Five East African countries have joined forces with the aim of forming a single currency area by 2024. Since the project’s inception in 2000, Kenya, Uganda, Tanzania, Burundi, and Rwanda have been laying the groundwork for greater economic integration. Measures such as establishing a Customs Union has helped streamline border clearances, simplify work permit issuance, and ensure the recognition of professional agreements by member countries. As a result, regional trade has increased by over 40 percent in the last five years. Speaking at a conference on regional integration in Arusha, Tanzania, Abebe Aemro Selassie, head of the IMF’s African department, said while GDP growth in the East African Community is well above average for sub-Saharan Africa, the challenge will be how to sustain this strong growth over the medium-term, how to ensure that scaled-up public investment and borrowing translates into durable growth and not unserviceable debt, and how to make the growth felt by a wider segment of the population. “Faster economic integration within the East African Community is a potential game changer, as it holds the promise of improved productivity, competitiveness, and welfare gains,” Selassie said. Monetary unions and common currency areas are not new to Africa. The West African Economic and Monetary Union, for one, was formed in 1994 and shares the CFA franc among eight West African countries, while Namibia, Swaziland, and Lesotho have been linking their currencies to the South African rand under a Common Monetary Area established in 1986. Roger Nord, IMF deputy director of...

The European Union could cut development aid to East African countries that have refused to enter its trade agreement. Refusal by the other countries to sign up to the Economic Partnership Agreement has subjected exports from Kenya to the EU to fresh taxation. Tanzania and the other East African nations could be the target of the threat after declining to ratify the EPA. Patrick Gomes, the Secretary General of the African Caribbean and Pacific Group of states (ACP), said foreign aid to the poor countries must be tied to trade agreements. “Truth is Tanzania, Uganda and Burundi, which are sluggish in signing the deal, could end up losing important development aid from the EU,” Gomes said during a regional trade meeting in Nairobi yesterday. Withdrawal of foreign aid could be an attempt to arm-twist the countries into accepting the trade pact. “EPAs comes not only with trade opportunities with Europe, but development aid as well,” he added. Gomes spoke after the EU opened a new avenue for Kenya to walk it alone to the trade pact, which had initially been discussed by the five countries of the East African Community. ACP is composed of 79 African, Caribbean and Pacific states that are signatories to the Cotonou Agreement, also known as the “ACP-EC Partnership Agreement” which binds them to the European Union. President of the European Parliament, Louis Michel, said Kenya could sign a bilateral trade agreement with the EU, pointing out that a similar deal had been struck with South...

IN SUMMARY Trade Mark East Africa (TMA) has teamed up with the KPA to build the facility in the next six months in efforts to boost tourist earnings. The Kenya Ports Authority (KPA) plans to upgrade Mombasa port into an ultramodern cruise complex with a lounge, restaurants, souvenir shops and reception counters at berths 1 and 2. Trade Mark East Africa (TMA) has teamed up with the KPA to build the facility in the next six months in efforts to boost tourist earnings. Tourism secretary Najib Balala said Mombasa’s favourable status as a cruise ships stopover city, which saw 6,000 tourists visit last year, urgently deserves the upgrade to facilitate docking and evacuation of visitors to their hotels. The project launched at weekend will see an existing building renovated and an exclusive 24-hour docking hub built to speed up arrivals and exit clearance. An estimated 140,000 tourists are expected to use the new facility upon completion, earning the exchequer an Sh520 million annually. Under the deal, the TMA would provide Sh100 million while KPA is expected raise Sh350 million to implement the project. TMA director-general David Stanton welcomed the partnership saying tourism has potential to employ more Kenyans. Mr Balala said tourists arriving via cruise ships would also enjoy recently introduced incentives where children aged below 16 were excluded from paying visa fees. He added that Malindi airport was being expanded to accommodate larger planes and pave the way for direct European flights to the resort town. Source: Business Daily

