KAMPALA, Uganda - Regional manufacturers last week asked that the East Afrian Community (EAC) governments favour them when contracting for goods and services. In a set of resolutions and meeting as the First Manufacturing Business Summit, they agreed that public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology based business start-ups.  ‘To this end, the government of East Africa Partner States and the private sector are called upon to prioritize in their procurement, the sourcing of locally manufactured products including in agro-food, furniture, motor-vehicles, parts, apparels and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy-East Africa-Build- East Africa scheme (BEABEA)’, a statement reads in part. The Summit was attended by Dr. Mukhisa Kituyi, UNCTAD Secretary General, Amb. Richard  Sezibera, EAC Secretary General,  Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives,  Adan Mohamed, Cabinet Secretary for Industrialization and Enterprise Development, Kenya, Tabu Abdallah Manirakiza, Minister for Finance Republic of Burundi, Adam Kighoma Ali Malima Deputy Minister for Finance of Tanzania, Dr. Joseph Mungarulire, representing the Minister for Trade and Industry, Republic of Rwanda, Denis Karera, EABC Chairman, Amos Nzeyi, UMA Chairman. The business people also called for a regional Local Content policy which clearly defines ‘local’ in a regional content  to ensure that preferential treatments accorded to nationals are extended to all suppliers within  in East Africa region. The Summit was jointly organized by East Africa Community Secretariat and...

East Africa has emerged at the leader in mobile payment over the years, with countries like Kenya having more than two-third of its adult population using mobile phones to transact. With the mobile money market in sub-Saharan Africa expected to double by 2019, lack of interoperability between telecoms operators and cross-border restrictions has stood out as one of the key challenges that face the growth of the revolution. According to a Wall Street Journal report, some of the continent’s biggest telecoms are striking deals to allow their customers to make payment across networks and country borders, something that cemented the region as a leader in mobile financial technology. In January, East African nations of Kenya, Rwanda and Uganda, signed a One Area Network Agreement (OANA) to help improve cross-border telecommunications and expand the scope of mobile money transfers in the sub-region. “We are now exploring how we can have the One Area Network infrastructure grow from voice to data and mobile money transfer. We want you to be able to move money from your M-Pesa account here to a relative in Kigali and vice versa or from Airtel Uganda to Safaricom in Nairobi,” Fred Matiang’i, Kenya’s Communications and Technology minister, said. London-based Vodafone Group and South Africa’s MTN Group hatched a deal that allowed their customers in East and Central Africa to transfer money to each other. Millicom also announced it would allow its customers in Tanzania and Rwanda to send money to each other. These telecoms are eyeing the...

By Ben Gasore The East African Tourism Platform (EATP) has pledged to continue marketing the region as a single tourist destination, as well as take a leading role in conservation efforts to create a sustainable tourism industry in the region. EATP comprises of the East African Community (EAC) countries' tourism boards and tour operators. "We are moving into packaging the region as one destination, celebrating flagship tourism events and finding solutions to challenges together, which wasn't happening before," said Amb. Yamina Karitanyi, the chief tourism officer at the Rwanda Development Board. Amb Karitanyi was speaking during a meeting that brought together EAC tourism boards officials and tour operators to discuss opportunities and challenges facing the region's tourism sector in Kigali over the weekend. The meeting coincided with the annual 'Kwita Izina' ceremony on Saturday, where 24 baby gorillas were named. The annual flagship tourism event in Rwanda was moved from June every year to September as part of a joint tourism promotion initiative established under a tripartite agreement between Rwanda, Kenya and Uganda. Under the deal, each member country has a period to focus on a flagship tourism event. Kenya was allocated October, where they host the Magical Kenya Expo, and Uganda took June when it hosts Uganda Martyrs Day on June 3. "As stakeholders in Kenya, the most important thing is that we are now taking this step. We started with Magical Kenya in October as an anchor flagship programme to market the three destinations and we have so...

