Kenya’s budget is the highest in East Africa region exceeding that of Tanzania, Uganda, and Rwanda.The three nations presented their 2019/20 national budgets before respective parliaments at the same time on Thursday.Kenya’s 2019/20 budget stands at Sh3.02 trillion followed by Tanzania (Sh1.4 trillion), Uganda (Sh1.08 trillion) and Rwanda at Sh316 billion. Rwanda, Tanzania, and Uganda 2019/20 national budgets total to Sh2.8 trillion that is around Sh200 billion less Kenya’s budget. Rwanda Rwanda said its overall spending will rise 11 per cent in 2019/20 (July-June) fiscal year to Sh316 billion, while 2019 economic growth will be slower than a year earlier, its finance minister said on Thursday.The finance minister Uzziel Ndagijimana proposed that 85.8 per cent of the budget would come from internal sources, and the rest from external grants. The economy is projected to grow 7.8 per cent in 2019 from 8.6 per cent in 2018, he said. Tanzania According to Tanzania's finance minister, the country's overall spending during the 2019/20 period will rise 2 per cent to Ksh1.4 trillion. Philip Mpango, its finance minister told parliament on Thursday that the John Pombe Magufuli led government also plans to borrow Tsh2.32 trillion from external non-concessional sources.Tanzania is East Africa’s third-largest economy and is investing heavily in public infrastructure projects as it seeks to profit from its long coastline and upgrade its rickety railways and roads to serve the growing economies in east and central Africa. Uganda Uganda finance minister Matia Kasaija said the government spending is set to rise 23...

The Democratic Republic of Congo has applied to join the East African Community in a move that could potentially expand the boundaries of the trading bloc to the Atlantic coast of Africa. The application comes following months of talks between DR Congo President Felix Tshisekedi and Rwanda President Paul Kagame, who chairs the East African Community. Sources familiar with the diplomatic talks that preceded the formal application say most EAC member states are enthusiastic about DR Congo’s membership. The DRC officially communicated its intention to join the EAC in a letter to President Kagame dated June 8. Kinshasa said its desire to join the bloc was informed by its increasing trade ties with the region. In response, President Kagame directed the EAC Secretariat to table DR Congo’s application for discussion at the next Heads of State Summit in November. If it meets the admission requirements, members will vote on its admission. GAME CHANGER The potential membership of the Central African country is being viewed as a game-changer, given its natural resources wealth and a huge consumer market of 81 million people. It is the world’s biggest producer of cobalt, a major component in the manufacture of rechargeable batteries for electric vehicles, and Africa’s main copper producer. It also a major producer of gold, diamonds, uranium, coltan, oil and other precious metals, making it one of the most resource-rich countries in the world. DR Congo is also host to the world’s second-longest river, the Congo, vast swathes of fertile soil, potentially...

The recent ratification of the African Continental Free Trade Area (AfCFTA) has created a promising environment for economic integration of major African markets with the smaller markets and enhance competitiveness at the industry and enterprise level by exploiting opportunities for scale production, continental market access and better reallocation of resources. The eventual implementation of AfCFTA is predicated on the assumption that the reduction of tariff between African countries would increase intra-African trade by 15 to 25 percent (amounting to about 50-70 billion USD) by 2040. The intra-continental trade in Africa would create a very large single market which would allow member states to build better resilience to resource allocations and price fluctuations even as they diversify their export portfolio. However, creating a single large market will require a massive amount of physical infrastructure facilitation. The continent will see itself placed in a catch 22 situation as it will need to invest trillions of dollars in infrastructure to spur contact and build growth momentum in the region. This figure would increase if the costs associated with climate change mitigation and adaption were to be included. For the development to be inclusive, the concept will have to build beyond better harmonization and coordination of trade liberalization across Regional Economic Communities (RECs). Improved customs procedures alone will fail to stimulate the markets unless finance is made available to small and medium sized enterprises, and women entrepreneurs are given adequate resources to participate meaningfully in exports. While the continent-wide free trade agreement has been...

