The collapse of the first East African Community in 1977 killed a dream that had taken more than 15 years to actualize. The breakup of the bloc which was formed in 1967 was occasioned by differing political and economic ideologies. That was then. Today the world is witnessing the re-emergence of the EAC driven by the Kenya and Tanzania who were blamed for the collapse of the original bloc. But can the two nations succeed where they failed in the past. From the start, the first East African Community was meant to fail, it was not sculptured to adapt to the changing trends. It is said that the EAC bloc was formed to counter the influence of colonialists who were not ceding power after years of dominance. After independence individual countries got busy consolidating power, giving affairs of the bloc less prominence. The then President for Kenya Mzee Jomo Kenyatta was intent on making sure that the country stuck to capitalism. Tanzania on the other hand championed for Ujamaa, a major African socialist policy. A clash of ideologies was imminent. 1977 the EAC was dissolved and Kenya and Tanzania ended diplomatic ties only to re-establish them in 1983. The next 23 years, Kenya, Uganda and Tanzania would try to revive the bloc. In July 2000, Tanzania and Kenya along with Uganda reestablished the EAC. However, the Kenya and Tanzania tension lingered on even with the new bloc. According to policy analyst Dr. Kerret Mutua, the differences between the two countries...

LAST Sunday, President Jakaya Kikwete and his Kenyan counterpart, President Uhuru Kenyatta, launched the construction of a 90 kilometre Mwatate-Taveta Road in Kenya that will link with Arusha-Taveta to connect the central and northern transport corridors in East Africa. The launching ceremony marked the beginning of the African Development Bank (AfDB) funded grand road project in the East African region, which is expected to boost trade and spur growth and prosperity in the region. In Tanzania, we are also expecting launching construction works for the Arusha-Taveta stretch soon. The stretch will involve a four-lane dual carriageway which will connect Arusha City with Holili-Taveta through Moshi Municipality and Himo Township. The project is also expected to involve the so-called Arusha-bypass. The main objective of connecting the two transport corridors is to enhance interconnectivity in transport in the region through infrastructure development and trade facilitation. The modernisation of this transport infrastructure is crucial for both national and regional road traffic and sustains economic growth in the area, trade expansion and investment, which are also vital to develop and support a dynamic and robust private sector. We would therefore like to commend the two leaders for their commitment to make sure the dream to connect the two transport corridors is realised so as to improve trade and boost growth in the region. In East Africa, the Northern and Central Transport Corridors connect the people of Burundi, Kenya, Rwanda, Tanzania and Uganda. These corridors also provide port access to the people of the Democratic...

KENYA
 has been accused of dragging its feet in completing a one stop border post at Namanga which has slowed down trade with its Tanzania neighbour. According
to the East African Legislative Assembly, Kenya is lagging behind in
construction of the OSBP, affecting implementation of the EAC treaty on cross
border movement of goods, persons and services. In
a statement released after a tour of various entry points in the region, the East African Community committee on communication, trade and investments said the delay forms a major non-tariff barrier to trade. The team was on a tour of OSBP's in the region, to assess the construction and
implementation of the projects. “Any
delay in the construction of the border facility would impact negatively on the
growth of trade and investments,” committee chairman Mbidde Mukasa (EALA
Uganda) said. He
said the business community and clearing agents have been inconvenienced by the
delay. “Namanga
Tanzania OSBP was completed a year ago and they were only waiting for the
Kenyan side to complete their facility to allow the sharing of staff,” the team said. Kenya Revenue Authority Namanga station manager Dishon Njuguna said the project was 80
per cent complete. According
to Njuguna, the project was delayed after the contractor declined to receive
his payments when he was penalised for breach of contract. “He
was supposed to have completed the construction of the facility by December
2013, but the contract terms were reviewed to June 2015, attracting the
penalties,” Njuguna said. He
said a slow land compensation process also contributed to the delay. The
committee toured other projects at Kenya-Tanzania entry points in Lunga
Lunga/Horo...

