Burundi’s recent decision to ban cross-border trade with Rwanda again came to the fore on Tuesday as members of the East African Legislative Assembly (EALA) sat in Arusha, Tanzania. The lawmakers supported a motion moved by Ugandan representative Bernard Mulengani, seeking the Assembly’s quick intervention to thwart what he termed as a ‘critical situation’ that can deteriorate and hamper the broader EAC integration agenda. Mulengani took to the floor under Article 13 of the Rules of Procedure to adjourn debate on other matters so as to debate issues of public interest. Granted, he then particularly requested the House to discuss what he described as urgent issues of governance to the bloc. According to Mulengani, partner states may have misunderstandings but going to the extent of restricting cross-border trade breaches the EAC Treaty and the Common Market Protocol, which guarantee free movement of people, services, labour and capital. The lawmakers noted that the latest developments require immediate attention. Speaker Daniel Kidega asserted that the Assembly would play its part and pronounce itself on the critical matters raised by Mulengani. Kidega said: “We shall not allow the Community to go into auto-pilot. There is leadership in the Community. The various committees please take up this matter as raised here.” The Speaker assigned the respective House committees to immediately delve into the matters and report back before the end of the current sitting or, at the very latest, in the next. Banning of cross-border trade, a matter concerning trade and movement of citizens...

Global warming could create substantial economic damage in agriculture, a new study conducted by a team of scientists of the Potsdam Institute for Climate Impact Research finds. Around the globe, climate change threatens agricultural productivity, forcing up food prices. While financial gains and losses differ between consumers and producers across the regions, bottom line is that consumers in general will likely have to pay more for the same basket of food. As the additional expenditure for consumers outweighs producers' gains, increasing net economic losses will occur in the agriculture and food sector towards the end of the century. However, economic losses could be limited to 0.3 percent of global GDP - depending on agricultural trade policies. "Agriculture is very sensitive to climate change - even a small increase of global mean temperatures can have significant effects on regional crop yields, affecting both the profitability of agricultural production and the share of income spent on food", lead author Miodrag Stevanovi? says. "Our study quantifies economic impacts and analyses the role of international trade as an adaptation measure. We find that economic losses in agriculture could add up to the annual amount of roughly 0.8 percent of global GDP at the end of the century with a very restricted trade regime. As small as this percentage sounds, it actually translates to losses of 2.5 trillion US Dollars and is comparably higher for regions with limited agricultural resources with respect to growing agricultural demand, for example the Middle East, Africa and India. In...

ANALYSISBy Zephania Ubwani Arusha — It was a rather shaky deal when in August last year the government of President Salvar Kiir of South Sudan signed what was supposed to be a binding peace agreement with his rival Riek Machar to end the bitter conflict that has raged since December 2013. For many, it was a non-event: conflict had divided the world's newest nation down the middle on ethnic lines. Apparently, it had become very difficult to reconcile the two sides, no matter the gear used. This was vindicated when heavy gunfire rattled throughout the sleepy capital of Juba in early July. It became evident that the war in South Sudan had taken a much more dangerous turn with possibly disastrous consequences. Even as the East African Community (EAC) heads of state prepare for a special summit to be held in Dar es Salaam next month, hope continues to fade for the bloc's newest member. No solution is in sight, at least for the moment. The East African Community Extraordinary Summit, which had earlier been scheduled for August 19, will not mediate the South Sudan conflict because the country is yet to attain membership status in the regional body. The Foreign Affairs ministry has said the agenda for next month's EAC Summit is an evaluation of the status of the ratification of the EAC Treaty by South Sudan. The extraordinary summit will also deliberate on a report from the EAC's mediator for the Burundi peace talks, the Ugandan President Yoweri...

