By Zephania Ubwani [email protected] Arusha — Prof Humphrey Moshi of the University of Dar es Salaam (UDSM) is one academician who would often argue constructively on a number of topical issues touching the country's economy and beyond with a bit of flexibility. That is why he minced no words when recently reached for comment on the Economic Partnership Agreements (EPA) which Tanzania declined to sign recently in Nairobi during a UN Conference on Development and Trade (Unctad) as had been expected alongside with some member countries of the East African Community (EAC). "This is a very pragmatic decision by government of the United Republic of Tanzania," he told The Citizen saying for a long time he had been advising not only Tanzania but all the EAC partner states not to sign the agreements for a number of reasons. "One; If we want to industrialise, then the agreements contradict our aspirations for that agenda. Two; Opening our economies to products from the European Union (EU) would kill even the small scale productive activities such as animal and chicken husbandry given that local products such as milk and eggs can hardly compete with the imported ones," he said. The economics professor went further by revisiting the colonial and post-colonial trade pattern between Africa and EU, saying it will persist by signing EPA, making Africa - and in this case the EAC - remain a perpetually source of raw materials while Europe will continue to be a source of industrial goods - for...

IN SUMMARY Companies that are export-ready and are motivated and willing to export helps them penetrate markets and make good sales, leading to business growth. However such initiatives have to collaborate with the government agencies responsible for promoting exports as that makes interventions sustainable. Over the past few years, the East African Community has made notable strides towards regional integration. Milestones such as the coming into force of the East African Customs Union, the establishment of the Common Market in 2010 and the implementation of the East African Monetary Union Protocol have all served to facilitate trade among member states. The volume of trade, however, has not grown at the envisioned rate, with some countries still having to play catch-up. Intra-EAC trading fell from $5.8 billion in 2013 to $5.6 billion in 2014. Even with this scenario, Kenya, Uganda and Tanzania continued to dominate regional trade as Burundi and Rwanda lagged behind. Overall, the share of intra-EAC trade, the region’s total trade fell to 10.1 per cent from 11.1 per cent in the same period, attesting to the existing imbalance in trade volumes among member states. Data from the Kenya National Bureau of Statistics shows that Kenya’s combined exports to Uganda, Tanzania and Rwanda declined from $69.9 million in January to $1.56 million in February, before rising to $88.8 million in March this year. Another study by Kenya’s Ministry of EAC in 2015 revealed that the Kenya’s exports to the EAC countries declined sharply. It attributed this to stiff competition from cheap...

JUBA (HAN) August 20.2016. Public Diplomacy & Regional Security News. The East African Community Extraordinary Summit scheduled for Dar es Salaam next month will not mediate the South Sudan conflict as the country is yet to attain membership status in the regional body. A spokesperson for Tanzania’s Ministry of Foreign Affairs, Mindi Kasiga, told The EastAfricanthat despite signing up to become an EAC member, South Sudan is yet to deposit instruments of ratification with the EAC Secretariat. Ms Kasiga said that the agenda for next month’s EAC Summit which had earlier been scheduled for August, 19, is an evaluation of the status of the ratification of the EAC Treaty by South Sudan. The postponement of the Extraordinary Summit was requested by the Kenyan President Uhuru Kenyatta, Ms Mindi said, without giving the reasons for the request. However, another source said that Tanzania had said it was not ready for the Summit. Tanzania has reiterated its support for mediation effort undertaken by leaders of the  Inter-Governmental Authority on Development (Igad), which is pressing the reluctant President Salva Kiir to accept the offer of beefing-up of peacekeeping troops composed of both Igad and UN, to avert a full-scale war in the world’s newest state. The UN agency for humanitarian affairs and emergency relief has warned that the situation in South Sudan could slide into “even worse humanitarian tragedy” if immediate preventive measures are not taken. The extraordinary summit will also deliberate on a report from the EAC’s mediator for the Burundi peace talks, the...

