The Common Market for Eastern and Southern Africa (Comesa) plans to set up a team to oversee the implementation of the Digital Free Trade Area (DFTA). The DFTA is an online platform for trade facilitation comprising three segments namely electronic trade (e-trade,) e-logistics, and e-legislation. The e-trade aims at promoting electronic commerce by providing a platform for traders in the Comesa bloc to conduct business online. The e-logistics segment uses ICT as a tool to improve transportation of goods to customers, while e-legislation looks at the preparedness of countries to put in place laws that enable them to carry out e-transactions and e-payments. “The DFTA platform will enable duty-free and quota-free trading and provide an online regional market. Hence, it will empower cross border traders to do business using ICT thereby minimising physical barriers,” said the Comesa in a statement. The sub-committee, which will be made up of members of trade, ICT and other relevant ministries in member states will be charged with the responsibility of ensuring that Comesa realises the dream of achieving a digital free trade area. The decision was reached during a council of ministers meeting in Lusaka, Zambia, last week. The ministers also allowed the including of other stakeholders in the committee, including the private sector, to hasten implementation. The council instructed the Comesa secretariat to finalise DFTA gap analysis in member states by the end of this year. The DFTA will require both technological and legal inputs, especially in the fields of intellectual property, competition,...

Kenya, Uganda, Rwanda and Southern Sudan have already put the regional Act effect which, among other things, seeks to reduce the spate of accidents. Briefing reporters here yesterday, Permanent Secretary in the Ministry of Works, Transport and Communication Joseph Nyamhanga said the new regional Act embodies many new aspects, unlike the existing one. He was speaking at a forum aimed at imparting knowledge and awareness about the new regulations to heads of key stakeholders in the transport industry from both private and public sectors. "Before the Act comes into effect, we have seen the need to educate you about it and its relevant regulations, hoping that you will also bequeath the knowledge to others in the transport industry," he said. He urged experts with the Tanzania National Roads Agency (TANROADS) to continue disseminating education and knowledge on the fresh vehicle load control regulations to all transporters countrywide. Dwelling on impending changes after the Act and its regulations come into effect, he said offenders will be fined up to $15,000 or three years’ imprisonment in default. "This is why we have set ample time of at least four months in order for all transporters in the country to read between the lines and understand them well since we will not entertain any excuses when the Act and regulations come into force," he cautioned. Elaborating, he said according to the new regulations, limitation of weight in axle of super single tyres has been set at 8.5 tonnes instead of the current 10...

The agreement was reached after a meeting in Mogadishu between President Mohamed Abdullahi Farmaajo of Somalia and Ethiopia’s newly installed prime minister Abiy Ahmed. Officials did not say which ports would be developed. A joint technical team is to be formed immediately to outline proposals. The text of the agreement can be seen here. The development is being view as part of the complicated politics of the region, which is in the shadow of the struggle between the Gulf states on one side and Turkey, Qatar and Iran on the other, as well as Ethiopia’s difficult relations with Eritrea and the position of the breakaway Republic of Somaliland. In recent years Ethiopia has been moving closer to the UAE, and the announcement follows a pledge from the UAE to give it $3bn in aid. Under the terms of that deal, the money will be used as capital investment in construction projects. Ahmed Shide, Ethiopia’s communication affairs minister, said the money would significantly further the country’s development goals. The UAE is thought to be interested in investing in industrial parks, which have become an important part of Ethiopia’s strategy of building up an export-oriented manufacturing sector, as well as healthcare and hospitality projects. One billion dollars will be deposited in Ethiopia’s central bank to ease its foreign currency shortages. These have become so severe that the government has been considering the privatisation of Ethiopia Airlines, Africa’s fastest growing carrier. State-owned Ethio-Telecom, which has more than 65 million subscribers, has also just...

