IN SUMMARY Rwanda has mobilised $10.5 million in export credit guarantees to subsidise production, market entry, financing and insurance costs for its exporters, especially to the US. Last week, Trade and Industry Minister Francois Kanimba said that entering external markets is costly for small and medium enterprises if they bear all the costs. “We are looking for ways of sharing these costs,” he said while launching the Rwanda Africa Growth and Opportunity Act (Agoa) Action Plan. The initial plan is to support 30 exporters to sell high-value products in the US market. Rwanda has mobilised $10.5 million in export credit guarantees to subsidise production, market entry, financing and insurance costs for its exporters, especially to the US. Kigali has been facing dwindling foreign exchange reserves, which have dropped to 3.6 months’ cover, and a weakening currency that has depreciated by 7.6 per cent against the dollar. In the 2016/17 budget, Finance Minister Claver Gatete announced a $1.2 million allocation to grow the export credit guarantee scheme. Last week, Trade and Industry Minister Francois Kanimba said that entering external markets is costly for small and medium enterprises if they bear all the costs. “We are looking for ways of sharing these costs,” he said while launching the Rwanda Africa Growth and Opportunity Act (Agoa) Action Plan. The initial plan is to support 30 exporters to sell high-value products in the US market. In the East Africa Community, Rwanda is one of the countries that has not fully exploited the quota-free, duty-free...

IN SUMMARY The Burundian Coalition for the International Criminal Court, a lobby of 11 civil society organisations, is calling for an independent secretariat for the Benjamin Mkapa-led mediation team, saying East African Community Secretary General Liberat Mfumukeko is not neutral in the Burundian dialogue talks. “We have written to the EAC Heads of State Summit and to Mr Mkapa himself. Mr Mfumukeko is just following the agenda of the Burundian government; this is not helping the process,” he said. The UN Committee Against Torture in a recent meeting in Switzerland, voiced concern about reported reprisals against Burundians and civil society leaders. The Burundian Coalition for the International Criminal Court, a lobby of 11 civil society organisations, is calling for an independent secretariat for the Benjamin Mkapa-led mediation team, saying East African Community Secretary General Liberat Mfumukeko is not neutral in the Burundian dialogue talks. They claim that Mr Mfumukeko has sidelined key stakeholders who Bujumbura is uncomfortable with. “Mr Mkapa should have his own secretariat in this mediation. Mr Mfumukeko is from Burundi and continues to sideline the parties at the centre of the conflict, while inviting others,” said Lambert Nigarura, the chairperson and legal representative of the lobby group. “We have written to the EAC Heads of State Summit and to Mr Mkapa himself. Mr Mfumukeko is just following the agenda of the Burundian government; this is not helping the process,” he said. The government of Burundi issued arrest warrants for some of the parties to the talks whom...

IN SUMMARY Relations between the two neighbours have deteriorated since last year, with Burundi accusing Rwanda of supporting and training rebels to fight President Pierre Nkurunziza’s government. Kigali denies the accusations. But the decision by Burundi to ban food exports to Rwanda as well as stopping free entry and movement of people from either side, has been seen as the final straw for the bilateral ties between the two countries. Rwanda has criticised the decisions by Burundi, saying it contravenes trade and free movement protocols put in place by the East African Community. The recent decision by Burundi to ban food exports to Rwanda has seen a further deterioration of relations between the two neighbours. Two weeks ago, Burundi banned the export of fruits and vegetables to Rwanda and closed the border between the two countries leaving hundreds of travellers stranded. Officials in Bujumbura said that the country was retaliating against Kigali for “destabilising” the country. Relations between the two neighbours have deteriorated since last year, with Burundi accusing Rwanda of supporting and training rebels to fight President Pierre Nkurunziza’s government. Kigali denies the accusations. READ: Kigali now tells off Burundi But the decision by Burundi to ban food exports to Rwanda as well as stopping free entry and movement of people from either side, has been seen as the final straw for the bilateral ties between the two countries. “Our businesses have been affected. From Burundi, we have been buying vegetables and fruits, which have a ready market in...

