Comesa Secretary-General Sindiso Ngwenya. PHOTO | FILE  IN SUMMARY The Comesa market is currently dominated by the European Union and China. China commands a 12 per cent share of imports into Comesa countries, while the US trails in fifth position, with only five per cent of the total value of imports into Comesa. The United States has given a $77 million five-year grant to the Common Market for Eastern and Southern Africa to help reduce cross-border risks to trade and to pave the way for increased foreign investment. The Comesa market is currently dominated by the European Union and China. The signing of the memorandum of understanding took place in Madagascar’s capital Antananarivo at Comesa’s 36th intergovernmental committee meeting, ahead of the Heads of State Summit that will take place from October 18-19. Comesa Secretary-General Sindiso Ngwenya signed the deal on behalf of his organisation, while Eric Schultz, the US ambassador to Zambia, who also doubles as the special representative to Comesa, and USAid deputy director for Kenya and East Africa Candace Buzzard, signed on behalf of the US government and USAid. The funding will go towards strengthening regional trade, investments and agricultural development programmes. This funding will help Comesa’s regional programmes under the Africa Growth and Opportunity Act (Agoa), such as Trading for Peace, Agriculture, Sanitary and Phytosanitary Standards, commodity trade in the bloc, gender, energy and climate change. Through this agreement, Comesa and USAid will work together to promote regional economic integration, reinforce institutional governance and accountability and...

The recent industry data from Kenya Tea Development Agency indicates that the country exported to Egypt tea worth Sh7.4 billion. PHOTO | FILE  IN SUMMARY Kenya accounted for 17.3 per cent of the $7.5 billion that was transacted within the 19 member states last year. The country’s exports to the region stood at Sh131 billion ($1.3 billion). Kenya now accounts for the second largest share of exports in the Common Market for Eastern and Southern Africa (Comesa) behind Egypt, highlighting the importance of the trading bloc to the local economy. A report from Comesa indicates that Kenya accounted for 17.3 per cent of the $7.5 billion that was transacted within the 19 member states last year. Kenya’s exports to the region stood at Sh131 billion ($1.3 billion). The goods from Kenya mainly comprised agricultural produce, especially tea and tobacco, animal products and consumer goods to countries such as Uganda, DR Congo, Rwanda and South Sudan. The value of imports from Comesa member states to Kenya was $612 million (Sh61.2 billion) in the year under review, tilting business in favour of Nairobi. African trade remains centred on the three countries that have an appreciable manufacturing base — South Africa, Kenya and Egypt. Most of the countries in the trading bloc are landlocked, forcing them to rely on countries with ports such as Kenya, Tanzania and Mozambique for goods. The recent industry data from Kenya Tea Development Agency indicates that the country exported to Egypt tea worth Sh7.4 billion. “Egypt and Kenya...

Kenya wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that East African Community members would be comfortable with and which would not be subject to exemptions. PHOTOS | FILE  IN SUMMARY Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries. “Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application,” Kenya’s Principal Secretary in charge of Trade Chris Kiptoo told The EastAfrican. Burundi, Rwanda, Tanzania and Uganda are also working on their positions. A team of experts from the EAC is expected to review the proposals for each country and reach a common position before the revised CET takes effect on July 1, 2017. Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries. Trade officials said the country wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that members would be comfortable with and which would not be subject to exemptions. “Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application,” Kenya’s Principal Secretary in charge of...

By James Anyanzwa Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries. Trade officials said the country wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that members would be comfortable with and which would not be subject to exemptions. "Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application," Kenya's Principal Secretary in charge of Trade Chris Kiptoo told The EastAfrican. He said Kenya was consulting key stakeholders across the EAC before presenting the proposal to the Secretariat for discussion by the Council of Ministers. Burundi, Rwanda, Tanzania and Uganda are also working on their positions. A team of experts from the EAC is expected to review the proposals for each country and reach a common position before the revised CET takes effect on July 1, 2017. Officials privy to the discussions said Kenya wants sugar, maize, wheat and rice removed from the list of sensitive goods altogether but experts fear this would be detrimental for industries, job creation and poverty reduction. "I would go with reducing the rates on these goods but not removing them from the list of sensitive items until our industries stabilise. A drastic move would render industries inoperable," said Eliazar Muga, regional integration and trade consultant and managing...

