The World Trade Organisation (WTO) members have elected Xavier Carim of South Africa to head its dispute settlement body (DSB) in yet another effort aimed at putting developing states at the centre of global trading system. Mr Carim will begin by steering DSB’s next regular meeting scheduled for March 23 after WTO delegates elected him by acclamation to replace outgoing chairman Harald Neple of Norway. “At its meeting on February 26, the DSB appointed Ambassador Xavier Carim as the new chair,” WTO Secretariat said in a statement. With a Brazilian, Roberto Azevedo as its director-general, WTO has lately been pulling all stops to project itself as an Africa (and developing states)-friendly agency. In December, the agency settled on Nairobi as the first African city to host its ministerial conference with chairperson - Kenya’s trade and international affairs secretary Amina Mohamed - helping the world to break a 10-year deadlock. Brazil, India, China and South Africa had previously led developing states in championing the anti-domination protests against WTO, leading to collapse of previously ministerial conference. With key reforms already recorded in the negotiation and implementation arms of the WTO, the all-powerful DSB has been seen as the remaining “unfriendly” aspect of multilateral trading system. Kenya unsuccessfully pushed for the appointment of Prof James Thuo Gathii, an international trade scholar, as a member of DSB in part of international efforts to make it appealing to the developing states. When he took over as WTO boss, Mr Xavier Carim Azevedo identified reforms at...

IN SUMMARY The new deal is set to create a conducive environment for investments and trade in goods and services between the two countries by removing uncertainties on taxation. The bilateral DTA was signed in 1979 but had not been ratified by Kenya following some outstanding issues that were contained in the Protocol to the Convention which will now be addressed by the Joint Declaration. Kenya last week signed a joint declaration on avoidance of double taxation (DTA) with Italy to eradicate DTA of income or gains arising in one country and paid to residents of the other country. The new deal is set to create a conducive environment for investments and trade in goods and services between the two countries by removing uncertainties on taxation occasioned by having two different jurisdictions at play. The bilateral DTA was signed in 1979 but had not been ratified by Kenya following some outstanding issues that were contained in the Protocol to the Convention which will now be addressed by the Joint Declaration. “Other benefits of the DTA include facilitation in tax administration through sharing of information by tax authorities of the two countries thus checking tax evasion,” said National Treasury Cabinet Secretary Henry Rotich. Mr Rotich was speaking during a meeting with the Minister for Economy and Finances of the Italian Republic, Pier Carlo Padoan, in Rome, Italy. He said that he was confident the signing and eventual implementation of the Joint Declaration will facilitate the ratification of and bring into force...

By James Anyanzwa East African Community member states have completed drafting crucial legislation required to fast-track the establishment of a single currency regime. The EAC heads of state signed a protocol in November 2013 in Kampala committing to a 10-year road map towards achieving a monetary union in 2024. The protocol provides for the introduction of a single currency and creation of a single central bank for the region. The Bills for the establishment of the East African Monetary Institute (EAMI), East African Bureau of Statistics and the Surveillance, Compliance and Enforcement Commission have been completed. "The EAMI Bill was finalised and is awaiting approval by the Sectoral Council on Finance and Economic Affairs, a statistics Bill was negotiated and is with legal drafters while the EA Surveillance, Compliance and Enforcement Commission Bill will be negotiated this month," Geoffrey Mwau, director-general of the Budget, Fiscal and Economic Affairs Department in Kenya's National Treasury told The EastAfrican. The review of the Bills by the EAC taskforce had been planned for May 2015 but was delayed due to the political crisis in Burundi. The partner states now have a five-year timeline to achieve key targets. These include overall inflation of eight per cent, fiscal deficit including grants of three per cent of GDP, gross public debt (50 per cent of GDP in net present value terms) and a floor on reserve coverage of 4.5 months' worth of imports. The partner states are also expected to comply with three indicative requirements including a...

