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East Africa: Academics Approve EAC's Withdrawal From EPA

By Zephania Ubwani [email protected] Arusha — Prof Humphrey Moshi of the University of Dar es Salaam (UDSM) is one academician who would often argue constructively on a number of topical issues touching the country's economy and beyond with a bit of flexibility. That is why he minced no words when recently reached for comment on the Economic Partnership Agreements (EPA) which Tanzania declined to sign recently in Nairobi during a UN Conference on Development and Trade (Unctad) as had been expected alongside with some member countries of the East African Community (EAC). "This is a very pragmatic decision by government of the United Republic of Tanzania," he told The Citizen saying for a long time he had been advising not only Tanzania but all the EAC partner states not to sign the agreements for a number of reasons. "One; If we want to industrialise, then the agreements contradict our aspirations for that agenda. Two; Opening our economies to products from the European Union (EU) would kill even the small scale productive activities such as animal and chicken husbandry given that local products such as milk and eggs can hardly compete with the imported ones," he said. The economics professor went further by revisiting the colonial and post-colonial trade pattern between Africa and EU, saying it will persist by signing EPA, making Africa - and in this case the EAC - remain a perpetually source of raw materials while Europe will continue to be a source of industrial goods - for...

Rwanda back to Central Africa bloc, 10 years on

DR Congo President Joseph Kabila (centre) and his Rwandan counterpart Paul Kagame after holding bilateral talks at the Rwanda-DRC border in Rubavu on August 12, 2016. PHOTO | AFP By IVAN R. MUGISHA IN SUMMARY Rwanda has formally rejoined the Economic Community of Central African States (ECCAS), after Foreign Affairs Minister Louise Mushikiwabo presented the instruments of ratification to the economic bloc on August 17. Rwanda, which had been a member of ECCAS since 1981, was readmitted into the bloc last year, almost 10 years after leaving. When it left, it cited the need to focus on its membership in the East African Community and the Common Market for Eastern and Southern Africa. Its readmission to ECCAS has opened up more opportunities for Rwanda and boosted economic ties with the other 10 member states. Rwanda has formally rejoined the Economic Community of Central African States (ECCAS), after Foreign Affairs Minister Louise Mushikiwabo presented the instruments of ratification to the economic bloc on August 17. The return repositions the country to benefit economically, politically and diplomatically in the Central African region. Rwanda, which had been a member of ECCAS since 1981, was readmitted into the bloc last year, almost 10 years after leaving. When it left, it cited the need to focus on its membership in the East African Community and the Common Market for Eastern and Southern Africa. Since its readmission, countries such as Chad, which did not have diplomatic representation in Rwanda, have opened diplomatic ties with the country. One...

Extend incentives to SMEs for equal share of regional trade pie

IN SUMMARY Companies that are export-ready and are motivated and willing to export helps them penetrate markets and make good sales, leading to business growth. However such initiatives have to collaborate with the government agencies responsible for promoting exports as that makes interventions sustainable. Over the past few years, the East African Community has made notable strides towards regional integration. Milestones such as the coming into force of the East African Customs Union, the establishment of the Common Market in 2010 and the implementation of the East African Monetary Union Protocol have all served to facilitate trade among member states. The volume of trade, however, has not grown at the envisioned rate, with some countries still having to play catch-up. Intra-EAC trading fell from $5.8 billion in 2013 to $5.6 billion in 2014. Even with this scenario, Kenya, Uganda and Tanzania continued to dominate regional trade as Burundi and Rwanda lagged behind. Overall, the share of intra-EAC trade, the region’s total trade fell to 10.1 per cent from 11.1 per cent in the same period, attesting to the existing imbalance in trade volumes among member states. Data from the Kenya National Bureau of Statistics shows that Kenya’s combined exports to Uganda, Tanzania and Rwanda declined from $69.9 million in January to $1.56 million in February, before rising to $88.8 million in March this year. Another study by Kenya’s Ministry of EAC in 2015 revealed that the Kenya’s exports to the EAC countries declined sharply. It attributed this to stiff competition from cheap...

