President Museveni has rooted for the removal of border restriction and promotion of free movement of goods and services across the borders of African states in order to have access to larger markets. According to the president, the free movement of goods and services is a matter of survival for Uganda, East Africa and Africa. This, according to him, is one of the ways Africans can prosper. “Once we know this, then we must accept the free movement of goods and services by removing taxes (tariffs) and non-tariff barriers (border restrictions, road-blocks on trade routes, complicated licensing procedures, etc). It is only when the goods produced by the factories access big markets that they can make profits. Again, it is basic economics,” Mr Museveni said on Wednesday while delivering a paper titled ‘Tackling Inter-trade barriers’ at the close of Africa Now Summit, Munyonyo. Below is Museveni’s full presentation; The first barrier we need to tackle is the strategic conception. How are we going to solve the issue of prosperity? We shall solve the issue of prosperity through the production and sale of goods and services. The African leaders need to know that there are two key players in a modern economy: the producer of a good or a service on the one hand and a consumer of that good or service on the other hand. If nobody buys or consumes that good or service that business will collapse. Of course there are factors that must link the producer and the...

Uganda’s government accused neighboring Rwanda of imposing an embargo on bilateral trade, the latest salvo in an escalating dispute between the two countries. Rwandan authorities blocked Ugandan exports to the country and introduced an export-permit system for Rwandan traders seeking to ship goods to Uganda, the Foreign Ministry said in a statement posted on government spokesman Ofwono Opondo’s Twitter feed. The “export of Ugandan goods to Rwanda have been prohibited by Rwanda authorities,” the ministry said, describing the export-permit system as a “technical non-tariff barrier” to trade. “In effect, this is a trade embargo on bilateral trade with Uganda.” The two East African nations have been at odds since last month, when Uganda accused Rwanda of blocking their citizens from crossing a border crucial to trade. Source: Bloomberg

There is general consensus among economists and politicians on the African continental that the African Continental Free Trade Area (AfCFTA) will have enormous economic benefits if it’s ratified and operationalized. The consensus was expressed at the 5th EPRN Annual Economic Research Conference held at Kigali Convention Center yesterday organized under the theme: Africa continental free trade area: challenges and opportunities. When this African market is fully operationalized, Rwanda’s export will increase by 22% and that of Uganda and Tanzania will increase by 21% while that of Kenya will grow by 10%, according to Dr. Andrew Mold, the officer-in-charge of United Nations Economic Commission for Africa (UNECA) Office for East Africa. As a result, revenue generated from these exports in the EAC according to this UNECA study will increase by US$1 billion, job creation will increase by between 0.5m and 1.9m and consumer welfare gain will increase by US$1.4 billion. Citing a study, Dr Mold added that at the moment, the East African Community as a block export 51% of its capacity while individual countries like Rwanda export 63% of its capacity, Tanzania 38%; Uganda 70%; Kenya 53% and Burundi 63%. This means that currently, none of the EAC member states export at full potential  -which will dramatically change when the continental free market comes into force as countries on the continental are expected to freely trade with each other more. To illustrate the effect of continental free trade on exports of countries, Dr Mold said that when a single market...

According to Kakande, apart from being tossed up and down, their counterparts have seen heavy charges slapped on them; almost triple the previous amount, something he says has discouraged many Ugandans from crossing into Rwanda. He said no communication has been given to explain the blockage, but many transporters who have persisted and crossed into Rwanda have been subjected to tough conditions including the hike in the road charges. “Our counterparts have slammed hard conditions for our transporters from Uganda and many have now realised and halted crossing into Rwanda,” Kakande said. He added that one truck carrying cassava was last week forced to hire a store at Sofia Trading Centre on the Ugandan side, offloaded the food and left after Rwandan customs officials for several days refused to clear his papers to enable him to proceed to Rwanda. According to Kakande, Rwandan trucks carrying goods to Uganda have also been stopped and ordered to return home. He, however, clarified that cargo trucks travelling under the Single-Customs Territory (SCT), either from Mombasa or Uganda, which pay taxes from the point origin, have been allowed to cross into Rwanda.   Interestingly, Kakande stated, goods from Kenya have found no challenge entering Rwanda but those bearing Rwandan registered number plates are not permitted to return to Uganda. As a result, Kenyan and Congolese trucks and a few Ugandan registered trucks that are carrying goods from Kenya to DR Congo have dominated the border. As a result, the traffic flow on this route...

