South Sudan will embark on implementing major infrastructure development projects in an effort to open the landlocked east African nation to trade opportunities as it seeks to recover from a devastating five-year-old conflict. Transport minister John Luk Jok said Monday that with the prospects of peace returning to the war-torn country, the government would embark on building new roads and establish rail and air infrastructure in a bid to tackle the country’s current infrastructure challenges. He said the government also plans to erect new rail lines to connect the country to Ethiopia, Sudan and Uganda respectively. He added that the government is also searching for potential investors to build the country’s second international airport in Tali, a remote area some 80 kilometers north of the capital Juba. “South Sudan needs to build its transport sector and particularly the air transport and road infrastructure. We must continue to build our roads because roads are the most ideal modes of transport,” Jok said. According to the World Bank, South Sudan’s road network remains in very poor condition, especially in rural areas that are largely inaccessible during the six-month rainy season (from April to October). “South Sudan in the near future can be an international hub, we have this idea of building a new airport at Tali, the location is so central that it can attract so many big international airlines,” Jok said. The official spoke during an occasion to inaugurate the country’s first modern terminal Juba International Airport ahead of peace celebrations...

THE East African Community (EAC) is optimistic of realising its integration agenda, with development partners injecting 500m US dollars in the past five years, to jack up the agenda. The figure entails both direct and technical support to various aspects of the EAC integration. Addressing the Second Community’s Development Partners Forum here, EAC Secretary General, Ambassador Liberat Mfumukeko was confident about the prospects of realising the integration agenda, thanks to the support from development partners. “With this revamped collaboration, the EAC has been able to spearhead the integration agenda with remarkable speed,” noted the Secretary General. The main contributors to the EAC Development Programmes include Germany, the USA through the United States Agency for International Development (USAID), European Union (EU) and the African Development Bank (AfDB). “The EAC has transformed itself from a loose co-operation framework into a fast-emerging, solid and dynamic regional economic bloc... it has also evolved strong institutions and vigorous programme delivery, which are already making an impact on the economies of the region,” he said. The economic bloc was recently ranked as first among the eight Regional Economic Communities in the Africa Regional Integration Index Report. launched in Addis Ababa through the collaboration between the UN Economic Commission for Africa (ECA), the African Development Bank (AfDB) and the African Union Commission (AUC). Ambassador Mfumukeko, however, called for more partnerships with the business community and, in particular, the East African Business Council(EABC) in industrial development through investment in private sector development and improvement of business environment. The...

Major port operator DP World is focusing on innovation and infrastructure and development to stay ahead of the curve. Guest of Honour at the opening of the 9th Seatrade Maritime Middle East event in Dubai this week was H.E. Sultan Ahmed Bin Sulayem, group chairman and ceo of DP World, chairman of Dubai Ports, Customs and Free Zone, and chairman of Dubai Maritime City Authority. Seaborne trade forms “the largest, cheapest and most efficient part of the logistics chain”, he said in remarks preceding the Port Technology conference session, “but still needs to continuously implement innovation” or risk disruption by outside players. It is estimated that new technologies can account for as much as a third of the predicted healthy growth in trade between now and 2034, he added - despite the current spectre of “trade wars and protectionism”. He personally dismissed these threats as “more emotional and a negotiating tactic” than likely to have any “real effect”, he added, since “eventually it will come to [sitting down at] a table where people will have to trade.” Dubai itself has a particularly bright trade future because it serves a region of almost 2.5bn people, he continued, including a lot of cargo bound for Africa, “so naturally is one of the points on the Belt and Road Initiative.” Hence DP World is not letting up on “infrastructure development,” he said, including “innovation in ports in particular.” For example, it has developed its own blockchain system that has gone live and is...

THE East African Community (EAC) is optimistic of realising its integration agenda, with development partners injecting 500m US dollars in the past five years, to jack up the agenda. The figure entails both direct and technical support to various aspects of the EAC integration. Addressing the Second Community's Development Partners Forum here, EAC Secretary General, Ambassador Liberat Mfumukeko was confident about the prospects of realising the integration agenda, thanks to the support from development partners. "With this revamped collaboration, the EAC has been able to spearhead the integration agenda with remarkable speed," noted the Secretary General. The main contributors to the EAC Development Programmes include Germany, the USA through the United States Agency for International Development (USAID), European Union (EU) and the African Development Bank (AfDB). "The EAC has transformed itself from a loose co-operation framework into a fast-emerging, solid and dynamic regional economic bloc... it has also evolved strong institutions and vigorous programme delivery, which are already making an impact on the economies of the region," he said. The economic bloc was recently ranked as first among the eight Regional Economic Communities in the Africa Regional Integration Index Report. launched in Addis Ababa through the collaboration between the UN Economic Commission for Africa (ECA), the African Development Bank (AfDB) and the African Union Commission (AUC). Ambassador Mfumukeko, however, called for more partnerships with the business community and, in particular, the East African Business Council(EABC) in industrial development through investment in private sector development and improvement of business environment. The...

