Africa’s internal trade deals look good on paper. A pity that they are rarely followed TWO of the largest regional trade accords in history were agreed on last year. The Trans-Pacific Partnership involves 12 countries in Asia and the Americas, and was the subject of headlines and heated debate. But most people have never heard of the Tripartite Free Trade Area (TFTA), which covers 26 African countries. It will create the biggest free-trade area on the continent, “from Cairo to the Cape”, as its supporters boast. Many in the developing world see global trade as rigged in favour of rich countries. But African regional integration is all the rage. The continent features 17 trade blocs. The TFTA aims to join up three of them: the East African Community (EAC), the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). At a conference on African business on February 20th-21st in the Egyptian resort of Sharm el-Sheikh, several leaders called for a united African market. An abundance of borders has long divided the continent’s 54 countries, limiting economies of scale. Fixing common problems such as a shortage of roads takes teamwork—and in turn should lead to more integration. Average transport costs in Africa are twice the world average and are thought to harm trade on the continent more than tariffs and other barriers. A shame, then, that regional economic deals are often poorly implemented. An African firm selling goods on the continent still faces an average...

“The Government of Japan firmly believes that in order to foster socio-economic development, the involvement of the private sector is key," Counselor Hiroyuki Kubota said. Japan has said it will support the East African Community (EAC) integration agenda as well as areas of cooperation between herself and the East African bloc. This was said at a consultative meeting between of the Government of Japan and the EAC Secretariat held at the EAC Headquarters, in Arusha. The Deputy Ambassador of Japan to the United Republic of Tanzania, Counselor Hiroyuki Kubota underscored Japan’s commitment to support and engage the EAC in various development projects and programs between the two regions. He added that engaging private sector will support development in the regions. “The Government of Japan firmly believes that in order to foster socio-economic development, the involvement of the private sector is key, and with this, the Government of Japan is committed to facilitating the involvement of the private sector in both regions to play its critical role in the EAC integration agenda,” he remarked. Appreciating Japan’s role in supporting the EAC both at the regional as well as bilateral levels, the EAC Secretary General, Dr Richard Sezibera said: “the collaboration with Japan ranks highly in terms of its contributions toward deeper EAC integration.” Among some of the projects that Japan has supported the EAC to achieve include the development of the One Stop Border Posts (both hard and soft infrastructure); development of the Vehicle Load Control and the One Stop Border...

The old East African passports will be replaced with new ones which will be recognized internationally. The phasing out will be done by Uganda’s Ministry of Internal Affairs. The current East African Passport cannot be used as a travel document outside East Africa because it does not meet the required international standards, says Jacob Siminyu, the spokesperson of the Directorate of Citizenship and Immigration. The new East African passport would be embedded with a microchip containing all the bio-data of the owner to enable the user to travel outside East Africa. The new passport will be launched on next Monday in Tanzania and all member countries of the East African Community will have to start phasing out the old East African passports. Source: Travel and Tour World

TWO OF the largest regional trade accords in history were agreed last year. The Trans-Pacific Partnership involves 12 countries in Asia and the Americas, and was the subject of headlines and heated debate. But most people have never heard of the Tripartite Free Trade Area (TFTA), which covers 26 African countries. It will create the biggest free-trade area on the continent, “from Cairo to the Cape”, as its supporters boast. Many in the developing world see trade as rigged in favour of rich countries. But African regional integration is all the rage. The continent features 17 trade blocs. The TFTA aims to join up three of them: the East African Community (EAC), the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). At a conference on African business on February 20th-21st in the Egyptian resort of Sharm el-Sheikh, several leaders called for a united African market. An abundance of borders has long separated the continent’s 54 countries, limiting economies of scale. Fixing common problems such as a shortage of roads takes teamwork—and in turn should lead to more integration. Average transport costs in Africa are twice the world average and are thought to harm trade on the continent more than tariffs and other barriers. A shame, then, that regional economic deals are often poorly implemented. An African firm selling goods on the continent still faces an average protection rate of 8.7%, compared to 2.5% overseas, according to the UN Conference on Trade and Development...

