Arusha — In a bid to improve trade with other members in the East African Community (EAC), Tanzania has issued 3,222 simplified certificates of origin (CoO) as of June last year compared to 2,355 certificates issued in 2014. This was revealed in Dar es Salaam on Tuesday by Prime Minister Kassim Majaliwa in his address to the East African Legislative Assembly (Eala) currently holding a plenary session here. A CoO is a document used in international trade in printed form or as an electronic document. It is completed by an exporter and certified by a recognised issuing body, attesting that a ship consignment has been produced, manufactured or processed in a particular country. The origin of a product does not refer to the country, where the goods were shipped from, but to the country, where they were made. If it happens that the products were manufactured in two or more countries, origin is obtained in the country, where the last substantial economically justified working or processing is carried out. A common practice is that if more than 50 per cent of the cost of producing the goods originates from one country, the local content is more than 50 per cent, then that country is regarded as the country of origin. In case of trading blocs, such as the EAC, CoO may be allowed to state the trading bloc rather than a specific country. Determining the origin of a product is extremely important because origin is key information for applying tariffs,...

IN SUMMARY Traders are saving up to $300 (Sh30,600) per transaction through more efficient joint clearance of cargo by EAC partner states at Mombasa port. An audit of the Single Customs Territory (SCT) system that was recently adopted by Kenya, Uganda, Rwanda, Burundi and Tanzania also showed that cargo clearance time at the port has dropped to an average of four to six days, from 18 to 22 in 2013. Under the SCT deal that began in 2014, clearing agents within EAC have been granted the rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping. Traders are saving up to $300 (Sh30,600) per transaction through more efficient joint clearance of cargo by EAC partner states at Mombasa port. An audit of the Single Customs Territory (SCT) system that was recently adopted by Kenya, Uganda, Rwanda, Burundi and Tanzania also showed that cargo clearance time at the port has dropped to an average of four to six days, from 18 to 22 in 2013. “Customs documentation requirements have been reduced by over 50 per cent and one customs agent is required to clear goods right from the Port of Mombasa or Dar-es-Salam to the Ugandan destination,” the Uganda Revenue Authority revealed in a performance update. The SCT system allows joint collection of Customs taxes by the East African Community partners. Under the SCT deal that began in 2014, clearing agents within EAC have...

IN SUMMARY Kenya Ports Authority (KPA) says it is eyeing higher volumes of transshipment cargo when it takes over the completed phase one of the second container terminal currently under construction at Mombasa port. Despite the potential in the region the KPA has over the years restricted the volume of transit cargo to avoid congestion due to limited handling and storage capacities. Statistics by the port manager showed transshipment (handling of goods destined for other ports) has over the years remained at less than one per cent of the total cargo containers handled at the port. Kenya Ports Authority (KPA) says it is eyeing higher volumes of transshipment cargo when it takes over the completed phase one of the second container terminal currently under construction at Mombasa port. Despite the potential in the region the KPA has over the years restricted the volume of transit cargo to avoid congestion due to limited handling and storage capacities. “With the ever growing container and overall port cargo throughput in Mombasa, this new terminal will offer the much needed space to match the growth. The KPA also looks forward to increasing its capacity to handle transshipment cargo for the neighbouring ports which of late are struggling with serious congestion problems,” the KPA said in an update. READ: Part of new Mombasa port terminal opens in March Statistics by the port manager showed transshipment (handling of goods destined for other ports) has over the years remained at less than one per cent of the...

IN SUMMARY A new cargo clearance system, expected to lower transaction costs and tighten compliance, is set to be piloted from next week by shippers in the region. New system aims to make trade and cargo importation and exportation less tedious. Lobby says system will provide shipping information to agents to enable them intervene long before the cargo arrives at the port and clear it in time. A new cargo clearance system, expected to lower transaction costs and tighten compliance, is set to be piloted from next week by shippers in the region. The Shippers Council of East Africa (SCEA) will roll out the Advance Cargo Shipment Information (ASHI) System for two months starting March 18 as the lobby seeks to make trade and cargo importation and exportation less tedious for shippers. The system, also referred to as Electronic Cargo Tracking Notes (ECTN), is envisaged to reduce congestion at the port and cut operation costs resulting from demurrage and storage charges for imports. The system is also meant to improve efficiency and curb revenue leakages. Cargo heading to Kenya will be covered by Electronic Cargo Tracking Notes or Cargo Shipment Information — a maritime document issued by the shipper at the loading port providing information including its flows to destination country. The document will also include details of the shipper, description of the cargo including its value, country of origin, weight, freight rate and other additional charges. The shippers council has partnered with Antaser Afrique, a Belgium-based company, to roll...

