Four East African countries on Tuesday agreed to fast-track implementation of a common customs and transit cargo control framework to enhance regional trade. Commissioners-general from the Kenyan, Ugandan, Rwandan and Tanzanian revenue authorities said adoption of an excise goods management system would curb illicit trade in goods that attract excise duty across borders. They said creation of a single regional bond for goods in transit would ease movement of cargo, with taxation being done at the first customs port of entry. The meeting held in Nairobi supported formation of the Single Customs Territory, terming it a useful measure that will ease clearance of goods and reduce protectionist tendencies, thereby boosting business. Implementation of the territory is being handled in three phases; the first will address bulk cargo such as fuel, wheat grain and clinker used in cement manufacturing. ENHANCE REVENUE COLLECTION Phase two will handle containerised cargo and motor vehicles, while the third will deal with intra-regional trade among countries implementing the arrangement. The treaty for establishment of the East African Community provides that a customs union shall be the first stage in the process of economic integration. Kenya Revenue Authority (KRA) commissioner-general John Njiraini said the recently introduced customs and border control regulations were designed to enhance revenue collection and beef up security at the entry points. “At KRA, we have commenced the implementation of a number of revenue enhancement programmes particularly on the customs and border control front that will address security and revenue collection at all border points while...

Kenya Revenue Authority (KRA) Commissioner General John Njiraini said the tax body commenced the implementation of a number of revenue enhancement programs particularly on the customs and border control front. “These measures are designed to provide a sound platform to refocus Customs and Border Control operations to address security and revenue collection,” Njiraini said. The two-day meeting, also served as a peer review and learning session in operational management and on mutual interest technical issues. The revenue authorities, leadership teams, considered progress made on the Implementation of the Regional Customs Transit Guarantee (RCTG) Scheme, among other cargo transit control programmes. The cost of clearing cargo at the port of Mombasa and of transport along the Northern Corridor has gone down by 30 percent since the implementation of the East African Single Customs Territory (SCT). The revenue chiefs said a fully functional, Customs territory, will, make it easier to clear goods and reduce protectionist tendencies. This is directly geared towards enhancing the ease of doing business in the region. Across the region, the revenue bodies have committed to fast-track, the adoption of Excise Goods Management System (EGMS) solutions aimed at curbing illicit trade in excisable goods across borders. To address cargo diversion cases, the regional revenue authorities have been jointly pursuing programmes geared at reforming transit cargo clearance and monitoring processes. The East African nations are integrating their customs systems to make it possible for the three countries to have a regional bond for goods in transit. The SCT will ensure...

The ports of Dar es Salaam and Mombasa have registered a general decline in cargo transfer time by 12%, thanks to technical support from TradeMark Africa (TMA), a donor-supported organization formed to facilitate cross-border business in the region. This was revealed last week, at the East African Community (EAC) headquarters during discussions between the EAC secretary-general, Dr Richard Sezibera, and TMEO chief executive officer Frank Matsaert. The meeting was convened to lay the ground for the next phase of implementation of the organization’s support to EAC from this year to 2022. Ministerial representatives from the five partner states: Tanzania, Uganda, Kenya, Burundi and Rwanda attended the meeting. It emerged through the talks that the EAC, through TMA, had implemented a number of projects to improve the quality of life of East Africans through competitiveness, value-added production, trade and investments. This has also included improvement of Mombasa Port infrastructure and construction of a road network between Ntungamo to Mirama Hill in Uganda and another from Port Reitz also in Mombasa to Kipevu West in Kenya. The EAC is gearing up to become a major regional logistics hub that can attract investors to start up various businesses. Source: Hellenic Shipping News Worldwide

