KAMPALA, UGANDA - Most of us dread sitting for examination papers. The East African Community (EAC) at Summit level of Heads of State should be no exception. There is a big problem in the neighbourhood. This year the EAC will have to sit the paper on ‘relevance of good governance in the integration process’, because the Burundi situation is getting out of hand. Failure will be a huge setback in the aspirations for a Common Market. Success however, will make the EAC that much stronger and more competitive as a investment destination. Burundi is tittering at the edge of an abyss. Foreign investor confidence is being tested. Uncertainity does not attract money. It simply scares it away, but the Burundi opposing parties remain stuck in their uncompromising positions. This has put the rest of the EAC in a muddle. Worse still, all efforts at peace-making have been soundly rebuffed, including the manhandling of EAC Secretary General, Amb. Richard Sezibera last October. The African Union has fared no better. The Burundi government was scalding in December when the AU mooted a force of 5000. There is nothing as frustrating as being caught up in a situation that is not of your own making. Both Rwanda and Tanzania have had to take in refugess, which  puts an added strain on their national budgets. A quick response came from Germany, who offered $18 million in appreciation of Tanzania’s efforts to handle the influx. Other help is hard to come by. The United Nations High...

The dream of a unified African market took a giant leap towards reality following the signing in Cairo, Egypt, in June 2015 of a Tripartite Free Trade Area (TFTA), bringing together EAC, COMESA & SADC blocs. With South Africa and Egypt, two of Africa's leading economies, driving the 26-country TFTA participants, experts are now advocating for, among others, good governance and prudent macroeconomic policies to reap the full benefits of the agreement. For several years, experts from the three largest trading blocs in Africa — the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) — were locked in intense negotiations over a free trade agreement whose aim is to bring about a unified and liberalised single market. The talks finally bore fruit on 10 June 2015 when 26 African countries signed the Tripartite Free Trade Area (TFTA) agreement in Cairo, Egypt. "The conditions [to form the TFTA] have never been better Under this agreement, all the 26 countries, with a combined gross domestic product (GDP) of about $1.3 trillion and a population of 565 million, will merge into a common market and eliminate tariff lines and trade barriers. The participating countries will benefit from liberalised intra-regional trade, which is expected to boost the flow of goods and services. When implemented, the free trade area will constitute about half of Africa's GDP, half of its population and will cover a combined landmass of 17 million square kilometres, about the...

Arusha — Embattled Burundi President Pierre Nkurunziza may be stopped from assuming the chair of the East African Community (EAC) Heads of State Summit if a petition filed by human rights groups in Africa is given a nod by relevant regional bodies during its hearing which kicks off here today. The Pan African Lawyers Union (Palu) and other petitioners from within and outside the region want the Burundi leader stopped from taking over the rotating chairmanship of EAC until he resolves the political, human rights and humanitarian crisis in his country. The petition was submitted to the East African Legislative Assembly (Eala) and is set for hearing at the EAC headquarters beginning this morning at a time the mediation efforts among the warring parties in Burundi are yet to bear fruit and with the humanitarian crisis there worsening. President Nkurunziza, whose country is one of the EAC partner state, is expected to assume the Chair of the regional Heads of State during the coming Summit, whose date and venue is yet to be announced. He will take over from President John Magufuli. According to the EAC Treaty, the tenure of office of the Chairperson of the Summit is one year and the office of the Chairperson shall be held in rotation among the partner states. Currently there are five the others being Uganda, Rwanda and Kenya. Subject to the provisions of the Treaty, the Summit shall determine its own procedure, including that for convening its meetings for the rotation of...

