News Categories: Tanzania News

Africa: Amidst Brexit Woes, Africa Forges Ahead With Integration

In the days after Brexit, markets plunged, the Pound went into free fall, a Prime Minister resigned and the future not only of the UK, but also the European Union seemed uncertain. Beyond the reasons that divided people over this vote and its economic and political ramifications; is a growing frustration with inter-governmental integration models. Why then - with the woes of the European Union so visible - is Africa forging ahead with an ambitious plan to accelerate the free movement of Africans and integrate national economies beyond border communities and physical proximity? There are three reasons for these interesting points of divergence. The first is that the contexts between Europe and Africa are dramatically different. The European Union (EU) is the most integrated region globally. For at least 50 years, Europeans have enjoyed the benefits of integration. A large population of the EU has never known what it is to demand for visas while traveling in the region, or seek work permits to work elsewhere in Europe than their home-countries. On the contrary, Africans have a completely parallel experience to this. Africa is the most fragmented continent worldwide, and its people suffer the cost of non-integration on a daily basis. This fragmentation was imposed on Africa, and what is happening now is that we are working to reverse this process, without violating the principle of sovereignty. The second reason is the different centralised and decentralised models of governance between the European Union and African Union. The European Commission has...

East Africa: Mauritius Investors Eye to Penetrate EAC Market

Arusha — Industrial investors and other producers operating in Mauritius intend to penetrate the East African market and they plan to start off this initiative by staging a special manufacturer exhibition in Arusha next October. That apparently has resulted from the working visit to the Indian Ocean Commission in Mauritius, by the Secretary General of the East African Community, Ambassador Liberat Mfumukeko, who has just concluded the trip there following an invitation by the Secretary General of the IOC, Mr Jean Claude de l'Estrac. The Indian Ocean Commission (IOC) is a regional integration organization that has memberships of Mauritius, Comoros, Seychelles, Madagascar and France. The IOC now wants to work closely with the East African Community, according to an official statement from the EAC Headquarters in Arusha. Apart from visiting IOC, Amb Mfumukeko also seized the opportunity to market EAC to the Mauritius Private Sector stakeholders, including meeting with the Mauritius Chamber of Agriculture; Mauritius Chamber of Commerce and Industry; Enterprise Mauritius; Mauritius Investment Authority; Business Mauritius; and Mauritius Export Association.  As it happens, almost all the stakeholders met expressed the need to explore investment and business opportunities between Mauritius and the EAC Partner States. Mauritius exports 400,000 tonnes of sugar annually. The Mauritius Chamber of Agriculture and several other private sector players expressed their readiness to penetrate the EAC market and urged the Secretary General to link them with the East African Business Council (EABC), the private arm of the East African Community, in order to strengthen collaboration in...

Digital Transformation In Education Key To Stirring Growth In East Africa

Africa’s ‘skills of the future’ requires firm partnerships between NPOs, private and public sectors There’s an ongoing discussion about development in East Africa and a new narrative have emerged in recent years that it is a lot more exciting. It is a story of resilience, self-reliance and a passion for growth facilitated largely by technology. It is therefore encouraging to see trade investments being committed by South Korea and its East African counterparts, as it will allow more people to access technology and address the issues of skills and employment. Case in point is the signing of a bilateral deal to set up a key science and technology institute in Kenya for a tune of 10 billion Kenyan Shillings which could prove to be an important accelarator of growth. But the issue of education, skills and employment are not for the public sector alone. It is against this backdrop that Samsung Electronics Africa have adopted an attitude of innovation; introducing world-class technology where it previously hasn’t existed. Our aim is to make sure that every African child have access to education no matter where they are – be it in a rural area lacking infrastructure or perhaps in an existing infrastrastructure but lacks educational resources – by providing access to technology. Samsung sees education as the seed of innovation and we believe digital technology can completely transform the learning process, as well as the nature of teaching and learning, to create inclusive environments for everyone. Our Solar Powered Internet Schools,...

