By Peterson Tumwebaze The East African Community (EAC) needs a strong and uniform regulatory framework that promote financial inclusion to ensure sustainable growth in the region, experts say. Prof Lemma Senbet, from the African Economic Research Consortium (AERC), said EAC should put in place clear systems that promotes financial inclusion to spur growth. He added that a regionally integrated financial system that also feeds into a global system will help strengthen the financial industry on the continent. He also noted that a strong linkage between the financial industry and other sectors of the economy is crucial for Africa. "It is important to have a globally competitive financial system and regulatory framework to ensure best practices," he added. He was speaking during a China-Africa Media Think Tank symposium in Mombasa, Kenya recently. Prof Humphrey Moshi, the Centre of Communication Skills at the University of Dar es Salaam, Tanzania, said there is need to create linkage between financial sector development and poverty alleviation, as well as employment creation. He said it is essential to develop the capacity of the financial sector to exploit its potential and contribute to the region's growth. "There is need to strengthen capacity of financial systems to perform multiple functions and not mere existence of the systems," he added. "Sub-Saharan African countries, including the EAC bloc, have undertaken a lot of economic and financial sector reforms over the last two decades, yet many still face a severe financial development gap compared to advanced and other developing economies," Prof...

Kenya's exports will be stung by EU import duties of up to 25 percent if talks are not concluded by 1 October. (Photo:Ninara) One of the main economic arguments used by Leave campaigners before the UK's referendum on EU membership in June was that the UK, freed from its EU shackles, would be able to cut its own bilateral trade deals entirely on its own terms, and much quicker than as part of the EU bloc. The UK will remain party to all EU trade agreements until it formally leaves the bloc, and cannot conduct any separate negotiations of its own. It hasn’t had to negotiate a trade deal for more than 40 years, which probably explained the Leavers’ optimism about how easy it would be. Trade negotiators are among the most world-weary of government officials. Not surprising really, when you spend years negotiating milk and cheese subsidies only to see a deal collapse when the politicians get involved. Two months after the referendum and the UK’s newly created international trade ministry is not launching any trade talks. Instead, it's embroiled in a turf war with the Foreign Office over who gets to handle economic diplomacy. Its officials don’t have their own building yet. But the UK is not the only one in limbo. October deadline A fortnight after the referendum, Tanzania and Uganda abandoned plans to sign a regional trade agreement between the East African Community (EAC) and the EU citing the political turmoil caused by the Brexit vote....

THE East African Community is reported to be in deep financial crisis as the Regional Parliament is resuming its session here this week to address the situation. The East African Legislative Assembly is embarking for its First Meeting of the Fifth Session of the Third Assembly which runs at the EALA chambers for twelve days, from this Monday, August 22, 2016 to next week’s Friday, September 2, 2016. EALA Spokesperson, Mr Bobi Odiko said here that the Assembly is to be presided over by the Speaker, Mr Daniel Kidega, with the top on the agenda during the two-week period being the debate on the Report of the Committee on Accounts on the EAC Audited Accounts for the Financial Year ended 30, June 2015. The report which examines and considers the EAC Audited accounts for the year ended 30, June 2015, arises from the audit of the EAC Organs and Institutions including 20 projects and Programmes and this in accordance with Article 134 of the Treaty for the Establishment of East African Community. “Upon completion of the audit, the EAC Council of Ministers tabled the Report of the Audit Commission to the House on 24, May 2016. The Audit Commission’s report which indicates that the overall budget performance stood at 65 per cent is set for debate at a time when the Community is facing a precarious funding situation,” said the EALA statement. The House is further expected to consider a Report of the Committee on Agriculture, Tourism and Natural Resources...

