutions outside of national borders, and “local” trade versus global trade? Or how about current U.S. tariff policy and the attendant debate about the concepts of “free” trade versus “fair” or “beneficial” trade? A brief history of the East African Community As far back as 1917, Kenya and Uganda formed an East African customs union that entailed free intra-area trade and a common external tariff. Tanganyika...

The Government has initiated a programme to address issues affecting the grain sector and inter-regional trade.East African Community Principal Secretary Margaret Mwakima said grain production in the region encounters a lot of challenges including climate change, lack of financial support from national governments and diseases and pests, which suppress the output.“To address these challenges, the Government has initiated interventions by instituting a Business Environment Programme (BEP) that spearheads Government efforts to ensure that policies and institutions are streamlined for optimal service delivery and support business growth in all sectors,” she said.“Also, several programmes under the BEP are currently ongoing to further streamline regulatory processes so that businesses spend less time and money on compliance and direct their efforts where they are needed.” Dr Mwakima was speaking during an East African Grain Council annual members and stakeholders’ luncheon at a Nairobi hotel.Kenya is estimated to import between 1.5 million to two million tonnes of wheat annually and 150,000 to 500,000 tonnes of maize annually, with a significant portion coming from Uganda and Tanzania. Source: Standard Digital

Kenya and Uganda will carry out a boundary survey and demarcation as part of efforts to resolve the Migingo Island dispute. Foreign Affairs minister Monica Juma said the project, to be undertaken following an Memorandum of Understanding with Kampala, was part of a wider programme to improve relations between communities living on Kenya’s border with other countries. Presidents Uhuru Kenyatta and Yoweri Museveni reached an understanding when the latter toured Kenya on a state visit. Both sides will appoint experts on a joint survey team. THE MoU The Kenyatta-Museveni MoU seeks to clarify the border, create more points for legal crossings as well as provide guidelines on sharing resources, the Cabinet Secretary said on Thursday. Source: Daily Nation

Rehabiltation works at Gatuna One Stop Border Post (OSBP) are in final stages, Rwanda’s Foreign Affairs Minister Dr. Richard Sezibera said on Friday. “Visited Gatuna One Stop Border Post. Work almost complete on Rwanda side,” Minister Sezibera tweeted. He, however, expressed wish that similar development happen on the Ugandan side. The border post connect Rwanda and Uganda. “Look forward to speedy completion on the Uganda side so the One Stop Border Post can become operational within timelines agreed at the Nothern Corridor summit,” Minister Sezibera added. In March this year, Uganda accused Rwanda of closing its border – claiming it has affected heavy trucks from crossing into Rwanda. But government in Kigali continuously explained the issue was renovation at Gatuna border that currently operates at only 30 percent. In the process, Rwanda issued a statement announcing other alternative routes as construction works in Gatuna are being finalized. All trucks were diverted to Kagitumba and Mirama hills border. Source: KT Press

Rwandans living in the Gatuna border town can now cross over to Uganda without much restrictions, for the first time in two months, as tensions between the two neighbours begin to ease. However, Rwandans from other border points are still barred from crossing, seven weeks after Rwanda issued a warning against travelling to Uganda. Rwanda stopped its citizens from crossing into Uganda, accusing Kampala of illegally arresting, torturing and deporting its citizens. Uganda on the other hand, is accusing Rwanda of spying on its territory and infiltrating its security agencies. The two countries further accused each other of economic sabotage. But as both countries seek to end the impasse behind closed doors, signs have emerged that tensions are easing, particularly for individuals living around Gatuna border. Cleared cargo stranded at Gatuna as Uganda pleads with Kigali "We are allowed to cross to Uganda, but for only a few hours, into buy what we need and return in the evening. In order to sustain this, we have to respect this arrangement, otherwise they can stop it," Simon Aharisimi, a Rwandan who lives in Gatuna told The EastAfrican. Border authorities told this paper this arrangement has been ongoing for about two weeks. "Those we allow to cross into Uganda are locals who reside in nearby areas; some of them we know by sight. Those coming from other parts of Rwanda are not allowed to cross. We will wait for authorities to direct us on the way forward," an immigration official told The...

Members of Parliament from eastern African countriesare on 15th April, 2019 expected to launch the Eastern Africa Parliamentary Alliance for Food Security and Nutrition (EAPA FSN) – a sub-regional platform aimed at promoting the right to food in eastern Africa through improved legislation. According to a statement issued on 14th April, 2019 by the Food and Agriculture (FAO) of the United Nations, the launch is in line with the first annual meeting in Tanzania in 2019. The platform came after realizing that malnutrition continues to be a major impediment to economic development, whereby it is estimated that 58 million children under the age of five years are too short for their age (stunted) in Africa. `Childhood malnutrition is costing the African economy about 11 per cent of Gross Domestic Product (GDP) every year, whereas preventing malnutrition delivers $16 in returns on investment for every $1 spent in Africa,` the statement read in part. It further said that parliamentarians play a critical role in alleviating hunger and malnutrition. `In fact, MPs enact laws and regulations, monitor law enforcement, influence national development plans, determine the design and allocation of national budgets, and hold their governments accountable for policy implementation related to food security and nutrition.` After a number of consultative meetings, MPs from eastern African countries, acknowledging the insufficient progress in food and nutrition situation, committed to establish a sub-regional platform that will promote cross border sharing of experience and best practices. It was also agreed to create the Eastern Africa Parliamentary Alliance for Food Security and Nutrition...

