Arusha — In an apparent political will to spur intraregional trade, Tanzania and Kenya have assented to the East African Community (EAC) Non-Tariff Barriers to Trade Bill, 2015. Tabling the EAC Budget, the Tanzania's deputy minister for Foreign Affairs, East Africa, and Regional and international Co-operation, Dr Susan Kolimba, said Dar and Nairobi had assented to the Bill and that the duo was waiting for other three heads of state to also append their signatures to it. These are Yoweri Museveni of Uganda, Pierre Nkurunziza of Burundi and Paul Kagame of Rwanda. Salvar Kiir of South Sudan will not assent to it, as his country is not yet fully integrated into the bloc. The means both Dar and Nairobi have formally committed themselves to implement the will-be binding legislation to eliminate NTBs to trade among the five EAC partner states. However, the East African Business Council (EABC) says though it would like the other EAC heads of states to assent to the Bill, the will-be Act should be returned to the East African Legislative Assembly (Eala) for it to amend and make it more effective. The apex body of business associations of the private sector and corporates from the five East African countries said the Bill was strictly dependent on the political will to eliminate reported NTBs among parties involved, with neither consequences for non-elimination nor retribution for aggrieved parties. The EABC trade economist, Mr Adrian Njau, proposes that the Eala should amend the NTBs Bill to address the fault...

During the recent East Africa and Dubai Agribusiness Roundtable meeting, representatives from the East African Community (EAC) joined Dubai Chamber of Commerce and Industry’s Ethiopian International Office to discuss opportunities for cooperation and investment. In attendance at the meeting were Abdul Razak Mohammed Hadi, UAE Ambassador to Kenya, and representatives of the Kenya National Chamber of Commerce, East African Chamber of Commerce, Industry and Agriculture, the Private Sector Federation Rwanda and the Chambers of Burundi, Tanzania Zanzibar and Uganda. The roundtable focused on the agribusiness industry, an industry of the utmost importance to the UAE, which imports 85 percent of its food from overseas markets. “The UAE is fully committed to increasing trade and economic development in the region and we have done this by offering excellent logistical and export/import free zones while helping African companies to carry out their trading activities with global traders through the country,” Hadi said. Omar Khan, director of the international offices of Dubai Chamber, was also in attendance and talked about the importance of the African continent as a strategic partner for Dubai’s business community. The chamber will open international offices in the continent to support private sector growth. Source: Gulf News

Expensive maize in Tanzania and Uganda contributed in sparking a sharp rise in the price of flour in Kenya as local millers cut reliance on grains from the neighbouring countries. The latest food security report from the Ministry of Agriculture, Livestock and Fisheries indicates that imports from neighbouring countries dropped to 205,350 bags in quarter one, down from 1.8 million in the same period last year. This came as Kenyan farmers stepped up maize exports to Tanzania, worsening the cereal shortage locally that has seen flour prices rise by Sh15 for the two kilogram packet since February. Data prepared by the Regional Agricultural Trade Intelligence Network (Ratin) shows that a 90-kg bag of maize retailed at Sh4,898 in Dar es Salaam, the highest unit price in East Africa. The same quantity of maize currently fetches about 2,700 in Nairobi, an average of Sh2,661 in Kampala and Sh4,597 in Burundi. “The supplies of maize have been tight in the market and millers are unable to get enough stocks, this situation is behind the rise in flour prices,” said an official of the Cereal Millers Association. The government notes that the reduced imports of the various major food commodities signify relative adequacy of stocks. “The cross-border imports decreased by 80 in the first three months of the year compared to the same period last year,” says the report. Millers have been complaining of decreased supply of local stocks in the market and are banking on stocks from Tanzania, whose harvest season has...

