President Paul Kagame has said Rwanda does not intend to remain dependent on donor support but rather aims at transitioning to sustainable development by attracting investments and doing business. The President was yesterday speaking at World Government Summit, currently underway in Dubai, United Arab Emirates, with John Defterios, the CNN emerging markets editor, on a one-on-one discussion. The global summit is dedicated to shaping the future of governments worldwide by shaping the agenda with a focus on how they can harness innovation and technology to solve universal challenges facing humanity. Kagame said the national vision is to make sure that Rwanda can stand on its feet, develop, attract investments and do business. "Donor support is not something we wanted to rely on forever, it was there to help build our foundation, institutions and different fundamentals to be in place so that we can sustain our economy based on what we can do ourselves and also within the region, for example through regional integration," the President said. The transition from donor dependence, he said would be made possible by regional integration and increased intra-Africa trade. He said so far as a result of integration, Rwanda was already experiencing increased trade within the East African Community as well as trade between the community and other regions. Under the president's leadership, Rwanda has been pursuing regional integration through multiple ways and is a member of several trading blocs including; East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA)and Economic...

The five-nation East African Community (EAC) of Kenya, Uganda, Rwanda, Burundi, and Tanzania plans to transition into a formal federation sometime in the near future, catapulting its significance from a regional to a global actor. The integrational bloc is betting that its East African Railway Master Plan, partially financed and constructed by China, will not only do wonders for its own economic cohesiveness, but will stimulate broader sub-Saharan cooperation. The vision is that this strategic blueprint will link the prospective East African Federation (EAF) together with Ethiopia, South Sudan, and the Democratic Republic of the Congo (DRC), with the ultimate goal being to bridge Africa’s transoceanic divide by connecting to the Atlantic Ocean via the Congo River and the modernization and expansion of existing railway infrastructure in Zambia and Angola. Without the emergence of a coordinated geopolitical core to manage the region’s strategic infrastructural potential, China’s investments in East Africa might disappointingly fail in their forecasted multipolar function and never become anything more significant than a few scraps of steel. The EAC plans to follow in the footsteps of other regional integrational organizations such as the EU, Eurasian Union, and ASEAN by tightening the relations between its members and formally becoming a factor in world politics. If it succeeds in forming a federation, then the newly consolidated unit would have enormous economic and geopolitical promise simply by means of its expanding population and favorable location alone. These two critical factors are maximized when one recognizes that the countries which would...

Four East African countries on Tuesday agreed to fast-track implementation of a common customs and transit cargo control framework to enhance regional trade. Commissioners-general from the Kenyan, Ugandan, Rwandan and Tanzanian revenue authorities said adoption of an excise goods management system would curb illicit trade in goods that attract excise duty across borders. They said creation of a single regional bond for goods in transit would ease movement of cargo, with taxation being done at the first customs port of entry. The meeting held in Nairobi supported formation of the Single Customs Territory, terming it a useful measure that will ease clearance of goods and reduce protectionist tendencies, thereby boosting business. Implementation of the territory is being handled in three phases; the first will address bulk cargo such as fuel, wheat grain and clinker used in cement manufacturing. ENHANCE REVENUE COLLECTION Phase two will handle containerised cargo and motor vehicles, while the third will deal with intra-regional trade among countries implementing the arrangement. The treaty for establishment of the East African Community provides that a customs union shall be the first stage in the process of economic integration. Kenya Revenue Authority (KRA) commissioner-general John Njiraini said the recently introduced customs and border control regulations were designed to enhance revenue collection and beef up security at the entry points. “At KRA, we have commenced the implementation of a number of revenue enhancement programmes particularly on the customs and border control front that will address security and revenue collection at all border points while...