In an effort to reach common ground on the harmonisation of domestic taxes in the region, EAC partner states have agreed not to levy value added tax on some essential goods and services that are consumed domestically. They have also agreed to offer tax incentives under an agreed set of rules and regulations to avoid unhealthy tax competition. The EAC’s Committee on Fiscal Affairs noted that although the best practice is to subject all domestically consumed goods and services to VAT, the reality in all partner states is that, for various considerations, some goods such as medical supplies and educational materials are given some tax relief. Currently Kenya levies 16 per cent VAT on books and other learning materials and eight per cent VAT on fuel. In Uganda, Rwanda, Tanzania and Burundi, learning materials have been zero rated. Kenya’s standard VAT rate is 16 per cent, while Uganda, Tanzania, Rwanda and Burundi are at 18 per cent each. However, a domestic taxes harmonisation progress report prepared by Kenya’s Ministry of East African Community Affairs shows that the process of harmonising domestic taxes (VAT, income tax and excise tax) is moving slowly largely because some member states think it will lead to loss of revenue. The partner states had criticised the domestic tax harmonisation policy for failing to provide guiding principles, and ordered that the document be reviewed by February. However, some partner states like Uganda had not submitted their country-specific comments on the draft policy by the time of its...

The African Development Bank (AfDB) will fund infrastructure projects by Eastern African countries to the tune of $2 billion over the next four years. The funding, unlocked by the recently approved East Africa Regional Integration Strategy Paper (RISP), could be scaled up to $3 billion in the same period, bank officials said. The Strategy Paper lays out the roadmap to accelerated regional integration through joint infrastructure development, and covers regional transport connectivity, energy infrastructure, ICT connectivity, and management of transboundary water resources. The East African Community (EAC) Secretariat has been driving the push for regional infrastructure that would increase competitiveness and bring about structural transformation. The Strategy Paper was developed in consultation with regional economic communities (RECs) and is aligned with key REC strategies for the EAC, the Common Market for Eastern and Southern Africa (Comesa) and the Inter Governmental Agency on Development (Igad). “The key objectives of this four-year strategy are fast-tracking structural transformation, increasing trade and promoting financial sector integration and inclusion,” said Nnenna Nwabufo, AfDB deputy director general for East Africa. The funding programme also covers Djibouti, Eritrea, Ethiopia, Seychelles, Somalia, and Sudan. In Tanzania, AfDB is offering to finance the country’s 2,100MW Stiegler’s Gorge hydroelectric plant and the modernisation of the Dodoma Airport. In May, AfDB president Akinwumi Adesina said that President John Magufuli of Tanzania was considering seeking funding for the Stiegler’s Gorge project. “We are looking at that with him and the government, but we are also very keen on alternative sources of energy,...

Dar es Salaam. Massive investments in infrastructure, real estate, technology, hospitality and construction in Tanzania, Ethiopia, Kenya, Uganda and Rwanda have made East Africa the most preferred investment destination on the continent, a new study shows. In its study findings titled Africa Attractiveness Report 2018, Ernst & Young (EY) says East Africa last year overtook its western, southern and northern Africa peers in attracting foreign direct investments (FDI) for the first time in history. East Africa bagged 197 FDI projects in 2017, EY says, far above the 185, 172 and 162 projects registered in the north, west and southern Africa, respectively. The 197 new projects in East Africa were an 82 per cent improvement over the 2016 investments. “The project numbers for 2017 made the region Africa’s major FDI hub,” the report reads in part, adding that Kenya, Ethiopia and Tanzania received the highest number of FDI projects – 67, 62 and 35 respectively. The 35 projects registered in Tanzania were a 59 per cent improvement over the 22 registered in 2016. “Nine of the projects were in real estate, hospitality and construction (RHC),” the report states, attributing the improvement to government investments in related infrastructure, and private sector investments in the region’s hydrocarbons sector. Tanzania is currently building a 300-kilometre stretch of the standard gauge railway (SGR) between Dar es Salaam and Morogoro. This is part of the government’s wider goal of eventually linking Dar es Salaam to Rwanda and Burundi with high-speed electric-powered train services at a total...

