For many years Rwandans have been dependent on second hand clothes imported from Europe and the United States. They are affordable and their high demand kept traders in business. However, the East African Community (EAC) partner states have agreed to systematically phaseout importation of second hand clothes in a way that will not hurt people dealing in them. In the Heads of State summit that was held in Dar Es Salaam, on May 20, partner states adopted a method to promote local apparel industries that will help meet local demand and indirectly discourage import of second hand clothes. “Partner states agreed that for now, the best approach to phaseout second hand clothes is by supporting local industries instead of banning importation of the clothes once and for all,” Francois Kanimba, Minister of Trade, Industry and East African Community Affairs today. In February 2016, five heads of state in the East African Community – Burundi, Kenya, Rwanda, Tanzania and Uganda – agreed to bring about a total ban on imports of secondhand clothes by 2019. While commenting on motives of the ban then, Rwandan Minister of Finance and Economic Planning Amb. Claver Gatete said that ending the trade was not just about industry, “it is just not acceptable according to our dignity.” “Every year, we spend over $15 million to import second hand clothes. Wearing such clothes is not worth our value,” said Claver Gatete, Rwanda’s Minister of Finance and Economic Planning. However, the EAC has since realised that the ban...

Dynamar B.V. of Alkmaar, The Netherlands, has recently issued another report in its Container Markets and Trades series: the fourth biennial edition of the “East & Southern Africa (worldwide) Container Trades”. Salient details and some of the interesting findings of the study are discussed in this review. West Africa West Africa is clearly moving into the direction of maturation. Compared to East Africa, the ships are bigger, there are more carriers and there is a substantial presence of international port operators. Currently, 112 box ships sail the core Asia-West Africa routes. Deployed by ten different carriers, their average capacity is 5,300 TEU, with the biggest ship measuring no less than 13,100 TEU. East Africa East Africa still has clearly some way to go compared to West Africa. With 2,900 TEU, the average of the 52 container vessels serving the area from Asia is little more than half the size of its West African sister. Including the largest 4,900 TEU unit, they are operated by nine different carriers. Hub and spoke is not practiced in East Africa. Hutchison Port Holdings (Dar es Salaam) was the single foreign terminal operator in the region until, recently, DP World started operating Berbera and sister company P&O Ports announced to develop Bosaso. Mombasa, the region’s largest outlet, is operated by its port authority. Defunct, but increasingly served Somalia may still be considered partly defunct, ever more containerships are coming to its ports. Eight different services are concerned, operated by six carriers: CMA CGM, Emirates Shipping,...

The European Union (EU) will continue to offer its assistance, to the best of its abilities, to the East African Community (EAC). The Head of the EU Delegation to Tanzania and the EAC, Amb Roeland Van de Geer, said that over the seven year period from 2014 to 2020, the EU and the EAC were addressing key challenges in East Africa by jointly implementing an ambitious development programme through the 85 million Euro 11th European Development Fund. Amb. Van de Geer further said that, in addition, EU Member states were also making available considerable amounts in development support to the EAC. “However important aid may be, trade and investment are crucial for a better future for all East Africans,” said the envoy. Amb. Van de Geer said the EU would continue to partner with the EAC in development cooperation and the promotion of peace, security and democracy in the East African region. He noted that the two blocs had witnessed increased cooperation over the past two decades, adding that the wide ranging cooperation would continue in the political, economic and developmental fields. Amb. Van de Geer was addressing guests during a cocktail event to mark the Europe Day 2017 at the EAC Headquarters in Arusha, Tanzania. He acknowledged that despite many years of unprecedented economic growth, Europe today suffers from serious economic difficulties. “Difficult as the times may be, our Union, built on solidarity and on the strong commitment to peace and development, see these tough times as an opportunity...

