East African Community experts have concluded consultative missions in Vietnam and Japan, a benchmarking exercise aimed at borrowing a leaf on how the Asian nations developed their automotive industries. According to Jean-Baptiste Havugimana, the East African Community (EAC) director for productive sectors, experts from partner states and the Secretariat travelled to Tanzania, Kenya and Uganda “to compile baseline information on the status of automotive industry,” and to Vietnam and Japan for a benchmarking exercise. “These missions took place from September 20 to October 7. Thereafter, the team will visit other countries in East Africa (Burundi, Rwanda) for in-depth analysis, and to others in Africa such as Ethiopia, Nigeria and South Africa for benchmarking,” Havugimana told The New Times at the weekend. In October, a three-day meeting of a broad spectrum of stakeholders and experts from the automotive industry, finance, customs and trade sectors as well as vehicle manufacturers from EAC was held in Nairobi, Kenya. It was aimed at reviewing and validating progress report on the comprehensive study on automotive industry. The stakeholders would then provide inputs toward its finalisation and inform the EAC and potential investors on policy options and modalities to promote and develop the motor vehicle industry. The initial benchmarking study missions revealed that usage of local content was one of the drivers for the growth of the automotive sector. “This is an area that EAC needs to explore further and adopt appropriate measures that will consequently spur the development of the sector,” reads part of an...

It may be time to stop reminding your American friends that Africa is not a country – tell them it’s a series of regions.  According to a new report by the World Bank, The Unexplored Potential of Trade in Services in Africa, the key to boosting tourism on the continent could be to actively brand travel to regions within sub-Saharan Africa – encouraging visitors to east, west, southern Africa – rather than just individual countries. The report uses the examples of the Caribbean and Southeast Asia, regions that are almost synonymous with some of the countries within them: Jamaica is the Caribbean as much as it is the birthplace of Bob Marley; backpackers the world over slip into flip-flops and head to Southeast Asia, not just Thailand. Southeast Asia has been doing this since the ’90s, through the Association of Southeast Asian Nations (ASEAN). In the Caribbean, “The notion is that by pooling resources, the [Caribbean Trade Organisation] could increase the competitiveness of the world’s premier sea, sand, and sun destination,” the report explains. The concept isn’t of course new to Africa, with prominent – if not tourism-focussed – regional blocs such as SADC (the Southern African Development Community) and EAC (East African Community). Both have policies in place that do allow the people in their respective member countries to travel more freely between them. The EAC is now consciously trying to brand the region, or “market and promote East Africa as a single tourist destination,” says the report, as well as focussing on standardising...

The construction of the first three berths at the proposed Lamu port is running ahead of schedule, the Ministry of Transport and Infrastructure has said. The ministry projects that the first berth will be operational by June 2018. Transport PS Irungu Nyakera said works on the project have been facilitated by the Sh10 billion allocated to the Lamu Port Southern Sudan-Ethiopia Transport project this financial year, ending next June, by the National Treasury. “The project has received very good support from the exchequer. People don’t believe that Lapsset is moving, but I can tell you we are ahead of schedule at 12.5 per cent against 12.1 per cent which is what we had anticipated by now since the works begun early this year,” Nyakera said. The construction involves reclamation of the sea which will place the berths more than 700 metres into the Indian Ocean, with the first three berths stretching 1.2 kilometres wide with a width of 750 metres. “You need at least 24 months to deliver a berth especially when reclaiming. We are on time,” Nyakera said. He was speaking on Friday when the Lapsset and Kenya Ports Authority boards met at the Lamu port headquarters to discuss the project’s progress. The contractor, China Roads and Bridge Corporation, is also dredging the quayside, deepening the docking area for ships by 17.5 metres. The dredging begun on October 15. The ministry has proposed a further Sh10 billion for the project in the 2017/18 budget policy statement. “Lapsset is a...

