President Salva Kiir will join his counterparts in the East African Community during the Heads of State meeting scheduled for February 27. This week, the EAC Secretary General Liberat Mfumukeko announced that the meeting of the Presidents will be preceded by the region’s Council of Ministers on February 25. “We are also kindly proposing that the 21st Ordinary Summit of the EAC Heads of state be held on Saturday, February 27, 2021,” he revealed. In a letter addressed to all permanent secretaries and ministers for EAC Affairs from South Sudan, Tanzania, Kenya, Uganda, Rwanda and Burundi, Mr Mfumukeko said: “Following consultations with the chairperson of the Council, the SG wishes to convene the 40th Ordinary Meeting of the Council of Ministers from February 22-25, 2021 in Arusha, Tanzania.” The last meeting of the Heads of State was in May 2020, when only Presidents Salva Kiir, Uhuru Kenyatta, Paul Kagame and Yoweri Museveni attended at the backdrop of the coronavirus pandemic emergency. Tanzania and Burundi did not attend the meeting. The May Consultative Meeting discussed the Regional Response to Covid-19 and the Free Movement of Goods. Since then, trade among East African Community states has continued to decline due to the failure by partner states to agree on trade liberalisation, integration, lack of product diversification, and non-tariff barriers as hurdles to intra-regional trade despite the implementation of the Single Customs Territory. EAC trade has continued to be dominated by agricultural commodities: Coffee, tea, tobacco, cotton, rice, maize and wheat flour. Manufactured...

IS it too soon to be optimistic about an economic revival in East Africa following the devastating impact of Covid-19 on the global economy? The latest data – and the region’s continued focus on transforming its key industries, sectors and infrastructure through technology – is giving me hope that the economic outlook is brightening. Trade in East Africa has already picked up: according to the Brookings Institute, after an initial drop in trade in Kenya during the early months of the pandemic, by July domestic exports were already 12.7% higher compared to the year before. That is not to say the pandemic did not have a significant impact on regional trade. For example, Kenya’s highly lucrative cut flower industry was brought to its knees earlier this year. When Europe locked down, it forced the closure of hotels and severely restricted public gatherings including weddings and funerals. Demand for Kenya’s cut flower exports plummeted from a high of 17,600 tons in February 2020 to a low of 8,000 tons in April. Kenya is the world’s third-largest exporter of cut flowers. The industry employs 150 000 people and contributes 1% of the country’s GDP. Flower-only export farms changed their business models by switching to growing vegetables – another of the country’s major horticultural exports – and could generate some revenue by exporting to the country’s European trade partners. Local food security was also improved, as produce could be used to feed vulnerable communities struggling with the impact of the pandemic. Tea exports,...

The East African Community (EAC) economy will rebound in this year if EAC Partner States governments strengthen macro-economic policy coordination and adopt a regional coordinated approach in handling the COVID-19 pandemic. COVID-19 disruptions in 2020 provided a learning curve, on the need to have sustainable EAC regional value chains integration for the development of finished products with a view of reducing industrial and trade risks arising out of external shocks. EABC Chairman Mr. Nick Nesbitt noted that the region is projected to recover steadily but it was dependent on how the pandemic is handled. According to the AfDB East Africa Economic Outlook 2020, the East Africa region is projected to recover to 3.7 percent in the baseline scenario and 2.8 percent in the worst-case scenario under the assumption that COVID-19 would be contained in the short-to-medium term. Speaking during a media engagement on the State of EAC Economies amid the pandemic in Nairobi, Mr. Nesbitt emphasized the need for the EAC secretariat to fast-track a regional harmonized approach to promptly facilitate interventions at EAC border points to unclog trade blockages and facilitate faster clearance of goods. EABC has been emphasizing the need for EAC Partner States to harmonize COVID-19 related charges and stop testing at border posts to avoid delays in truck and cargo clearance. This year, East Africa’s inflation is projected to stand at 15.4 percent in the baseline scenario and 16.0% in the worst-case scenario. This, with Kenya’s inflation, projected to stand at 4.9 percent in the baseline...