This follows signing of a financing agreement of USD 1.571 Million between TradeMark Africa and Rwanda Revenue Authority Project is part of TMA’s USD 53 Million programming in Rwanda Will focus on adoption of new technologies and inclusion of other trade agencies in a digital platform Kigali, 30, October 2018:  Rwanda Revenue Authority (RRA) and TradeMark Africa (TMA) today signed a financing agreement worth USD1.57 Million. This marks the start of the second phase of the Rwanda Electronic Single Window (RESW). The second phase will be marked by various upgrades which will be implemented up until June 2022.   This support from TMA is part of the USD 53 Million agreement signed in the MOU between TMA and the Government of Rwanda through the Ministry of Finance and Economic Planning.  The funding to RRA is being provided by the United Kingdom’s Department for International Development (DFID) through TMA. Upgrading of RESW will include the following projects – upgrade of the Customs Management System (ASYCUDA World); digitalization of the management and administration of the Authorized Economic Operators Scheme (AEO); Implementation of the Single Transaction Point and Single Sign On features on the Rwanda Electronic Single Window (ReSW); implementation of the Cargo Community System to support Air Cargo business at Kigali International Airport; digitalization of the Advance Ruling process of Customs; digitalization of Advance Passenger Information System; and digitalization of the Special Economic Zones Management and Administration.  Combined, these projects will enable RRA establish a true paperless trade environment in Rwanda. It will...

The global trade wars have resulted in noticeable instability and lower economic growth is some African countries, says the global trade organisation. Keith Rockwell, WTO’s Director of Information and External Relations Division, said the rising US dollar as a result of the trade tensions was also hurting African economies. He said between 2013 and 2017, sub-Saharan African debt levels denominated in foreign currency were up 80 per cent, adding that in non-resource intensive countries the jump was about 18 per cent. Rockwell was responding to the Financial Times that had requested him to explain the impact of the ongoing trade friction between the United Stated and China at the regional dialogue on Challenges for the Multilateral Trading System-Perspectives from East Africa held in the Kenyan capital Nairobi last week. The dialogue was jointly organized by the Friedrich Ebert Stiftung (FES), a German organisation promoting democracy and good governance, social justice and globalization with a human face and the WTO. “Per capita income growth remains sluggish. Rapid increase in the working-age population means that by 2035, the number of people in low-income countries reaching working age (15–64) will exceed that of the rest of the world combined,” he told the dialogue that brought together civil society organisations from Kenya and journalists from Tanzania, Kenya, Uganda, Rwanda and Ethiopia. Rockwell recalled an African proverb that says: “When two elephants fight, it is the grass that suffers most”. “And when global economic powers are engaged in trade wars it is African countries that...

The Kenya Association of Manufacturers, the representative organization for manufacturing industries in Kenya, has confirmed plans to deepen its trade relations with other members of the East African Community (EAC). The East African Community is a regional intergovernmental organisation of 6 Partner States, including: the Republics of Burundi, Kenya, Rwanda, South Sudan, the United Republic of Tanzania, and the Republic of Uganda, with its headquarters in Arusha, Tanzania. In line with these developments, Dr. Susan Komen Koech, Principal Secretary for the State Department of the EAC in Kenya, recently held a consultative meeting with the Ministry of EAC and Regional Development in Kenya and the Kenya Association of Manufacturers, led by its Chairman, Sachen Gudka. Dr. Koech, along with representatives from both sides, discussed issues of trade in the region that are of concern to Kenyan manufacturers. “Our main goal is to provide a conducive environment for Kenyans to trade in the EAC region,” Dr. Koech explained. Her sentiments come at a time when the East African Community has been making major moves within the region and abroad. In fact, on the same day, officers from different ministries, along with the Ministry of EAC and Regional Development in Kenya, discussed a proposed EAC Mining Bill before forwarding it to East African Legislative Assembly (EALA), the legislative arm of the East African Community. During the same week, the EAC Bureau of Speakers also met on the sidelines of the 139th IPU Assembly in Geneva. The IPU Assembly (formerly known as the...