In Summary The European Investment Bank (EIB) has already received a request for funding from the Kenya Ports Authority (KPA), which is being processed as a loan, while a grant is also in the pipeline. Head of EU Delegation in Kenya says the EU is interested in supporting projects at the port to increase efficiency and facilitate trade. TradeMark Africa (TMA) country director Ahmed Farah said although a final decision had not been reached, there are high level negotiations going on and was optimistic the funding will come through. The European Union is considering investing at least $200 million (Sh20 billion) on Mombasa Port projects including modernisation of berths. The European Investment Bank (EIB) has already received a request for funding from the Kenya Ports Authority (KPA), which is being processed as a loan, while a grant is also in the pipeline. TradeMark Africa (TMA) country director Ahmed Farah said although a final decision had not been reached, there are high level negotiations going on and was optimistic the funding will come through. “At the moment what we could say is that a loan of $180 million (Sh18 billion) is being processed while a grant of $20 million (Sh2 billion) is being considered. "TMA is assisting with the processing procedures and we expect a decision will be made soon,” Mr Farah. He spoke during an interview with journalists on Wednesday at the Galaxy Restaurant, Mombasa, after he led a team of EU Delegation to Kenya on a tour of Mombasa...

IN SUMMARY The European Investment Bank (EIB) has already received a request for funding from the Kenya Ports Authority (KPA), which is being processed as a loan, while a grant is also in the pipeline. Head of EU Delegation in Kenya says the EU is interested in supporting projects at the port to increase efficiency and facilitate trade. TradeMark Africa (TMA) country director Ahmed Farah said although a final decision had not been reached, there are high level negotiations going on and was optimistic the funding will come through. The European Union is considering investing at least $200 million (Sh20 billion) on Mombasa Port projects including modernisation of berths. The European Investment Bank (EIB) has already received a request for funding from the Kenya Ports Authority (KPA), which is being processed as a loan, while a grant is also in the pipeline. TradeMark Africa (TMA) country director Ahmed Farah said although a final decision had not been reached, there are high level negotiations going on and was optimistic the funding will come through. “At the moment what we could say is that a loan of $180 million (Sh18 billion) is being processed while a grant of $20 million (Sh2 billion) is being considered. "TMA is assisting with the processing procedures and we expect a decision will be made soon,” Mr Farah. He spoke during an interview with journalists on Wednesday at the Galaxy Restaurant, Mombasa, after he led a team of EU Delegation to Kenya on a tour of Mombasa...

Kampala — Cross-border trade in professional services generated a heated debate at the East African Legislative Assembly (Eala) here on Monday with the MPs insisting there were still hurdles hindering its smooth implementation as required under the Common Market Protocol. While some regional legislators said not all professionals have been covered by the Protocol, others maintained that East African Community (EAC) partner states were yet to harmonise their laws in line with adoption of common approaches on the matter. "The schedules of the Common Market in their current format are also not open for all professionals but certain sectors," said Mr Abubakar Ogle from Kenya when the House discussed the draft of EAC Cross Border Trade in Professional Services Bill. introduced by Fred Mukassa Mbidde from Uganda last year. The lawmaker from Kenya underscored the need for the House to be duly informed on the professional services which have been accepted by all the partner states and those which are still under consideration. According to the mover of the bill, the proposed legislation intends to see to it that all professionals are allowed to crisscross the region as they render their services in line with the Common Market Protocol which came into force in July 2010. But Mr Ogle said in reality each of the five EAC member countries (South Sudan is yet to be fully integrated) had its regulatory framework governing its labour market as well as the professional standards it has set which is different from fellow countries...

