The value of inter-regional trade among East African Community (EAC) member states has reduced to Sh523.5 billion in 2015. EAC, Labour and Social Protection Cabinet secretary Phyllis Kandie said the value stood at Sh595.4 billion in 2013. She attributed the decline to weak capacity within individual EAC partner states to resolve most of the Non-Tariff Barriers (NTBs). The CS said this in a speech read by the principal secretary, Betty Maina at the launch of the Regional Market Scorecard 2016. “The scorecard points to the existence and emergence of several NTBs within the partner states, and the slow pace at which their elimination was being executed, subsequently undermining intra-EAC trade,” Kandie said. The scorecard facilitates implementation of the Common Market provisions while at the same time identifying obstacles and recommending interventions to mitigate barriers. She said non-recognition of EAC Certificates by member states was a protectionist approach that denied the business community access to the EAC market. The Scorecard 2016, launched in Kampala, shows that Kenya, Uganda, Tanzania, Rwanda and Burundi still run their trade as separate and distinct markets, keeping their economies small and disconnected due to several bottlenecks in regulations. This, she said, was fuelled by failures of individual states to lift legal barriers, for example, refusal to recognise business certificates from other EAC members and double taxation. EAC presidents have signed a treaty that gives EAC countries freedom of movement of goods, labour, services, and capital. The protocol was signed on November 20, 2009 and came into...

The East African Community’s (EAC) push towards establish a common market is under jeopardy as partners states continue to impose restrictive trade terms. This has seen the value of trade diminish in the last three  years, with the Kenyan government raising concern over introduction of protectionist laws that threaten full market integration. East African Community and Labor Cabinet Secretary, Phyllis Kandie said on Tuesday the latest trend is denying the business community prospect of an enlarged EAC market. She made the remarks during the launch of the East African Community scorecard whose aim is to facilitate implementation of the provisions of the Common Market while at the same time identifying obstacles and recommending interventions to mitigate barriers to the implementation processes. The EAC common market protocol has been in place since 2010 with the aim of deepening regional trade. However, the five member states have appeared to read from different scripts in the recent past casting doubts over the strength of regional unity. Trade within the EAC, Ms Kandie said, had been on a steady decline from Sh593.6 billion in 2013 to Sh522 billion as of 2015. The East African community secretariat has launched a common market integration scorecard aimed at identifying areas holding back creation of a strong regional market. The World Bank’s Trade and Competitiveness Manager for East Africa Catherine Masinde said the emergence of new restrictive measures in free movement of goods, capital and people, contradict earlier progress and erasing earlier gains already recorded. “Attracting investment requires...

The East African Legislative Assembly (Eala) sits in Rwanda this week for its second meeting this year. The meeting started yesterday in Kigali and comes barely a month after the one held in Kampala, Uganda. It is worth noting that the Kigali sessions have coincided with the release of the East African Common Market Scorecard 2016. The document, whose findings representatives to the regional body are likely to find troubling, was released in Dar es Salaam last Wednesday. It paints a worrying picture of the commitment of the governments of Tanzania, Uganda, Kenya, Rwanda and Burundi in moving the key protocol forward. It is important to note that the report is a review of the progress made so far in entrenching the Common Market agreement, a year after it came into effect. Findings show that the EAC is still synonymous with trade restrictions. All countries are said to be dragging their feet in meeting agreements in the free movement of goods, services, people and capital. Even more worrying is the fact that Tanzania and Kenya, the two leading economies, were found to have introduced new barriers to trade, reversing significant progress that helped move the countries forward towards becoming a truly integrated market of more than 120 million people. These countries still treat people from elsewhere within the bloc as foreigners, while some bar residents from investing in capital markets within their jurisdiction. Regional investors seeking to open shop in either of the markets have found restrictions and hurdles that...

