In what signals the country's stay in a forced marriage, Tanzania's performance in a number of dimensions of regional integration has lagged behind that of its East African peers -Kenya, Rwanda, Uganda and Burundi. This is according to the Africa Regional Integration Index (ARII), a new tool designed to measure the level of regional integration among African countries. The index is a collaborative effort between the African Development Bank (AfDB), the African Union Commission (AUC) and the Economic Commission for Africa (ECA). It seeks to collect data on the impacts of regional integration. Countries are assigned scores from a scale of 0.0 to 1.0. It was created using five dimensions including regional infrastructure, regional trade, productive integration, free movement of people and financial and macro-economic integration. While the four countries have performed well above the African average- Tanzania has not. Kenya, the largest economy in the region, set the example in regional integration leading in three of the five dimensions that was used to design the index including regional trade, productive integration and free movement of people. Tanzania was last three dimensions including regional infrastructure, free movement of people, financial and macroeconomic integration. In essence, it is easier for a Tanzanian to enter Kenya and set a business than it is for a Kenyan to get into Tanzania and do the same. READ MORE East Africa trading bloc ranked high in regional integration Tanzania searches for "ghost workers" on public sector payroll Treat Kenyan VIPs with more decorum Tanzania is...

Africa might be a century behind the Western curve, but visionary leaders are starting to make the same bets which transformed the world’s dominant economies. There is little doubting the power of railway lines to open up trade and, with it, transform stagnant regions. All it needs is the selfless will of those taking the decisions. For decades, conflicting priorities has bedevilled such options – plundering of the public purse among the most obvious. But once graspers are replaced with those determined to serve the common good, magic is unlocked. Never bet against human ingenuity, once people are given the right tools. – Alec Hogg Bloomberg) — On a sweltering Kenyan morning on the outskirts of a national wildlife park, Chinese and local workers maneuver a massive concrete rail bridge structure onto towering support piers. In the distance, trucks loaded with shipping containers rumble down a highway. The bridge at Voi, northwest of the port of Mombasa, is the latest construction frontline for the initial 327 billion shilling ($3.2 billion) stretch of an ambitious railway project to link the East African country with landlocked neighbors including Rwanda and Uganda. As a faster alternative to the trucks clogging the only road running inland to the capital, the Chinese-built and -financed standard-gauge railway, known as the SGR, has the potential to transform trade in the region. East_Africa_Railway_April_2016 Kenya’s rail line, the country’s biggest investment since independence in 1963, is among the most advanced of the more than $30 billion of African rail...

A new chapter of warm relations has opened between the governments of Tanzania and Rwanda after Tanzanian President John Magufuli officially participated in the 22-year remembrance of the 1994 genocide in Rwanda, according to Tanzanian Foreign Minister Augustine Mahiga. Rwandan President Paul Kagame was among the very first African leaders to congratulate Magufuli shortly after the electoral commission of Tanzania declared him the winner of last year’s presidential poll. Kagame also participated in Magufuli’s installation. Foreign Minister Mahiga says the administrations in Dodoma and Kigali have had frosty diplomatic relations since a disagreement between Kagame and former Tanzanian president Jakaya Kikwete. This, after Kikwete urged Rwanda to hold discussions with the Democratic Forces for the Liberation of Rwanda (FDLR) - a Hutu rebel group based in the Democratic Republic of Congo -- to end its insurgency. Magufuli’s visit to Rwanda But Mahiga says President Magufuli’s visit to Rwanda marks a significant step towards improving relations between the two neighboring countries.He also says bilateral relations between the two East African countries could enhance the free movement of people, goods and services across their borders.Tanzania currently holds the rotating chair of the East African Community (EAC). “This time, I think relations have become extremely warm and a new chapter is being opened, and there have been a tremendous amount of goodwill and assurances from both sides, and I think we are on a totally different trajectory in terms of relations between Tanzania and Rwanda,” said Mahiga. “Tanzania is a neighbor of Rwanda...