Construction of the Standard Gauge Railway to link Tanzania and locked East African countries of Uganda, Rwanda and Burundi and facilitate transport in the central corridor is expected to start in December. The Minister for Works, Transport and Communications, Professor Makame Mbarawa, said in Dar es Salaam during a press briefing that the exercise to seek a contractor who will carry out the project is in good progress. The entire project is estimated to cost about 16 trillion/- ($15 billion) in which the railway line is expected to connect the port of Dar es Salaam to Rwanda and Burundi, while two additional lines will connect Dar es Salaam to the coal, iron ore and soda ash mining areas in the south and northern parts of the country. The line to Kigali, Rwanda is to ultimately connect the Democratic Republic of Congo (DRC). The railway line will run from Dar es Salaam to Tabora-Isaka-Mwanza, Tabora-Mpanda-Kalemela, Tabora-Uvinza-Kigoma and Isaka-Keza-Musongati and Burundi. The railway lines connect landlocked East African countries of Uganda, Rwanda and Burundi. “The project, which will facilitate railway links between four countries (Rwanda, Burundi, DR Congo and Uganda) and the Dar es Salaam Port, will be implemented in four phases,” Prof Mbarawa said on the resolutions of the Seventh Interstate Council of Ministerial (ICM). He added that completion of the project is expected to take three years. The ICM, which is composed of ministers of transport from Burundi, Rwanda, DR Congo, Uganda and Tanzania, was preceded by a Central Corridor...

By CORRESPONDENT, MOMBASA, Kenya, Aug 13 – The Kenya Ports Authority is currently facing delays and congestion of cargo after stringent measures were introduced to curb corruption. Hundreds of long distance drivers remain stranded inside and outside the port waiting to load their cargo and are now protesting against the delays. The Kenya International Freight and Warehousing Association (KIFWA) said transit cargo for neighbouring countries Uganda and South Sudan is pilling at the port. The Kenya Revenue Authority has also suspended staff involved in a tax evasion scandal hence leading to more delays within the port. According to KIFWA, Kenya Revenue Authority hired staff not familiar with newly introduced clearing procedures aimed at reducing cases of graft at the port hence affecting smooth off take of cargo at the port. KRA Chief Manager Operation Joseph Kaguru confirmed that they are facing challenges but the matter is being addressed. “We cannot continue working with the same staff accused of colluding with cartels to sneak out containers, they were suspended and the investigations are still going on,” said Kaguru. Kaguru said the new measures are meant to mitigate the risks. KIFWA secretary Bernard Simiyu said many of the transporters have lost millions of shillings due to delays. Recently KRA said they were investigating how 104 containers worth Sh100 million were removed from the port between June and July 2016 without payment of tax. At least 10 KRA and KPA employees have been charged with conspiracy to evade payment of Sh20 million in...

AMMAN — The Trade Ministry is working to find new markets to promote Jordanian products in East African and Central Asian countries, Deputy Prime Minister for Economic Affairs Jawad Anani said on Sunday. Chairing a meeting at the ministry, Anani, who is minister of industry, trade and supply, said that finding new markets would help increase the volume of national exports and make up for the losses caused by the closure of the Iraqi and Syrian markets. The ministry plans to increase exports of various goods, including pharmaceuticals, to Palestine by $1 billion, he said. An economic delegation is scheduled to visit Kazakhstan in September to discuss cooperation, he said, adding that the ministry hopes to open the Kazakh market to Jordanian products. The meeting, held to discuss challenges to the pharmaceutical industry, was attended by Health Minister Mahmoud Sheyyab and Amman Chamber of Industry President Ziad Homsi. Anani highlighted the importance of boosting the pharmaceutical sector through scientific research and the development of new products. A comprehensive policy on the challenges facing the sector will be developed in cooperation with the public and private sectors, in line with the Jordanian Association of Pharmaceutical Manufacturers’ recommendations, the minister added. Anani and Sheyyab also highlighted outcomes of talks with an Egyptian ministerial delegation that visited Jordan last week to register Jordanian medicines in Egypt. They said an agreement was reached on joint rules to register medicine, adding that other issues were resolved. Representatives of the association briefed the ministers on challenges...

