As the UK prepares for life after Brexit, prime minister Theresa May is leading a charm offensive to Africa this week. With a delegation that includes the UK trade minister and minister for Africa, the British leader will visit three of Africa’s largest economies, South Africa (Aug. 28), Nigeria (Aug. 29), and Kenya (Aug. 30). May will be the first UK prime minister to visit Kenya in more than three decades and the first to visit Sub-Saharan Africa since 2013. The visit, described as ”a unique opportunity at a unique time,” has a very clear purpose: “As we prepare to leave the European Union, now is the time for the UK to deepen and strengthen its global partnerships,” May said. As it is already late to the party in Africa, following increased efforts from China and the United States in recent years, the UK is making the pitch for a “renewed partnership” with “mutual benefits.” It says it will work “side by side” with partners on the continent to “maximize shared opportunities.” Those sentiments appear to be particularly veiled references to contrast China’s activity on the continent which has been branded as “debt trap diplomacy” and criticized for encouraging dependency. In Kenya, for example, debt to China has grown tenfold in five years. May will need to make a strong impression on Kenya’s president, Uhuru Kenyatta, who is also meeting leaders from China and the US this week. In addition to trade talks, May will be pledging more military support as Kenya continues to battle the insurgent...

Britain's Prime Minister Theresa May walks out of 10 Downing Street in London, Britain, May 2, 2018. /REUTERS Britain will use its international aid budget to boost its own interests while also seeking to deepen trade ties with Africa, Prime Minister Theresa May said on Tuesday, countering critics who say aid funds would be better spent at home. May, battling to unite her divided Conservative Party over her plan to take Britain out of the European Union, is visiting South Africa, Nigeria and Kenya on her first official trip to the continent. In a speech in Cape Town, May said she wanted Britain to become the biggest investor in Africa out of the Group of Seven nations, overtaking the United States, by using the aid budget to help British companies invest on the continent. The government has held out the prospect of increased trade with non-European Union countries as one of the major selling points of Brexit as it prepares to leave the bloc, currently its biggest trading partner, in March next year. In April, Britain hosted a meeting of Commonwealth countries, including South Africa, Kenya and Nigeria, seeking to reinvigorate the network of mostly former colonies and drum up new trade amongst its members. May recommitted to maintaining the overall British aid budget at 0.7 percent of economic output but said she would use it in a way that helped Britain. “I am unashamed about the need to ensure that our aid programme works for the UK,” May said....

Trade among East African Community member states has grown by $4b (Shs15.014 trillion) since the establishment of Customs Union on January 2, 2005. The growth signifies the importance of regional integration to member states which mainly pursues trade and market integration. Mr Kenneth Bagamuhunda, the EAC customs general, said during the 22nd Ordinary Meeting of the East African Community Monetary Affairs Committee (MAC) that while integration will take long to be fully realised, there are already positives results. “Since January 2005, EAC trade integration has resulted into increased volume of trade. In 2005, trade between the EAC states was $1.5b but has since increased to $5.5b in 2017,” he said. According to Mr Bagamuhunda, infrastructure development in the region has developed, which has helped to grow trade in the region. “We have put emphasis on infrastructure development for economic growth [with] customs as one of the avenues for growth,” he said. The East African Customs Union was followed by the East African Community Common Market, which represents the second pillar of the EAC regional integration process. The EAC regional integration provides for freedom of movement for all the factors of production such as goods and labour, among others. Mr Bagamuhunda said the implementation of the Common Market has progressed well with the secretariat implementing a number of procedures such as the e-passport and one-stop border points, among others. The East African Legislative Assembly has also passed the Bill establishing the East African Monetary Institute. LARGEST TRADE PARTNER Since the establishment...

