The Tanzania Bureau of Standards (TBS), a public institution in charge of undertaking measures for quality controls on imports and promoting standardization in industry and commerce, has recently started a campaign to dismiss all sub-standard products that are outstanding in the local market. The announcement was done by TBS Director General Joseph Masikitiko, whom explained that the government is closely working with local authorities to seize all products that don’t meet the country’s standards. Used rubber tires are among the main sub-standard products imported by Tanzania and it is proved that they are one of the main factors of motor accidents in the country, reason why the TBS will specially focus on foreign shipments to analyse them before they enter the market, Mr. Masikitiko added. According to the Massachusetts Institute of Technology (MIT), Tanzania has become one of the main importers of used rubber tires in Africa ranking in the 11th position totaling USD 4.69 million in 2013 up from USD 0.91 million in 2008. In addition, petroleum products will be also strongly surveilled since in December, 2015, the TBS rejected 38,000 metric tonnes of gasoline sub-standard product, reason why the shipment was sent back to United Arab Emirates (UAE) from Dar es Salaam port due to unacceptable elements found in the analysis, stressed Mr. Masikitiko. Petroleum Products constitute the main group of imports to Tanzania accounting for 36.15% of the country’s total imports and 93.4% of mineral imports in 2013 according to the MIT. Companies importing petroleum products that...

In the current global world, countries future and fate is intermingled. Positive developments in one country spill over to other parts. Similarly, negative phenomena that occurs by natural event or by human activity in a given country, could have repercussion on other parts of the world. Today global warming and climate change, poverty eradication and trade relation has brought countries together for good outcome. On the other hand, terrorism, extremism and security threats alert countries to spend their meagre resources for the well-being of their citizens, that can be allocated for development. However, we can safely argue that for most developing countries, eradication of ignorance, poverty, diseases, expansion of infrastructure, health and social service, enhancing food production and fighting hanger are common priority areas. In order to achieve development, first, countries should sort out what kind of resources they have at hand, how they could tap natural resources and mobilize domestic and international finance and technology. They as well could ultimately identify the type of energy their development scheme could be supported with. Here energy is both a means and an end for their development. Because, all economic sectors such as agriculture, industry and service essentially need energy. Without utilizing it, growth is unthinkable. On the other hand, energy makes a country economic powerful. By supplying energy, besides gaining hard currency, some countries, could be politically influential. Over the past decade, energy was proved to be a source of conflict at the international level. In contrary, countries suffering from energy...

Nairobi 21st January, 2016…East Africa private sector body, East Africa Tourism Platform (EATP) has emerged First runner up of the UNWTO Award for Innovation in Public Policy and Governance for its multi-destination knowledge management tool at the 12th UNWTO Awards EATP was among a total of 17 projects from Africa, Latin America, Asia and Europe that were selected from a total of 109 candidacies, as finalist of the 12th UNWTO Awards on Excellence and Innovation in Tourism. Winners in the four categories of Public Policy and governance, Research and Technology Enterprises and Non-Governmental Organizations (NGOs) were announced Wednesday night at the UNWTO Awards Ceremony and gala dinner at Fitur in Madrid, Spain. [caption id="attachment_11574" align="alignleft" width="600"] The East Africa Tourism Platform Executive Director Ms. Carmen Nibigira during the award UNWTO Awards Ceremony and gala dinner at Fitur in Madrid, Spain on 20th January 2016[/caption] The Award recognizes initiatives that are highly innovative and managed by a public or public-private institution that reflects tangible and sustainable improvements in policy, processes, and governance. Speaking after receiving the award on behalf of the 5 countries, EATP Regional Co-ordinator Ms Carmen Nibigira says the Multi-destination Knowledge management tool developed by EATP was nominated and awarded for its works towards an inclusive model of tourism governance which involves diverse tourism stakeholders. “Through this tool, regional tourism stakeholders have started trading each other’s products, packaging tourism products without borders, bench-marking amongst themselves and learning from each other. We are one people, but with a rich cultural...

