Archives: News

Settle Brexit bill quickly to boost chance of free trade deal, say pro-EU Tories

Prime minister urged not to heed call by hardliners to refuse to settle debts with Brussels after triggering article 50 Theresa May will be urged by pro-EU Conservatives to reach a quick deal over the divorce bill from Brussels in order to maximise the chances of reaching a free trade deal within the tight deadline for Brexit talks. As the prime minister prepares to trigger article 50, the formal process for leaving the EU, on Wednesday, rebel Tories who seek the closest possible relationship with the EU are preparing to offer May political cover for settling what they see as Britain’s debts to Brussels. They fear that Britain could waste valuable time and erode goodwill by locking horns with the remaining members – the EU27 – over the price of exit, which must be agreed upfront, according to the EU’s lead negotiator, Michel Barnier. They are concerned that dragging out the issue would hand Brexit hardliners an excuse for walking away from the negotiating table without a deal. Barnier has suggested the outlines of a deal must be agreed within 18 months in order to allow EU member states to ratify it before the two-year deadline set out in article 50 of the Lisbon treaty. Neil Carmichael, the Stroud MP who campaigned for remain, said: “If we’re going to row about money all the time, then we’re not going to find ourselves in the right kind of relationship. Some of this money is about the support that we have been...

EAC and ICGLR eager to tackle regional issues together

he East African Community (EAC) and the International Conference for the Great Lakes Region (ICGLR) jointly has organized from 27 March, a two-day meeting in the capital Bujumbura to discuss the regional challenges “We shall seek to develop common positions in tackling the political problems affecting some of the countries belonging to both organizations such as South Sudan and the Burundi-Rwanda political impasse”, says Zachary Muita-Muburi, the ICGLR Executive Secretary during the joint ICGLR/EAC meeting, this 27 March in the capital Bujumbura. The same view is shared by Libérat Mfumukeko, Secretary General of the EAC: “Our main concern is how we can draw on our synergies towards finding a sustainable solution to the Burundi political impasse and respond to the deteriorating humanitarian situation in the Republic of South Sudan.” The EAC Secretary says among the areas identified for a joint intervention are the development of capacities to address conflicts, refugees and humanitarian issues, promotion of democracy and good governance, fight against illegal exploitation of natural resources, promotion of the private sector and civil society as well as combating sex and gender based violence. The ICGLR Executive Secretary says the EAC is a regional economic community committed to the promotion of the regional integration in order to transfer and foster economic development. As for the ICGLR, he says it is a regional mechanism established for the purpose of facilitating member states working with partners for political interventions to tackle peace and security challenges. “There is necessity for the two organizations to work...

European Union woes should not discourage EAC

One possible explanation of the slowing down could be the impact of Brexit and the turmoil – if I can call it so – it has created in the European Union. Until up to recently, the European Union was considered by many as a good example of unifying economies for the common progress of the members. Now that the future of the bloc is seen to be in doubt, even our East African Community members may be beginning to think that the whole East African project might not be viable in the long-run after all. I personally believe that Brexit and the other challenges facing the European Union today should instead provide the EAC partner states an important lesson that would help them formulate a better East African Community than the one they had envisaged, even if it meant revisiting the whole concept. But abandoning key joint projects, such as the envisaged railway, would be a missed opportunity. It’s clear there are some dishonest members who are bent on stabbing their peers at the back. I know there are national interests every country is pursuing, but that should not be to the detriment of a good working relationship in the community. There have been abrasive and bare knuckles in the way things are done. If this is not managed well then the Njonjo prophecy will come to pass. I hope I am wrong but I fear I may be right.     Source: The New Times

Local garment manufacturers plan three-day mega sale in Nairobi

Local clothing manufacturers plan to have a "mega sale" of their products this week in Nairobi. The event has been dubbed the first-ever super sale of local clothing brands in the country. Going under the hashtag #BuyKenyaSuperSale on Twitter, the sale will run for three days starting Wednesday at the Kenyatta International Conference Centre, (KICC). Prices will range from Sh50 to Sh600. The sale has been organised by the Ministry of Industry, Trade and Cooperatives to promote local brands. According to State House Spokesman Manoah Esipisu, quality brand new clothes made in Kenya at its export processing zones (EPZ) under key designer labels will be up for sale at "low and affordable prices". “They are making them available to this market so that Kenyans can have a sense and feel of what it is that is being produced here and being worn in major cities in the world but which by the time Kenyans see it again it’s like its already been worn in other markets and coming back under the used clothes' category,” he said on Sunday. Biggest brands Industry, Trade and Cooperatives Cabinet Secretary Adan Mohammed says some of the world's biggest inner wear brands like Calvin Klein, Tommy Hilfiger & Victoria's Secrets are being made in Kenya. The Ministry of Trade is calling it the first super sale, which is expected to promote the local textile sector. The sector supports 179,000 jobs according to the government, out of which 22,000 are said to have been created over...