50 kilograms or 110 pounds. That is the maximum Nathalie can smuggle in one night. She knows a shortcut to avoid the border control. Her heavy bags are packed with used trousers, dresses and shirts from Europe and North America. "If you get caught, you can go to jail. If you are lucky, you can bribe the police," she said. One trip takes her two days. Eight hours by van from Kigali, the capital of Rwanda, to the place near the border where her parents live. Another hour by boat to the Democratic Republic of the Congo. There she spends the day at the market. "I look for all kinds of clothes. Back home, the people buy everything because second-­hand clothes are hard to get." High tariffs for textiles in Rwanda, pressure from the US Nathalie's 50 kilograms of used clothes are just a minor contraband compared to other smugglers. Rwandan authorities have impounded 230 tons of illegally imported clothes from July to December 2017. This is a consequence of the rise of tariffs for textiles from $0.20 (€0,17) to $2.50 (€2,09) per kilogram by the Rwandan government. The high tariffs are part of the strategy to strengthen the domestic textile sector. Currently, local production cannot compete with the quality and price of used clothes from the West. In 2015, the states of the East African Community (EAC) decided to ban the import on second-­hand clothing from 2019 onwards. Today, Rwanda is the only state that sticks to this plan. It is the US that...

President Uhuru Kenyatta wrapped up his official visit to the US with a message that Africa is open to mutually beneficial trade and investments with the world. Speaking to the media after his meeting with President Donald Trump, the President observed that Africa has come of age and does not look to the world for aid but how to foster win-win partnerships that benefit all parties involved. “There has been dramatic change across the African continent where people are beginning to get a better understanding of themselves, who they are and where they want to be,” he said. The Head of State added: “And we are looking at how we can partner with countries across the globe in a partnerships that are not patronising but those that are anchored on a win-win positions.” The President spoke shortly before he departed Washington DC on Monday evening after a busy day that saw him hold bilateral talks with President Donald Trump. He also met business executives of leading US companies during which he witnessed investment deals worth USD 238 million (Sh24 billion) signed between Kenyan and US companies. Uhuru termed his meeting with President Trump a big success, saying it cemented a relationship that was already strong between Kenya and the US. “The meeting with President Trump was fruitful. We discussed security, especially the fight against terrorism. We also discussed how to increase trade and investments between our two countries and how US companies can help create jobs for our youth,” he...

Central Bank Governors of the East African Community (EAC) have noted that there have been delays in realising targets set out in the East African Monetary Union (EAMU) road map and that there are several challenges that could further impede the full implementation of EAMU protocol. The Governors, who met in Kampala at the 22nd ordinary meeting of the EAC Monetary Affairs Committee (MAC) chaired by Prof. Emmanuel Tumusiime-Mutebile, Governor Bank of Uganda, pledged to collaborate with stakeholders in the EAC integration process to fast-track pending activities of the EAMU road map. The meeting was attended by Central Bank Governors of the 6 EAC member states (Kenya, Tanzania, Rwanda, Burundi, South Sudan and Uganda) and the Secretary General of the EAC Secretariat. The Governors noted that significant progress has already been made towards the operationalization of the EAMU Protocol. “Partner States’ Central Banks have made strides on harmonization of: monetary policy frameworks, exchange rate policies, rules and practices governing bank supervision, financial accounting principles, as well as payment systems. “A number of national laws are also being harmonised. In April 2018, the East African Legislative Assembly (EALA) enacted the bill establishing the East African Monetary Institute (EAMI). The EAMI bill now awaits assent by the EAC Heads of State,” noted a Communiqué that was issued after the meeting. It said that “Notwithstanding the above, Governors noted that there have been delays in realising targets set out in the EAMU road map and that there are several challenges that could further...

The East African Community had given itself a deadline of 2019 to start phasing out importation of second-hand clothes from the US. Commonly known as mitumba, the presidents of Kenya, Uganda, Tanzania, Rwanda and Burundi had agreed in 2016 to stop further importation from 2019, saying it would protect their nascent textile and leather industries. Then things started to fall apart. First, the Secondary Materials and Recycled Textiles Association (Smart), a US lobby, argued the ban would amount to a trade barrier, violating the Africa Growth Opportunity Act (Agoa). The Act, created during the George W Bush years, allows African countries like the EAC members to export goods to the US through tariffs. WARNINGS Then the US government itself started giving warnings to each of the EAC countries: If any ban was imposed, they would lose the privilege of selling goods to the US and the attendant jobs that come with it. Last year, Kenya acted first, pulling out of the EAC deal to ban mitumba. Then Trade Cabinet Secretary Adan Mohammed told journalists that Nairobi was letting market forces determine what Kenyans want to buy between mitumba and new clothes produced locally. "Our policy is, of course, that it is our desire to develop and promote our textile industry in our country to create more jobs for people in our country," he argued. "And through the transition of market forces we would like mitumba clothes to compete with clothes that are produced within East Africa, within Kenya, and if...

