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Ghana and Kenya agree to promote intra-trade after Uhuru, Mahama meet

President Uhuru Kenyatta on Monday held talks with Ghanaian leader John Dramani Mahama which centered on cooperation in energy, oil, telecommunications and aviation. At their State House Nairobi meeting, they discussed ways of enriching the bonds of friendship and cooperation between the two countries to improve on the ease of doing business so as to increase overall intra-African trade. President Mahama was among Heads of State and government ministers, United Nations agencies and more than 10,000 delegates who were in Nairobi for the 6th Tokyo International Conference on African Development ( TICAD VI ), the first on African soil. Presidents Kenyatta and Mahama exchanged views on the need to establish Double Taxation Agreements between the two nations, protect investments in each other’s country and how Nairobi and Accra could serve as effective sub-regional aviation hubs in East and West Africa respectively. The two leaders sought the implementation of various agreements signed between the two nations two years ago, which include development of partnerships in Air Services and Trade, Tourism, Agriculture, Energy, Oil and Gas, Information and Communications Technologies, (ICTs), and Education. The Ghanaian leader commended Kenya for its success in the tourism sector. President Mahama had first-hand experience of it when he visited Masai Mara game reserve on Monday. Ties between the two countries date back to the pre-colonial days when Ghana's First President Kwame Nkrumah and Kenya's founding father President Jomo Kenyatta worked closely to defeat colonialism and were both famous Pan Africanists. Source: The Star

East Africa: EAC Services Held Back By Turf Wars

By Sam Okwakol Trade in professional and education and health services features high on the agenda of policy makers and regional organizations in Sub-Saharan Africa, but a host of roadblocks are in the way preventing this from happening. For example, according to 'The Unexplored Potential of Trade in Services in Africa' a report commissioned by the World Bank, all five East African Community (EAC) countries have committed to removing the most explicit barriers to trade in education and health services as part of the 2010 EAC Common Market Protocol. Several EAC countries have placed professional services at the top of the list to be integrated in the EAC Common Market. But despite progress in recent years, most regional services markets remain fragmented by restrictive policies, such as nationality requirements, and regulatory heterogeneity (these are non-tariff barriers that originate from national regulations), for licensing, qualification, and educational requirements. Critics say the central issue is 'protecting one's turf'. Lawyers, accountants, doctors and the other professionals do not want nationals from neighbouring EAC member states upsetting their cosy relationships. Consequently, several barriers, beyond perhaps a lengthy accreditation process, are then put in place to frustrate allcomers. Despite strong demand for services provided by foreign suppliers, undertaking trade is not easy. Multiple barriers are placed on the physical movement of service suppliers, including high-priced visas, difficulties obtaining work permits, and elusive residence status. To circumvent such barriers, most services providers form networks. For instance, Tanzanian Maasai hair stylists organize themselves to avoid these restrictions...

EAC countries to help Agro processors cope with effects of Climate Change – See more at: http://www.newvision.co.ug/new_vision/news/1433891/eac-countries-told-help-agro-processors-cope-effects-climate-change#sthash.sRd6IzKF.dpuf

EAC countries have been advised to build the capacity of Agro processing industries in respective countries, so that they can be able to cope with emerging issues of climate change. Effects of climate change on the industry include reduced raw materials due to either prolonged dry spell or flooding which all lead to food losses among others. The call was made by the minister of state for Industry in the ministry of trade, Michael Werikhe Kafabusa while officiating at the first PACT EAC regional meeting at Silver Springs Hotel recently. It was organized by SEATINI Uganda and CUTS International. The project Promoting Agriculture climate Trade (PACT) linkages in East Africa Phase2 builds capacities of East Africans for climate change awareness, trade driven, and foods security enhancing agro processing in the region. Werikhe said that Agro industrial development presents substantial prospects for the region generating economic growth, new sources of food and income leading to poverty reduction. "It is therefore important to support them through capacity building so that they are aware of the realities of climate change in their works and prepare them so that they can remain productive in the face of effects of climate change," said Werikhe. According to the minister, the first phase of the PACT EAC project have already influenced Uganda Policy, notably the National Trade Sector Development plan which has a linkage between climate change to food security. He told participants to identify key agro processing sectors so as to ably advocate for them with...