TRADE between Kenya and Tanzania has continued to grow, accounting for 80 to 90 per cent of trade in the East African Community (EAC), President Jakaya Kikwete has said. Addressing the Kenya’s National Assembly in the capital, Nairobi, President Kikwete said the growth in trade between the two countries demonstrated how much the two countries’ contribution is critical to the greater EAC integration agenda. “I am told trade between our two countries accounts for over 80 to 90 per cent of trade in the EAC market. This demonstrates in no uncertain terms how much our two countries are critical to the EAC integration agenda,’’ he told the attentive assembly. Mr Kikwete observed how important it was, therefore, for the two countries to forge closer and stronger cooperation in investments and trade, not only in their own best interest, but also in the best interest of the EAC. He added that what the two countries have accomplished was just a tip of the iceberg out of what they stand to achieve together. The Tanzanian leader noted that the two countries have developed strong bonds of cooperation, stressing that for Tanzania, “Kenya is not a competitor but a strategic partner’’. He said Kenya ranked fifth among top ten countries with the largest investments in Tanzania, after the United Kingdom (UK), United States of America (USA), China and India -- being the only leading African nation in the list followed by South Africa. According to the president, Kenya’s investments in Tanzania accounted for...

Kenya is Tanzania’s leading trade partner in East Africa. This is according to Tanzanian President Jakaya Mrisho Kikwete. During his address to the joint Parliamentary sitting of the National Assembly and the Senate on Tuesday, Kikwete said figures put trade between East African countries at 80 to 90 per cent, with Kenyan investments hitting USD 1.6 billion in 518 projects. Kikwete further stated that he will join the ranks of former President Ali Hassan Mwinyi and Benjamin Mkapa as a distinguished citizen after the elections set for October 25th, 2015. The Tanzanian Head of State reaffirmed confidence in the ties between Kenya and Tanzania saying trade between the two countries has increased by 40 per cent in the last 5 years. “Kenya is our largest trading partner with an investment of USD 1.65 billion. In that regard, Kenya is not a competition but a strategic partner,” said Kikwete. He further stated that Tanzania is building a power transmission line from Tanzania to Namanga in Kenya among other joint infrastructural projects to promote interconnectivity. He also stated that his country has supported Kenya’s efforts against terror, narcotics and cross-border crime saying such cooperation will continue even after he leaves office. Kikwete, who became Tanzania’s President in 2005, before winning a re-election in 2010 said he has been accorded perfect opportunity to bid farewell to the Parliament and the people of Kenya. “I will leave office a happy man knowing that the relation between Kenya and Tanzania is cordial.” Kikwete was also...

PRESIDENT Jakaya Kikwete and his Kenyan counterpart, Mr Uhuru Kenyatta, have launched a grand road project involving construction of the Arusha-Holili/Taveta-Mwatate Road to unlock the Northern Corridor. At a ceremony held here yesterday, the two presidents expressed their optimism for the accelerated economic development of the area as the road will help transport goods to and from the port of Mombasa and create employment to more people in the process. In his speech, President Kikwete said the project, which is supported by the African Development Bank (AfDB), will see less time spent on the road, while vehicles would be assured of less damage. AfDB agreed to release US$ 120 million to Tanzania while Kenya gets US$ 113.12 million. The project will comprise civil works for the construction of the 42.4km Arusha bypass and dual carriageway linking the Sakina-Tengeru section of 14.1 kilometres as well as the construction of two roadside amenities at Tengeru, one on either side of the dual carriageway in Tanzania. President Kikwete said this is a second major road construction to link the two countries after the Arusha- Namanga-Athi River Road project. He said more plans are to join Lamu-Mombasa-Lungalunga-Tanga- Bagamoyo-Dar es Salaam sections. He assured Kenyans, who turned in great numbers at the ceremony, of continued cooperation and friendship with Tanzania. President Kenyatta hailed the achievement, saying it was a beginning of economic prosperity as the project would highly improve lives of people from the two countries. “Our people are one; we intermarry and do business...

The East African Community (EAC), comprising Burundi, Kenya, Rwanda, Tanzania and Uganda has been urged to ensure full integration for inclusive growth in the region. Addressing East African Trade Union Confederation Youth Camp in Kisumu on Monday, Central Organization of Trade Union (Cotu) Secretary General Francis Atwoli said the integration is still very weak. Atwoli said while progress towards regional integration has been significant, the agenda is far from finished, pointing at many barriers. “We need free movement of people, goods and other services within East African countries. These barriers should be removed,” Atwoli said. He challenged Tanzania to remain optimistic and embrace the integration process to allow EAC to move in one direction. Atwoli said EAC was strong before it went down in 1977. He said the community was stronger in the past, noting that the new process started in the year 2000 and must ensure full integration to spur growth within the member states. The Cotu boss said no East African citizen should be denied work in the member states and opposed the quota system within the region. He said the system is discriminating and violates the rights of young people seeking employment opportunities within the region. “This quota system should be scrapped to allow young people to move freely and look for jobs anywhere they can find them within the region,” he said. Source: Hivisasa.com

