Communities living within a ten-kilometer radius of the common boundary between Kenya and Tanzania have been exempted from custom regulations whilst trading in goods and services. A communiqué singed between Kenya and Tanzania allows those living near the border to move freely without being subjected to movement permits. Trade between countries is normally regulated to ensure each country reaps maximum benefits from the deals. This could either be through tax collection or control of entry of some goods. However, communities of living closer to the border are seen as being denied the market if both countries slap blanket regulations. It is on this backdrop that Kenya and Tanzania in 2012 signed a deal allowing those living within a ten-kilometer radius of the common border to move freely without being subjected to movement permits. However, recently the Maasai community raised concern about some taxation imposed against their livestock while they crossed the border in search of pasture. A representative of the community stressed the need of involving them in the integration journey which was a pre-curser to the operationalization of the One Stop Border Posts. Based on this Kenya Revenue Authority and Tanzania Revenue Authority convened meetings to address the issue. A ten man committee was formed to come up with cross border procedures and regulations for the peaceful co-existence between the pastoralist Maasai community and other stakeholders, to ensure that livelihood amongst the local communities was not disrupted, as the move would impact negatively the success of the EAC integration....

East African countries should always do impact assessments and look out for rewards in each agreement they negotiate with their partners, trade experts have said. Dr Francis Mangeni, the director of Trade Customs and Monetary Affairs, Common Market for Eastern and Southern Africa (Comesa), says EAC countries ought to negotiate from a point of strength, stating the performance requirements and sequencing of bargaining conditions. “Before you go into these negotiations, you need to prepare and do your homework. This will tell you how to structure your plans,” he said during a regional stakeholder consultative meeting. The workshop was held under the theme of Promoting pro-development investment policies and agreements in the EAC, and was organised by SEATINI Uganda with support from Diakonia, a development organisation. A performance requirement refers to things that tell an investor what a country’s priorities are. Sequencing bargaining is a condition where investors are given preferential treatment according to a country’s national laws. While presenting a paper on investment and sustainable development in regional integration within the EAC community, Mangeni said: “Before an investor enters into a country, he or she should be subjected to performance requirements. There is no country on earth that gives anyone a right of entry into their country for the sake.” Ambassador Nathan Irumba, the SEATINI executive director, said thinking long-term as opposed to short-term investment will add value to the country. “There is a quest for investments in the partner states, but the question is can we have the right...

The East African Business Council (EABC) has welcomed Tanzania's pledge that it will 'soon' join the East African Community One Network Area (ONA) which harmonises tariffs on voice calls within the region. Paying a courtesy call on the EAC Secretary General, Dr Richard Sezibera, in Arusha, a Tanzanian official last week said the harmonisation of mobile call tariffs would come into effect as soon as the existing telecommunications policies and regulations are revised. No particular timeline was given but the Director General of the Tanzania Communications Regulatory Authority (TCRA), Dr Ally Yahaya Simba, disclosed that first to be harmonised would be roaming charges on voice calls with data charges to follow later. EABC chairperson Denis Karera told The New Times that: "We've been pushing for it every other month. It is a welcome development that will facilitate and enhance business in the region. It is a very welcome gesture and, as EABC, we celebrate it, even as, the grand picture of doing business, it is a drop in the ocean." "Our wish would be that Tanzania also joins other EAC partner states in allowing citizens to use their national IDs to travel within the region as this would make business easier. Being able to communicate yet people can't move easily creates a bit of a contradiction. Our call is for them to also embrace the single East Africa Tourist Visa (EATV); and remove all the existing road blocks and other non tariff barriers that exist." Once Tanzania joins the ONA,...