On a visit to Kenya in August 2018, British Prime Minister Theresa May said the country would retain duty-free access to UK markets even after Brexit. That assurance hasn’t been enough to allay fears of the impact of Brexit on Kenya’s flower exporters. Kenya is the fourth-largest exporter of cut flowers in the world. The flower industry is one of country’s largest employers, providing about 100,000 jobs directly and an estimated 2 million indirectly. Kenya earned $423m from floriculture exports in the first three months of 2018. According to the Kenya Flower Council, the country is the leading exporter of roses to the EU, with a market share of about 38%. About half of that is sold through the Dutch Auctions. That concentration means that the Netherlands has highly developed infrastructure for ensuring floral hygiene and quality control. It will likely take the UK a long time to be able to replicate this infrastructure, says Aleydis Nissen, an expert on Kenyan floriculture who has been a visiting researcher at the University of Nairobi. Kenya, says Nissen, sets greater store than the rest of the East African Community (EAC) on EU trade. Other EAC members, she says, are not as industrialised as Kenya and have access to European markets under the Everything But Arms (EBA) programme. Kenya took a leading role in the establishment of the 2014 Economic Partnership Agreement between the EU and the EAC, which also includes, Burundi, Rwanda, Tanzania and Uganda, largely as a result of pressure from the Kenyan floriculture industry,...

The African Export-Import Bank (Afreximbank) is working, with the support of African Union (AU), to create a digital ecosystem that will eliminate the major bottlenecks to trade finance flows within Africa, Bank President Prof. Benedict Oramah has announced in Washington D.C. Delivering an address on April 11 at the IGD Frontier 100 Forum organized by the Initiative for Global Development (IGD) on the sidelines of the World Bank/IMF Spring Meetings, Prof. Oramah said that one of the major constraints to intra-African trade was lack of information to support intra-regional trade and investments. That was why many African countries were importing products from outside the continent while neighboring countries were exporting the same products at a much lower cost. It was to address that challenge that Afreximbank and the AU were working to use digital technology to improve access to trade information and facilitate the use of African national currencies via intra African trade settlements, he explained. Prof. Oramah said that Afreximbank was developing a focused programme to support small and medium enterprises (SMEs) across the continent, recognizing that SMEs were a vital component to unlocking intra-African potential. In his opening remarks Prof. Oramah had noted that IGD has been facilitating discourse on important African issues over the years and said that Afreximbank identified with the efforts and achievements of the IGD, hence its close partnership with the initiative. Also speaking, Leila Ndiaye, President and CEO of IGD, said that the initiative’s work was aimed at supporting Africa’s growth and development...

The construction of the much awaited dry port in Naivasha is expected to commence with residents upbeat about the new developments in the area. President Uhuru Kenyatta is expected to officiate the ground breaking ceremony of the Port in Mai Mahiu Township today. This comes as residents expressed optimism that the port will be a major boost to Naivasha's economic growth. The director of East Africa Chamber of Commerce and Industry Njuguma Kamau, said the lake side town will be a major logistical hub with the clearance of goods moving to neighbouring countries. He said with the Standard Gauge Railway phase two now about to be completed to Naivasha adds to the economic fortunes of the town. “We will soon have a dry port here meaning that all goods from Mombasa will be cleared from Naivasha and these are some of the developments that the government has invested here,” he said. The price of land in the area has skyrocketed following the construction of the dry port. According to businessman  Samuel Kimani the price of land neighbouring the port and the soon to be constructed Industrial Park had almost tripled in the last one year owing to the new developments. “So many people from Nairobi have expressed interest at investing in this area but unfortunately the price of land is hindering them away due to its high cost,” he said. He said the government should consider extending the SGR to Naivasha town saying it would have greater benefits to all...

Last month’s tour of the Port of Mombasa by Ugandan President Yoweri Museveni and the Standard Gauge Railway (SGR) ride from the coastal city to Nairobi has given the new rail line the much needed endorsement as the best bet for moving cargo and people between Kenya and Uganda. The visit has also renewed growth prospects for the port which faces threats from Tanzania’s Dar es Salaam and Tanga ports, especially after the southern neighbour announced plans to expand the two facilities. Dar es Salaam port which has been eating into Kenya’s transit cargo to Uganda, Burundi and Rwanda has been undergoing transformation which has seen its competitiveness rise. Construction of Bagamoyo port and its affiliate special economic zone, which are expected to begin operation by 2022 is also posing a major threat to Kenya. However, to sustain its competitive advantage, Kenya has linked SGR to the port of Mombasa and completed the construction of the first phase of the second container terminal which has been in operation since April 2016. Regional ports The second container terminal is a key component of Mombasa port development programme and is being implemented in three phases on a total area of 100 hectares and capacity to handle 1.5 million twenty-foot equivalent units (TEUs) per annum on completion – bringing the overall port capacity to over 2.6 million TEUs by 2025. A recent report by Pricewaterhouse Coopers (PwC) on competition between the regional ports warned that ports will cannibalise business due to their proximity...