2016 was “annus horribilis” for the East African Community (EAC) to borrow a Latin phrase made famous by Queen Elizabeth II, the reigning monarch of the United Kingdom and Great Britain. The highs of 2015 appear to be distant memories today; the easier movement of citizens using IDs, the single tourist visa, the single customs territory, and the common market protocol were all exciting milestones along the way. The momentum then was such that any obstacle was overcome with pragmatism. When then Tanzanian president JM Kikwete seemed flat footed, the three heads of state from Uganda, Kenya and Rwanda conjured up what the media later called the “Coalition of the Willing” in a bid to further expedite projects which they viewed as helpful to the EAC integration cause. As if by divine intervention, at the end of 2015 Tanzania got a new president in the name of JP Magufuli. Almost immediately he seemed to gel with the other EAC leaders. He made quick reforms at home and simultaneously reached out with open arms to neighbouring countries in an obvious effort to mend any broken fences. Then 2016 happened. First was the summit in March that rather than bring good news, saw a conflict riddled South Sudan approved as the sixth member of the EAC. The heads of state then went on to lament the financial burden of the EAC Secretariat. Particularly, President Magufuli vowed to clean it up by reviewing its expenditure. These same sentiments were echoed by President Kagame...

Uganda’s President Yoweri Museveni is pushing for enhanced intra-regional trade as the next growth area for the six States integrating their markets under the East African Community. Speaking last week when he opened the East African Legislative Assembly’s fourth meeting in Kampala, Mr Museveni said these governments must champion the ‘Make-EAC-Buy-EAC’ to boost employment and expand value addition opportunities. “We (EAC) cannot continue to be a market for imports and must come up with policy instruments to ensure local industrial production runs at full steam in order to protect jobs and stimulate investments,” he said. President Museveni said East Africa’s high population, now estimated at 150 million people, and well-developed infrastructure portend a good future for the region. Joint projects “If there is wealth it is this 162 million people that are a wealth creator since they produce raw materials, related services and eventually consume the same goods and services,” he said. Speaker of the Eala Daniel Kidega said the assembly had made progress in enacting Bills and adopting resolutions that enhance EAC’s vision of a cohesive political, social and economic bloc. Developments in Kenya including roads upgrade, the Sh327billion railway and as Mombasa Port’s berth expansion served to enhance efficiency while reducing transport costs, he said. This should egg on Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan to pursue joint projects. Governments should work on conservation strategies while strengthening irrigation, early warning systems, research, extension and training, he said. Source: Business Daily

Trade in the five-nation East African Community bloc has received a major boost after the Finnish government gave a 9.8 million euros (about Sh1.09 billion) grant to TradeMark Africa to support its work. The funds will be channelled to initiatives that will reduce the time and cost of transporting goods, TMA said yesterday. The cash is expected to broaden TMA's regional integration programme at the Port of Dar es Salaam and key border posts along the Central Corridors. “We aim to contribute to increased trade through improvements to trade competitiveness by reducing barriers to trade and improving business competitiveness. This strategy will contribute to $10 billion (Sh104 billion) of additional trade in East Africa by 2023,” TMA CEO Frank Matsaert said. The agreement was signed in Nairobi by the Finnish Ambassador to Kenya Tarja Fernández. Finland’s strategy for development puts more emphasis on the regional economic integration. The Finnish government says it believes that supporting increased trade and helping the private sector in the region will accelerate economic growth and create jobs. “We know that the new strategy will move the region beyond the accomplishments of the past,” Fernández said. TMA aims to contribute to increased trade in Eastern Africa, both increased intra-regional trade and increased trade between the region and the rest of the world. TMA has been focusing on improved trade competitiveness through simultaneously reducing barriers to trade across Eastern Africa, enabling trade to flow through the region more efficiently. The welfare value of TMA’s trade benefits for...