NAIROBI, Aug. 22 (Xinhua) -- Japan is expected to use the sixth Tokyo International Conference of Africa's Development slated for Nairobi, Kenya this week to boost trade relations between the nation and the continent at a time when it is trailing behind its Asian peers. According to data released Monday by the Kenya National Bureau of Statistics (KNBS), while Japan's monthly exports to Kenya average 67.4 million U.S. dollars, India ships into the East African nation goods worth 193 million dollars and China's exports stand at 233 million dollars. In the January-May period, according to the KNBS data, Japan's exports to Kenya stood at 339 million dollars. During the same period, India was recorded at 965 million dollars while China at 1.2 billion dollars, according to the government agency. Japan's top exports to Kenya consist of iron and steel products and motor vehicles. "This conference will bring both immediate and long-term benefits to both Kenya and Japan. We expect to strengthen existing bilateral relations with Japan," said Devolution Cabinet Secretary Mwangi Kiunjuri. The East African nation is also expected to push for direct flights between Tokyo and Nairobi to boost its exports to the Asian nation. Source: Xinhuanet

Rwanda seeks to widen business horizons in attempt to become more regionally competitive as the country is re-admitted to the Economic Community of Central African States (ECCAS), eight years after pulling out of the regional bloc. As founding member of ECCAS in 1983, Rwanda pulled out of the bloc in 2008 to concentrate on its membership to the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA). Last year in May, the ECCAS summit in Chad welcomed Rwanda as an ECCAS member. An agreement was signed confirming the readmission of Rwanda after its application in 2013. Speaking to reporters on Monday, Francois Kanimba, Rwanda minister of trade and industry said that Rwanda will reap big from various regional economic groupings. "Our country joining ECCAS is a big opportunity for Rwandan traders to sell their goods and services on a bigger platform across the continent. Local producers will benefit from increased market size which is an important factor facilitating innovation and competition," he added. Kanimba stated that Rwanda has gained a lot from being a member of multiple regional blocs since each bloc has comparative advantages to the other, ultimately strengthening the country's economic institutions. Last week, Rwanda foreign minister Louise Mushikiwabo, presented the instruments of ratification to Gabonese President Ali Bongo Ondimba, the current ECCAS chairperson, that will see the country officially recognized by ECCAS member states. According to Mushikiwabo, Rwanda will be in position to tap into the potential of the regional bloc in...

The war in South Sudan has had a negative impact on trade in commodities such as foodstuffs. By Allan Olingo South Sudan is pleading with Kenya and Uganda for economic support to avert a humanitarian crisis after a fresh conflict brought the country to its knees. Mid last week, a delegation of Transitional Government of South Sudan officials led by First Vice-President Taban Deng Gai was in Kenya on a mission seeking a bailout. The EastAfrican has learnt that Juba will also be reaching out to Uganda later this month to craft a bailout package that will see Kampala pay its traders the $35.2 million Juba owes them in a bid to have them resume supplies to the country. "The vice president will go to Kampala to request the Ugandan government to pay traders who supplied cereals to Juba but haven't been paid. The money will then be converted into a loan, for which Juba and Kampala officials will work out a repayment plan," a diplomatic source with the knowledge of the matter said. The delegation to Nairobi, which included four ministers, met with Kenyan President Uhuru Kenyatta, Cabinet Secretary for Foreign Affairs Amina Mohamed and a number of Kenya government officials. A source privy to the discussions told The EastAfrican that Mr Gai informed President Kenyatta that the country's economy was in a perilous state and needed urgent help. Mr Gai implored the Kenya government to give his country a soft loan to help it deal with its current...

Burundi’s ban on food exports to Rwanda has sent prices in Kigali to a record high this year. TEA GRAPHIC | FOTOSEARCH  IN SUMMARY Agricultural and livestock products are the major commodities traded between the two neighbouring countries. Burundi largely exports fruits and vegetables, palm oil and silverfish to Rwanda. Burundi is Rwanda’s second largest cross-border market after the Democratic Republic of Congo, with the two countries accounting for more than half the total formal and informal cross-border exports. Before the political crisis broke out in Bujumbura last year — after President Pierre Nkurunziza was re-elected for a third term — Rwanda exported maize, maize flour, wheat flour, cassava flour, potatoes and milk to Burundi. Burundi’s ban on food exports to Rwanda has sent prices in Kigali to a record high this year. The two countries’ worsening diplomatic relations led to the closure at the end of July of the border by the Burundian government, which also imposed export restrictions on its neighbour, citing domestic food security concerns. As a result, food supplies are now going into Rwanda from Burundi through the black market. “The few food imports from Burundi are coming through illegal ways and are extremely expensive,” said Silas Sabiiti, a grocery trader at Kimironko food market in Kigali. “The shortage is apparent here and this is what has pushed up the prices. The demand for fruit from Burundi has always been high because of its renowned quality,” he added. Agricultural and livestock products are the major commodities...