The government of South Sudan has described the official admission of the country to the East Africa Community as ‘historical’ to create a global competitive East Africa. JUBA, 05 March 2016 [Gurtong]-H.E. James Wani Igga, South Sudan‘s 2nd Vice President who headed the delegation to Arusha, said that South Sudan will now enhance cooperation between the other member States. “……As members of the community we will enhance our cooperation with the region in many areas including: In governance, economic, political and defense areas” said Igga in Arusha on Thursday. He said South Sudan had made a clear statement expressing the need to be part of East Africa Bloc. “This is not surprising, as South Sudan is historically, economically and ethnically a part and parcel of greater East Africa region” he said, “together we stand a better chance to create a globally competitive East Africa” said Igga. Officials described South Sudan's admission to the East African Community as a decisive shift in the young nations’ foreign and economic policies. Hon. Michael Makuei Lueth, South Sudan’s Minister of Information and government spokesperson said joining the EAC i great achievement. “I am happy to inform the people of South Sudan that after the lengthy negotiations, the Republic of South Sudan has been admitted into the East African Community” Makuei said. “This is a great achievement and this will be of great benefit to the people of South Sudan in terms of economic, social and security benefits” Makuei added. The Information Minister further said,...

March 4, 2016 (JUBA) – South Sudan’s armed opposition faction led by first vice president designate, Riek Machar, has welcomed the country’s admission into the East African Community (EAC) on Wednesday, but called for legislative endorsement of the decision as well as referendum to confirm it by the people. JPEG - 6.7 kb Mabior John Garang de Mabior (File photo MC Clatchy Newspapers) In a statement issued on Thursday by the opposition faction’s chairperson of the national committee for information and public relations, Mabior Garang de Mabior, he described the decision taken by the heads of state of the EAC member countries including Uganda, Tanzania, Burundi, Rwanda and Kenya as a “sisterly” move. “The people of the Republic of South Sudan share with our sisterly countries of the EAC a common history of struggle, and admission of the South Sudan is in harmony with this historical experience,” partly reads the statement signed by Mabior and extended to Sudan Tribune. South Sudan applied for EAC membership four months after gaining independence from Sudan in July 2011. But institutional weakness, poorly managed economy and political instability delayed admission. Joining the bloc, the opposition faction said, has significant impacts. “The admission […] shall assist South Sudan in the areas of capacity building, sharing experiences and trade. The SPLM/SPLA (in Opposition) calls on the administration of President Salva Kiir to put this decision through legislative process and a referendum,” the statement added. But some South Sudanese on social media opposed the decision taken by...

By PSCU, ACCRA, Ghana, Mar 6 – President Uhuru Kenyatta has called for increased trade and investment between Kenya and Ghana in the spirit of Pan-Africanism. He noted that while trade between the two countries continued to record steady growth, there was room to do even better. “Let us continue to interact with each other so as to forge partnerships that will lead to more business, more skills transfer and complement the magnificent tourism sector that exists in our two countries,” the President said. President Kenyatta spoke Sunday when he joined President John Dramani Mahama and the people of Ghana in celebrations to mark the Western African nation’s 59th Independence Day anniversary that were also attended by President Jose Mario Vaz of Guinea Bissau at the Black Star Square in Accra. The reciprocal visit to Ghana by President Kenyatta follows President Mahama’s visit in 2014 when he also attended celebrations to mark Kenya’s 51st Jamhuri Day at the Nyayo Stadium. President Kenyatta expressed the need for Kenya and Ghana to harmonize their vision with the Continental Free Trade Area (CFTA) that is supported by the Economic Community of West African States (ECOWAS) and the East African Community (EAC). “We take pride in the fact that visa requirements between our two countries is non-existent and our national carrier – Kenya Airways – has daily flights to Accra,” President Kenyatta said. He affirmed his commitment to a borderless Africa, saying he looked forward to working closely with President Mahama and other African...

By Zephania Ubwani Arusha — The East African leaders yesterday stressed that governments should be facilitators and not impediments to the smooth flow of business in the region. "Governments have to facilitate trade growth and not block it," stressed Kenyan President Uhuru Kenyatta during the official launch of the project to upgrade of the Arusha-Holili road into a dual carriageway that will extend to Voi on the Kenyan side. He said despite the pumping millions of dollars by donors for the improvement of transport networks that would ease communication in the region, unnecessary restrictions by governments have proved to be a drawback. The Kenyan leader said despite countless agreements made to remove the non-tariff barriers (NTBs), there were still many restrictions that hamper cross-border trade and movement of people, touching mostly the lower segment of the people. "It looks like the governments are still obsessed with the out-dated laws of fortified boundaries. But the wananchi are trading among themselves," he told the huge gathering at Tengeru township along the Arusha-Moshi highway in the presence of President John Magufuli and Yoweri Museveni of Uganda, among others. He said during a similar road launch event at Taveta on the Kenyan side of the border last October, half of the hundreds of people who attended were Tanzanians who are small-scale traders doing business in the larger Taveta inside Kenya. President Uhuru, speaking in perfect Kiswahili, warned that unless the political leaders in East Africa discarded their isolationist notions, the region would continue to...

