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Rwanda, Israel keen to advance their cooperation

Yesterday,Israel opened its embassy in Rwanda after 50 years since the two countries established diplomatic relations. This is the first time Israel is opening an Embassy in an African nation in eight years after Ghana’s in 2011 and their 11th on the continent. This follows a series of meetings between President Paul Kagame and Israel Prime Minister Benjamin Netanyahu in which they agreed, among other things, to open an Israel embassy in Kigali. The New Times’Julius Bizimungu had exclusive interview with Yuval Rotem, the Director General of Israel Ministry of Foreign Affairs on wide ranging issues, including Israel relations with Rwanda and Africa in general, the controversial refugee issues as well as trade between Rwanda and Israel. Below are excerpts: Your Prime Minister has met the Rwandan President many times in the past two years. What does this signify? It means trust between leaders, trust between countries, and above all, it is an interest of both countries to take their relationship into a different direction that benefits their people. It also means that both countries are ready for the next move. Within this context, we have now our embassy opened here which is a better symbolism and better practicability, with desire on Israel side, to move this relationship forward and see what areas of cooperation, of collaboration and above all, what we can advance in the interest of both countries that benefits you (Rwanda) and us (Israel), in economic area, in the political area, and the strategic area. That is...

Uganda and Rwanda conflict: Time to reform the EAC

It’s a shame that at a time when the entire African continent has placed its gaze on achieving Continental Free Trade Area, the EAC is embroiled in a crisis that is detrimental to the economic welfare of millions and an economically integrated region. It’s even worse that the squabbling is premised not on any clear policy differences, normative misunderstandings, or legal complexities with regard to EAC treaty but on personality differences between Uganda’s Yoweri Museveni and Rwanda’s Paul Kagame. The overriding factor is that the crisis in great part boils down to the two leaders’ poor democratic credentials and authoritarian tendencies. Kagame and Museveni are known to stifle opposition parties in their respective countries, thus the reason why they constantly live in fear of real and perceived armed dissidents working against their regimes. This kind of blame game would be less likely if they had allowed opposition parties to operate freely. In essence, the discord between the leaders of Uganda and Rwanda on one hand, and Burundi and Rwanda on the other is likely to lead to uncertainty in the economic and political future of EAC, as long as they continue to hold on to power and limit democratic playing field for opposition parties in their respective countries.. The challenge to EAC, however, is that these claims and counterclaims hamper the harmonious process of EAC integration as it sows seeds of discord between leaders and fear among EAC citizens. This is further compounded by the weak nature of EAC’s secretariat,...

EAC Undergoes 3rd Joint Trade Policy Review By The WTO

EAC Partner States are committed to the multilateral trading system and are therefore reviewed after every six years by the World Trade Organization (WTO) Trade Policy Review Mechanism. It is in this context that the EAC Partner States underwent their Third Joint Trade Policy Review from 20th to 22nd March, 2019 in Geneva, Switzerland. The objective of the review is to achieve greater transparency in, and understanding of the EAC’s trade and trade related policies on the Customs Union and Common Market by the WTO Members and to enable a multilateral assessment of the adherence by EAC Partner States who are WTO Members, to the rules, disciplines and commitments made under the WTO Agreements. The review covered the EAC Partner States of Burundi, Kenya, Uganda, Rwanda and the United Republic of Tanzania. The Republic of South Sudan was not part of the Trade Policy Review as it has not completed the WTO accession procedures. Hon. Soraya Hakuziyaremye, Rwanda’s Minister of Trade and Industry led the EAC delegation. Other heads of delegations from the Partner States were as follows: Hon. Jean Marie Niyokindi, Minister of Trade, Industry and Tourism, Burundi; Hon. Amelia Anne Kyambadde, Minister of Trade, Industry and Cooperatives, Uganda; Dr. Chris Kiptoo, Principal Secretary, State Department of Trade, Kenya, and; Dr. Edwin Paul Mhede, Deputy Permanent Secretary, Ministry of Industry and Trade, Tanzania. Mr. Kenneth Bagamuhunda, the Director General (Customs and Trade), led the delegation from the EAC Secretariat. In preparation for the Trade Policy Review, two key reports...