To develop effective trade patterns, Africa must embrace structural and regulatory reforms and enhance financial integration to accelerate efforts that have led to increased exchanges with emerging countries in the rest of the world and between its own countries and regions. African countries must foster macro-economic stability and improve the investment environment to strengthen the role of pan-African banks in facilitating trade finance and boosting capital markets. Success in stimulating trade and growth depends on the policy and investment climate, depth of financial integration and commitment to reform. Africa’s trade with the rest of the world has remained high, except with the United States. From 2000 to 2008, Africa’s trade increased by an annual average of 16%. Because of the 2008-9 global financial crisis, trade fell sharply by 24% from that period. Since 2010, Africa’s exports have recovered, growing by an annual average of 8,5%. Trade with the United States has persistently declined, however. In 2015, trade with the United States fell to $70,5 billion from a peak of $ 124,6 billion in 2011, an 11% decline. Historically, oil, gas and petroleum products have dominated US imports from sub-Saharan Africa. In 2007, these accounted for 93% of US imports. By 2013 the figure had declined to 67% as the United States stepped up its campaign for energy self-sufficiency and increased production of domestically produced oil to avoid imports. Africa’s exports to emerging economies are dominated by China and mainly comprise oil, metals and other primary products. This exposes the continent...

The East African Community has developed a new scorecard to monitor progress and address challenges facing integration of the five-nation bloc. Launched on Monday, the EAC Common Market Scorecard 2016 will focus on the progress made towards the implementation of free movement of goods, capital and services, and identifies a number of barriers to intra-regional trade. It further recommends a raft of measures for individual partner states meant to promote regional prosperity. This is likely to boost the seven year-old East Africa Common Market under the EAC Treaty, whose implementation has been slowed down by noncommittal member states and non-tariff barriers. The World Bank and Trade Mark East Africa supported initiative follows up on the first scorecard developed in 2014. It focuses on monitoring and stimulating implementation of the freedoms and rights enshrined in the EAC Common Market Protocol. They include free movement of goods, persons and Labour. It also paves the way for the right of establishment, residence, free movement of services and free movement of capital. East African Community and Labour Cabinet Secretary Phyllis Kandie expressed concern over the steady decline in intra EAC trade, whose value dropped to $5.1 billion (Sh523.5billion) in 2015, from $5.6 billion (Sh574.8 billion) in 2014 and $5.8 billion (Sh595.4billion) in 2013. She attributed the decline to “weak capacity within individual EAC partner states to resolve most of the non tariff barriers”. Kenya’s EAC Integration Principal Secretary Betty Maina called for renewed efforts in promoting intra-EAC trade. The region has a market of...

It started off in December as an unexpected question from a stranger. I had just made a brief stopover at Nyamasaria in the outskirts of Kisumu town when a man waylaid me. “Where do you offload next? Well, being a rural area, ignoring people just because they don’t look familiar is out of question. So the man’s intrusive question became a natural talking point the moment I crossed into a makeshift eatery in the area. And true to village wisdom, I was in a school of sorts, listening to strange tales and gathering story leads. First, the man had a perfect sense of what he was talking about, only that he had mistaken me for a truck driver after I parked at the wrong place. Two, he could be hinting that some truck drivers offload untaxed imports at undesignated places from where ‘trusted agents” collected them. Because nearly every speaker seemed to have just a fleeting sense of the subject matter, I would still have brushed them off as heresies had it been for news heard previously. There were reports early last year that cars bearing Uganda registration numbers were being seized in western Kenya by police and customs officials. The agencies never quite made public what they gathered during the crackdown launched early last year. However, if cars in question were imports, as local dealers thought, then somebody apparently diverted them in the fashion suggested by the stranger in Kisumu. Claims of sugar, rice or cement destined for landlocked...

Dar es Salaam. The World Bank Group says it will support Tanzania’s industrialisation by focusing on deepening the EAC Common Market which is crucial in expanding the market for the manufactured goods. Steven Dimitriyev, World Bank Lead Private Sector Specialist for Tanzania said last week that if well utilised the East African Common Market can serve as a crucial market for the country’s industrial goods and services but restrictions remain that make trade in the region more difficult. And that is why the WB and other partners such as TradeMark Africa are ready to help Tanzania and other EAC partner states to work on all those issues that still hinder the full implementation of the Common Market protocol. “Our reasoning is that industrialising the Tanzanian economy will be achievable only if the EAC market becomes easily accessible for Tanzanian goods, services and labour which can be exported and traded across the region, on account of the large size of the market and the opportunities it presents for trade and business development,” Mr Dimitriyev, who was reacting to the Common Market Scorecard 2016 that indicated that EAC partner states still lag behind in some key aspects of integration, said last Wednesday. He added that the WB, therefore, intends to support EAC trade integration by including it in its package of assistance to Tanzania’s second Five Year Development Programme, which prioritizes industrialization as the approach to creating large number of new and better jobs for the population, especially the youth. The EA...

