Arusha — All East African Community (EAC) partner states are largely non-compliant of most of the trade commitments under the Common Market Protocol. This was disclosed in Kampala on Thursday by the EAC deputy secretary general in charge of Finance and Administration Jesca Eriyo when she launched the second EAC Common Market Scorecard. The Scorecard 2016, which measures the partner states' compliance to the free movement of capital, services and goods, was developed by the World Bank Group together with Trade Mark East Africa a the request of the EAC secretariat. The Scorecard was developed over a period of 18 months under the supervision of the EAC secretariat and the partner states; Tanzania, Uganda, Kenya, Burundi and Rwanda. The areas of capital, services and goods were selected for scoping as they are fundamental to the operations of the Common Market. But addressing scores of officials during the launching Ms Eriyo said although non-conforming measures (NCMs) have this time around been brought down to 59 from 63 registered during the Scorecade in 2014, the difference was marginal and enough indication that the partner states were largely non-compliant in their services to trade liberalisation commitments. Ms Eriyo argued that subsequent Scorecards should consider assessing implementation of the trade commitments with the aim to ensure it contributed to strengthening the regional market, private sector growth and deliver benefits to consumers. She said the implementation in terms of recognition of certificates of origin, an issue repeatedly identified as a significant non-tariff barrier (NTB) in...

  Traditional barter market From salt bars to bank notes, the system of trade in East Africa has come a long way over the course of 100 years. The numismatics exhibition taking place at the Nairobi National Museum traces the evolution of currency and exchange in East Africa, from pre-colonial through to modern times, as part of the 50 years’ celebration of the Central Bank of Kenya. Long before East Africans came into contact with outside traders, traditional African communities were exchanging goods and wares through barter trade, a system dating back to prehistoric times. At market days, which were a customary part of cultural life, some of the most valuable items of exchange were livestock, ironware, salt, weapons, beads, cowrie shells as well as were foodstuffs. Arab traders travelling through East Africa’s interior in search of ivory, slaves and other goods, were the first to introduce money as an alternative to the cumbersome salt bars normally used as payment. The currency introduced by the Arabs was an assortment of foreign coins which reflected the multi-national nature of the Indian Ocean sea trade. There were Indian rupees and annas, pice bronze coins, British florins, and silver Maria Theresa thalers that originated from Austria. When the 1885 Berlin Conference carved up Africa among the European powers, Uganda and Kenya were allocated to Britain. The Imperial British East Africa Company (IBEAC) that administered East Africa before it became a formal protectorate issued the Mombasa Coins between 1888-1890. These were minted in India...

EUROPE is in crisis, and yet countries in East Africa are ready to sign on a poorly understood trade agreement with the EU whose overall impact will be disastrous for years to come. The Economic Partnership Agreement (EPA) will favour trade in the direction of Europe and stunt African progress. Tanzania has hesitated and called for public debate. Tanzania should provide the bold leadership required in the region to reject the EPA. It seems to me that the discussion on the EPA that is being pushed by Kenya, especially the flowers lobby, which does not understand the changes in the international situation. In 2016, Africans are a long way away from the era when British settler bigwigs in Kenya – Michael Blundell and Bruce McKenzie – could make decisions about the future of Africa. Then, they built the flowers trade as part of the lift capabilities of the British and European long term plans for Africa. These plans were thwarted by Tanzania and the liberation forces. In the period 1971-1990, there had been an attempt by the West to isolate Tanzania because Tanzania did not toe the line of the West on the future of Southern Africa. For a short while, especially the days of Nguvu Kazi, Tanzania was alone, yet Julius Nyerere did not blink. The present Tanzanian society is in a much better position than it was in 1984. The private sector has come out clearly against this Economic Partnership Agreement. Full Disclosure The Speaker of Parliament has...

