The direct costs of non-tariff barriers (NTBs) in the East African Community (EAC) is estimated at $16,703,970, with the total trade impact being $94,918,000, a new report shows. The EAC Regional Meeting Committee report (2023) shows that trade has decreased by an average of 58 percent. Tanzania and Uganda have been cited as having the highest number of unresolved NTBs, with Tanzania having four unresolved issues, Uganda, three, and Kenya and South Sudan having one each as at February 2024. NTBs, which are obstacles to international trade that are not import or export duties, have taken the form of import quotas, subsidies, customs delays, and technical barriers impeding trade, have been a hindrance to intra-EAC trade. The EAC Sectoral Council of Trade, Industry, Finance and Investment meeting in Arusha on February 9 chaired by William Anyuon Kuol, Minister for Trade and Industry of South Sudan and chairperson of the Council, resolved to have the NTBs resolved by June, pushing the partner states to hold bilateral meetings to resolve them. Addressing the Council on the matter, EAC Secretary-General Peter Mathuki said that while in the financial year 2021/2022, intra-trade reached $8.7 billion, followed by an increase to $9.4 billion in 2022/23, NTBs continued to pose threat to trade in the region. “This demonstrated a robust trading environment among EAC Partner States, with a notable growth of approximately 7.98 percent,” Dr Mathuki said. “However, there is a need for ministers to address issues relating to denial of preferential market access for EAC-originating...

TANZANIA: THE Tanzania Women Chamber of Commerce (TWCC) in collaboration with Trade Mark Africa has launched youth wing to empower them skills to achieve business goals. The event was graced by Ilala District Commissioner, Edward Mpologo who represented the Deputy Minister of State, in the Prime Minister’s Office (Labour, Youth, Employment and People with Disability), Patrobas Katambi. Mr Mpogolo commended TWCC for remembering youth wing, an initiative which targets to help women to build their capacity in raising families and boost the economics of their families and nation at large. “This collaboration aims to empower young individuals by providing them with the necessary skills, resources and support so that they can thrive in the world of business,” he said. About 300 women and 40 youth attended the event that was accompanied by a seminar and some presentations from entrepreneurship trainers, all of which aimed to empower them with skills and commitment for achieving commercial and business goals. Youth are the engine of the development of all countries world-wide. The population of our country which is 61 million, among whom 34 million are Youth. In 34 million youth, 11 million are female youth while 10 million are male. He said by involving 34 million young people in empowering them with knowledge and entrepreneurship skills the initiative helps the important group to boost its economy. The meeting provided a platform for women entrepreneurs to connect, share experiences, and explore opportunities for collaboration. Attendees also had the chance to engage with likeminded individuals, gain...

TradeMark Africa has received a $63 million (Sh9.9 billion) grant from the Netherlands towards sustainable and inclusive trade initiatives in the continent. The investment running to 2030 will help strengthen trade systems, benefitting local traders and Dutch businesses, fueling economic growth, and nurturing sustainable livelihoods across various sectors in Africa. "The government of the Netherlands, through its Ministry of Foreign Affairs, in a significant boost to global trade development, has announced a $63 million funding to TradeMark Africa, a leading aid-for-trade organisation," read a statement from TradeMark, formerly TradeMark East Africa. The investment is expected to improve market access for local products at the global level, in addition to bolstering initiatives that drive innovation, research, and development within the African market, enhancing competitiveness and green trading practices. "TradeMark Africa will significantly contribute to a more inclusive and prosperous trade landscape for the African continent, benefitting both African and Dutch businesses," said Mr Marchel Gerrmann, ambassador for business and development cooperation at the Dutch Ministry of Foreign Affairs. TradeMark Africa was established in 2010 as an aid-for-trade organisation aimed at growing intra-African trade and increasing the continent’s share in global trade. “We are excited to continue this partnership, focusing on the trade challenges of the coming years – not least ensuring Africa is a pioneer in green trade, and that the benefits of trade corridors reach people and geographies in most need of the economic boost that they bring,” said the company CEO, David Beer. “These programmes will contribute to a...

