In Summary EABC Chairman Nicholas Nesbitt noted that the EAC bloc should work to attract international investors and embark on joint regional investments. The EAC Gross Domestic Product growth is projected at 3.5 per cent in 2021 and 4.7 per cent in 2022 according to the Africa Development Bank. The East African Business Council(EABC) is calling for a coordinated approach on Covid-19 measures to spur economic recovery and growth in the East Africa region. EABC Chairman Nicholas Nesbitt noted that the EAC bloc should work to attract international investors and embark on joint regional investments in the vaccine manufacturing industry for quick economic recovery. Nesbitt said that joint EAC investment offers a larger pool of capital resources, expertise and market. Low access to vaccines, slow vaccine roll-out and potentially high cost of vaccinations risk holding back the recovery of EAC economies. The EAC Gross Domestic Product growth is projected at 3.5 per cent in 2021 and 4.7 per cent in 2022 according to the Africa Development Bank. The Board directed the EABC Secretariat to champion advocacy on the adoption of open skies and One Network Area to reduce the cost of doing business in the region. Open Skies attract regional tourism and improve consolidation of EAC exports to overseas markets such as horticulture. This is critical to support the resilience and recovery of tourism, hospitality and transport sectors highly impacted by the pandemic. EAC Partner States lost an estimate of $4.2billion of international tourism receipts in the year 2020. EABC...

It is the dream of many business people to take their business across the border, and thanks to the East African Community (EAC), a regional economic community consisting of five countries, movement of people and capital is not restricted. The countries include Kenya, Uganda, Tanzania, Rwanda and Burundi. Ideally, you should be able to work or do business in any of these countries. But which is the most lucrative hunting ground for a new business? There are no straightforward answers to this question. Starting a successful business depends on a myriad of factors. However, the World Bank’s Ease of Doing Business Index together with other reports has tried to make it easier for you to make this decision. The easiest… Probably, you already know the answer. Rwanda is the easiest place to start a business in the region, ranking at position 35 in the World Bank’s Ease of Doing Business. It takes less than a day to obtain an electronic signature from the Rwanda Development Board. The e-signature contains the user name and password which are used to log into the system for the registration process. Once the account is set up, a registration number is generated to enable users to proceed to online registration. This registration number is also the tax identification number (TIN) and VAT number of the company. Online registration which is free takes a day. The documents needed for submission are duly completed online application; proof of identity for each signatory of the memorandum of association form; and the...

THE National Bureau of Statistics (NBS) is currently preparing the Harmonised Consumer Price Index (CPI) for the East African Community (EAC) and Southern African Development Community (SADC), which will determine a list of the final costs paid by consumers for items in a basket of common goods within the region. According to NBS Acting Director of Population, Census and Social Statistics, Ruth Minja, the harmonised CPI will be prepared according to terms and conditions of EAC as six countries across the region flex their muscles to seal the deal for the EAC Monetary Union protocol. “In preparing the Harmonised Index of Consumer Prices there are regulations guiding all the EAC countries on how to calculate prices of common goods, so that they remain constant from one period to another,’’ she said. Ms Minja said that Tanzania was equally doing the same in the SADC bloc, being one the member countries within the region as well. She insisted that the harmonised index for consumer prices within EAC and SADC countries is expected to be a composite measure of inflation in the regions. According to Ms Minja, since every member state has its development strategic plan based on a particular period, the CPI takes in consumer price inflation data from each member nation and weights them accordingly into an index The CPI index relies on a basket of consumer goods from both rural and urban regions of each nation. As all member states eye for the Monetary Union, the Index of Consumer...

Summary The EastAfrican has learnt that the creation of a monetary union is facing challenges. The Protocol for the establishment of the East African Monetary Union (EAMU) was signed by the heads of state in Kampala. The EAC is way behind in setting up relevant institutions to support a single currency, the most important being the East African Monetary Institute. The East African Community Council of ministers is set to meet before the end of this year to review the roadmap towards the implementation of a single currency regime after agreeing that the initial 2024 deadline was not attainable after all. The delay in implementation is set to subject regional traders and travellers to prolonged exposure to costly currency conversion transactions and exchange rate risks, which are adversely impacting the volume of intra-regional trade. EAC Secretariat Secretary General Peter Mathuki told The EastAfrican consultations on the revised timelines with the partner states are on-going with the final proposal expected to be tabled before the Council of Ministers within the next six months. “Consultations with the partner states on the revised roadmap are ongoing in which we shall form a proposal to present before the sectoral council of ministers to approve or confirm the roadmap before the end of this year,” said Dr Mathuki. The EastAfrican has learnt that the creation of a monetary union — the third pillar of regional integration after the Customs Union and the Common market — is facing challenges. This is largely due to the inability...

