With the demise of the Doha Development Round at the World Trade Organization Ministerial in Nairobi this past December, the multilateral approach to global trade negotiations has largely ended. Given that the number of regional trade agreements has increased from 70 in 1990 to more than 270 today, it appears that it is every region for itself when it comes to global trade. Tripartite Free Trade Agreement and Continental Free Trade Agreement In certain respects, Africa is well positioned in this new era regional trade relations. The Tripartite Free Trade Agreement (TFTA), signed in Sharm-el-Sheikh, Egypt in June 2015, brings the Common Market of Eastern and South Africa (COMESA), the East African Community (EAC) and the Southern Africa development Community (SADC) into thecontinent’s largest free-trade zone covering 26 countries and stretching from Cape Town to Cairo. Already, it is estimated that the volume of intra-regional trade among these three blocks has increased from $2.3 billion in 1994 to $36 billion in 2014, a more than 12 fold increase from 7 percent to 25 percent of trade over 20 years. While low compared to the EU (70 percent) or Asia (50 percent), it is a positive trend line. The TFTA is an important boost for regional integration in Africa and is seen as a stepping stone for Africa to realize its ambition of creating a Continental Free Trade Agreement (CFTA). Implementation is behind schedule, however, and efforts are being made to complete the negotiations within the 36 months set out in...

NAIROBI, April 14 Kenya is seeking more private investment in state infrastructure to maintain the pace of spending on new railways and other vital assets while reducing the budget deficit, senior government officials said. East Africa's biggest economy aims to cut the deficit to 6.9 percent of gross domestic product in the fiscal year starting in July from a forecast 8.1 percent for 2015/16, in a bid to reassure investors unnerved by the large gap. Finance Minister Henry Rotich said the government had initiated several Public Private Partnership (PPP) projects to build roads, energy plants and housing. He did not give a value. "The whole intention is to get most of the projects that private investors can take up so that we can reduce pressure on our domestic resources," he told reporters. PPPs have been touted as a valuable route to fund new roads, airports, seaports, railways and power plants across Africa, a continent that struggles with creaking infrastructure. But analysts say such financing has often stumbled over government guarantees and revenue sharing arrangements. Irungu Nyakera, the principal sectary at the ministry of transport and infrastructure, told Reuters Kenya and others had to make such plans work to sustain investment. "We just have to come up with other creative ways of raising funds other than through the exchequer," he said. The transport ministry has one of the highest budgetary allocation this fiscal year, at 280 billion shillings ($2.77 billion), after decades of underinvestment. "It is a huge leap from where...

Business at the port of Mombasa has slowed down over the last two days following the ongoing heavy rains in some parts of the country. The conventional cargo section which handles mainly break-bulk cargo especially fertiliser is the most affected area. Yesterday the rain subsided enabling the discharge of fertiliser from three ships, according to the Kenya Ports Authority. However, KPA said one ship offloaded only 262 metric tonnes of fertiliser in a shift compared to 1,000 tonnes that can be handled in a normal shift. Cargo holds of the vessels had to be shut to prevent the fertiliser from getting damaged by the rains. “A slow off-take of the bagged fertiliser was also visible as a result of a lower number of trucks that turned up for business. At the main Container Terminal, operations were going on but equally on a slower pace,” KPA head of corporate affairs Bernard Osero said in a statement. The ship operations were dealt a big blow as visibility remained poor while crane operations were slowed down because of slippery condition, Osero added. Operators were reportedly making 28 to 30 movers per hour per ship crane as compared to 35 to 40 movers per ship crane per hour in a normal day. “Cargo trucks and terminal tractors movement along the quayside and around the yard was unusually slow. The rains have been on since 1 am starting with the second shift. The better part of the morning saw two shifts severely affected,” Osero said....

