Apart from the bogus “birther” claim that U.S. President Barack Obama was born in Kenya, Africa has barely been mentioned by either presidential candidate Hillary Clinton or Donald Trump during the campaign. That silence extends to the African Growth and Opportunity Act, which allows most products from 38 eligible sub-Sahara countries to export goods to the U.S. duty-free. Sixteen years since its launch, AGOA has not driven industrial development in Africa as had been anticipated. But the program has served as a catalyst for increased textile production and associated job growth in Kenya and other countries. AGOA is viewed positively even in countries where its benefits have not been felt. In the years following its enactment during the Bill Clinton presidency, AGOA has stirred little opposition from Democrats or Republicans, largely because it has not amounted to much of a threat to U.S. workers. The Congress recently approved a 10-year extension of presidency of with strong support from members of the major parties. Trade deals criticized as harmful to U.S. economic interests have, however, emerged as a key issue in the race for the White House. Trump has been forceful in condemning such agreements, and the resonance of his arguments has led his Democratic rival to take a similar stance. The candidates’ expressed opposition to trade schemes favorable to exporters in the developing world raises the question of whether the next White House occupant might want to undo or weaken AGOA. Should Trump overcome odds against winning the Nov. 8...

East Africa is a region of complexity and opportunity, as Felicity Landon finds out It’s not easy to achieve a snapshot of what’s happening in East Africa – mainly because politics, economics, corruption, borders and the lasting impact of conflict combine to keep the goalposts moving and investment plans uncertain. However, the region is attracting investment – earlier this year, for example, DP World signed an agreement to develop the multipurpose Port of Berbera in Somaliland, with the aim that the port should "achieve its potential for becoming a regional trade and logistics hub", according to the operato. The group already has operations in Djibouti, where it operates the Doraleh terminal, as well as in Mozambique. The phased $442m project at Berbera will include setting up a free zone to support the development of the port’s trade corridors. “Investment in this natural deepwater port will attract more shipping lines to East Africa and its modernisation will act as a catalyst for the growth of the country and the region’s economy,” said DP World chief executive Sultan Ahmed Bin Sulayem. A modernised port will provide an additional gateway for the Horn of Africa that is needed for its development, while serving other landlocked countries along the east coast, DPW added. In competition Along the coast of East Africa, ports are jostling for position when it comes to serving their landlocked neighbours. Mauritius, meanwhile, has started to position itself as a transhipment hub – in the words of one expert, seeking to...

By Dicta Asiimwe East Africa received a mixed bag of results in doing business in the latest report by World Bank; with Rwanda and Kenya leading while Burundi, South Sudan and Somalia brought up the rear. The World Bank cited implementation of projects meant to improve trading across borders as key to the good showing while civil strife hampered those countries that did poorly. According to the World Bank's Doing Business 2017 report, Rwanda -- ranked 56 from last year's 59 -- remains the easiest place to start a business in the region. Rwanda is also the second easiest country within which to do business in sub-Saharan Africa after Mauritius, which is ranked 49th. Kenya -- the bloc's biggest economy -- though at second place, was the most improved, moving 21 places up the ranking from 113 last year to 92. Uganda is ranked at 115 from last year's 122, while Tanzania moved to position 132 from 144. Troubled by civil strife, Burundi is ranked at 157. South Sudan, another East African country dogged by incessant conflict, was ranked at 186, four places short of being the worst performing country in the world. At 190, Somalia which also suffers the debilitating effects of war, terrorism and a fledgling government is ranked as the worst country to start a business in the world. Rwanda saw its biggest improvement in its trading across borders measure, having moved 44 places from last year's position of 131 to position 87 now. Uganda moved up...

