Tanzania may never sign Economic Partnership Agreements (EPA) deal so as to protect Chinese-brokered industrialisation plan and safeguard its national budget. Sources privy to the issue within the Ministry of Industry, Trade and Investment confided to The EastAfrican that Dar es Salaam has declined to sign the deal that would turn the country into a source of raw material for European Industries. On different occasions, Tanzanian officials have said that Dar es Salaam is reconsidering an earlier decision to make sure that it is done to the best interest of the country. Susan Kolimba, Deputy Minister for Foreign Affairs, East African, Regional and International Co-operation, said Tanzania is only cautious on signing the EPAs and it has gone back to government discussions before it is deliberated. “At this stage we cannot say we are will sign or not but we must make sure that we sign or decline to the best interests of our people…we are still discussing to the Government level,” she said. Clarifying on contentious issues, Minister for Trade, Industries and Investment Charles Mwijage Tanzania concerned is that the EPAs proposed zero rate for all imported goods will put Tanzania on a losing end. “Under the Common External Tariff of the EAC when you raw material you charge zero percent levy, while intermediate products attract 10percent and finished products are charge 25 per cent while under…all these will not be there under the EPAs; we have to discuss this and see how we can lose under these agreements,”...

In the days after Brexit, markets plunged, the pound sterling 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 the 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 context in Europe and Africa is dramatically different. The European Union is the most integrated region globally. For at least 50 years, Europeans have enjoyed the benefits of integration. A large part of the EU population has never known what it is like to be asked for visas while travelling in the region, or seek work permits to work elsewhere in Europe. On the contrary, 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 we are now working to reversethisprocess, without violating the principle of sovereignty. The second reason is the difference in the models of governance between the European Union and the African Union. The European Commission has the power to make regulatory decisions on behalf of all EU members. This very centralised...

In the days after Brexit, markets plunged, the pound went into free fall, a prime minister resigned and the future of the UK and the European Union seemed uncertain. Beyond the reasons that divided people for this vote, and beyond its economic and political ramifications, it’s clear that there 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 why Africans want greater integration between their countries. Firstly, the contexts between Europe and Africa are dramatically different. The EU is the most integrated region globally, and we’ve watched over the last 50 years as Europeans have enjoyed the benefits of integration. A large population of the EU has never known what it is to have to demand visas while travelling in the region, or seek work permits to work elsewhere in Europe than their home countries. Meanwhile, Africans have a completely different 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. But now we are working to reverse this process, without violating the principle of sovereignty. Having said that, this year’s 27th African Union Summit took place in Rwanda only three weeks after the Brexit vote. Should pro-African leaders be worried...

Members of the East African Community are split down the middle again after Uganda joined Tanzania in pulling out of signing a trade pact that is key to continued access to the European Union market without paying duty. Although Kenya, Rwanda and Burundi are ready to sign the Economic Partnership Agreement (EPA) with the EU, World Trade Organisation rules do not allow countries aligned to a trade bloc to sign up individually. Uganda indicated last week that it was not going to sign until the bloc had reached a common position on all issues. “Everyone, including the EU is now agreed that we don’t sign,”  said Julius Onen, the Permanent Secretary in Uganda’s Ministry of Trade. “We must have a common position on all the issues. As EAC, we maintain solidarity and want to move together as a common market. It’s now the agreed position, even for the EU, that we have to sign together,” he added. A week ago, Aziz Mlima, Permanent Secretary in Tanzania’s Ministry of East Africa, said the country would not sign the agreement following the vote by Britons to leave the EU. “Our experts have analysed the pact and established that it will not be to our local industry’s benefit. Signing this pact at the moment would expose young EAC countries to harsh economic conditions in post-Brexit Europe,” Dr Mlima said. On Thursday, Tanzania’s Minister for Trade, Industries and Investment Charles Mwijage said Britain was Tanzania’s key trade partner in Europe. “Internationally, we trade with Britain, China, India and South Africa. When...

The African Union Passport that is expected to be officially launched during the 27th African Union Summit is considered a prodigious triumph for the continent and it will ease free movement of people, spur economic growth and development as well as promote Intra-African trade. Regional trade integration has long been a strategic objective for Africa yet, despite some success in eliminating non-tariff barriers within regional communities, the African market remains highly fragmented. A range of non-tariff and regulatory barriers still raise transaction costs and limit the movement of goods, services, people and capital across borders throughout Africa. With the promotion of Intra-African trade, it will boost and ease doing business within African countries which later will reduce the trade deficit among African nations. According to the Rwanda’s Foreign Affairs Minister Louise Mushikiwabo, the issuance of African passport is among the African strategic initiative intended to come as a possible rescue to disband all the restrictions to move which will eventually create a conducive environment for Africans to trade with each other. “Rwanda is ready for the AU Passport issuance. Other countries will also be working towards implementation of this decision. The free movement of people in Africa will spur our economic growth,” she said during a press conference today 14 July 2016 organised in the sidelines of the African Union Summit currently holding at the Kigali Convention Center (KCC), in Rwanda. During the Ordinary Session of the Assembly of the African Union that convenes on Sunday this week, African Heads...

