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Africa’s transport leaders drive free trade agenda

National development across Africacontinues to support the commitment undertaken by the 54 members of the African Union in Addis Ababa, Ethiopia in November 2016 to create a continent-wide free trade area.  At the helm of this initiative is Africa’s transport sector, taking continuous strides to unlock cross-border opportunities for intra-African trade and development. There is a much to be gained from a free trade area for Africa, as intra-African trade is the lowest of any region in the world at a mere 10%.  A properly executed free trade area could change the status quo and transform Africa. As projects and initiatives in support of transport infrastructuredevelopment to boost intra-African trade continue to crop up across the continent, Africa’s transportleaders take action to demonstrate their vision of modernised transport and free trade for the region. . The Federal Republic of Nigeria has most recently reaffirmed its commitment to intra-African trade and development with the confirmation of The Honourable Chibuike Rotimi Amaechi, Nigeria’s Minister of Transport, to join the strategic round table discussions that will be held during the 6th annual African Ports Evolution Forum in Durban, South Africa this October. The Honourable Amaechi’s presence in Durban this October alongside Kenya’s Principal Secretary of Maritime and Shipping, Nancy Karigithu and South Africa’s Minister of Transport, The Honourable Joe Maswanganyi will catalyse the ensuing strategic pan-African discussions for cathartic expansion and modernisation of ports, corridors and multi-modal connectivity. The African Ports Evolution Forum, now in its 6th year, is an annual initiative created in response to Africa’s transportinfrastructure gap. The initiative unites ports authorities, Ministries of Transport, terminal operators and rail operators to support the scale of development currently underway across the continent.  Not only will Ministries of Transport from Nigeriato Kenya to South Africa be in attendance but also myriad ports authorities from Namport to Djibouti Ports and Free Zone Authority...

South Sudan urged to delay polls and focus on peace deal

Experts and civil society groups on Wednesday urged South Sudan to delay conducting general elections early next year and instead focus on the implementation of the August 2015 peace deal to end over three years of civil war. The South Sudanese Network for Democracy and Elections (SSuNDE), a network of more than 70 civil society organisations, said the current situation in South Sudan makes it practically impossible to conduct credible elections within the remaining time frame of the peace deal, which is set to expire in March 2018. The activists said the country has not completed preparations of legal frameworks necessary for elections as provided for in the pact known as the Agreement on Resolution of Conflict in South Sudan (ARCSS). “The delay to fully complete the amendments of these legislations at the moment makes it quite unrealistic for the country to conduct elections by March 25, 2018,” the group said in a joint statement issued in Juba. POLITICAL PARTIES “In such an unsafe environment, it is evidently difficult for National Elections Commission, political parties, civic groups and electoral candidates to perform elections operations successfully,” it added. The East African country has been embroiled in the conflict that has taken a devastating toll on the people and created one of the world’s fastest growing refugees crisis as some four million people have been displaced both internally and externally, according to the UN. A peace deal signed in August 2015 between the rival leaders under UN pressure led to the establishment...

EAC tells South Sudan to comply with Treaty

South Sudan has been directed to waive visa requirements for all the East African Community partners and offer a duty-free market for all the goods originating from the EAC states. The EAC Sectoral Council of Ministers responsible for EAC Affairs and Planning, during their meeting in Arusha between August 20 and 25, said that for South Sudan to fulfil its ascension for the Community, it is expected to meet the compulsory integration requirements of the Treaty. This means that South Sudan has to align its Customs administration with the EAC Customs Union. Juba will have to introduce zero duty on goods and services to the other partner states and implement the EAC Common External Tariff, where imports from countries outside the region are subjected to the same tariff when sold to any partner state. Rules of origin Also, goods moving freely within the region must comply with the EAC Rules of Origin and with provisions of the Protocol for the establishment of the region’s Customs Union. The oil rich nation was also directed to make its contribution to the EAC budget and establish requisite institutions like a revenue authority. “It is also a requirement to actively participate in all policy meetings of the EAC to enable decision-making, which is based on consensus by the partner states,” said the Sectoral Council in its report. South Sudan became the sixth member of the EAC after signing an Ascension Treaty last year at the Heads of State Summit in Dar es Salaam. It...