By Brian Ngugi Tanzania's President John Magufuli's state visit to Kenya on Monday is a high stakes affair for both countries with Nairobi expected to roll out the red carpet as it seeks to reset relations with Dar es Salaam. Top on the agenda will be trade relations between the two neighbours. A series of high-profile incidents have strained ties between the countries since Dr Magufuli came to power last year. The most remarkable was his absence at the Tokyo International Conference on African Development held in Nairobi which attracted heads of state and government from across the continent. This left tongues wagging about the status of relations between the two East African giants. The Tanzanian leader has only travelled to Uganda and Rwanda since coming to power last October. Tanzania has previously been accused of putting non-trade barriers on Kenyans including delay of work permits and slow licensing. Kenyan companies operating in the country have also complained of being treated harshly. In July, Tanzania said it will not sign the Economic Partnership Agreement between the East African Community and the European Union, a landmark deal aimed at giving regional states, as a bloc, duty-free and quota-free market access into the EU. In 2015, the two countries were involved in a trade row following a ban on Kenyan tour vans from accessing Tanzanian parks. Kenya reciprocated by barring Dar buses from the Jomo Kenyatta International Airport. Much recently, Tanzania has given a regional initiative meant to facilitate access to all...

KIGALI (Xinhua) -- Tanzania’s ambassador to Rwanda Ali Idi Siwa said his country’s reluctance to sign the Economic Partnership Agreement (EPA) with the European Union is about economics and called for more time for consideration. He noted that Tanzania’s industrialization plan is to go beyond import substitution and to produce goods both for home consumption and export purposes. “We have a feeling that that the EPA may jeopardize this position. So, we gave ourselves time to have a closer look at this scenario so that we come up with a decision which is good for both Tanzania and the east African region,” said Siwa. “We have not signed and we did not say that we are not going to sign, but we are giving ourselves time,” he said. He was speaking at a one-day policy dialogue on regional integration organized by the Office for Eastern Africa of the UN Economic Commission for Africa (ECA), in collaboration with the University of Bremen in Germany, in Kigali. Last month, trade ministers from Rwanda and Kenya signed the EPA with the EU in Brussels. However, the East African Community (EAC), which includes Rwanda, Kenya, Tanzania, Uganda, Burundi and South Sudan, has requested a delay of the signing of the deal. The pact gives products from EAC member states duty- and quota-free access to the EU market as long as they meet health and safety standards, while EAC will gradually liberalize 80 percent of its market for EU imports. Some EAC members have voiced...

In Summary On the Northern Corridor which covers Kenya, Uganda and Rwanda, transporters pay an average of $1,320 (Sh132,000) per container as a national bond guarantee, $450 (Sh45,000) under the SCT, and $700 (Sh70,000) under the RCTG. For now, goods produced in a member country using SCT do not require an insurance bond. Transporters along the Northern Corridor could cut the cost of ferrying goods by more than half if countries adopt a global transit clearance regime. A report by the International Road Transport Union (IRU) shows that the system of using national insurance bond and cash guarantees or the Single Customs Territory could be causing congestion at ports of entry contributing to revenue losses due to the high cost of clearing goods. IRU, whose members include transport associations and chambers of commerce, conducted a study of four transport corridors in the East African Community and the Common Market for Eastern and Southern Africa. The study undertaken by South African consultant Michael Laurence Fitzmaurice looked at the cost of national bonds, Comesa, Regional Customs Transit Guarantee and the TIR (a French acronym for international transport by road) Carnet. Though the report shows that transporters use any clearance systems available rather than choose for themselves, it asks countries to adopt a system shared across the borders. “The system should include optimum features and benefits, with the least possible risk. It must be economical and should offer reductions in the transit time and costs caused by delays in transit regimes,” says the...

Tanga — Ambassadors from the European Union member states want to see East African ports improved in order to better handle international trade. The envoys from 11 EU countries visited Tanga Port yesterday and familiarised themselves with the various facilities including the site where a jetty would be built at Chongoleani. Head of the Delegation Amb Roland van de Gea expressed the Union's commitment to improve the port so that it will efficiently handle increased international traffic. He added: "More has to be done in the East and Central African countries to improve the business environment so as to increase trade opportunities. "It is not just about more making money," he said after a briefing from the Tanga Port Master Henry Arika. Expounding on developments at the port Mr Arika said a separate port at Mwambani south of Tanga is still on the cards and is deemed viable despite competition from the Mombasa and Dar es Salaam ports. "When we talk of Mwambani Port we also talking about the construction of a new railway line from Musoma to Arusha that will be connected to the Tanga-Arusha line that has to be revamped," said Mr Arika. Tanga Port was initially built to handle sisal exports from Tanganyika by Germans in 1893. Interest in the port has grown dramatically after the announcement of the construction of the 1,444 kilometre, crude oil pipeline from Hoima in Uganda to Tanga. The Democratic Republic of Congo has also announced plans to use the pipeline to...