Outgoing East African Community (EAC) Secretary General, Dr Richard Sezibera, has decried the use of money by politicians seeking public office in the regional bloc, saying this was fuelling corruption and stalling development. At 4th Annual East African Community Secretary General's Forum held in Dar es Salaam on Friday, Dr Sezibera said corruption would remain a curse in the region as long as leaders used their financial muscles to buy votes. "Voters in the region tend to elect people on the influence of money. Corrupt candidates will always be corrupt leaders," he said. The function ran under the theme 'Good Governance and Constitutionalism'. Dr Sezibera noted that corruption was still rife in the EAC member states, and a stumbling block to good governance. He commended President John Magufuli for his relentless efforts to fight the vice for the betterment of wananchi. The outgoing EAC boss urged other leaders in the region to emulate President Magufuli's stance on graft. He also echoed the President's statement at the just ended 17th Ordinary EAC Heads of State Summit that it was high time leaders focused on ensuring residents benefitted from integration. He said: "Integration is not just about words, but putting things into action to improve people's lives in the region." Meanwhile, the Head of TradeMark Africa-East African Community (TMA-EAC), Mr Jason Kap-Kirwok, said his organisation will organise more seminars on good governance to member states for citizens to enjoy fruits of the integration. Source: allAfrica

The admission of South Sudan into the East African Community bloc is a boon for Kenyan businesses as they seek to widen their business horizons. The bloc’s market size has now jumped to a massive 162 million people. EAC members are now six. Others are Uganda, Tanzania, Kenya, Rwanda and Burundi. In Juba, the decision was reportedly received with excitement with the troubled nation taking the move as a vote of confidence. Analysts see South Sudan’s admission as an opportunity for Kenyan traders to sell their goods and services on a bigger platform. “It is very good for Southern Sudan to be admitted into the EAC in as far as Kenya is concerned. The ultimate aim is to make EAC a free market for goods, services including financial services and labour,” said Mr John Kirimi Sterling Capital executive director. “Kenya has a more developed and diversified market for all the three and it will therefore stand to benefit most.” A huge number of Kenyan corporates already have operations in South Sudan. They include several banks and small scale enterprises all of which have set up base in Juba and other areas. Some of the firms operating in South Sudan through subsidiaries or cross-border sales networks include UAP Holdings, East African Breweries Ltd (EABL), KCB, CFC Stanbic Bank, Equity Bank, Co-operative Bank, and Kenya Airways. However there are a number of concerns as well. Businessmen who spoke to Smart Company said while South Sudan accession is welcomed, the country has to...

In Egypt more than 1,500 public and private business delegates and state leaders agreed in February to mobilize massive investments for the implementation of Africa’s largest trading bloc which was created last year by 26 African countries with a total of 620 million consumers and a combined Gross Domestic Product (GDP) nearing $1.2 trillion. The agreement crowned the “Africa 2016” investment forum held in the Egyptian Red Sea resort Sharm El Sheikh. Business leaders convened with government officials and heads of international organizations to discuss trade and investment as engines of progress. African heads of state and government from Ethiopia, Equatorial Guinea, Gabon, Nigeria, Sudan and Togo took part in the forum. No official figures relating to the amount of these investments were released. An Egyptian diplomat talked to IPS on condition of anonymity. Corruption comes first on the list of impediments to investment along with instability, the source said. “The volume of trade between African countries does not exceed 10 percent of the continent’s foreign trade, and will not increase unless tariff barriers are reformed and needed infrastructure is built, such as roads and ports to transport goods, among other,” added the diplomat. Along with the installation of giant power generation plants, a 7,000-kilometres-long Cairo-Cape Town railways line is among large projects that attract private investors. ‘Development is no longer a dream’ “Times have changed in Africa,” said the Business for Africa Forum’s concept document submitted to the meeting. With interest in the continent growing exponentially, some of today’s...