Cargo Tracking System in Rwanda goes electronic

Kigali, March 24th 2017: The Rwanda Revenue Authority (RRA} has today commissioned the Regional Electronic Cargo Tracking System (RECTS), joining its partners in Kenya and Uganda. The system connects the three countries electronic cargo tracking systems, enabling them to jointly track cargo from port to destination on a twenty-four-hour basis. The RECTS is expected to enhance cargo security and curb diversions which will ultimately reduce transit time, cost of cargo transportation and enhance transparency as all stakeholders will have access to the system. The commissioning of RECTS follows a July 3rd 2014 directive by the Northern Corridor Heads of State Summit in Kigali, compelling Kenya, Rwanda and Uganda to embrace joint e-monitoring of transit cargo along the corridor through a harmonized system to enable seamless flow of cargo. Speaking during the event, Richard Tusabe, RRA Commissioner General, said: "From a tax administration perspective, we are going to see improved revenues because the revenue leakage is going to be mitigated but also it's going to allow us to give more confidence to the business community to trade with ease without the 'manual processes that we've been trying to apply." RECTS has been supported by the United Kingdom Department for International Development (DFID} through Trademark East Africa (TMA). Speaking at the event, the DFID Rwanda Head of Office, Sally Waples, said: "The UK is truly excited about the role that the RECTS will have in reducing the cost of doing business across East Africa and harnessing Rwanda's trade potential." Rwanda, Kenya and Uganda will seal loopholes that lead to revenue loss because of diversion of un-taxed goods...

Go slow on push for EAC single currency – expert

East African Community (EAC) countries have been told to go slow on the push to have a single currency for the region if they cannot fix the basics of trading in the region. In an interview with Daily Monitor, Mr Miguel Azevedo, the head of investment Banking for Africa at Citigroup, said the countries should focus on issues that boost East Africa as a trading bloc because a single currency may be hard to attain. He said: “Common currency goes with a few other needs, which means some common policies like similar budget policies, inflation levels and taxation among others. These things are harder to get. Just look at Europe. We have been working on the single currency for decades.” “What is doable and can create meaningful impact in the short term is creating a single market and I think it is getting there but governments need to be convinced that it is the way forward,” he added. In 2013, the EAC countries agreed on a timeline of about 10 years to have achieved a common currency. However, because the structures of the economies around the region differ, a common currency model has been noted to be risky. Mr Azevedo’s comments come with an understanding that for the EAC to be transformative, trade barriers and free movement of labour can help boost the region, especially the private sector to thrive. He notes that the focus on developing infrastructure within the region by Kenya, Uganda, Rwanda and South Sudan will somewhat...

Kenya targets more EPZs for value addition, job creation

Establishment of more export processing zones will promote value addition and boost use of local raw materials, the government has said. Industrialisation Cabinet Secretary Adan Mohamed said this helps create jobs for thousands of Kenyans while providing a viable technology transfer platform for local workers. Mr Mohamed spoke when he visited Kenya’s newest EPZ facility Hela Clothing in Athi River Township, which produces undergarments for export to America under the brand names Calvin Klein, Victoria Secrets among other licensed brands owned by US clothing conglomerate Phillips-Van Heusen Corporation (PVH Corp). The Sh600 million investment, which opened doors six months ago, has since exported lingerie and underwear worth Sh160 million. Mr Mohamed said EPZ facilities had helped Kenya sustain 45,000 jobs. In 2015 Sh8.4 billion was paid out as salaries with another Sh23.9 billion spent on purchasing raw materials and payment for services. “The manufacturing investments in the EPZ zones are worth Sh7.4 billion while exports under the Africa Opportunity Act worth Sh38 billion went to America. We are deliberately promoting the clothing and apparels sector to help us realise our core goals of having a skilled working population,” he said. Local retail chains The CS said Hela was also at liberty to form partnerships with local retail chains, whereby 20 per cent of their finished products will be sold at a subsidised rate that does not attract taxes under the Buy Kenyan, Build Kenya policy. “Hela’s target of exporting finished products worth Sh5 billion to US and Europe in 2017 is...