East Africa: EALA Okays Kiswahili As Official EAC Language

Arusha — The East African Legislative Assembly (Eala) has passed a resolution to make Kiswahili an official language of the East African Community alongside English. The resolution sailed through after hours of heated debate at a special session held here on Thursday evening during which, the lawmakers underscored the need to elevate Kiswahili as one of the official languages of EAC from the current status of lingua franca. The motion to recognise Kiswahili as one of the official languages of the Community was tabled by three legislators being Mr Abdullah Mwinyi and Ms Shy-Rose Bhanji, both from Tanzania and Mr Abubakar Zein from Kenya. "It is our conviction that the Heads of State of EAC will endorse this motion to enable amendment of the EAC Treaty which has only English as the official language," said Ms Bhanji when she moved the motion before the House before it adjourned for the weekend recess. Pressure is mounting and intensive lobbying is already underway to have the issue brought up before the Extra-ordinary Summit of the regional leaders slated for Dar es Salaam early next month. After a heated debate in the House the legislators eventually agreed that the move to legalise Kiswahili as one of the official languages was long overdue and for it to be realised, the EAC Treaty has to be amended. The outspoken legislator said Kiswahili played a big role in uniting the people of EA from the pre-independence days and that, even the colonial administrators did not lose...

Burundi: Inaction from East African community and continuous inflammatory speeches from the ruling party will lead the country into the abyss

Since end of April 2015, Burundi has plunged into a violent political crisis. The trigger: the candidacy of President Pierre Nkurunziza for a third term in office. The candidacy was contrary to both the spirit and provisions of one of Nelson Mandela’s legacies to Africa, the 2000 Arusha Peace and Reconciliation Agreement, and to the constitution of Burundi. Based on various reports of the United Nations High Commissioner of Human Rights ZeidRa’ad Al Hussein products sinceApril 26, 2015 there are more than 270,000 Burundian refugees and hundreds of Burundians killed, not to mention numerous cases of abductions, torture, rape and arbitrary imprisonment. More worrying, there are increasingly inflammatory speeches from the ruling that can lead Burundi to the worst if there is no action taken from International community, especially the East African community (EAC). As pointed out by the office of the United NationsSpecial Adviser on the Prevention of Genocide, “inflammatory speech often precedes mass atrocities and it is part of the social process that makes those crimes possible, as demonstrated by Radio RTLM in the Rwanda genocide”. In facts, inflammatory rhetoric is one among manycircumstances that facilitate perpetration of mass atrocity such as crimes against humanity or genocide.In a very tense environment like the one in which Burundi is, inflammatory speeches from authorities, like the one from Senate president when he told local administrators to be ready and set their emotions aside if a signal is given to the police to “go to work”, can lead the country into...

Kenya pursuing her own deal after region’s EPA deadlock

Kenya has sent a delegation to the European Union for talks, to shield the country from heavy taxes on its exports, as closing the Economic Partnership Agreement by October appears unlikely. This follows failure by its neighbours –Tanzania, Burundi, Uganda and Rwanda to ink the EPA deal on time , to pave way for its ratification by the European Commission on October 1. Industrialisation Cabinet secretary Adan Mohamed and Principal secretary Chris Kiptoo are leading the trade delegation including the private sector, on four days of talks in Brussels, Belgium, the Star learnt yesterday. The delegation aims to push for a bilateral trade deal with the EU. It is not clear whether Kenya wants to go it alone or seek an extension of the deadline, but an official familiar with the talks said Kenya wants to secure preferential market access even after the October deadline. PS Kiptoo, however, indicated that Kenya is still willing to sign the pact with EAC member states. “We want to go together (EAC member states). So we are trying to hurry it up,” Kitoo told the Star on phone from Brussels. “It will be inappropriate to give you details as at now. We will give details after the meeting.” The signing of the EPA by the East Africa Community was set for July 18, during the United Nations Conference on Trade and Development forum in Nairobi. Tanzania, however, declined to sign. It was followed by Uganda where president Yoweri Museveni said the agreement needed consensus...

Trade CS Adan Mohamed pushes for renewal of European Union trade deal

Trade Cabinet Secretary Adan Mohamed is in Brussels to lobby for Kenya to continue accessing European Union (EU) market duty-free. The Market Access Regulation (MAR) will expire on October 1, 2016, meaning that Kenya risks exporting to the bloc at a higher cost. "This development poses a great risk to Kenya," said Mr Mohamed. He said the issue of renewing the preferential trade terms needs to be addressed before the deadline date set by the EU. The East African Community (EAC) member states are required to sign and ratify the new Economic Partnership Agreement (EPA) to continue accessing the EU market on duty free quota basis. Accompanying CS Mohamed (pictured) is Trade Principal Secretaries Chris Kiptoo, Betty Maina of East African Community and other senior government officials. The development comes in the wake of failed diplomatic efforts by EAC to resolve issues that have stalled the signing of the pact. READ MORE Too much ado about conferences TICAD a huge success for Kenya's economy How police secured Nairobi during TICAD summit. The agreement has been ready for signing after undergoing translation into the EU official languages and Kiswahili. However other regional partners developed cold shoulders, with Tanzania particularly distancing itself from it. The signing of the EPA was scheduled to happen on July 18, 2016, in Nairobi during the United Nations Conference on Trade and Development. However, this failed to materialise with some EAC partners requesting not to sign then. Having re-based its economy, Kenya is the only country in EAC that...