KIGALI, RWANDA - The Rules of Origin, which determine whether a product is produced within a particular trading partner, are pivotal to any preferential trade arrangement. “These rules of origin that we set for ourselves have the power to render the preferences useless or to actually promote industrial growth of the continent,” Emmanuel Hategeka, the Permanent Secretary in the Rwanda Ministry of Trade and Industry said last week. Hategeka was speaking at the at the recently concluded First Tripartite Private Sector Regional Dialogue on the theme ‘Towards a Private Sector position on TFTA Rules of Origin for increased Market Access’, in Kigali last week. The meeting focused more on a private sector position that is common and harmonized with respect to the tripartite Free Trade Area (FTA) Rules of Origin for increased market access. “Exporters from the different countries can only benefit from simplified rules of origin as opposed to stringent regimes of rules of origin. Such meetings therefore help discuss the crucial role of rules of origin in the implementation of the TFTA agreement,” Hategeka said. Rules of Origin are in this case intended to retain and promote production capacities in the region but not to reduce or undermine them. This is why simple and transparent rules which are easier to administer and with which it is easier to prove compliance are needed. Hategeka said, “We need Rules of origin that are going to help stimulate regional integration and facilitate the growth of companies that can compete not only...

There are still several bottlenecks preventing the East African Common Market becoming a reality. “Common market, open space can only be achieved if the environment is open. If we are going to have free flow of goods and services, mutual recognition agreements all the non tariff barriers have to be eliminated,” Stephen Ruzibiza the Chief Executive Officer of Rwanda’s Private Sector Federation (PSF) said last week. He was speaking during a dialogue organised by the East African Trade and Investment Hub (EATIH) together with PSF in Kigali. Ruzibiza said, “This is when we shall say we have a vibrant common market. The private sector here has a role in my opinion” The focus was on reviewing the implementation status of the EAC common market and customs union and explore opportunities for stronger private sector participation in rule making, implementation and monitoring of trade facilitation. Participants shared viwes on how the EATIH can cooperate with the PSF and other partners in respect to getting the EAC Common Market Protocol implemented much faster than at present. The Common Market Protocol has been in force since 2010, in line with the provisions of the EAC Treaty. It follows the Customs Union, which became fully-fledged in January 2010. Basic ingredients of the Protocol are Free Movement of Goods; Free Movement of Persons; Free Movement of Labour / Workers; Right of Establishment; Right of Residence; Free Movement of Services; Free and Movement of Capital. Ruzibiza said, “It is good that now the private sector together...

Tanzania Revenue Authority has said it is fully cooperating with other stakeholders in establishing an electronic single window system at Dar es Salaam port that will do away with physical cargo clearance. The electronic Single Window System (eSWS) which was supposed to be introduced at the country’s prime port since 2010 through World Bank funding has been frustrated by a cartel of business elite, politicians and bureaucrats who are behind a loss of government revenue. “We are cooperating fully and as a matter of fact TRA has a lot to benefit from the single window system,” said Director of Public Education and Taxation. Kayombo pointed out that TRA has been in the forefront to embrace technology in cargo clearance at Dar es Salaam port hence its introduction of a Tanzania Customs Information System (TANCIS) since 2014. “Online communication with stakeholders is TRA’s commitment as can be testified by TANCIS installation through which we can communicate with all importers and exporters to pay taxes,” he stressed. Kayombo called on the country’s prime port community to cooperate with the contractor so that the project can be completed. Sources at the port said some officials at Tanzania Ports Authority and TRA have been frustrating Belgian contractor, Phaeros BVBA from implementing the project but there has been little success on the ground. Phaeros was contracted by TPA in January 2014 to install the system but the company has been facing a lot of resistance from port stakeholders. Phaeros had won a competitive international tender....