The cost of Covid-19 testing is now becoming a hindrance to free movement of people and goods within the East African Community. EAC and the private sector are concerned that the Covid-19 related Non-Tariff Barriers (NTBs) continue to hinder cross-border trade due to different measures on Covid-19 in the region. Tests are priced differently in each EAC partner state, while containment measures vary. It costs an average of $100 to carry out Covid-19 test for visitors to the six EAC states. For instance; Tanzania and Burundi charge a standard $100 for both nationals and foreigners while the other partners’ charges vary. Harmonization calls In Rwanda, it is $50 for the test and $10 for specific logistics to the airport. Rwanda Biomedical Centre requires all travelers to wait for the results in a designated transit hotel within 48 hours. Kenya has expressed concerns that fresh NTBs could affect the African Continental Free Trade Area (AfCFTA) if measures are not put in place. “We are interested and anxious in respect to the AfCFTA. Harmonization of Covid-19 tests to facilitate free movement of people and goods is a major priority this year,” said Dr Kevit Desai, Principal Secretary, Ministry of the EAC and Regional Development. Yes, Covid-19 tests might look affordable, but different testing regimes and varied waiting time requirements have made it difficult for East Africans to move and trade freely. The lack of harmonisation of Covid-19 testing rates in accredited laboratories and uncoordinated waiting time for results is disrupting cross-border trade. “We...

Is it too soon to be optimistic about an economic revival in East Africa following the devastating impact of COVID-19 on the global economy? The latest data – and the region’s continued focus on transforming its key industries, sectors and infrastructure through technology – is giving me hope that the economic outlook is brightening. Trade in East Africa has already picked up: according to the Brookings Institute, after an initial drop in trade in Kenya during the early months of the pandemic, by July domestic exports were already 12.7% higher compared to the year before. That is not to say the pandemic did not have a significant impact on regional trade. For example, Kenya’s highly lucrative cut flower industry was brought to its knees earlier this year. When Europe locked down, it forced the closure of hotels and severely restricted public gatherings including weddings and funerals. Demand for Kenya’s cut flower exports plummeted from a high of 17,600 tons in February 2020 to a low of 8,000 tons in April. Kenya is the world’s third-largest exporter of cut flowers. The industry employs 150 000 people and contributes 1% of the country’s GDP. Flower-only export farms changed their business models by switching to growing vegetables – another of the country’s major horticultural exports – and could generate some revenue by exporting to the country’s European trade partners. Local food security was also improved, as produce could be used to feed vulnerable communities struggling with the impact of the pandemic. Tea exports, Kenya’s second-largest earner...

The East African Business Council (EABC) is urging for lowering and harmonization of COVID-19 related charges in the East African Community, in a bid to ease the cost of doing business and boost intra-EAC trade. This is set to support businesses to be more resilient and rebound amidst the COVID-19 pandemic. Currently, Covid-19 tests are priced differently in each EAC Partner States, while containment measures are varied. For instance; Tanzania and Burundi are now charging a standard rate of $100 for both nationals and foreigners while the other Partner States' charges vary. “The EAC Secretariat should fast track regional coordination and harmonisation of measures on COVID-19 for economic resilience and growth of the EAC bloc,” said Dr. Mathuki, CEO EABC. Dr.Mathuki also called for the establishment of a common quarantine period in the region and fast-tracking of the waiting time for Covid-19 test results. The lack of harmonisation of Covid-19 testing rates in accredited laboratories and uncoordinated waiting time for the test results is disrupting cross-border trade.COVID-19 related Non-Tariff Barriers (NTBs) continue to hinder cross-border trade due to different measures on COVID-19 in the region. As of October 2020, the World Bank predicted growth in Sub-Saharan Africa to fall to-3.3 percent in 2020, driven by the economic fallout of the COVID-19 global pandemic. Different preventive and restrictive measures undertaken by EAC Partner States to control the spread of COVID-19 have significantly slowed down trade, movement of persons and integration. The trickle-down effects of these measures have also been felt across...

A regional business umbrella body has called for the harmonization of covid-19 charges to boost intra EAC trade. The East African Business Council (EABC) said that in a bid to ease the cost of doing business and boost intra-EAC trade emerging costs such as the COVID-19 related charges in the East African Community should be standardized. This is set to support businesses to be more resilient and rebound amidst the COVID-19 pandemic. This comes days after Kenya’s prosident Uhuru Kenyatta called on African leaders to harmonise Covid-19 protocols. According to the president, harmonising the protocols will determine whether the African Union (AU) meetings will be virtual or physical given the challenges occasioned by the COVID-19 pandemic. Currently, Covid-19 tests are priced differently in each Partner State EAC Partner States, while containment measures are varied. For instance; Tanzania and Burundi are now charging a standard rate of $100 for both nationals and foreigners while the other Partner States’ charges vary. “The EAC Secretariat should fast track regional coordination and harmonization of measures on COVID-19 for economic resilience and growth of the EAC bloc,” said Dr. Mathuki, CEO EABC. Dr. Mathuki also called for the establishment of a common quarantine period in the region and fast-tracking of the waiting time for Covid-19 test results. Also Read: Kenya’s president calls on African leaders to harmonise Covid protocols The lack of harmonization of Covid-19 testing rates in accredited laboratories and uncoordinated waiting time for the test results is disrupting cross-border trade. COVID-19 related Non-Tariff...

