Increasing political and economic integration is gaining ground in East Africa, but how are the states in this region likely to benefit from the process and what can they learn from the European model? The East African Community (EAC), which comprises Tanzania, Kenya, Uganda, Rwanda and Burundi, is further strengthening ties as the five states push towards closer integration. The region already counts as one of the most integrated areas in the world after Europe, and is largely based on other communities particularly the European Union. This also reflects a global trend, as states seek greater cross-border cooperation. Tom Ottervanger, of counsel at Allen & Overy in Amsterdam notes that there has already been significant progress: “This is the second attempt  [after the collapse of the original EAC in 1977] in East Africa to integrate their economies, although this is more than an attempt, a lot has already been accomplished.” However, he notes that although a lot has been accomplished on paper, there is still some way to go. Allen & Overy has been working with local law firms and people from different jurisdictions – including civil servants and judges – to promote integration in the East African region. However, Ottervanger states that “it is important to note that we are taking a comparative approach rather than a colonial approach in regards to what can be done in East Africa”. Economic integration is part of a wider gradual trend across Africa and Ottervanger notes that promoting further integration across Africa...

Despite being dwarfed by other African countries, the Seychelles archipelago in the western Indian Ocean is aiming to become a hub for trade between African nations, emulating small countries such as Singapore which acts as an Asian hub for the global commodities trade. Speaking at the island’s ‘African Prosperity conference’ the Chairman of the Seychelles Chamber of Commerce and Industry, (SCCI) Marco Francis said: "I have travelled to many parts of Africa. Africa has some very good structures to do business. African businessmen have the same vision as we do, they want to do business and they want to expand. Let’s partner together.” In an effort to boost trade, leaders from 26 African countries met earlier this year to sign a declaration to this end in Sharm El Sheikh, Egypt which will establish a free-trade zone spanning almost the entire eastern half of the continent. The Tripartite Free Trade Agreement (TFTA) incorporates member countries from the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC). It therefore stretches from the southernmost tip of the continent to Egypt, which is the continent’s most northern nation. Although Seychelles’ regional imports to these nations totalled as much as $214 million in 2012, this was offset by weak reciprocal exports of $3.8 million, which indicates that, if nothing else, much more still can be achieved in this area. Francis said: “We need to remove barriers…air access, vessel infrastructure to transport containers. These are...

African states must be transparent to attract foreign investment, DP World chairman says DUBAI: African nations must do more to cut red tape and develop their infrastructure if they are to attract investment and trade, DP World Chairman, Sultan Ahmad Bin Sulayem, said in Dubai on Tuesday. Addressing delegates at the Africa Global Business Forum, he said that countries must realise they are competing with states around the world for investment funds. DP World operates two ports in Algeria and one each in Djibouti, Senegal, Egypt and Mozambique. “The six terminals we have are in partnership with the governments,” Bin Sulayem said at a session on the infrastructure of trade. “It’s working.” But he said many investors were concerned about risk when considering African investments. DP World is currently in a dispute with the Djibouti government over its port concession there. Bin Sulayem said he could not discuss specifics, as the case was in arbitration, but added that the port is “contributing almost 12 per cent of GDP (gross domestic product) in Djibouti”. “The port is the most modern in Africa, with an amazing infrastructure,” he said. “Today, if we were to invest in a developed market in Europe — we just built a port in England — it may be that the return is low, but it is safe. “In Africa there is opportunity, but the risk is perceived by many people. We are investing, so we gave more courage than many people,” he added. Further highlighting the attraction...

If farmers are to feel the benefit of global exports in their pockets, brand-building exercises such as the upcoming Irish trade mission to West Africa must be matched by serious commitments from exporters to markets that will pay for a high-value food product. The value of internationally-traded agri-food products has more than doubled over the last decade and exceeds €700bn.Most of the growth in demand is taking place in emerging and developing markets where demographics, social trends and income growth are leading to increased demand for food. This particular growth trend is primarily of interest to countries that can produce low-cost food commodities. Another emerging market trend - that is of greater interest to exporters from high-cost countries such as Ireland - is the growing segment of discerning middle-class consumers, who value a high-quality and traceable product. It is important that exporters identify the kind of growth market with which they are dealing. For example, the Middle East, Africa and South Asia (MEASA) is an attractive market in terms of population and income growth. More than 75pc of the world's population growth over the next 15 years will come from this region, which has a forecasted average economic growth rate of 8.4pc, which will facilitate a 35pc increase in per-capita GDP over the next five years. However, the top-line figures are deceptive, since these figures reflect a growing population, which will continue to seek low-cost foods.Even in higher-income countries in the Middle East, the average consumer remains extremely cost-conscious, is...