South Sudan will Friday officially become the sixth member of the East African Community (EAC) when it signs documents acceding to the treaties of the regional bloc. SHARE THIS STORY inShare President Salva Kiir of South Sudan and his Tanzania counterpart, John Magufuli, who doubles up as the EAC chairman, are scheduled to sign the accession treaty in Dar es Salaam, weeks after Heads of State from the bloc approved the admission of the country that is just climbing out of a phase of civil unrest. “The Summit then designated the chairperson, President John Pombe Joseph Magufuli of the United Republic of Tanzania, to sign the Treaty of Accession with the Republic of South Sudan,” the EAC secretariat said ahead of tomorrow’s ceremony. The signing will set in motion South Sudan’s assimilation into the bloc that is currently at a common market stage. In line with the treaty, the country will be required to immediately open up its borders for exchange of goods as well as labour and capital. South Sudan would also be required to adhere to principles of good governance, democracy, the rule of law, observance of human rights and social justice besides adopting social and economic policies being compatible with those of the EAC. Boon to Kenyan banks The formal entry of South Sudan into the EAC is a boon to Kenyan firms as banks, insurers, manufacturers and airlines will easily move critical staff to run their operations in areas where locals lack expertise. READ: Business lose...

Eliminating challenges related to processing of import and export cargo that have impacted on Kenya’s business climate and global competitiveness remains a key plank of the government’s transformative agenda. SHARE THIS STORY inShare This is more so on international and cross border trade where Kenya is undertaking robust reforms at the ports and border points through ongoing digitisation and automation on our trade transaction processes. A key solution is the Single Window System, the online cargo clearance platform known in Kenya as the Kenya TradeNet System and which was launched in May 2014. Kenya Trade Network Agency (KenTrade) is the state agency mandated to implement and manage this complex and cross cutting project which has integrated with Systems of regulatory and permit issuing agencies known as Partner Government Agencies (PGAs). These include Kenya Revenue Authority, Kenya Bureau of Standards, Kenya Ports Authority, Kenya Plant Health Inspectorate, Port Health Services, Kenya Police and Pharmacy and Poison Board. Among the new innovations that KenTrade hopes to leverage on to boost trade facilitation through the Kenya TradeNet System is the Integrated Customs Management System(iCMS) launched by our key partner agency, Kenya Revenue Authority. Radically improve The new System is expected to replace the Simba System which has been in use in the country over the last 10 years or so. However it is important to note that this is a government initiative meant to radically improve on the user experience of clearing cargo through our ports and border points. READ: KRA in plans...

Kenyan farmers have stepped up export of maize encouraged by record prices in Tanzania, worsening the cereal shortage locally that has seen flour prices begin to rise. SHARE THIS STORY inShare Latest market data indicates that 145 tonnes of maize have been shipped to Tanzania through Isebania border in the last 30 days alone as farmers seek better prices in the regional market. Data prepared by the Regional Agricultural Trade Intelligence Network (Ratin) shows that a 90-kg bag of maize currently retails at Sh4,898 in Dar es Salaam, the highest unit price in East Africa. The same quantity of maize currently fetches between Sh2,500 to Sh3,510 in Nairobi, an average of Sh2,661 in Kampala and Sh4,597 in Burundi. The Ratin report shows that the majority of Kenyan farmers are opting to ferry their produce all the way to Dar es Salaam in search of higher returns. This comes just one day after Kenya millers warned that the price of maize flour would increase in coming weeks following a grain shortage, putting pressure on households that depend on the cereal as a major source of food. “The supplies of maize have been tight in the market and millers are unable to get enough stocks, this situation would see the price of flour go up in the coming weeks,” an official of the Cereal Millers Association told the Business Daily in a previous interview. Falling since Sept The two-kilogramme packet of maize flour has increased by an average of Sh5 over the...

