Inefficient border procedures are leading revenue losses of over 5 per cent of the Gross Domestic Product in some African countries, a roundtable conference on trade facilitation at the East African Community (EAC) headquarters in Arusha, Tanzania, has heard. Speaking at the one-day conference on Thursday, James Kisaale, an assistant commissioner at Uganda Revenue Authority, urged sub-Saharan Africa countries, including EAC members, to embrace formalities like automation, as well as simplify and harmonise documents, and ease access to information to help lower cost of trade. Citing a 2013 Organisation for Economic Cooperation and Development (OECD) report, Kisaale said reducing global trade costs by one per cent would increase global income by more than $40 billion, with developing countries being the biggest beneficiaries. Organised by the EAC Secretariat to review and fast-track the implementation of the World Trade Organisation (WTO) Agreement on Trade Facilitation (TFA), the roundtable brought together EAC development partners, as well as customs and trade experts from the EAC Secretariat and member states’ ministries of trade. The conference brought together development partners who will work with the EAC in the implementation of the TFA. While opening the roundtable, the EAC director general for customs and trade, Kenneth Bagamuhunda, said trade facilitation was an integral part of the EAC Customs Union Protocol which explicitly provides for reduction in the number and volume of trade documents. “Trade facilitation also provides for the adoption of common standards of trade documentation and procedures, coordination and facilitation of trade and transport activities. There...

Twenty-two Rwandan Traders could start enjoying quick and free customs services at all points across the East African Community. The new traders who signed the licence agreement that takes immediate effect, join 3 others in the same category. Rwanda Revenue Authority – the country’s tax body yesterday signed a deal with the traders which will see them exempted from customs fee at all customs points, sea ports and airports across EAC. The deal, according to Rwanda Revenue Authority officials, is specifically meant for compliant taxpayers whose annual turnover is not below Rwf200 million ($237,000). William Musoni – the commissioner in charge of customs at Rwanda Revenue Authority told KT Press that the selection is thoroughly conducted with strict procedures. “The first thing we consider is to ensure these traders selected have an annual turnover of at least Rwf200 million. They should also have an address and should be in the business for the last two years,” Musoni said. There are only 45 traders holding customs-free service license in the East African Community’s 6 member states. Under the new license, their goods – either exports or imports will be taking less time compared to those with no license. For instance, Fred Seka – one of traders said, “With the new customs free licence, goods that spent 5 days in transit from Mombasa to Kigali will now take 3 days.” Trade Minister Vincent Munyeshyaka says the new licence is a sign that calls for other traders to follow suit and enjoy the services. “These...

Chinese investment in Africa gets a lot of attention in the media. In fact, you’d be forgiven for thinking China is the only Asian country with an interest in the African continent if you rely on the mainstream media for your business and current affairs fix. This isn’t the case, of course. One of East Africa’s most intriguing financial relationships is between the relatively small nations of South Korea and Rwanda. It’s a relationship that dates back more than a decade now and the countries have a lot more in common than you might at first expect. These days, their strongest bond is a flair for technology and innovation – something Rwanda also shares with fellow investors Japan, India and South Africa. And ten years after South Korea’s KT Corporation first helped Rwanda built its existing communications infrastructure, the telecoms giant hopes its base in Rwanda will open doors to the wider African continent. Partners in innovation Unlike China, which excels at manufacturing processes, it holds onto a global reputation as a country that fails to innovate. Meanwhile, its tiny neighbour South Korea brought us the first MP3 player, the first tablet computer, the first smartwatch, the first internet cafe and so much more. South Korea was also the first country to successfully clone a dog. It pioneered the science of nanomedicine and developed a preventative HIV vaccine – the first to be approved for human trials. South Korea is true innovator and this is the most important tie it has...

A decision on whether all the East African Community partner states will sign the European Union-EAC Economic Partnership Agreement (EPA) will be known in November during the Heads of State Summit. Uganda's President Yoweri Museveni, who is the chairman of the EAC, held a meeting with the European Commission President Jean-Claude Juncker on September 27 to present the concerns raised specifically by Tanzania on the EPA, leading to the delay of signing the agreement. "I arrived in Belgium on a three-day working visit. As chairman of EAC, I will hold discussions with the EU over EPA and other related issues," confirmed President Museveni on his Twitter handle. He was accompanied by the EAC Secretary-General Liberat Mfumukeko, ministers of trade from each partner state and assistant ministers or permanent secretaries. Betty Maina, Principal Secretary in Kenya's Ministry of EAC Affairs, said President Museveni presented the concerns raised by Tanzania on why it was unwilling to sign EPA, seeking clarification from the EU. "We expect that EU will respond to the concerns before November. A decision and partner states' position will then be known in November," said Ms Maina. Contentious issues Tanzania is concerned that signing a bad EPA will compromise the region's interests in subsequent trade negotiations. Among the contentious issues is that EU unilaterally puts embargos on trade under the EPA while Article 136 of the EPA still refers to the same agreement that the EU has used to put an embargo on Burundi. Tanzania also says that EAC partner...

