Spotted: African company, Trademark East Africa, has created an information network for small businesses in East Africa. The network aims to make their goods more competitive, by reducing trade barriers and improving transparency. Trademark’s Trade Logistics Information Pipeline (TLIP) was created to reduce barriers for trade. Traditionally, there has been no communication between all the actors involved in cross-border trade in East Africa, and this has meant that goods and services are nearly impossible to track. No individual actor along the chain can account for where a product is or how long it will take to ship. The TLIP connects small producers to foreign buyers and provides an easy-to-use information network that facilitates transparent and timely cross-border trade. Small business owners can communicate directly with foreign buyers and both parties can see how the product moves through the trade chain. This system ensures all steps in the process are synchronised, meaning that the products move from the producer to the buyer faster and with more transparency. TLIP uses blockchain technology, so all parties involved in the transaction are looking at the same source information. https://youtu.be/nxhnjUq2jx4

On February 21, expectations were high among the Ugandan and Rwandan citizens that the border connecting the two countries that has remained shut for exactly a year would be re-opened as Presidents; Yoweri Museveni and Paul Kagame held their fourth meeting mediated by their Angola and DRC counterparts, at Katuna one stop-border post. The Katuna border is an important point for the two countries as it facilitates trade between Kigali and the rest of the East African countries. However, the meeting that was meant to reduce tensions between the two countries may not achieve much due to the outcomes. The meeting was also attended by Angola’s President Joao Lorenco and Felix Tshisekedi –who had held meetings with Kagame and Museveni in Angola in 2019 and three weeks ago. A communique issued from the Katuna meeting recommended that Uganda “verify” allegations made by Rwanda about the existence of hostile forces towards Rwanda in Uganda. The communique stated that this verification process should be done in one month from the Feb. 21 meeting. “If these allegations are proved, the Ugandan government will take all measures to stop it and prevent it from happening again” the communique reads in paragraph 4. The action later must be verified by the Ad-Hoc Ministerial Commission for the implementation of the Memorandum of Understanding of Luanda, Angola. It is upon fulfilling this recommendation that another summit will be held at Katuna in fifteen days for the border re-opening having reached a compromise by both sides. This means...

The Personal Representative of the German Chancellor for Africa, Mr. Guenter Nooke who was on a working visit to Tanzania, yesterday held bilateral talks with EAC Secretary General Amb. Liberat Mfumukeko at the EAC Headquarters in Arusha. The two leaders discussed development cooperation between the Federal Republic of Germany and the EAC on matters relating to regional economic integration, with particular focus on Health and Agriculture, as well as Customs and Trade sectors. On his part, Amb Mfumukeko said the EAC and Germany have enjoyed a long standing partnership for the last 20 years, with commitments from the German Government amounting over Euros 470 million. He also requested Germany, through Mr. Nooke, to consider more support in Agriculture, Industrial development especially Agro-processing, and ICT sectors as part of institutional transformation in addition to the areas that the Federal Republic is currently supporting. Amb Mfumukeko reiterated that the EAC was deeply interested in penetrating the German and European market in general, which he described as being large and vibrant, adding that the region also hopes to benefit from technology transfer from Europe’s largest economy. Germany has long supported the EAC, and for the last 20 years spent about US$508 million to the region. The joint cooperation focuses on the areas of economic and social integration as well a health. Some of the Germany supported projects in the EAC include EAC Immunization Programme, EAC Regional Network of Public Health Reference Laboratories for Communicable Diseases Project, EAC Scholarship Programme; the Lake Victoria Basin...