Rwanda's campaign to diversify its exports to cushion the economy against a growing trade imbalance, may take a little longer, with agricultural exports falling by 29 per cent due to depressed international commodity prices. In the first 11 months of last year, exports fell to $65.2 million from $91.7 million during the same period in 2014, according to the National Agricultural Export Board (Naeb). The trade imbalance was widened as seven out of the 13 leading agricultural exports — pyrethrum, hides and skins, cereals, pulses, root tubers (cassava), live animals and banana — dipped. Tea exports recorded positive growth, expanding 40.16 per cent while horticultural exports grew by 41.33 per cent. But the two agricultural exports did little to narrow the trade gap, which stood at $96.14 million’s worth of exports compared with $481.10 million of imports. The trade deficit was worsened by the growing demand for agricultural products boosted by World Food Programme sourcing cereals locally to feed hundreds of Burundians and Democratic Republic in refugees’ camps in Rwanda. NAEB figures show that for the months of August and September (2015) there was no formal export of maize and wheat flour, and from July to September no formal export of maize and sorghum. Export receipts from skins and hides also dipped largely due to the growing local demand from Chinese investors. One of the investor — Kigali Leather Ltd — has a capacity to process 60 containers of skins and hides. Despite the growing local market, analysts insist that...

Countries qualifying for duty-free access to US markets under the Africa Growth and Opportunity Act (Agoa) must adhere to US trade regulations as well as its foreign policy. This is a new rule enacted by the US Congress last year after the renewal of the US–Africa trade partnership for another 10 years. According to EAC Director General of Customs and Trade Peter Kiguta, under the new rule, a country that goes against any of these requirements is suspended from Agoa for a period to be determined by the US government. “The eligibility criteria will worsen with time because US trade representatives are expected to report on the eligibility of individual country every year and if found ineligible, a country’s goods will not have access to the US market,” said Mr Kiguta. Last week, the US and South Africa reached an agreement on importation of American pork shoulder cuts and beef. In November, the two had reached yet another agreement on poultry products. South Africa is the second country to face suspension after Burundi under the new rule. Last year October, President Barack Obama announced that Burundi would be ejected from Agoa in January for its “continuing crackdown on opposition members, which has included assassinations, extra-judicial killings, arbitrary arrests, and torture.” African countries’ agricultural produce enjoy a zero-tariff rate for about 6,800 product line through Agoa without any reciprocity required for US goods. “For African countries to expand their trade partnership with the US market, we need to negotiate a preferential trade agreement...

THE Federal Republic of Germany has signed an inter-governmental agreement with the East African Community (EAC) to support the economic integration, regional health facilities and water resource management. Germany signed a total of 37 million euros in grants to the EAC for 2016-2018, highlighting the strong commitment to support the integration process in East Africa. The EAC Communications Officer, Mr Richard Owora Othieno, revealed here that 10 million euro in financial assistance will be invested in the establishment of a regional network of reference laboratories for communicable diseases. With this project, the German government responds to a request for support from the EAC for the prevention and control of epidemic outbreaks in the region. Another 10 million euros in financial assistance will be used for Integrated Water Resource Management of Lake Victoria aiming at improving water provision and management of water resources. Both projects will be implemented by KfW development bank. On the other hand, the 17 million euros in technical assistance will be made available to further support of the economic integration process, including a contribution to the EAC partnership fund. The programme is focusing on institutional strengthening of the EAC Secretariat and on supporting the implementation of the Customs Union, Common Market Protocols and Monetary Union. This includes the elimination of Non- Tariff Barriers such as tax harmonisation as well as Mutual Recognition Agreements for qualifications. At the same time Germany will support the EAC in promoting private investment especially in the pharmaceutical sector, including the establishment of...

World Trade Organisation Director-General Roberto Azevedo has described last December's ministerial conference in Nairobi as a memorable gathering where significant results were achieved. Mr Azevedo said the meeting delivered some of the biggest reforms in global trade policy ever realised in the past 20 years by the 162-member organisation. Speaking at the University of the West Indies in Jamaica, the WTO boss urged governments to capitalise on the progress in future negotiations that will enable governments and businesses to trade more. “The Nairobi package made a decision on export competition that was truly historic. It is the most important reform in international trade rules on agriculture since the creation of the WTO where we eliminated agricultural export subsidies. “This has significantly improved the global trading environment, especially in developing countries who suffered enormous trade-distorting potential from the subsidies. "In fact, this task has been outstanding since export subsidies were banned for industrial goods more than 50 years ago. So this decision corrected an historic imbalance,” he said. He said a level playing field in agricultural markets had been created, with direct benefits to farmers and exporters in developing and least-developed countries. Mr Azevedo said the move would also correct anomalies where export credits and state trading enterprises wrongly benefitted from the subsidies-driven export trade. “The smaller and the poorer the country, the more likely it is to need trade as a means to attract investments and to boost economic and social development. We simply cannot lose sight of this reality,”...