ANALYSIS By Astrid R.n. Haas, London School of Economics and Political Science South Sudan's accession to the East African Community could prove a major step forward in the economic development of the world's newest nation. On March 2, the East African Community Heads of State Summit admitted South Sudan as its newest member. Accession negotiations had commenced in November 2014. The relatively accelerated timeline to its conclusion is a strong indication of the willingness of all sides to admit South Sudan to the community. To date, oil revenues have financed more than 90% of South Sudan's budget. Such singular reliance on commodity and resource revenues is generally a risky and unsustainable approach to development. This is true of South Sudan. The civil war that broke out in 2013 disrupted oil production. This was compounded by the drop in oil prices from more than $100 per barrel in 2013 to $35 per barrel currently. These two factors mean that South Sudan can no longer rely on this source of revenue. Hence, regional integration will be an important route to diversifying its economy. Hindrances to economic development One of the major hindrances facing South Sudan in participating actively in regional and world trade has been high transport costs. South Sudan is a landlocked country with poor domestic infrastructure. Most of its road network is unpaved. Studies of informal, cross-border trade between Uganda and South Sudan show substantial mark-ups on goods once they enter Juba market. The largest portion of the increase in...

By Anne Kiruku­­­­­­­­­­­­­­­­­­, Arusha, Tanzania The opening of the Holili/Taveta One-Stop Border Post, a testament of the enormous investment the region is making in regional integration initiatives, will need to be accompanied by a thorough determination in dealing with associated challenges. The construction of more than a dozen similar border posts is a great leap towards realization of East Africa’s dream of One People, One destiny – a dream that ever so often seems distant given the roadblocks of official intransigence driven especially by parochial nationalistic sentiments. The new border post, like all the others, will now ease the movement of goods and people across borders. This will in turn boost trade by facilitating faster clearance of cargo and travelers. There will be a significant reduction in transport costs as well, all due to the more effective border control mechanisms being put in place. The border post will also ensure greater sharing of social and cultural norms by the communities living on either side of the Kenya-Tanzania border, a crucial factor in fostering faster integration. It will also create synergy and unity of purpose for the people of the border communities of the two countries. This noble initiative, however, must be accompanied by a determination to deal decisively with the enormous challenges that are threatening to dim the light of the East African Community regional integration agenda. Of particular concern is the menace of non-tariff barriers (NTBs), which is constantly threatening to rip the integration agenda apart. businesspersons across the...

THE East African Community (EAC), has expressed the need for its citizens and civil society organizations to join hands with its leaders in the fight against corruption in the region. EAC Secretary General, Dr Richard Sezibera made the call yesterday in Dar es Salaaam while opening the fourth Annual EAC Secretary General’s Forum. With the theme “Good Governance and Constitutional in the EAC” Dr Sezibera said that the fight against the development threat (corruption) should not be left to the hands of few leaders with passion to get rid of it, but be given drive by citizens and other stakeholders. “The fight against corruption should be done in a practical manner by mobilising the citizens and civil society organizations to join leaders who have demonstrated the examples in the fight against corruption,” he said and cited President John Magufuli as one among leaders to be emulated in the EA Region. In another development, Dr Sezibera said the EAC citizens ought to ensure those implicated in corruption cases are severely punished to stop the behavior. Commenting on the objectives of the forum, Dr Sezibera said that the forum that brought together the private sector members, civil society organizations and other interested groups including the professional associations in the regions agreed on the various issues towards the fight against corruption in the region. “One of the issues discussed and agreed in the forum by the business council and private members is on the code of ethics and how to treat their customers,...