The opening remarks by President Samia Suluhu of Tanzania during her State visit to Kenya two weeks ago were, “Mko na Uhuru upande wa Kenya na upande wa Tanzania tuko na Suluhu.” Her witty remarks were derived from the names of both presidents Uhuru and Suluhu. Translated into English her remarks meant that we have freedom in Kenya while Tanzania has the solution. The visit offers renewed hopes of increased trade between the two countries. There have been issues including allegations of discriminatory trade practices as well as non-tariff barriers to trade. It is hoped that the visit by the Tanzanian president is a sign of better times to come. World trade is moving away from protectionism and towards liberalisation which is enhanced by the removal of trade barriers between two countries, be they tariff or non-tariff. The East African Community (EAC) of which both Kenya and Tanzania are members, supports liberalisation and removal of trade barriers. The EAC Treaty and the EAC protocols especially the EAC Common Market Protocol contain very good provisions on liberalisation. However, there still exists a lot of non-tariff barriers. For the intention of the EAC Treaty to come to fruition, then these barriers to trade ought to be removed. There need to be proactive steps by all the member states to eliminate barriers and avoid trade-related spats. Each member state in the EAC is governed by national law and the regional law applies at the regional level. There may be a need to consider...

In Summary Lack of harmonised systems at the borders has been blamed for hampering smooth movement of goods. The Kenyan–Uganda borders of Malaba and Busia are among those that have witnessed prolonged delays in the wake of the Covid-19 pandemic. The East African Community (EAC) plans  to sett up a ' trade hotline' to address cargo delays at the common borders. The platform, according to the EAC secretariat will allow cross-border traders to register complaints and get prompt feedback. Lack of harmonised systems at the borders has been blamed for hampering smooth movement of goods, services and persons, leading to an increase in illicit trade which is denying member states billions in taxes. Despite the region investing in One-Stop-Border-Posts (OSBPs) with 13 currently operational, the different approach in handling Covid-19 tests, clearance of goods and movement of persons is hampering trade, the East African Business Council (EABC) warns. The Kenyan–Uganda borders of Malaba and Busia are among OSBPs that have witnessed prolonged delays in the wake of the pandemic, a move that led to increased freight costs. Pre-Covid, truck turn-around time between Mombasa and Kampala was averaging seven days, which went up to an average 14-20 days as a result of border delays. The border delays are affecting intra-EAC trade which is at a low of 13 per cent, compared to common markets such as the EU which is at 67 per cent. During a tour of the Namanga OSBP on the Kenyan–Tanzania border, the newly appointed EAC Secretary General, Peter Mathuki said the hotline is one among...

THE East African Community (EAC) Secretariat is set to avail a trade hotline providing cross-border traders with a platform to register their challenges and get instant feedback or solutions. The facility will be for all border posts of Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan as the new Secretariat administration moves swiftly to increase intra-EAC trade and get rid of unnecessary obstacles. That is in a move to resolve persistent Non-Tariff Barriers (NTBs) and reduce time spent in the movement of goods and persons, hence increasing intra- EAC trade that currently stands at a mere 15 per cent. New EAC Secretary General, Dr Peter Mathuki hit the ground running, as he officially made his maiden visit at the Tanzania/Kenya Namanga One Stop Border Post (OSBP), meeting Trade Facilitation Agencies (TFAs) and cross border traders to deliberate on sustainable solutions to ease cross border trade. And that comes merely a week after the maiden visit to Kenya by President SamiaSuluhu Hassan who held talks with her counterpart Uhuru Kenyatta, and also addressed the bicameral legislature. Among other things, the two EAC leaders agreed to remove trade barriers between the two countries. In her visit to Uganda for the inauguration of President YoweriMuseveni on Wednesday, Mama Samia was hailed by the former for allowing smooth imports of sugar from his country, as part of efforts to cement ties between them. Equally, President Museveni also applauded Kenya for doing the same. The East African Business Council (EABC) is facilitating the Public Private...