By Lominda Afedraru Farmers and traders in East Africa dealing in cereals and pulses will have to observe common standards across the region when the process of harmonising them is finalised. Each country have their own standards, which poses a challenge to trade across the region. But, in 2005, an effort to develop the same standards across the value chain for grains and pulses. This was accomplished in 2013. In total, 22 standards were developed but various stakeholders raised concerns about some of the conditions being too stringent to enable trade and, therefore, there was need for a review. Access markets Out of these, the five in focus cover maize, millet and wheat grains as well as dry beans and soya beans. Lilian Bazaale, the country manager, East African Grain Council (EAGC), during a meeting held in Kampala last week, explained that the standards for these crops vary from grade one, two, and three for crops such as maize, beans, soya beans and millet grain and for wheat grain the grades are four. The main aim of the review is to enable those involved in trade of these to access regional markets with ease. This way, the farmer will be a beneficiary because if the standards are stringent, some farmers may not be able to sell their produce. Each country is to come up with a position to be presented at a regional meeting, due to take place in Kenya, to conclude the harmonisation. Specifics EAGC, in partnership with Usaid...

By ALLAN ODHIAMBO IN SUMMARY: DRC committed to phased tariff reduction scheme, starting with an instant tariff reduction of 40 per cent which would be followed by two equal cuts of 30 per cent. The flow of goods on the Mombasa-Malaba corridor is set to ease further after the Democratic Republic of Congo (DRC) joined the Comesa free trade area (FTA), signalling intention to eliminate time-consuming customs procedures. Comesa secretary-general Sindiso Ngwenya said the DRC was committed to a phased tariff reduction scheme, starting with an instant tariff reduction of 40 per cent which would be followed by two equal cuts of 30 per cent. Kenyan traders rely on the Mombasa-Malaba road (Northern Corridor) to move produce to their key markets in the region. Landlocked states such as Uganda, Rwanda, Burundi, DRC and South Sudan also rely on the highway to receive import orders via Mombasa Port. Kenya has previously reduced administrative barriers on the Northern Corridor in part of efforts to speed up cargo flow to landlocked markets. Under FTA, a designated group of countries agrees to eliminate tariffs, quotas and preferences on most (if not all) goods. Kenya is among countries seeking to reap from the Comesa FTA model with the planned construction of a Special Economic Zone (SEZ) in Mombasa’s Dongo Kundu area. The Kenyan Cabinet last week approved the development of the SEZ that will host wholesale and retail trading, breaking bulk, re-packaging logistics, warehousing and handling and storage of goods, among others. The facility will...

By Baher Kamal and Fareed Mahdy Madrid/Cairo — In Egypt more than 1,500 public and private business delegates and state leaders agreed on 20-21 February to mobilise massive investments for the implementation of Africa's largest trading bloc whichwas created last year by 26 African countries with a total of 620 million consumers and a combined Gross Domestic Product (GDP) nearing 1,2 trillion dollars. The agreement crowned the "Africa 2016" investment forum held in the Egyptian Red Sea resort Sharm El Sheikh with the participation of business leaders together with government officials and heads of international organisations to discuss trade and investment as engines of progress. African heads of state and government from Ethiopia, Equatorial Guinea, Gabon, Nigeria, Sudan and Togo took part in the forum. No official figures relating to the amount of these investments have been released. "They (the private business sector) are ready to invest. Africa is the continent of the future, this is clear. However, there are huge hurdles that have been 'scaring' the big business pundits," an Egyptian diplomat commented to IPS on condition of anonymity. Titanic Efforts "African governments must make titanic efforts to ensure the right atmosphere needed to attract investors; adopt the necessary legislative measures to facilitate business activities; combat rampant corruption and eliminate bureaucratic obstacles; reform their financial systems to facilitate re-exporting capitals and benefits... not to mention democratic governance and preventing and ending so many armed conflicts... " Corruption comes first on the list of impediments to investment along with instability,...