Kenya and South Africa have faced diplomatic tensions due to strict visa regulations; however the recent launch of the Kenya/South Africa joint business council is seen as a step towards enabling relations between the two countries. “The relationship has been there but [the] business partnership has not been very strong,” says Laban Onditi, vice- national chairman at the Kenya National Chambers of Commerce and Industry. He elaborates that the chamber will give Kenyan and South African business people access to each other. Onditi added: “The role of the chamber is to enhance investment and trade, and where the difficulties come is because of the trade barrier, that is where the governments come in, the main core issues of the business council are to address barriers existing in the business community.” For instance South Africa had only been issuing visas for one month single entry and according to Onditi that was not conducive for a business environment hence that was discussed when the agreement was signed. “From now on, South Africa will be issuing one year double entry to three years, depending on the potential of businesses that are carrying on within; this is going to open the continuous movement of people.” The vice-national chairman is pleased with how the visa issue was resolved and how this will allow for faster movement of parcels and goods as anybody who is doing potential business in South Africa can now go to the Kenyan chamber and get a recommendation where the individual will...

Cargo importers have raised the alarm as additional costs due to delays in solving tax disputes erode gains accruing from reforms at Mombasa port. It takes more than two weeks for the customs officers to clear goods at the port as they await directive from their seniors in Nairobi, according to port users. “As this happens, storage costs continue to go up. A case in point is the loose cargo where Customs officers can never make a decision on the spot,” said Keynote Logistics managing director William Ojonyo. The delays imply a rise in warehousing costs even as time set for clearing goods at the port remains constant at four days. This shortcoming defies a charter signed by regulatory agencies on Northern Corridor to improve efficiency of the route. The main agenda of the Mombasa Port Community Charter, endorsed by President Uhuru Kenyatta was to eliminate cargo delays at the port by 2016. READ: Agencies pledge to speed up cargo clearance at Mombasa port The signatories of the pact signed in June 2014 were drawn from government agencies, civil society, private sector and interest groups. Mr Ojonyo proposes that setting specific timelines for handling tax disputes could help in improving efficiency at the port. “This will attract lower costs for doing business thereby making cargo handlers more competitive in the market,” he said. The charter, is a binding pact aimed at improving efficiency at the Mombasa was signed by 25 agencies. The signatories of the pact include the Kenya Revenue...

Dicksons Kateshumbwa, Commissioner of Customs at Uganda Revenue Authority, said consignments of sugar cleared in Mombasa for warehousing in Uganda are now handled under the Single Customs Territory (SCT) arrangement — which allows for joint collection of customs taxes by the East African Community (EAC) partners. Uganda has also added containerised refined edible oil, second-hand clothes and shoes as well as alcoholic and non-alcoholic drinks for clearance under the seamless tax system. “In addition, SCT clearance procedures will also be extended to containerised cargo of the following products; bitumen, cement, steel and steel products with effect from September 7, 2015” Kateshumbwa further said in a notice to traders. Under the SCT deal that began in 2014, importers of commodities are required to lodge the import declaration forms in their home country and pay relevant taxes first to facilitate the export process. The tax authorities in the respective countries would then issue a road manifest against the import documents submitted electronically by the revenue authority of the importing country. READ: Kenya, Tanzania add more goods to joint taxation pact ALSO READ: How cargo clearance will change from July 1 Clearing agents within EAC have been granted rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping. Several commodities including petroleum, steel, edible oils, confectionery and milk are currently traded between Kenya, Uganda and Rwanda under the SCT platform. Cement, cigarettes and neutral spirit were...

East Africa is the fastest growing sub-region on the continent, with economic growth expected to expand by 5.6% this year, well above the continental average of 4.5% or Southern Africa’s 3.1%. But in an odd contradiction to regional growth trends, East Africa’s infrastructure is one of the least developed in Africa. Infrastructure development is thus paramount for the sub-region to reach its full potential and many ‘mega’ infrastructure projects are currently under way in the region. By LYAL WHITE and ADRIAN KITIMBO. Kenya’s standard gauge railway (SGR), a new rail track that will stretch from Mombasa to Nairobi, is the most ambitious infrastructure project in the country since independence. The 609km-long line is expected to cost $3.6-billion, with China’s Exim Bank footing 90% of the bill and the Kenyan government providing the other 10%. The SGR is part of the grand trans East African railway project, one of many ‘mega’ infrastructure projects currently under way in that region. It is a direct effort to connect East Africans and their economies, and in so doing build economies of scale, lower the cost of doing business, attract foreign investment and ultimately accelerate growth and development. East Africa is currently the fastest growing sub-region on the continent. With economic growth expected to expand by 5.6% this year, well above the continental average of 4.5% or Southern Africa’s 3.1%, investors and credit rating agencies are increasingly bullish about the region. In an odd contradiction to regional growth trends, East Africa’s infrastructure is one of...