By James Kariuki The Turkish business community on Friday launched a major drive to popularise their construction and building products with a view to penetrating the East African market. Turkish Ambassador to Kenya Deniz Eke said Turkey manufacturers were ready to form partnerships with Kenyan traders to promote their products. Ambassador Eke said the deal would involve exploring ways to make the products locally. She said that this would create a ready platform for skills' transfer, enabling Kenyans to learn Turkish engineering in the building, construction and infrastructure sector. Ambassador Eke who spoke at the KICC ballroom during the launch of the four-day Turkish Fair, said their presence in Kenya hardly three weeks after a failed military coup was evidence that the Turkish economy had started picking up where all activities were back to normal. "Turkey is very safe and I urge Kenyans to travel to Turkey like they did before for tourism and for business. We are here to cement existing ties as pledged by our two governments," said the Ambassador. Industrialisation Director Erastus Kimuri said the Kenyan government was keen to enhance the business partnerships, adding that Kenya was ready to facilitate trade between the two countries. Mr Kimuri said Kenya's position as the connection point to the East African community created a suitable avenue for Turkish traders to break even via partnership with Kenyan traders. The event was organized by Turkel Fair Organisation which brought in 40 exhibitors in interior design, electrical cables, tiles, plumbing products, generators,...

EAST Africa enjoys strong economic growth for over a decade now but the rosy picture of the economy is soiled by deepening inequality which begs a question on who in particular benefit from the growth. This is one of the key observation of the State of East Africa Report 2016 that was launched in Dar es Salaam last Friday by Society of International Development and TradeMark Africa. The region has recorded robust growth of the economy with an average of more than six per cent annual growth-rate for over a decade with Ethiopia, Kenya, Tanzania and Uganda all forecast show rapid economic growth over the next decade on the back of tourism, agriculture, services and manufacturing industries and improving their transport links and energy supply. With Tanzania, Rwanda and Kenya economies expected to expand at least six per cent this year, according to the International Monetary Fund (IMF), East Africa is considered as a bright spot of the sub-Saharan Africa whose growth is expected to slow again in 2016 to 2.5 per cent, down from 3.0 per cent in 2015 due to low commodity prices, tightening global financial conditions and drought in parts of the region. However, according to the State of East Africa Report 2016, the growth has been accompanied by growth in inequality in virtually all countries. The report observes that despite the impressive growth, the economic boom has not generated the jobs or prosperity for all as it was expected. The levels of poverty, hunger and malnutrition...

August 9, 2016 The East African Community member countries’ total debt is unsustainable and could lead to a crisis, a new economic report warns. The report by the Society for International Development (Sid) titled “The State of East Africa 2016: Consolidating Misery? The Political Economy of Inequalities”, notes that there is growing concern among economists that alarming debt Source: Nile Times

Photo: The Observer A Few Of East African leaders, Uganda President Museveni (L) and Rwanda President Paul Kagame (file Picture). Dar es Salaam — East African countries will have to rethink and renegotiate social contracts and independence for Voters to profit from regional financial increase, a report on the state of East Africa 2016 launched the day past says. The document suggests that the Area has massive attainable that must be exploited, however Exchange limitations, poor infrastructure, insecurity, unfair judicial programs, low wages and susceptible rules are nonetheless an important stumblimg block. The East African Neighborhood (EAC) member states have, Subsequently, been entreated to surely reform the institutions through system of rules, insurance policies and rules that would make them more equitable, predictable and inclusive. The Sixth file with the aid of the Society for World Development (SID) in collaboration with Change Mark East Africa has Also steered the international locations to reform constructions within the corridors of energy, and in their economies. On The launch of the record, SID deputy managing director Arthur Muliro advised newshounds that institutional arrangements at national levels are skewed in favour of the rich and strong individuals, suggesting that consolidating inequalities within member states will negatively influence the longer term technology. “There’s A strong possibility that future EAC generations will reside a worse life as in comparison with the current generation,” he mentioned. A “catastrophic convergence” of politics, economic system and Environment usually are not pleasant to the Area, he stated. EAC member states...