South Sudan conflict not on EAC Summit agenda

JUBA (HAN) August 20.2016. Public Diplomacy & Regional Security News. The East African Community Extraordinary Summit scheduled for Dar es Salaam next month will not mediate the South Sudan conflict as the country is yet to attain membership status in the regional body. A spokesperson for Tanzania’s Ministry of Foreign Affairs, Mindi Kasiga, told The EastAfricanthat despite signing up to become an EAC member, South Sudan is yet to deposit instruments of ratification with the EAC Secretariat. Ms Kasiga said that the agenda for next month’s EAC Summit which had earlier been scheduled for August, 19, is an evaluation of the status of the ratification of the EAC Treaty by South Sudan. The postponement of the Extraordinary Summit was requested by the Kenyan President Uhuru Kenyatta, Ms Mindi said, without giving the reasons for the request. However, another source said that Tanzania had said it was not ready for the Summit. Tanzania has reiterated its support for mediation effort undertaken by leaders of the  Inter-Governmental Authority on Development (Igad), which is pressing the reluctant President Salva Kiir to accept the offer of beefing-up of peacekeeping troops composed of both Igad and UN, to avert a full-scale war in the world’s newest state. The UN agency for humanitarian affairs and emergency relief has warned that the situation in South Sudan could slide into “even worse humanitarian tragedy” if immediate preventive measures are not taken. The extraordinary summit will also deliberate on a report from the EAC’s mediator for the Burundi peace talks, the...

Kenyan experts say China-funded modern railway to hasten growth

by Christine Lagat NAIROBI, Aug. 19 (Xinhua) -- The Chinese-funded Standard Gauge Railway (SGR) project will speed up economic transformation in Kenya and the larger eastern African region through increased cross-border trade, investments and easy mobility of skilled personnel, experts told Xinhua in recent interviews. China's Exim Bank has provided 90 percent of financing to support implementation of the 472 kilometer high-speed railway that will link the port city of Mombasa to Nairobi. Kenyan experts hailed the SGR project built by China Road and Bridge Corporation (CRBC) a critical milestone. Professor Macharia Munene, a Nairobi-based diplomacy scholar, opined that the railway will promote regional integration and economic progress in an unprecedented way. "The SGR unites various people in more ways than transport for goods and services," Munene remarked, adding that the railway dovetails with Kenya's ambition to become a regional transport and manufacturing hub. Munene noted that SGR will boost prosperity in Kenya and the eastern African region through vibrant maritime and land-based trade in goods and services. "The SGR project has two components; maritime and land-based transport. The maritime links Mombasa to the Middle East and Europe while the land links Mombasa to the interior of Africa. Its purpose is to open up huge areas to create wealth for the people," said Munene. "The modern railway will reduce operational costs for businesses in Kenya and the region. It will also transform lifestyles," he added. Kenyan officials, policymakers and industry executives believe that the SGR project will revolutionize transport as...

Tanzania bows to Rwanda traders’ demands, set billions for infrastructure

Tanzania is aiming at making transforming the corridor into a trade route of choice for eastern and central Africa. By Dias Nyesiga With over 70 percent of Rwanda’s maritime cargo passing through Dar es Salaam port, Tanzania is hastily addressing the demands of Rwandan traders mainly restoring the old infrastructure along the Central corridor. Although they are willing to use Tanzania’s Central corridor against the Kenya’s Northern corridor, Rwandan traders insisted there is need to rehabilitate roads along the central corridor which have been in existent for over the past 25 years. “We are worried that if more traders use the corridor, it will impact pressure on the roads which may lead to their breakdown and this would mean delays along the way,” said Theodore Murenzi, secretary General of Rwanda Long distance truck drivers Association told KT Press. As a result, the government has set aside over Tshs 30 billion in its current budget regime for the rehabilitation of road networks mainly in the central as well as a loan financing for revamping of its standard railway gauge.  “The road network in Tanzania is currently over loaded, but we are fixing breakages as we also look at standard railway gauge as a long term  solution to the infrastructure problem,” saidLawrence Mafuru, Treasury Registrar of the Government of the United Republic of Tanzania. Also, the Tanzania  Ports Authority has also resumed the wagon railway system between  Dar es Salaam to Isaka dry  port which  is expected to  cut  transport  costs for...

Govt launches online service to ease agri-produce trade

The Ministry of Agriculture and Animal Resources yesterday launched a new online portal expected to reduce the cost of importing and exporting agricultural produce. The innovation, according to State Minister for Agriculture Tony Nsanganira, is a double win for importers and exporters of plants/plants materials, animals/animal products and agrichemicals in Rwanda. It means they will be able to spend less time and spend less when acquiring import and export permits. Cheese exhibitors showcase their products in Kigali earlier this year. / File. The ministry developed the portal through a direct project funding of $150, 000 secured from TradeMark Africa (TMA) a regional trade facilitation institution, Nsanganira told The New Times yesterday. He lauded the new development, saying that, “ICT is no longer an option but a necessity for economic development. We can hardly do without it. We rely on the ICTs for almost all our daily activities, including communications, transport, and businesses, just to mention these few.” Participants follow proceedings during the meeting. / Nadege Imbabazi The trade portal comprises of two interlinked platforms; a front-end login portal where Rwanda Agriculture Livestock Inspection and Certification Services (RALIS) stakeholders will access services ranging from information on Sanitary and Phytosanitary (SPS) requirements, international and Rwanda trade regulations, and features to access and request for services. The second platform is a Management Information System to be used by RALIS management and staff to process requests for services. “The linkages within the system will enhance inter-government agency coordination with the aim of improving service...

