The decision by Dar to bolt out of the comprehensive Economic Partnership Agreement (EPA) between East African Community (EAC) and the EU leaves Kenya’s exports exposed to heavy taxes. These taxes have been estimated to range from eight to 12 per cent of the value. Kenya exports tea, coffee and flowers to the 28-member market which has lately been pushed into a fire-fighting mode after citizens of one of its members, Britain, voted to leave the union. The decision which has come as a shocker to other members of the EAC might also spell doom to more than 600,000 workers mainly in the flower farms and fresh foods producers. Friday, Tanzania’s Permanent Secretary for 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. Apart from Kenya, the other four EAC member States - Tanzania, Rwanda, Burundi and Uganda- which are still classified as least developed countries (LDCs) will not be affected by this development as their low economic status allows them to access the EU market tax-free. “Tanzania has been proving difficult and slow in firming up the new deal, which if not actualised by end of September, it will have serious implications,” said a senior government official, who asked not to be named. He added, “Tanzania’s decision is not surprising, going by her behaviour lately.” President Uhuru Kenyatta informed the African, Caribbean and Pacific (ACP) ambassadors in Brussels, Belgium recently...

East Africa has plans to take back its textile industry by increasing import tariff on garments from the West. This is expected to improve production in Rwanda and other countries in that region. Rwanda has increased import duties on secondhand clothes and shoes, coming mainly from Europe and North America, to help promote local manufacturers. The new measure starts this July, particularly on the 1st. A manager in the Rwandan Receipts Agency, Drocelle Mukashyaka, confirmed the new tariffs. In the new rates, import duty for a kilogram or 2.2 pounds of shoes and clothing was previously $0.2, but it has been raised to $2.5. while for clothes and shoes its now $5.0 . Secondhand clothing imported wholesale from the West is highly popular in Rwanda like other African nations where these garments are sold at low prices. But this thriving market has “completely killed the textile industry” in developing countries, Trade Minister Francois Kanimba said back in mid-June. Last February, the five heads of state in the East African Community — Burundi, Kenya, Rwanda, Tanzania and Uganda — agreed to bring about a total ban on imports of secondhand clothes by 2019. Rwandan Economy Minister Claver Gatete says ending the trade is not just about textile industry, but the economy of East Africa. “And we are not even the right way to discuss the second hand clothes, it’s not an industry producing, it’s not just even acceptable according to our dignity because we would prefer the new clothes coming from...

Tanzania has said it will not sign an economic partnership agreement (EPA) between East Africa Community (EAC) and European Union (EU) following Brexit. The announcement caused anguish and shock at the EAC headquarters in Arusha. A number of officials at the Secretariat were apparently at a loss on Friday on learning of the country's U-turn as announced in Dar es Salaam by Foreign Affairs permanent secretary Aziz Mlima. "Has the Tanzania government withdrawn?" inquired a surprised official who said if it was true, the move would be a setback to the negotiations which have been going on for years between EAC and EU. On Friday, Dr Mlima told reporters in Dar es Salaam that Tanzania had decided to halt the signing because of “turmoil” that the EU is experiencing following Britain’s exit. The agreement between the EU and EAC was scheduled to be signed on July 18. Dr Mlima said signing the pact would risk exposing young EAC countries to harsh economic conditions given the prevailing conditions in Europe. The official said Tanzania’s Parliament would first peruse and advise the government before committing to the deal. “Our experts have established that the way it has been crafted, the EPA will not benefit local industries in East Africa. Instead it will lead to their destruction as developed countries are likely to dominate the market,” Dr Mlima said. Dr Mlima's remarks echoed strong criticism of the pact by former president Mkapa who warned EAC not to rush to sign the pact because...