“We need capital market collaboration in EAC to develop scale,” Kiprono Kittony said via his Twitter handle adding that  Kenya and Tanzania bourses are worth a combined $63B USD,  which is 6 per cent of the Johannesburg Stock Exchange. The 18th Edition of the Capital Markets Soundness Report (CMSR) for the Quarter ended March 2021, found out that the domestic capital markets remained sound attributed to low volatility in equity prices as the economy adjusted to the Pandemic. However, its liquidity and concentration risk persisted “as reflected in the low turnover ratio and high market concentration by few large-cap companies.” The East African Community (EAC) has four operational stock exchanges; the NSE, RSE, DSE, USE in Kenya, Rwanda, Tanzania and Uganda respectively. A total of 110 companies are listed on the four exchanges; 62 on the NSE, 9 on the RSE, 21 on the DSE and 18 on the USE. “By the end of 2011, the four EAC stock exchanges commanded a combined equity market capitalisation of US$ 22 Billion for which NSE accounted for 55% with a market capitalisation of US$ 12 Billion,” according to data from the EAC portal. Besides a difference in the regulatory frameworks, EAC securities regulators and market participants have each formed regional associations to progress issues of capital markets integration. Some of them include the East African Securities Regulatory Authorities (EASRA) for securities regulators and the East African Stock Exchanges Association (EASEA) for market participants. According to the Absa Africa Financial Markets Index 2020,  Kenya was ranked 7th a...

EAST African Community (EAC) partner states are bringing in Singapore’s technology to facilitate digital trade document flows. It is in line with the work to improve the EAC’s Single Customs Territory (SCT) that goes on with the selection of a Singaporean technology provider to design the right system for the bloc. The EAC that has seen its new Secretary General, Dr Peter Mathuki take over office, launched the single customs territory in 2013. Dr Mathuki has taken over from Ambassador Liberat Mfumukeko, whose term has expired. SCT is designed to ease trade between EAC member states and trim costs by clearing shipments at their first port of arrival or departure, easing the otherwise inefficient flows of customs information that have hindered its effectiveness. Singapore’s GUUD Company, through its subsidiary -vCargo Cloud Kenya, won a tender to create a centralised platform for the SCT that will allow customs documentation to be easily shared by member states’ authorities. “As the official technology partner for the project, GUUD will now embark on creating a centralised system that will facilitate trade document flows within the region for all intra-trade, transit, as well as imports and exports,” the company said in its statement. GUUD, a group of companies launched last year by Information Communication Technology (ICT) provider - vCargo Cloud, said the platform is expected to go live in early next year. EAC Customs Information Systems Expert, Mr Gabriel Kinu said the solution will integrate mechanisms such as cargo scanners and smart gates across the...

TradeMark E.A and FSD Africa have partnered to launch a ground-breaking report on the trade finance landscape in East Africa and the Horn of Africa region. The report titled ‘Trade Finance Landscape in East Africa and Horn of Africa: Barriers, opportunities& potential interventions to drive uptake’ has highlighted limited access to trade finance as a key barrier hindering the region from playing a more significant role in global commerce. Whereas Africa comprises for 17% of the global population for instance, it only accounts for just 1.8% of global trade exports and 2.1% of global trade imports as per 2018 data. Of all sub-regions of the continent, East Africa continue to post the lowest total export trade in goods and services compared to other sub-regions, demanding concerted actions by all actors. Speaking during the launch of the report TradeMark CEO Frank Matsaert noted that the report provided a good starting point in tackling key challenges limiting the regions performance in global trade ‘The low intra-regional trade in Africa is because trading activities across the continent are inhibited, For SMEs in particular by limited access to finance but also due to high export costs, political instability, poor infrastructure and high taxation’ he observed. The study focussed on three priority sectors namely, agriculture, construction and textiles& garments and found key barriers to uptake exist both at ecosystem and trade finance provision level, underscoring the importance of holistic interventions for meaningful impact. FSD Director for Credit Markets Jared Osoro, called for a comprehensive address...

In Summary The Kenyan has taken over from Burundian Liberat Mfumukeko who handed over the instruments of office on Friday, in Arusha, Tanzania. Among his top agenda is the finalization of the comprehensive review of the EAC Common External Tariff (CET) and its uniform application in the bloc. Outgoing Secretary General Liberat Mfumukeko (L) hands over the mandate to the incoming Peter Mathuki at an event in Arusha, on April 23. Looking on is Kenya's East Africa Community (EAC) Affairs and Regional Development CS Adan Mohamed, who is also the Chairperson of the EAC Council of Ministers/HANDOUT Incoming East African Community(EAC) Secretary General Peter Mathuki has outlined priority areas he will focus on, with an achievement target of as early as end of this year. The Kenyan has taken over from Burundian Liberat Mfumukeko who handed over the instruments of office on Friday, in Arusha, Tanzania. Among his top agenda is the finalization of the comprehensive review of the EAC Common External Tariff (CET) and its uniform application in the bloc, Mathuki pledged as his five-year tenure starts tomorrow, noting that the initiative is “ long overdue.” “I will be keen to fast-track the process by end of this year,” Mathuki said in his speech during the handover ceremony. The EAC-CET comprises a triple band structure for raw materials and capital goods (0 per cent), intermediate goods (10 per cent) and final goods (25 per cent), as well as a Sensitive Items list with exceptions to the three-band rule for...