Foodborne diseases are thought to impose a health burden on society comparable to the "big three": malaria, HIV/AIDs and tuberculosis. Common foodborne diseases affect tens of millions of people every year. They include salmonellosis, which causes stomach upsets, norovirus, which can cause severe vomiting and diarrhoea, and listeriosis, which can cause severe infections of the bloodstream and brain. Children and people with weak immune systems are affected most. Foodborne diseases can enter the food supply chain - from the farm to our tables - at many stages. For instance, most low-income consumers source their foods from informal markets. For food to get to these markets, there are many actors involved and this makes it difficult to regulate activities. Infrastructure that supports good hygienic handling of food in these markets, such as potable water and refrigeration, is normally lacking. Meat, fish, seafood and fresh vegetables are the most risky from a food safety perspective. This is because they act as a reservoir for many pathogens and provide an excellent medium for pathogens to survive and grow. Cereals are less of a food safety risk as they are not handled multiple times, and present a less attractive medium for pathogens to survive. We wanted to know whether the COVID-19 pandemic's restriction measures were having an effect on food safety. To understand the extent of the problem in East Africa we surveyed experts on food safety in the region. The countries included in this study were all those in the East African Community (except Rwanda) along with Ethiopia. Data were collected in...

The East African Community (EAC) will this financial year prioritise harmonisation of air charges and taxes in a bid to reduce the cost of intra-EAC air travel, according to Mr Adan Mohamed, the Council of Ministers chairperson. While reading the EAC 2021/22 budget, Mr Mohamed, who is also Kenya's Minister for EAC, said the civil aviation and airports sub-sector, although there has been some delays, will focus on implementation of the EAC Upper Airspace Seamless Operations earmarked under the 2017-22 project. During this financial year, he said, the region will implement strategies that seek to reduce the cost of intra-EAC air tickets and air operations. This, Mr Mohamed noted, will be achieved through harmonisation of air travel-related charges and tax regimes, which feed into the price of air travel. EAC has one of the most expensive flight routes, with Entebbe-Nairobi taking the lead. However, despite the high cost, air travel within East Africa has been growing, rising by 3.4 per cent in the past decade against a global rate of 5.5 per cent. It is estimated that 43 per cent of air ticket prices in EAC comprise of regulatory charges and taxes, with regulatory fees accounting for up to 24 per cent. According to a research commissioned by the East African Business Council about air liberalisation, it was found that harmonisation could lead to a reduction in air fares by 9 per cent. The reduction, the report noted, would lead to a 41 per cent increase in frequencies, which in...

Tanzania attracted more citizens of other partner states to live and work within its borders in the past years, a new scorecard on the Common Market shows. The country issued 19,629 residents permits compared with Kenya’s 2,378, Uganda’s eight and Burundi’s 459. The report shows that Kenya and Tanzania issued the highest number of work permits to other EAC citizens between January 2019 and December 2020. Kenya issued 2,378 work permits to mostly Tanzanian and Ugandan nationals, while Tanzania issued 1,664 work permits mostly to Kenyans and Ugandans. Kenya, Tanzania and Burundi attracted the highest number of students from other partner states between 2019 and 2020. The Common Market Protocols (CMP) scorecard covering the period between January 2019 to December 2020 was prepared by the “31st meeting of the Sectoral Council of ministers responsible for EAC Affairs and Planning,” who met in Arusha from June 7-11 and attended by Secretary-General Peter Mathuki and all EAC Affairs ministers except Uganda’s. “The EAC has made tremendous progress under the six freedoms of the CMP. This is an indication that the Community is getting back on track,” said Dr Mathuki. “Intra-EAC trade has increased among the EAC partner states in the past 10 years. And we have no choice. That is why we are widening to include the DR Congo to become the seventh member to the EAC,” he added. The CMP, which provides for “Six freedoms” — free movement of goods, persons, capital, labour, and services; right of establishment; and the right...