By Anita Chepkoech The East African Community (EAC) is yet to fully implement the common market protocols which were meant to boost the region's trade, a new report has shown. The second East African Community Common Market Scorecard 2016 (CMS 2016) launched in Kampala, Uganda on Thursday shows that Kenya, Uganda, Tanzania, Rwanda and Burundi still run their trades as separate and distinct markets, keeping their economies small and disconnected due to several bottlenecks in the regulations. This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. This is despite EAC presidents having signed the treaty to give the countries freedom of movement of goods, labour, services, and capital, which would significantly boost trade and investment and make the region more productive and prosperous. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. "While there is positive progress, states have remained largely non-compliant in their services and trade liberalisation commitments," said Ms Jesca Eriyo, the EAC deputy secretary-general in charge of finance and administration during the launch of the report. She said the first scorecard launched in 2014 had raised similar concerns stating that regional trade in goods was being constrained by not less than 51 non-tariff barriers. NON-CONFORMING MEASURES Efforts to freely offer cross-border services such as professional services, distribution, transport and communication were slowed down by at least 63 non-conforming measures while only two of the 20 operations...

  Kenyan President Uhuru Kenyatta, left, and Tanzanian counterpart John Magufuli clasp hands during Magufuli's state visit to Nairobi, Oct. 31, 2016. The two hope to strengthen their countries' economic ties. NAIROBI, KENYA —  Tanzania’s president is making his first state visit to Kenya since taking office last October, in a bid to improve relations strained by economic competition. Kenya is "quite important to Tanzania," President John Magufuli told reporters upon arriving Monday in the northern neighbor’s capital city, Nairobi, for a two-day visit. Magufuli cited data from the Tanzania Investment Center, which reports that 529 Kenyan companies have invested roughly $1.7 billion in Tanzania, creating employment for about 56,000 Tanzanians. Tanzania is the fastest-growing economy in East Africa, according to the International Monetary Fund. Kenyan President Uhuru Kenyatta said the countries would revive the Kenya Tanzania Joint Commission for Cooperation (JCC) before year’s end to enhance investment and trade. The state visit “is meant to strengthen the relations between both countries,” Kenyatta said, adding that if Kenya and Tanzania are to expand their economies and create jobs for youth, then the countries should “walk together." Tension over Uganda pipeline Economic relations between the two nations have been somewhat strained by competition. In March, Uganda opted to run a large oil pipeline through Tanzania instead of Kenya. Uganda cited security concerns and a price tag that was $1 billion cheaper than the one proposed by Kenya. Tanzania also won a deal to host a new railway that will connect the...

Kenya International Freight and Warehousing Association (Kifwa) Mombasa branch Secretary Bernard Simiyu (left) addresses a press conference at the association's offices in Mombasa on October 31, 2016. They are opposed to increased tariffs saying it will affect business at the Port of Mombasa. PHOTO | LABAN WALLOGA | NATION MEDIA GROUP  In Summary As a result of the high taxes, he said said the agents were unable to clear 1,200 containers from the port of Mombasa. Mr Simiyu called on the government to address their concerns failure to which the agents would stop lodging entries in clearing cargo at the port. More than 1,000 clearing and forwarding agents in Mombasa are up in arms over high taxes which were imposed by the Kenya Revenue Authority (KRA) two months ago. According to Kenya International Freight and Warehousing Association (Kifwa) Mombasa branch Secretary Bernard Simiyu, the tariffs were imposed on commodities such as rice, tyres, batteries, powdered milk, linen among others. Mr Simiyu said: “KRA didn’t inform us about the increased tariffs. We just learnt about the duty increase two months ago when our members went to clear cargo at the port.” As a result of the high taxes, he said said the agents were unable to clear 1,200 containers from the port of Mombasa. He added that efforts by the association to seek audience with the tax agency's Commissioner-General John Njiraini have been futile. Addressing journalists at the association's offices in Mombasa on Monday, Mr Simiyu called on the government to...