KAMPALA –In a game-changing move, the Kenya Ports Authority (KPA) has garnered praise from a cross-section of Kampala traders, for introducing Kargo Pay, a cutting-edge electronic payment system. This alternative cargo payment mode is set to revolutionize efficiency and expedite the settlement of port charges. One of the traders lauded the new system as a game-changer in the clearing process, predicting significant time savings and improved turnaround for traders. Clearing goods at the port, a historic challenge for traders is set to become a streamlined and secure process, sparing them from the hassles of physically transporting large sums of money to Kenya. Another trader also emphasized the newfound convenience of Kargo Pay, allowing traders to clear goods remotely, even during night hours, from the comfort of their homes—an unprecedented advantage in their trade endeavors. The system launched as a response to evolving industry needs in 2023, has been warmly received for its ability to facilitate transactions in the local Ugandan currency, a feature that aligns seamlessly with traders’ preferences. Christened “Kargo Pay”, this system not only champions currency flexibility but also introduces alternative payment methods such as bank cards and mobile transfers. By eliminating the need for physical visits to banks, Kargo Pay enhances convenience, providing a transformative solution for the clearing of goods. Kargo Pay has potential to alleviate clearing of cargo headaches. While recognizing the app’s benefits, traders suggested improvements to it, showcasing the traders’ openness and enthusiasm to embrace digital solutions that enhance operations. KPA, during a...

East Africa is taking giant strides towards eliminating Non-Tariff Barriers (NTBs), a move that promises to revolutionize trade in the region. The East African Community (EAC) Secretariat, in collaboration with Partner States, has developed and launched a mobile application aimed at easing the reporting, monitoring, and elimination of NTBs. The application, a first of its kind in the region, was unveiled on February 14, 2024, and is expected to significantly reduce trade barriers. This comes as experts in the region are urging for increased trade in agricultural, pharmaceutical, and leather products to stimulate East Africa's economy. Harmonizing Standards and Simplifying Export Procedures In the agricultural sector, emphasis is being placed on harmonizing agricultural and food safety standards, developing quality planting seeds and seedlings, and adopting a code of conduct for farmers and exporters. To facilitate this, Ministers have directed Partner States to simplify export procedures for agricultural products like avocados and other fruits and vegetables. The Secretary General of the EAC has highlighted the growth in intra-trade values, emphasizing the importance of addressing issues hindering trade within the region. "The removal of NTBs is crucial in promoting trade and investment within the EAC," the Secretary General said, "and this mobile application is a significant step towards achieving that goal." Boosting Pharmaceutical and Leather Sectors In the pharmaceutical sector, initiatives such as Biovax vaccine manufacturing plants in Kenya and a BioNTech plant in Rwanda are ongoing. The EAC partner states are encouraged to expedite pharmaceutical waste disposal approval processes and develop harmonized...

What you need to know: The East African Community (EAC) partner states have been directed to gear up for the App’s operationalization by April 30 this year Arusha. A new mobile App intended to fight trade barriers in East Africa will be rolled out soon. The East African Community (EAC) partner states have been directed to gear up for the App's operationalization by April 30 this year. The facility has been developed to ease the reporting, monitoring and elimination of non-tariff barriers (NTBs) in the bloc. This allows the users to report the complaints in any of the three official languages of the EAC, which are English, Swahili and French. The App can be downloaded from the Apple Store, Google's Play Store and other such stores. It can be accessed through https://eac-mobile.portal.africa, according to a statement from the EAC secretariat. The directive to roll out the App by April 30 was made at the ministerial meeting of the EAC held in Arusha last Friday. The App was developed with the support of Trademark Africa and finalised and piloted during the National Monitoring Committee (NMC) meetings last year. The App was officially launched in December last year in Bujumbura by the EAC secretariat but is awaiting formal operationalization. According to the EAC secretariat, operationalization of the App in April 30 will be preceded by sensitization and capacity building for relevant public and private sector officials and other stakeholders. NTBs have been a major hindrance to the free movement of goods as...

PRESIDENT Emmerson Mnangagwa has called for a speedy establishment of a one-stop border post between Zimbabwe and Botswana. He said this while addressing delegates attending the 4th Zimbabwe-Botswana Binational Commission Summit underway in Botswana. “The unrestricted movement of our citizens as well as goods and services is an essential cog to stronger economic cooperation. In this spirit, the establishment of the One Stop Border Posts should be expedited,” he said. In the same vein, the President said the proposed railway line between Botswana, Mozambique and Zimbabwe must be pursued as it will promote rail connectivity in the region. “The development of cross border infrastructure projects to increase our economic efficiencies and competitiveness must be pursued with greater vigour and confidence. The proposed railway line between Zimbabwe and Mozambique (known as the Ponta Techibanjne Inter-Regional Heavy Haul Railwa Project) is highly anticipated for greater rail connectivity in the region.” President Mnangagwa also called for investment and cooperation by the private sectors in the renewable space to support industrialisation of economies. The 4th Zim-Botswana Bi-National Commission is set to further solidify the already strong bond between the two neighbouring countries as well as unlock avenues for collaboration. Read original article