TradeMark Africa has allocated Sh1.02 billion for the implementation of a WTO-backed trade improvement programme for the East African Community partner states. The World Trade Organisation Trade Facilitation Agreement (WTO FTA) focuses on ways of transporting, releasing and clearing goods and compels countries to ensure that trade concerns including taxes, documentation procedures along their transport corridors and ports are completely abolished. The pact is expected to reduce the cost of doing business and complement current efforts of eradicating trade barriers in the region. The agreement was arrived at during the 2013 WTO ministerial conference in Bali, Indonesia, where various decisions — aimed at making trade among the agency’s member states easy — were made. The decisions will also ensure food security and boost trade and overall development.“We have set aside Sh1.02 billion ($10 million) to go towards various projects that will help in implementation of the agreement which is meant to facilitate trade among East Africa partner states,” said TradeMark Africa chief executive Frank Matsaert. Matsaert revealed the figure stating that there was a need for countries to work together in getting rid of barriers that negatively affected trade in the region. Implementation of the agreement is expected to start before the 10th WTO Ministerial conference in mid-December in Nairobi. The conference takes place every two years and brings together member countries and custom unions. Members make decision by consensus. is expected that the cost of doing business between the EAC member states and other markets would reduce by almost...

Implementing the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) could increase the value of global exports by up to $1 trillion a year, according to a study. The report is the first detailed study by the WTO into the potential effects of the TFA, which aims to standardise, streamline and speed up customs processes around the world. The WTO said “fuller, faster” implementation of the agreement would increase the value generated and the TFA could result in a 0.5 per cent boost to global annual GDP. The report said developing countries would benefit most from the TFA and they are expected to enter 30 per cent more foreign markets as a result of the agreement, with a 20 per cent increase in the number of new products exported. The WTO said the agreement would help firms in developing countries enter supply chains because “timeliness and predictability in the delivery of intermediate goods are essential to the successful management of global value chains”. The report said the TFA would reduce trade costs among members by an average of 14.5 per cent and cut the risk of corruption. “There is evidence to show that the likelihood to engage in fraudulent practices at the border is higher the longer the time needed to clear goods,” said the report.“By simplifying trade procedures and reducing the time to move goods across borders, the TFA will increase the volume of goods flowing through customs, reduce the scope for corruption and increase the amount of revenues...

Four Burundi citizens and a similar number of Kenyans are in the race to succeed Dr Richard Sezibera when his term as Secretary-General of the East African Community ends early next year. Although it is Burundi’s turn to nominate a citizen to the position, the insecurity in the country could prove a hindrance, hence the Kenyans’ decision to wait in the wings. The SG’s post is rotational and the occupant of the seat is chosen by the head of state of the appointing country. Burundi’s contestants are Foreign Affairs Minister Alain Nyamitwe; former EAC deputy SG - productive and social sector Jean Claude Nsengiyumva; EAC Deputy SG - Finance and Administration Libérat Mfumukeko; and the country’s East African Legislative Assembly MP Hafsa Mossi, a former journalist. The Kenyans said to be lobbying for the position are Abdirahin Abdi, the former EALA speaker; Peter Kiguta, the EAC Director-General of Customs & Trade; EAC Deputy SG Charles Njoroge; and Joseph Nyagah, national co-ordinator for the Northern Corridor Integration Project and a former Cabinet minister. It is expected that the new secretary-general will be sworn in at the EAC Ordinary Heads of State Summit in Dar es Salaam in February and not in April as earlier thought. “The summit that was to be held this month (November 30) has been pushed to February next year to allow Tanzania’s new government under the new president John Magufuli to settle into office,” said a source privy to the arrangements. “Thus it is better for the presidents to have a new secretary-general sworn...

