ARUSHA, TANZANIA - Kenya and Tanzania senior representatives officially opened the Holili-Taveta One Stop Border Post (OSBP) last week. The project which was overseen by TradeMark Africa (TMA) is expected to ease trade movement across the border between the two countries and strengthen the integration process. The Tanzania Minister for Foreign Affairs, East Africa, Regional and International Cooperation, Ambassador Augustine Mahiga, and Kenya’s, Cabinet Secretary, Ministry of Labour and East African Affairs, Phyllis Kandie, opened the complex. Customs procedures between Tanzania and Kenya are ebing speeded up and other red tape substantially reduced. Ambassador Mahiga said the opening of the Holili and Taveta border post reflected the determination of the governments to boost regional integration through trade facilitation. Phyllis Kandie said the opening of the One Stop Border Posts at Holili and Taveta border marked an important milestone in the integration process of the region and called upon the business community to make optimal use of the facilities to enhance trade. “Kenya cherishes the vision of widening and deepening of integration... Kenya strongly believes in dynamism of regional integration,” she said. The construction of Voi and Taveta Road nearing completion and the new facilities at Holili and Taveta would boost trade in the East African region and unlock trade potential of the Kilimanjaro Region and Taveta County, said Kandie. The OSBP, Dr. Mahiga said, is set to increase efficiency by reducing time and transport costs incurred by businesses and transporters in crossing the border. The Minister further said the Arusha-Holili/Taveta-Voi...

Last week we looked at visa openness in Africa and concluded that the continent remains largely closed with its citizens requiring visas to travel to 55% of other African countries. This week we take a closer look at free trade in Africa. There are currently 17 trade blocs in Africa, but intra-African trade falls below 10% versus 50% in Asia and 65% in Europe. So why is intra-African trade so low and what can African leaders do to encourage greater trade and integration in Africa? Last year, at the 25th African Union Summit in Cairo, Egypt, African leaders signed the Tripartite Free Trade Agreement (TFTA). Prior to its signing, the agreement had been in negotiations for seven years. TFTA intends to unite three existing trading blocks in Africa, namely Sadc, East African Community (EAC) and Comesa, into one unified region. In doing so, the agreement renews the long-standing dream of an economically-integrated entity stretching from Cape to Cairo. If ratified, the agreement will create the largest free trade zone in the continent’s history with a membership of over 26 African states, a population of 632 million, an area of 17,3 million square kilometres, total trade of U$1,2 trillion and 60% of continental output. The large number of borders has long divided Africa’s 54 countries, limiting economies of scale. Fixing common problems such as a shortage of roads takes co-operation, but will lead to more integration. Transport costs in Africa are twice the world average and are detrimental to trade more...

On Wednesday, the East African Heads of State unveiled a new generation e-passport in a summit held in Arusha, Tanzania. The e-passport is expected to help build a long lasting relationship amongst East African nations. The Secretary General of the East African Community (EAC), Mr Richard Sezibera, while speaking to newsmen said “This is the time for creating a truly African market, (Through the use of the e-passport) – In goods, and services including financial services. This is the time for shared industrialization, creating value chains across countries and regions. I am glad East Africa continues to be at the forefront of integration and growth.” The e-passport was scheduled to launch in November last year but was postponed to allow more time to address pending issues on the travel document. The summit was preceded by a meeting of the EAC council of ministers which took place early last year at the EAC Headquarters in Arusha . The EAC trading bloc includes Uganda, Rwanda, Burundi, Kenya and Tanzania. The new passport will also be used for travel around the world while strengthening trade relations within the region. This latest development puts East Africa in the league of other regions like West Africa and North Africa where unified passports are already in use. Source: Ventures Africa

Simplified border clearance procedures at the newly opened one stop border posts at Holili and Taveta between Tanzania and Kenya will help boost regional tourism. Tourism in the region stood to gain from the one stop border posts at Holili and Taveta and the highway between the border town of Taveta and Voi in Kenya whose construction was nearing completion. Simplification of border-crossing procedures will have a direct impact on tourism in terms of improved efficiency in cross-border movement, he said. The East Africa Community is a leading tourist destination in Sub Sahara Africa. In 2012, tourism in East Africa is reported to have contributed 12.8bn US dollars with the industry’s total contribution to the GDP ranging between 4.8 per cent on the lower level as is the case with Burundi and 13.2 per cent on the higher level for Tanzania. The one stop border posts and the road project when completed will provide an alternative route and a shortcut to Mombasa for tourists. Once complete, the new highway link will permit the opening of a new safari circuit which includes Tsavo East, Tsavo West, the Taita Hills game sanctuary, and the Wundanyi Hills, Lakes Jipe, and Chala, and on the other side of the border Mt Kilimanjaro National Park and the little explored hills and mountains of Pare, Usambara, and the Mkomazi National Park. Tanzania and Kenya officially opened the Holili and Taveta one stop border posts set up by TradeMark Africa at a cost of approximately 12m US...

