Businesses in Tanzania are accusing the government of being anti-business after its recent announcement that it will introduce value added tax on ancillary services. During an East Africa Business Council meeting this month, Gilead Teri, the director of policy at the Tanzania Private Sector Foundation, said the introduction of VAT on ancillary services provided for goods in transit had resulted in a drastic decrease in the amount of transit cargo shipped via the Dar es Salaam port; competing ports don’t charge VAT on ancillary services. “Introduction of 18 per cent VAT on tourism services such as game driving, water safaris, animal or bird watching, park fees and ground transport services will be unfavourable for business,” said Mr Teri. The measures to broaden the tax base have started to bite, with some hotels in Dare es Salaam turning their facilities into hostels. Kassim Omar, the chairman of the EABC Uganda Chapter and national chairman of the Uganda Clearing Industry and Forwarding Association, told the meeting that businesspeople require 10 documents to import or export to Tanzania, which attract costs estimated to be double the cost incurred in other sub-Saharan countries. “Having discriminatory taxes between domestic and imported products from EAC partner states is against Article 15 on National Treatment of EAC Customs Union Protocol, which prohibits EAC partner states from enacting legislation or applying administrative measures that directly or indirectly discriminate against the same or like products of other partner states,” Mr Omar said. He further claimed that unlike other EAC...

The political crisis in South Sudan is expected to impact on the East African economies as the crisis disrupts businesses and trade, undermining the region’s prospects for growth. The crisis is happening at a time when the region has yet to find a concrete solution to the Burundian political crisis, which not only raises the bloc’s risk profile but also dents investor confidence. While South Sudan’s admission into the EAC earlier this year raised optimism about the potential economic gains from its integration — expanding the EAC Common Market to 162 million people — the recent violence has analysts warning that it could wipe out recent economic gains. While definite figures are not readily available, Uganda and Kenya’s annual exports to South Sudan are valued at some $200 million and $180 million respectively. However, political instability and the adverse impact of external shocks over the past two and a half years are expected to have a significant impact on South Sudan’s economy and the region. Regional businesses, mainly from Kenya and Uganda, that have opened outlets in South Sudan are already feeling the pinch due to political instability, forcing them to rethink their business strategy. “Due to the recent disruptions in South Sudan, we scaled down our operations and we have been reviewing this stance as the situation improves,” said KCB Group chief operating officer Samuel Makome. KCB was among the first regional banks to enter the South Sudan market. “South Sudan is a key market for us and we...

Rwanda has banned the sale of minerals to middlemen in a bid to protect local factories that process them for export. The Rwanda Geology and Mines Authority said that the ban, backed by a ministerial order, will help to streamline the domestic mineral trade by removing price distortions and curbing hoarding. The move is part of measures the government is putting in place to position the sector as a key foreign exchange earner from the sale of value added products. It will also increase volumes of raw material available to processors and also create jobs. Rwanda exports the 3Ts (tin mined as cassiterite, tantalum as coltan and tungsten mined as wolframite) in raw form, because the sector has failed to attract investors for value addition. The government believes that increasing the output of minerals will help offset the impact of falling commodity prices. Data from the National Bank of Rwanda shows that export earnings from minerals slowed by 42.1 per cent last year from $203 million in 2014, while the volume fell by 30.5 per cent to 7.28 tonnes. This acted as a drag on the Rwandan economy, with the International Monetary Fund projecting that GDP growth will slow to 6 per cent this year from almost 7 per cent in 2015. It is, however, expected that mineral prices will gain 5 per cent in value in 2017. Dr Michael Biryabarema, the director of Rwanda Geology and Mines Authority said that only licensed exporters and processors will buy the minerals....