Arusha. A continent-wide online platform to support women entrepreneurs has been launched with the support of the African Development Bank (AfDB). The 50 Million African Women Speak Networking Platform Project (50MWS) will provide financial and non-financial information to women entrepreneurs within the African continent including the East African Community (EAC). “That would enable them to interact and grow their businesses,” said Mary Makoffu, the EAC director of social services. She added although there were already such platforms for women in business across the region, EAC was keen to partner and build on the existing structures “to better deliver on this project.” Besides the EAC, 50MWS is also being implemented in three other regional blocs, the Southern African Development Community (Sadc), the Common Market for Southern and Eastern Africa (Comesa) and the Economic Community of West African States (Ecowas). “This is a good opportunity for women in business in respective regional economic communities (RECS) to penetrate markets of other blocs”, she pointed out. To introduce the three-year project, the EAC secretariat recently conducted meetings targeting ministries responsible for Gender, ICT, Trade and EAC Affairs as well as the civil societies. Each member state would, thereafter, be required to form respective country team that will help in collection of information to upload into the platform. The ministries responsible for Gender in each country, which normally disburse funds to support women’s economic activities, will be in charge of 50MWS coordination. “50MWS Project will also contribute to reduce to zero gender that were observed...

Arusha. Market driven integration will top the sixth annual East African Community (EAC) Secretary General’s Forum slated for Nairobi early next week. The forum, which has been held every year since 2012, aims at providing an opportunity to the private sector, civil society and other interest groups to share experiences on regional integration efforts. It is convened by the EAC secretariat in collaboration with the Regional Dialogue Committee, which comprises members from partner states. “This year’s forum will review the work plan and progress reports on the consultative dialogue framework for the private sector, civil society and interest groups,” EAC said in a statement yesterday. The framework was adopted during a recent meeting of the EAC Council of Ministers, which is the policy organ of the six-nation community. About 100 delegates drawn from the private sector and civil society organisations as well as professional bodies, media, trade unions and EAC institutions are expected at the two-day meeting, which will start on July 23. Themed “Strategising for Impact:People-Centred and Market-Driven Integration’ the forum is expected to redefine the way forward in the EAC integration efforts. Through consultation and dialogue, non-state actors and EAC and partner states officials are expected to agree on concrete policy measures on issues pertaining to integration. Holding of the annual forum among key players in the EAC integration process was endorsed by the EAC Council of Ministers in 2012 and since then five EAC SG’s forums have been held in different capitals. Source The Citizen

Since debts can only be repaid if a country generates money through economic activity, some countries may seek to expand their industrial bases or conversely the tax base from which they can collect tax revenues to pay off their domestic debt. The East African region had by 2017 accrued debts amounting to $127.76 billion on an annual gross domestic product that stood at $249.56 billion in that same year. On the continent, the region is a little less indebted than South Africa whose total debt amounted to $191.8 billion in 2017. Nigeria’s debt in comparison stood at $100.7 billion. Nigeria and South Africa are the continent’s largest and second largest economies respectively. That Nigeria was less indebted than South Africa and East Africa can be attributed to its oil revenue that funds the greater part of its national budget. Whereas the Nigerian government received a big chunk of its funding from oil revenue, South Africa taxed its industries and the difference was funded through borrowing. South Africa’s advanced integration into international capital markets and its large industrial base offer the government a high level of liquidity, meaning it can run large debts with greater ease than its East African counterparts. In 2017, South Africa’s domestic debt stood at $177.85 billion to East Africa’s $52.533 billion. In the same year, Nigeria borrowed $69.6 billion from the domestic market. Nigeria’s oil revenue gives it room to borrow less from its domestic markets compared with South Africa. Concurrently, Nigeria’s large and relatively advanced...

Arusha. The East African Community (EAC) is pushing partner states to review over 100 national laws to conform with the Common Market Protocol. The laws relate to free movement of goods, people, labour, capital, services and the right of establishment and residence. “Harmonisation of partner states’ relevant national laws for the purpose has been a monumental task,” said the deputy secretary-general (productive and social sectors), Mr Christophe Bazivamo. He was addressing a delegation from the Centre for Pastoral Areas and Livestock Development under the Intergovernmental Authority on Development (Igad). The mission was seeking to understand the EAC’s policy on transboundary pastoralism and cross-border transhumance, which is the action or practice of moving livestock from one grazing ground to another in a seasonal cycle. Mr Bazivamo said there were still many barriers hindering free movement of people across borders in the region despite efforts to minimise and expedite border procedures. “Sensitisation of people at all levels is therefore necessary as part of efforts to knock down these national barriers.” However, Mr Bazivamo commended progress made in promoting the cross-border movement of skilled labour, citing the signing of mutual recognition agreements (MRAs) among various professionals. He added that MRAs have already been signed by the six member states among accountants, architects, engineers and veterinarians. Negotiations of MRAs for land surveyors and advocates have also been concluded and are awaiting signing by competent authorities. “Negotiations for MRA for pharmacists have commenced,” Mr Bazivamo added when briefing the visitors on efforts being made to...