By Florence Mugarula It is now all smiles for Tanzanian farmers after a fertiliser production company 'YARA Tanzania Limited' announced between 35 and 40 per cent reduction of fertiliser transportation cost following the launching of railway transport services on Tuesday. Speaking during the launching of fertiliser rail transportation from Dar es Salaam to upcountry, YARA Director General, Mr Alexandre Macedo said inland transport cost has been contributing to the increase of fertiliser prices in various regions. He said transporting fertiliser from factories in Europe to Dar es Salaam port cost only 40 US dollar per tonne, but it cost 100 US dollar to transport the same from Dar es Salaam to Tabora by using road transport. Mr Macedo said with rail transport, the total operation cost is cheaper. He said the company has responded to the government call to reduce fertiliser price and enable farmers across the country to engage in productive agriculture. "We are doing everything in our powers to respond to the government request to reduce fertiliser prices, it has been very expensive to transport fertiliser from Dar es Salaam to other regions by road," he said. He added that another challenging factor is the big number of intermediate, which include middlemen operations. He said the company is working closely with the government to solve the problem. "We are working with the government to see how we can address this problem together, we need to take fertiliser to farmers at affordable price," he said. According to Mr Macedo,...

Kenya was also ranked as the world’s third most reformed country. FILE PHOTO | FREDRICK ONYANGO | NATION MEDIA GROUP In Summary Kenya’s improvement was credited to five reforms in the areas of starting a business, obtaining access to electricity, registering property, protecting minority investors and resolving insolvency. Kenya's standing has improved by 21 places in the latest World Bank ease of doing business report, signalling that a raft of business reforms initiated by the government may be paying off. The Doing Business 2017 report released on Tuesday showed that Kenya was placed at position 92 out of 190 countries surveyed, with Mauritius and Rwanda outpacing Kenya at 49th and 56th place respectively. New Zealand replaced Singapore this year as the easiest place in the world to do business. Kenya’s improvement was credited to five reforms in the areas of starting a business, obtaining access to electricity, registering property, protecting minority investors and resolving insolvency. “This is a marathon and we will not be complacent until we attain position 50 by 2020,” said Industrialisation Cabinet Secretary Adan Mohamed in Nairobi while welcoming the results of the report. Kenya was also ranked as the world’s third most reformed country. A record 137 economies around the world were reported to have adopted key reforms that make it easier to start and operate small and medium-sized businesses, said the World Bank. The latest survey found that developing countries carried out more than 75 per cent of the 283 reforms in the past year, with...

Chief economist at central bank of Rwanda, Dr Thomas Kigabo stresses a point yesterday at KCC. / Faustin Niyigena Transformative regional integration could be achieved through collaboration between countries rather than through economic competition, economists and policymakers said yesterday. This was during a policy dialogue on regional integration organised by the Office for Eastern Africa of the UN Economic Commission for Africa (ECA), in collaboration with the University of Bremen in Germany, at the Kigali Convention Centre. Dr Thomas Kigabo, chief economist at the National Bank of Rwanda (BNR), noted that the Brexit is “a very interesting example and experience.” Throughout the initial session, examples were drawn from Britain’s exit from European Union (Brexit) and, like the other economists present, Kigabo could not pin down with certainty the likely implications but noted that these could be normal. Kigabo said: “I think that on a negative note, this [Brexit] may give some argument to some countries which want to exit regional integration. It’s really a very bad example because we have been considering the EU as a good model for integration. “Definitely, experience is showing us that it is not a good model. It has its own weakness and the reality is that UK has decided to go out. This may have negative impact on our own efforts to have our own economic bloc.” The lesson learnt from the faltering regional integration process in Europe, he said, is that when countries are negotiating a similar protocol or agreement, they need to...