Tourism between East Africa and the granted Kenya’s Jomo Kenyatta International Airport as Category One status is expected to herald the new beginning of direct flights to America from Nairobi, with a new chapter of growth in regional tourism. After Jomo Kenyatta International Airport (JKIA) won Category One status from the United States Federal Aviation Administration (FAA) last month, there are new hopes heralding East African tourism, looking for faster growth through the Kenyan entry point. By attaining the highest International Aviation Safety Assessment status, Kenya is now standing as East Africa’s aviation hub for American tourists booked to the East African Community (EAC) member states most of whom are lacking key tourist services. Kenya’s Transport Cabinet Secretary, James Macharia, was quoted by The EastAfrican as saying that Kenya Airways and other interested local operators will fly directly from Kenya to the United States once the necessary approvals and last point of departure (LPD) rights are granted. Mr. Macharia said that with the attainment of Category One status, Kenya Airways will immediately apply for approval to codeshare with US airlines while concurrently pursuing approval for direct flights. RwandAir, the other major airline in the EAC says going through Kenya is also an opportunity the airline can explore. Jimmy Musoni, the Head of Commercial Planning at RwandAir, noted, however, that they were yet to undertake a study to weigh their options. Direct flights to the US will significantly reduce the time taken between the US and East Africa to as little...

At Friday’s opening of Bank of Kigali’s service centre on Kigali Heights, I was honoured to meet several eminent gentlemen and a lady that loyally follow this column, the best motivation for any writer; they also gave me some honest feedback regarding my profile picture. “It makes you look like a giant,” said one gentleman. Disclaimer: I am only half a giant. “You actually look older in the picture,” said another gentleman. I am actually 360 months old, a long time if you are polite enough not to convert it into years. Another gentleman teased me about the green jacket and the striped shirt. The banter left me in such a great mood that I could have written a wonderful romance essay that night. To be fair, the feedback on Friday about my profile picture is consistent with what others have told me before. Pictures are lovely. They are a form of writing and a good way of advancing viewpoints. In media framing, pictures are the best tools of composition and currently, the best case study is the media’s pictorial representation of the cantankerous US President Donald Trump. Based on the feedback, I will be changing my profile picture, soon. But it is not only me with a picture to fix; East Africa’s picture of regional integration is increasingly becoming blurry as members place more focus on their respective national priorities. Originally, the picture we drew from East Africa’s rhetoric on regional integration was that member countries were harmonizing their...

Our fascination with Europe and Brexit is perhaps obscuring the two greatest changes and opportunities in global trade. These are happening neither in European nor Anglo-Saxon countries, but in China and Africa Next week Britain will host a Commonwealth Trade meeting in London. This is the time to start resetting the tone of Britain’s engagement with the world, post-Brexit. Pre-Brexit, many businesses from Commonwealth countries used Britain as a front door to Europe. The reasons for this were simple: there is a common language, a common legal system and Britain is inside the trading block. Soon Britain is to leave. What happens next? I did not support Brexit. Indeed I actively campaigned for Remain, however “Brexit means Brexit” and we must make this change work. To make Brexit work, we must now turn our minds to creating opportunities for post-Brexit Britain. Many have said that Britain can now “look outward” again and “re-engage” with the world. While Britain was neither inward-looking nor disengaged from the world, we must focus Britain in a global context, not just a European one. Our fascination with Europe and Brexit is perhaps obscuring the two greatest changes and opportunities in global trade. These are happening neither in European nor Anglo-Saxon countries, but in China and Africa. Firstly, in 2012 President Xi of China announced China’s One Belt, One Road policy, which is a massive multi-trillion dollar infrastructure and trade boosting program linking East Africa, Persia, South Asia and China, with an almost after-thought side route...