Kenya Revenue Authority (KRA) Commissioner General John Njiraini said the tax body commenced the implementation of a number of revenue enhancement programs particularly on the customs and border control front. “These measures are designed to provide a sound platform to refocus Customs and Border Control operations to address security and revenue collection,” Njiraini said. The two-day meeting, also served as a peer review and learning session in operational management and on mutual interest technical issues. The revenue authorities, leadership teams, considered progress made on the Implementation of the Regional Customs Transit Guarantee (RCTG) Scheme, among other cargo transit control programmes. The cost of clearing cargo at the port of Mombasa and of transport along the Northern Corridor has gone down by 30 percent since the implementation of the East African Single Customs Territory (SCT). The revenue chiefs said a fully functional, Customs territory, will, make it easier to clear goods and reduce protectionist tendencies. This is directly geared towards enhancing the ease of doing business in the region. Across the region, the revenue bodies have committed to fast-track, the adoption of Excise Goods Management System (EGMS) solutions aimed at curbing illicit trade in excisable goods across borders. To address cargo diversion cases, the regional revenue authorities have been jointly pursuing programmes geared at reforming transit cargo clearance and monitoring processes. The East African nations are integrating their customs systems to make it possible for the three countries to have a regional bond for goods in transit. The SCT will ensure...

KIGALI, RWANDA - The Rules of Origin, which determine whether a product is produced within a particular trading partner, are pivotal to any preferential trade arrangement. “These rules of origin that we set for ourselves have the power to render the preferences useless or to actually promote industrial growth of the continent,” Emmanuel Hategeka, the Permanent Secretary in the Rwanda Ministry of Trade and Industry said last week. Hategeka was speaking at the at the recently concluded First Tripartite Private Sector Regional Dialogue on the theme ‘Towards a Private Sector position on TFTA Rules of Origin for increased Market Access’, in Kigali last week. The meeting focused more on a private sector position that is common and harmonized with respect to the tripartite Free Trade Area (FTA) Rules of Origin for increased market access. “Exporters from the different countries can only benefit from simplified rules of origin as opposed to stringent regimes of rules of origin. Such meetings therefore help discuss the crucial role of rules of origin in the implementation of the TFTA agreement,” Hategeka said. Rules of Origin are in this case intended to retain and promote production capacities in the region but not to reduce or undermine them. This is why simple and transparent rules which are easier to administer and with which it is easier to prove compliance are needed. Hategeka said, “We need Rules of origin that are going to help stimulate regional integration and facilitate the growth of companies that can compete not only...

There are still several bottlenecks preventing the East African Common Market becoming a reality. “Common market, open space can only be achieved if the environment is open. If we are going to have free flow of goods and services, mutual recognition agreements all the non tariff barriers have to be eliminated,” Stephen Ruzibiza the Chief Executive Officer of Rwanda’s Private Sector Federation (PSF) said last week. He was speaking during a dialogue organised by the East African Trade and Investment Hub (EATIH) together with PSF in Kigali. Ruzibiza said, “This is when we shall say we have a vibrant common market. The private sector here has a role in my opinion” The focus was on reviewing the implementation status of the EAC common market and customs union and explore opportunities for stronger private sector participation in rule making, implementation and monitoring of trade facilitation. Participants shared viwes on how the EATIH can cooperate with the PSF and other partners in respect to getting the EAC Common Market Protocol implemented much faster than at present. The Common Market Protocol has been in force since 2010, in line with the provisions of the EAC Treaty. It follows the Customs Union, which became fully-fledged in January 2010. Basic ingredients of the Protocol are Free Movement of Goods; Free Movement of Persons; Free Movement of Labour / Workers; Right of Establishment; Right of Residence; Free Movement of Services; Free and Movement of Capital. Ruzibiza said, “It is good that now the private sector together...

Someone once asked me what I know about Angola, and I excitedly started to list all the things I had seen, read and watched on television about this country. When I was done, she asked me if I had been to Angola and if I know these things to be true. I said I hadn't. She then remarked that it was a pity we Africans only know about each other from what we are told. I grasped the gravity of the issue at hand: That what we hear and see about our trading partners are things that may be far from reality when we visit and trade together. The visit a fortnight ago by Nigerian President Muhammadu Buhari, a year after that of his predecessor, shows the increasing realisation by African leaders of the need for intra-Africa trade and investment. While Kenya is a member of the East African Community, the Common Market for Eastern and Southern Africa (Comesa) and the Tripartite Free Trade Area, Nigeria is a member of the Economic Community of West African States (Ecowas). Both the Tripartite and Ecowas regional trading blocs constitute a market opportunity of about 950 million people out of Africa's population of 1.1 billion. Source: All Africa