Payments boom in East Africa indicates rise in trade flows

Traffic on the global payments network Swift has grown by 20.1% in East Africa over the past year, indicating an increase in trade flows with and within the region. East Africa has outperformed the total growth for Swift globally, which amounts to 8.2%. The figures released by Swift this week also show that intra-regional traffic in the region is up by 19.8% compared to 2015, now accounting for 69% of payments traffic in East Africa. Since 2013, the average number of daily messages in the region has almost doubled, from 15,234 to 27,907 in 2016. According to Swift’s head of Sub-Sahara Africa, Denis Kruger, the notable growth in Swift traffic volumes “could indicate an increase in trade flows, both within the East African region and between East Africa and other countries”. Swift research has shown that its traffic data is closely correlated to economic activity. A rise in traffic volumes in therefore a sign of a long-term growth trajectory for East Africa, despite challenging global conditions, the company says. The figures, Swift notes, reflect the success of the East African Payment System, which was established by the East African Community in 2013 with the aim to reduce transaction time and lower the cost of doing business in the region. The multi-currency system, which operates on the Swift network, links domestic payments systems in Kenya, Tanzania, Uganda and Rwanda, making cross-border fund transfers within the countries easier, supporting the free movement of goods, labour and services. The rest of the African continent...

EAC currencies seen to remain strong in Sept

The currencies of five member states, Tanzania, Kenya, Uganda, Rwanda and Burundi, showed minute fluctuation in either sides raging between -2 and 11 units. Uganda currency firm The best currency was Uganda’s shilling that appreciated by 11/- to 3,605/- up from 3,616/- at August 1st. The shilling held its position firmly yesterday since it was underpinned by low dollar demand from commercial banks and importers in the manufacturing and telecommunications sectors. The second best was Kenyan that gained by 1/- yesterday to 103/- from 104/- the first day of last month. Tanzania shilling loses On other hand the Tanzania shilling, in a month under review, depreciated more compared to its peer units. The shilling opened last month at 2,242/- a greenback but slipped to 2,246/- yesterday to start a month in slightly bad foot. “The impact for the fluctuation of two or five shillings is insignificant, but is something,” Leonard Joseph, an economist said. Kenya shilling upbeat Kenyan shilling yesterday opened the trading floor at a stable note and traders said it may start to strengthen. However, the shilling of the biggest economy in the bloc—depreciated last Friday after the Supreme Court nullified August 8th presidential election—on month basis marginally gained by 1/- to 103/- from 104/- of August first. The shilling and alongside Kenyan shares and dollar bonds had plunged on Friday after the court backed a petition brought by opposition leader Raila Odinga and declared President Uhuru Kenyatta’s election victory invalid. But traders said the shilling could start...

Dar best opportunity city in Africa: PwC

The report ‘Into Africa The continent’s Cities of Opportunity ‘by PwC concentrates on the continent’s 20 cities which were judged as most dynamic and future focused. The report places Dar at top ahead of Lusaka, Nairobi, Lagos and Accra on opportunity index. Others on top ten lists are Abidjan, Kigali, Addis Ababa, Kampala and Cairo. According to the PwC survey, they structured the report around the critical issues of the business community, as well as those of the office holders and other public authorities who are responsible for improving the collective life of each city examined here. “African cities when being assessed need to be looked at through a different lens, as current standings and future potential tell different city stories,” the report said. The cities were contested around economic opportunities which are driven by demands of the emerging middle class— consumers, technology, infrastructure, tourism, and financial services. Despite scoring high on opportunity index Dar es Salaam was not featured in top ten overall index after being placed at position 15. Three East African cities Nairobi, Kampala and Addis Ababa featured in both top ten indices—opportunity and overall. Others are Accra, Lagos, and Cairo. Also Dar city was not in the top ten attractive Foreign Direct Investment FDIs. Nairobi leads as the best city in Africa that attracted most FDIs followed by Accra and Lagos. Others are Johannesburg, Cairo, Casablanca, Abidjan, Tunis, Algiers and Lusaka. The report is an eye-opener to policy since Dar city failed to feature in other...

