Maize farmers are staring at a crisis, owing to the East African trade protocol that is increasingly allowing import of cheaper maize from Uganda and Tanzania. Uganda, whose harvesting season started in August, has already imported to Kenya huge quantities of cheaper maize, creating panic among farmers in the North Rift, Kenya’s food basket. The farmers are set to start harvesting in a month, just like those in Tanzania.  The EAC Protocol allows free movement of goods between East African countries — with the exception of sugar, which Kenya has restricted to protect its industries and farmers. The protocol also opposes the capping of maize prices by respective governments, in favour of market forces. Kenya, a net importer of maize, has been under pressure to implement the protocol fully. It traditionally depends on Uganda and Tanzania, which are surplus producers, to bridge the gap. But the two countries have been unable to fully exploit the market due to price setting by the National Cereals and Produce Board (NCPB). The board is the largest buyer of the staple grain and acts as the country’s maize central bank. When it sets a price, dealers adjust their prices accordingly, creating a ripple effect at both production and consumer levels. The price of maize across major towns is currently Sh2,900 for a 90-kg bag, except in Kisumu where it is retailing at Sh3,100. But maize from Uganda is already in the country, going for between Sh1,200 and Sh1,500 per bag in Eldoret. This is...

East African ministers will, next month, head to Beijing for the annual Africa Power and Infrastructure Forum (AIPF) where they are expected to attract more Chinese investors into financing regional projects, including the proposed multi-billion dollar standard gauge railway. In its fourth edition this year, the forum is being organised by EnergyNet, an online oil and gas auction platform, in partnership with the China-Africa Development Fund formed in 2006 to support Chinese companies to develop investment partnerships in Africa. The fund currently has some $5 billion under its management and its handlers will be offering part of the money to African countries with attractive projects that require private investor financing. According to the organisers, more than 10 project proposals will be presented during the forum which takes place from October 15-16. The forum is expected to attract several Chinese investors looking for juicy investment openings at a time when China's economy is experiencing a downturn due to structural reforms. Rwanda, Uganda and Kenya are to each send a minister to jointly market the standard gauge railway (SGR), an important infrastructure venture aimed at facilitating regional trade along the Northern Corridor. The New Times understands that East Africa's lineup in Beijing will feature Rwanda's Minister for Infrastructure James Musoni, Uganda's State Minister for Privatisation Aston Kajara and Kenya's Treasury Cabinet Secretary Henry Rotich. Rwanda's Infrastructure ministry, when contacted yesterday, couldn't readily confirm whether Minister Musoni will attend the forum but Permanent Secretary Christian Rwakunda said China has already agreed in principle...

Nairobi — An estimated 4,000 Single Tourist Visas (STV) have been issued since its launch in February 2014 for Kenya, Uganda and Rwanda. This represents a month-on-month improvement from an average of the 156 visas sold in the 10 months to December last year to 305 this year. Kenya Tourism Federation (KTF) Acting CEO Susan Ongalo says the improvement was due to an increased interest by members of the private sector umbrella body to participate in regional forums with a view of partnering and working with other players in member countries to develop unique East African products. "I came along with a delegation of 12 Kenyan tourism private sector players and county ministers for tourism who were keen to travel using their National Identification cards in order to better understand the process while cross-selling products within the region," Ongalo said during a tourism forum in Kigali, Rwanda, organised by East African Tourism platform (EATP). In July a report by KTF report acknowledged that a majority of regional and international travellers passing through Kenya are still unaware of the availability and process of using a Single Tourist Visa and National Identification for travel within the three countries. According to the research, up to 58.1 percent of travellers had neither used nor interacted with someone who had used STV, while 47 percent of travellers showed lack of familiarity on the existence of STV. During the forum, the East African Tourism players pledged to support and continue marketing the region as a single...

Tourism players in East Africa have pledged to support marketing of the region as a single tourist destination with a view of reaping maximum economic value from the initiative. The players say they are targeting to tap into at least 10 percent of the 140 million population in the region. An estimated 4,000 Single Tourist Visas have been issued since the launch of the Single Tourist Visa initiative in February last year. This represents a month on month improvement from an average of the 156 Visas sold in the 10 months to December last year, to 305 this year. With the Visa, foreigners can visit tourist attractions in Kenya, Uganda and Rwanda on paying a fee of 100 dollars. East African Tourism platform Regional Coordinator Carmen Nibigira says there was need to package the region as one destination, celebrate flagship tourism events and find solutions to individual challenges together. Members also called for the speedy hotel classification within the East Africa region with a view of harmonising the product by next year noting that this would go a long way in ensuring services and products were of same quality across board. The three countries chose flagship products to be cross sold within the region with Kenya hosting the Magical Kenya Expo, Rwanda the Kwita Izina and Uganda, Martyrs Day. The operationalization of the single tourist visa and use of the national identity cards to travel across East African Community member states has increased trade and tourism activities due to the...

MEDELLIN - Kenya has been elected to the highest decision making body of the United Nation World Tourism Organization’s (UNWTO) Executive Council.  Kenyan officials say the announcement was confirmed at the 21st UNWTO General Assembly, which is being held in Medellin, Colombia. Cabinet Secretary for East Africa, Commerce and Tourism, Phyllis Kandie, said:  “We are privileged to be accorded the opportunity to represent Kenya, East Africa and the African continent on the council. The East African Community (EAC) is one of the fastest growing regional economic blocks and is also endowed with some of the most remarkable tourist attractions to be found anywhere in the world.”
 