At the French Bastille Day celebrations held at the country’s embassy in Uganda on July 13, guests were kept waiting for a chief guest whom the hosts were reluctant to name. Guests were treated to specially selected fine French wines, but the officials constantly kept checking the time. After what seemed like an eternity, Uganda’s President Yoweri Museveni finally arrived and the programme proceeded. In his speech, President Museveni went into depth about French history and the significance of the storming of the Bastille, a turning point in the search for equality, dignity and respect. Then he moved on to talk about trade and markets between the developed West and Africa, calling for an equal partnership and not the superior-minor partnership that had catalysed the French revolution in 1789. As if speaking off script, President Museveni then talked about the Economic Partnership Agreement (EPA) between the European Union and the East African Community. The deal was expected to be signed on July 18. He asked for patience, so that the EAC Heads of State can discuss and agree on a way forward on the trade deal. “We shall not be signing this agreement until we have discussed it. So advise the European Union Commission’s ambassador not to get excited,” President Museveni told the largely European audience. Not fully briefed President Museveni said the EAC Heads of State had not been fully briefed on the agreement until only recently, saying the discussions that have been running since 2002 were mainly handled...

The Dutch government and Trade Mark East Africa (TMA) have committed to improve the financial fortunes of women in East Africa’s cross-border trade. Through the ‘Women in Trade’ programme, the Netherlands authorities aim to reach 25,000 women in Kenya, Uganda, Rwanda, South Sudan, Tanzania and Burundi by the end of this year. Trade Mark has signed a $500,000 (Sh50 million) agreement with the International Trade Centre (under the programme to support 800 women-owned SMEs to access international markets. While addressing trade exhibitors at a Nairobi hotel, Dutch Minister for Foreign Trade and Development Cooperation Lilianne Ploumen said there is need to support the women businesses to complement statistics that show they own over 40 per cent of business in East Africa. “Research has shown that empowering women to trade is good for the economy, society and women themselves,” she said while touring a trade exhibition on the sidelines of the United Nations Conference on Trade and Development in Nairobi. TMA director general David Stanton said supporting women in trade is part of the organisation’s vision to foster inclusive and sustainable economic development. “The partners will work to improve export opportunities for women enterprises in East Africa, and strengthening the capacity of institutions and associations to effectively support women entrepreneurs,” he said. Stanton said TMA was committed to increasing its support to women, with a vision of reaching at least one million more women in the second phase of the programme. However, Ploumen regretted that, despite the prevalence of women-owned SMEs...

The standard  will go a long  way  in addressing the information and Knowledge gap on sesame production and if fully Implemented  will  enable  trade  in high  quality sesame both on the local and international market. Cyprian Batala the Commissioner for International Trade in the Ministry of Trade Industries and Cooperatives said having such a standard will enable many Ugandan agro -dealers access the international market since Sesame is on high demand globally. “With the standard in place many Ugandan traders will penetrate the international market. As a ministry we have been receiving complaints  about the quality of our product and now we are glad that the standard is in place.” The commissioner said during the  launch of the standard in Kampala. The commissioner advised traders to exploit the available opportunities which the government has created to expand their agro –related businesses. Batala noted that government has developed trade policies which can facilitate trade both locally and internationally. Some of the policies which  the government  has developed include the One Village one product,  Buy Uganda  Build Uganda, National  Standadard  and Quality policy among other policies in Uganda. However for such policies have conomic value to the  country , traders are advised to embrace value addition instead of exporting unprocessed produce. Benon  Manyindo the Executive Director UNBS  said the bureau is committed to support business Communities in the country by developing standards for the various products  made in Uganda. He said  setting up the standard  will not only support enterprise development but...

A ship maker has unveiled Kenya’s first locally built barge, a flat bottomed sea vessel. The vessel will be deployed for transportation of heavy machinery and marine cargo along the East African coast. Southern Engineering Company (Seco) said the barge has the capacity of 2,500 dead weight tonnage equivalent to 150 truckloads. An official from the firm said the vessel will be deployed for use in construction of Lamu Port and other offshore projects along the West of Indian Ocean and inland water bodies like Lake Turkana. Currently, marine transport firms are positioning themselves for major projects such as the Lamu Port which is underway. Seco’s Director in charge of Administration John Msafari said the vessel was built by 80 Kenyan skilled manpower and inspected by qualified inspectors from outside the country. He said the vessel built in a record six months using marine grade steel cost Sh180 million. Mr Msafari said the vessel can also benefit local seafarers who have on several occasions complained of lack of ships for training. “This vessel is the first to be designed and built in Kenya under internationally recognised classification standards. It meets the Indian Register of Shipping or IRCLASS,” said Seco Technical Manager Jayesh Mehta. Mr Mehta said the vessel has the capacity to carry various aggregated project cargo, heavy vehicles, trucks and cranes and can access areas that are inaccessible to normal ships. Msafari said construction of the vessel marks a major milestone in Kenya and Mombasa’s quest to attain its...

