The Common Market for Eastern and Southern Africa (COMESA) Business Council (CBC) will this week launch a regional tourism and wildlife heritage handbook to promote the bloc as a single tourist and wildlife destination. The handbook is part of the COMESA Sustainable Tourism Development Strategic Framework that has been adapted by member states as a model to develop national tourism action plans to boost competitiveness of the sector. It seeks to raise awareness on sustainable tourism and wildlife conservation among the 19 member countries, according to the CBC Chief Executive Officer Sandra Uwera. The publication titled, ‘The COMESA Tourism and Wildlife Heritage Handbook’ will be launched during the ongoing 47th Africa World Tourism Heritage Summit taking place in Kigali. Uwera said the handbook showcases the different tourism and wildlife products in all the 19 COMESA countries. “This initiative will promote cross-border linkages and partnerships between stakeholders in the tourism industry in COMESA. It will also help to advocate for responsible business practices towards environmental sustainability in tourism sector.” Osborn Kinene, the Rwanda Eco-Tours boss, said the handbook is a timely intervention that will help market Rwanda as a tourism destination, thus increasing tourism revenues. The publication will operate under the theme “Single Market–Countless destinations”. Rwanda projects to earn $444 million (about Rwf370 billion) from tourism this year compared to $404 million recorded last year. Source: New Times

Asmita Parshotam unpacks the continent-wide agreement aimed at accelerating integration and economic development. The Continental Free Trade Agreement (CFTA) is an Africa-wide free trade agreement (FTA) designed to boost intra-African trade and pave the way for the future establishment of a continental customs union. The CFTA builds on existing Tripartite FTA negotiations amongst three African regional economic communities (RECs): the Southern African Development Community (Sadc), the Common Market for Eastern and Southern Africsa (Comesa) and the East African Community (EAC), although it would like to incorporate all other African RECs too. The decision to establish the CFTA was adopted as early as 2012 by the heads of state at the 18th ordinary session of the African Union (AU), and negotiations officially begun in June 2015. In bringing together all 54 African countries with a combined GDP of more than US$3,4 trillion, the CFTA is an ambitious project that will connect more than one billion people to a variety of cross-continental goods and services through enhanced trade facilitation and greater movement of people and investments. Why do we need it? The CFTA stems, in part, from the realisation that regional integration is stultified and not equitably pursued amongst all African regional economic communities (RECs), and that intra-African trade is at critically low levels compared to African trade with outside partners. The CFTA will address seven priority areas related to trade: policy, infrastructure, finance, information, market integration, boosting productivity and trade facilitation. For the CFTA to be successful there is great need...

Africa must invest in advanced technology as one of the strategies to deal with challenges of climate change. The remarks were made in Kigali yesterday, at a meeting to discuss pathways for how agriculture can contribute to meeting the SDGs. The two day meeting is bringing together a cross section of local and international policy makers, academicians, business leaders and civil society from all over Africa. The Director General, Rwanda Agricultural Board (RAB) Dr Mark Cyubahiro Bagabe told the participants that demanding quality and safety of what is being grown by farmers comes with climate change challenges that require partnerships to overcome. “We are beginning to demand quality and safety of what we grow and eat from production to consumption, if we do that, then we have contributed to conservation. In the face of climate change, drought, floods, emergency of pests and diseases is going to be prevalent. Every country that is growing cereals is being faced with most of these challenges. These challenges will require close partnerships in scientific research, disease resistance and farming systems that conserve the soil stability,” he said. Bagabe said that to mitigate effects of climate change, Africa will for instance need to invest in modern technology that enhances efficient and sustainable use of surface and underground water for agriculture. The East African Sub-regional Coordinator for Food and Agriculture (FAO) Patrick Kormawa reminded the participants that Africa had the resources but needed to re-focus its attention to diversification. He said that while over 60 per...