Consumerism is an economic and cultural ideology that encourages the acquisition of goods and services. The Theory of Consumerism states that a country that consumes goods and services in large quantities will be better off economically and experience high growth rate. Over last few decades industrialization has pushed production of consumer goods all over world. Post 1990’s globalization has further enhanced consumerism through multinational company’s growth. It is estimated that 1.7 billion people around the world belong to the consumer class. The consumer class includes people that are able to purchase non-essential goods such as expensive cars, fancy jewellery, and big houses Consumerism is responsible for manmade climatic change.   High rate of growth in production and consumption of non essential goods has led to deterioration of environment leading to climatic change. According to study from Norway between 60-80 percent of the impacts on the planet come from household consumption. Based on climatic change projections, globally countries will experience changing rainfall patterns, rising sea levels, and higher temperatures that will affect food security, agricultural production, water availability,  public health, among others. Population, technology, and consumption are considered to be factors responsible for climatic change. Yet of the three factors consumption seems to get the least attention as responsible factor. One reason for this  is that it may be the most difficult to change; our consumption patterns are so much a part of our lives that to change them would require a massive cultural overhaul, not to mention severe economic dislocation.  Again...

Regional economies have allocated a third of their individual budgets in the new financial year to infrastructure projects, aiming to boost economic activity and spur growth. Of the $15.8 billion going to development projects, Kenya allocated $6.25 billion (39.5 per cent), followed by Tanzania at $5.3 billion, then Uganda at $3.05 billion and Rwanda at $1.28 billion. Kenya reduced its allocation from $7.4 billion in the 2017/18 fiscal year. Tanzania’s allocation increased from $5.27 billion in the year ending June 30. Uganda had set aside $1.32 billion, while Rwanda had earmarked $924 million for development expenditure last year. The projects range from airport upgrades to aircraft purchases, modernisation of road and railway networks, and energy generation. Tanzania says it will prioritise the construction of its Central Railway Line under the standard gauge railway project, for which it has budgeted $3.14 billion, with about half of it paid to the contractor. Kenya has allocated $747 million in the new financial year for the construction of Phase 2A of its SGR, from Nairobi to Naivasha in the Central Rift. Uganda is juggling between upgrading its metre gauge railway and initial work on its SGR, which is currently at the land compensation stage. Uganda Railways Corporation took over the operation of the metre gauge railway, after the termination of the Rift Valley Railways concession. Railway services on the Eastern Route resumed in February, and they reinstated the passenger rail service in the Kampala Metropolitan Area. Ugandan Finance Minister Matia Kasaija reiterated the country’s...

The Intergovernmental Authority on Development has adopted a regional policy framework on cross-border trade that promises to be a lifeline for the region’s small-scale traders. Trade ministers from Djibouti, South Sudan, Sudan, Uganda, Somalia and Kenya and a representative from Ethiopia meeting in Mombasa last Thursday signed a policy document seeking to strengthen border security systems, support trade facilitation at border crossings and promote participation of border and communities in policy making. The Informal Cross-Border Security Governance policy tackles issues related to food security, employment, peace and security in the region’s borderlands. Kenya’s Trade Cabinet Secretary Adan Mohamed said the initiative is expected to sensitise on cross-border trade among member states. “The beneficiaries are likely to be women and youth, and we are happy that today we have a framework that will recognise the socioeconomic contribution of informal cross-border trade within member states,” Mr Mohamed said. “It will also help us understand the linkages between cross-border informal trade and cross-border security,” he added. The policy document will be presented to the Igad Heads of State for onward transmission to the African Union. Mr Mohamed said that improving cross-border trade is one step towards the Continental Free Trade Area that the Heads of State signed in Kigali in March. Uganda’s Trade Minister Amelia Kyambadde said the policy will regulate the informal trade within Igad countries and provide an opportunity to grow the informal sector. HORN OF AFRICA SUMMIT TO DISCUSS CROSS-BORDER TRADE, SECURITY. “This policy will have an impact because every...