IN SUMMARY The report says through digitisation and the leveraging of innovation, technology, data and the Internet-of-things to shift established modes of production and consumption offer new opportunities. Developing countries should leverage on technology to grow the shipping industry, the United Nations Conference on Trade and Development has said. The UN, in the 2016 Review of Maritime Transport report, urged countries such as Kenya to invest in new advanced technologies to improve data collection efficiency to aid decision making, integrate various services to speed-up processes and grow e-commerce industry. “Technology innovation, the data revolution and e-commerce can significantly transform and disrupt the shipping industry, including with regard to efficiency gains, new business models, use of the Internet, digitisation, efficient logistics effective asset management and the greater integration of small and medium sized enterprises,” the report said. “Developing countries may leverage related trends to cut costs, raise productivity, develop capacity-including skills and knowledge and enable access to new business opportunities.” The report says through digitisation and the leveraging of innovation, technology, data and the Internet-of-things to shift established modes of production and consumption offer new opportunities. “Innovation, technology and big data may help increase efficiency and productivity, reduce transport costs, enhance the performance of supply chains and shorten travel distances.” Kenya Trade Network Agency, a State agency mandated to digitise and automate trade transactions to improve competitive edge, has already integrated service portals of State agencies including Kenya Ports Authority, Port Health Services and Kenya Revenue Authority speeding up cargo clearance...

Nairobi, 19th December 2016 – TradeMark Africa (TMA) has been awarded a Certificate of Special Recognition by H.E. President Yoweri Museveni at the annual Visionaries of Uganda Awards following the organisation’s work in Uganda.  This is a Presidential initiative that recognises investors, private sector and donor institutions whose work has had a transformative social-economic impact on the people of Uganda.  TMA was recognised for best contribution to infrastructure and trade facilitation. Since the TMA programmes began in Uganda – working closely with the Ministry of Works and Transport (MoWT) – waiting times for trucks on border posts have been reduced by up to 70% after one-stop custom mechanisms were introduced, therefore eliminating the need for customs checks on both sides of the border. Furthermore, the Uganda Revenue Authority has seen a 48% increase in tax revenues, after moving to a 24hour web-based processing customs system. The move has also led to processing time being reduced by 30% from 120 hours to 84 hours. Moses Sabiiti, TMA Uganda Country Director, noted that with support from the British Government, through DFID, the programme has been able to engage implementing partners to achieve tremendous results on infrastructure initiatives. Frank Matsaert, Chief Executive Officer of Trade Mark East Africa, commented on the receiving award: “The work we undertake at TMA across Uganda has significantly reduced the cost and time of doing business in the country and has made a tangible difference to the lives of Ugandans. We are grateful to be recognised by H.E....

President John Magufuli signalled his determination to develop the country's infrastructure earlier in the year when he raised the allocation for development projects from 26 per cent to 40 per cent of the budget. Major investments during the one year of the Magufuli presidency are the construction of the standard gauge railway, the Uganda-Tanzania oil pipeline and the revival of Air Tanzania Corporation (ATCL). Standard gauge railway In the 2016/17 budget, the Finance Minister allocated Tsh1 trillion ($455 million) for construction of a standard gauge railway (SGR) line that will link Tanzania with the landlocked neighbouring East African countries on the Central Corridor, Rwanda, Burundi, Democratic Republic of Congo and Uganda. The 2,190km project will be implemented in four phases over the next three years, beginning with the 200km Dar es Salaam-Morogoro section, expected to start in January 2017. The government is in the process of selecting a contractor out of about 40 applicants. In addition to the funds allocated in the 2016/17 budget, in July, Tanzania signed a memorandum of understanding with China's Exim Bank, for a $7.6 billion loan to finance the project. Currently, the Tanzanian rail network comprises two main railways: The 2,600km Tanzania Railways Corporation (TRC) network and the 1,067km Tanzania-Zambia Railway Authority (Tazara) of connecting Dar es Salaam with Kapiri Mposhi in Zambia. The TRC main line runs between the port of Dar es Salaam in the east through the central areas, terminating at Kigoma on the shores of Lake Tanganyika in the west. Revival...

