The Permanent Secretary in the Ministry of Foreign Affairs, Dr Aziz Mlima said his country would not sign the EAC-EU EPA citing ‘turmoil’ in the EU occasioned by the impending exit of the United Kingdom. “Our experts have analysed the pact and established that it will not be to our local industry’s benefit. Signing this pact at the moment would expose young EAC countries to harsh economic conditions in post-Brexit Europe,” Dr Mlima said. The decision to snub signing of the trade deal as expected was not interpreted well by some member states with unnamed Kenyan government official quoted by Standard Digital saying Tanzania has been proving difficult and slow in firming up the new deal. The reaction by the Kenyan official may be understood as the decision by Dar to opt out of EPA deal signing between East African Community (EAC) and the EU leaves Kenya’s exports exposed to heavy taxes. Kenya exports tea, coffee and flowers to the 28-member market it is feared that Tanzania’s position may wreck the whole deal which may also spell doom to more than 600,000 workers mainly in the flower farms and fresh foods producers in Kenya. However, it is important also to put the EPA deal and the Tanzania’s situation into proper perspective. The Economic Partnership Agreements (EPAs) are intended to enhance regional integration and economic development in the African, Caribbean and Pacific (ACP) countries. They are based on the principle of asymmetrical market opening, meaning that they provide a better access...

African leaders have adopted plans to trial a new passport that is expected to ease trade and movement of people across the continent. This follows the launch of an African Union passport by the African Union (AU) that is set to replace the need for Africans to acquire visas to travel within the continent. According to Foreign Affairs Cabinet Secretary Amb Amina, business leaders have found it cumbersome to promote intra African trade due to the numerous barriers that limit cordial engagement. “The people who really need it are the business people so that they are able to move around the continent without that visa requirement so that they can invest,” Amb. Amina said. Intra-African trade stands at a paltry 12 percent, with African nations choosing instead to business with Europe, Asia or the Americas. Less than 15 countries also have reciprocal visa regulations that don’t require citizens to acquire visas when travelling. The AU expects to eliminate the need for African citizens to have visas to travel by 2018. Amb Amina said during the trial period, the African passport will only be available to presidents and senior government officials over a two year period. “We want to experiment with it ourselves so that any challenges are addressed before we roll it out to the rest of the population of the continent,” she said. The African Union passport is in line with plans by the AU to create a continental free trade area to promote intra-African trade. Regional trade has...

NAIROBI, Kenya, Jul 19 – Kenya and Iran will look to build their trade portfolio in agro processing, textiles, leather, management and technical services and materials, oil, gas, mining and constructive materials. Speaking during a Kenyan-Iranian bilateral trade meeting in Nairobi, the Cabinet Secretary, Ministry of Industry, Trade and Cooperatives, Adan Mohamed confirmed the Iranian delegation led by the Iranian Minister of Trade, Mining and Trade, Mohammad Reza Nezmatzadeh is in the country seeking attractive investment opportunities to invest in. “We are excited at these potential opportunities to amplify our trade relationship as we seek to leverage our competitive advantages in diverse industries for our mutual benefit”, said Mohamed. “We have had long and productive trade connections in the past and these discussions today will further that bond as we expand our portfolio of commodities and to develop our industrial capacity” Mohamed said the meeting is a follow-up of a memorandum signed between the two countries during the WTO and the successful visit by the Iranian Minister last year. And added: “Being part of EAC and COMESA trading blocs has given us an improved the status with our counterparts and has provided Kenya with a favourable reputation in the global economy. We now want to leverage this global perception to further the country’s economic capacity for production and expand our trade commodity variety to access different markets,” said Mohamed. According to Mr. Nezmatzadeh, Iran is targeting better relations with Africa and Kenya competitive positioning in Africa is crucial in this...

