Our Reporter. The African Union (AU) has signed a partnership with TradeMark Africa (TMA) aimed at boosting intra-African trade and fast-tracking the realization of the Africa Continental Free Trade Area (AfCFTA) ) in selected Southern and Eastern Africa countries – Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, Ethiopia, DRC, Zambia, Malawi, and Mozambique . The agreement was signed in Addis Ababa this week by Amb. Albert Muchanga – the AU Commissioner for Trade and Industry, Amb. Erastus Mwencha – the TradeMark EA Board Chair and Frank Matsaert – the TradeMark EA CEO. Speaking at the signing, Amb. Albert Muchanga – the AU Commissioner for Trade and Industry noted that the ‘AU is indeed excited to work with TMA; renowned organisation that has implemented successful trade facilitation programmes in East Africa.’ Amb. Albert Muchanga said; “We want to complement our efforts in implementing the ambitious boosting intra African trade programme, leverage TMAs experience and ensure similar trade facilitation initiatives are implemented to boost trade and prosperity for the people in this region.” On behalf of TradeMark Africa, board Chair, Amb. Erastus Mwencha said, “This partnership with the African Union is an important milestone and embodies our vision for a prosperous Eastern Africa. TMA can help fast-track implementation of the AfCFTA by supporting the African Union (AU) programme for Boosting Intra-African Trade (BIAT).” “By implementing quick win measures to ‘thin’ borders and reduce the cost and time to trade along key corridors, TMA will help keep momentum going for this ambitious initiative to...

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The AfCFTA Forum in Tanzania raised awareness about AfCFTA implementation, and demonstrated the value of doing so. Organised by the UN Economic Commission for Africa (ECA) and Trademark East Africa (TMA), the Tanzanian edition of the AfCFTA forum was held in Dar es Salaam on Tuesday 22 Oct 2019 and was attended by policymakers, private sector and the civil society representatives. John Ulanga, CEO of Trademark East Africa (TMA) in Tanzania,  emphasised the importance of that forum, underscoring the role of development partners like TMA and ECA in raising visibility and understanding of the AfCFTA. Andrew Mold, Acting Director of ECA in Eastern Africa, made a presentation highlighting the potential benefits of AfCFTA.  “The implementation of the AfCFTA could result in welfare gains amounting to USD 1.8 billion for Eastern Africa and creating 2 million new jobs”, said Mold. Participants at the meeting affirmed that increased awareness of AfCFTA in the country is very essential. They also noted that harmonising standards across the region would tackle the issues associated with non-tariff barriers, and this translates as more – and more fruitful – trade within and between East African countries. Infrastructure will also prove instrumental in reducing the cost of doing business in Tanzania, and therefore holds another key for unlocking the full potential of AfCFTA. Meanwhile, the role of informal trade was emphasised, with it emerging that participants were keen to understand how the AfCFTA could move people into formal work. This Forum held in Dar Es Salaam is one in a...

TAXES     IMPORTS KAMPALA - Kampala City Traders (KACITA) on Monday protested the implementation of the new directive requiring them to start paying import taxes at first port of entry into the East African community. During a heated meeting with URA officials, the traders also protested URA’s directive to clear their goods within 24 hours after arrival in Mombasa or Dar- es -Salam, saying this does not allow them enough time to get money to clear the taxes. “Most of us borrow money from banks and money lenders who sometimes take longer to process the money. This means that by the time the loan is approved, the trader may have already lost their goods, or required to pay heavy fines,” Everest Kayondo KACITA chairman said. He further said that traders are concerned because most of their goods, especially from China, are usually ordered on credit, and cleared a few days after they reach Mombasa. Kayondo said it will be impossible for traders to purchase goods in the new arrangement which will force many of them to close their businesses. The Chinese ask for money before they give us clearing documents and yet we have to clear taxes within 24 hours, which makes it impossible for the business to survive in this kind of system. The Kenyan government has threatened to suspend any clearing firm that revokes the set time and now the Kenyans are threatening to avoid Ugandans if we do not show proof of tax clearance fees,” he said. Last...

The minister of Trade, industry and cooperatives Hon Amelia Kyambadde has said that trading of manufactured goods between Uganda and Rwanda has dropped significantly over the political squabbles between the two countries. Kyambadde while addressing journalists about Africa Industrialization Day in Kampala today, revealed that trade in manufactured goods between Ugandan and Rwanda over the past months had dropped from USD 300 million to USD 73 million. She attributed this mainly to the closure of the Katuna boarder, which remains closed since March. Rwanda has continued to show less interest in having the stand off resolved. Recently Rwanda pulled out of the second meeting of the peace talks between officials of the two countries in which the reopening of the border was supposed to be discussed. p>Today, Uganda joins the rest of Africa to commemorate Africa Industrialization day with the objective to raise awareness on opportunities and challenges faced by the continent in respect to Industrialization. This year’s theme is “positioning African industry to supply the African continental free Trade area (AFCFTA) market” which was launched on 7th July 2019 by African Heads of State in Niamey, Niger. AFCFTA provides a market of about USD 3 trillion and a consumer base of 1.3 billion people. With this, Kyambadde said Africa’s manufacturing sector is projected to double in size by 2025 and create millions of jobs. She said that government targets to exploit the abundant renewable energy sources to increase power generation to 2500MW by 2020. “The commissioning of Isimba hydropower...