Finance and Planning Minister Dr Philipo Mpango said this yesterday when wrapping up the debate for the 2016/2017 development plan and budget framework. Dr Mpango told the parliament that for the 15tril/- project to be commercially viable, it has to run through Burundi, Rwanda and the Democratic Republic of Congo (DRC). He explained that it was hard to carry out the project through Railway Development Levy as it was previously suggested by some MPs. The Minister noted that if such approach was to be applied “it was going to take the country over 300 years to complete the project”. Funds generated through Railway Development Levy, according to the Minister stands at an average of 50bn/- per year. Dr Mpango noted that the government has not ignored the project, insisting that his ministry was one of the key stakeholders, as it depended on the venture as a backbone for the country’s economic growth. “Just to set the record clear, Tanzania cannot afford financing the project using our own funds.” He expounded that through the support of the World Economic Forum (WEF) and African Development Bank (ADB), the central corridor has been found most commercially viable, thus the government was doing all it could to implement it. “WEF and ADB are working closely with Tanzania to raise the required funds. The project will only be viable through Public Private Partnership (PPP).” He noted that there are Chinese and American companies which have already shown interests to invest in the project. “We are...

Someone once asked me what I know about Angola, and I excitedly started to list all the things I had seen, read and watched on television about this country. When I was done, she asked me if I had been to Angola and if I know these things to be true. I said I hadn't. She then remarked that it was a pity we Africans only know about each other from what we are told. I grasped the gravity of the issue at hand: That what we hear and see about our trading partners are things that may be far from reality when we visit and trade together. The visit a fortnight ago by Nigerian President Muhammadu Buhari, a year after that of his predecessor, shows the increasing realisation by African leaders of the need for intra-Africa trade and investment. While Kenya is a member of the East African Community, the Common Market for Eastern and Southern Africa (Comesa) and the Tripartite Free Trade Area, Nigeria is a member of the Economic Community of West African States (Ecowas). Both the Tripartite and Ecowas regional trading blocs constitute a market opportunity of about 950 million people out of Africa's population of 1.1 billion. Source: All Africa

ARUSHA, TANZANIA - Lead consultants on stronger East African integration, TradeMark Africa (TMA), are keen on continuing their support during the 2016-2022 period. “We are very keen on continuing supporting the Integration Agenda,” Frank Matsaert (pictured right), the TMA CEO told Amb. Richard Sezibera, the East African Community Secretary General in talks last week. He said: “With strong commitment and guidance from the Secretary General and his team, we will be able to carve out key priority activities to carry out in the next phase.” The meeting took place at the EAC Headquarters in Arusha and was attended by Dr. Enos Bukuku, EAC Deputy Secretary General in charge of Planning and Infrastructure, David Stanton, TMA Director General, and ministerial representatives from the five Partner States. Amb. Sezibera said, “I wish to express my gratitude to TMA for supporting the Integration Agenda.” “As we move more towards monetary and fiscal integration, we need to strengthen institutional capacities, nurture vibrant trade and enhance financial markets within the region,” he said. With funding from bilateral donors, especially from the European Union, TMA has been helping the EAC improve the quality of life of East Africans through competitiveness, value added production, trade and investments. TMA support, has improved the infrastructure at Mombasa Port; constructed road network between Ntungamo to Mirama Hill in Uganda and Port Reitz to Kipevu West in Kenya; improved on the customs clearance time along the borders and carried out several sensitization campaigns to small cross border traders on the opportunities...

Arusha — Cargo transfer time from the ports of Dar es Salaam and Mombasa to Burundi and Rwanda has been reduced by 12 per cent, thanks to technical support from TradeMark Africa (TMA), a donor-supported organisation formed to facilitate cross-border business in the region. This was revealed on Monday during discussions, which took place at the East African Community (EAC) headquarters between the EAC secretary-general, Dr Richard Sezibera, and TMEO chief executive officer Frank Matsaert. The meeting was convened to lay ground for the next phase of implementation of the organisation's support to EAC from this year to 2022. Ministerial representatives from the five partner states: Tanzania, Uganda, Kenya, Burundi and Rwanda attended it. It emerged through the talks that the EAC, through TMA, had implemented a number of projects to improve the quality of life of East Africans through competitiveness, value-added production, trade and investments, which include improvement of Mombasa Port infrastructure and construction of a road network between Ntungamo to Mirama Hill in Uganda and another from Port Reitz also in Mombasa to Kipevu West in Kenya. Source: All Africa