For a long time, the 54 countries of Africa have been a patchwork of different languages, laws, and currencies, making travel (let alone business) on the continent quite an endeavor. Indeed, for businesses, for a long time being in Africa has required moving from country to country, which too often means more than just navigating a map and changing money—it includes meeting different standards, understanding different laws, and paying different tariffs at every (and there are many) border crossings. At the same time, African countries, many landlocked and small, face unique challenges in being able to scale industries and access markets. How might Rwanda export its coffee if it has no access to the ocean? How might a line of countries best collaborate to create a railroad or road spanning their collective land for the benefit of all? How might countries with different advantages integrate into global value chains? And so, in 1991, 51 heads of state and government signed the Abuja Treaty, which established a roadmap towards an African Economic Community to be completed by 2028. In 2013, the African Union, created Agenda 2063—a vision and action plan—which, among other objectives, sets out to better integrate the continent to circumvent and even knock down these obstacles to trade, investment, and overall economic growth. Thus, the African continent has been creating and fostering “regional economic communities” with the aim of facilitating trade and eliminating economic bottlenecks. Eight of these communities, as seen in Figure 1, are the “building blocks” of...

Transport costs have reduced by up to 40 per cent in the last four years across the East African Community (EAC), a new report has revealed. According to the 2015 East Africa Logistics Performance Survey, improvement of Mombasa Port operations and ongoing infrastructure projects in the EAC had contributed to the trend. The report says average transport rates between Mombasa and other major towns of East Africa had been on the decline from 2011 to 2015. The reduction has been attributed to efficient operations in handling of cargo that is going parallel with improved infrastructure. “The average cost of transporting a 40-foot container from Mombasa to Nairobi gradually reduced from a high of Sh130,000 per 40-foot container to Sh100,000. “The trend is replicated on the Juba route which registered a drop from a high of Sh980,000 to a low of Sh550,000,” read part of the report. The survey further attributes this to a plunge in fuel prices which in turn increased the number of fleet trucks that lead to cut-throat competition among truckers. Decline rate “The route with the highest rate of decline was Juba at 44 per cent while the least gainer was Bujumbura with a 14 per cent increase,” it added. However, this was quite the opposite of the Central Corridor which Tanzania is part of where on average the transport rate increased by 39 per cent over the same period; Kampala rates increased by 79 per cent while Bujumbura remained relatively stable at three per cent. “EAC...

Just before the December festive season got underway last year, East African Community (EAC) Secretary General, Amb. Richard Sezibera and Arancha González, the International Trade Centre Executive Director announced a joint project to boost intra-Africa trade. Note that intra-Africa trade is less than 15% of overall African trade, which makes this project important and worthy of strong support. Dr. Sezibera said the deal will contribute to improving the global competitiveness of the EAC region and to trigger sustainable economic growth. Implementation of the five-year $8.5 million TRIP for EAC project is set to begin this month. The government of Finland has also pledged to provide initial funding. According to the EAC Secretariat, the new initiative aims to strengthen existing efforts by East African countries for closer economic integration, including the East African Customs Union, and the 2010 establishment of the EAC Common Market. ITC is the joint agency of the WTO and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the UN Global Goals. The TRIP for EAC project also sets out to support the African Union's Action Plan for Boosting Intra-African Trade and the recently agreed tripartite free-trade agreement among the Common Market for Eastern and Southern Africa (COMESA), the EAC and the Southern African Development Community (SADC). ITC and the EAC will intervene at three levels to provide integrated solutions to...

Waturi Matu is a Kenyan and serves presently as director, business environment at TradeMark Africa but has before now served in different capacities in different organizations within the travel industry and is popular for her strong views and advocacy for united Africa front when it comes to developing and promoting the travel industry. She speaks with ANDREW IRO OKUNGBOWA on her life’s trajectory and engagement with the industry What attracted you to the travel industry? The universe conspired. I returned from a year’s stay in South Africa, and a board member of the Kenya Association of Travel Agents (KATA) reached out to me as they were looking at hiring a chief executive officer. At that time, I knew nothing about the travel and tourism industry apart from being a ‘traveller and tourist.’ However, business issues are largely the same. So, I decided to give it a shot and to learn the particulars with regards to policy and regulatory matters in travel and tourism, governance and business support services for membership organizations. I worked at KATA for four years before joining the East Africa Tourism Platform where I did three years. Both bodies left me richer (not money wise of course) than they will ever know. However, I left the organizations with stronger revenue bases, policies and financial systems to ensure their long-term sustainability. What was the motivation for all the years you worked in the various organizations where you have left indelible prints especially at EATP? The travel and tourism...