Tanzania is aiming at making transforming the corridor into a trade route of choice for eastern and central Africa. By Dias Nyesiga With over 70 percent of Rwanda’s maritime cargo passing through Dar es Salaam port, Tanzania is hastily addressing the demands of Rwandan traders mainly restoring the old infrastructure along the Central corridor. Although they are willing to use Tanzania’s Central corridor against the Kenya’s Northern corridor, Rwandan traders insisted there is need to rehabilitate roads along the central corridor which have been in existent for over the past 25 years. “We are worried that if more traders use the corridor, it will impact pressure on the roads which may lead to their breakdown and this would mean delays along the way,” said Theodore Murenzi, secretary General of Rwanda Long distance truck drivers Association told KT Press. As a result, the government has set aside over Tshs 30 billion in its current budget regime for the rehabilitation of road networks mainly in the central as well as a loan financing for revamping of its standard railway gauge.  “The road network in Tanzania is currently over loaded, but we are fixing breakages as we also look at standard railway gauge as a long term  solution to the infrastructure problem,” saidLawrence Mafuru, Treasury Registrar of the Government of the United Republic of Tanzania. Also, the Tanzania  Ports Authority has also resumed the wagon railway system between  Dar es Salaam to Isaka dry  port which  is expected to  cut  transport  costs for...

The opening of a liaison office for the Tanzania Ports Authority (TPA), scheduled on October 1, has been welcomed by Rwandan traders who will see their business get a lot easier. During a recent visit to Rwanda, TPA director general Deusdedit Kakoko said that the office in Kigali could reduce the costs for Rwandan importers by up to 20%. "We have been here for the last three days meeting exporters and importers to hear about their concerns. The cost of doing business through Tanzania is going to be lowered with the opening of the Kigali Liaison Office. There are also many improvements taking place at the port of Dar es Salaam and the Central Corridor in a bid to offer efficient and better services to our Rwandan clients," he said. The liaison office, which will be located in M. Peace Plaza, will bring the port's services closer to traders in order to reduce costs of doing business and hurdles in logistic and supply chain. Rwandan traders will no longer have to travel to Dar to clear their cargo. Kakokoalso observed that security services at the port have been upgraded to combat theft, among other measures. "We have also reduced the checking process from over 20 to 3 checkpoints, and consequently, transit is taking only three days from Dar to Kigali, down from the previous seven days," he explained. "Rwanda is a growing market and we are committed to facilitate our business partners. We vow to make sure that Kigali exporters...

Dr Magufuli, who doubles as the chairman of the regional economic grouping, mentioned some of the most persistent challenges as access to clean and safe water, improving transport infrastructures, strengthening health services and build industries that would lead to increase of employment and revenues. He noted this in a conversation with the EAC Secretary General, Ambassador Liberat Mfumukeko, at the State House in Dar es Salaam. “It would be more beneficial if you executives of the EAC make big efforts to ensure that member countries focus on addressing problems facing the people,” he said, adding: “if you manage to do this and work on reducing unnecessary expenditure, we will achieve more.” He commended Ambassador Mfumukeko, who took over the position last April, for coming up with good plans and strategies towards implementing the community’s objectives, including reducing expenditures, attract investors and closely supervise projects and programmes under the bloc. Mr Mfumukeko expressed satisfaction on the cooperation he receives from Dr Magufuli as EAC chairman and promised to perform his duties accordingly for the benefit of East Africans. Meanwhile, President Magufuli said goodbye to former Country Representative of the United Nations Population Fund (UNPF), Dr Natalia Kanem, who has recently been appointed to the post of Deputy Secretary General and Deputy Executive Director of the organisation. Dr Magufuli commended Dr Kanem for being appointed to the new position, saying he was optimistic that she is going to be a good ambassador for Tanzania, particularly on influencing the United Nations to help...

Presidents of East African Community partner states recently announced they were banning imports of used clothes, locally known as caguwa. They gave sound economic reasons for the ban: promoting the local textile industry and other economic activities linked to it, creating jobs, raising taxes, and so on. There was even an appeal to a sense of pride. Wearing clothes someone else has discarded (in Rwanda that is called gukuburirwa) is not exactly dignified. No one goes around proudly showing off such clothes (ibikuburano). Despite these good reasons, the decision was bound to be contentious. And it was, by East Africans. Importers and wholesalers, big retailers in the towns and smaller ones in the village markets for whom it is good business wouldn’t let go without at least making some noise. Ordinary people also find second-hand clothes very affordable. That was to be expected and is understandable. Which is why East African leaders announced a phase-out period for the ban to be fully implemented. But now stiffer opposition to the ban on used clothes has come from an unlikely quarter – or maybe it is not so unlikely – the United States. Uganda’s Daily Monitor newspaper reported Wednesday, August 17 that the US Ambassador to Uganda warned the country against implementing the ban. Amb. Deborah Malac is reported to have issued the warning when she made a courtesy call on the Speaker of Uganda’s parliament, Rebecca Kadaga. Don’t be fooled by nice diplomatic words like “courtesy call”. They do not always...