ARUSHA, TANZANIA - Lead consultants on stronger East African integration, TradeMark Africa (TMA), are keen on continuing their support during the 2016-2022 period. “We are very keen on continuing supporting the Integration Agenda,” Frank Matsaert (pictured right), the TMA CEO told Amb. Richard Sezibera, the East African Community Secretary General in talks last week. He said: “With strong commitment and guidance from the Secretary General and his team, we will be able to carve out key priority activities to carry out in the next phase.” The meeting took place at the EAC Headquarters in Arusha and was attended by Dr. Enos Bukuku, EAC Deputy Secretary General in charge of Planning and Infrastructure, David Stanton, TMA Director General, and ministerial representatives from the five Partner States. Amb. Sezibera said, “I wish to express my gratitude to TMA for supporting the Integration Agenda.” “As we move more towards monetary and fiscal integration, we need to strengthen institutional capacities, nurture vibrant trade and enhance financial markets within the region,” he said. With funding from bilateral donors, especially from the European Union, TMA has been helping the EAC improve the quality of life of East Africans through competitiveness, value added production, trade and investments. TMA support, has improved the infrastructure at Mombasa Port; constructed road network between Ntungamo to Mirama Hill in Uganda and Port Reitz to Kipevu West in Kenya; improved on the customs clearance time along the borders and carried out several sensitization campaigns to small cross border traders on the opportunities...

Africa is set to become the second fastest growing continent by 2025, with GDP set to touch US$4.5 trillion Rapid urbanisation could lead to several Africans living and working in large cities. (Image source: PaulSaad/Flickr) A Frost and Sullivan report, in the form of a video titled Mega Trends in Africa, states that urbanisation, mobility, infrastructure, natural resources, telecom and inter-regional trade could make Africa the last growth frontier. According to the analysts at Frost & Sullivan, Africa is the only continent poised to achieve double-digit economic growth within the next decade and close to half the population will live in large cities. The report also said that 58 per cent of the working population will thrive in 2025 and will be mostly within the ages of 15-64. If this trend spills over into the next two decades, Africa could have a working population higher than India and China combined.Frost & Sullivan Africa operations director Hendrik Malan said, “The growth rates promised by Africa are second to that of Southeast Asia at the moment. The big advantage that Africa does have is the lack of infrastructure and the lack of legacy systems because our ability to leapfrog technologies and get access to that growth much sooner than Southeast Asia.” The analysis has also singled out certain sectors that are poised to register maximum growth and are already showing potential to ring in big numbers. Firms operating in the digital currency space, for one, are among the big gainers. By the...

Although there have challenges since the re-establishment of the EAC, there is no doubt that partner states have made considerable progress in their efforts to integrate. Integration has played a key role in growing East Africa (EA) as a region even more rapidly after the re-establishment of the East African Community (EAC). Such development in the region has been made possible through support from Trade Mark East Africa (TMA) which has particularly helped EAC reduce the transport transfer time of containers from Dar es Salaam-Mombasa port to Bujumbura, Kigali by 12%. To further discuss the way forward between the two organizations, EAC Secretary General, Amb Richard Sezibera, held discussions with TMA CEO, Mr Frank Matsaert to plan for TMA’s support for the next phase, 2016-2022. Noting the role played by TMA in developing the region, Dr Sezibera said in appreciation: “I wish to express my gratitude to TMA for supporting the Integration Agenda.” He added: “As we move more towards monetary and fiscal integration, we need to strengthen institutional capacities, nurture vibrant trade and enhance financial markets within the region.” With the aim of improving the quality of life of East Africans through competitiveness, value added production, trade and investments, the EAC, through TMA support, has improved the infrastructure at Mombasa Port; constructed road network between Ntungamo to Mirama Hill in Uganda and Port Reitz to Kipevu West in Kenya; improved on the customs clearance time along the borders and carried out several sensitization campaigns to small cross border traders...