In order to better gain from the East African Community regional integration opportunities, it’s imperative for all the segments of people to understand the concept of “Integration”, what it means and how it would change people lives. It’s in this regard that the Private Sector Federation in collaboration with the Chamber of Women Entrepreneurs and with support from Trademark East Africa-Rwanda organized a three -days’ workshop to sharpen women in business with knowledge on regional integration and how they would position themselves to tap into the available opportunities. Under the provisions of Article 121 of the Treaty for the Establishment of the East African Community, the Partner States undertake to enhance the role of women in socio- economic development. Member states recognize that women make a significant contribution towards the process of economic transformation and sustainable growth and that it is impossible to implement effective programs for the economic and social development of the region without full participation of women. “What we need is to ensure that women understands what EAC integration means and which kind of opportunities are available and how best Rwandan women can position themselves to benefit from these opportunities,” said Eric Kabeera, the PSF’s Head of Communications. The women were trained in various areas including common market protocol, the single customs territory, and available opportunities both on central and northern corridors. The training held in Rwamagana district attracted more than forty women across different business sectors and were trained by experts from the ministry of Trade...

The number of regional trade agreements has almost quadrupled in the past 25 years, from 70 in 1990 to around nearly 280 today. The collapse of the Doha round of trade talks in Nairobi in December has deflected energy to regional trade agreements. These agreements are great in helping rejuvenate global trade, which slowed as the economic recovery tapered in recent years and the Chinese economy decelerated. Africa is well positioned to engage regional trade agreements. Signed in Sharm-el-Sheikh, Egypt, in June 2015, the Tripartite Free Trade Agreement (TFTA) brings the Common Market of Eastern and South Africa (COMESA), the East African Community (EAC) and the Southern Africa Development Community (SADC) into the continent’s largest free-trade zone covering 26 countries from Egypt to South Africa. The agreement aims to fuel the continued growth of intra-regional trade on the continent, which has skyrocketed from $2.3 billion in 1994 to $36 billion in 2014. Intra-Africa regional trade still accounts for just 25 percent of total exports for the sub-Saharan region, according to the Brookings Institute. By comparison, European and Asian intra-regional exports are at 70 percent and 50 percent respectively. Sub-Saharan Africa still has a distance to go. Residual effect of Trans-Pacific Partnership on global trade The Trans-Pacific Partnership agreement – once ratified – will bring together 12 economies in the Pacific Rim excluding China with the U.S. These countries account for 40 percent of the world’s gross domestic product and a third of its trade: U.S., Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. The pact aims to deepen economic ties between...

More needs to be done by the East African Community (EAC) for the region to achieve universal free movement of goods and people, according to Stephen Ruzibiza, the Private Sector Federation (PSF) chief executive officer. “We are promoting free movement of labour and services, but if some countries are still reluctant to implement what other partner states have agreed on over the past few years, then it’s far-fetched. Tanzania and Burundi have not yet scrapped work permit fees for regional citizens, which affects free movement of labour across the region,” he said. He was speaking in a telephone interview from Nairobi Kenya, where he was attending the inaugural East African Business and Entrepreneurship Conference and Exhibition on Wednesday. The conference, which ended on Wednesday, attracted participants from the five EAC member countries. Reechoing a call by the participants urging the two countries to implement EAC Common Market protocol that was rectified in 2010, he said reluctance by Tanzania and Burundi to scrap work permit fees is against the spirit of integration. Ruzibiza said the fees and long procedures of acquiring work permits have made it hard for traders and professionals to operate in the two countries. He added that they “at times have to incur a lot of costs throughout the process.” According to media reports, the two countries retained the fees due to health, policy and security concerns. This stand, among others, prompted regional workers and employers’ associations to petition the regional assembly, EALA, last year calling for implementation...