The President indicates that the fair is taking place when Burundi has just developed its own development plan, which is a first national development plan developed by the Burundians themselves. The Head of State proceeding to the official opening of the Industrial Fair He pointed out that in the field of industrial policy, the government’s intention is to establish an industrial platform favorable to employment and youth and industrial know-how. Thus, Mr. Nkurunziza recommended to the ministry having the industry in its attributions to submit without delay to the council of ministers the national policy on industrialization based on the national development plan 2018-2027 and without omitting the considerations sub-regions in this area. “We want an industry that respects environmental and international requirements and adds value to jobs and economic growth,” he said. It also meant that he expects from this industrial fair, training, employment, respect for environmental standards and social responsibility. “My first goal is to reconcile young people with their land, their heritage, and their territorial identity,” he continued. Mr. Nkurunziza then believes that after the show these young people with an industrial vocation will be certain to be able to pursue a professional career at home in Burundi and for a long time. Meanwhile, Olivier Suguru, the President of the Association of Industrialists of Burundi (AIB) has said that this 2nd edition will serve as a meeting place for professionals from the sector of the sub-region and the rest of the world to exchange experience and forge win-win partnerships. An opportunity...

For the first time, one of East African Community member states Burundi unveiled its budget concurrently with Kenya, Tanzania, Uganda and Rwanda who have presented annual spending plans for 12 consecutive years together.   Kenya’s Ksh 3.02 trillion 2019/2020 budget by Treasury CS Henry Rotich dwarfed all four with Burundi having the lowest budget at just 82.4 billion shillings. The government of Tanzania eliminated and reduced 54 licenses and fees as they had previously agreed with the private sector in the “Blueprint for improvement for the regulatory environment”. the Tanzanian government has also imposed new taxes on wigs, licenses fees, and sanitary towels in the new budget. In Uganda Finance Minister Matia Kasaija has allocated an additional Ush 1,500 billion to security so as to enhance its capacity. Ush 1.054.6 bn has also been allocated towards agriculture. In the budget, an additional Ush 57.8 billion has been provided to the Uganda National Roads Authority (UNRA) to embark on the south-west tourism circuit. The scheme to enhance financial credit for youth and women was enhanced with Ushs130 bn and Ush 32bn respectively. There was also an increase in the budget allocation for education in Uganda where the previous year they allocated Ush 2781.1 billion in 2018/2019 while this year they have allocated it with Ush 3,373 billion. In Rwanda, the trade deficit increased by 9.3% in 2018 because imports and exports increased by 8.1% and 7.2% respectively in 2018 as compared to the previous year. Economic plans enshrined in the 2019/20 budget, as...

In this three- day Regional Industrial Fair, an opportunity will also be given to a maximum of local and medium-sized local industries to create and establish lasting and reliable relations with the economic operators of the sub-region, according to Olivier Suguru the president of AIB Burundi head of state, Pierre Nkurunziza was one of the guests of honor. In his opening speech, he said the industry supports not a group of people, but it also strengthens the sovereignty and strategic autonomy of a country. In short, the industry allows daily progress in all areas of the life of a people; it is above all for the latter, a source of stories of success, stories of pride. “In light of the foregoing, we are obliged to find all solutions to the problems that undermine the growth, innovation, and competitiveness of our industry. “The theme chosen for this second industrial exhibition in Burundi, namely ‘Innovation, a determining factor in industrial competitiveness’, will undoubtedly serve as inspiration and food for thought.” President Nkurunziza said Burundi with a tear-year national development plan The president of Burundi emphasized in his speech that Burundi has just acquired its own National Development Plan that is stated to be the very first National Development Plan developed established by the Burundians themselves. “The Ten Year Plan, which extends from the year 2018 to the year 2027, will now be a road map for all those who want to invest in Burundi or simply support us through different projects.” Said,...