The government of Tanzania on Friday awarded a 1.92 billion U.S. dollars contract to a Turkish firm to construct a 336-kilometer standard gauge railway (SGR) line from Morogoro to Makutupora in the east African nation's political capital Dodoma. State-run Reli Assets Holding Company Ltd (RAHCO) that oversees the construction of the SGR said the Turkish firm Yapi Merkezi Insaat VE Sanayi As was the appointed contractor on the project and will design and construct the high-speed electric railway line. Yapi Merkezi, a privately-owned Turkish contracting company, specializes in rail engineering, design, manufacture and construction. "Fifteen contractors bought bid documents, but after careful assessment of the bids, Yapi Merkezi met both the technical and financial requirements," RAHCO said in a statement. "The new railway line will have a capacity of transporting 17 million tonnes of cargo each year, with a 35 tonne axle load capacity. It will be used by electric trains moving at a speed of 160 kilometers per hour," added the statement. Founded in 1965 and headquartered in Istanbul, Yapi Merkezi has also recently won similar big rail construction deals in Ethiopia. The Tanzanian government wants the new standard gauge railway to replace the existing narrow gauge railway line built some 112 years ago. In February this year, the same Yapi Merkezi company was awarded by the government a deal worth 1.22 billion dollars in joint venture with a Portuguese company to build a 300-kilometer SGR line from the port of Dar es Salaam to Morogoro. The government did...

AEO programme in its 2nd $300k Project has been financed by USAID Rwanda. The AEO programme at regional level started in 2008 and ended in 2013 under pilot Phase I. 13 Operators were accredited of which 3 are Rwandans. Project is part of broader trade facilitation measures that includes the electronic single window, regional cargo tracking system and single customs territory. Kigali, Rwanda, 28th September 2017 - Rwanda revenue Authority (RRA) have signed MOU’s and awarded certificates of recognition to twenty-two (22) companies in Rwanda who have been granted special customs status as Authorized Economic Operators (AEO). The event was witnessed by the Minister of Trade and Industry, Hon. Vincent Munyeshyaka, Rwanda Revenue Authority (RRA) Commissioner General, Richard Tusabe, Acting USAID Mission Director Leslie Marbury, TradeMark Africa (TMA) Country Director, Patience Mutesi, Private Sector Federation Chairman Benjamin Gasamagera and several business leaders. Speaking at the recognition ceremony, Minister of Trade and Industry, Hon. Vincent Munyeshyaka commended the companies that had attained the special status. “They have consistently demonstrated a very high commitment to comply with customs regulations and security procedures” he said. “An AEO certified company for example is not subject to physical inspections, queuing or immediate audits” The AEO concept is part of a broader compliance strategy to reward compliant traders with simplification benefits.  This reward and encourages compliance and stimulates foreign trade which contributes to economic growth at the national and regional levels. An AEO in Rwanda is an individual, a business entity or government department that is involved in international trade and is duly authorized by the Commissioner of...

Rwanda has risen one position continentally in the Global Competitiveness report 2017/18 to take second place in Africa. The report, published by the World Economic Forum (WEF), has Mauritius in first place and 45th globally, while South Africa came in third in Africa. However, the report’s latest release, published on Tuesday, showed that, globally, Rwanda has slipped six positions from 52nd to 58th. Regionally, Rwanda maintained its position as East Africa’s most competitive economy with Kenya in 91st position and Tanzania in 113th. Uganda was ranked 114th and Burundi 129th. The report’s authors’ noted that Rwanda had maintained top position in the continent largely due to efficient markets and a stable political position. “Rwanda remains among the most competitive African countries thanks to efficient goods and labor markets and a stable political situation that supports robust GDP growth (above 6 percent for the next few years),” the report reads in part. The drop in ranking in global context was explained as a result of decline in health and primary education performance. “Lower health and primary education, and macroeconomic environment’s scores drive most of Rwanda’s decline. In terms of health and primary education, malaria cases rose from about 11,000 per 100,000 people in 2013 to almost 31,000 in 2015 while the primary enrolment rate reduced from 96.1 per cent to 95.1 per cent,” the report reads further. Last year’s inflation rates driven by the prices of food stuff also hurt the country’s overall performance. Rwanda’s inflation rate rose to about 7.3...

