Kenyan Deputy President William Ruto has said there is need to dismantle trade and cultural barriers that hinder the growth of African economies. Speaking at the ongoing Africa CEO forum in Abidjan, Ivory Coast Monday, Ruto said regional and continental integration was critical in bringing down the walls that separate African countries and significantly expand intra-Africa trade. The Deputy President said competition for the same markets among African countries was only hurting African economies and called for urgent integration of African economies. “Intra-African trade is at a dismal 15 per cent while trade with Europe is at 60 per cent and Asian countries at 40 per cent. We need to free our economies. We can’t protect our economies and expect to make any impact on the international scene,” he said. Ruto, who is one of the key speakers, noted with satisfaction that the Eastern and Southern African regions were making positive efforts in regional integration noting that efforts are being made to bring the Southern Africa Economic bloc SADC, the East African Community and the Common Market for Southern and Eastern Africa (COMESA) together. “This effort will bring together 26 countries with a population of 625 million people and an economy of $1.3 trillion with a huge potential for trade and investment. We must not have a low ambition for ourselves to make an impact on international trade,” he added in the statement issued in Nairobi on Tuesday. Ruto said Africa must leverage on the technology and opportunities available on...

Services exports in Kenya have accounted for more than 50% of the increase in total exports since 2005 and are poised to overtake goods exports, says a new World Bank report. Trade, transport, information and communications technology and financial services “lead the pack” of services, according to the bank’s ‘Kenya Country Economic Memorandum’ for 2016 (164-page / 8.01 MB PDF). The report said an “expansion in modern services, such as financial intermediation and mobile communications... stimulated demand for traditional services such as trade”. Kenya’s growth in mobile communications was due in part to “innovative solutions” such as the country’s M-Pesa mobile money network, the report said. “For example, there are more than 40,000 M-Pesa retail agents who also sell other products and services.” The report said: “Investment and promotion of tourism have boosted hospitality, real estate, and transport services. Re-orientation of public resources toward public and social infrastructure has promoted educational services as well as construction and transport.” In promoting private investment, the report said Kenya’s financial system “is relatively developed, so the onus should be on lowering production (infrastructure) costs and improving the business environment”. Oil revenue “may become a significant source of savings in the long term, although the potential (discoveries) is still uncertain and the outcomes will depend on how the oil sector (and revenue) is managed”, the report said. The report said “windfall revenues could help bridge Kenya’s infrastructure gaps and skills deficiencies and expand the provision of health or other social services”. However, it said...

Monday's meeting between presidents Uhuru Kenyatta and Yoweri Museveni over the routing of the oil pipeline was not conclusive. Instead, the leaders resolved to have another one in two weeks in Kampala to give technical teams time to consult and explore options that could be acceptable to both countries. At the heart of the matter is the decision by Uganda to enter into a deal with Tanzania to put up a pipeline from Tanga to Hoima, otherwise referred to as the Southern Route, instead of the route through Lamu-Lacor-Hoima in western Uganda, conversely, called the Northern Route. The driving reason for this was that the Kenya route option is fraught with challenges. Related to this are the inefficiencies at Kenya's ports. Mombasa port is notorious for delays in clearing of goods due to internal inefficiencies as well as corruption, both of which raise the cost of doing business. Further, there are serious concerns about the security of the pipeline across Kenya, given the past cases of oil leaks. Although not expressly stated, Uganda is still alive to the dangers of political violence in Kenya, given what happened in 2007/8 when the rail line was destroyed and transportation of goods from Mombasa halted, causing commodity shortages across the border. Added to this is the non-tariff barriers that also increase costs. The loss of the oil pipeline business to Tanzania is not exciting. It sends a negative signal that Kenya is no longer an ideal destination for business. It leads to exportation...