ARUSHA, Tanzania, 05 October 2015 / PRN Africa / — The 6th African Grain Trade Summit with a clear agenda for regional grain trade in Africa, and with renewed commitments for creating an enabling environment for structured trade concluded in Kigali,Rwanda. The outcomes of the three-day summit reaffirms the regional grain sector actors' commitment to structured grain trade in Africa and sets out a clear agenda on different priority areas to be achieved within the next two years, when the next summit will be held.
 In a major push to create an enabling environment for the grain sector in Africa, His Excellency Paul Kagame, the President of Rwanda, pledged to continue to support the operationalization of the single customs territory through the Northern and Central Corridor Initiatives. The President's remarks were delivered on his behalf by the Right Honourable Prime Minister, Anastase Murekezi.
 Over 200 delegates from 14 countries including Tanzania, Kenya, Uganda, Burundi, Rwanda, Benin, Togo, Ghana, Malawi, Zambia, Namibia, South Africa, The Netherlands, Singapore, USA and Philippines attended the summit. The delegates, who represented the Government officials, private sector, traders, farmers, processors, financial institutions, civil society and development partners all committed to work together through Private-Public Partnership models to reduce the billions of dollars that get out of Africa through food imports. 
In his remarks, the Hon. Kanimba, Minister of Trade and Industry, appreciated the Eastern Africa Grain Council (EAGC) for organizing such a high level summit, noting that, “The 6th African Grain Trade summit that we are...

AN Alabama trade mission to Africa culminated with an extended stop in Tanzania, where meetings with high-level government representatives showcased the potential for strategic collaboration and the promise of new markets. This month’s Commerce-led trade and business development mission focused on commercial opportunities through the Sub- Saharan region of Africa – that is, the area south of the Sahara desert. In addition to Tanzania, the Alabama delegation stopped in South Africa and participated in the “Trade Winds Africa” business forum conference. “It is critical for Alabama businesses, particularly small enterprises, to have the opportunity to cultivate partnerships and develop export opportunities in diverse overseas markets,” Governor Robert Bentley said. “I believe trade missions like the one to Africa advance these goals, which in turn creates the potential for future jobs here in Alabama.” While in Dar es Salaam, Tanzania, the Alabama delegation led by Commerce Secretary Greg Canfield found government trade leaders eager to forge new bonds to help advance the nation’s economy. Though its GDP expanded around 7 percent annually between 2009 and 2014, Tanzania remains one of the world’s poorest nations. Nisa Miranda, director of the University of Alabama Center for Economic Development, said Tanzania’s growing economy opens up opportunities for Alabama firms, particularly in agriculture, energy, infrastructure and logistics. Organizations and the private sector in Tanzania are interested in joint ventures, training and technical assistance, she added. “There are many opportunities in Tanzania for extending technical assistance and educational and technical training,” Miranda said. “Many of the...

The East African Community Secretariat has asked the International Monetary Fund for advice on how to harmonise its taxation policies as part of the ongoing regional integration programme. East African countries are seeking to harmonise their tax procedures in line with the EAC Treaty and the Common Market Protocol in order to boost investments and ensure free movement of goods, capital and labour in the region. So far, only Customs duties have been harmonised by setting a common external tariff (CET) in respect of imports into Kenya, Uganda, Tanzania, Rwanda and Burundi. Under the Customs Union Protocol, which came into force on January 1, importation of raw materials, capital goods, agricultural inputs and some medical equipment into the EAC attracts zero duty. Importers of intermediate goods and other essential industrial inputs pay a tax of 25 per cent while finished products attract 30 per cent duty. “We are asking for input from the IMF, which has experience and is able to give us advice on how best we can achieve tax harmonisation,” said Peter Njoroge, director of economics at Kenya’s Ministry of EAC Affairs. “It is a complex issue, because even the European Union has never fully harmonised its taxes.” In the EU, plans to harmonise VAT and excise duty date back to 1967 and the early ’70s, respectively, but member states are still free to agree on their own tax systems as long as they comply with the bloc’s rules. The structure of taxation in the EU differs significantly...