The East African Community (EAC) is not ready for the fourth industrial revolution even as the wave sweeps across the world. This is according to experts who spoke at an industrial conference at the EAC Secretariat in Arusha this week organised by the United Nations Industrial Development Organisation (Unido) and German Society for International Cooperation. The Global Manufacturing Industrial Summit (GMIS) roadshow sought to explore the implications of the revolution for the region’s manufacturing, industrialisation and investment prospects. For us to achieve inclusive and sustainable industrialisation, we need to invest in advanced disruptive technologies like 3-D printing, Internet of Things, advanced robotics and drones, which will make manufacturing smarter, efficient and greener,” said Stephen Kargbo, Unido Representative in Tanzania, Mauritius and EAC Secretariat. He added that the advancement of these manufacturing technologies will also help improve acquisition of agro-industries, water and sanitation quality for the rapidly developing towns and cities. Most of these industrialised countries account for over 90 per cent of digital production technologies, have invested hugely in research and development campaigns and we have to move in that direction,” added Kargbo, who said there is also need for solid industrial policy. EAC first came up with an industrialisation policy for 2012-2015 but it failed to be implemented and was revised to 2021-2032. The contribution of manufacturing to the gross domestic product in East Africa is estimated at 8.9 per cent, which is considerably below the average target of about 25 per cent that all the five partner states...

The meeting is held during the “Africa Industrialization Week”, organized by the African Union from the 18th to the 22nd November 2019, according to the press statement from AFZO. The attendees include over 220 delegates representing 43 countries attended this important event, including 60 African economic zones, 30 experts, as well as several representatives of governmental authorities, international institutions and public and private organizations. Several international speakers representing international and financial institutions such as UNCTAD, UNIDO, UNECA, AfDB etc. shared during this event their expertise on effective means for economic zones development in Africa. the statement noted that various topics related to challenges and trends of African economic zones were addressed including strategic directions and effective governance model, contribution of economic zones for FDI growth and job creation, importance of logistics competitiveness within economic zones, skills development and training. The opening ceremony of the Africa Free Zones Organization’ 4th Annual Meeting was cochaired by M. Albert Muchanga the Commissioner for Trade and Industry of the African Union Commission (AUC), Ms Dagmawit Moges the Minister of Transport of Ethiopia, M Mehdi Tazi Riffi the President of the Africa Free Zones Organization. Serving the development of Economic Zones in Africa AFZO was founded back in 2015 by Tanger Med along with other African economic zones. Africa Free Zones Organization brings together the leading African economic zones and institutions in charge of the development, management and promotion of economic zones in our continent. The Africa Free Zones Organization aims to ensure: – Representation...

East Africa’s private sector players are concerned by the slow pace of resolving a common external tariff (CET) regime which is expected to usher in a free trade zone. A free trade zone will increase intra East African Community (EAC) trade, as there will be no duty on goods and services imposed amongst them. The regime will also agree on a common CET, where imports from countries outside the bloc will be subjected to the same tariff across partner states. Though Nicholas Nesbitt, the chair of East African Business Council, did not directly refer to the frustrations, it is an inference taken out of his statement when he said the issue was creating a “dilemma.” Council agenda Nesbitt said finalising the review on CET was part of an item on the council’s agenda, to be presented to the EAC council of ministers for delivery of quick wins for the region. “There are ongoing discussions whether to adopt a three-band or four-band structure with the highest rate of 35 per cent CET. The challenge is if you are a manufacturing country, you will want a high CET while trading countries will want a low CET to import finished goods for your citizens. Therein, lies the dilemma,” said Nesbitt. The implementation of CET is behind schedule, as it was to take effect on July 1, this year. The bloc’s member states had agreed there be a CET of zero per cent on raw materials and capital goods, 10 per cent on intermediate...

Ugandan traders have missed 440 billion Shillings in potential earnings between March and September 2019, a period during which Rwanda has maintained a closed border at Gatuna. This is according to a compilation of figures from Bank of Uganda. The figures, compiled monthly, show that traders in Uganda earned a paltry USD 8.3 million (31 billion Shillings) in the seven months to the end of September 2019. This is less than the USD 128.7 million (471 billion Shillings) that Ugandan traders earned in the same period last year when the border was open. Ironically, figures show that Rwandan traders earned more from Uganda compared to what their counterparts in Kampala earned from Rwanda. They clinched USD 9.98 million (36 billion Shillings) in the same period, up from USD 12 million earned when the border was open.  The figures don’t account for the informal trade between both countries. For Uganda, the figures are a pointer to how destructive the impasse has been to the free-flow of goods and services, the hallmark of the East African Community integration. Today November 18, 2019, both countries were expected to meet in Kampala to discuss the border opening. But Rwanda called off the meeting adding another layer of uncertainty on when trade can resume. Isaac Shinyekwa, a researcher on regional integration said in the long run, both countries will resolve their issues but there is still an inability for two countries to figure what they want exactly. He said there were more deep-seated issues that...

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