Regional inflation rates could spike in the medium term following the sustained rebound of the price of crude oil in the international market, where it has risen from a low of $29 early this year to the current $47 per barrel. Rwanda recorded a rise in its April inflation rate to 4.6 per cent, up from 4.1 per cent a month earlier, which it blamed on rising energy and transport costs. Kenya, Tanzania and Uganda have also recorded an increase in fuel prices in the past month. The three countries saw their inflation drop in April, with Kenya’s year-on-year inflation dropping to 5.27 per cent in April, from 6.45 per cent a month earlier. Uganda’s inflation dropped to 5.1 per cent in April from 6.2 per cent in March, while Tanzania saw its April inflation decrease to 5.1 per cent from 5.4 per cent a month earlier. Rwanda’s central bank (BNR) said the country’s inflation levels experienced pressure as a result of increased transport prices after the recovery in global oil prices. Rwanda’s monthly inflation rate rose by 0.8 per cent in April, while its food prices rose by 5.6 per cent. The annual inflation rate for housing, water, electricity, gas and other fuels increased by 3.9 per cent while that for transport rose by 7.6 per cent. Last week, Rwanda’s Ministry of Trade and Industry announced an increase in the petrol pump price from Rwf826 ($1.05) to Rwf860 ($1.09) per litre, making it the highest in the region. “The...

As a Kenyan, I am happy to hear that Rwanda is not walking away from Northern Corridor SGR, but working on a plan that will concurrently rely on its good relations with both Kenya and Tanzania to advance not only its interests but also the collective interests of the whole region through the railroads. However, I would urge the Rwandan government to broadcast this position much more loudly to the world. The reason is because media outlets from various parts of the world, based on the earlier misreporting on the topic, are spreading all sorts of innuendo about the impact of the decision by Rwanda to use the Tanzanian route on the existing cordial relations among the members of the East African Community. In conclusion, I would like to take this opportunity to urge the peoples of East Africa not to lose sight of the vision and mission that led to the creation of the East African Community that is currently powering the economic renaissance of the region. Let us hold hands and march forward together in unity and fraternity. We stand to gain more from collaboratively confronting our problems than from working separately. Who knows? In the future, we could evolve into a super state out of our collaboration. We could come up with something really ingenious with which to represent ourselves to the world—something like “The United Republic of Swahili Speakers”. Imagine how incredibly beautiful that would be. We would have everything within our borders—oil, coal, diamonds, great...

The chairman of the Private Sector Federation (PSF), Benjamin Gasamagera, has encouraged Rwandan traders to look for business partnership with Tanzanians and increase competitiveness. He said this on Friday during the first Tanzania Rwanda Trade Forum (TRTF) in Kigali. “We will provide ground not only for partnerships but also possible business opportunities for both our private sector operators, facilitate joint venture opportunities and exchange relevant business information and intelligence,” Gasamagera said. “In a forum such as TRTF, we are reminded to take advantage of the region as a single market for trade and investments,” he said. Gasamagera explained that information sharing will help in managing businesses much easier with a common goal. He added that the volume of exports between the two countries will increase and conducive environments for trade will be improved. Valentine Rugwabiza, the Minister of East African Community (MINEAC), said that the two countries will continue to work very actively to remove any trade barriers. “We need to work together to become global players and shift from being domestic players. As government, we stand ready to avail any facilitation for your businesses,” said Rugwabiza. The TRTF was held under the theme: ‘Strengthening Bilateral and Trade Investment Opportunities.’ it attracted key business players from Tanzania and Rwanda’s private sectors, as well as policy-makers from both governments. Since John Magufuli was inaugurated as president last November, Rwanda and Tanzania have made significant steps to improve bilateral relations. At a recent press conference in Kigali, president Kagame was asked about...