After years of frosty relations, Rwanda and Tanzania seem to have finally mended their bridges over the past few months. Under the presidency of Jakaya Kikwete, the relationship between the two East African neighbours deteriorated over a number of diplomatic rows and political disagreements. Signs of a gradual reconciliation began towards the end of Kikwete’s decade in office, but this trend has accelerated greatly since he was replaced by President John Magufuli in November 2015. This was seen most symbolically this April when Magufuli attended Rwanda’s 2016 genocide commemoration ceremony, laying a wreath and lighting a memorial flame alongside his counterpart Paul Kagame in honour of the victims of Rwanda’s 1994 genocide. On this visit, Magufuli was welcomed enthusiastically as he visited the country, with President Kagame remarking: “You must know, first of all, that you are at your brother’s place. Since you were elected, your presence has been refreshing.” The tone of relations between the two neighbours has thus warmed significantly in recent months, and relations got even closer last month as the first Tanzania-Rwanda Trade Forum was held in Kigali. A line seems to have been drawn under several years of tense relations, with both countries hoping to benefit. Carry that weight Over the past two decades or so, relations between Tanzania and Rwanda have typically been fairly close. Before the genocide broke out, Tanzania hosted the negotiations between the then government of President Juvénal Habyarimana and the Rwanda Patriotic Front (RPF) leading to the Arusha Accords. And...

Romania’s Government aims to stimulate the country’s exports to Africa and has signed, together with other EU countries, an economic partnership agreement with the East African Community (EAC) states. Romania anticipates that the agreement will help it export Dacia Logan cars, communication equipment, mineral water to Burindi, Kenya, Rwanda, Tanzania, and Uganda, reports local Profit.ro. The Government also hopes that the partnership will help increase Romania’s exports of construction materials, fertilizers, cosmetics, and pharmaceutical products to these countries. Romania’s trade with EAC countries totaled EUR 32 million in 2015, consisting in EUR 11.6 million exports and EUR 20.4 million imports. Source: Romania - insider.com

An urban planning policy for the East African Community (EAC) will create a network for the allocation of investment and for the production and sale of most goods and services once adopted, a regional parliamentarian said. MP Nancy Abisai earlier this month urged the East African Legislative Assembly (EALA) to adopt a motion in support of an urban planning policy for the bloc, with view to empower the urban poor. Shortly before the motion was adopted, the Kenyan lawmaker told the Assembly that poor urban governance and inappropriate policy frameworks contribute to the vulnerability of the urban poor. Corruption, inappropriate policies, and cumbersome regulatory requirements in EAC cities, she said, lead to deprivations such as inadequate infrastructure and environmental services, limited access to school and health care and social exclusion. “Better urban governance is, therefore, a necessary condition for empowering the urban poor and improving their opportunities and security,” Abisai said. “Urban planning will reduce social inequality. Social and economic inequalities are apparent in urban areas and are growing in all the cities in the EAC partner states and can lead to social and political clashes.” Augustin Rwomushana, Director of Urban Economic Development in the City of Kigali, told The New Times last week that EALA’s resolution is a catalyst for increasing urban network of regional cities, towns, and villages encompassing all aspects of the environment within which societies’ economic and social interactions take place. Rwomushana added: “Nationally, the resolution will create a network for the allocation of investment and...

Dar es salaam, Tanzania - For the year 2016/2017, Tanzania’s budget has zeroed in on “Industrial growth for Job Creation”.   An emphasis of the first budget of the Fifth Phase Government with the motto “Hapa Kazi Tu” is to implement its commitment under the CCM Election Manifesto (2015-2020); Five Years Development Plan (2016/2017 – 2020/2021) and the National Development Vision 2025. The main objectives are: Addressing challenges faced by Tanzanians and bringing new hope for a better life, especially to low income earners through major reforms in the Government’s undertaking through restoring discipline and accountability, strengthening integrity and management of public expenditure and national resources. Developing industries to transform the economy into real middle income economy through developing industries that will foster job creation for youths and enhance agricultural productivity. The industries would include textiles, livestock products, agro-processing including rubber products, cashew nuts, tobacco, sugarcane tea and paddy. The Government is determined to strengthen domestic revenue collections and therefore reduce donor dependency. To achieve the objectives, the following measures have been proposed: Effective use of electronic systems and devices in collecting revenues; Widening tax base including formalization of the informal sector; Strengthening monitoring of revenues collected by Government Institutions and agencies; Continue measures to control and reduce tax exemptions; and Conduct frequent inspections and strengthen management at ports, airports and border posts to ensure appropriate tax collection. Positives: Efficient collections on tax revenues with 99% of the targeted revenues being collected between July 2015 and April 2016. Under the...