Rwandan importers and exporters will no longer need to travel to Dar es Salaam port, thanks to a move by the Tanzania Ports Authority (TPA) to open a liaison office in Kigali in October. The decision was announced by the TPA Director General, Eng Deusdedit Kakoko, during a press conference over the weekend in Kigali. The press conference was also attended by the Treasury Registrar, Mr Lawrence Mafuru who headed the Tanzania delegation to Rwanda. "This is a clear testimony that Tanzania is committed to improve business environment to our clients in the neighbouring countries," Eng Kakoko told journalists, adding that TPA has vowed to make sure that Kigali exporters and importers using Dar port will continue to enjoy best possible services. He noted that having a TPA liaison office means that services shall be brought near to customers in order to cut down costs of doing business and reduce hurdles within the logistic and supply chain. The opening of the office means that business community will not be obliged to travel all the way to Dar es Salaam to clear their cargo; a step seen as healthy since it will help serve time. The liaison office will be a One Stop Centre whereby customers will be able to access information such as status of their cargo, applicable port charges, make payments through Electronic Payment System (EPS) and attend to any queries. "We call upon all our customers to make effective use of this office once opened and take advantage...

The East African Community has, over the past decade, been undergoing an integration process to open up opportunities for its over 146 million citizens by creating a larger market for business players in the region. The initiative also seeks to reduce the cost of trade and improving intra-regional trade that is still low compared to other trading blocs across the world. These efforts have already started to bear fruit with a recent World Bank report, “Connecting to Compete 2016: Trade Logistics in the Global Economy” showing that the bloc had registered improvement in the movement of goods across borders. The survey ranked trade logistics performance of 160 countries globally. Interestingly, administrative as well as trade and transport reforms in the EAC region have had the greatest impact on logistics compared to infrastructure investments. This has translated into faster transit times and shorter dwell times, according to the report. It indicates that the average dwell time at Mombasa port reduced from 13 days in 2006 to about three days, while the Malaba border crossing point between Kenya and Uganda registered a decrease in border clearance times from 24 hours to six hours. The average time taken to move cargo from Mombasa to Kampala dropped to three days from 18 days, while Mombasa to Kigali now takes about six days compared to 21 days previously. All these developments have helped reduce the cost of doing business by 50 per cent. So, it is crucial that while regional governments promote hard infrastructure development,...

Efforts to advance the East African Community have often veered between halfhearted and impractical. The regional grouping must adapt – via strong yet achievable economic steps – in order to progress. For some, the 1977 dissolution of the East African Community (EAC) finally marked the forlorn end of Africa’s decades-long flirtation with Pan-Africanism. For others, it represented the triumph of sovereignty and nationalism over unrealistic infatuations with asymmetric economic marriages. The last fifteen years of the organization’s newest iteration have fallen somewhere in between the two – with ambitious pronouncements foreshadowing economic and even political integration coexisting withregional rivalries that have threatened to scupper the entire project. However, what is most needed is not wasted political capital nor governments looking inward, but a balanced solution: concrete steps to solidify the existing union and increase free flows of capital and labor, while giving each of the EAC’s member states the ability to craft domestic policies to suit their own domestic environments. How to achieve this? First, focus on improving the EAC’s economic mainstay – the customs union that binds together Tanzania, Kenya, Uganda, Rwanda, Burundi, and, very soon, South Sudan. It all starts with the Customs Union Since 2005, EAC member states have been able to trade goods and some services with each other free of tariffs, in most cases. They have also synchronized and often reduced most of their external tariffs, reducing the transaction costs of international trade for foreign exporters and reducing the likelihood of one East African state...