The local private sector has for the past many years complained about the numerous non-tariff barriers (NTB) along the Central Corridor, saying this was affecting their businesses and competitiveness. However, with the recent commitnent by the governments of Rwanda and the Republic of Tanzania to renew and to strengthen bilateral and economic ties, the situation is expected to improve. The Central Corridor is key to Rwanda as it covers a shorter distance to the sea port of Dar es Sallam compared to Mombasa port on the Northern Corridor. The route has hitherto been chanracterised by many NTBs, forcing Rwandan businesses to opt for the Mombasa route. The central corridor has been characterised by unharmonised trade policies, numerous checkpoints along the route, congestion at Dar es Salaam port, and theft, among others. However, as the two governments move to foster trade relations, experts are optimistic the move could turn around trade between the two countries. Experts say the development opens doors for trade partnerships and accelerated investments between the two countries. Francois Kanimba, the Minister for Trade and Industry, said that improving business and bilateral ties between Rwanda and Tanzania will increase trade flow, boosting Rwanda’s exports to Tanzania. “Indeed, this is a milestone in scaling up the campaign on trade development, trade facilitation and investment promotion,” Kanimba said. He reiterated government commitment toward strengthening relations and creating a conducive business environment to further improve trade between the two countries. The minister argued that Rwanda and Tanzania have been important trading...

Regional governments have been urged to make policies that support small-and-medium enterprises (SMEs) in the East African community (EAC) to spur the bloc’s growth, as well as bridge skills gap through knowledge transfer. Nathan Irumba, the Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI) regional executive director, said this is important for EAC to promote such regulations, arguing that some EAC countries are pursuing policies that hinder business growth, especially for SMEs. Irumba was speaking during a regional meeting to discuss ways on how EAC can attract more investments that was held in Kampala last week. The two-day forum, held under the theme’ “Making investment work for the people of East African Community”, attracted regional business leaders, government officials, SME sector players, and other stakeholders from across the region. It called for investment friendly policies, and urged EAC governments to only sign trade deals that support sustainable development and improve lives of East Africans. Addressing participants, Irumba said EAC private sector and citizens have not benefitted much from foreign direct investments (FDIs) into the region, arguing that “we don’t understand the models that shape them”. He said it is important to understand what drives FDIs, especially where trade deals are involved if the EAC bloc is to benefit from investments that come into the region. His remarks were echoed by Uganda’s representative at the East African Legislative Assembly (EALA), Fred Mukasa Mbidde, who argued that most FDIs come with ‘strings attached’. “Foreign firms sometimes invest in our countries...

The EAC Secretary General, Hon, Amb Liberat Mfumukeko, yesterday afternoon took Oath of Allegiance as an Ex-Officio of the Assembly as the 6th Meeting of the 4th Session commenced in Arusha, Tanzania. Hon, Amb Liberat Mfumukeko was sworn in by the Clerk to the Assembly in a brief ceremony witnessed by the Speaker and Members of EALA in line with the Rule 5 of the Rules and Procedures of the Assembly. The Rule 5(4) of the Rules of Procedure say in part that: “No Member can sit or participate in the proceedings of the House until the Oath or Affirmation of Allegiance to the Treaty is taken”. Rule 5(5) specifically states that “when a Member first attends to take his or her seat other than at the first sitting of a new House, he or she shall be brought to the table by two Members and presented by them to the Speaker who shall then administer the Oath or Affirmation of Allegiance”.  Hon Mfumukeko was ushered in to the House by EALA Members, Hon Isabelle Ndahayo and Hon Hafsa Mossi.  Hon,Amb Mfumukeko was appointed during the February 2016 Summit of EAC Heads of State to replace Hon, Amb Dr Richard Sezibera. Prior to the appointment as Secretary General, Hon. Mfumukeko was the Deputy Secretary General, Finance and Administration at the EAC. Hon,Amb Liberat Mfumukeko has over twenty one years’ work experience in both private and public sector.  Prior to joining the EAC, Hon Amb Mfumukeko was the Director General of the Burundi...