Rwandan and Tanzanian private sector bodies on Monday reiterated their commitment to collaborate in advocating for elimination of Non-Tariff Barriers (NTBs) between the two countries. Restrictions that result from prohibitions, conditions, or specific market requirements that make importation or exportation of products difficult and or costly continue to trouble business people from both countries and, this was high on agenda of a one-day peer to peer meeting held in Kigali. “Unlike politicians, business people don’t have term limits or constituencies. All that is important is a good doing business environment; and that is what we all desire. We must continuously collaborate, or regularly share views on how best we can collaborate to further make things better,” Stephen Ruzibiza, the PSF chief executive, said. A 15-man delegation represented the Tanzania Private Sector Foundation (TPSF) at the meeting whose objectives included identifying policy and regulatory restrictions that undermine free movement of goods, services, capital and investment between the two countries, besides identifying reasonable response measures. This Rwanda-Tanzania peer to peer meeting is, among others, expected to increase private sector engagement in the bilateral framework to deal with issues pertinent to doing business. Participants said unresolved NTBs and non-conforming measures or regulations which violate certain articles of investment agreement – faced by Tanzanian companies in Rwanda include the requirement from Rwanda Revenue Authority (RRA) to pay US$200 deposit at the border by transporters from Tanzania. Others are hurdles in registering a clearing and forwarding (C&F) company in Rwanda and obtaining the related license...

Railway infrastructure development is an important building block to improving trade across the Southern Africa Hinterland Territories, which comprises three landlocked countries; Malawi, Zimbabwe and Zambia. This is according to Emmanuel Ntshangase, Country Manager of Maersk Line Hinterland Territories - who says access to the Hinterland countries is extremely vital for the growth of the African continent, as each of these countries have a great deal to offer the rest of the world. "For example, Lake Nyasa in Malawi contains more fish species than any other lake in the world, making it a prime location for the export of fish. Furthermore, Zambia is Africa's second largest copper producer and Zimbabwe is the world's sixth largest tobacco producing country." Poor inland connectivity and the related cost to move products inland are among the biggest challenges currently facing landlocked countries with regards to trade. "The World Bank Trading Across Boarders Report, which ranks economies on their ease of doing business, suggests that hinterland Countries currently have room to improve when it comes to moving products inland." Ntshangase attributes the majority of these issues to the high proportion of cargo that currently moves inland via road. "The border crossings and customs processes in these landlocked countries were not designed for the amount of traffic and cargo that currently moves via road, which has occurred due to the use of railways having diminished over the years." Ntshangase explains that increasing the use of rail, which reduces the amount of cargo on the road provides...

South African Department of Trade and Industry plans to assist black industrialists to source new business in Uganda The South aFRICAN Department of Trade and Industry (the dti) will take a group of Black Industrialists on an outward trade mission to Uganda from 18 to 23 September 2017 to assist them search for a market for their products and investments opportunities. The mission will consist of export-ready Black Industrialists operating in the economic infrastructure, agro-processing, chemicals, pharmaceuticals, plastics, electronics, as well as textiles, footwear and leather sectors. According to Dr Rob Davies, South African Minister of Trade and Industry, the mission is part of the implementation of the Black Industrialists Programme (BIP). The programme is one of government’s industrialisation initiatives to expand the country’s industrial base and inject new entrepreneurial dynamism in the economy as outlined in the Industrial Policy Action Plan (IPAP). “The Black Industrialists Programme is specifically dedicated to supporting the growth and building the global competitiveness of majority black-owned and managed businesses in the manufacturing sector. The intention is to contribute towards shifting the demographic composition of South Africa’s industrial sector by engaging with and nurturing emerging Black Industrialists to tap into a reservoir of potential jobs, revenue, taxes and innovation,” says Davies. He adds that the goal of the programme is to accelerate the growth of Black Industrialists who are actively participating in the national economy, selected industrial sectors and value-chains in order to increase their contribution to economic growth, investment, exports and employment. “The BIP...

As the dust settles on the spat between Kenya and Tanzania, and calculations on exactly how much each side lost continue, questions are emerging on whether this is the last diplomatic row between the two countries. Indications show the standoff may not be the last as rivalry between the two neighbours has been there since the 1967 Arusha Declaration in which Tanzania adopted socialism, putting it on a collision path with Kenya’s capitalist ideals. However, while Tanzania is economically poorer, analysis by Weekend Business shows Kenya as the biggest loser whenever there is a dispute between the regional economic giants. Kenya loses more money in terms of exports. The balance of trade between the two countries stood at Sh22 billion at the end of last year in favour of Kenya. In 2016, Kenya exported goods worth Sh34.8 billion to her neighbour while it imported Sh12.8 billion worth of products. Because of the escalation of tensions between the two countries, Kenya’s exports to Tanzania have fallen by a staggering 60 per cent from Sh12.5 billion to a paltry Sh5 billion in the first six months of 2017 when compared to a similar period last year. It is also worth noting that Kenya usually gives in to more of her neighbour’s demands than what it receives in return whenever there is a disagreement. For instance, despite finally allowing her northern neighbour’s goods to its markets after a two-month standoff, Tanzania has still retained the duty it had imposed on Kenyan products -...