East African Community dithers on trade deal with EU

NAIROBI — Kenya may abandon 10 years of negotiating a trade deal with the European Union (EU) as part of the regional East African Community bloc and go it alone, to avoid having duties of as much as 30% slapped on its exports from October. A so-called Economic Partnership Agreement (EPA) between Kenya, Uganda, Tanzania, Rwanda and Burundi and the EU is on hold after Tanzania’s government said two weeks ago it was reluctant to sign any deal because of "recent developments affecting the bloc’s union". The UK voted in a referendum on June 23 to withdraw from the EU, ending a 40-year partnership. Uganda said last week it also wants to delay signing the deal. "We would like to sign it together; the desire is that we sign it together," KenyanForeign Minister Amina Mohammed said in the capital, Nairobi, last week. "If we get to a stage where we can’t do that then we also have the right to make our own sovereign decisions." The negotiated EPA would give members of the EAC immediate duty-free, quota-free access to the EU for all exports. The Brexit decision is complicating trade negotiations as ministers from around the world gather this week for the14th United Nations Conference on Trade and Development in Nairobi, where the EPA accord has been scheduled to be signed. The EU imported goods worth €2.6bn from theEAC last year, data from the European Commission shows. Kenya exported 126-billion shillings ($1.2bn) worth of goods to the EU in 2015,...

East Africa: EAC, Mauritius for Stronger Trade Ties

Arusha — East African Community (EAC) is exploring investment and business opportunities with Mauritius, an Indian Ocean state that is famous for sugar exports and lately development in technological innovations. In order to initiate the collaboration, Enterprise Mauritius is set to organize a visit and an exhibition to the EAC in October this year in which over 15 key manufacturers from the archipelago will participate. This was revealed here after last week's visit to Mauritius by EAC Secretary General Liberat Mfumukeko during which he seized the opportunity to market the bloc to the Mauritius private sector stakeholders, including the Mauritius Chamber of Commerce and Industry and another one responsible for agriculture. He also conferred with senior officials of Enterprise Mauritius, Mauritius Investment Authority, Business Mauritius and Mauritius Export Association. Mauritius exports 400,000 tonnes of sugar annually. "All stakeholders met expressed the need to explore investment and business opportunities between Mauritius and the EAC partner states," said Mr Owora Richard-Othieno, the spokesperson of the community and head of the Corporate Communications and Public Affairs Department. He said the Mauritius Chamber of Agriculture and several other private sector players expressed their readiness to penetrate the EAC market and urged Mr Mfumukeko to link them with the East African Business Council (EABC), the private arm of EAC, "in order to strengthen collaboration in trade, investment and mutual cooperation". It emerged during the visit that the Mauritius Board of Investment has also invited the Investment Promotion Authorities/Agencies in the EAC member countries for a...

Brexit threatens East African cohesion as Kenya mulls go-it-alone trade deal

NAIROBI — Kenya may abandon 10 years of negotiating a trade deal with the EU as part of the five-nation East African Community and go it alone, to avoid having duties of as much as 30% slapped on its exports from October. A so-called Economic Partnership Agreement (EPA) between Kenya, Uganda, Tanzania, Rwanda and Burundi and the EU is on hold after Tanzania’s government said two weeks ago it was reluctant to sign any deal because of "recent developments affecting the bloc’s union". The UK voted in a referendum on June 23 to withdraw from the bloc, ending a 40-year partnership. Uganda said last week it also wanted to delay signing the deal. "We would like to sign it together; the desire is that we sign it together," Kenyan foreign secretary Amina Mohammed said in an interview in the capital, Nairobi, last week. "If we get to a stage where we can’t do that then we also have the right to make our own sovereign decisions." The negotiated EPA would give members of the East African Community immediate duty-free quota-free access to the EU for all exports. The Brexit decision is complicating trade negotiations as ministers from around the world gather this week for the 14th United Nations Conference on Trade and Development (Unctad) in Nairobi, where the EPA accord has been scheduled to be signed. The EU imported goods worth €2.6bn from the East African Community last year, data from the European Commission shows. Kenya exported 126-billion shillings ($1.2bn)...

Continental Free Trade Area to set off in Africa next year: AU official

KIGALI, (Xinhua) -- The long anticipated Continental Free Trade Area (CFTA) project is expected to set off next year, a top African Union Commission (AU) official revealed on Wednesday. Fatima Acyl, the Commissioner for Trade and Industry said that CFTA projects has secured 20 million U.S. dollars funding for the initial plans that comprises of trade in goods, trade in services, investment and intellectual property. “The trade in goods is expected to include tariff liberalization, rules of origin, dispute resolution, trade facilitation and customs procedures,” Acyl told Xinhua in an interview at the ongoing 27th African Union Summit in Kigali, Rwanda. She said that the AU is currently developing a capacity building plan in accordance with the needs expressed by member states before rolling out activities. Out of the amount secured so far from development partners, AU member states have contributed 3 million U.S. dollars for 2016 and 4.9 million U.S. dollars for the year 2017. She attributed trade and industry as the catalyst for Africa’s development adding that once the CFTA comes into force there will be increased competitiveness in industrial products through the harnessing of the potential of economies in a broader continental market. Acyl noted that the initiative will also help increase the rate of diversification and transformation of Africa’s economy, better allocation of resources, reduced price amongst the countries and reduced vulnerability of Africa to external trade shocks. She said that besides introducing Africa’s electronic passport, so far 10 countries avail visas to their citizens on...