The construction of the standard gauge railway concession has raised many questions over the future of the old line run by Rift Valley Railways Ltd. PHOTO | FILE  IN SUMMARY The EastAfrican has learnt that representatives from the Ministry of Transport, Kenya Railways Corporation, RVR and CCCC held a meeting last week to discuss how to ensure both RVR and SGR co-exist. Kenya-Uganda railway concessionaire Rift Valley Railways (RVR) needs at least $500 million to compete with the standard gauge railway. “We need fresh capital to prepare ourselves for competition from SGR and execute our next phase of growth,” said group chief executive Isaiah Okoth. RVR is staring at an uncertain future with SGR expected to commence operation next year and the government awarding China Communications Construction Company (CCCC) the contract to operate the new line. The EastAfrican has learnt that representatives from the Ministry of Transport, Kenya Railways Corporation, RVR and CCCC held a meeting last week to discuss how to ensure both RVR and SGR co-exist. “The meeting on Monday discussed policy issues on how SGR and RVR will work,” said a source who did not disclose details of the discussion. According to Mr Okoth, RVR risks being obliterated when SGR starts operations unless the company attracts new investors or the two governments inject capital into it. Mr Okoth argues that since SGR is being built using taxpayers money and the line handed to a private company to operate, the two governments must also put money in the...

A new report by the EAC secretariat shows that the East African partner states are still lagging behind in the process of implementing the Common Market Protocol. TEA GRAPHIC |   NATIONA MEDIA GROUP IN SUMMARY This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. Efforts to freely offer cross-border services were slowed down by at least 63 non-conforming measures. The second scorecard was developed in 18 months by the EAC secretariat with the support of the World Bank Group and Trade Mark East Africa. The East African Community (EAC) is yet to fully implement the common market protocols which were meant to boost the region’s trade, a new report has shown. The second East African Community Common Market Scorecard 2016 launched in Kampala, Uganda on Thursday shows that Kenya, Uganda, Tanzania, Rwanda and Burundi still run their trades as separate and distinct markets, keeping their economies small and disconnected due to several bottlenecks in the regulations. This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. This is despite EAC presidents having signed the treaty to give the countries freedom of movement of goods, labour, services, and capital, which would significantly boost trade and investment and make the region more productive. The protocol was signed on...

IN SUMMARY This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. Efforts to freely offer cross-border services were slowed down by at least 63 non-conforming measures. The second scorecard was developed in 18 months by the EAC secretariat with the support of the World Bank Group and Trade Mark East Africa. The East African Community (EAC) is yet to fully implement the common market protocols which were meant to boost the region’s trade, a new report has shown. The second East African Community Common Market Scorecard 2016 launched in Kampala, Uganda on Thursday shows that Kenya, Uganda, Tanzania, Rwanda and Burundi still run their trades as separate and distinct markets, keeping their economies small and disconnected due to several bottlenecks in the regulations. This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. This is despite EAC presidents having signed the treaty to give the countries freedom of movement of goods, labour, services, and capital, which would significantly boost trade and investment and make the region more productive. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. “While there is positive progress, states have remained largely non-compliant in their services and trade liberalisation commitments,” said Ms Jesca Eriyo, the EAC...

The King of Morocco, Mohammed VI (C) is welcomed by Rwandan President Paul Kagame (L) on October 19, 2016 in Kigali, during his first stage tour of East Africa. PHOTO | AFP  The bid to diversify its investments, diplomatic outreach and the region’s fledging extractives and infrastructure projects has seen Morocco out on a diplomatic charm in East Africa, after a similar move in West Africa paid off with vast economic investments. The countries recent economic agreements with Rwanda, Tanzania and Ethiopia ranging from economy, gas, railways, banking, manufacturing and minerals as it seeks a share of the regions budding extractives industries but hidden within is its diplomatic manoeuvers as it seeks to exploit the ongoing African Union leadership contest for its own historical gain. Morocco King Mohammed VI was in Rwanda, Tanzania and Ethiopia as part of the country’s efforts to build diplomatic relation with the region and seek support for its readmission to the African Union (AU). Morocco has been wooing African states in its bid to rejoin the African Union after it pulled out of the then the Organisation of African Unity (OAU) in 1984 over the admission of the Sahrawi Arab Democratic Republic (SADR) as a full member of the body. Then Morocco protested that Sahrawi was part of its monarch. READ: Morocco lobbies East Africa for re-entry into the African Union Mid this year, Morocco sought for its readmission to the African union (AU) after its three decade hiatus over the Western Sahara controversy. Interestingly,...