Nordic countries have not only largely overcome economic problems but have also weathered the storm of the global economic crisis much better than many of their European neighbours. East African economies can, therefore, pick lessons from the economic model that has seen these Scandinavian countries succeed. Although this model followed by Sweden, Norway, Finland, and Denmark has long been conflict-ridden in some quarters, some people are exalting it while others are just trying to forget everything about it. About three weeks ago, hundreds of delegates from East Africa and the Nordic region were in Kampala for the first Nordic-East Africa Trade Summit & Expo organised by the Nordic Business Association in Uganda. The two-day event saw business leaders from Uganda, Kenya, Tanzania and Rwanda, and their counterparts from Denmark, Sweden, Norway, Finland and Iceland deliberate on business issues of mutual interest. In a pre-event meet with Daily Monitor, the communications advisor to the Nordics in Uganda, Shamilla Kara, said: "The summit will bring together businesspeople and entrepreneurs from both sides to discuss business opportunities and to build contacts for trade and investment. These will be days of great interaction, compelling content and business networking." Ms Kara's words pose the question of what these small European nations would teach the seemingly big East African countries, including the gigantic Tanzania. But she had insisted that the expo was a great opportunity for East Africa, especially Uganda. But what is this model? The Nordic model (also called Nordic capitalism or Nordic social democracy)...

Roberto Azevedo is a very optimistic diplomat. It is an attitude he has cultivated over a long period as a career diplomat representing his country, Brazil, in high-profile missions. But he will need an extra muscle to sustain his expectation of a good outcome from the World Trade Organisation (WTO) Tenth Ministerial Conference that kicks off in Nairobi next Tuesday. In his two years as the World Trade Organisation (WTO) Director General, he has used every available opportunity to exude confidence that members of the trade organisation will finally end a trade dispute that has pitted rich nations and poor nations since 2001. His optimism will be severely tested in the face of a possible explosion of the organisation that he took over leadership in 2013. An explosion because both rich and poor nations are increasingly losing patience with the WTO as a platform to make global trade serve or protect their economic interests. The heart of the disillusionment with the WTO is the obstinate refusal by rich nations which include the US, Canada, Japan and European Union to abolish trading policies in agriculture and food security, and intellectual property rights that give them advantage over poor nations. The negotiations to end these trading practices are referred to as the Doha Development Agenda or simply the Doha Round because they started in Doha, Qatar in 2001. Developing nations want rich countries to put an end to agricultural subsidies which give their farmers an unfair advantage against those from developing countries....

Johannesburg — Africa and China have vowed to focus on industrialisation which they hope will unlock inclusive economic growth and sustainable development for the continent. The two sides believe that industrialisation, if implemented effectively, has the potential to unlock opportunities beyond borders, leading to sustained economic growth and development. While Africa has experienced sustained economic growth above 5% over the last decade - with some countries above 7% - the contribution from industrialisation was minimal. Industrialisation is closely linked to infrastructure development and job creation and has been identified as a precondition for Africa to achieve inclusive economic growth. In his address during the China-Africa Business Forum held during the Johannesburg Summit of the Forum on China-Africa Cooperation (FOCAC), President Jacob Zuma said Africa is ripe for industrialisation. "The truth is that Africa is rising and Africa has a bright future. It all depends on all of us here to make things happen," President Zuma said. Africa's growth has been attributed to the increasingly sound macro-economic environment with low government debt, rising domestic resource mobilisation and reduced inflation rates. The consumer market in the continent is said to be rising in line with its growing population while the environment for doing business is steadily improving in light of successful remedial actions in governance and economic management. The rollout of technology and innovation is also improving the access to financial services. This is in addition to the abundance of natural resources. Over the past five years, 30% of global oil and...