EAST African manufacturers have raised concern over lack of standards in some cosmetic products which they say is negatively impacting on sales. The East African Community (EAC) manufacturers observed that the products without standards cannot compete favourably on the international markets. Simpson Birungi, managing director at Movit Cosmetics said since many products have no standards to benchmark on for quality assurance, their products are being shunned in other countries. "We need to all adopt specific standards from European Union to enable us trade and remain competitive. This will enable us generate more revenue since our products' geographical supply chain will not be limited to only EAC states," explained Birungi Birungi was recently making a presentation at Speke Hotel, Munyonyo on the key non-tariff barriers during the East Africa's manufacturer's summit. The summit attracted the manufacturing industries with the goal of developing the element of challenges facing manufacturer's across EAC member states. Top on the agenda that manufacturers also noted was the bureaucratic multiple testing of the products in adherence to quality. They cited how products are tested at many points and after having passed the test, the same products are again subjected to other tests. "We feel this is becoming more bureaucratic and time wasting as we transport our commodities to different markets. If possible, let us harmonious the East African standards body to conform to one form of tests," said Birungi According to the East African protocol, once a product has the Q mark, it means it is granted...

Communities living within the radius of ten kilometers along the common boundaries of the East African Community member states can now move freely with their goods and services without being subjected to customs regulations. A communique signed between the Republic of Kenya and, United Republic of Tanzania in 22nd February 2012, allows for example communities living between Ilbisil in Kenya and Longido in Tanzania to move freely without being subjected to the rigors of the movement permits. The announcement was made recently during a 2nd Joint Border committee meetings for Kenya and Tanzania held at the Namanga border post, Tanzania. The meetings were coordinated by the Kenyan and Tanzania’s Revenue Authority officials. They were co-chaired by revenue station managers Dishon Njuguna (Kenya Revenue Authority), and Aminiel Lewis Malisa (Tanzania Revenue Authority. A ten-man committee was formed during the meeting to come up with  cross-border procedures and regulations for the peaceful co-existence between the  pastoralist Masai community and other stakeholders, to ensure that  livelihood amongst the local communities was not disrupted, as the move would impact negatively the success of the EAC integration. Malisa challenged the border committees to come up with simplified trade regime, to enable the community living along the common border move with ease. The move comes after the Masai community raised concern about some taxation imposed against their livestock while they crossed the border in search of pasture. A representative of the community Keria Ole Mandina stressed the need of involving them in the integration journey which...

ARUSHA, Tanzania - Relations between India and the East African Community are set to be revitalized especially in the areas of trade, cultural exchange and development cooperation.  India’s High Commissioner to Tanzania and Representative to the EAC, Mr. Sandeep Arya, said his country was keen on strengthening trade and cultural ties with the EAC which date back several centuries. Mr. Arya said India already had bilateral projects in most of the EAC Partner States particularly health and agriculture, adding that they wanted to partner with the EAC to boost trade volumes and promoting industrial growth in East Africa. Mr. Arya said he would work closely with the Confederation of Indian Industries and the Indian Exim Bank in these initiatives, noting that these partnerships should for a start be between these two institutions and the East African Development Bank and the East African Business Council. Mr. Arya was speaking after presenting his credentials to the EAC Secretary General, Amb. Dr. Richard Sezibera, at the EAC Secretariat in Arusha, Tanzania. Dr. Sezibera thanked India for its support to the Partner States singling out the scholarships granted to students from the Partner States to study in India. Dr. Sezibera also cited the support granted to the Community by India in the preparation of the East African Railways Master Plan the implementation of which he said would revolutionize the transport sector in the region. He disclosed that  one of the challenges faced by the EAC in relation to the free movement of goods across...

ARUSHA, Tanzania - Tanzania will soon join the East African Community (EAC) one network area which harmonizes mobile phone tariffs on voice calls within the East African Community. The Director General of the Tanzania Communications Regulatory Authority (TCRA), Dr. Ally Yahaya Simba, said the harmonization of mobile call tariffs which will significantly reduce roaming charges for calls originating from other EAC Partner States would come into effect as soon as the existing  telecommunications policies and regulations have been revised. Dr. Simba said first to be harmonized would be roaming charges on voice calls with data charges to follow later. The EAC Heads of State Summit at their last meeting directed the Council of Ministers to expedite the implementation of the framework for harmonized EAC roaming charges, including the removal of surcharges for international telecommunications traffic originating and terminating within the EAC by July 15th, 2015. The regional framework for the One-Network-Area applies to telephone calls originating and terminating within the region and mandates members to adopt the following: Exemption of regional calls from surcharges applied by member states on international incoming calls.  No additional charges to subscribers on account of roaming within the region. And no charges for receiving calls while roaming within the region Dr. Simba was speaking when he paid a courtesy call on the EAC Secretary General, Amb. Richard Sezibera, at the EAC Headquarters in Arusha.  The TCRA CEO, who was on a familiarization tour of the EAC Secretariat, was accompanied by TCRA’s Deputy Director (Zonal Coordination),...