The Rwanda Agriculture Livestock Inspection and Certification Services (RALIS) goes Digital

Rwanda, 19 August 2016 : It is a double win for importers and exporters of plants/plants materials, animals/animal products and agrichemicals in Rwanda, as they will spend less time and spend less when acquiring import and export permits. The gains follow the development and commissioning of an online trade management information portal. This re-engineering has automated the systems and processes used by Rwanda Agricultural Livestock Inspection and Certification services (RALIS) to regulate and facilitate businesses involved in international trade in the agricultural sector in Rwanda. Rwanda’s Ministry of Agriculture developed the portal through a direct project funding of US$ 150 000 (One hundred and fifty thousand US dollars) from TradeMark Africa (TMA) the region’s fore Trade Facilitation institution. The announcement was made during the official launch of the portal graced by Hon. Tony Roberto Nsanganira, the State Minister of Agriculture. Hon. Nsanganira lauded the new development saying that, “ICT is no longer an option but a necessity in order to reach the economic development. We can hardly do without it. We rely on the ICTs for almost all our daily activities including communications, transport, businesses, just to mention these few. This portal will reduce costs and delays, enhancing compliance enforcement, as well as better transparency, accountability and competency among the traders, transportation agencies and government authorities ; it interfaces with Electronic Single Window, which also eases the clearance activities and exchanging information among multiple government agencies. The system will also eliminate the SPS Non-Tariff Barriers (NTBs) serving no justified purpose and this...

TradeMark Africa initiative bolsters Rwanda’s export capacity

16 Rwandan companies register USD$18M growth in export values after undergoing training programme The programme has been integrated into the Rwandan National Export Strategy TMA invested USD$1.4m in implementing the initiative that trained 16 companies to prepare and implement export plans Kigali, 11 August 2016: A TradeMark Africa (TMA) funded initiative to increase trade flows has boosted Rwanda’s export capacity of select companies in Rwanda. Out of the a target of 16 companies, 13 now export outside Rwanda, thus contributing to increased Rwanda exports to the rest of the EAC. Some of the companies that were able to export out of Rwanda include chalk producer G-Mart and food manufacturer SOSOMA. Rwanda Development Board (RDB) implemented the export development programme through the Irish firm Traidlinks between 2013 to 2015. It was funded by TMA to a tune of US$1.4 million. To ensure sustainability, RDB has integrated the approach into the Rwanda Export Development Strategy as a way of making Rwandan companies export-ready. Six local consultants were engaged to train the 16 companies on how to prepare and implement export plans.  TMA shares its key lessons learned as the fact that skills transfer and mentoring promotes and builds capacity and confidence of exporters, which keeps them sustainable in the export markets. Existence of institutional frameworks and collaboration by the RDB and implementation partners keeps the programme sustainable. The organization further urges Rwanda to develop a competitive private sector with capacity to compete and export value added products to the EAC markets and...

East Africa: Rwandan Traders Welcome Dar Port's Kigali Office

The opening of a liaison office for the Tanzania Ports Authority (TPA), scheduled on October 1, has been welcomed by Rwandan traders who will see their business get a lot easier. During a recent visit to Rwanda, TPA director general Deusdedit Kakoko said that the office in Kigali could reduce the costs for Rwandan importers by up to 20%. "We have been here for the last three days meeting exporters and importers to hear about their concerns. The cost of doing business through Tanzania is going to be lowered with the opening of the Kigali Liaison Office. There are also many improvements taking place at the port of Dar es Salaam and the Central Corridor in a bid to offer efficient and better services to our Rwandan clients," he said. The liaison office, which will be located in M. Peace Plaza, will bring the port's services closer to traders in order to reduce costs of doing business and hurdles in logistic and supply chain. Rwandan traders will no longer have to travel to Dar to clear their cargo. Kakokoalso observed that security services at the port have been upgraded to combat theft, among other measures. "We have also reduced the checking process from over 20 to 3 checkpoints, and consequently, transit is taking only three days from Dar to Kigali, down from the previous seven days," he explained. "Rwanda is a growing market and we are committed to facilitate our business partners. We vow to make sure that Kigali exporters...