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NTBs removal reduce trading times, costs

TradeMark Africa has been supporting the elimination of Non-Tariff Barriers (NTBs) to trade in the East African Community (EAC). The barriers present a serious challenge to trade with an EAC wide cost estimate being approximately 490 million US dollars. Emerging results from the recently conducted independent evaluation of the NTB’s programme indicate a 14 per cent reduction in time taken to import goods from each East African country (from 36 days to 31 days) and a 20 per cent reduction in time taken to export goods from each EAC country (from 33 days to 26 days). Further results indicate inland transportation times from Dar es Salaam to Kigali have dropped considerably, now to 3.5 days. The results also show a reduction in the cost of transporting a standard (40 foot) container from Mombasa to Kigali, from 6,500 US dollars in 2011 to 4,800 US dollars, which is estimated to have generated a saving (at constant volumes) of approximately 7 million US dollars on the Mombasa-Kigali route alone. Burundi tops the list of the East African countries that has witnessed the highest import reduction time – at 28 per cent (from 30 days to 43 days). The time taken to export from Uganda has successfully reduced from nearly 35 days in 2010 to under 30 days in 2015. Other areas that have witnessed great progress include Tanzania which has witnessed a 99 per cent reduction in application time (5 days to only one hour) for getting an electronic certificate of origin....

Skilled Rwandans urged to exploit job opportunities presented by EAC bloc

Unemployment and underemployment among skilled Rwandans could reduce if young graduates took advantage of the opportunities offered by the East African Community (EAC) integration. Dr James Ndahiro, Rwanda’s East African Legislative Assembly member of Parliament, said there are many jobs that Rwandans can secure in the region under the common market that provides for free movement of labour, people and goods, among others. Ndahiro said other Rwandans could start up businesses to engage in cross-border trade, noting that this would also help create more jobs. The EALA member was speaking during a sensitisation drive about the benefits of the EAC integration at University of Rwanda’s College of Science and Technology in Kigali on Tuesday. The Rwandan EALA MPs are currently carrying out a countrywide sensitisation campaign about the opportunities presented by EAC integration under the theme, “The EAC integration agenda: Accessing the gains of integration”. The MPs explained the opportunities Rwanda can exploit in different sectors across the EAC bloc. Ndahiro urged the students to be aggressive and use their skills to compete for the numerous regional jobs that are advertised regularly in the media. “Rwanda joined the EAC with the aim of tapping into the region’s economic benefits, so you should not shy away from competing for these jobs in the region if you qualify,” he said. Patricia Hajabakiga, another EALA MP, urged the students to learn the languages that are commonly used in EAC countries, especially Swahili and English to increase their competitiveness in the regional job market....

East Africa: Northern Corridor Heads of State Summit to Convene in Kampala

The Northern Corridor Integration Project (NCIP) countries yesterday started meetings ahead of a planned summit in Kampala to review progress achieved in the implementation of earmarked projects. This is the 13th summit to convene leaders from Rwanda, Kenya and Uganda, who have since been joined by South Sudan. The summit which is due to convene on Saturday, has been preceded by a technical meeting of senior regional officials, heads of institutions and permanent secretaries from the participating countries who will prepare a report on the progress for regional ministers. Officials at the meeting represent all the four countries. Ministers representing partner states will hold a session on Friday to review the report prepared by their countries' technical teams after which they will present to the Heads of State. Among other key areas that the officials are discussing include; the follow up on the development of regional ICT infrastructure and projects like the Standard Gauge Railway (SGR) and oil refinery. They are also discussing peace and security within the bloc. Robert Ford, the Chief Coordinator of the Northern Corridor Technology Alliance (NCTA), said that negotiations for a Memorandum of Understanding between NCTA and NCIP had been concluded. "The MoU will be signed during this summit. It's going to be a benchmark that will guide the implementation of all technology projects in the four countries," he said. The alliance seeks to take the lead in earmarking information and telecommunication projects without foreign involvement. Ambassador Emmanuel Hatega, the Coordinator of NICP in Uganda...