China is negotiating for the creation of a free trade agreement with the EAC. The EAC has already signed co-operation agreements on trade with the US and the EU. Recently, China wrote to the EAC Secretary-General proposing to negotiate with the EAC partner states a comprehensive free trade agreement (EAC-China FTA). China also requested to undertake a joint feasibility study with the EAC on the proposed FTA, outgoing Secretary-General Richard Sezibera informed the Council of Ministers at a meeting in Arusha. The Council directed the Secretariat to undertake a comprehensive cost-benefit analysis on the implications of negotiating FTAs with third parties. "We are working on the directive of the Council," EAC spokesperson Richard Owora said. He said they expect to conclude the work by June 30. However, East African Business Council executive director Lillian Awinja cautioned that free trade with China would hinder EAC industrialisation. "EAC shouldn't rush to negotiate an FTA with China. We need to study, consult a wide range of stakeholders, and establish the impact of such a deal on the EAC industrialisation blueprint," Ms Awinja told The EastAfrican. She said the EAC needs to protect its investors in the manufacturing industry rather than expose them to unfair competition. Ms Awinja said that already China floods the EAC market with its products. "China has the capacity to flood the whole world with their products. If we are to protect our industries, let's choose only a few products from China," said Gasper Mpehongwa, a development lecturer at Tumaini...

When some of us heard that the first trip out of the country the president of Tanzania was making was to Rwanda, we were like, that’s great. Rwanda has acquired an international reputation for good governance and prosperity. Very fitting. Why? The answer is in the motto of the nation of Rwanda. Unity, work, patriotism. Those words symbolise and capture very well the philosophy of the fifth president of Tanzania. His ‘hapa kazi tu’ motto, he has vowed to serve all Tanzanians regardless of political affiliation, and he keeps reminding Tanzanians that the country’s riches belong to all citizens. “You must know, first of all, that you are in your brother’s place. Since you were elected, you presence has been refreshing. Your words and deeds reflect our vision. Your stance against corruption is very refreshing. We are committed to working with partners who feel we have to raise our level of dignity because that is what we deserve.” That was president Kagame speaking at the official dinner he hosted in honour of President Magufuli. He said much more but I believe when he stated the above he was not playing the polite host but expressing genuine feelings about a leader he admirers and respects. Tanzanian patriots must have felt very pleased to hear those words. Not too long ago there was a kind of frostiness between Rwanda and Tanzania and cold air and was blowing at the top of the food chain. Rwanda, Uganda and Kenya forged some kind of...

The Rusumo international bridge and one-stop border post, launched on Wednesday, link Rwanda to Tanzania’s Dar-es-Salaam port, where up to 60 percent of Rwanda’s cargo passes. Trucks weighing up to 180 tons can cross the new bridge, instead of the 40-year old bridge which accommodated a paltry 80 tons, thus clearing transit trucks from one hour to 20 minutes, according to customs officials. The one-stop border post will enable customs and immigration officers from both countries to work under one roof, reducing time wastage on clearing goods and people on both sides of the border. Speaking at the Wednesday launch, Rwandan President Paul Kagame and his Tanzanian counterpart John Pombe Magufuli urged Rwandans and Tanzanians to actively use the border to do business. “We want trade to increase because that will be to the benefit of both the people of Rwanda and the people of Tanzania,” said Kagame. On his part, Magufuli called on businessmen in both Rwanda and Tanzania and citizens from the entire East African Community to work together. “I trust that we can build our countries’ economies by working together,” said Magufuli. About 2,000 people cross the Rusumo border every day. With the new bridge and post, the number is expected to increase. Source: News Ghana

Construction for the new Lamu Port Southern Sudan-Ethiopia Transport corridor is expected to drive significant opportunities for the breakbulk sector, according to predictions from research consultancy Africa House. In a recent research note the firm states that nine development zones or "growth areas" have been identified including a dedicated bulk cargo center at Lamu which will help the port, as well as Isiolo area in the western interior, become major transport hubs. “It is estimated that Mombasa Port will have outstripped its capacity by 2025,” a spokesperson for Africa house said, adding that “a contract for the first three of planned 32 berths [at Manda Bay in Lamu] has already been awarded to a consortium of companies led by China Communications Construction Co. with the value of contract at 42 billion Kenya shillings.” Despite the overall positive expectations for growth in project cargo demand in the region the firm cautions that some factors still threaten downside risk. “Recent developments may, however, reduce the impetus for the LAPSSET Corridor. Uganda and Tanzania have announced the routing of the oil pipeline from Lake Albert to Tanga Port in Tanzania rather than Lamu. Ethiopia is strengthening its trade corridor to Djibouti Port,” a spokesperson added. Headquartered in Johannesburg, Africa House was formed following the merger of Whitehouse & Associates and Africa Project Access. The firm provides trade and project environment analysis alongside bespoke research on projects and opportunities in African transport and breakbulk markets. Source: Break Bulk