At the beginning of this month, businessmen, policy makers and other economic stakeholders from within East Africa and across the globe convened at the Speke Resort Munyonyo in Kampala for the first ever high-level Manufacturing Business Summit and Exhibition in the East African Community. The fact that the forum was held at Speke resort, with its colonial undertones and heritage, reflects the fact that Africa is still grappling with the legacy of colonialism, especially the effects of national boundaries arbitrarily drawn up so many years ago in Europe, without recourse to local culture or historical affiliations. It also illustrates how these boundaries continue to affect the economics, trade, immigration and geopolitics of these former colonies. How so? For many nations in Africa today, it is easier to trade with Europe, America or China than it is to trade across what for many is an imaginary line in the sand denoting two different countries. Yet there are individuals and companies grappling with how to extend their business beyond borders, setting precedents for those wishing to realise the pan-African dream. The timing of the forum was also apt, coming at a time when many companies have embarked on regional expansion programmes that will see them grow their footprint across the East African market of more than143.5 million people. This ability to operate across borders is important. Cross-border trade within the region brings in economies of scale and enables research and development for a bigger market. According to experts, including the World Bank,...

The East African Community is pushing for a long-term preferential trade agreement with the United States that will remove uncertainties surrounding the Africa Growth and Opportunity Act (Agoa). The five member states have submitted their request to the United States Trade Representative (USTR) on the modalities and the time to start negotiations on the pact. According to EAC Director General of Customs and Trade Peter Kiguta, the USTR is expected to present the request at the next US Congress meeting. If accepted, the region expects to increase the volume of trade and the number of products exported to the US. “For EAC partner states to expand their trade partnership with the US market, there has to be a reciprocal free trade agreement like the one with the European Union,” said Mr Kiguta. READ: Region to export products under Agoa as a bloc “The challenge with Agoa is that it is unilateral; it can be withdrawn any time and the 10-year period is very short and limiting for trade. So we need to have a long-term trade partnership that is more predictable,” he added. Peter Njoroge, the director of economics at Kenya’s Ministry of EAC Affairs, Commerce and Tourism, said that the East African countries have not been able to fully utilise the US quota-free market under Agoa because the agreement does not comply with the World Trade Organisation’s framework for free trade agreements because of its 10-year period of operations.  With a preferential trade partnership like the EAC-EU Economic Partnership Agreement (EPA), Mr Kiguta said member states will be...

Uganda has received the support of the East African Community Secretariat in its sugar and rice trade disputes with Kenya and Tanzania respectively. The Secretariat said the disputes go against the spirit of integration and free movement of goods and services in the region. According to the EAC, by requiring Ugandan traders to have permits to export sugar to Kenya, the country is imposing a non-tariff barrier, contrary to the EAC Treaty. “Sugar exports to the EAC partner states are duty-free and quota-free under the EAC Customs Union if wholly obtained from the partner states. This means that as long as the sugar is locally produced in Uganda the traders can sell it in Kenya or in any of the other partner states without having to be issued with permits or licences,” said Peter Kiguta, EAC Director-General in charge of Customs and Trade.  The EAC Secretariat’s position highlights the contradiction of one country having dual membership of different trading blocs. Kenya and Uganda are members of the Common Market for Eastern and Southern Africa (Comesa), under which permits and quotas — forms of non-tariff barriers for sensitive goods like sugar — are allowed in order to protect industries in member countries.   However, under the EAC, such products only attract punitive import duties ranging from 100 per cent to 35 per cent if they are imported from outside the region and sold to partner states — meaning the bloc relies solely on tariffs to protect domestic industries. In the 2015/2016...