Speaking at the 18th Ordinary Summit of the of the Heads of State at Dar es Salaam State House minutes after assuming the EAC chairperson seat from Tanzania’s John Pombe Magufuli, President Museveni explained the three pillars for integration. “Integration is about three issues; prosperity, security and ‘ubuntu’ (brotherhood)”, the President said. Giving a synopsis of the origins of the East African Community, President Museveni praised Mwalimu Julius Nyerere for being steadfast in the push for regional unity even when his immediate post-colonial peers developed cold feet. “In 1963, Kenyatta (Jomo), Nyerere and Obote (Milton) met in Mbale, Uganda and declared there would be a political federation before the end of that year,” said President Museveni. “Obote and Kenyatta developed cold feet by the end of 1963 but Nyerere insisted on working for the EAC. It is how I became a Nyerere supporter.” He cited Mwalimu Nyerere’s decision to unite Tanganyika and Zanzibar in 1964 as evidence of commitment to unity and ultimately the region’s prosperity. “There was a revolution in Zanzibar and an opportunity offered itself. Nyerere and Karume formed Tanzania. It has survived all this time. Unity of Tanganyika and Zanzibar has given more opportunity of people the island to come to the mainland and vice versa,” he said. Integration for prosperity “Integration is important for prosperity. It is not a luxury. It is not whether I like you or not,” President Museveni said before illustrating his argument using the relationship between Kenya and Uganda when the latter’s...

East African Community (EAC) partner states that are yet to sign the EU-EAC economic partnership agreement (EPA) are not in position to do so pending clarification of issues they have identified in the draft agreement, the regional bloc has said. This was noted in a statement issued after yesterday’s 18th ordinary summit of the EAC Heads of State, held under the theme: “Towards sustainable growth and development of the Community” in Dar es Salaam, Tanzania. “It was however agreed that due to this action Kenya should not be disadvantaged since she has already signed the agreement,” the communiqué reads in part. In September last year, trade ministers of Rwanda and Kenya signed the deal at the EU headquarters in Brussels, Belgium. Last year, the East African Business Council (EABC) advised the partner states to sign the deal quickly since failure to meet the EU deadline for ratification (which has since passed) could see EAC exports to EU attract import duty, especially for Kenya, the region’s largest economy. Whereas Burundi, Rwanda, Uganda and Tanzania have an option to rely on the Everything But Arms (EBA) trade arrangement under which they can still enjoy duty-free market access to the EU, Kenya does not have the same privilege as its economy is considered to be more advanced than the others. Kenya sells some 30 per cent of its exports to the EU. At the summit, President Yoweri Museveni of Uganda assumed the bloc’s leadership that’s held on rotational basis and was mandated to...

The East African Community (EAC) leaders have directed partner states’ ministers in charge of EAC affairs to resolve long-standing unresolved non-tariff barriers (NTBs) and report to the next summit. The directive was made at the EAC Heads of State Summit on Saturday in Dar-es-Salaam, Tanzania. It comes after the Council of Ministers had also called for an end to a host of long-standing unresolved NTBs hindering trade in the region. “The heads of state noted with concern the declining intra-EAC trade and directed the Council to resolve the long-outstanding non-tariff barriers and report to the 19th summit,” reads part of a joint communique issued after the summit. Meeting before the summit, the central decision-making and governing organ of the regional bloc raised concerns that at least 19 non-tariff barriers remain unresolved as reported by a monitoring tool that was put in place. The ministers specifically raised concern over four longstanding NTBs whose solution, they said, requires policy guidance. They include the restriction by Uganda on beef and beef products from Kenya, since 1996. Others are requirement by Tanzania that cigarettes manufactured in Kenya and exported to Tanzania should have a 75 percent local content, and requirement by the Tanzania Foods and Drugs Authority (TFDA) that companies exporting to Tanzania should register, re-label and retest goods certified by other partner states. This trade barrier has existed since 2003. Raymond Murenzi, director-general of the Rwanda Standards Board (RSB), told The New Times that the issues concerning the TFDA are “very serious” as...