Rwanda will next month’s September host the first he Global African Investment Summit COMESA and government of Rwanda, a statement from the organisers indicates. The summit is expected to attract over 1,000 public and private sector leaders representing US$200 billion of funds and with an interest in the investment, trade and business opportunities arising in the region. Delegates include African heads of states, government ministers and senior officials, chief executive officers who will gather to transact on project opportunities and deploy investment. According to the organizers, the forum provides an opportunity for the delegates to discuss the key challenges and opportunities surrounding a variety of business sectors including tech, energy and infrastructure. The summit will be the first edition of the Global African Investment Summit of COMESA and will be hosted at the Kigali Convention Center (KCC). According to the latest figures from the World Bank, the African continent has become the second most attractive investment destination, with foreign investment hitting a record $60 billion dollars, leading Africa to be referred to as the new China. Key on the agenda is expected to be the tripartite arrangement of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern Africa Development Community (SADC) that was launched last year. The arrangement is aimed at driving intra- African trade by creating the continent’s largest trading block, with 26 countries, a combined GDP nearing $1.2 trillion, and a market of close to 620 million consumers. Established in October 2014,...

Tullow Oil workers at a drilling rig in Turkana. Tullow struck Kenya’s first oil in the northwest region of in Lokichar in 2012, and followed it with a string of other finds. PHOTO | FILE  IN SUMMARY Tullow Oil will initially produce 2,000 barrels of crude oil per day and have stocks ready for export in June 2017. Kenya plans to have the oil transported by road from Turkana to Eldoret for onward delivery by train to the port of Mombasa. British oil firm Tullow on Wednesday raised Kenya’s hopes of becoming an oil exporting country after it officially announced plans to start producing oil from Turkana in March next year. Tullow Oil chief operating officer Paul McDade told President Uhuru Kenyatta at State House Nairobi that it will initially produce 2,000 barrels of crude oil per day and have stocks ready for export in June 2017. The announcement is in line with State House’s plan to have the oil transported by road from Turkana to Eldoret for onward delivery by train to the port of Mombasa — a distance of 1,089 kilometres. “Following President Kenyatta’s directive that exportation of Kenya’s first oil be expedited, Tullow Oil has this afternoon confirmed that it will start oil production in March next year,” a statement from State House said. Tullow’s count of the Turkana oil reserves so far stands at 750 million barrels — which is considered commercially viable at the current prices of $50 (Sh5,050) a barrel. One barrel is equivalent...

Mr Iswaran (left) during the signing ceremony yesterday. The agreements come at a time of growing interest among Singapore firms to explore opportunities in Africa. Photo: IE Singapore Agreements on tax, bilateral investment and air services open doors to emerging market. SINGAPORE — The Republic yesterday inked several tax, investment and air services agreements with Africa, in a move that will boost relations with the world’s second-largest and second most-populous continent. The agreements will also ease entry by Singapore firms into a region that investing guru Mark Mobius once described as the emerging market story of the next decade. Among the agreements signed by Minister for Trade and Industry (Industry) Mr S Iswaran at the fourth edition of the Africa Singapore Business Forum (ASBF) was an Avoidance of Double Taxation Agreement (DTA) with Ethiopia, a Bilateral Investment Treaty (BIT) with Mozambique, and a Bilateral Air Services Agreement (ASA) with Nigeria. “While our traditional overseas markets remain important, Singapore companies must venture beyond these markets to seize opportunities in untapped markets in regions such as Africa. Ethiopia, Mozambique and Nigeria are three fast-growing African economies and the agreements signed today signify commitment on the part of Singapore and the respective African governments to support trade, tourism and investment between our countries,” said Mr Iswaran. The Ethiopia-Singapore DTA clarifies the taxing rights between Singapore and Ethiopia, on all forms of income flows arising from cross-border business activities, and minimises the double taxation of such income. This will lower barriers to cross-border investment,...

CRAFTS producers in East Africa will soon be able to sell their products to international markets following the plans to establish an annual professional for Business-to-Business (B2B) trade fair for Home Décor, Fashion Accessories and Lifestyle products in the region. Currently, there is no B2B trade platform for the crafts sector in the whole of East African region. The Africa and Middle East World Fair Trade Organization (WFTO) regional director, Mr Bernard Outah said there is need to establish B2B so that producers could easily sell their products to any country of their choice without problem. He said, at the moment, the only option for producers to reach regional or international buyers is to travel around the region in search of potential buyers or to participate in trade fairs in South Africa, West Africa or International trade fairs in Europe or the US. He said the high cost of participation fails most of African crafts producers from attending international trade fairs. “Failure to access market opportunities is one of the key challenges that face most of African crafts producers in East African region,” he said. According to Mr Outah, the establishment of B2B will enable East African crafts producers to excel in the area and boost their businesses at both local and international levels. Meanwhile, the public has been urged to recognize the crafts sector as a key economic sector in the region and offer required support so that it can unfold its potentiality. CBI programme manager for the export...