Across East Africa, something wonderful is happening. Technology is monetising people's lives especially in the rural areas, at a rate totally unheard of before the coming of the mobile phone. When someone uses their phone to either send or receive money, the networks are happy, the banks are happy and the customer is happy. More important financial inclusion is expanding which is always good for an economy, because it also encourages savings. Now cross-border mobile money services are helping to rapidly demystify the whole concept of regional trade. With greater financial inclusion comes more business and consequently general prosperity. The East African Community governments should also be commended for encouraging financial inclusion. According to the World Bank, an estimated two billion working-age adults - more than half of the world's total adult population - do not have an account at a formal financial institution. Financial inclusion efforts ensure that all households and businesses, regardless of income level, have access to and can effectively use the appropriate financial services they need to improve their lives. Currently, the world's poor live and work in what is known as the informal economy. Even though they have little money, they still save, borrow and manage day-to-day expenses. However, without access to a bank, savings account, debit card, insurance, or line of credit, for example, they must rely on informal means of managing money. This includes family and friends, cash-on-hand, pawn-brokers, moneylenders, or keeping it under the mattress. Sometimes these choices are insufficient, risky, expensive,...

What is the future of the WTO? Will the Doha Round survive? How can trade help develop the world’s poorest nations? Why does Africa import 83% of its food? These are some of the big issues to be explored at the Trade and Development Symposium (TDS) in Nairobi, Kenya, 14th to 17th December. TDS will run in parallel with the WTO’s 10th Ministerial Conference and offers a unique and vital platform for wider discussions that wouldn’t be possible in the confines of the WTO negotiations. TMA is a strategic partner for TDS and will host and lead in a number of discussions related to trade. With more than 1500 participants, TDS 2015 will be the biggest ever gathering of trade experts in the world. [caption id="attachment_10990" align="alignleft" width="600"] ICTSD fellow Amb. Darlington Mwape addresses the press in Nairobi. “There have been benefits for Africa and Least Developed Countries in the lifespan of WTO. For example the OSBP made possible by WTO.”[/caption] They will be joined by WTO trade ministers and their delegations, representatives from the private sector, NGOs, the United Nations, the World Economic Forum, the International Trade Centre, the World Bank, senior academics, think-tanks and thought leaders. In addition to TMA experts other, Notable names that will talk trade at TDS include: Akinwunmi Adesina, President of the African Development Bank Ambassador Amina Mohamed, Ministry of Foreign Affairs and International Trade, Kenya Roberto Azevêdo, Director General of the World Trade Organisation (WTO) Dr. Richard Sezibera, Secretary General of the East African...

China is being coy about the navy installation it is setting up in the East African country of Djibouti, referring to it simply as a resupplying position for its ships participating in United Nations anti-piracy missions. But whether it is to be called an outpost, a base or some other term, there is no escaping the symbolism and meaning. The historic role of the Chinese military has been to protect borders and territory, yet the Horn of Africa nation is more than 7,700km from Beijing. To rivals like the United States and Japan, such a facility could readily be viewed through the lens of hegemonic intentions. President Xi Jinping (習近平 ) has made no secret of his plans for the People’s Liberation Army. In a speech to senior military officers last week outlining a restructuring of operations, he said he wanted to “build a robust national defence and a strong military that corresponds to our country’s international stature and is adapted to our national security and developmental interests”. A white paper earlier this year outlined ambitions for China to become a global maritime power. Djibouti, adjacent to waters through which billions of dollars in Chinese trade and resources pass and on a continent where there is no greater trading partner and investor, is an ideal location to pioneer such aspirations. Djibouti, a poor country of 900,000, gets a sizeable income from renting military bases. The country’s strategic location, near sea lanes between Asia and the Middle East and Europe, and...

Kigali — Citizens of the region will benefit a great deal from the facilities offered by the One Stop Border Posts (OSBPs) system in the East African Community Partner States, but there are still technicalties holding back full implementation. According a report by a committee set up by the East African Legislative Assembly (EALA), where the facilities are already running, there is free movement of persons and a faster flow of trade between the respective states. The report was adopted by the House during their sitting in Kigali last week. The regional legislators are now calling for the fast-tracking of all remaining works of the OSBPs to allow its implementation for further integration. During debate, at one stage Shyrose Bhanji said she was concerned with the slow implementation of the decisions of the House and these were being overlooked. "I had hoped to hear there is 100% implementation of the OSBPs. The reasons given for the delay are not good. Where is the problem Honourable Speaker? The process of getting the Bill has been costly. It is important that it is effected," she said. It was agreed that it is key for the assent of the OSBP Bill, 2013, in the Partner States to be finalized to give it legal effect in the entire region. According to release fromthe Secretariat, members were informed that Partner States are implementing the OSBP Initiatives bilaterally as they await for completion of the Assent process. At the moment, the Bill which was introduced by...