Christopher Farai Charamba Correspondent Richard Mullin once said: “The only man I envy is the man who has not yet been to Africa . . . for he has so much to look forward to.” Over the past few years the global perception of Africa has been changing. The Africa rising narrative coupled with the positive growth rates in many regions on the continent have contributed to changing former negative attitudes the world had towards Africa. A direct consequence of this changing narrative has been an increase in international tourists to Africa. In 2014, African Business Magazine stated that Africa’s tourism industry was the fastest growing in the world. According to the World Bank, sub-Saharan Africa’s tourism industry is set to spur more economic growth for the continent and directly employ 6,7 million people by 2021. In 2011, tourism in sub-Saharan Africa accounted directly or indirectly for one in every 20 jobs. While there has been a marked increase in international tourists to the continent, it has always been a cumbersome process for Africans travelling within Africa to other countries. With flying too expensive and considered a luxury, a lack of proper road and rail networks between African countries has limited Africans in terms of exploring their continent. Another hindrance has been the need to obtain a visa to visit other African countries and a lack of a common passport akin to the one in the European Union that would allow African nationals easier access to other African states. This,...

The 17th East African Community Heads of State Summit admitted South Sudan as a new member of the East African Community partner states. This historical endorsement was made on Wednesday, March 2, 2016 in Arusha- Tanzania. Negotiations to South Sudan’s accession to the EAC began in November 2014 and truly there has been relatively an accelerated timeline to their conclusion. This clearly shows the willingness of all stakeholders to have the World’s newest nation join the East African community. The whole idea of the EAC integration is largely about creation of a wider market base, infrastructure development and guaranteed security within the region. The inclusion of south Sudan as an EAC partner state certainly provides a much needed push for both a wider market base from 150 million people to 162 millions and ultimately a beam of light in our regional security angle. A key feature of South Sudan’s membership is undoubtedly the thrust on strengthening the already existing market especially for agricultural produce. Here, Uganda and Kenya have significantly enjoyed trading with South Sudan and this has resulted into traders bringing in millions of dollars that have boosted our foreign exchange base. As for infrastructure development, we are likely to witness a tremendous improvement of the road network from partner states towards South Sudan. The standard gauge Railway project that was commissioned on October 8, 2014 will also take a shorter period to accomplish than otherwise expected. It’s also important to note that our region has largely experienced security...

NAIROBI (HAN) March 21. 2016. Public Diplomacy & Regional Security News. Local industries have received a major boost after the East African Community relaxed the rules on goods made in partner states. According to the revised rules of origin, goods made in partner states will now be sold duty-free. The more accommodating rules of origin have been under discussion for a year, and are expected to promote locally manufactured goods to increase intra-regional trade. The biggest beneficiaries of the revised rules of origin are steel companies, East African Breweries Ltd, General Motors, Kenya Vehicle Manufacturers, Kensalt Ltd and Mikoani Traders, whose products will now benefit the preferential tariff treatment. The products will be required to have a certificate of origin issued by the originating country, showing that they have a local content input of at least 30 per cent, unlike previously when the threshold was set at 35 per cent. Under the old rules, 25 per cent duty was imposed because certain parts or ingredients used in their assembly or production were imported from outside the economic bloc. Key products, on which duty has been scrapped are East African Breweries Ltd’s Smirnoff Vodka (Red and Blue), Smirnoff Ice (Black and Red), and Gilbeys. Motor vehicles manufactured from completely knocked down kits (CKDs) by General Motors; vehicles manufactured by Kenya Vehicle Manufacturers; wheat flour made by Mikoani Traders in Tanzania, salt manufactured by Kensalt Ltd and steel products (nails, chain links, welded wire mesh) will be exempted from the duty. According...

The 17th Ordinary East African Community (EAC) Heads of State Summit, early this month, endorsed and launched the EAC Vision 2050, a blueprint articulating the bloc’s desired future of a prosperous, competitive, secure, stable and politically-united Community. According to a communiqué, the EAC leaders committed to implementing the vision and ensure that by 2050, the bloc will have transformed into an upper-middle income region within a secure and politically united east Africa based on the principles of inclusiveness and accountability. The Vision was initially approved during a Council of Ministers’ meeting in Arusha, in 2014, after which a steering committee was established, to provide quality assurance of the process. Consultations were reportedly undertaken among a multidisciplinary team of experts from the Partner States and the EAC Secretariat with technical inputs from the United Nations Economic Commission for Africa (UNECA). Consultations focused on identifying priority areas that would underpin the Vision for the next 34 years. Rwanda’s EALA member Dr Odette Nyiramilimo is one of the people who participated in the process. Though she had not yet had a chance to read the final document, Dr Nyiramilimo told The New Times, last week, that the most important aspect that was included, “is that EAC will be developed, at least to the level of middle income countries.” “For that to happen, the political federation would have been achieved,” she said. Dr Nyiramilimo noted that she is optimistic that the process of implementation will go forward, “because we have visionary leaders,” and it...