Kampala — The Federation of Uganda Employers (FUE) has called for waiving of work permits fees within the East African Community (EAC) because they impede free movement of labour and services within the region. Speaking at their annual general meeting in Mukono last week, Mr Nicholas Okwir, the FUE board chairman, said continued issuance of work permits shows that laws regarding movement of workers and services within the EAC have not been harmonised. "We have been focusing on the activities over the last 12 months. We held a meeting of the East African Federations of Employers and it was observed that much as the region is looking at achieving the common market protocol, focusing on work permits is critical on the movement of labour and skills," he said, adding that whereas some members such as Kenya and Uganda have waived the fees, Tanzania, Rwanda and Burundi have not. According to Rosemary Ssenabulya, the chairperson East African Federation of Employers, much as trade had been given prominence in the integration process, the ministers in charge of labour do not regularly meet to discuss such issues. Source: The Monitor

She told the visiting Oman businessmen and industrialists that basing on her strategic location, Tanzania offered ample trade and investment opportunities and an access to a market of more than 150 million people in East African Community (EAC) region. “The government is committed to attracting large-scale investments to boost industrialisation, exports and development,” she said at the opening of Oman-Tanzania Roadshow in Dar es Salaam for the visiting Oman business delegation to explore trade and investments opportunities in Tanzania. The Oman business delegation, comprising businessmen and industrialists, arrived in the country on Tuesday evening for a three-day visit to explore opportunities of trade and industrial cooperation between the two countries. Ms Samia urged the Omani visitors to take advantage of the country’s drive to boost industrialisation through large-scale investments by investing in a wide range of areas and benefit from well balanced and competitive package for fiscal and non-fiscal incentives for large scale investors. “Tanzania has a vibrant market based economy in which there is unlimited investment and business opportunities, which you are invited to explore,” she told the Omani business delegation. Tanzania is aiming at transforming from an agricultural economy to a semi-industrialised nation by 2025. She said investing in Tanzania also guaranteed access to a market of more than 300 million people in Eastern and Southern Africa in which Tanzania enjoys preferential trading arrangements by virtue of being a member of SADC and East African Community (EAC). The VP added that Tanzania enjoyed a competitive edge above other...

Representatives from the International Trade Centre (ITC), Geneva, currently working with African Cotton and Textile Industries Federation (ACTIF) along with a representative from Tanzania visited Tirupur Exporters' Association (TEA) on Tuesday for a preliminary discussion on investment opportunities in the garment sector in selected East African countries. The countries for which the delegation sought investments are Ethiopia, Kenya, Rwanda, Uganda and Tanzania under the project called “Supporting India's Trade Preferences for Africa (SITA)”, the TEA said in a press release. On behalf of TEA, V. Elangovan, Executive Committee Member and Arun Ramasamy, Chairman, Young TEA participated in the meeting. Elangovan informed the delegation about TEA, Tirupur exports and the role of TEA in the growth of exports. He also pointed out the higher customs tariff prevailing in African countries and investment made by a TEA member in Ethiopia recently. Ramasamy told the delegation about his experiences in exporting to the Pepco Brand in Africa. According to the release, the ITC's Belinda Edmonds said they would come back again after two months to meet more exporters and invite them make investment in East African countries. (SH). Source: Fibre2Fashion

South Sudan will Thursday officially become the sixth member of the East African Community (EAC) when it signs treaties to join the regional bloc. President Salva Kiir of South Sudan and his Tanzania counterpart John Magufuli who doubles up as the EAC chairman, are scheduled to sign the accession treaty in Dar es Salaam, weeks after Heads of State from the bloc approved the admission of the country that is just getting out of a civil unrest. “The summit then designated the chairperson, his excellency President John Pombe Joseph Magufuli of the United Republic of Tanzania, to sign the Treaty of Accession with the Republic of South Sudan,” the EAC secretariat said ahead of the Friday ceremony. Flags of East African Community member states. South Sudan will on April 14, 2016 officially become the sixth member of the East African Community (EAC) when it signs treaties to join the regional bloc. PHOTO | FILE | NATION MEDIA GROUP Flags of East African Community member states. South Sudan will on April 14, 2016 officially become the sixth member of the East African Community (EAC) when it signs treaties to join the regional bloc. PHOTO | FILE | NATION MEDIA GROUP The signing will set in motion South Sudan’s assimilation into the regional bloc that is currently at a common market stage. In line with the treaty, the country will be required to immediately open up its borders for exchange of goods as well as labour and capital. South Sudan will also...