In this episode of In Focus, we discuss how African businesses can collaborate with governments to drive sustainable development across Africa with Mr. Ali Mufuruki, Chairman and CEO of the Infotech Investment Group. Mr. Ali Mufuruki is a Tanzanian entrepreneur, philanthropist, public speaker and leadership coach. He is the co-founder and chairman of the CEO Roundtable of Tanzania, a policy dialogue forum that brings together more than 100 CEOs of leading companies in Tanzania. This group engages regularly with the senior government leadership of Tanzania to find solutions for the country's economy. Mr. Mufuruki is also the owner, Chairman & CEO of Infotech Investment Group LTD, a family business that has interests in ICT, media, telecoms, private equity, retail and real estate across a number of countries in Africa and beyond. He currently chairs and serves on several Boards, including Trademark East Africa and AMSCO (Nedherlands). Source: Wavuti

Former Tanzanian President, Benjamin Mkapa; has been appointed by the East African Community (EAC) as facilitator of peace talks between rival factions in volatile Burundi. The announcement was made during the 17th Ordinary Summit of EAC heads of state in Arusha, Tanzania on Wednesday. The former leader is expected to discharge his duties under the leadership of President Yoweri Museveni of Uganda. “This was suggested by fellow presidents so as to deliberately speed up the end to the crisis in Burundi,” said President John Magufuli, the chairperson of the regional organisation. Former President of Tanzania HE. W. Mkapa new facilitator of the Burundi negotiations #BurundiCrisis pic.twitter.com/AX9GVzFGkK — Daily Monitor (@DailyMonitor) March 2, 2016 Mkapa was instrumental in brokering a peace deal in Kenya, when it was engrossed in a post election violence in 2007. Burundi’s foreign minister, Alain Nyamitwe welcomed the news and wished the former leader well. An African Union high delegation was recently sent to Burundi in an effort to facilitate talks between President Pierre Nkurunziza and the opposition. Source: Africa News

Somalia has been rejected to join the East African Community regional bloc after failing to meet the eligibility criteria, Horseed Media reports. Three years ago, Somalia first applied to join the regional integration but have not been given the green light due to unrevealed reasons. Somalia’s Minister of Foreign Affairs Abdisalam Hadliye insisted that a committee from the organization will soon visit the country to assess the country’s readiness to join the bloc. ‘’They will visit here [Somalia] in April to assess whether we are eligible to join the organization. I believe that we are able to fulfill the requirements and reap the benefits,’’ he said in an interview with the BBC Somali Service. Mr Hadliye strongly denied that the members of EAC denied Somalia’s application due to the security situation of the country. According to the treaty establishing the EAC, new members are admitted if they respect the principles of democracy, rule of law, accountability, transparency and social justice. The treaty also says the countries must, besides being geographically near any of the existing members, practise “equal opportunities, gender equality as well as the recognise, promote and protect rights in accordance with the provisions of the African Charter on Human and Peoples’ Rights.” On the same day Somalia’s application had been denied, the EAC members approved the new membership of war-ravaged South Sudan. Horseed Media Source: Hoseed Media

PRESIDENT Magufuli and his Kenyan counterpart President Uhuru Kenyatta has today launched a construction of 234.3 Km multinational Arusha-Holili/Taveta-Voi road corridor in Arusha Region. The project, under East African Community (EAC), member states, is jointly funded by the governments of Kenya and Tanzania together with African Development Bank (AfDB) and Japan International Cooperation Agency (JICA). The ceremony was witnessed by EAC Heads of State who embraced Kiswahili in a new spirit to make it main language of the Region. All of them addressed the gathering using Kiswahili. The road launched very fundamental for the regional integration and establishing the missing road network links in the regional infrastructure corridor. The road will also promote trade and economic growth in both countries. The president's speeches were mostly centered on industrialisation of East African states and free trade movement among local people of the Region. Source: Daily News

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 price is attributed to transport costs as well as other stamps and...

Lacking resources, Tanzania Ports Authority sees the construction of terminals escape it. Foreign companies are taking the orders for it. Source: The Indian Ocean Newsletter