The government has launched the construction of a Sh350 million cruise ship terminal at the port of Mombasa. Tourism Cabinet Secretary Najib Balala said the terminal is expected to be in operation by July next year. Balala said Kenya Ports Authority (KPA) had contributed Sh250 million while Trademark East Africa has given a grant of Sh100 million towards the renovation of the ports old terminal. Balala, who was speaking during the launch of the development of the cruise ship terminal aon Friday, said Kenya had been recognised as Africa’s leading cruise port by the World Travel Awards 2016, and the construction of the terminal will allow for an increased volume of cruise ships and tourists in the country. “By carrying out major renovations and rehabilitating the first jetty, it will turn the Mombasa port into a main tourist destination in East and Central Africa,thereby increasing the numbers of holidaymakers visiting the country,”he said. Balala instructed Kenya Tourism Board to waive landing fees for all charter airlines,and further ordered the board to reduce park fees from $90 (Sh9,000) to $60 (Sh6,000). “We have waived landing fees for all charter airlines terminating their journeys at Moi International Airport Mombasa and Malindi for the next two years. Similarly, we have scrapped visa fees for children under the age of 16 years,” he said.            — Sophie Njoka Source: Media Max

Kampala — The secretary general of the East African Community (EAC), Liberat Mfumukeko's stringent reforms which were instituted to eliminate wastage on travel expenditures, have helped the Secretariat to save more than $2.75m (Shs10 billion). The reforms instituted in the Organs and Institutions aimed at cost reduction in the EAC projects and programmes early this year are already showing positive developments. In his message last Friday to the staff of the Organs and Institutions for their dedication during the year, Mr Mfumukeko, who took over from Mr Richard Sezibera at the end of April, said: "As a result of your strong commitment, passion and dedication to the regional integration agenda, we have witnessed a lot of developments and achievements at individual and corporate levels." He said EAC has reduced its travel expenditures by 28 per cent between May and November 2016, compared to 23 per cent in the same period in 2015. The travel expenditure during May-November 2015 was $9. 9m (Shs36 billion) and the same expenditure during May-November 2016 was $7.1m (Shs26 billion) making a saving of approximately $2.75m (Shs10 billion). The Secretariat was experiencing financial strain due to delayed contributions by partner states and donors. The reforms come after Tanzanian president John Magufuli cautioned the Secretariat during the heads of State summit in March this year that "it will not be business as usual under my chairmanship". President Magufuli openly put the Secretariat on notice that the days of wanton spending were gone, questioning the rationale of holding...

Kenyans will have to wait longer for easier immigration rules in Tanzania after a meeting between officials from the two countries resolved to tackle the problem by next March. The meeting under the Joint Commission for Co-operation (JCC) had been expected to resolve the persistent reluctance by Tanzania to scrap residence and work permit fees as is expected by the East African Community. But Tanzania argued it needed more time to realign the demands within the provisions of the new laws, which require foreign nationals to pay fees for work permits. On Friday, Kenya’s Foreign Affairs secretary Amina Mohamed and her Tanzanian counterpart, Augustine Mahiga, endorsed the decision to extend discussions until March, saying it will allow time to iron out the issues. “Arising from this, the meeting advised the relevant authorities from the two sides to meet by March, 2017 with a view to address the issues,” said a dispatch from the meeting. The JCC between Tanzania and Kenya had been dormant for six years, stalling discussions on immigration and other issues affecting relations. When President John Magufuli visited Nairobi in November, he authorised his team to restart the talks. The turn of events is likely to disappoint Kenyan businessmen who had hoped that the State would finally agree to scrap the work permit fees. Mr Magufuli argued during his November tour that Kenya was the number one investor in his country, with 529 companies investing about Sh170 billion in various sectors, and employing more than 56,000 Tanzanians. Kenya...

Arusha — A draft EAC Sanitary and Phytosanitary Bill is being finalised and will be tabled before the East African Legislative Assembly (Eala) soon. The Bill is aimed to ensure agricultural products traded conformed with the international standards through application of the required health and safety measures. "Sanitary and phytosanitary measures have become an important topic of debate in international trade as well as regional integration," said the Deputy Secretary General of the East African Community (EAC) Christophe Bazivamo during a regional consultative meeting in Nairobi last week to finalise the draft document. He acknowledged that agricultural trade continues to represent a notable portion of intra-EAC total trade flows and urged the EAC partner states to adequately enforce issues around SPS measures and standards. Following the adoption of the SPS Protocol in 2013, he explained, a strong foundation for supporting its implementation has been laid and that includes finalisation of SPS measures and setting in motion the process of developing the SPS Bill, which will facilitate effective implementation and enforcement of the protocol. Source: All Africa