Kenya, Uganda and Rwanda recently introduced a single visa solution that reduces the cost of visiting to $100 and allows multiple entries.  Source: Enca.com

What, in your opinion, is the relevance of regional integration? Across the world different regional integration blocs have come up on the basis of different issues. But for our case (East Africa) we are looking at creating a competitive ground for all countries, especially small ones as well as allowing comparative advantage to strengthen a particular country's production capacity. Has Uganda realised any benefits from the integration? Yes! Certainly there have been benefits, especially in the area of trade. For instance, in the last 10 years Uganda has seen its trade across the region increase both in terms of volumes and quality. Trade volumes and investments by Ugandans in countries like Rwanda and Kenya have increased partly because of free movement of goods, labour and capital. How does Uganda's regional exports and imports balance sheet weigh? Of course it is an unbalanced equation. We have a lot of imports coming in and fewer exports and that is one of the challenges we are facing right now. Our exports cannot provide a buffer against currency volatility. Therefore one of our main works as Trademark East Africa is to work with government and see how we can improve our export potential. How far have you reached in regard to creati ng one-s top border posts? You have hit the nail on the head. Ours is an effort geared towards reducing the cost of trade across the region, especially on transportation of goods. We have mainly put our emphasis on improving physical access...

Importers have threatened to move to court to block the Mombasa County Government from introducing a raft of port levies. The Association of Importers of Kenya national chairman, Mr Peter Mambembe, opposed the proposed levies, terming them illegal. He argued that the port is a national asset, adding that it will be against the law for the county to impose charges on port users. "Port users are already paying taxes to the National Government. If the county introduces the proposed levies, it will amount to double taxation," he said. Mr Mambembe added that the port was deemed as an expensive facility and imposing new taxes will scare away both exporters and importers within and outside the country. Speaking to the Nation Sunday, he warned that the association would move to court to block the county from charging the levies if the Mombasa County Assembly passes the proposed Finance Bill. The Mombasa County government has proposed to introduce new levies at the port this financial year. The county has proposed the introduction of port health fees and charges as well as an export permit charge of Sh2,100 ($20 ) per tonne of cargo handled at the port and import clearance fee of Sh2,100 per tonne. Each ship docking at the port will be required to pay an inspection charge of Sh6,300 ($60) with Sh2,100 for supervision and destruction of condemned goods. The County plans to charge $60 (Sh6,300) for spraying vessels against vectors and $20 (Sh2,100) for fumigation. The Bill also...

Shippers moving good through the rapidly-growing port of Mombasa may soon have to pay steep new fees if the governor of the port’s county has his way, a move that could shift cargo to rival Dar es Salaam, Tanzania. Source: Joc.com

East Africa is emerging as a trade hub to rival sub-Saharan Africa is two heavyweight states of South Africa and Nigeria, according to analysis by Barclays published on Thursday. However the UK bank identifies five “sleeping giants” that present significant new opportunities for foreign companies; Ethiopia, the Democratic Republic of Congo, Mozambique, Tanzania and Ghana. This quintet which are “playing catch-up after significant political and economic upheaval . . . are increasingly attractive to foreign firms and international investors with an eye on long-term returns from fast-growing markets,” Barclays said in its inaugural Africa Trade Index. Matt Tuck, head of global corporate banking at Barclays, said the five were open to international trade and had rapidly growing populations that are likely to reach 325m in total by 2020, comparable to that of the US. Moreover, any repeat of the 7.3 per cent compound annual economic growth they have experienced over the past five years would lead to a significant rise in household spending. Most are relatively unreliant on commodity exports by African standards, shielding them from some of the storms currently battering emerging markets. “The core underlying fundamentals are getting better and with more stable government it does represent an opportunity for growth,” said Mr Tuck. “It’s a much more encouraging outlook than in the past.” Overall, Barclays found South Africa and Nigeria offered the best opportunities for foreign companies, in terms of unmet demand, the absence of major barriers to cross-border trade and their connectivity with other African countries. While South Africa is...

Kenya, Rwanda, Tanzania and Uganda will begin issuing a common electronic passport in November. The national non-biometric passports will be phased out over a two-year period ending in 2017. But Burundi has until close to the cut-off date to change over, as its current document already conforms to the new international standard for passports. Benon Mujuni, Principal Immigration Officer in Uganda, said the new EAC e-passport will be launched by the heads of state during their annual ordinary summit, after which the responsible regional authorities will start writing to different international bodies to ensure that it is a recognised travel document worldwide. “ICAO [International Civil Aviation Organisation] is one of the international bodies that we shall inform about the internationalisation of the EAC passport,” he said. ICAO is responsible for coming up with regulations and standards in immigration and movement of mail and live agricultural products across national borders. The EAC set an October 2015 deadline for states to have completed the process of procuring passport booklets and issuance systems for the passports. James Baba, Uganda’s Minister of State for Internal Affairs, said that Kampala, which has just started the procurement process of the systems and booklets, is focusing on a November deadline. Mr Baba added that it is important for the region to start issuing this document by November 24, 2015, because this is when the international community will require all countries to phase out all non-electronic passports. Only Burundi currently issues an electronic passport, while Rwanda has purchased...