State House Spokesperson Manoah Esipisu said China will be sending a delegation comprising members of its State Council who will include two ministers and a vice-minister for the launch. “China who provided the funds through loans that the SGR was built will be sending a senior delegation of the State Council at that launch,” Esipisu said Sunday during his weekly press briefing at the State House. “We do expect that the President will officiate at events of the container terminal on May 30 before embarking on a train ride the following day,” he added. During the launch, the President will also make a number of stopovers to commission newly built terminus before concluding his trip aboard the SGR train in Nairobi. The Head of State is expected to stop at most of the major SGR terminus which include Mariakani, Miasenyi, Voi, Mtito Andei, Kibwezi, Emali and Athi River before making his way to the capital. Esipisu noted that President Kenyatta had secured funding from the Export-Import Bank of China for the extension of the railway line from Naivasha to Kisumu city where the government intends to build a new port. “The President reached agreements on new partnership with China and some of those agreements include support for funding for the Exim Bank of China for the next phase of the SGR that will take it from Naivasha to Kisumu.” According to the Kenya Railway Corporation (KRC), it is estimated that the Nairobi- Naivasha section of the SGR will coast about...

It had been a while since I travelled upcountry by public means. So at the weekend when I jumped on a bus to Kafunjo Parish in Ntungamo District to attend a friend’s wedding, I had not prepared for the interestingly ‘new developments’ that would be part of my long journey. The first development was the black kaveera (polythene bag) given to passengers. On such long distances most of them eat all sorts of things along the way, and those with reactive stomachs often puke them back. I had to applaud the foresightedness of Global Coaches management for introducing the kaveera (never mind that government banned kaveera)and small buckets to protect their buses from the repugnant vomit of passengers. An old man behind me asked the conductor if he could ease himself in one of the buckets, and the bus roared in laughter. Another ‘development’ that is now ‘officially’ part of such long distances is the sugar-tongued herbal medicine merchant who buys a seat so he can use the journey to hawk his herbs. This time he was selling a powdered concoction that he claimed it gives a man “lasting power” in bed. The same powder, he said, is a cure to diabetes, ulcers, varied allergies, syphilis, blood pressure, joint pains and all sorts of maladies that make life unbearable. He made a killing from passengers but I was left wondering who regulates such ‘medics’ and their merchandise. The sardines When I reached Mbarara I took a taxi to Ntungamo. We...

Richard Kamajugo, the senior director at TradeMark Africa, a non-profit agency that works around the region to strengthen trade and markets says in terms of competitiveness, there is already competition among countries to be logistics hubs in the region but what will make Uganda better than the others is efficiency. “It will be the ultimate determinant of where the business goes,” he says, “That is why all parties involved, public and private must buy into the vision of turning Uganda into a logistics hub.” Kamajugo says although infrastructure is a key contributor to logistics efficiency, Uganda should also focus on processes that lead to simplification and coordination of trade procedures. He says lengthy, bureaucratic and repetitive procedures increase the time and therefore cost of trade. He says improvements in automation through upgrade of customs and other government agency IT systems; enhancing exchange of information and implementation of One Stop Border Post (OSBP) clearance procedures have had a positive impact on border processes in Uganda. Another expert; Jennifer Mwijukye who is the Chief Executive Officer of Unifreight, a local logistics firm, says much as the government has over the last decade invested massively in road and other infrastructure projects around the country, there is need for linkage of the transport and warehousing infrastructure across the country. Uganda’s logistics performance is already showing improvement, according to the World Bank Logistics Performance Index, which is an interactive benchmarking tool that measures performance of the logistics supply chain on parameters such as customs clearance,...

Dar es Salaam — President John Magufuli has officially handed over the leadership of the East African Community (EAC) to Mr Yoweri Museveni, president of Uganda, during the 18th EAC-Heads of state meeting in Dar es Salaam. Dr Magufuli asked the new EAC Chairman, Mr Museveni, to steer the community by maintain the cost-cutting measures. "During my chairmanship, the EAC saved USD3million through cost cutting. I hope the coming chairman will continue with the same," said Dr Magufuli. Further, Magufuli urged Museveni to make every endeavor to finish some of the thorny trade deals that the EAC was still negotiating with other countries. "I failed to find a solution for EAC EU trade deal but I am optimistic President Museveni will take this forward," added Magufuli. Source: All Africa