NAIROBI (HAN) July 23.2016. Public Diplomacy & Regional Security News. Tanzania’s concern early this month over the impact of Brexit on the East African Community has now turned into an opportunity for leaders and trade negotiation experts to demand a review of the Economic Partnership Agreement between the regional bloc and the European Union that was due for signing next month. The experts want the aspect of liberalisation in the EAC-EU EPA renegotiated, with open-ended time because the agreement currently contains a number of provisions that are prejudicial and bound to constrain EAC’s development. They also want a review of the nomenclature for classification of countries such as Kenya — the only developing country in the EAC — whose exports to EU, unlike those from least developed countries, will face a stringent entry regime if the EPA is not signed. The EPA is a trade and development deal that has been under negotiation between the EU and countries in Africa, Caribbean and Pacific since 2002 — it was to succeed the 2000 Cotonou Agreement. The 2007 Framework Economic Partnership Agreement would pave the way for a free trade area between the EU and these regions. Nathan Irumba, chief executive director of regional trade negotiations institute Seatini Uganda, said the EAC might be hounded into signing because of the unique situation Kenya finds itself in, yet there are options around it. “If the negotiations are between blocs, why doesn’t the EU treat EAC as an lesser developed country (LDC)?” asks Mr...

The launch of the Pan-African passport was one of the most memorable milestones at the just-ended 27th ordinary session of the African Union (AU) in Kigali, Rwanda. The African passport will be the third for citizens in the East African Community after the national and the East African passport. Dr Nkosazana Dlamini-Zuma, the chairperson of the AU Commission, handed two representational African passports to President Paul Kagame, and to the head of the AU, President Idriss Deby of Chad. "At the summit in January 2016 this year, you decided that we must launch the African passport. We are making this start with our heads of state and government, foreign ministers, the leadership of the regional economic communities (RECs) and the leadership of the representatives of the AU executive councils and organs," she said in her opening remarks. Dlamini-Zuma also urged heads of state to create conducive conditions for member states to issue the passport to their citizens, "within their national policies, as and when they are ready." The passport seeks to create advantageous visa-regimes across the continent and later on create a pathway for a visa-free Africa, under the AU agenda of the "Africa We Want." She explained that after sharing aspirations of African citizens, the commission adopted Agenda 2063, which is a 50-year framework towards a continent that is integrated, peaceful and prosperous, driven by its own citizens and playing a dynamic role in the world. "The Africa we have today is full of hope, possibility and optimism, but...

A few days ago, Tanzania’s Trade minister Charles Mwijage announced that his country would not be signing the Economic Partnership Agreement (EPA) with the European Union. He argued that the EPA would expose his country to harsh economic conditions in post-Brexit Europe. This followed an earlier announcement by Dr Aziz Mlima, Tanzania’s Permanent Secretary to the East African Community, that his country would not sign the EPA. This came as a shocker to Kenya, especially when Uganda immediately followed suit in rejecting the EPA. As if reading from the same script, Uganda’s and Tanzania’s decision left many wondering if there is more to this. Would this also mean the end of the EAC? According to WTO rules, countries that form an economic bloc like the EAC cannot make individual agreements with another bloc such as the EU. This generally means that the decision by Tanzania and Uganda has put paid to Kenya’s efforts and those of Rwanda and Burundi to sign the EPA with the EU. This means that Kenya’s horticultural sector may be adversely exposed if it will not enjoy preferential (duty free and quota free) access to the EU, the world’s largest single market. OBJECTIONS TO THE EPA There are many people who have objected to the EPAs with Europe, in fact quite a number of NGOs have been active in trying to dissuade governments from signing them, citing the lopsided nature of the agreement. They also say that the EPAs may curtail the development options available to...