Work on improving the East African Community’s (EAC) single customs territory (SCT) has continued with the selection of a Singaporean technology provider to design a system for digital trade documentation flows. The EAC, which comprises Burundi, Kenya, Rwanda, Tanzania and Uganda, launched the single customs territory in 2013. It is designed to ease trade between the five member states and trim costs by clearing shipments at their first port of arrival or departure, but inefficient flows of customs information have hindered its effectiveness. Singapore’s GUUD, through its subsidiary vCargo Cloud Kenya, won a tender to create a centralised platform for the SCT which will allow customs documentation to be easily shared by member states’ authorities, . “As the official technology partner for the project, GUUD will now embark on creating a centralised system that will facilitate trade document flows within the region for all intra-trade, transit, as well as import and export,” the company says. GUUD, a group of companies launched last year by ICT provider vCargo Cloud, says the platform is expected to go live in early 2022. The solution will integrate mechanisms such as cargo scanners and smart gates across the trading bloc, according to Gabriel Kinu, an EAC customs information systems expert. Alban Odhiambo, senior director of trade development agency Trademark East Africa, says a central documentation platform will “not only enhance the efficiency and effectiveness of trade systems at national and regional level, but improve trust, transparency and accountability in trade and transport transactions”. “With greater...

WOMEN within the East African Community (EAC) are in need of facilitation support in cross-border trade after suffering huge loss due to lockdown and travel restrictions imposed by some regional member states. Following the outbreak of Covid-19 pandemic, some countries have restricted movements within and outside their territories, compelling women entrepreneurs to use informal routes. The Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI) Executive Director Ms Sheila Mishambi noted that the impact of Covid- 19 on cross-border women traders across East Africa had been immense, forcing closure of at least 64.2per cent of womenowned businesses. A report on the study carried out since the outbreak of the pandemic in the six member states indicates that around 21.2per cent of the sampled women reported using informal routes to circumvent the existing Covid-19 measures in EAC partner states, with several narrations of tragic conseq uences. The report released by the TradeMark Africa (TMA), the study provides lessons and suggestions to EAC governments, donors, private sector and other stakeholders for future strategies to navigate the impacts of the coronavirus, from women surveyed and interviewed. Among suggestions outlined in the report in order to mitigate the impacts of Covid- 19 are that 62.7 per cent of the women interviewed called upon the respective governments to provide loans, grants, capital and funds or get them sponsors. Other suggestions are for governments to open all borders to small cross-border traders; provide masks, sanitizers and food for those who cannot work as well...

Summary The establishment of an effective Common External Tariff in the East Africa region will lead to the exponential growth of the manufacturing sector. TheEAC is reviewing its CET that, if adopted, will steer manufacturing as we grapple with Covid-19. The establishment of an effective Common External Tariff in the East Africa region will lead to the exponential growth of the manufacturing sector. A Common External Tariff (CET) is an import tariff or rate adopted and applied by countries within a common market. This tariff is ideally imposed on imports from non-member countries, with the intention of promoting industrialisation in the common region, enhancing the economic development of member States and liberalising regional trade. TheEAC is reviewing its CET that, if adopted, will steer manufacturing as we grapple with Covid-19. It is important to highlight the progress made through trade agreements with the EAC. First is the establishment of the EAC Single Customs Territory to facilitate faster clearance and movement of cargo from the port of entry to destination. Second is the implementation of One-Stop Border Posts (OSBPs) aimed at facilitating cross-border movements through reduction of clearancetime. The third is the removal of several Non-Tariff Barriers (NTBs). However, the laxity to implement the EAC CET is straining the competitiveness of the sector and the economic growth. In essence, the current tariff undermines industrialisation by favouring imports or subsidising importation costs, resulting in reduced competitiveness of local manufacturers. This leads to a few job opportunities and decreased development and, ultimately, increased...