The Government has started training traders in border counties to promote Cross-border trade among East African Community (EAC) member states. The training according to the government is aimed at addressing lack of information which is one of the impediments to inter-country trade. The Government is currently training more than 60 focal persons representing various business groups in Homa Bay County to achieve the objective. Speaking during one of the training in Homa Bay town, East African Community Principal Secretary Kevit Desai said the main obstacle which impedes EAC cross-border trade is lack of information by Kenyan traders. He cited lack of awareness on goods and services allowed by each country, standards and certifications required, taxes, import and export laws of each EAC member state. Desai who was accompanied by Deputy Governor Hamilton Orata said many traders had failed to undertake cross border trade due to lack of such information. “We realised that there are many traders with interest in exporting or importing goods from an EAC member state but they cannot do it due to lack of information,” said Desai. He said the government is committed to demystifying the obstacles to increase the number of Kenyan traders who want to venture into cross-border trade. The efforts also include opening more business opportunities and harmonising legal restrictions to enhance freedom in trade. “The cross-border trade creates markets for a number of goods produced locally,” he said. Orata said the county government’s department of trade will continue training more traders on the...

The Rusumo OSBP is a strategic border point for the EAC as it accounts for over 80% of imports into Rwanda through the Dar-es-Salaam port via the post. The East African Business Council (EABC) is urging for the harmonization of inspection charges by Trade Facilitation Agencies along the Rusumo OSBP, (Rwanda-Tanzania) which it said is increasing the cost of doing business. The current USD 35 being levied on each truck entering Rwanda, as facilitation fees for accommodation and refreshments for truck drivers, in COVID-19 isolation centers is likely to adversely affect the cost of doing business. Instead, we should make use of the existing GPS monitoring, which was set to replace testing of COVID-19 at the border points. The position follows EABC’s visits at the Rusumo One-Stop Border Post (OSBP) today, aiming at seeking sustainable solutions to issues hampering trade EAC across borders. In a meeting with the Rusumo Joint Border Management Committee (BMC), the business community also urged for harmonization and reduction of quality inspection fees charged on goods by the Food and Drugs Authority in Rwanda and fast-tracking the issuance of chemical permits by Tanzanian Authorities to reduce transit time at the border. The meeting also appealed to all the EAC Partner States to expedite harmonization on issuance, recognition and use of national identity cards as travel documents in a bid to facilitate cross border trade. The Rusumo OSBP is a strategic border point for the EAC as it accounts for over 80% of imports into Rwanda through...

THE East African Women in Business Platform (EAWiBP) has partnered with East African Community (EAC) Secretariat to launch the project on value addition for increased market access in the Moringa products. The project is being funded by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through the Intra-Regional Trade Facility Initiative (IRTF). The EAC Secretariat Principal Gender and Community Development Officer, Ms Generose Minani said the East African Community Treaty and 5th EAC Development Strategy outline EAC commitment in promoting women in socio-economic development and in business. “The EAWiBP project on value addition for increased market access in the agro-processing sector, connecting and linking women in moringa business across the three EAC Partner States of Tanzania, Uganda and Kenya, contributes directly to this goal,” she said. The training workshop held in Dar es Salaam recently included women in the moringa value chain from Tanzania, Kenya and Uganda on branding, packaging and standard certification. The project engages and supports women in Moringa production and trade and focuses on improving competitiveness and strengthening value addition for moringa products for easy market access. “The EAC has developed a policy framework to promote the participation of women in intra-regional trade, such as the EAC Gender Policy 2018 and the draft regional strategy for promoting women in business for socio-economic development, 2015 – 2025,” said Ms Minani. EAWiBP Chair Person Ms. Angela Begaine, said as a result of the implementation of this project, national associations of moringa producers and traders had been established in Tanzania (Tanzania...