Arusha. The East African Business Council (EABC) is seeking the support of regional legislators to expeditiously tackle business challenges within the bloc. “The private sector has continued to face numerous challenges which the assembly is best placed to address,” said Mr Mwine Kabeho, the vice chairman of the body. He made the remarks during consultations when a high-powered delegation of the council visited the East African Legislative Assembly (Eala) in Arusha earlier this week. Mr Kabeho, who is the director of the Uganda-based Madhvani Group Limited, said hurdles such as trade barriers within the East African Community (EAC) hampered fast tracking of integration programmes. These, according to him, include the unresolved issue of non-trade barriers (NTBs) and failure to harmonise domestic taxes. Others are the high cost of air travel and telecommunications in the region despite repeated calls that they be lowered to reduce the cost of doing business. Two months ago, EABC expressed its concern over falling intra-regional trade in the community and called for concerted efforts to reverse the trend. Statistics indicate that intra-EAC trade declined by 10.1 per cent between 2013 and 2014 and by a further 14.6 per cent between 2015 and 2016, largely due to persistent NTBs and restrictions on exports of certain products. EABC ambassador and former Eala member from Kenya Peter Mathuki noted during the discussions that it was time the two institutions worked closely together when seeking solutions to the problems. “We have to resolve many issues for a stronger integration and...

EAST African Community (EAC) has embarked on concrete steps to control and prevent Aflatoxin amid the official launch of nine sets of policy briefs on the poisonous substance. During the launch in Nairobi, Kenya it was declared that the EAC Secretariat has prioritised Aflatoxin prevention and control as one of its flagship projects. The Principal Secretary (PS) in Kenya’s State Department of Agriculture Research, Ministry of Agriculture, Professor Hamadi Boga officiated the launch on behalf of Cabinet Secretary in the Ministry of Agriculture, Livestock, Fisheries and Irrigation. A communiqué availed here by the EAC Secretariat Head of Corporate Communications and Public Affairs Department, Mr Owora Othieno quoted Professor Boga as saying that Africa loses up to 670 million US dollars annually in lost exports due to Aflatoxin contamination, with about 40 per cent of foods in the domestic markets exceeding allowable levels of Aflatoxin in foods. The World Health Organisation (WHO) describes Aflatoxin as poisonous substances produced by certain kinds of fungi found naturally and posing a serious health risk to humans and livestock. They also pose significant economic burden, leading to destruction of over 25 per cent of the world’s food crops, annually. Most human exposure comes from nuts and grains. The PS said that the nine sets of policy briefs on Aflatoxin contain key recommendations on strategic policy actions and interventions required to mitigate the impacts and effects of Aflatoxin. Existing efforts to mitigate Aflatoxin at national level have remained fragmented and not adequately supported, technically and financially....

NAIROBI, Aug. 22 (Xinhua) -- The prolonged conflict in South Sudan has seen Kenyan banks scale down operations in the country, and look for opportunities outside the East African Community (EAC). The banks have halved their branches in South Sudan, initially one of the promising markets, since the war started in 2016. However, as the South Sudan market shrinks, the commercial banks in the East African nation's biggest economy have sought new business or scaled up operations in other countries that include Rwanda, Tanzania, Congo DRC, Malawi, Burundi and Botswana. Some nine banks have subsidiaries outside Kenya, with the institutions increasing the number of the branches to 306 in 2017, up from 297 in 2016, the latest sector report from the Central Bank showed Wednesday. From about 40 branches in South Sudan, Kenyan banks now have only 20 branches, with a majority having closed them down. "Kenya Commercial Bank (KCB) Group continued to scale down its operations in South Sudan following the deteriorating security condition that started in 2016. The bank cut its branch network to 11 from 17 in 2016," said the report. Cooperative Bank has four branches while Equity Bank has five, with the number of branches by the two remaining flat. The banks have, however, spread to Malawi, Botswana, the Democratic Republic of Congo (DRC) and Burundi, markets that initially looked distant when South Sudan was promising. "Equity Bank scaled up its operations in Congo DRC in 2007 from 31 to 39 branches. The bank has 79...