Rwandan President Paul Kagame, the current chair of the organisation, has asked the EAC to put the discussion of DR Congo's membership on the agenda of the next heads of state meeting in November. The DR Congo shares borders with four of the six members of the bloc and Tshisekedi said on a visit to Tanzania -- home to its headquarters -- that he hoped membership would ease trade. "The Democratic Republic of Congo has recently requested membership of the East African Community. This will allow us to drop customs barriers and increase trade between our countries," Tshisekedi said at a dinner with his counterpart John Magufuli. "We are facing the challenge of regional integration that we must absolutely realise," he said, highlighting the need for cross-border transport and energy infrastructure. He gave his support to a planned railway linking Tanzania's port at Dar es Salaam to the eastern DRC via Rwanda -- one of several ambitious rail projects in the region. "Our countries must commit to development based on democracy and freedom so as to promote Africans so they can compete with other parts of the world," Tshisekedi said as he kicked off a two-day visit in Tanzania. Rwandan President Paul Kagame, the current chair of the organisation, has asked the EAC to put the discussion of DRC's membership on the agenda of the next heads of state meeting in November, the East African newspaper reported Thursday. The DRC is already a member of the Southern African Development Community...

East African finance ministers converged on tough taxation measures aimed at protecting local manufacturers from “unfair imports competition,” in their spending plans for the coming year, made public on Thursday. Most of the tax measures, contained in the budget statements for the 2019/2020 fiscal year, were approved during the ministers’ pre-budget consultations in Arusha in May. Higher taxation of imports is aimed at driving consumption of cheaper locally produced goods, spurring the growth of manufacturing and creating jobs that ultimately improve living standards. Proponents of the proposed measures are in line with the EAC Industrialisation Plan that seeks to transform the region into a globally competitive, environment-friendly and sustainable industrial sector that is capable of significantly improving the living standards of the people by 2032. “The recommendations aim at pushing the regional industrialisation policy, creating jobs and improving East Africans’ living standards,” said Philip Mpango, Tanzania’s Finance and Planning minister. Uganda, Tanzania, Rwanda and Kenya are focusing on improving the competitiveness of local industries by protecting them from cheaper imports through taxation and other policy measures. Despite the good intentions, experts have warned that these tax measures — which are also applicable to goods coming from EAC member states — could stand in the way of integration, as each country becomes inward-looking in a bid to build its industrial capacity. Already, trade spats, especially between Kenya and Tanzania, have seen Dar es Salaam block Kenyan products from its market. The partners have also failed to agree on a reviewed common...

Kenya’s budget is the highest in East Africa region exceeding that of Tanzania, Uganda, and Rwanda.The three nations presented their 2019/20 national budgets before respective parliaments at the same time on Thursday.Kenya’s 2019/20 budget stands at Sh3.02 trillion followed by Tanzania (Sh1.4 trillion), Uganda (Sh1.08 trillion) and Rwanda at Sh316 billion. Rwanda, Tanzania, and Uganda 2019/20 national budgets total to Sh2.8 trillion that is around Sh200 billion less Kenya’s budget. Rwanda Rwanda said its overall spending will rise 11 per cent in 2019/20 (July-June) fiscal year to Sh316 billion, while 2019 economic growth will be slower than a year earlier, its finance minister said on Thursday.The finance minister Uzziel Ndagijimana proposed that 85.8 per cent of the budget would come from internal sources, and the rest from external grants. The economy is projected to grow 7.8 per cent in 2019 from 8.6 per cent in 2018, he said. Tanzania According to Tanzania's finance minister, the country's overall spending during the 2019/20 period will rise 2 per cent to Ksh1.4 trillion. Philip Mpango, its finance minister told parliament on Thursday that the John Pombe Magufuli led government also plans to borrow Tsh2.32 trillion from external non-concessional sources.Tanzania is East Africa’s third-largest economy and is investing heavily in public infrastructure projects as it seeks to profit from its long coastline and upgrade its rickety railways and roads to serve the growing economies in east and central Africa. Uganda Uganda finance minister Matia Kasaija said the government spending is set to rise 23...