(Seychelles News Agency) - In spite of being small in size compared to other African countries, Seychelles an archipelago in the western Indian Ocean is aiming to become the hub for trade between African countries. The island nation wants to emulate countries like Singapore which is today the centre in Asia for trading in commodities globally. After taking steps to promote the blue economy concept on the international scene, Seychelles is now looking at bringing African nations together through trade. Speaking to the press at a meeting dubbed the ‘African Prosperity conference’ that is being hosted by the island nation since Tuesday, the Chairman of the Seychelles Chamber of Commerce and Industry, (SCCI) Marco Francis called for greater partnership between African nations. "I have travelled to many parts of Africa. Africa has some very good structures to do business. African businessmen have the same vision as we do, they want to do business and they want to expand. Let’s partner together.” Francis noted that today trade between African countries stands at only 16 percent while the majority of the continent’s imports are from European and Asian countries. As part of efforts to boost regional trade, leaders from 26 African countries joined together in June this year to sign an ambitious declaration in Sharm El Sheikh, Egypt to establish a wide-reaching free-trade zone across almost the entire eastern half of the African continent. The Tripartite Free Trade Agreement (TFTA), which incorporates member countries from the East African Community (EAC), the Common Market for...

In preparation for the 10th Ministerial Conference of the World Trade Organization (WTO) which is scheduled to take place in Nairobi-Kenya from 15-18 December 2015, the African Union held a Meeting of Trade Ministers on 20th July 2015 in Nairobi-Kenya. During the deliberations, the AU Ministers were unanimous in reaffirming the strategic objectives for an African Trade Policy, which should be based on Africa’s industrialization in order to achieve the structural transformation of African economies. The Conference was addressed by a distinguished cadre of personalities including H.E. Mrs. Fatima Haram Acyl, AU Commissioner for Trade and Industry, H.E. Mr. Mukhisa Khituyi, the UNCTAD Secretary General, Mr. David Shark, WTO Deputy Director General and, Mrs. Dorothy Tembo, Deputy Exeutive Director of the International Trade Center. The meeting was chaired by H.E. Ambassador (Dr.) Amina C. Mohamed, the Kenya Minister for Foreign Affairs and International Trade. During the meeting, the Ghana Minister for Trade and Industry, Hon. Dr. Ekwow Spio –Garbrah as is customary with his reputed leadership demeanor which excels on clear strategic vision, advocated the setting up of an unprecedented “African Trade Information Sharing Portal to boost trade and investment ties between African countries”. For a full decade and for most of the time as his Chairman, I have witnessed Minister Dr. Spio-Garbrah’s highly acclaimed professional work in the area of ICT and telecommunications during his term of office as the CEO of the Commonwealth Telecommunications Organization. It was, therefore, of no surprise that he has opted to tap his...

The East African Community (EAC) countries are leveraging on a single online visa to help increase tourist arrivals in the region, Kenyan Deputy President William Ruto has said. Ruto told a tourism conference in Nairobi that Kenya, Uganda and Rwanda, which had launched a single visa initiative earlier this year, were leveraging on technology to remove hurdles in the promotion of tourism in the region. "We are leveraging on technology to market the region as a single destination with diverse tourist attractions, and I assure our visitors that we will make it worthy their while," he said when he officiated at the opening of the 40th Conference of the Africa Travel Association (ATA). Ruto noted that the decision to issue a single visa for visitors coming to Kenya, Uganda and Rwanda was a milestone in promoting the three countries as a single tourism destination. The lack of a regional common visa has been a major drawback towards marketing East Africa as a single tourist destination. Foreign tour operators had complained of cumbersome immigration procedures at border entry points for those who wish to cover various circuits in East Africa. Sources said the five East African Community countries, which also include Burundi and Tanzania, are also in the final stages of implementing a single visa. Ruto said that efforts put into the promotion of tourism in Kenya were bearing fruit, with tourist arrivals in the country hitting 1.13 million last year, up 5 percent year on year. Source: Coast Week