Burundi has lauded efforts by Kenya Ports Authority to enhance clearance and logistics of goods at the Port of Mombasa. Burundi's transport minister Jean Bosco Ntunzwenimana said the ongoing construction of the alternative route from Mombasa, Voi, Taveta, Moshi, Arusha, Singida to Bujumbura will significantly reduce the distance from the Port of Mombasa to the Port of Bujumbura. The new route covers a total of 1,545 kilometres compared to the other 1903km route from Mombasa via Nairobi-Malaba-Kampala-Katuna-Kigali to Bunjumbura. “We are working towards promoting good working relations between the Port of Mombasa and the Port of Bujumbura so that we jointly bolster trade in the region," Ntunzwenimana said. Last year, a total of 75,811 tonnes of Burundi imports and exports passed through the Mombasa. KPA acting managing director Catherine Wairi said the container throughput will reach 1.6 million TEU’s in 2018 when the second container terminal starts operations. "The authority has also acquired a 50-acre land at Taveta border with Tanzania where we intend to construct an inland container depot. The improved road infrastructure coupled with an inland container depot will boost onward transit, outright export and transshipment of cargo," she said. Source: The Star

The Premier was speaking during the launching of the Tanzania- India Business Forum, which aimed at promoting partnerships to accelerate investment and trade between the two countries. He said Tanzania invites investors in plantations and food processing industries. The forum brought together 50 big investors from India and Tanzanian businessmen. The Indian investors arrived in the country on Saturday with Prime Minister Modi. “We have opened doors for both local and international investors. Indian investors are warmly invited to invest in various areas in the country,” he said. He mentioned some potential areas for investment as industries, infrastructure, tourism, mining and agriculture. According to Mr Majaliwa, promotion of industries will boost agriculture production in the country since Tanzanian farmers will be able to enjoy reliable market for agriculture products. “It is obvious that the revival and growth of industries will promote agriculture and boost economic growth for both the government and farmers,” said Mr Majaliwa. He assured his audience that the Tanzania Investment Centre (TIC) was so far performing well in its role as a one-stop-centre for investors. “Officials from the Ministry for Industry and Trade, Business Registration and Licensing Agency (BRELA) and Tanzania Revenue Authority (TRA) are all available at TIC’s head offices. They are stationed there to offer quick services to both local and international investors”, he stated. The Minister for Industry, Trade and Industries, Mr Charles Mwijage, said the government was doing everything in its power to learn from successful countries, mentioning India and Vietnam as among...

India and Tanzania on Sunday pledged to broaden cooperation to include areas of potential such as manufacturing, development of small scale industries for rural developmental needs and in food and agricultural sectors. "The two leaders agreed that it was imperative to broaden cooperation to include potential areas such as gas exploration, manufacturing, development of small scale industries for rural developmental needs, power production and distribution, infrastructure development, agriculture especially in crops like pulses," said a joint statement issued at the end of high-level talks led by Prime Minister Narendra Modi and Tanzanian President John Magufuli. Both leaders sought to ensure "greater cooperation" in the area of scientific cooperation between the two countries besides in areas like power production and distribution, gas exploration and usage, mining and information technology. Recognizing that development partnership is an important facet of bilateral relations, Tanzania side expressed appreciation for India's continued commitment towards supporting its development efforts through providing technical and capacity building training and extension of developmental projects using grants and concessional credits. President Magufuli appreciated India's consistent support in the provision of training slots offered annually to Tanzanian officials and specialists in multiple fields including information technology, entrepreneurship, management, SMEs, rural development, agriculture, defence, and parliamentary studies. Prime Minister Modi affirmed India's continued readiness to extend further support towards development objectives of the government of Tanzania in line with its development vision, the joint statement said. He also announced the donation of a radiation therapy machine 'Bhabhatron' to Bugando Medical Centre, Mwanza. The...

Kenya Ports Authority (KPA) has acquired a 50-acre land near Kenya’s border with Tanzania for the construction of an inland container depot to boost trade with Burundi. The improved road infrastructure coupled with an inland container depot at Taveta is set to boost onward transit, outright export and trans-shipment of cargo to Burundi through Mombasa. Last year, 75,811 tonnes of Burundi imports and exports passed through the Port of Mombasa pre-dominantly clinker, motor vehicles and tea for exports. Speaking during a recent tour of the Port of Mombasa, Burundi Transport Minister Jean Bosco Ntunzwenimana said the two countries are enhancing working relations between the Port of Mombasa and that of Bujumbura to bolster trade in the region. “The road between our capital and DRC is undergoing a facelift which will enable us facilitate and increase trade along the northern corridor,” he said. The minister said the ongoing construction of the alternative route to Bujumbura, Mombasa-Voi-Taveta-Moshi-Arusha-Singida-Bujumbura covering 1,545 kilometres will reduce the distance from Mombasa to Bujumbura via the Northern corridor by 358 kilometres. KPA acting managing director Catherine Mturi-Wairi said improved infrastructure is critical for breaking some of the existing barriers to trade. “We believe that our drive towards greater efficiencies and enhancing our competitiveness has a positive impact on supply chain and regional economies. Our container dwell time is now at (4.3 days) compared to (4.7 days) a year ago,” she said, adding that increased capacity at the Port of Mombasa is critical for transit of imports and exports...