The port of Mombasa handled 29.8 million tonnes during the last 11 months, Kenya Ports Authority managing director Dr Daniel Manduku has said. Manduku said in the period between July 2018 and May 2019, the port of Mombasa registered volume increase of 1,760,166 tonnes to hit the 29,801,152 tonne mark, which is 6.3 per cent increase compared to corresponding period in 2017/18. In a statement, Manduku said the positive performance was mainly driven by containerised cargo, which recorded a positive variance of 2,057,838 tonnes, an 18.9 per cent growth. The port, which is connected to more than 80 ports globally and is served by more than 40 shipping lines, handled 1.26 million containers in the last 11 months. Manduku said the container traffic at the port of Mombasa grew from 1,114,768 Total Equivalent Units (TEUs) in the 2017/18 period to 1,261,327 TEUs in the 2018/19 calendar. “This was an increase of 146,559 (TEUs), which is 13.1 per cent growth compared to the previous corresponding year of 2017/18,” said Manduku. Import containerised traffic also posted an increase growth by 4.9 per cent to record 557,097 TEUs up from 531,204 TEUs in a similar period in 2017/18. Export traffic registered an increase of 13.9 per cent, growing to register 557,238 TEUs from 489,164 TEUs in a corresponding previous period. “The total transit cargo recorded 3,327,377 tonnes against 3,022,533 tonnes registered in the same period in 2017/18, representing volume increase of 304,844 tons or 10.1 per cent,” he said. He added: “The positive...

The Democratic Republic of Congo has applied to join the East African Community in a move that could potentially expand the boundaries of the trading bloc to the Atlantic coast of Africa. The application comes following months of talks between DR Congo President Felix Tshisekedi and Rwanda President Paul Kagame, who chairs the East African Community. Sources familiar with the diplomatic talks that preceded the formal application say most EAC member states are enthusiastic about DR Congo’s membership. The DRC officially communicated its intention to join the EAC in a letter to President Kagame dated June 8. Kinshasa said its desire to join the bloc was informed by its increasing trade ties with the region. In response, President Kagame directed the EAC Secretariat to table DR Congo’s application for discussion at the next Heads of State Summit in November. If it meets the admission requirements, members will vote on its admission. GAME CHANGER The potential membership of the Central African country is being viewed as a game-changer, given its natural resources wealth and a huge consumer market of 81 million people. It is the world’s biggest producer of cobalt, a major component in the manufacture of rechargeable batteries for electric vehicles, and Africa’s main copper producer. It also a major producer of gold, diamonds, uranium, coltan, oil and other precious metals, making it one of the most resource-rich countries in the world. DR Congo is also host to the world’s second-longest river, the Congo, vast swathes of fertile soil, potentially...

The recent ratification of the African Continental Free Trade Area (AfCFTA) has created a promising environment for economic integration of major African markets with the smaller markets and enhance competitiveness at the industry and enterprise level by exploiting opportunities for scale production, continental market access and better reallocation of resources. The eventual implementation of AfCFTA is predicated on the assumption that the reduction of tariff between African countries would increase intra-African trade by 15 to 25 percent (amounting to about 50-70 billion USD) by 2040. The intra-continental trade in Africa would create a very large single market which would allow member states to build better resilience to resource allocations and price fluctuations even as they diversify their export portfolio. However, creating a single large market will require a massive amount of physical infrastructure facilitation. The continent will see itself placed in a catch 22 situation as it will need to invest trillions of dollars in infrastructure to spur contact and build growth momentum in the region. This figure would increase if the costs associated with climate change mitigation and adaption were to be included. For the development to be inclusive, the concept will have to build beyond better harmonization and coordination of trade liberalization across Regional Economic Communities (RECs). Improved customs procedures alone will fail to stimulate the markets unless finance is made available to small and medium sized enterprises, and women entrepreneurs are given adequate resources to participate meaningfully in exports. While the continent-wide free trade agreement has been...