By Joseph Olanyo The East African countries must commit to develop the agro-processing sub-sector but also take care of the climate change issues therein, experts have said. Climate change, food security and trade experts were gathered in Kampala recently to review recent policy research on how agro-processing can become more climate sensitive, trade driven and food security enhancing in the region. "The region's success in realising this potential will partly depend on its ability to factor in the ever-increasing challenges posed by climate change, and work in synergy with its own trade agenda," said a statement released after the meeting. The regional meeting, jointly organised by CUTS Geneva and SEATINI, also identified necessary policy actions to be pursued over the next three years under the regional project "Promoting Agriculture, Climate and Trade Linkages in the East African Community - Phase 2" (PACT EAC2). The project seeks to build capacities of East Africans to be climate-aware, trade-driven and food security-enhancing agro-processing in their region. "We all agree that climate change is real, and that agro-processing is the way forward. These issues are intertwined," said Fred Mukasa Mbidde, the chairman of East African Legislative Assembly's Committee on communication, trade and investment. Dr Oswald Mashindano, a principal research associate with the Economic and Social Research Foundation Tanzania, said that whereas agro-processing development has been earmarked as a key regional priority, multi-pronged challenges continue to affect the East African region. Mashindano, also a rural development academic at the University of Dar es Salaam said...

By Stephen Otage Kampala — Industrialist Maggie Kigozi has urged Ugandan women business leaders to harness business incentives that regional governments have provided to expand their businesses beyond borders. Speaking at a regional symposium and recognition awards dinner for the most influential women in business and the government last Friday, Ms Kigozi said one of the main incentives they have been given is security. "Our biggest asset is security. Without security, there is no business. We have economic stability. Inflation has been curbed, administrative barriers have been removed, we have a working civil service and technology is helping us bypass the bureaucratic administration," Ms Kigozi said. She said with such basic necessities, there was no reason why women should not join the intra-Africa trade beginning with the East African Community and spreading their wings to the Common Market for Eastern and Southern Africa. "Aminah Hersi started in Kenya and she is now in Uganda. [Julian] Adyeri has a bakery in South Sudan, Victorious Educational Services has students from all over the region, Kampala University is in Rwanda, Nairobi, Tanzania and so is Serena hotel; there is free movement of goods and services," Ms Kigozi said. Ms Hersi is the chief executive officer of Horyal Investment Holding, a company behind Oasis Shopping Mall, among other business ventures. Speaking to the beneficiaries of the awards, Ms Hersi told the women to brace themselves for a brighter future because it is a God-sent blessing. "Since 2008 when I was nominated the best woman...

Elephant tusks. Elephants are some of the endangered wild animals targeted by poachers. / Net. The East African Legislative Assembly (EALA) is calling on East African Community Partner States to enact new wildlife legislation with enhanced penalties and improve strategies and protection measures in a bid to save the region’s wildlife. Findings by EALA’s committee on agriculture, tourism and natural resources indicate that elephants and rhinoceros are the animals most vulnerable to poaching but other species including leopards, pythons, marine turtles and others are also endangered. The committee’s oversight activity report says that contributing factors include persistent weaknesses in the legislation governing wildlife crime, along with poor administration and low levels of compliance. “The Committee recommends the EAC Secretariat to expedite the ongoing anti-poaching strategy to combat poaching, illegal trade and trafficking of wildlife and wildlife products to foster regional coordination,” said committee chairperson MP Christophe Bazivamo (Rwanda). Christophe Bazivamo. “We recommend the EAC Secretariat to develop common strategies, standards, and guidelines for conservation of shared natural resources. The Committee also urges East African elephant range countries, and those through which ivory transits, to create national anti-poaching multi-agency security task force.” The report was presented Tuesday as the Assembly begun its ordinary sitting in Arusha, Tanzania. Other measures called for include forming specialised units to combat poaching and illegal wildlife trade, enhancing inter-agency collaboration, and increasing international cooperation. Wildlife crime is one of the most lucrative forms of illegal activities worldwide and it hurts people, communities and economies. Besides urging...