AR: How would you describe the civil and infrastructure markets in Africa? There is a clear consensus that infrastructure development currently is a focus area across the entire African continent, including the markets that we serve in Kenya, Tanzania, Uganda, Ghana, Nigeria and Sierra Leone; this is emphasised by the number of currently ongoing road, rail and port projects in these markets. The medium term macro-economic challenges include pressure on government revenues, elections, currency volatility and slow decision making by foreign investors and donors. In the short-term we have identified excellent prospects in East Africa. In Kenya, the focus has shifted to road projects now that the Standard Gauge Railway project is well underway; the Tanzanian and Ugandan governments are settling down after their recent respective elections and have announced a number of mega projects that will attract great interest and investment. In West Africa we have actually seen a decline and this may continue through 2016. Nigeria, although it has recently announced its budget and intent to pay contractors, will depend upon the timing and ultimate solution surrounding foreign exchange restrictions, which have negatively impacted the economy. Ghana will also be negatively impacted due to continued low oil and commodity prices and output, as well as the upcoming election and adverse impacts of the “missing” Cocoa Board Funds (which fund much of the feeder road development). Panafrican remains bullish about the road infrastructure sector, which is why we sought out the addition of the world class Wirtgen range of...

NAIROBI (HAN) June 13.2016. Public Diplomacy & Regional Security News. East African governments are determined to succeed in their global races to create growth and deliver lasting prosperity. They recognise that to build a strong economy necessary for a fairer society, they require infrastructure that competes with the best in the world. One only needs to look at the steady and substantial infrastructure spends over the years. The Kenyan 2016/2017) budget did not disappoint. Allocations of over $3.5 billion, representing over 15 per cent of the budgetary allocations, were channelled towards infrastructure and apportioned as follows, undoubtedly in order of priority; standard gauge railway (SGR) $1.55 billion, roads  $1.48 billion, energy $0.40 billion, Lapsset $100 million and ports $55 million. As expected, the majority of the Kenyan budget has been allocated to projects aimed at enhancing transport and logistics, in order to ease the cost of doing business in the country and bolster its competitive edge compared to its peers. It is projected that total traffic on the Northern corridor will double in 2016 from the 2013 levels of 21.5 million tonnes. The Tanzanian 2016/17 infrastructure budget also has a strong focus on developing its Central corridor; which undoubtedly will create strong competition for the Kenyan Northern corridor. Tanzania allocated $143 million to accelerate developments to renovate the Central railway line that runs from Dar es Salaam to Kigoma on Lake Tanganyika; and $9 million to the construction of the Mbegani port in Bagamoyo. The Ugandan government is likely to benefit...

The World Bank Board has approved a mega project meant to strengthen selected higher institutions of learning in Eastern and Southern Africa to deliver quality postgraduate education and build collaborative research capacity in priority areas. The Eastern and Southern Africa Higher Education Centres of Excellence Project (ACE II), expected to close in 2021, will see each of the 24 Africa Centres of Excellence (ACE) funded to a tune of $6 million over five years. The project is good news for the regional higher learning institutions which are grappling with poor quality education due to limited research funding. Since the project will focus on supporting collaborative research, it is a step forward in fixing quality challenges in higher institutions of learning. If well implemented, the project will significantly enhance the quality of education in the region and this will reduce on the number of people who travel out of the region in search for better education. The Uganda-based IUCEA, an East African Community (EAC) institution responsible for coordinating the development of higher education and research, is the regional facilitation unit for the ACE II project. The EAC member countries should collaborate to ensure that IUCEA benefits all the member countries within the framework of fast tracking the integration process. Education is a key component in the integration process and having quality education in all member countries will go along away in fulfilling the goals of the integration. By the time the project concludes in 2021, the centre should have developed sufficient...