KN4 Avenue in Kigali city centre. Rwanda was feted for its business transparency. PHOTO | CYRIL NDEGEYA Rwanda remains the country with the best business environment in East Africa, according to the Ashish J. Thakkar Global Entrepreneurship Index. The country was rated a lucrative place for business in the region due to its labour market flexibility, public sector performance and business transparency, placing it 27th out of all 85 countries. It came second to Namibia in Africa but ahead of Botswana, South Africa and Zambia. Rwanda was singled out for its large scale decentralisation especially in civil service. “By sending the message that no one is above the law, the economy and entrepreneurship in Rwanda has grown as demonstrated by their ranking in the index,” says the report prepared by Mara Foundation. Kenya came eighth as most entrepreneur-friendly country in Africa boosted by a favourable financial policy. Its strongest pillars were finance which includes taxation, ease of raising capital as well as venture capitalist attractiveness. The Ashish J. Thakkar Global Partnership Index measures entrepreneurial environment around the world, assessing each country on its financial policies, administrative, infrastructural, educational, and cultural factors. According to the report, Kenya, South Africa and Zambia’s monopolistic rules led to higher prices for essential good like rice, flour and milk. “If the price of the staple food was reduced by just 10 per cent, it could save consumers $700 million a year and lift 500 million people out of poverty,” says the report. Tanzania, Liberia and...

As Uganda strives to boost its trade mark in the world market, Ministry Of Trade, Industry and Cooperatives is eying at constructing a joint boarder market in between Uganda and South Sudan. The novel development was revealed by the State Minister for Co-operatives, Hon Gume Ngobi Frederick while meeting the Business community in Lango sub-region. He noted that the joint (boarder) market will be installed in the district of Arua and the district officials have okayed the land for the construction of the said boarder market. Hon Ngobi explained that the joint boarder market will help in managing the Sudanese and other foreigners entering Uganda and moving into villages cheating farmers in name of buying their produces. He advised farmers in Northern Uganda to form up cooperatives so that the selling of their produce can easily be managed and to avoid price fluctuation that always affects selling of produce in the region. Ngobi further noted that the co-operatives will help in the reintegration of cooperative bank in the region. Patrick Ogwang, the freshly elected Lango Business community spokesperson, applauded the Ministry for the good initiative they have brought to construct the Uganda-Sudan joint boarder market in Arua. Ogwang submited that the Ministry should as well scrutinize the licence that the foreign investors are using so as to regulate their movement and to manage the new-fangled boarder market that will be constructed.   Source: Uganda Today

With President Barack Obama’s administration launching a $7-billion “Power Africa” plan to support clean energy production in Kenya and Sub-Saharan African nations the US Trade and Development Agency (USTDA) is set to expand its investments in sustainable energy projects across sub-Saharan Africa Brandon Megorden , the Country Manager for East and Central Africa at the U.S Trade and Development Agency emphasized that the US will continue to support the governmental projects. This is clear as the 2016 American congress approved the five-year funding plan. The USTDA is collaborating with Kenya on additional 6 new energy projects including Nyakwere Hills Solar Photovoltaic, Olkaria Geothermal Power Plant, Lamu Gas-to-Power Project and Isiolo Solar PV Power Plant. The 6 projects will add a total of 361 megawatts Kenya energy production. Speaking at a luncheon organized by the American Chamber of Commerce (AmCham), he said “USTDA funding is open to private, public and PPP types of beneficiaries. While there is no prescribed minimum or maximum, funding generally ranges between $500,000 and $1,000,000 and is on a 100% grant basis.” Additionally, he said that support for six projects that will identify U.S. solutions that can help increase access to affordable, reliable electricity across Kenya and help diversify the country’s energy mix.These projects will enhancing ports and airports and improve generating new power, and USTAD will help projects reach implementation and financing . USTDA supports important joint initiatives such as Power Africa, Trade Africa and other priority infrastructure efforts in Kenya. USTDA’s program helps to create...

Industry, Trade and Cooperatives Cabinet Secretary Adan Mohamed has faulted county governments for charging multiple taxes in their jurisdictions. He said yesterday the trend had led to slowed business activities in the devolved units. Whereas counties charge cess taxes to complement allocations from the National Treasury, said the CS, care has to be taken to ensure that their actions do not make Kenyan goods non-competitive. “We have no business charging tax to a business person when their vehicle steps into another county. Otherwise, these counties may as well declare independence,” said Mr Mohamed. He spoke in Nairobi during the launch of a report dubbed “The burden of produce cess and other market charges in Kenya” by Kenya Markets Trust (KMT). The CS further noted that multiple cess collection points in counties had led to high cost of living. According to the report findings presented by Policy and Research Manager at KMT Chris Shimba, produce cess, is not being used by counties to improve production and distribution of the taxed commodities. “Cess charged across counties was not necessarily ploughed back to the sector. Instead, it ended up making cost of food prohibitive and out of reach for most households,” said Mr Shimba. The study also found that many counties do not accept permits issued by other counties for moving agricultural produce such as maize, milk, livestock, vegetables and fish. Instead, traders are taxed for entering each county. Speakers at the launch said as much as cess was a noble ideas for...