Ms Shy-Rose Bhanji (Tanzania) termed the speech as enlightening and said it had laid ground on a number of important matters in the integration agenda. The Prime Minister, Mr Kassim Majaliwa, delivered the State of EAC Address on behalf of the President of Tanzania and Chair of the Summit of EAC Heads of State, President Magufuli, at the commencement of theMeeting of the 4th Session of the 3rd Assembly on March 8 in Dar es Salaam. In the speech, Mr Majaliwa gave a score-card on a number of areas related to the pillars of integration. The speech highlighted the adoption of the use of One-Stop Business Posts (OSBPs) as a trade facilitation concept to minimise delays at the border posts and on the major corridors in the region. The House was informed that out of the 15 borders earmarked to operate as OSBPs, seven had been completed and four others were operating as OSBPs using bilateral agreements. Mr Abubakar Zein from Kenya reiterated that it was necessary for the region to contain corruption and remove bad governance in order to realise progress of the EAC, while Mr Mike Sebalu of Uganda termed disasters as a matter that the region must collectively address. Ms Mumbi Ngaru termed sensitisation as fundamental, adding that there was need for more adequate funding, a sentiment that was echoed by Mr Bernard Mulengani and Mr Frederic Ngenzebuhoro as well. On her part, Ms Judith Pareno said that East Africans continued to face a number of challenges...

Ethiopia has received significant investor interest from regional and emerging markets with the country registering double digit growth and implementing sound policies. Ethiopia has also been identified as the next central East African trade hub. Head of Africa Trading at Rand Merchant Bank, Roy Daniels, joins CNBC Africa to discuss this. Source: CNBC Africa

There has been a lot of hand-wringing, and even alarm, in Kenya since Uganda decided to route its oil pipeline through Tanzania and Rwanda gave up the standard gauge railway and also decided to go with a line through Tanzania. There have been cries that Kenya is being “isolated” by the other East African countries. Surprising, really, because one would have thought that after so many years as the region’s leading economy, Kenya would be a little more confident than it is sounding. But there is something else. The focus on big infrastructure has partially to do with patriotic vanity and even nationalist ego rather than how countries in the region fuel each other’s development. For example, one of the fanciest hospitals and East Africa’s first tele-medicine hospital is Butaro, in western Rwanda. It was built in one of the most far-flung parts of the country. There was criticism when the hospital was being built, with accusations that it was a “waste” to locate it in the wilderness and that it would turn into a white elephant. It might well have, except there was something no one had factored in during the plan. The hospital is not far off from Uganda, and that region of Uganda had no decent hospital. Shortly after opening, hundreds of Ugandans swept across the border, travelling to be attended to at the hospital. That, and other local factors, changed the story of Butaro. Near my hometown in eastern Uganda, a low profile Italian Catholic order...

It’s already Nigeria’s largest city, but it’s still growing – and fast. The population of Lagos is predicted to increase by an astonishing 77 people every hour between 2010 and 2030, according to United Nations data, making it the fastest-growing city in Africa. Strong economic growth, led by an oil boom, has driven the rural poor towards the city, and the population surge is also being driven by high birth rates and the return of Nigerians living abroad. Image: UN World Urbanisation Prospects, 2014 Following in second place is Kinshasa in the Democratic Republic of Congo, while Cairo completes the top three. The figures are calculated using actual population figures for 2010 and forecasts for the likely populations in 2030, taken from 2014’s UN World Urbanization Prospects report. Can the infrastructure keep up? Seventy-seven people an hour. That’s 1,848 people a day, or 12,946 a week, or 56,179 a month – roughly the equivalent of the entire population of Greenland moving to Lagos every month. The big question is whether Africa’s urban infrastructure can keep up. Lagos already suffers from electricity supply problems and its road system is nearly paralysed. However, $50 billion worth of new infrastructure is due to transform the city. A rapid-transport system, new power plants and Africa’s first suspension bridge are planned to make life easier for Lagos residents. This is a pattern repeated across Africa, as expanding populations put a strain on urban resources. However, African cities are acting to build resilience and reduce the risks associated with expanding populations. In an article for...