The real impact of commerce under a Pan-African deal to establish the world’s largest free-trade area will probably only be seen in three years, according an architect of the pact. While the first trade under the African Continental Free-Trade Area, which could cover a market of 1.2 billion people with a combined gross domestic product of $2.5 trillion is set to start July 1, it will be “very modest,” Carlos Lopes, the former executive secretary of the United Nations Economic Commission for Africa, said in an emailed response to questions. That’s because a road map, laws and support mechanisms to facilitate continent-wide trade has to be finalized, he said. Lopes led the unit that provided technical support to the African Union, which is spearheading efforts to establish the continent-wide deal. Africa lags behind other regions in terms of internal trade, with intra-continental commerce accounting for only 15% of the total, compared with 58% in Asia and more than 70% in Europe. The African Export-Import Bank estimates intra-African trade could increase by 52% within a year of the pact’s implementation and more than double during the first decade. The agreement requires member states to work toward eliminating or lowering tariffs on 90% of goods to facilitate the movement of capital and people, and create a liberalized market for services. Tariff concessions, rules of origin and protocols governing services are still to be agreed on An agreement on tariffs could take time because countries are expected to offer concessions on an individual basis...

AMB. Masahiro Imai, the Japanese envoy to Rwanda, has pledged to help attract Japanese companies to invest in different sectors in Rwanda. He was speaking at the Birthday celebration of His Majesty the Emperor of Japan on Thursday February 20, at his residence in Kigali. Imai, who said he had worked in a trading and investment company for 39 years before being appointed ambassador, said he is interested in bringing big investors to Rwanda. “During the 3-year term of my predecessor, the number of Japanese companies doing business in Rwanda increased from seven to 27 but most of them are small and medium, start-up companies; I wish to bring Japanese big companies,” he said. He added that since he arrived in the country two months ago, three more Japanese companies have set up shop in Rwanda. Some companies are in agriculture such as growing, processing and exporting macadamia. Others are into vehicles sales, software development, among  others. “This is a clear demonstration of the soaring interest of the Japanese private sector in doing business in Rwanda. I found that there is greater potential between Japan and Rwanda for business. Rwanda became famous in the past 20 years all over the world but it still needs business, it stills needs economic growth,” he said. The envoy said that Japanese companies can invest in agriculture, export of Rwandan agricultural products like coffee and tea, infrastructure like power, water, ICT and others. He also cited growing interest in health care. “To improve medical...

It is only four days short of a year since Rwanda closed its key crossing border point with Uganda at Katuna, the focal point of business transaction between the two countries. The communities along the common border are kinsmen and kinswomen, who use the border-crossing for day-to-day dealings. Closing the Katuna border meant the families would be separated and economies of the two countries adversely impacted. Prior to the closure, Uganda and Rwanda’s relationship had been getting colder over the years. Rwanda had accused Uganda of sheltering its dissidents, while Uganda accused Rwanda of infiltrating its security machinery. And at the height of this slow-baking conflict, Gen Kale Kayihura was arrested in June 2018. The former IGP was accused of aiding and abetting the forced repatriation of Rwandan nationals. This would turn out to be one of the sticky issues in Uganda-Rwanda ties. In the months that followed, President Kagame was quoted as saying: “You can attempt to destabilise our country, you can do us harm, you can shoot me with a gun and kill me. But there is one thing that is impossible: No one can bring me to my knees.” Source: Daily Monitor

Businesses are rooting for capping of the common external tariff at 32.5 percent by East African Community member states. East African Business Council’s CEO Peter Mathuki says the new tariff would be presented during the forthcoming EAC member states summit slated for later this month for ratification. The meeting is also expected to deliberate on admission of the Democratic Republic of Congo and Ethiopia, who have expressed interest to join the trading bloc. However, businesses from EAC member states say they have brokered a deal to cap common external tariff at 32.5% with the proposal expected to be presented during the forthcoming EAC summit in Arusha slated for later this month in efforts to harmonize the tax regime in the trading bloc. The council has called on the member states to expedite in establishing a single regional air space and one network area to further lower the cost of doing business in the region. The proposal by the Democratic Republic of Congo and Ethiopia to join the East African Community trading bloc is at an advanced stage. The forthcoming summit is also expected to handle trade issues between member states. Source: KBC Channel