Members of the East African Community are split down the middle again after Uganda joined Tanzania in pulling out of signing a trade pact that is key to continued access to the European Union market without paying duty. Although Kenya, Rwanda and Burundi are ready to sign the Economic Partnership Agreement (EPA) with the EU, World Trade Organisation rules do not allow countries aligned to a trade bloc to sign up individually. Uganda indicated last week that it was not going to sign until the bloc had reached a common position on all issues. “Everyone, including the EU is now agreed that we don’t sign,”  said Julius Onen, the Permanent Secretary in Uganda’s Ministry of Trade. “We must have a common position on all the issues. As EAC, we maintain solidarity and want to move together as a common market. It’s now the agreed position, even for the EU, that we have to sign together,” he added. A week ago, Aziz Mlima, Permanent Secretary in Tanzania’s Ministry of East Africa, said the country would not sign the agreement following the vote by Britons to leave the EU. “Our experts have analysed the pact and established that it will not be to our local industry’s benefit. Signing this pact at the moment would expose young EAC countries to harsh economic conditions in post-Brexit Europe,” Dr Mlima said. On Thursday, Tanzania’s Minister for Trade, Industries and Investment Charles Mwijage said Britain was Tanzania’s key trade partner in Europe. “Internationally, we trade with Britain, China, India and South Africa. When...

Twenty-six African countries have failed to agree on how traders would access a market of more than 600 million people through the proposed Tripartite Free Trade Area (TFTA), blurring expansion plans by companies. The EAC, Common Market for Eastern and Southern Africa (Comesa) and Southern African Development Community (SADC) have differed on the kind of preferential treatment sensitive goods and services from one bloc would be offered in another. The 12-month period for negotiations expired on June 30. "We were to complete this work by last month (June) but we did not reach an agreement. There are still challenges," said Mark Ogot, a senior assistant director in-charge of economic affairs at Kenya's Ministry of East African Affairs. It is understood that though the blocs have reached a common position on the proportion of tariff lines to be liberalised they have broken ranks over a common tariff to be applied on sensitive products such as maize, wheat, sugar, textile and cement which are considered essential in spurring the growth of domestic industries. The EAC countries have agreed to liberalise 37 per cent of the tariff lines estimated at 5,600 items. This would allow about 2,000 items excluding sensitive items to enter member countries at zero duty. The other goods would be charged duty at the rate of 10 per cent for intermediate goods and 25 per cent for finished goods. Southern African Customs Union - the SADC Customs union - has agreed to remove duty on 60 per cent of its...

Value Added Tax (VAT) on auxiliary services, widely referred to as VAT on Transit Goods has of recent attracted a lot of criticisms from stakeholders, mainly those using Dar es Salaam Port. Brought by the new VAT Act of 2014, the VAT on transit goods became operational from the last financial year. Since the Tanzania Revenue Authority (TRA) started applying such tax, the interested parties of the Dar es Salaam port were displeased. Their concern was always that the VAT on transit goods has added the cost at Dar es Salaam port, thus scaring away the importers who were opting for Mombasa Port as an alternative. But, to the TRA, their sentiment appears to miss a point as the taxman defends that the newly introduced tax had no hand in reduced cargo by making the Port being costly. TRA's Commissioner for Domestic Revenue, Mr Elijah Mwandumbya, gave a realistic situation on the ground, noting that comparatively the Dar es Salaam port is still cheaper than its competitor, Mombasa port. "Let's take an example of cargo imported through Dar es Salaam or Mombasa port to the land-locked Rwanda," Mr Mwandumbya said. According to the recent comparative data available to TRA and of which the 'Daily News' acquired a copy, the importer pays a total of 4,169 US dollars for the 20-foot container that is subjected to all costs including VAT on auxiliary services at the Dar es Salaam port while the same container is charged a total of 4,465 US dollars...

Neighbouring east African countries, Tanzania and Uganda have announced that a crude oil pipeline is on the cards with construction planned to commence early next year. According to local media, Uganda's energy minister, Irene Muloni, confirmed the development of a crude oil pipeline following discussions the ministry held on Tuesday with a visiting Tanzanian delegation. Muloni said the two countries had agreed to fast-track the project, which will cover 1,443 kilometres. It is reported that oil explorations have uncovered more than 6.5 billion barrels of crude oil reserves from about 40% of the Albertine basin in western Uganda. Muloni said: “Every activity in respect to the project will be done in a fast tracking mode. We have agreed to meet in Tanga (Tanzania) in October this year to launch the front-end-engineering-design for the project.” The minister revealed that feasibility studies estimate the project to cost $3.55 billion. East African crude oil pipeline According to the media, Muloni said a pipeline company will be set up and Uganda, Tanzania and other interested east African states will have shares in it. “The pipeline is very attractive and viable. Securing financing will be explored in much detail. Contacts are being made to potential funders,” she stated. Both the countries’ leaders are reported to have agreed to name the pipeline project reflecting the East African Community and the second ministerial meeting endorsed, ‘East African Crude Oil Pipeline'. A joint media release, signed by Muloni and her Tanzanian counterpart, Sospeter Muhongo, read: “The ministerial meeting...

Dar/Arusha — Despite Tanzania's recent decision to pull out of the Economic Partnership Agreement (EPA), the European Union (EU) has said it is forging ahead with plans to sign the deal with the East African Community (EAC). The head of the EU Delegation to Tanzania, Mr Roeland van de Geer, said the decision to sign or not to sign the already negotiated agreement was for the EAC to determine. "The EU is ready to sign the EPA, and it is hoped that the EAC will also be ready to sign in the near future. That decision is for the EAC and its member states to take," Mr van de Geer told The Citizen through email. Tanzania announced last week that it would not sign the EPA during a ceremony scheduled for next week in Nairobi. Tanzania, along with Kenya, Uganda, Rwanda and Burundi, negotiated the trade agreement with EU for more than a decade before a deal was apparently reached. Foreign Affairs Permanent Secretary Aziz Mlima said last Friday, that the decision was not based on Britain's decision to exit the EU, but more specifically on what he described as "national interests." He said the decision was meant to protect Tanzania's nascent industries. Mr van de Geer spoke as the EAC technocrat behind the 14 years of negotiations said he was still optimistic Tanzania would come along. Elsewhere, reports in Kenya said the country's Foreign Affairs minister, Ms Amina Mohammed, was due in the country to hold talks with the...