The Federal Republic of Germany and the East African Community (EAC) have signed an agreement of 7 million euros, which support will go towards disaster preparedness and ICT projects in the region. The agreement was signed on Tuesday (December 6) by EAC Secretary-General, Ambassador Liberat Mfumukeko on behalf of the Community and the Germany Ambassador to the United Republic of Tanzania who is also accredited to EAC, Egon Kochanke on behalf of his country. A statement issued by the EAC Secretariat today said 3 million euros in technical assistance will be invested in strengthening the pandemic preparedness of the region. The project will support the operationalization of the EAC Regional Contingency Plan and a regional risk and crisis communication strategy, it said. Four million euros in technical assistance will be invested in an Academic Center for Digital Innovation, the statement said. The project will support the set-up of a State of the Art Master programme focusing on embedded and mobile systems at an East African University, supporting the development of a skilled labor force in East Africa. The projects will be implemented by the German International Cooperation Agency, GIZ. Speaking during the signing ceremony, the EAC Secretary General, Mfumukeko thanked the Government of the Federal Republic of Germany for its support to the EAC. ‘’We have truly benefited from the German support which has catalysed other development Partners to support our projects and programmes,” he said. Kochanke said: “Our support underlines that Germany wishes to further strengthen the long-standing and...

Traders in the East African Community (EAC) should understand the rule of game in the regional cross-border trade, a trade technocrat has advised as millers in Kenya complain about zero rated wheat flour imports from Tanzania. The East African Business Council (EABC) Trade Economist, Mr Adrian Njau, said in a telephone interview from Arusha yesterday that most traders were uninformed of their rights stated on the EAC treaties. "Business people operating in the region should not overlook the procedures needed to penetrate the regional markets, but make effective use of the duty-free access to sell their products," he said. Kenyan millers have questioned the application of the EAC tax regime by the authorities which allow wheat from Tanzania to enter Kenya market tax free. Kenyan Cereal Millers said Tanzania imports its wheat, hence should not enjoy tax incentives under the East African Community Customs Union (rule of origin), which gives preferential treatment to locally produced goods. However, under the revised Rules of Origin adopted by EAC ministers, finished products are required to have at least 30 per cent of the ex-works value added in the exporting member state, down from 35 per cent of the ex-factory price. The millers have accused Kenya officials at the borders of letting zero- rated wheat from Tanzania enter the country, yet Kenyans pay up to 50 per cent duties when exporting their products to East Africa. Under the EAC customs union rule of origin 2015, goods shall be accepted as originating in a partner state...

Imagine waking up to find the six East African countries have fully integrated their markets. A trader is able to move goods freely and a fully implemented common market protocol guarantees right of establishment in any of the member states. Sounds like a dreamland utopia already? Now imagine the integrated market is being served by three world class seaports — one in Mombasa, another one in Dar es Salaam and the region’s newest and largest one in Lamu. Since you’ll be waking up in Kenya at the end of the dream, let the old Mombasa port be the harbour of your interest. Having become a world-class facility, goods are being cleared fast. There is neither congestion nor threat by any agency to auction uncollected goods. For Kenya, the most advanced of the integrating states, ease of input flow into the region imply that local manufacturers are able to produce and export world-class goods as well. And so it has markets across the globe! But our dream is a local one. So Uganda remains top market for Kenya’s exports and investment capital. There is 1,300km standard gauge railway (SGR) connecting Mombasa port to Kampala. Business people are free to move at speeds of up to 120km per hour to any of the destinations served by the upgraded track. A single currency in circulation ensures traders do not have to stop at Busia or Malaba border points just to exchange money. The bloc already has a common revenue agency that collects customs...