Nairobi, 8 February: The Government of the Netherlands, through its Ministry of Foreign Affairs, in a significant boost to global trade development, has announced a $63 million funding to TradeMark Africa, a leading aid-for-trade organisation. This strategic investment will fuel TradeMark Africa's Strategy 3, covering the period till 2030, aimed at driving green, sustainable economic growth, fostering innovative trade practices, and promoting inclusive trade across Africa. This move underscores the Netherlands' commitment to enhancing economic opportunities, job creation and facilitating sustainable trade throughout the continent. Marchel Gerrmann, Ambassador for Business and Development Cooperation at Netherlands Ministry of Foreign Affairs, said: “TradeMark Africa will significantly contribute to a more inclusive and prosperous trade landscape for the African continent, benefitting both African and Dutch businesses." The Netherlands’ contribution will be invested in strengthening trade systems so that they benefit local exporters, foster economic growth, and create sustainable livelihoods across diverse sectors. This investment will be instrumental in improving market access for local products at the global level, in addition to bolstering initiatives that drive innovation, research, and development within the African market, enhancing competitiveness and green trading practices. As part of its Africa Strategy, the Netherlands contributes towards the implementation of the African Continental Free Trade Area (AfCFTA). The AfCFTA is expected to boost intra-African trade over 30% by 2045 and is projected to provide an average extra 2.7% GDP boost across the continent. The AfCFTA could lift 30 million Africans out of poverty by 2035, offering market opportunities to both African...

What you need to know: They questioned the authorities on their commitment to ensuring that all cargo leaves the port within a maximum of five days after completing all customs procedures Dar es Salaam. Members of the East African Legislative Assembly (EALA) visited the Dar es Salaam port on February 8, 2024, and raised concerns over key challenges affecting users of the facility in particular and the central corridor in general. Led by the Chairperson of the Committee on Communication, Trade, and Investment (CTI-EALA), Rutazana Francine, Eala members highlighted the challenge of cargo delays and issues related to cargo storage facilities, which increase cargo handling costs at the port. "We started our visit on the central corridor on February 4. We meet stakeholders, including operators, investors, traders, and customs officials from both here and EAC member countries. Despite being satisfied with the performance of the port, they raised a few challenges," stated Rutazana, an Eala member from Rwanda. Ms Rutazana questioned the port management on their commitment to ensuring that all cargo leaves the port within a maximum of five days after completing all customs procedures. She expressed bewilderment at the persistence of complaints about cargo delays, leading to fines imposed on traders. “Another issue is the increased demand for the port; are there other areas for cargo storage to enhance efficiency?" she added. Responding to these concerns, Mussa Biboze, the representative of the director of the Dar es Salaam Port, said the port operates efficiently despite some minimal challenges,...

In Summary Trade policies, particularly the ad hoc restrictions to trade leading to export and import bans, have seriously affected grain trade in the region. Factors positively enabling regional cross-border trade in grains are the diverse agro-ecology that delivers a harvest of grains all through the year. Gerald Masila, Eastern Africa Grain Council (EAGC) Executive Director and JudyAnne Wanjiku, managing director EFKen Leasing Ltd (EFKen) sign a Memorandum of Understanding (MoU) to provide lease finance for mechanization to farmers and Micro, Small and Medium Enterprises (MSMEs). Image: EZEKIEL NG'ANG'A The grain trade in Eastern Africa struggles with quantity and its quality and safety. As a result these affect the price and health of the consumers. Star reporter Agatha Ngotho interviewed Gerald Masila, executive director, Eastern Africa Grain Council, about some of the challenges facing the grain trade in the region over the years. What is EAGC and what do you do? The Eastern Africa Grain Council is a membership council of firms and organisations in the grain value chains in the Eastern Africa region. It is not for profit and the main objective is to ensure quality and safe grain are produced and traded through the supply chain, in an efficient and inclusive manner resulting in minimised costs and increased return on investment. EAGC members include small holders, medium and large-scale commercial farmers, grain traders and warehouse operators who aggregate and trade in grains, processors who take in grain raw materials. What are some of value chains you deal with? Key cereals and pulses we deal with...