East Africa: Tanga Port – Best Route for Ugandan Crude Oil Exports

All eyes are on Kampala as the Ugandan government announces the route for the envisaged pipeline to export its crude oil; with chances indicating that the conduit will pass through Tanzania's Tanga Port. Media reports from Kampala have indicated that powers that be have chosen the Tanzanian route due to a number of factors as flat terrain, with over 1,239 kilometres of flat or leveled and dry terrains, security and low cost compared to the Lamu Port through Kenya. Other factors that kept Dar es Salaam on the competitive edge includes the fact that the country has vast expertise in implementing such huge projects and compensating people for land to create required leeway for the pipeline will not be a problem either. What is more, contrary to arguments put forward by some ill-advised and so called environmental conservationists, the pipeline will not traverse any internationally protected area or national park save for just 33 kilometres through the Biharamulo game reserve. Total E&P of French has already secured the US $4 billion (roughly 8trl/-) required for the mega project and showed willingness to dish-out the funds should the pipeline pass through Tanzania. No wonder, based on these facts, Alon Mwesigwa, a journalist with the privately owned newspaper in Uganda, the Observer, had the courage to write last Monday that; "the oil pipeline route puzzle has been solved, with Uganda choosing to export her crude oil to the East African coast through Tanzania and not Kenya." The writer continues to cite a...

Tanzania: UK Parliament Appoints Mufuruki to Lead Special Team to Africa

Dar es Salaam — UK Parliament has appointed a Tanzanian businessman, Mr Ali Mufuruki, to be co-chair of its special team that is investigating efficiency of Britain's aid to Africa in expanding business, investment and international cooperation in the last five years. Mr Mufuruki is currently the chairman of the CEO Roundtable of Tanzania, a policy dialogue forum that brings together more than 100 CEOs of leading companies in Tanzania. This group engages regularly with the senior government leadership of Tanzania to find solutions for the country's economy. The other co-chair is Lord Stephen Green from the House of Lords. Others are Prof Myles Wickstead and Lord Paul Boateng from the UK and Ambassador Darlington Mwape from Zambia, according to a statement e-mailed by Mr Mufuruki yesterday. The committee started its task yesterday in London by listening to 17 stakeholders from different organisations, including the World Bank, DFID, UNCTAD/WTO, Trade Mark East Africa, ITC and others. "There were also representatives of private companies operating in Africa, international business research firms and lawyers in the international business," said Mr Mufuruki in the statement. Cote d'Ivoire was represented by its Minister for Trade Jean-Louis Billon. According to him, the committee will submit the report and recommendations to UK Prime Minister David Cameron on June 23, 2016. Source: All Africa

Regional trading times, costs reduced through elimination of barriers – Report

Regional trading times and costs have been reduced through elimination of Non-Tariff Barriers in the region, advancing trade and prosperity, a TradeMark Africa evaluation report has said. TradeMark Africa has been supporting the elimination of Non-Tariff Barriers (NTBs) to trade in the East African Community (EAC). NTB’s present a serious challenge to trade with an EAC wide cost estimate of NTBs (2010) being approximately US$490 million. Emerging results from the recently conducted independent evaluation of the NTB’s programme indicate a 14 per cent reduction in time taken to import goods from each East African country (from 36 days to 31 days) and a 20 per cent reduction in time taken to export goods from each EAC country (from 33 days to 26 days). Further results indicate a reduction in the cost of transporting a standard (40 foot) container from Mombasa to Kigali, from US$6,500 in 2011 to US$4,800, which is estimated to have generated a saving (at constant volumes) of approximately US$7 million on the Mombasa-Kigali route alone Similarly, Inland transportation times from Dar es Salaam to Kigali have dropped considerably, now to 3.5 days. Burundi tops the list of the East African countries that has witnessed the highest import reduction time – at 28 per cent (from 30 days to 43 days). The time taken to export from Uganda has successfully reduced from nearly 35 days in 2010 to under 30 days in 2015. Other areas that have witnessed great progress include Tanzania which has witnessed a 99 per...

Rebel leader Machar no return top Kampala summit agenda

KAMPALA, Uganda, South Sudan Rebel leader Riek Machar failed to return to the capital for a second straight day Tuesday, saying the government did not provide flight clearance for a plane carrying his top general is top on the Northern Corridor Integration Projects (NCIP) summit addenda. According to Mr. James Mugume, Permanent Secretary, Uganda Ministry of Foreign Affairs Machar no return Juba, South Sudan capital is a concern to the region. Rebel leader Riek Machar, recently appointed President Salve Kiir as his vice failed to return to the capital for a second straight day Tuesday, saying the government did not provide flight clearance for a plane carrying his top general. “Uganda has played a big role in South Sudan and this is an issue heads of states are going to discuss. We would have wished that Riek Machar returns to Juba and I hope our heads of states convince him after deliberations,” Uganda Ministry of Foreign Affairs permanent secretary Mr. James Mugume said yesterday. Rebel spokesman William Ezekiel told VOA no date has been set for when Machar will arrive in Juba to be sworn in as vice president, per terms of a peace deal signed last August to end 2½ years of civil war. Government spokesman Michael Makuei told reporters that the rebel general, Simon Gatwech, was trying to bring more than 200 extra soldiers with him, beyond the agreed number of rebel troops allowed in Juba. Makuei also accused the rebels of trying to bring anti-tank rounds and...