PRESIDENT John Magufuli has appealed to Tanzania and Rwanda residents to utilise fully the opportunities availed at the Rusumo International Bridge and One Stop Border Post (OSBP) for robust economic transformation, poverty reduction and improved livelihoods. President Magufuli made the remarks on Wednesday during the opening of Rusumo International Bridge and One Stop Border Post (OSBP), saying the move aimed at easing congestion and delays in transportation of goods. “Utilise fully the opportunities available through the Rusumo International Bridge and One Stop Border Post to bring about not only your own development by improved economies of the two countries” he said. Dr Magufuli further stressed the importance on unity among East African Community (EAC) member countries, saying that such unity would make the countries stronger economically and speed up peoples’ development. He noted that the EAC countries -- Tanzania, Rwanda, Kenya, Uganda, Burundi and South Sudan, with a combined population of 165 million, had a better chance to hasten peoples’ development.” I hereby appeal to all residents in the EAC region to utilise this opportunity by trading and making business together. With unity we can perform wonders, he said. The refurbished border facilities are expected to ease trade along the Central Corridor, which links Rwanda to Dar es Salaam Port. Speaking at the event, President Kagame touted peace as a foundation of a cooperation that will transform the two countries. Long distance drivers to all Great Lakes regions have all the reason to celebrate as President John Magufuli announced that...

The Ministry of Justice (Minijust) has committed to undertake more efforts in sensitising the community on the aspects of legal and juridical cooperation of the East African Community integration process. The Minister for Justice and Attorney General, Johnston Busingye, made the remarks this week while addressing members of the Senatorial Committee in Charge of Foreign Affairs during a meeting at the ministry headquarters in Kimihurura. According to Senator Mike Rugema, the chairperson of the committee, the consultative meeting with the Ministry of Justice was in line with parliamentary oversight responsibilities. “Today’s meeting was organised to gauge the extent to which the ministry has reached in sensitising the community on East African Community integration, especially in the justice sector. For example, what has the ministry done about harmonising laws in the EAC to ease activities of the citizens of the bloc? Such integration comes with various challenges, but the best way to overcome them is to analyse them,” he said. Busingye highlighted some of the achievements, among them, regional training for lawmakers, establishment of East African Court of Justice headquarters in member countries, as well as the establishment of a regional school of law in Nyanza District, Southern Province. “Citizens are the pillar of any integration process. Our regional integration is built on citizens; otherwise, the integration would be unsuccessful. Sensitisation is required to let the people enjoy the fruits of integration,” Busingye noted. “We have people who travel across the borders, especially traders. They should be aware of the laws...

Kenya is fast cementing its reputation for remarkable economic growth. With GDP growth averaging well above 5% for the 12 months to September 2015, impressive improvements in government finances, and falls in oil prices significantly reducing its imports bill, the future is bright for Kenya. The East African Community (EAC) as a whole is emerging as a beacon for trade. It contains fast-developing economies, and last year’s introduction of a single customs territory is already benefiting cross-border commerce. Foreign investment into sub-Saharan Africa grew last year, notably from diaspora communities, and Barclays’ Africa Trade Index identified East Africa as the trade hub to watch. With favourable economic conditions comes an expanding domestic market; and entrepreneurs are increasingly stepping up to meet this demand. The region’s growing reputation for entrepreneurship goes hand-in-hand with its ambitions for infrastructure development. Any entrepreneur will rely on digital, energy, and transport infrastructures. The World Bank estimates the impact of Africa’s infrastructure gap on productivity as 40%, leading to a 2% drop in growth. Fast-growing economies like Kenya’s require infrastructure that keeps pace with business growth. The UK is a global leader in many of the sectors for which Kenya has greatest demand: infrastructure, advanced engineering, energy, ICT and defence and security. In these and other specialist areas, UK expertise can help accelerate Kenya’s development and economic growth. Increasingly, financing and risk insurance for large-scale infrastructure projects across the world come from international export credit agencies. For example, loans used to fund projects may be guaranteed...