Chinese firm to start building major roads in South Sudan

South Sudan has reached an agreement with Chinese firm Shandong Hi-Speed Group Co., Ltd (SDHS) to embark on construction of major highways linking the capital Juba to the remote countryside. Rebecca Joshua Okwaci, minister of roads and bridges said the move will boost peace and trade besides helping connect people across the country that have suffered a five-year-long conflict. "Together we are celebrating the signing of the agreement witnessed by the President (Salva Kiir). The President has encouraged us with a policy of oil for development for which we are now embarking on the first ever construction of one of the roads in South Sudan that will be followed by other roads," she told journalists in Juba during inspection of the road equipment. Okwaci disclosed the first phase will soon start with construction of the Juba-Terekeka-Yirol to Rumbek road. "We believe that roads are peace, roads are stability, trade, connectivity of the people and country," added Okwaci. She lauded the Chinese government for supporting infrastructure development in the youngest nation which currently has only one major tarmacked highway, the Juba-Nimule, a gateway to Kenya's coastal city of Mombasa. Li Chao, SDHS representative in South Sudan, lauded the South Sudanese government for trusting the company with the major road construction project. "Yesterday (Monday) we signed a multi-party agreement and contract agreement with ministry of roads, petroleum and finance. So we extend our great gratitude to the people of South Sudan and the trust given by the government of South Sudan for...

Dock workers want Uganda dry port deal made public

Dock workers want the Kenyan government to impose strict conditions before offering land to Uganda for the construction of a dry port in Naivasha. Last week, President Uhuru Kenyatta offered the landlocked country land to build a dry port for its cargo as part of the joint Standard Gauge Railway (SGR) project. However, the details and terms of the agreement reached between President Kenyatta and Ugandan leader Yoweri Museveni remain unclear.   CONDITIONS The giant Dock Workers Union (DWU) secretary-general Simon Sang said although the over 7,000 port workers support the move, they want the details made public, saying it must be a win-win situation for the two countries. “What is more important is under what conditions should the land be given out. There is nothing wrong with giving incentives to investors but we must have conditions that take care of our interests. One of the conditions is employment which should be shared on an agreed ratio,” Mr Sang’ said. During a dinner on Wednesday evening in honour of President Museveni who was on a two-day State visit to Kenya, Mr Kenyatta said the country will offer Uganda land to build a dry port for its cargo in Naivasha. EXPANSION However, in a press briefing at DWU headquarters in Mombasa, Mr Sang said: “What are the concessional rates the government is proposing? Taking into consideration the fact that we invest a lot in the port, meaning the rates for whatever cargo that comes into the port should be able to...

Kenya set to ink Sh368b railway loan

Kenya is among countries angling to reap big from the second Belt and Road Initiative (BRI) forum in Beijing, China later this month. In a ceremony to be held on the sidelines of the forum, Kenya  will sign a Sh368 billion loan to facilitate the construction of the second phase of the Standard Gauge Railway (SGR) linking Naivasha to Kisumu . The event will bring together more than 40 foreign governments and representatives from more than 100 countries with President Uhuru Kenyatta expected to be among key dignitaries.  “Through six years of hard work, the BRI has laid its groundwork and entered the stage of all-round growth, it is bearing fruit and will create more opportunities for co-operation,” said Yang Jiechi, a member of the Political Bureau of the Central Committee of the Communist Party of China. Yang is also the director of the Office of the Central Commission for Foreign Affairs overseeing preparations for the forum first held six years ago. He said the opportunities come with the BRI’s growing international influence, moral appeal and co-operation potential. “Against the backdrop of mounting protectionism and unilateralism in the world, the BRI principle of consultation and co-operation for shared benefits has gained wide recognition,” Yang added. The ambitious BRI programme aims at connecting Asia with Africa and Europe through land and maritime networks along six corridors to accelerate regional integration and boost trade. Several loans Already, Kenya is a beneficiary of several loans from China key among them being Sh327 billion loan advanced...

African CEOs are bracing for the spoils from Brexit

African industry captains see a silver lining in the rocky exit of the United Kingdom from the EU (Brexit) at a time when a continental free trade area is about to come into force. A survey by Deloitte on how companies are prepared to exploit the broad market of $3 trillion and a population of more than 1.2 billion people found that three-quarters of executives polled were confident of benefiting from the African Continental Free Trade Area and that competition was the least of their worries. Instead they were anxious about how the business climate was cyclically affected by elections, small fragmented markets, inadequate financing, high cost of financial transactions and energy. While most have a strategic plan on integration, the survey found that it was focused on diversification, going Pan-African and proof of concept approach, where experiments are done in segments and countries before being scaled up across businesses and terrain. Interestingly, few were thinking of going global because of uncertainties surrounding world trade, with the UK about to exit the EU, and China, US and Europe always one drastic decision away from a trade war. The UK Trade Commissioner for Africa Emmah Wayde-Smith, however, told The EastAfrican they have, over the past two years worked to ensure continuity of trade with Africa, irrespective of what form Brexit takes. Prime Minister Theresa May had pledged to quit if her proposal is adopted. It had already failed twice among seven other options, creating more anxiety over Africa’s access to the UK market....