The end of one year and the beginning of another always induce mixed feelings. On the one hand, one is glad to have crossed into the new year. On the other, even for the most irrepressible of optimists, as the new year begins, questions arise as to what the next 12 months will bring. Within my local community, the passing of the previous year is celebrated as though it was a virulent disease, as implied in the greeting “Gukulike, omwaka!” (Congratulations; you survived it!) For me, as 2016 kicked in, existential pre-occupations were far from what was on my mind. It was firmly fixed on matters political, and kept shifting from national to regional to continental issues. What did they mean? In what has for long qualified as one of Africa’s violence “hotspots,” the Great Lakes region of East Africa, Tanzania and Kenya, traditionally its “islands of stability,” remained pretty much off the headlines. Beneath the surface, however, in Tanzania questions continued to loom large over the “Magufuli effect,” one of them being whether the path the country’s new president had chosen, of literally turning things upside-down in pursuit of a clean government, represented a permanent turning point or a mere blip before sleaze returns in full force. For Kenya, only a few years ago, many East Africans were worried sick about the country imploding and pulling the rest of us down with it. You need to live in Uganda, Rwanda, Burundi and South Sudan to appreciate the importance of...

The South Sudan Transitional Government of National Unity will be formed on January 22 after the four partners to the peace deal agreed on sharing ministerial portfolios. The four partners — the government, Sudanese People’s Liberation Movement-in Opposition (SPLM-IO), former detainees and other political parties — struck the deal on Thursday in a meeting held under the Joint Monitoring and Evaluation Commission (JMEC) led by the former president of Botswana, Festus Mogae. After four days of haggling, it was finally agreed on January 7 that the government will take 16 ministerial posts and SPLM-IO 10 while the former detainees and other political parties got two posts each. The mood in Juba is that every group is satisfied with the posts they got although there was an earlier attempt by the government to negotiate with other stakeholders outside the cluster given by the Inter-Governmental Authority of Development (Igad)-brokered peace agreement. Igad had divided the 30 ministerial posts into Governance, Security and Services, yet when it came to implementation, there was competition over key ministries namely Foreign Affairs, Finance, Petroleum, Internal Security and Defence. While the government got key ministries such as Finance and Planning,  Defence and Veterans’ Affairs; it was cancelled out be giving SPLM-IO equally key posts of Petroleum and Interior, while the former detainees got Foreign Affairs and International Co-operation and Transport; and the other political  parties were rewarded with ministries of Cabinet Affairs and  Agriculture and Food Security. “Peace has finally come to South Sudan after a long...

History was made in recent days. Top trade and development officials from all across the globe gathered December 15-18 to discuss economic growth opportunities and international commerce — the World Trade Organization’s (WTO) Ministerial Conference — and that meeting took place … in Kenya. It was the first time that this biennial meeting of the world’s key trade decision makers has ever been held in East Africa. That’s not a coincidence. While much of the world is battling economic uncertainty and tepid growth, the nations of the East Africa Community (EAC) — Kenya, Burundi, Rwanda, Tanzania and Uganda — are quietly putting into place the building blocks for substantial growth, productivity increases and profitable trade opportunities. East Africa’s aggressive steps have not gone unnoticed, as evidenced by the WTO’s decision to convene its all-important Ministerial Conference in Nairobi.While the WTO Ministers negotiated programs, rules and agreements for the global marketplace, key private sector representatives, thought leaders and economic development officials from around the world were also in Nairobi going about the equally important task of actually making trade, investment and growth a reality. This included Canadian officials who have made clear their interest in doing business in and with East Africa, particularly in the energy and mining sectors. This conference, the annual Trade and Development Symposium (TDS), is where critical stakeholders have an opportunity to confer and share ideas for creating greater opportunities for enhanced trade and sustainable growth; it offers a unique and vital platform for wider discussions that...