DAR ES SALAAM, Feb. 13 (Xinhua) --Tanzania's Ministry of Finance and Planning on Thursday signed a facility agreement with Standard Chartered Bank for a 1.46-billion-U.S.-dollar loan to finance the construction of the standard gauge railway (SGR) project from the commercial capital Dar es Salaam to Makutupora in the capital Dodoma. Running approximately 550 kilometers long, the SGR project is one of the country's biggest projects connecting Dodoma to Dar es Salaam via Morogoro and Makutupora, said a statement issued by the Ministry of Finance and Planning. Speaking at the event to sign off the deal, the Minister for Finance and Planning, Philip Mpango, said with the help of Standard Chartered and other partners, the project financing will further increase direct employment in Tanzania. Sanjay Rughani, Chief Executive Officer of Standard Chartered Tanzania, said that deal signified investor confidence in the market and demonstrated Standard Chartered's international network capabilities and commitment to Tanzania. "We are delighted to have reached this milestone in Tanzania to fund the SGR project that will deliver massive benefits to Tanzania and support the government's 2025 vision of making Tanzania an industrialized country," said Rughani. Rughani added that the bank will continue to leverage its unique network reach, and the credibility it has built over time, to further position Tanzania as the go-to destination for investments. Once complete, said the ministry's statement, the SGR project will provide a safe and reliable means for efficiently transporting people and cargo to and from the Dar es Salaam port. According...

The United Kingdom is seeking to enter into a trade pact with the East African Community member countries. The country, which just left the European Union (and into a one-year transition phase), is keen on having long-term and sustainable trade ties with the EAC region. Currently, during the one-year transition period set to end on December 31, the UK-EAC trade engagement will be under European Union protocol where most regional countries including Rwanda apply the Everything But Arms treaty. In an exclusive interview with The New Times UK High Commissioner to Rwanda, Jo Lomas, said that they are looking to negotiate a trade deal somewhat similar to EAC’s Economic Partnership Agreement with the European Union. “We are looking to have a trade deal with the EAC, along the lines of what was agreed upon by the EU. Ultimately, we would like to be negotiating something more ambitious but we are keen not to disrupt trade,” she said. She said that, so far, they have commenced consultations with the EAC secretariat as well as EAC member states, including Rwanda. “We have started to consult with the EAC secretariat and the EAC states on how to take that forward. The Rwandan Minister for Trade was in London and we had an initial discussion,” she said. She noted that the lack of an EAC-EU binding economic agreement necessitated the negotiation of a new one. “If there was trade agreement with the EU already in operation, we would transition to one. At the moment,...

Importers in East Africa will from July operate under a common Customs bond, which guarantees uniform import duties and taxes across all partner states. Currently, the value of Customs bonds varies from country to country because of the application of different duty rates, valuation and sensitivity of goods. Kenya requires importers of transit goods to secure a Customs bond issued by an insurance company, while delicate or sensitive cargo requires a bank or cash guarantee. In Uganda and Rwanda, the Customs bond is issued by an insurance company with rates based on the taxes charged by the destination country. According to the East Africa Community Single Custom Territory Monitoring and Evaluation Committee, the common Customs bond will reduce the cost of doing business and goods turnaround time. This common Customs bond is expected to be adopted during the Council of Ministers in July as part of the pillar to create a Customs Union. It is meant to create a level playing field for the region's producers by imposing uniform competition laws, Customs procedures and external tariffs on goods imported from countries outside the EAC. The Monitoring and Evaluation Committee met in Mombasa, Kenya to discuss how to tackle the remaining trade barriers. They agreed that enhancing integration of Customs and port functions will ease the seamless exchange of information among partner states. To secure cargo movement in the region, the revenue commissioners from Kenya, Rwanda, Burundi, Tanzania and Uganda, who were in attendance, said they were already implementing cargo tracking...