In order to improve efficiency and avoid conflict of interest, Tanzania Ports Authority should be split into two separate companies, one being the landlord and the other a cargo handling entity. Advocates of this arrangement include the chairman of TradeMark Africa, Ali Mufuruki, who said the setup was the optimal solution for better management of the country’s ports. “I am a strong believer in good corporate governance as a critical success factor in managing companies, including those owned by the state. One thing that must be avoided at all costs in a well-managed company is conflict of interest,” Mufuruki, who is also the CEO Roundtable of Tanzania chairman, argued.  He pointed out that by being both a landlord and operator of the ports, TPA inevitably finds itself in a situation where conflict of interest is the norm rather than the exception. “I would therefore advocate the splitting of TPA into two units, one to be a commercial port operation dealing in all aspects of commercial port activities such as container handling, cargo wharfage, transportation, storage, +warehousing, etc. and the other being the landlord and port facilities regulator,” Mufuruki pointed out. He further advised that each entity should have its own board of directors and governance charters.  Mufuruki’s suggestion was supported by the chairman of Tanzania Shipping Agents Association (TASAA) board of trustees, Emmanuel Mallya, who said the setup used to exist under the East African Harbours Corporation. “Under the East African Harbours, cargo handling and infrastructure development were handled separately,” Mallya...

Djibouti has signed a series of trade agreements with China including the setting up banking and free trade zones, according to a statement from the strategic Horn of Africa nation’s president. China last month said it would build a naval base in Djibouti, the latest sign of China’s growing international security presence. The “important economic agreements” include banking deals and a proposed 48 square kilometre (18.5 square mile) free trade zone, with the first section “to be operational before the end of 2016”, President Ismail Omar Guelleh said in the statement released this week after the deal was inked on Monday. Djibouti, which lies at the entrance to the Red Sea and Suez Canal, will operate as a “trans-shipment and redistribution” hub for Beijing’s trade, the statement added. On Wednesday, the United Nations World Food Programme (WFP) opened a “humanitarian logistics base” in Djibouti’s port. Regional WFP chief Valerie Guarnieri said the site will help aid to be transported more “quickly, efficiently and cost-effectively” in a region that includes neighbouring drought-hit Ethiopia, as well as war-torn Yemen, Somalia and South Sudan. WFP last year moved 500,000 tonnes of food through Djibouti and the new base will enable larger amounts. Floods and failed rains caused by the El Nino phenomenon have sparked a dramatic rise in the number of people going hungry in east Africa. WFP said aid for a quarter of all those they support worldwide will be funnelled through the new base. “We are opening this facility at a...

Nairobi — A regional conference for ports managers in eastern and southern Africa scheduled for next month in Dar es Salaam has been cancelled following a shake-up of the management of Tanzania Ports Authority (TPA) by President John Magufuli. The meeting was set for February 15-17 and was organised by the Ports Management Association of Eastern and Southern Africa (PMAESA) and TPA. "The conference was cancellation after newly elected Tanzania President John Magufuli relieved several TPA top managers, including the director-general, of their duties and dissolved the authority's board of directors," George Sunguh, the communication officer at PMAESA said. This will be the first time for the annual PMAESA conference not to take place since its inception in 2007 in Seychelles. Last year, President Magufuli sacked TPA director-general Awadhi Massawe and the permanent secretary in the Transport ministry, Mr Shaaban Mwinjaka, as part of a campaign to crack down on corruption and inefficiency in the country. They were shown the door following the disappearance of over 2,700 shipping containers at TPA. Mr Massawe, who was acting director of the port since February before being formally confirmed to the position in October by President Magufuli's predecessor, retired President Jakaya Kikwete, becomes the third TPA chief to be sacked in many years. "President Magufuli has also disbanded TPA's board of directors for failing to take action against the Dar es Salaam Port's long history of poor performance," the Prime Minister's Office said in a statement in December. President Magufuli has introduced economic...