Ireland’s Ambassador to Tanzania and the EAC Paul Sherlock disclosed that his country would continue to promote trade and development cooperation with EAC. He said that Ireland’s experience within the European Union was that every regional integration process has its challenges which can be surmounted through negotiations by the member countries. Ambassador Sherlock said Ireland would continue to provide support to EAC integration initiatives through Trade Mark East Africa. The Irish envoy was speaking when he paid a courtesy call at the EAC Headquarters where he held discussions with senior officers from the EAC Directorates of Customs and Trade. Director of Trade at the EAC Secretariat, Alhaj Kibowa informed the Ambassador Sherlock that the Community was increasingly encouraging bilateral mechanisms among Partner States to resolve non-tariff barriers to trade. He said the Community had embarked on ambitious infrastructure development in the roads, railways, ports and energy sectors to spur economic growth and trade in East Africa. Source: Catholic Radio Network

The government is mulling the reduction of the number of State agencies involved in cargo verification processes, in a renewed effort to address delays at ports of entry and border posts. East African Community and Regional Development Cabinet secretary Adan Mohamed yesterday said discussions are currently at the ministerial level to have only four agencies involved in the process. They are Kenya Ports Authority, Kenya Revenue Authority, Kenya Bureau of Standards (Kebs) and Kenya Railway Corporation which is currently overseeing cargo evacuation through the Standard Gauge Railway. The move, Adan said, will reduce the number of agencies involved in cargo handling processes (mainly verification) from 27. National Assembly These will see Kenya Plant Health Inspectorate Service (Kephis), Port Health Services, Anti-Counterfeit Agency, Department of Weights and Measures, among others kicked out of the port. A proposal is expected to be tabled in Parliament next week as the government seeks the national assembly’s approval on the move before its implementation. The ministry is also keen to reduce frequencies in 100 per cent cargo verifications where Kebs will be required to accept all Certificates of Conformity issued by its contracted agencies at the point of origin. If approved, the move will affect all ports, Inland Container Deports and border points where long and tedious verification processes have been blamed for delays in clearing of cargo. Adan said experience at border points when goods are coming in or going out has been painful because of significant number of operators.  “We have 27 agencies operating...

Industry analyst Dynamar has released its East and Southern Africa (worldwide) Container Trades 2019 by Darron Wadey, noting South Africa struggled in 2017 but has now seen a return to growth. The East Africa, Southern Africa and Indian Ocean Islands trade, abbreviated as ESAf, has a coastline stretching some 21,000 kilometers, with fronts on the Atlantic and Indian Oceans. Only part of South Africa and all of Namibia possess South Atlantic coastlines. In 2017, the total value of the ESAf economies reached $737 billion, less than one percent of the global economy. Southern Africa is dominant in the region regularly accounting for around 60 percent of the total. East Africa is however growing quickly and has seen its share rise from 34 percent in 2013 to 40 percent in 2017. South Africa experienced a five percent drop in GDP from $367 billion in 2013 to $349 billion in 2017. This is as much an issue of a weak South African currency against the U.S. Dollar than anything else, says Wadey. However, in the five-year period to 2022, Dynamar expects the ESAf region’s economy to grow by $268 billion to $1,006 billion, with South Africa set to return to sustained growth but at a lower rate. 22 ports are called at by intercontinental liner services. Five are located along the East African coast, 10 in Southern Africa, with the rest being located on Indian Ocean Islands. The two largest ports continue to be Durban (2,700,000 TEU) in South Africa and Mombasa...