IN SUMMARY A new report by Uganda’s Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI)—a precondition for having a single currency by 2024 — from 2015 to a yet to be announced date. The East African Community’s dream of a monetary union and a single currency may not be realised by the 2024 deadline. A new report by Uganda’s Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI)—a precondition for having a single currency by 2024 — from 2015 to a yet to be announced date. Now, without the money for the EAMI, which will evolve into the East African Central Bank, the region is taking the longer route — that of the East African Legislative Assembly. According to the East African Monetary Union roadmap, the EAMI was to be established by partner states — and not EALA. Draft Bills EAC spokesperson Richard Othieno Owora said the bloc is trying to establish EAMI through an EALA Act even though this will delay other institutions needed for EAMU to begin working. These include the East African Statistics Bureau, the East African Surveillance, Compliance and Enforcement Commission, and the East African Financial Services Commission. “So far, the draft Bills for the establishment of the EAMI, the EASB, and EASCEC have been developed and negotiated by partner states,” Mr Owora said. He...

By Nestory Ngwega THE government is in plans to widen the scope of companies importing oil in the country in order to create business competitiveness environment that will necessitate reducing the price of oil. The statement was made here yesterday by the Minister for Energy and Minerals, Prof Sospeter Muhongo when he visited GBP Oil Company in Tanga city. He said currently the price of oil in Tanzania is still higher in comparison with the price of the same commodity in other neighboring countries despite the fact that they all buy oil from the same world market at the same price. He said following the research conducted by an expert from the ministry aimed at finding out why the price of oil in the country is higher, they came up with the resolution that the government has been working on it. According to Prof Muhongo, the finding established that oil price in Tanzania is higher because of the few number of companies which import the commodity, something which reduces the competition in terms of price setting. "You know in Tanzania we have few oil importing companies... they are four companies only...and if the companies are few, it is easy to collude and set the same price...but if we add more companies to compete, even the price will go down and this is what we have learned from our neighbors," he said. He further said following such study, the government is now planning to give oil importing licenses to many companies...

In an ambition to nourish an effective nationwide integration within the East-African bloc, the East-African Community - Youth Ambassadors Platform-Burundi Chapter, collaboratively with the Ministry at the Office of the President in Charge of East African Community Affairs, organizes a national debate on EAC integration under the theme: "YOUTH EMBRACING THE EAC INTEGRATION". The East African Community (EAC) is the regional intergovernmental organization of the Republics of Burundi, Kenya, Uganda, Rwanda, the United Republic of Tanzania and South Soudan, with its Headquarters in Arusha, Tanzania. South Soudan joined the community early in 2016 following Burundi and Rwanda which joined EAC on 1st July 2007. The youth of East Africa are important stakeholders in the EAC processes and form substantial part of the population. Article 120 (c) of the EAC Treaty provides for adoption of a common approach for involvement of the youth in the integration process through education, training and mainstreaming youth issues into EAC policies, programs and projects as one of the strategic interventions towards the realization of a fully integrated Community. The debate is to take place at National Institute of Public Health, commonly known as INSP, respectively on august, 20th 2016 and august, 27th with a final debate to be held on September, 10th. The debate will engage young people from partaking universities (University of Burundi, Ecole Normale Supérieure, INSP, Université Lumière, Université des Grands Lacs and ISMR) in a battle of opinions with the focus on enhancing the "East-Africanity" awareness among the youth for a functional...