Tanzania-Rwanda prep for business summit

Rwanda and Tanzania are taking their renewed relations to a new level. The two countries have announced a joint business summit to be held on May 6th at Kigali Serena hotel. According to the organizer Mustafa Hasanali, the business forum is set to strengthen trade between the two countries and generally boost intra regional trade called for by the East African community. The summit is organized by the Private sector federation (PSF) of Rwanda in conjunction with the Tanzania Chamber of Commerce, Industry and Agriculture (TACCIA). Organisers say the business summit is expected to attract approximately 300 participants from the two economies. “The summit is a great opportunity for the business community especially in regards to infrastructure and logistics as it will help create a blueprint for improved trade ties between the two neighbours,” said Dennis Karera the chairman of the East Africa business council. Landlocked with a population of 11million, Rwanda imports and exports most of its products by road through its neighbours including Tanzania, Uganda, Burundi and DRCongo. Rwanda’s real GDP growth is projected to grow at the rate of 7.5% in 2016-17 mostly driven by foreign and public investment, services and exports. Last year Rwanda recorded $127.8 million worth of exports to East Africa Community compared to $142.4 million in 2014.  Tanzania’s Dar es Salaam port is very vital in handling most of Rwanda’s imports and exports. Rwanda is aggressively seeking to cut down on its trade deficit by increasing exports. Exports in Rwanda decreased to 41.56...

East Africa cuts non-tariff barriers to increase trade

East African countries have managed to reduce trading times and costs through elimination of non-tariff barriers (NTBs), advancing trade and prosperity, a regional trade development lobby said on Wednesday. "A reduction of NTBs will invariably lead to more trade in the region, which is ultimately our goal, of growing prosperity through trade," said Matsaert, CEO of TradeMark Africa, a donor-funded organization formed to help regional states speed up integration. "This is a significant milestone in the growth and development of our region. Non-Tariff Barriers remain a stumbling block in growing prosperity in the EAC region," he said during the launch of an evaluation report in Nairobi.. The report comes at a time when elimination of NTBs remains a teething challenge not only to regional trade and integration but also a subject that partner states grapple with in the quest of growing trade within the EAC bloc. Analysts say barriers like customs documentation requirements, varying systems of customs formalities and non-harmonised standards requirements among others continue to impede trade within the region. They also say that if NTBs were removed on maize, for example, Uganda would benefit significantly in terms of increased production and trade compared to Kenya and Tanzania. The time taken to export from Uganda has successfully reduced from nearly 35 days in 2010 to under 30 days in 2015. Other areas that have witnessed great progress include Tanzania which has witnessed a 99 per cent reduction in application time from 5 days to only one hour due to...

Elimination of Non-Tariff Barriers advances trade within EAC

Regional trading times and costs have been reduced through elimination of Non-Tariff Barriers in the region advancing trade and prosperity, says a TradeMark Africa evaluation report. TradeMark Africa has been supporting the elimination of Non-Tariff Barriers (NTBs) to trade in the East African Community (EAC). NTB’s present a serious challenge to trade with an EAC wide cost estimate of NTBs (2010) being approximately US$490 million. Emerging results from the recently conducted independent evaluation of the NTB’s programme indicate a 14 per cent reduction in time taken to import goods from each East African country (from 36 days to 31 days) and a 20 per cent reduction in time taken to export goods from each EAC country (from 33 days to 26 days). Further results indicate a reduction in the cost of transporting a standard (40 foot) container from Mombasa to Kigali, from US$6,500 in 2011 to US$4,800, which is estimated to have generated a saving (at constant volumes) of approximately US$7 million on the Mombasa-Kigali route alone Similarly, Inland transportation times from Dar es Salaam to Kigali have dropped considerably, now to 3.5 days. Burundi tops the list of the East African countries that has witnessed the highest import reduction time – at 28 per cent (from 30 days to 43 days). The time taken to export from Uganda has successfully reduced from nearly 35 days in 2010 to under 30 days in 2015. Other areas that have witnessed great progress include – Tanzania which has witnessed a 99 per...