The French Ambassador to Kenya, Mr Remi Marechaux, last month warned that his country would continue to issue travel advisories when required and would not rely on local security assurances. France, he said, would carry out its own assessment of the security situation and act accordingly.   This is the new reality that tourism industry players and the Government will have to grapple with, as they come to terms with the dwindling number of visitors. Tourism industry players have to accept that  global terrorism has changed the rules of the game. It is  no longer tenable to predicate the development of a region on an industry whose success is determined by events in countries such as Somalia. As much as Tourism Cabinet Secretary Najib Balala and his team are working overnight to bring back the industry to its former glory, the country must come to grips with the fact that it would take very little to send all their hard-won gains up in smoke. Kenya’s tourism industry appears to suffer greater damage than other countries  every time terrorists strike. It is as though tourists from the West seize on such attacks to cancel their bookings. In this light, the introduction of new tourist packages, though welcome, may not come soon enough. The new products would may be enough to attract visitors in the wake of continued travel advisories that have almost become an industry staple. This means governors of counties in the former Coast Province would be well advised to...

PRESIDENTS John Pombe Magufuli (Tanzania) and Paul Kagame (Rwanda) have pledged to continue taking swift measures that are meant to eradicate non-tariff barriers in order to spur trade between the two countries and the East African region at large. The Heads of State have concurred that removing barriers to trade could increase more benefits to the people of the two countries, who already enjoy historic brotherhood relationship. Speaking during the Official visit of President Kagame in Dar es Salaam on 1st July, 2016, President Magufuli outlined measures taken by Tanzania to improve the Dar es Salaam Port and road network along the central corridor. President Magufuli said in the past there were some challenges of bureaucracy at the Dar es Salaam Port and huddles along the corridor but now a lot has changed thanks to government interventions. “We are making sure that our port become more efficient. I would like to assure businessmen that the Dar Port is now peaceful, just like its name (Dar es Salaam means the port of peace). Other measures he said were reduction of weighbridges for transit trucks and buses from eight to just three from Dar es Salaam to the borders with Rwanda, Burundi and DR Congo. According to President Magufuli, the two Presidents bi-laterally agreed that Tanzania should set aside land for the construction of an Inland Container Terminal for all transit goods destined to Rwanda to reduce bureaucracy. Tanzania will also station in Rwanda liaison officers from Tanzania Port Authority (TPA) to...

United Nations has today urged corporates to use their business chain to push for the implementation of Sustainable Development Goals to accelerate their attainment. Speaking in Nairobi the United Nations Conference on Trade and Development (UNCTAD) Secretary General Dr Mukhisa Kituyi noted that The SDGs present an opportunity for business-led solutions and technologies to be developed and implemented to address the world’s biggest sustainable development challenges. “It is not possible to have a strong, functioning business in a world of increasing inequality, poverty and climate change. Business has the unique opportunity to embrace the SDG agenda and recognize it as a driver of business strategies, innovation and investment decisions,” he said. Dr. Kituyi was speaking during an SDG forum organized by Safaricom where the company launched its own SDG integration campaign. According to the Global Climate Change Report of 2015, SDG’s offer the greatest economic opportunity of a lifetime with an estimated investment of $2-3 trillion a year. It further states that businesses that will, for instance, actively engage in the goal on climate action will enjoy at least 18 percent higher returns on investment. Safaricom CEO Bob Collymore said the company had commenced integration of the SDG’s into its business strategy adding that this would provide a platform for the company to pursue opportunity and innovation and new business opportunities. “We don’t live or operate in isolation. If we contribute to the depletion of our planet, our businesses will suffer the consequences in equal measure,” he said adding that...