UNCTAD talks to tackle illegal trade flows

This comes as the United Nations Conference on Trade and Development (Unctad) enters its second day in Nairobi today. The event, themed ‘From Decision to Action: Moving Towards an Inclusive and Equitable Global Economic Environment for Trade and Development,’ has attracted 194 countries who hope to agree on a win-win formula for trade. Yesterday, the event opened with focus on sustainable investments. Various leaders are also gathering to share on how public-private partnerships can bridge the over Sh250 trillion investment gap. But with many African countries depending on the commodities market, a discussion dubbed ‘Breaking the Chains of Commodity Dependence’ was accorded more significance. Participants had two days, from last Friday, to discuss how countries could adapt to the twin shocks of lower commodities prices and shrinking demand from emerging economies. According to the latest study by Unctad, it is estimated that some commodity-dependent developing countries are losing as much as 67 per cent of their billion dollar export earnings due to trade inaccurate invoicing. The study, which is the first to analyse this issue for specific countries and the respective commodities, found that trade mis-invoicing is among the largest drivers of illicit financial flows from developing countries. Released during the Unctad Global Commodities Forum,the study analyses commodities such as cocoa, copper, gold and oil from countries like Chile, Côte d’Ivoire, Nigeria, South Africa and Zambia. Wrong invoicing, according to Unctad findings, costs such countries valuable foreign exchange earnings, taxes and income that might otherwise have been spent on development....

Reprieve as ban on second-hand clothes put on hold for three years

Dealers in second-hand clothes and shoes now have a reprieve after it emerged that member states of the East African Community (EAC) may not enforce a ban — imposed early last year — on these items for the next three years. Ronah Serwadda, the acting director at Uganda’s Ministry of East African Affairs said that the presidents agreed that a three-year grace period is necessary to conduct a study to find out whether the region has the capacity to produce its own garments once the ban on secondhand clothes and shoes becomes operational. “Bringing used clothes and shoes into the region is not helping us to develop our industries,” she toldThe EastAfrican. “Studies will help us find out whether we have the skills, cotton and yarn to produce enough to replace the products that will be banned.” The presidential directive to ban the importation of used clothes is aimed at boosting the domestic textile industry. Speaking at the launch of the United Nations Economic Commission for Africa (Uneca) report dubbed Transformative Industrial Policy for Africa in Kampala last week, Ms Serwadda said that the three-year grace period would also allow the region to take stock of which countries have the capacity to produce which products. While experts at the meeting termed the EAC’s focus on its textiles sector as a step in the right direction, they said that there is a need for the region to do more than just take stock of its production capacities. Rogers Mukwaya, an economic...

Burundi peace talks collapse in Arusha

After a year of a political crisis, the East African Community last week declared Burundi safe enough to host its activities. But human-rights organisations believe it is a “false calm” in which violence could erupt at any time due to the economic slowdown and ethnic tensions. They say the country is governed through repression that is hidden from the public eye. The Intra-Burundi Dialogue resumed in Arusha on Tuesday, but representatives of five parties that participated in Burundi’s general election boycotted the second round of peace talks facilitated by former Tanzanian president Benjamin Mkapa. The government officials walked out protesting the presence of some participants they accuse of planning to overthrow President Pierre Nkurunziza’s regime. Mr Mkapa had travelled to Belgium to meet key opposition stakeholders in an effort to end to the crisis that has rocked the country for more than a year. But this did not go down well with the government, which maintains that it will not negotiate with those who organised the failed coup last year. “The long awaited truth will not come from Arusha, because the dialogue outside the country is for selfish politicians,” said Jelase Ndabirabe, spokesman for the ruling party CNDD-FDD. However, members of civil society criticised the government’s rigid stand on the talks. “It is not for the government to refuse to dialogue with people who are opposed to its policies. Dialogue is normally with those you have a disagreement with, and not your allies,” said Gabriel Rufyiri, a civil society leader....