Uganda has refuted claims by neighboring Rwanda that it closed her borders leaving Rwandans stranded.   In a statement released on Wednesday, Hon.Sam Kuteesa the foreign affairs minister says since February 28th when the government of Rwanda released an advisory against the travel of its nationals to Uganda, flow of traffic from Uganda to Rwanda has been continuing normally.   The minister adds that 41 transactions have been processed at Cyanika border post, 85 at Katuna border ( for light vehicles that were being allowed to cross over) and 311 at mirama hills.   He however notes that exports from Uganda have been prohibited by the Rwandan government but authorities are only allowing goods destined for the Democratic Republic of Congo or other places through Rwanda.   He also blames the Rwandan authorities of banning the crossing over of vehicles carrying goods from Rwanda to Uganda, and introducing an export permit for those that intend to export goods to Uganda. "This is a technical and non-tarrif barrier to trade, to which there has been no successful applicant. In effect, this is a trade embargo on bilateral trade with Uganda" the minister warns.   Hon. Kuteesa reiterated that the Ugandan borders remain open and operating normally. "Government of Uganda is not restricting any movement of people and goods from Uganda into Rwanda. However, there have been anf remain restrictions on the movement of goods and people from Rwanda destinef for Uganda" he further warns.   He says that Uganda remains committed...

Kenya now sees the standoff as a threat to trade and regional integration The stand-off between Uganda and Rwanda is now proving to rattle Kenya as the East Africa economic powerhouse fears for a drop in trade volumes, in the wake of dwindling exports to her neighbours. Nairobi has now expressed concerns that a prolonged diplomatic row between the two hinterland states will hurt trade, a move that could also affect business at the Port of Mombasa which is a key entry and exit point for cargo traded along the Northern Corridor. The Northern corridor mainly serves Kenya, Uganda, Rwanda and Burundi with Uganda being the biggest transit destination for cargo imported through Mombasa. Uganda controls about 73 per cent market share of transit cargo at the Mombasa facility with motor vehicle units being among the top transit cargo. South Sudan accounts for about 10.6 per cent share, DR Congo (5.7%), Rwanda (3.3%) Tanzania (2.6%) and Burundi (1.1%). Uganda-Rwanda standoff The tiff between the two East Africa Community (EAC) member states has been simmering for years, but worsened recently when Rwanda closed its borders mainly the Gatuna border post. The Rwandese government cautioned its citizens against travelling to Uganda. The tension has also seen Ugandan citizen remain hesitant from making cross border movements, a move that has affected trade and day-to-day activities by locals living on either side of the borders. Both countries have traded accusation of interference with each other’s internal affairs where Rwanda has accused her neighbor of...

Citizens of Rwanda and Uganda are hoping that regional leaders from the East African region and beyond can intervene with a view of resolving the ongoing border and diplomatic standoff between the two governments. On Wednesday, Uganda’s foreign ministry issued a statement clarifying that it has not closed its border with Rwanda. The same statement however listed several actions that have been taken by Rwanda to frustrate movement of goods and people across their common border, including ; Rwanda has prohibited export of Ugandan goods to its country. Goods from Rwanda have been prohibited from crossing into Uganda. Rwanda has implemented a trade embargo on bilateral trade with Uganda. This is the latest installment of the border standoff that is two weeks old now. Rwandan authorities have repeatedly insisted that their common border with Uganda is open, explaining that the temporary restrictions at the main Katuna border crossing are to facilitate ongoing refurbishment of the border post. Rwandan authorities, including president Paul Kagame have however explained that the ongoing diplomatic tussle with Uganda, has been going on for two years now, hence recent actions including a travel advisory issued against Uganda. In this article, we look at the different government officials from both countries, who have issued statements about the standoff, and explore possible ways of resolving the dispute. Rwanda minister vs Uganda spokesperson on Twitter Following the restriction of border crossings at the Katuna on February 28, Uganda’s government spokesperson Ofwono Opondo and Rwanda’s state minister in charge of East...