Dar es Salaam — South Sudan has now been admitted into the East African Community (EAC), increasing the membership of the common market to six, with a population of 162 million people. The 17th Ordinary EAC Heads of State Summit in Arusha resolved to admit Africa's newest nation into the economic bloc on Wednesday. "South Sudan is a new member of the EAC," said the EAC secretariat on its social media site on Wednesday. A statement from the EAC headquarters in Arusha before the announcement showed that the issue was high on the agenda of the meeting. It said the leaders would decide "on the negotiations on the admission of South Sudan into the community," among other issues. South Sudan now joins Kenya, Uganda, Tanzania, Rwanda and Burundi, and it will be part of the regional integration projects that have been the subject of discussion among member countries, some for years now. South Sudan applied for EAC membership soon after gaining its independence from neighbouring Sudan in 2011, upon being invited by the presidents of Kenya and Rwanda. There has been mixed reactions from various quarters, on whether or not it is the right time for South Sudan to join the EAC. Some critics have suggested that it would have been better for the cuntry to resolve its political issues at home first. Others say the tensions should not bar or distract South Sudan's desire to be part of one of Africa's biggest regional bloc. Another group of analysts believe...

An EAC Mobile Application meant to disseminate news, information and reports on a timely basis about the current state of affairs and development has been unveiled. The Secretary General of the East African Community, Amb. Richard Sezibera, unveiled the mobile application version 3.2 at the 4th EAC Secretary General’s Forum in Dar es Salaam, Tanzania, yesterday. Amb. Sezibera hailed the EAC Youth Ambassadors’ Platform, the architect of the application, for the brilliant innovation. He singled out Brian Joseph Otim, Jacob Eyeru, Dennis Leku and Herbert Esemu from the EAC Youth Ambassadors Platform, Uganda Chapter, for developing the first-ever EAC mobile application product and making it accessible globally. In a statement from the EAC, Sezibera said the application, also known as EAC in the Palm, was free, open and easily accessed mobile platform dedicated to easing sharing and disseminating EAC related information as well as tracking reports on development programmes in the region. “This will increase information outreach and sensitisation on the EAC integration process in real time,” said Amb. Sezibera. At the launch ceremony, Otim, the head of the EAC Mobile Application Project at the EAC Youth Platform, outlined some of the benefits of the product, which include; prompt information outreach to all citizens of the Community and the rest of the world through individual smartphones. He said this would advance the “one to one” sensitisation efforts of the Community; rebranding EAC on the social global network where information on EAC activities as updated on the website is made available...

KIKAFU Bridge, which has been scaring motorists and passengers alike due to its dark legend of claiming many lives from its annual accidents toll, will soon be reconstructed and relocated. The Japanese ambassador to Tanzania, Mr Masaharu Yoshida, said this recently during the ground breaking inaugural occasion for the proposed Arusha-Holili via Moshi highway. The highway will be built under the auspices of the East African Community. “Japan is keen to continue its infrastructural development support to Tanzania and other East African countries, including the ongoing building of Arusha-Holili highway,” stated Mr Yoshida in Arusha, at the inaugural ceremony attended by Heads of State from the EAC member states. Located at the Kwa-Sadala section of Hai District in Kilimanjaro Region, along the main Arusha-Moshi Highway, the bridge lies between two steep elevations with a deep river gorge in between, linked by a narrow cross-over. Kikafu apparently has had more than its fair share of accidents. Last year, a team from the Japan International Cooperation Agency (JICA) comprising Mr Hajime Iwama; the Director, Africa Division II in charge of JICA’s Tanzania programme, Africa Department, Mr Kenji Isomoto; JICA Technical Advisor and Mr Kimanari Takahashi; Team Leader of JICA Study, visited the EAC secretariat to discuss the project. Source: Daily News