EAC specks six potential areas to guide 2018/19 budget formulation

The EAC Secretary General, Amb. Liberat Mfumukeko said during the opening of the conference in Arusha recently that the Pre-Budget Conference is happening at a time when EAC is finalizing preparations for the 5th EAC Development Strategy 2016/17 – 2020/21. “I am glad that priorities and development objectives as well as strategic interventions therein stipulated have been validated by Stakeholders’’ The six key areas to be considered in the formulation of the next budget are further liberalisation of the free movement of labour, goods and services, improved cross-border infrastructure to ease the cost of doing business and enhanced regional industrial development. Others include agricultural productivity and transformation through investment in key priority areas, implementation of the roadmap for the attainment of the EAC Monetary Union, strengthen peace, security and good governance and institutional framework for the EAC Political Confederation. Moreover, improve socio-cultural welfare of the people in the region and institutional transformation are among the crucial areas that will be considered in guiding the budget formulation as well as corresponding activities for 2018/19 FY. Amb Mfumukeko urged the participants to appreciate the role of the Organs and Institutions of the Community, as well as the Partner States in moving the integration process forward as they discuss the priority areas, strategic interventions and activities to be implemented over the financial year 2018/19. Source: Daily News

Finally, Juba Is Done for EALA

EALA Senior Public Relations Officer Bobi Odiko told the 'Daily News' here yesterday that the newest East African Community (EAC) partner state corrected the anomalies that previously contravened article 50 of the Treaty that establishes the EAC. "I wish to confirm that South Sudan has corrected the previous anomalies and has completed the elections of nine members to the EALA," Mr Odiko said, hinting that the EALA Clerk, Mr Kenneth Madete is in possession of the newly elected members. It was earlier reported that South Sudan President Salva Kiir had appointed the nine members against the legislation that directs partner states' parliaments to elect members who are not members to their respective houses. A case was filed before the East African Court of Justice (EACJ), which issued temporary injunction against the swearing in of the new members. Juba later revoked the appointment of members when the substantive application was due to be heard inter-party.  Articles 48 and 50 of the Treaty provide for the membership and election of members of the EALA. EALA current membership should be 52, with nine elected members from each of the five EAC partner states and seven ex-officio members. Members are elected through voting by their respective national assemblies The Treaty provides for members to represent the diversity views in their national assemblies and ensure that the selections meet certain criteria for gender balance. However, EALA constitution remains distant because Kenya, which recently elected Members of Parliament (MPs) has not presented EALA members to the...

Cyclists in EAC integration awareness drive

A team of 26 cycling volunteers from six East African community member countries are on a 45-day cycling tour campaigning to raise more public awareness about the East African integration. Dubbed, ‘East African Community Bicycle Tour’, the non-competitive cycling race was for the second time organised under the ‘Campfire Logs Guild’, an initiative that brings together different East African youth communities mainly to create Unity, Peace and togetherness to strengthen the awareness of the EAC integration among member countries’ communities through cycling. John Bosco Balongo, the Tour Team Leader, said the tour has helped the team members experience the current image of EAC country members’ cooperation and took an opportunity to raise awareness on the importance of the community’s cooperation. “We have been able to ride together, struggle together and chill together to signal that the community members can share successes, risks and opportunities towards the same destiny by building a perfect regional integration, all through our cycling shared passion, we expect more youth to join us since the tour is free and open to all,” he said. Seraphine Flavia, the Acting Director General, Coordination of East African Community Affairs at the Ministry of Foreign Affairs and Cooperation, praised the team’s spirit in raising awareness of the regional integration among the member countries. “Our country is behind this encouraging and inspiring initiative and we will push for advocacy in different EAC forums to get it supported,” she said. The team is comprised of 21 males and five females, including three...

KAM wants export zone firms exempted from polythene ban

Manufacturers are now calling for the plastic bag ban to be lifted on products from export processing zone (EPZ) factories, saying it is crippling sales. The Kenya Association of Manufacturers (KAM) has written to the National Environment Management Authority (Nema) arguing that the ban should not apply to EPZ firms since the destination countries have their own environmental management policies. “EPZ firms have made complaints that their exports (garments) are affected by the plastic bag ban because packaging is regarded as secondary packaging,” said KAM sector manager Samuel Matonda. “The plastic bag packaging for a shirt for example — the see-through paper — that enables you to see what you are buying is banned, so exports have stalled.” The EPZ firms say this is resulting in loss of export revenue and foreign exchange income across many industries. Sales of EPZ firms in the country hit Sh63.1 billion last year compared to Sh60.8 billion in 2015, according to the Economic Survey 2017. Some 62 zones are privately-owned while three are publicly owned. The petition by KAM to Nema on the EPZ products is among a host of other requests for exemptions made by the manufacturers to the environmental watchdog. Source: Business Daily