MALABO, Equatorial Guinea – Central Africa stands to benefit the most from the African Continental Free Trade Area (AfCFTA), data from the African Development Bank shows. Hanan Morsy, Director of Research at the Bank, revealed the findings at the launch of one of the Bank’s flagship reports in Malabo, where the African Development Bank is hosting its Annual Meetings. Mr. Morsy said Central Africa’s real income could increase by as much as 7% in one of the scenarios that researchers describe in the 2019 African Economic Outlook. By the same calculations, East Africa, currently, the star performer on the continent, would experience an increase of around 4.2%, followed closely by North Africa. The scenarios measure the potential outcomes of the AfCFTA, ranging from one (least impact) to four (greatest impact). “While there are differences in gains, all African countries are better off with regional integration than without,” Morsy said. He said current levels of growth were not adequate to generate jobs for millions of unemployed Africans, but regional integration could stimulate the growth needed to make a dent in unemployment, adding that Africa needed to grow between 4% and 6% in order to turn the tide. The Outlook predicts that Africa can add 4.5% to its GDP, provided that governments do away with bilateral tariffs and non-tariff barriers and keep rules of origin simple. The launch included a panel discussion by Finance and Economic Planning Ministers, who are also Governors of the Bank. Aïchatou Kané, from Niger, said the Economic Community...

African leaders on Wednesday underscored the urgent need to fast-track the continent’s regional integration process in order to accelerate Africa’s economic transformation. The call was made at the opening ceremony of the African Development Bank’s (AfDB) 2019 Annual Meetings, in Malabo, Equatorial Guinea, with the theme: “Regional Integration for Africa’s Economic Prosperity.” “Apart and divided, Africa is weakened. Together and united, Africa will be unstoppable,” the Bank’s President Akinwumi Adesina told delegates at the packed Sipopo Conference Center. Adesina urged African governments to work toward the elimination of non-tariff barriers. “Pulling down non-tariff barriers alone, will spur trade by at least 53%, and potentially double trade,” he said. The opening ceremony was presided over by the host nation’s President Teodoro Obiang Nguema Mbasogo. Also in attendance were King Letsie III of Lesotho; President Félix Antoine Tshisekedi of the Democratic Republic of Congo; and Ambrose Mandvulo Dlamini, Prime Minister of eSwatini. High-level government officials from Rwanda, Cameroon, the Central African Republic, and Côte d’Ivoire were also present. In his opening speech, President Obiang Nguema Mbasogo recalled that Equatorial Guinea, once one of the poorest countries in the world, has since been radically transformed with one of the highest per capita incomes on the continent. “For me, development is not about per capita income, it is about expanding the opportunities for the people to live a more dignified life,” Obiang Nguema Mbasogo said. “Equatorial Guinea is open for business. We are committed to regional integration for shared prosperity. We count on the...

East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released today. It’s not clear whether they can afford it. Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as healthcare and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements.“There is a risk of rising fiscal deficits coming from the fact that many have ambitious revenue targets they may fail to meet,” said Tony Watima, a Nairobi-based independent economist. Spending will probably climb about 10 per cent in Kenya in the next fiscal year, 17 per cent in Uganda and 11 per cent in Rwanda, while it will be broadly flat in Tanzania, the nations’ respective governments have said in forecasts. While the governments forecast that revenue will increase by double digits next year, Kenya, Uganda and Tanzania all have plans to approach the debt markets to help raise the funds to finance their deficits.In Kenya’s case, the nation will borrow about Sh607 billion ($6 billion) locally and internationally in 2019-20, according to Treasury Secretary Henry Rotich.GDP in East Africa will probably expand 5.9 per cent in 2019 and 6.1 per cent in 2020, according to the African Development Bank, making it the fastest-growing region on the continent. Economic expansion in Kenya, Tanzania, Uganda, Rwanda and Burundi will average a...

East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released Thursday. But the question many ask is whether those countries can afford it. Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as health care and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements. “There is a risk of rising fiscal deficits coming from the fact that many have ambitious revenue targets they may fail to meet,” said Tony Watima, a Nairobi-based independent economist. Spending will probably climb about 10% in Kenya in the next fiscal year, 17% in Uganda and 11% in Rwanda, while it will be broadly flat in Tanzania, the nations’ respective governments have said in forecasts. While the governments forecast that revenue will increase by double digits next year, Kenya, Uganda and Tanzania all have plans to approach the debt markets to help raise the funds to finance their deficits. In Kenya’s case, the nation will borrow about 607 billion shillings ($6 billion) locally and internationally in 2019-20, according to Treasury Secretary Henry Rotich. GDP in East Africa will probably expand 5.9% in 2019 and 6.1% in 2020, according to the African Development Bank, making it the fastest-growing region on the continent. Kenya is implementing its so-called Big Four agenda, which will see the region’s...