The cost of importing goods into the East African Community through the Single Customs Territory (SCT) will go down under a new, reduced import insurance rate. Under the amended EAC Customs Management Act 2010, all partner states will charge a cost insurance freight rate of one per cent on all imported goods under SCT, down from the initial 1.5 per cent and above. “For purposes of computing the Customs value, where no insurance is ascertainable, the price paid is to be increased by the national charge for insurance, which should be taken as 1 per cent of CIF for imported goods,” said the EAC ministers. The EAC partner states charge different import declaration fees. In Kenya, it is 2.25 per cent of the CIF value; in Rwanda it is 5 per cent and Uganda 6 per cent. The East African Legislative Assembly recently adopted an amendment to the EAC Customs Management Act that will enable persons intending to import goods to write to the commissioner for advance rulings on either tariff classification, rules of origin or Customs valuation. In the past, EAC importers and revenue authorities have disagreed on the tariff code under which an item should be classified and the Customs value that an item should be accorded. Import insurance rate “The Customs valuation should be based on the actual price of the goods being imported, which is indicated on the invoice, especially on goods like cars,” said Kenya Shippers Council chief executive Gilbert Langat. Mr Langat said that...

Rwandan clearing and forwarding agents are protesting high port costs and delays by Tanzania in issuing work permits. Tanzania charges $2,000 for work permits while Kenya, Uganda and Rwanda have scrapped the fees. Without the permits, Rwandan firms cannot do business at Tanzanian ports. Only five Rwandan clearing firms have unlimited access to Dar es Salaam port out of 200 registered. “There is a need for a physical presence at the port. But for a long time, most Rwanda clearing agents have not been facilitated to have such a presence,” said a Rwanda Customs official. By comparison, Rwandans say it has been easy for them to establish a presence in Kenya and Uganda. Rwanda Revenue Authority Commissioner General Richard Tusabe said he appreciated the challenges but was optimistic they are being addressed, “though at a slow pace.” Recently, the EAC Council of Ministers directed that member states waive work permit requirement and fees for the staff implementing the Single Customs Territory. Tanzania maintains that EAC citizens employed in the country must pay for work permits until the EAC Common Market Protocol is full implemented. Deputy Minister for EAC Co-operation Abdallah Saadala asked the Rwandan clearing and forwarding agents to pay for their work permits until the EAC partner states harmonise their labour laws. “This is not Tanzania’s fault,” Dr Saadala noted. However, the EAC Single Customs Territory Protocol, of which Tanzania is a signatory, requires each partner state to facilitate free movement of goods and services in the region. Source:...

East African Community members have pulled out of a proposed regional power sharing pool to avoid duplicating the intentions of a bigger initiative. The five EAC countries have since 2003 been interconnecting their power lines to improve supply, stabilise access and foster trading in electricity across national borders. The EAC’s senior energy officer Peter Kinuthia said the EAC member states also belonged to the wider Eastern Africa Power Pool (EAPP) under which the EAC Power Pool falls. EAPP is meant to link up nine countries by 2018. The overlap would not make investment sense as member states are required to contribute to each initiative. This means that the five countries will have their power lines connected to the larger power pool, whose headquarters will be in Addis Ababa. Four other countries —Egypt, Ethiopia, Democratic Republic of Congo and Sudan — are members of the wider pool. Mr Kinuthia said the experience of EAPP has shown that contributions from member states and member utilities are not sufficient to cover the recurrent and development budget.  As a result, resources have to be mobilised from development partners. EACPP would face a similar scenario; besides, it would be approaching the same development partners currently supporting EAPP. Under the Tripartite Free Trade arrangement, a regional power market linking EAPP and the Southern Africa Power Pool (SAPP) is envisaged. It is estimated that about a quarter of electricity generated in EAPP countries comes from hydropower with future investments creating a greater dependence on the resource. “Linking up...