The new facilitator of the Burundi peace process, former Tanzanian president Benjamin Mkapa (pictured), has dismissed concerns that growing tensions between Burundi and Rwanda risked an all-out war between the two neighbouring east African countries. Relations between the two countries have deteriorated after Bujumbura accused Kigali of sending spies to its borders, a charge Rwanda has denied. Mkapa has been on a whirlwind shuttle diplomacy across the region over the past week and has already held talks with chief mediator President Yoweri Museveni of Uganda, Rwandan president Paul Kagame and President Pierre Nkurunziza of Burundi. The ex-Tanzanian president said after talks with Nkurunziza in Bujumbura on Friday that he hoped the peace and stability that has characterized the first 10 years of the Arusha peace process will continue. “I had an in-depth briefing with the Burundian president ... I hope there will be an end to violence that took place in Burundi during the last couple of months,” said Mkapa. He also indicated that he wanted to assure the Burundi president that there should be an end to any “silly speculations” about possible confrontations or war between members of the East Africa Community (EAC) on developments in Burundi and Rwanda. “We are a community -- neighbours -- and we really must live in peace together, cooperate and develop together,” said Mkapa. There have also been allegations that Kagame’s government is providing support, including training, to armed Burundian rebels trying to topple Nkurunziza. During the briefing in the Burundi capital, President...

A study by two international oil firms, warning of a possible delay in the completion of an oil pipeline, was at the centre of talks between Presidents Uhuru Kenyatta and Yoweri Museveni at State House, Nairobi, on Monday. Sources within the Energy sector said that Tullow Oil plc and China National Offshore Oil Company (CNOOC) had a carried out research, whose findings warned Uganda against going ahead with its plan to construct the Northern Pipeline from Hoima through Lokichar to the Lamu Port. It was understood that two firms, working together with French oil company Total, warned that Uganda’s plans to start extracting crude oil for export in 2018 could be delayed if it goes ahead with the Kenya deal. Monday, President Museveni and his delegation presented the findings of the research to the Kenyan team led by President Kenyatta to justify Kampala’s recent decision to shift its focus to Tanzania, a route, which is much longer than the Kenyan option. PROTRACTED DISPUTES Sources said the study warned that Kenya has had a history of protracted land compensations, which would delay the construction of the pipeline from Lokichar to Lamu. “Uganda’s concern was that research by Tullow and CNOOC suggested that land compensation could be major factor in delaying the construction of the northern pipeline,” said a source who attended the meeting. The study pointed to the bitter disputes involved in the acquisition of land for the Lamu Port Southern Sudan-EthiopiaTransport (Lapsset) and in the construction of the Standard Gauge...

In Summary: The money is sought from Exim Bank of India, the Indian government’s other sources and from investors in the Asian nation through their Confederation of Indian Industry. New Delhi. Tanzania seeks a staggering $10.355 billion (about Sh22.5 trillion on the prevailing exchange rate) from various financiers in India as East Africa’s second largest economy seeks to fine-tune its infrastructure and put the country on the right footing to meet its development goals. The money, according to a report released at the ongoing 11th Confederation of Indian Industry (CII) – Export Import Bank of India (Exim Bank) Conclave on India-Africa Project Partnership - is sought for 22 projects. The money is sought from Exim Bank of India, the Government of India’s other own sources as well as from investors in the Asian nation through their CII. This is done in the hope that certain projects can be implemented and managed under the Public-Private Partnership arrangement. A document, released jointly by the Exim Bank of India chairman and managing director, Mr Yaduvendra Mathur and CII President, Mr Sumit Mazumder and the Indian Minister of State for External Affairs, General (rtd) Vijay Kumar Singh, among the various distinguished guests, shows that the National Housing Corporation (NHC) requires the highest amount of funding from Indian sources. A breakdown of the money shows that NHC alone requires a total of $6.2 billion (about Sh13.5 trillion on the prevailing exchange rate) in funding from various financiers within India’s $2 trillion economy. The amount is...