Tanzania wants to make Tanga oil hub

  “We can create a conducive environment for the ship to ship (STS) transfer. The region has 25 metres draft deep.” Charles Mwijage, the industry, trade and investments mimnistr said  last week. He said, “There is enough area for construction of tanks for white products of up to 100,000 tonnes ..Tanga has no congestion of the tanks and it has railway network.” He said Tanga region with its strategic geographical positioning with a deep sea port, the ample land area for the construction of big storage tanks and railway connection makes it an ideal trading hub. He was speaking during the inauguration of the second kiln at Tanga Cement Company at Pongwe. The Minister said construction of an oil trading hub in Tanga would help to cut on freight charges for oil transportation from the source market as large crude oil carriers could anchor and filter oil products into other tankers in the ship to ship (STS) transfer or to transfer storage tanks. The proposed facility would lower prices for oil products and hence attract market in the East and Central African region in Democratic Republic of Congo, Burundi and Rwanda as well as other neighbouring countries, he said. The minister said the construction of an oil trading hub would enable the establishment of government bonded stock or floating stocks as strategic reserves which may influence price movement in favour of the country. The government said last month that plans to complete the construction of a crude oil pipeline from...

Rwanda’s Trade Volumes With Neighbours on the Rise

Rwanda’s informal cross border exports continue to surge by 28.3 percent in the first half of 2016, despite trade hiccups since the beginning of 2016 before climaxing in July with Burundi closing its trade borders. Central bank of Rwanda indicates in its half year results that the country’s informal cross border  export receipts which accounts  for  24.6% of  its total  exports amounted to U$ 66.2 million in the first half of 2016 from U$ 51.6 million in the same period of 2015. Informal trade captures trade between borders that is normally done by communities around borders and may not be recorded among the country’s main trade statistics but is the trade driver along the borders. Over 75 percent of this trade is done by women. Democratic Republic of Congo accounts for 65.8% of Rwanda’s total informal cross border exports, while Uganda accounted for 26.9% and Tanzania, 7.3 percent. Informal trade with Burundi is lagging behind with 0.03 percent. The positive outlook in total informal export receipts John Rwangombwa, Governor of Central Bank says “is due to the high exportation of livestock as well as mobile phones to Uganda,” with Uganda taking over from Burundi. In July this year, second vice president of Burundi, Joseph Butore warned that any local leader or police officer who will endorse export to Rwanda “will have problems”. While this declaration was just a public announcement, Rwandan communities neighboring with Burundi told KT Press that trade with Burundi; the smallest economy in the region has been...

TICAD: Seventy-three MOUs signed to boost Africa-Japan trade

President Uhuru Kenyatta and Japan's Prime Minister Shinzo Abe witness the signing of agreements between Kenya and Japan at State House, Nairobi. /PSCU   A total of 73 Memorandums of Understanding were signed during the 6 th TICAD conference that came to a close on Sunday in an unprecedented move to boost trade between the African continent and Japan. This follows closely the Asian economic giant’s pledge to commit three trillion shillings in public and private support for infrastructure development, education and healthcare expansion in Africa. The package would be spread over three years from this year and include one trillion shillings for infrastructure projects, to be executed through cooperation with the African Development Bank. Another two trillion shillings would be injected by private investors, and included some of the MOUs signed on Sunday. The three trillion is in addition to the 3.2 trillion that Japan pledged to Africa over a five-year period at the last TICAD meeting in 2013. Japan Prime Minister Shinzo Abe said 67 per cent of the previous funds that his country had pledged to Africa had already been put to use in various projects. Under the MOU signed Sunday, the funds will focus on infrastructure, education, health, agriculture, ICT and mining among other sectors. The funding is in addition to measures taken by Japanese businesses as well as the governments of Japan and African countries and relevant organizations, to promote Japanese business activities in Africa. The 73 MOU’s involve 22 Japanese companies and universities with...