Rwanda’s push to overcome international bias over the origin of its mineral exports has been hampered by the reluctance of regional countries to implement a regional mineral certification mechanism, experts say. The certification is aimed at curbing the illicit flow of “conflict minerals,” including tin, tantalum and tungsten (the 3Ts), which are Rwanda’s principal mineral exports, and gold. Twelve member states of the International Conference on the Great Lakes Region (ICGLR) agreed to a deadline of December 2015 to put in place requirements for the mechanism. Last week, the ICGLR held a meeting in Kigali where it lobbied member states to hasten implementation of the regional certificate mechanism, in order to boost its value on the international market. “ICGLR has developed a strategy that addresses cross border smuggling and levies uniform mining procedures across the region. All countries should feel the same pressure in implementing this and they should learn from the experiences of those that have done their best to put the mechanism in place,” William Aliga, chairman of the ICGLR Regional Committee on the Regional Initiative on Natural Resources, said. Partnership Africa is working with Kenya, Zambia and Tanzania to bring them on board. “We all know that December 2015 will come and go and the member states will not all have implemented the ICGLR Mineral Certification Mechanism, and then they will have to ask for an extension,” Joanne Lebert, executive director of Partnership Africa Canada said in an interview. “If the regional certification mechanism is fully implemented,...

Multinationals operating in Kenya, Tanzania and Uganda will be among the first in Africa to feel the impact of new measures to be adopted in January to curb tax losses caused by manipulation of contracts between related companies. The three countries together with Nigeria, Ghana, Burkina Faso, Senegal, Botswana and South Africa, formed a technical group that this month led to the adoption of the Base Erosion and Profit Shifting (BEPS) action by the G20, which aims to save developing countries an estimated $150 billion in tax losses, a quarter of them in Africa. “We expect to see definite improvements in revenue collection from the deterrent effect of better legislation, treaties and enhanced guidelines and transparency initiatives we are rolling out effective from 2016,” said Alice Owuor, Kenya Revenue Authority commissioner for domestic taxes. Illicit flows No reliable data exists on the extent of tax avoidance by multinationals in Kenya. However, KRA Commissioner-General John Njiraini reported in September 2013 that an audit of 40 companies mainly in the horticulture sector had reversed losses of $80 million into profits that yielded more than $40 million in tax revenue. Conservative estimates from Global Financial Integrity (GFI), a US illicit flows watchdog, has estimated Kenya’s transfer pricing-related tax losses at $115 million annually. Ms Owuor said KRA has since been conducting audits on transfer pricing and international tax after noticing anomalies in tax records of multinationals. “We have observed a worrying trend in statistics, where corporation taxes from companies doing business in Kenya constitute...

The quest by African countries to get subsidies on agricultural exports by developed countries removed is unlikely to be realised at the World Trade Organisation Ministerial Conference in Nairobi, after an informal session of delegates failed to close ranks on the matter. Export subsidies — including finance (credit, guarantees and insurance), food aid and state trading agencies — were seen as one of the difficult-to-negotiate areas at the December 15-18 meeting and members at the informal session in Geneva last week confirmed the sharp differences. “Three new proposals were submitted. Two were on export competition, pushed by several developed nations, and one on special safeguard measures for poor farmers made by the G-33 group, which includes India. But there was no convergence of views on these new proposals,” a WTO official in Geneva said. The European Union, Brazil and other countries tabled new proposals on export competition that included new flexibilities aimed at appeasing the United States. In the new proposals, the EU is willing to be flexible on issues like export credits and food aid disciplines in order to reach an export competition deal in Nairobi, but for Africa and other developing countries to benefit, the US now needs to make concessions on those issues as well. “Two aspects of the proposal that the US is unwilling to accept are its requirements that the maximum loan repayment for export financing for agricultural products be limited to nine months, and restrictions on the so-called monetisation of food aid,” said the...