Kenya will today take its case to the European Union in Brussels in a last-ditch effort to garner support for the Economic Partnership Agreement deal. Trade Cabinet Secretary Adan Mohamed is leading a Kenyan delegation to the Belgian capital, where he hopes to bring Tanzania on board to take a united stand with its East African Community (EAC) neighbours on the elusive trade pact The delegation will take part in a session of EAC trade ministers with the EU presidency.Ugandan President Yoweri Museveni, who is the current chairman of the EAC Summit, is leading the regional delegation. “Kenya and Rwanda signed the EPA in August 2015, with Kenya ratifying the same in September last year. The move by Kenya was aimed at securing Kenya’s duty-free, quota-free market access in the EU as Kenya along with other EAC partner states seek a solution for all to sign the EPA,” said the CS yesterday in a statement. The EAC Summit held on May 20 this year mandated the chairman to engage with the EU to address concerns that some partner states have on signing the Economic Partnership Agreement (EPA) as a bloc. Main opposer Kenya has put up a spirited fight to have all EAC countries support the EPA as a way of safeguarding unlimited duty-free access of its exports to Europe. The agreement would guarantee EAC traders duty and quota-free access to the EU market in exchange for the gradual opening up of up to 80 per cent of the region’s market...

Rwanda has been lauded for its efforts toward sustainable tourism development by promoting eco-villages and sustainable real estate construction, sustainable home-stays and wildlife viewing in its national parks, as well as the sustainable transportation facilities. Clarence Fernandes, the chairman of Rwanda Renaissance, a Mumbai-India based firm that promotes tourism, trade, investment and culture between India and Rwanda, said such initiatives help make the country more attractive and competitive in the global tourism market. Fernandes was speaking during the World Tourism Conclave and Awards in Mumbai, India on September 26, where Rwanda Renaissance was recognised for supporting sustainable tourism efforts, as well as promotion of bilateral tourism and cultural relations between India and Rwanda by the Global Sustainable Tourism Council. South African Tourism is the other agency on the continent that received a similar award, according to a press release from organisers, Creed Entertainment and Young Environmentalists. The event attracted stalwarts of the global tourism industry, officials from Climate Reality, the UN World Tourism Organisation (WTO), the Global Sustainable Tourism Council, Maharashtra Tourism Development Corporation, and diplomats from different parts of the globe celebrated. Sector players and organisations that promote a sustainable tourism industry were also recognised during the event. The World Tourism Organisation declared 2017 as the year for international sustainable tourism sector development with the theme “Sustainable tourism – a tool for development”, recognising the immense contribution of the sector toward development efforts of nationals. The conference explored the contribution of tourism to the Sustainable Development Goals (SDGs) and...

Uganda has completed and launched the road connecting Ntungamo town, 360km southwest of Kampala, to the Mirama Hills/Kagitumba one-stop border post (OSBP) at the border with Rwanda. Officials at TradeMark Africa (TMA) and the government hope that the new road will drive more transporters to use the route to Kigali. Uganda’s Minister of Trade and Co-operatives Amelia Kyambadde said that traders and transporters are hardly using the road, into which the government has sunk more than $30 million since 2013. Data from TradeMark Africa shows that 27 per cent of the $30 million has been invested in construction of immigration points, warehouses and clearing and forwarding offices, as well as related information communication technology to link Ugandan and Rwandan officials on both sides of the border. The rest of the money was used to build the link road from Ntungamo to Mirama Hills. However, most transporters still prefer the use the Katuna/Gatuna OSBP. The road from Ntungamo through Gatuna to Kigali is 72 kilometres shorter than the one going through Mirama hills. According to some of the drivers, it is better to go through Gatuna because they only drive 87 kilometres in Rwanda territory where the country’s speed limits and road use laws are strict. Sarah Kasheka, the assistant commissioner in charge of business analysis at Uganda Revenue Authority, said the government decided to invest in the Mirama Hills border because it is cheaper and easier to build. Gatuna has a large swamp that will have to be filled before...