The Kenya Ports Authority has recorded an impressive performance since the signing of the Mombasa Port Community Charter in July 2014, Transport Cabinet Secretary James Macharia has said. He said in the last two years the port has not suffered any congestion, and that the ship turn-around time has improved from the average 120 hours in October 2014 to 83 hours in December 2015 against the 72-hour target. “The berth waiting time has witnessed an enormous improvement from a high of an average 85 hours in March 2015 to a low of 15 hours in December 2015,” Macharia said. He said the average KRA system down time has also reduced to an average of 10 minutes from 26 minutes before the charter. Source: The Star

Tanzania has brushed off calls to scrap Value Added Tax (VAT) on transit goods, saying its port service charges still rank lower than what traders face in Kenya. Tanzania Revenue Authority (TRA) says charges at the Port of Dar es Salaam still fall below what its rival, Mombasa Port, charges on transit goods even after the taxes are absorbed by traders. The agency attracted protest from traders when it imposed an 18 per cent tax on key services, which were previously zero-rated at Dar port. The affected services include loading and unloading of a ship (stevedoring), securing cargo, inspection, preparation of customs documentation, container handling and storage of goods. “TRA therefore confirms that VAT on ancillary services as defined by the law is not a factor that renders Dar es Salaam port non-competitive,” TRA Commissioner General Alfayo Kidata said in a statement circulated yesterday. “The Act charges VAT at the rate of zero, supply of services involving international transport of goods.., this does not apply to ancillary services rendered on transit goods.” The TRA says individuals subcontracted to offer transport services remain exempted from paying the VAT as long as there is proof of payment by the original consignee. That means a transporter on transit must provide documents that include road consignment note of the respective goods, copies of customs documents, truck movement sheet, exit note from country of destination and a copy of invoice to TRA. Tanzania Truck Owners Association, Tanzania Association of Freight Forwarders and Tanzania Shipping Agents...

Ugandan exporters to enjoy savings from the move Uganda Revenue Authority (URA) is now the institution tasked with issuance of Certificate of Origin in the country. The revenue authority will commence issuance at Kampala and Entebbe and roll out the service in other regional offices in the next six months. The Uganda Export Promotion Board (UEPB) previously issued the certificate. A Certificate of Origin is a shipping document indicating that shipped export goods are wholly obtained, produced, manufactured or processed in a particular country to reassure consumers of the origins of commodity purchased. The URA Commissioner General, Doris Akol made the announcement during a meeting held early this month with Electronic Single Window project implementation team and over 180 exporters. The meeting deliberated the implication of the Finance Act 2016 whose implementation follows the directive by the Minister of Finance at the 2017/17 budget speech. Issuance of CoO by URA will lead to immediate reduction of key export costs like payment of CoO and registration fees with the reduced costs totalling to over US$50,000. Forecasts indicate that the change and a fully implemented electronic Single Window will enable businesses to save over US$500,000 annually.Development of a Uganda Electronic Single Window (UeSW) has made the change possible. TMAthrough funding from DANIDA is supporting UeSW development with URA as the lead implementing agency. Other agencies in the process include: the Uganda National Bureaux of Standards, National Drugs Authority, Ministry of Agriculture Animal Industry and Fisheries, Ministry of Energy, Ministryof Foreign Affairs and the Coffee Development Authority. DANIDA...

NAIROBI: Industrialisation Cabinet Secretary Adan Mohamed is calling on key stakeholders to expand the commodities market to diversify Kenya’s export portfolio. According to Mohamed, this will help increase the country’s production and help boost its global industrial competitiveness. Speaking at the 7th Global Commodities Forum held in Nairobi, Mohamed said that the Government is creating an inclusive business environment for trade expansion by implementing new laws. “Kenya, like a majority of developing countries, relies heavily on income generated from commodity exports. It is prudent to expand this market beyond agricultural commodity production and invest more on alternative industries like textile and apparel, leather, iron and ICT, as we take advantage of price booms in the global market and access to multiple trade opportunities,” he said. This focus shift, he added, will result in immediate short term economic gains and long-term market stability for Kenya. Some of the new laws that have been introduced include the 2015 Company and Insolvency Act and the extension of The African Growth and Opportunity Act (Agoa) treaty to increase trade capacity. Also the Government has installed Special Economic Zones to encourage foreign direct investment and create new job opportunities. The CS said Kenya is part of the global economy and must evaluate the global commodities landscape so as to withstand price fluctuations and search for better solutions. “Kenya and other developing countries will gain first-hand experience on proven policies and procedures to leverage their resource-rich economies to generate wealth and create jobs for Kenyans,” added...