Moses Ishirima is spending his third day at the Sirare border crossing, southwestern Kenya, waiting for his employer to send him $300 for a transit licence to enter Tanzania. Ishirima’s truck is registered in Kenya but is carrying petroleum products from Eldoret, destined for northern Tanzania and therefore does not need a transit licence. The Customs officials insist it does. “The Tanzania Customs officials keep shifting goalposts when it comes to transporting petroleum products into the country. They have introduced several fees and regulations which do not make sense,” Mr Ishirima says. Northern Tanzania has traditionally depended on the Eldoret station of the Kenya Pipeline Company for petroleum products, since it is cheaper and more efficient to access as opposed to trucking them thousands of kilometres from the port of Dar es Salaam. But Kenyan business people are now claiming that Tanzanian border officials are using haphazard levies and regulations to block petroleum products from Kenya from entering Tanzania through the Isebania and Sirare Customs border posts. Tanzanian officials however, deny any ill-motive. “We have no problem allowing petroleum products from Kenya into our country as the drivers and business people are claiming. We have laid down regulations which must be met, and that could be the misunderstanding,” said a Tanzania Customs official at the Sirare border post, saying that further queries should be addressed to the Tanzania Revenue Authority in Dar es Salaam. Customs hurdles At the Kenya-Tanzania traders forum in Dar es Salaam early this month, one of...

Tanzanian traders are accusing the Nairobi administration of selectively applying regulations such as the Rules of Origin, thus hindering free trade between the two countries as envisioned by the East Africa Common Market Protocol. Tanzania Private Sector Federation chair, (TPSF) Dr Reginald Mengi, said; “As neighbours, we should be creating success stories in Kenya and Tanzania, instead of competing among ourselves.” He was speaking at a traders’ forum in Dar es Salaam attended by Kenyan and Tanzanian stakeholders. Given that the East African Community countries have agreed on specific thresholds on the Rules of Origin which could be creating challenges in respect to specific products, the meeting recommended the Community to review and revisit their application to respond to the specific business needs of the two countries. It emerged that Kenya was still placing hurdles on Tanzanian milk companies looking to enter its market. “When the two governments agreed to remove restrictions recently, we assumed everything had been resolved. But we have since been informed that Kenya has back tracked on some of these issues, with access to the Kenyan dairy market being the key one,” reads a submission by Tanzanian businessmen. “Certificates of Rules of Origin issued by any EAC country should be recognised. The Milk Processors Association in Tanzania should initiate consultations with their Kenyan counterparts with a view to accessing the Kenyan market and growing trade between the two countries,” reads the meeting’s joint communique. Roadblocks Jennifer Bash, chief executive officer of Alaska Tanzania Industries Ltd said...

Kenyan business people have cited restrictions, costly regulations, non-harmonisation of standards, harassment and multiple verifications of goods by Tanzanian authorities, as some of the factors feeding the trade wars between the two countries. The Kenyan delegation at the recent traders’ forum in Dar es Salaam to deliberate on trade relations between the Tanzania Private Sector Federation (TPSF) and the Kenya Private Sector Alliance (KEPSA), noted that Kenyan exporters have encountered restrictions while seeking to enter especially the Tanzania cement, edible oils and cigarettes market. “There is a need to facilitate administrative processes on the movement of goods including clearance at border points. We also need a rethink of the policies regarding preferential treatment in respect of cement and edible oils. “It is time to engage the private sector firms that initially lobbied for these restrictions on the need to review and change their positions,” said George Owuor, KEPSA governor and EAC sector board chair. Kenyan vehicle parts manufacturers, for example, complained of being denied preferential treatment for their automotive products. The Kenyan delegation also raised issue with the harmonisation of standards, noting that Tanzanian officials seemed to be reading from a different set of rules, which basically puts a new layer of trade restrictions between the two countries. They cited the existence of two certification agencies; the Tanzania Bureau of Standards and the Tanzania Food and Drug Authority, (TFDA) yet in other EAC countries, only an equivalent of the former exist. Their overlapping roles cause delays as one has to...