MALABO, Equatorial Guinea – Central Africa stands to benefit the most from the African Continental Free Trade Area (AfCFTA), data from the African Development Bank shows. Hanan Morsy, Director of Research at the Bank, revealed the findings at the launch of one of the Bank’s flagship reports in Malabo, where the African Development Bank is hosting its Annual Meetings. Mr. Morsy said Central Africa’s real income could increase by as much as 7% in one of the scenarios that researchers describe in the 2019 African Economic Outlook. By the same calculations, East Africa, currently, the star performer on the continent, would experience an increase of around 4.2%, followed closely by North Africa. The scenarios measure the potential outcomes of the AfCFTA, ranging from one (least impact) to four (greatest impact). “While there are differences in gains, all African countries are better off with regional integration than without,” Morsy said. He said current levels of growth were not adequate to generate jobs for millions of unemployed Africans, but regional integration could stimulate the growth needed to make a dent in unemployment, adding that Africa needed to grow between 4% and 6% in order to turn the tide. The Outlook predicts that Africa can add 4.5% to its GDP, provided that governments do away with bilateral tariffs and non-tariff barriers and keep rules of origin simple. The launch included a panel discussion by Finance and Economic Planning Ministers, who are also Governors of the Bank. Aïchatou Kané, from Niger, said the Economic Community...

African leaders on Wednesday underscored the urgent need to fast-track the continent’s regional integration process in order to accelerate Africa’s economic transformation. The call was made at the opening ceremony of the African Development Bank’s (AfDB) 2019 Annual Meetings, in Malabo, Equatorial Guinea, with the theme: “Regional Integration for Africa’s Economic Prosperity.” “Apart and divided, Africa is weakened. Together and united, Africa will be unstoppable,” the Bank’s President Akinwumi Adesina told delegates at the packed Sipopo Conference Center. Adesina urged African governments to work toward the elimination of non-tariff barriers. “Pulling down non-tariff barriers alone, will spur trade by at least 53%, and potentially double trade,” he said. The opening ceremony was presided over by the host nation’s President Teodoro Obiang Nguema Mbasogo. Also in attendance were King Letsie III of Lesotho; President Félix Antoine Tshisekedi of the Democratic Republic of Congo; and Ambrose Mandvulo Dlamini, Prime Minister of eSwatini. High-level government officials from Rwanda, Cameroon, the Central African Republic, and Côte d’Ivoire were also present. In his opening speech, President Obiang Nguema Mbasogo recalled that Equatorial Guinea, once one of the poorest countries in the world, has since been radically transformed with one of the highest per capita incomes on the continent. “For me, development is not about per capita income, it is about expanding the opportunities for the people to live a more dignified life,” Obiang Nguema Mbasogo said. “Equatorial Guinea is open for business. We are committed to regional integration for shared prosperity. We count on the...

East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released today. It’s not clear whether they can afford it. Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as healthcare and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements.“There is a risk of rising fiscal deficits coming from the fact that many have ambitious revenue targets they may fail to meet,” said Tony Watima, a Nairobi-based independent economist. Spending will probably climb about 10 per cent in Kenya in the next fiscal year, 17 per cent in Uganda and 11 per cent in Rwanda, while it will be broadly flat in Tanzania, the nations’ respective governments have said in forecasts. While the governments forecast that revenue will increase by double digits next year, Kenya, Uganda and Tanzania all have plans to approach the debt markets to help raise the funds to finance their deficits.In Kenya’s case, the nation will borrow about Sh607 billion ($6 billion) locally and internationally in 2019-20, according to Treasury Secretary Henry Rotich.GDP in East Africa will probably expand 5.9 per cent in 2019 and 6.1 per cent in 2020, according to the African Development Bank, making it the fastest-growing region on the continent. Economic expansion in Kenya, Tanzania, Uganda, Rwanda and Burundi will average a...

East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released Thursday. But the question many ask is whether those countries can afford it. Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as health care and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements. “There is a risk of rising fiscal deficits coming from the fact that many have ambitious revenue targets they may fail to meet,” said Tony Watima, a Nairobi-based independent economist. Spending will probably climb about 10% in Kenya in the next fiscal year, 17% in Uganda and 11% in Rwanda, while it will be broadly flat in Tanzania, the nations’ respective governments have said in forecasts. While the governments forecast that revenue will increase by double digits next year, Kenya, Uganda and Tanzania all have plans to approach the debt markets to help raise the funds to finance their deficits. In Kenya’s case, the nation will borrow about 607 billion shillings ($6 billion) locally and internationally in 2019-20, according to Treasury Secretary Henry Rotich. GDP in East Africa will probably expand 5.9% in 2019 and 6.1% in 2020, according to the African Development Bank, making it the fastest-growing region on the continent. Kenya is implementing its so-called Big Four agenda, which will see the region’s...