Brussels (AFP) - US Secretary of State John Kerry said Monday that a massive EU-US trade deal could soften any damage caused by Britain's exit from the European Union following last month's referendum. The treaty, bogged down in negotiations, has "a very significant ability to act as a counter" to the negative effects of Britain's eventual divorce from the EU, Kerry told a press conference in Brussels. "It’s our job to make sure that we adequately inform people about the facts of how TTIP will actually work for the people of Europe," Kerry said. "It will protect jobs, it will protect their regulatory rights, protect their abilities with respect to labour and the environment," he said. Negotiators from the US and the EU are currently in trade talks to finalise the proposed Transatlantic Trade and Investment Partnership (TTIP) that would create the world's largest free trade area. But the shock setback of Brexit and rising opposition to the deal in France and Germany have raised serious doubts that it will be achieved by the end of the year as hoped. Kerry said that he would embark on a European tour in "the coming month ... to lay out the facts for people to understand exactly the positive side" of a potential deal. Kerry's comments came just days after the top US trade official said that Britain's vote to break with the EU opens new questions over the deal. Britain "is a very significant part of what makes TTIP attractive," said...

Brig. Gen. Ferdinand Safari, the head of Rwandan delegation at the final planning conference for the 10th East Africa Community (EAC) Military Games and Cultural Event, has said that Rwanda is ready to host the regional event in Kigali from August 5 to 18. The final preparations for this year’s event, that will be held under the theme “One people One Destiny”, are in high gear, according to the organisers. Speaking at the final planning conference, held in Kigali from July 11 to 15, Gen. Safari assured other EAC partner states delegates that Rwandan delegation will remain behind making final touches to put together a memorable event. “On behalf of Rwanda’s Chief of Defence Staff, I would like to extend my thanks to you and to your respective countries and assure you that, as you leave this country, we are going to remain behind making final touches and that the event will be a landmark ,” said Gen. Safari. Gen. Safari’s statement was reiterated by the chairperson of the 10th EAC Military Games and Cultural Event Planning Conferences, Brig. Gen. MA Kemwaga. “It is my hope that we will have a memorable event in August”, Gen Kemwaga said, before stressing the importance of the event. “This event brings us together as a Community than any other.” More than 500 personnel from East African Community partner states’ Defence Forces are expected to participate in the 10thedition of the EAC Military Games and Cultural Event. Teams will compete in different sports disciplines...

In the days after Brexit, markets plunged, the Pound went into free fall, a Prime Minister resigned and the future not only of the UK, but also the European Union seemed uncertain. Beyond the reasons that divided people over this vote and its economic and political ramifications; is a growing frustration with inter-governmental integration models. Why then - with the woes of the European Union so visible - is Africa forging ahead with an ambitious plan to accelerate the free movement of Africans and integrate national economies beyond border communities and physical proximity? There are three reasons for these interesting points of divergence. The first is that the contexts between Europe and Africa are dramatically different. The European Union (EU) is the most integrated region globally. For at least 50 years, Europeans have enjoyed the benefits of integration. A large population of the EU has never known what it is to demand for visas while traveling in the region, or seek work permits to work elsewhere in Europe than their home-countries. On the contrary, Africans have a completely parallel experience to this. Africa is the most fragmented continent worldwide, and its people suffer the cost of non-integration on a daily basis. This fragmentation was imposed on Africa, and what is happening now is that we are working to reverse this process, without violating the principle of sovereignty. The second reason is the different centralised and decentralised models of governance between the European Union and African Union. The European Commission has...