PEACE AND SECURITY: Amelia Kyambadde says these two factors are a basic for a conducive investment environment because business owners are assured of lower costs and sustainability. Could you please comment on the cost of doing business in Uganda given the government’s efforts to reduce them. The cost of doing business, when you compare Uganda to some other countries in the region, you find that in some areas it is high, especially transportation from the coast, because of being a landlocked country. As far as labour is concerned, we have cheap labour. Another advantage is that; we have policies and a clear regulatory framework that we have worked on for the past 15  years which are conducive for business. Then of course we have peace and security. Peace and security is key. This makes the costs of doing business lower while at the same time secure and sustainable. Allow me to talk about the laws and policies first, because that has been our success story. It has enabled us to create a conducive environment for investment. We have a Trade Policy, Industrial Policy, a National Competition and Consumer Protection Policy, and a  National Grains Trade Policy. We also have ‘Buy Uganda, Build Uganda’ to promote our local products and a National Accreditation Policy. There is also the Micro Small and Medium Enterprise (MSMEs) Policy, because as you know, most African economies are premised on MSMEs. At the same time, Africa’s challenge is managing them because they are fragmented. Some of...

PIC: Left to right: Minster of Trade Amelia Kyambadde, Minister of Agriculture Vincent Sempijja, African Union Commissioner Rhoda Tumusiime and East Africa Community Deputy Secretary General Jessica Eriyo during  the opening of the Partnership for Aflatoxins Control in Africa conference at Imperial Resort Hotel Entebbe, October 11, 2016. Photo by Kennedy Oryema Uganda is hosting the second Partnership for Aflatoxin Control in Africa (PACA) conference expected to generate solutions for the poisonous and cancer-causing chemicals produced by certain molds in food. Participants at the conference, which is taking place at Imperial Resort Beach Hotel, Entebbe under the auspices of the African Union framework, include agricultural experts from across the African continent. The AU commissioner for rural economy and agriculture, Rhoda Tumusiime, in her welcome remarks yesterday, said Aflatoxins are so far the most pervasive food security challenge in Africa, causing cancer of the liver and undermining growth in humans and animals. “Aflatoxins undermine food security, nutrition and limit trade. They hamper agribusiness and economic development,” she added. For the African countries to achieve their development goals and agenda 2063 of AU, mitigation measures and solutions should be developed to combat aflatoxins that undermine the health of the African population and limit access of agricultural products produced on the continent to the international markets. According to findings of a preliminary study of the impact of the aflatoxins in Uganda, the country loses $37.56m (sh128b) annually in agricultural products contaminated with the poisonous chemicals. The chemicals are also linked to Hepatitis B...

Uganda is heavily reliant on regional trade due to its importance as the leading export destination for Ugandan goods and services.  In line with this, the National Development Plan II identifies the increase of market access for Uganda’s products and services in regional and international markets as key in promoting trade and industrial growth for development. Key priorities are to increase the share of manufactured goods and services in total exports as well as improve private sector competitiveness. Uganda’s regional trade is centered in the Common Market for Eastern and Southern Africa (COMESA). Data from Bank of Uganda shows that exports to COMESA overtook exports to the European Union (EU) in 2006 and have earned the country more than $1.2billion annually since 2012. However, Uganda still basically exports raw materials with limited value addition which undermines the gains of trade. The COMESA region is the main customer for the few manufactured products, but to capitalize on this niche, Uganda needs to build on its industrial base as a basis of increasing the share of manufactured goods in exports as prioritized in NDP II. Competitiveness and manufacturing Developing the manufacturing sector base of Uganda is crucial in harnessing the opportunities provided for by regional markets. The sector is es- timated to have registered growth of 6.2 percent in the Commercial Year 2014, a significant improvement from the marginal 0.6 percent growth registered in the CY 2013. This growth was driven by the strong performance in processing and preservation of meat (5...