U.S pension investors eye Kenya’s infrastructure

Kenya is hosting over 30 representatives of major U.S. pension and asset management funds on an initial mission to evaluate the investment potential and opportunities in infrastructure projects. The team is being hosted by the Kenya Pension Fund Investment Consortium (KEPFIC) on a three-day fact finding mission. Collectively, these funds manage assets worth Sh100 trillion (US$1 trillion). The visit is supported by the U.S. National Association of Securities Professionals, the World Bank, and the U.S. government, through USAID. “By moving from traditional investments in stocks and bonds to new opportunities in Kenyan roads, power plants and enterprises, Kenyan and U.S. pension funds will strengthen commercial ties between our countries. These investments will benefit both countries and enhance the economic security of Kenyan and American retirees,” said U.S. Ambassador to Kenya Kyle McCarter in a statement. Historically, infrastructure development has been financed by the public sector. The country’s current financing gap for infrastructure stands at about Sh400 billion, a gap that could be bridged by increased participation of the private sector. During the mission, executives from the U.S. pension and asset management funds will discuss opportunities with KEPFIC and its membership of 12 Kenyan leading fund managers, which currently manage Sh 200 billion in assets. Projects to be financed under this partnership would include roads, water and sanitation, energy and affordable housing, an initiative that will go a long way in supporting achievement of the Big Four Agenda for national development. “The new partnership represents a good match for the country...

There is a silver lining in blockade of Rwanda

It has been said that necessity is the mother of invention. It is an obvious saying, perhaps, and maybe even cliché, but nonetheless profound. It is during the most difficult situations that human beings are at their most ingenious best. If proof were needed of this, the current spat between Rwanda and Uganda is it. While not exactly inventing new things, Rwandans have found new ways of doing them as a result of Uganda’s unfriendly actions. They have had to get out of the comfort zone, away from the accustomed way of doing things and started venturing into places and fields new. This is a choice Uganda has forced on them and in the process opened their eyes to other possibilities. In that sense they have come to a new thinking about their existence as a nation and are fashioning new ways to cope with the new reality During the past two decades or so, Uganda has been placing obstacles in Rwanda’s way. The list of those obstacles is long as the current state of relations has revealed. For example, there are instances of reneging on projects agreed upon under the Northern Corridor Projects Initiative (NCPI), such as the extension of the Standard Gauge Railway (SGR) from Kampala to Kigali, but which Uganda now says it will rather extend to Juba, South Sudan, first and maybe consider the extension to Rwanda later. Another has been the deliberate slowing down of other NCPI projects as to make their implementation impossible, such...

RSB gets $1 million to boost food safety, trade

Rwanda Standards Board(RSB) has received $1 million (approximately Rwf900m) to help it keep up with global best practices and offer improved services to its clients to enhance food safety and trade. The signing of the financing agreement took place yesterday between Trademark East Africa and RSB in Kigali. According to officials, it will benefit farmers, pack houses, millers and transporters to enable them attain international standard requirements in food safety of local agricultural products, hence enabling them to access a wide range of markets both regionally and internationally. The money will also be used in interventions such as automation of RSB processes to improve service delivery and increase customer satisfaction. It will also be used to develop a seven year strategic plan that will guide RSB in keeping up with global best practices in standards for international sanitary and phytosanitary standards (SPS). “We want to ensure that we support standards and certifications to leverage the trading platforms and the improved physical and digital infrastructure,” said Patience Mutesi, TMA Country Director. Officials also said the emphasis was put in agriculture given that the sector accounts for 33 per cent of Rwanda’s GDP and employs 72 per cent of the working population. Also under the National Strategy for Transformation (NST1), the export sector should grow by 17 per cent annually and agriculture is one of the main players. “As productivity increases and regional and global tariff barriers are eliminated, standards and SPS issues tend to rise in prominence, given countries’ commitment to...