Chinese business community launches trade lobby in Kenya

The Kenya Chinese Chamber of Commerce (KCCC), a trade lobby bringing together the Chinese business community operating in the East African nation, was launched on Saturday. Chairman of the East Africa Chinese Chamber of Commerce Han Jun said the new body is expected to unite and empower members to form a cohesive force among domestic and overseas Chinese. Han observed that Kenya has become a trading spot of the China-Africa cooperation. "Kenya has become an important direction and foothold in East Africa for China's belt and road initiative and national strategy of going abroad," he noted. With many Chinese projects including the ongoing construction of the Mombasa-Nairobi Standard Gauge Railway, the launch of the direct flight of China Southern to Kenya and the completion of the Thika Highway, a number of Chinese firms have been attracted to Kenya. "The chamber is expected to forge a new chapter between the Chinese people working in Kenya and further the modernization process," KCCC Chairman Zhuo Wu said. Zhuo said the new chamber will help create additional jobs for the local Kenyan people and contribute to Kenya's economic development programs. "We are going to continue strengthening the relationship between China and Kenya and also make contributions towards the economic and cultural development of the two countries," said Zhuo. Source: Global Times

Exploit Uganda’s tourism potential, reduce cost of business – UK Trade Envoy

The UK Prime Minister’s Trade Envoy to Uganda Lord Dolar Popat has challenged the Government of Uganda to invest more in the tourism sector and reduce the cost of doing business, if the country is to attain the much desired middle income status. Lord Popat was meeting Trade Minister Amelia Kyambadde to discuss ways of improving the trade between the two countries which has dwindled in the recent years. He is in Uganda to look out for investment opportunities for UK businessmen. According to Lord Popat, UK’s strategy is to see the economies of the former colonies grow and not just to make money out of them. The UK,he said, is currently on a mission to restore trade relations with her former colonies which have been penetrated by the emerging economies especially India and China. Uganda’s exports to the UK have gradually reduced from $47.5 million in 2013 to $29 million in 2015 with Uganda mainly exporting edible vegetables, flowers, coffee and tea. The imports from UK have also dropped from $103.3million in 2013 to $83.5million in 2015 with Uganda mainly importing pharmaceutical products, printed books, beverages and spirits and some textiles from UK. Minister Kyambadde told Lord Popat that Uganda’s focus is now on value addition especially on coffee, cotton, tea among other agricultural products and the minerals. “There are lots of investment opportunities in Uganda which the UK investors can exploit, and with the economic stability coupled with the Buy Uganda Build Uganda Policy that Government has started...

Govt drafts new policy to promote Made-in-Rwanda

The Ministry of Trade and Industry and East African Community Affairs has unveiled a Made-in-Rwanda policy in a bid to address issues of quality, prices, cost of production as well as link industries to suppliers. Speaking during the validation session of the policy, last week, Minister Francois Kanimba said the new approach was developed in close partnership with government institutions and the private sector. “The Made-in-Rwanda policy is a new approach that will enhance public-private sector stakeholders’ partnership to enhance industrial growth and economic transformation,” he said. The policy is designed to help boost local industrial contribution to the economic growth – which increased to 17 per cent in 2016 – ahead of the 20 per cent target by 2020. “The initiative is playing a big role in boosting locally-made products. The trade deficit in terms of goods decreased to $1.5 billion in 2016 from $1.8 billion in 2015,” he said. According to Annette Karenzi, the director-general of industry and entrepreneurship development at the ministry, many value chains will be developed under the policy. She said if the sugar value chain was developed, for instance, it would add savings worth $26 million per annum. For steel, it would be $34 million, $20 million in soaps and detergents as well as $20 million from pharmaceuticals. Quality and high cost of production Karenzi said several measures will be adopted to reduce unfair competition for local firms. “The policy will make sure that there is on increase of local raw materials. Another intervention...