ARUSHA, Tanzania, 23 February 2016 / PRN Africa / — The Secretary General of the East African Community, Amb. Dr Richard Sezibera, received credentials from the Belgian and European Union Ambassadors who have been accredited to the East African Community. While presenting his credentials to Dr. Sezibera, Belgian Ambassador to Tanzania and the EAC, H.E. Paul Cartier, said his country was keen on strengthening her relations with the Community. Amb. Cartier said Belgium wants to be part of the solution to various challenges facing the EAC. In his remarks, Amb. Dr Sezibera thanked the Belgian government for her offer of additional support to the EAC, adding that a framework of agreement for cooperation will be developed between Belgium and the Community. The Secretary General hailed Belgium for her contribution to the Partnership Fund, which has enabled the EAC to undertake programmes and projects in various sectors. The Head of the EU Delegation to Tanzania and to the EAC, H.E. Mr. Roeland van de Geer, also presented his credentials to the Secretary General. Amb. van de Geer noted that the EU's assistance to the EAC was broad covering almost all sectors of the integration agenda, reaffirming that the EU would continue providing this support. He urged the EAC to identify and prioritize the areas in which it would require increased support from the EU. Amb. Sezibera and Amb. van de Geer agreed to hold bilateral talks to re-examine the cooperation framework between the EAC and the EU with the goal of...

The instability of Burundi, the East African country fighting poverty and political crisis, has an impact on the business activities of the East Africa Community (EAC), which has tried to promote the whole region as one destination to boost tourism in East Africa. According to the chairman of the Burundi Chamber of Hotels and Tourism, Dennis Nshimiyimana, the situation in Burundi hurts regional tourism. While some hoteliers in Bujumbura, Burundi’s capital, closed down their facilities, others died violently, and still others ran away from the country. Mr. Nshimiyimana seeks support of the East African Tourism Platform (EATP) as well as the region in order to reestablish peace and resume business activities. With the shutting down of the Akilah Institute for Women, there is no university to provide education in the field of tourism and impart the required skills to people. As the hotel capacity in Burundi has come down, more investment has also become essential, according to Nshimiyimana.  The tourism activities in the country remain paralyzed because of the political instability. The turmoil in Burundi started in April 2015 following the announcement by the National Council for Defense of Democracy-Forces for the Defense of Democracy that the ruling party’s Pierre Nkurunziza, currently the president, would contest for his third term in office. Amidst opposition, Nkurunziza won the elections in July, which resulted in violent protests and political crisis. Up to now, more than 500 people died and as many as 230,000 left the country. In Rwanda alone, there are as...

KIGALI (Xinhua) -- Rwanda’s exports to East African Community (EAC) countries recorded a slight drop in 2015, according to official data released here. The exports to EAC fell 10.3 percent to 127.8 million U.S. dollars, down from 142.4 million dollars in 2014, said the country’s Central Bank 2015 Monetary Policy and Financial Stability Statement. The statement, released by the National Bank of Rwanda (BRN), attributed the decline to falling international commodity prices and shrinking exports to Burundi."Due to ongoing conflicts in Burundi and the fall of international commodity prices led to decline in value of our exports but this doesn’t cause any alarm," John Rwangombwa, governor BNR told reporters shortly after presenting Monetary Policy and Financial Stability Statement. He noted that Rwanda imports from the EAC countries, which represent 22.4 percent of total imports, decreased 5 percent from 2015. EAC is made up of Kenya, Uganda, Tanzania and Burundi. The drop in the country’s exports hinders Rwanda’s bid to increase exports and achieve its export promotion strategy. The small central African nation relies heavily on imports and it will be an uphill battle to bring down the trade deficit to manageable proportions without a strategy to increase the value of exports. Despite the fall in exports, Rwangombwa said the "positive side is that the country’s exports to EAC are diversified and most agricultural products." "The fall in export commodities will not deter the government’s efforts to increase the value of exports and boost competitiveness in the international market," he added....