Finland has granted 9.8 million Euros to TradeMark Africa (TMA) to support its work in enhancing trade across the East African Community to increase prosperity in the region. The agreement will advance common goals of increasing trade within East Africa by reducing the time and cost of transiting and transporting goods. The partnership will also support East African Community (EAC) regional trade integration. This grant is also expected to broaden TMAs regional integration program at the Port of Dar es Salaam and key border posts along the Central Corridors, and will work with EAC Member States to remove barriers to trade. The agreement was signed by the Finnish Ambassador to Kenya, H.E. Tarja Fernández and Frank Matsaert, CEO, TradeMark Africa. Finland’s strategy for development cooperation and action plan for aid for trade put more emphasis on the development of trade and regional economic integration. The Finnish government believes that supporting increased trade in the region in combination with assistance to the private sector will accelerate economic growth and jobs, with the ultimate goal of poverty reduction. Finnish Ambassador to Kenya, H.E. Tarja Fernández said: “We know that the new strategy will move the region beyond the accomplishments of the past, creating job opportunities, and opening up, until now, marginalised areas to development through interventions at various nodes of East Africa Trade Network from ports to the hinterlands. That is why we are committed to supporting the second phase of TMA’s programme.” TMA aims to contribute to increased trade in Eastern...

THE quest to bring standard-gauge rail to Africa has gained traction following an announcement from the Tanzanian government that it is seeking bidders for the construction of the final portion of the new line that it plans to build between Dar es Salaam and Rwanda, Burundi and the Democratic Republic of Congo. The railway is to be built in four phases and will give the landlocked central African countries their first through rail link to the Indian Ocean. Tanzania is the latest African country to embark on building a new standard-gauge railway. A brand new standard-gauge line running parallel to the old colonial-era railway in Kenya is well-advanced, while a Chinese-built electrified line linking Djibouti with Addis Ababa in Ethiopia was opened in October.The 2190km line, which is part of the East African Railways Master Plan to link Tanzania, Kenya, Uganda, Rwanda and Burundi, will run from Dar es Salaam to the lake port of Mwanza on Lake Victoria, following roughly the same route as the metre-gauge Tanganyika Railway built by the German colonial authorities at the beginning of the 20th century. Known after Tanzanian independence as the Central Line, the railway has suffered from a lack of maintenance in recent decades, leaving the country without reliable rail transport between its lake ports and the sea. Construction of the new railway, currently known as the SGR, will be partly financed by a $US 7.6bn loan from China’s Export-Import Bank (Exim) secured last July. The final section of the railway is...

The Communications Authority of Kenya Director General Francis Wangusi said five East African Community (EAC) member states are currently holding talks in order to expand the One Area Mobile Network to cover all the member states. Wangusi told a regional internet forum in Nairobi that current members Kenya, Uganda, Rwanda and South Sudan are in talks for Tanzania and Burundi to join them, so that all calls amongst those countries are treated as domestic calls. Wangusi said during the Internet Corporation for Assigned Names and Numbers (ICANN) Capacity Building Workshop for Africa’s Governmental Advisory Committee Representatives that an enlarged One Area Mobile Network would reduce the cost of making calls across the trading bloc. He said the direct result is that the volume of inter-country calls will increase and this will help to promote EAC regional integration efforts. Wangusi said that in order for the six-member EAC bloc to become a single network, there are some hurdles that need to be overcome. The telecoms regulator noted that Tanzania and Burundi are ready to change their legislation in order to join the regional network, in view of the numerous benefits their citizens would receive. Source: Telecom Paper

East African Community (EAC) leaders should be concerned that the economic bloc has yet to unlock the region’s potential as envisaged more than two decades ago. At inception, the EAC was expected to avoid the pitfalls that had led to the collapse of its predecessor. Regrettably, the then regional leaders chose to gloss over their differences instead of going to the core of the problems and uprooting them once and for all. The result is that the intensity of bilateral trade within the EAC – according to an International Monetary Fund (IMF) report – lags behind that within Asia, America and Europe. These regions are the gold standard towards which the EAC, and indeed Africa, should aspire. But to get there from where it is today, regional leaders have to redefine their goals and agree on policies that will get them there. For starters, the leaders need to hold open dialogue with their manufacturers and traders to find out the reasons behind the latter’s importation of goods from Asia when the same are produced in neighbouring countries. The importation of processed foods and beverages is especially perplexing considering that the region is awash with industries producing these. The issue of price should not be a key determinant because this can be remedied by agreeing to levy a specific tariff to keep the business within the region. Perhaps a case could be made for going back to the original agreements reached in the 1960s after Kenya, Uganda and the then Tanganyika...