THE East African Community (EAC) partner states have been encouraged to exploit the huge potential of exporting raw cotton to the global market. Kenya's Principal Secretary for EAC, Dr Kevit Desai noted that the region produces 100,000 metric tonnes of cotton, compared to an existing export potential of 400,000 metric tonnes. Dr Desai noted that EAC exports to the world market currently stands at only eight per cent, adding that to increase the volume of exports, value chains such as textiles need to be promoted to boost exports. “We need to harness science, technology and innovation to boost exports by investing in greater capacity to produce leather and textiles and turn a crop like pyrethrum into aerosols,” said the Principal Secretary at EAC Headquarters in Arusha, Tanzania. Dr Desai was of the view that increased investment in the leather and textile sectors would cater for the growing demand in the region for locally manufactured high quality clothes and leather products. The Principal Secretary, who is also the Chairperson of the Coordination Committee that brings together Permanent/Principal/Under Secretaries for EAC Affairs in the partner states, was addressing the media at the EAC Headquarters in Arusha. The PS was in Arusha to attend the 31st meeting of the Sectoral Council of Ministers of EAC Affairs and Planning. Dr Desai disclosed that intra-EAC trade currently stands at only 15 per cent that he described as being very low compared to other regional economic communities like the European Union (EU) and the Southern African...

THERE is light at the end of the tunnel for businesses across the East African region, as the East African Community (EAC) decides to revamp the EAC Private Sector Desk. The action means that businesses across the EAC region will benefit from prompt resolution of persistent trade barriers and disputes as the desk will serve as an interface between the private sector and the EAC Secretariat. The news was broken at a CEO Roundtable, with the leadership of the Secretariat vowing to promptly address issues disrupting intra-EAC trade to increase trade and investment. There have been huge challenges in ways of doing business in the region, leaving it with a trade volume of only 15 percent. EAC Secretary-General, Dr Peter Mathuki had this to say at the Roundtable: “We can increase Intra- EAC trade threefold, in the next five years if we promptly work on resolving some of the impeding Non- Tariff Barriers and consistently hold Public- Private dialogues seeking sustainable solutions to these trade challenges.” The CEO Roundtable Dinner was organized by the East African Business Council (EABC), Tanzania Chambers of Commerce, Industries & Agriculture (TCCIA) and the Zanzibar National Chambers of Commerce (ZNCC) at Serena Hotel in Dar es Salaam. Tanzania business leaders in attendance expressed their optimism on market access of their goods into the EAC region following the positive support by President Samia Suluhu Hassan and change of guard at the East Africa Community Secretariat in April. Tanzania business leaders represented by Mr Paul Koyi, President...

During the event, a real time live demonstration of driver registration and verification of EAC digital certificate at the borders Time: Zoom will be open from 12:00PM (EAT) on Tuesday 8th–September 2020 and event starts at 2.00PM. Join Zoom Meeting: Launch of EAC RECDT. Meeting ID: 834 8633 7113. Passcode: 506536  East African Community Headquarters, Arusha, Tanzania, 8th September, 2020: ​The East Africa Community Secretariat and its Partner States will hold a virtual event to officially mark the roll out of the Regional Electronic Cargo and Driver Tracking System (RECDTS) from Malaba/Malaba the border between Uganda and Kenya and Mirama Hills / Kagitumba, the border between Uganda and Rwanda, today Tuesday  8th September, 2020 at 2PM. The tracking system provides a surveillance system to monitor long distance trucker’s crew and enable contact tracing. It allows Partner States to electronically share truck drivers’ COVID-19 test results; therefore, minimizing need for multiple COVID-19 tests in a single trip. Speaking ahead of the virtual launch, the EAC Deputy Secretary General in charge of Productive and Social Sector, Hon Christophe Bazivamo said RECDTS is expected to support health related protocols and facilitate safe trade in the region. “The reliance on manual certificates and delayed test results at the borders has been the main reasons for long delays at border points”. The tracking system is expected to be used in all Partner States and will eventually be extended to EAC neighbouring countries, particularly Democratic Republic of Congo (DRC) added, Hon Bazivamo He disclosed that the European Ambassador to Kenya H.E Simon Mordue is...