JUBA (HAN) August 20.2016. Public Diplomacy & Regional Security News. The East African Community Extraordinary Summit scheduled for Dar es Salaam next month will not mediate the South Sudan conflict as the country is yet to attain membership status in the regional body. A spokesperson for Tanzania’s Ministry of Foreign Affairs, Mindi Kasiga, told The EastAfricanthat despite signing up to become an EAC member, South Sudan is yet to deposit instruments of ratification with the EAC Secretariat. Ms Kasiga said that the agenda for next month’s EAC Summit which had earlier been scheduled for August, 19, is an evaluation of the status of the ratification of the EAC Treaty by South Sudan. The postponement of the Extraordinary Summit was requested by the Kenyan President Uhuru Kenyatta, Ms Mindi said, without giving the reasons for the request. However, another source said that Tanzania had said it was not ready for the Summit. Tanzania has reiterated its support for mediation effort undertaken by leaders of the  Inter-Governmental Authority on Development (Igad), which is pressing the reluctant President Salva Kiir to accept the offer of beefing-up of peacekeeping troops composed of both Igad and UN, to avert a full-scale war in the world’s newest state. The UN agency for humanitarian affairs and emergency relief has warned that the situation in South Sudan could slide into “even worse humanitarian tragedy” if immediate preventive measures are not taken. The extraordinary summit will also deliberate on a report from the EAC’s mediator for the Burundi peace talks, the...

Dr Magufuli, who doubles as the chairman of the regional economic grouping, mentioned some of the most persistent challenges as access to clean and safe water, improving transport infrastructures, strengthening health services and build industries that would lead to increase of employment and revenues. He noted this in a conversation with the EAC Secretary General, Ambassador Liberat Mfumukeko, at the State House in Dar es Salaam. “It would be more beneficial if you executives of the EAC make big efforts to ensure that member countries focus on addressing problems facing the people,” he said, adding: “if you manage to do this and work on reducing unnecessary expenditure, we will achieve more.” He commended Ambassador Mfumukeko, who took over the position last April, for coming up with good plans and strategies towards implementing the community’s objectives, including reducing expenditures, attract investors and closely supervise projects and programmes under the bloc. Mr Mfumukeko expressed satisfaction on the cooperation he receives from Dr Magufuli as EAC chairman and promised to perform his duties accordingly for the benefit of East Africans. Meanwhile, President Magufuli said goodbye to former Country Representative of the United Nations Population Fund (UNPF), Dr Natalia Kanem, who has recently been appointed to the post of Deputy Secretary General and Deputy Executive Director of the organisation. Dr Magufuli commended Dr Kanem for being appointed to the new position, saying he was optimistic that she is going to be a good ambassador for Tanzania, particularly on influencing the United Nations to help...

Presidents of East African Community partner states recently announced they were banning imports of used clothes, locally known as caguwa. They gave sound economic reasons for the ban: promoting the local textile industry and other economic activities linked to it, creating jobs, raising taxes, and so on. There was even an appeal to a sense of pride. Wearing clothes someone else has discarded (in Rwanda that is called gukuburirwa) is not exactly dignified. No one goes around proudly showing off such clothes (ibikuburano). Despite these good reasons, the decision was bound to be contentious. And it was, by East Africans. Importers and wholesalers, big retailers in the towns and smaller ones in the village markets for whom it is good business wouldn’t let go without at least making some noise. Ordinary people also find second-hand clothes very affordable. That was to be expected and is understandable. Which is why East African leaders announced a phase-out period for the ban to be fully implemented. But now stiffer opposition to the ban on used clothes has come from an unlikely quarter – or maybe it is not so unlikely – the United States. Uganda’s Daily Monitor newspaper reported Wednesday, August 17 that the US Ambassador to Uganda warned the country against implementing the ban. Amb. Deborah Malac is reported to have issued the warning when she made a courtesy call on the Speaker of Uganda’s parliament, Rebecca Kadaga. Don’t be fooled by nice diplomatic words like “courtesy call”. They do not always...

Trade relations between the East African countries of Burundi and Rwanda have worsened following a ban of food exports to Rwanda that Burundian exporters fear will affect their ability to repay their loans. The government of Burundi banned food exports destined to Rwanda at the end of July, later restricting transportation links between the two countries to help enforce the ban. Since then, prices have fallen so much that exporters are reportedly concerned about their livelihood. The government justified the ban saying they aim to save food for national consumption in case of famine, but the local press has reported that the move is aimed at hurting Rwanda, with second vice-president Joseph Butore reportedly stating: “We can’t give the fruit of our labour to Rwanda because they want to fight us.” On his part, Rwanda’s minister for trade and industry Francois Kanimba stated at a press conference that the decision would not in any way affect Rwanda’s economy, but that it impacted badly on the East African Community (EAC), of which both Burundi and Rwanda are members. “This is a very serious breach of EAC free trade regime,” he said. The speaker of the East African Legislative Assembly (EALA), Daniel Kidega agreed with the Rwandan minister. “What Burundi is doing is a serious breach of EAC trade agreement and EALA is going to investigate the matter and find an immediate solution. The region is not happy at all. This hinders the regional integration process,” he said to local press. Relations...

The East African Community has, over the past decade, been undergoing an integration process to open up opportunities for its over 146 million citizens by creating a larger market for business players in the region. The initiative also seeks to reduce the cost of trade and improving intra-regional trade that is still low compared to other trading blocs across the world. These efforts have already started to bear fruit with a recent World Bank report, “Connecting to Compete 2016: Trade Logistics in the Global Economy” showing that the bloc had registered improvement in the movement of goods across borders. The survey ranked trade logistics performance of 160 countries globally. Interestingly, administrative as well as trade and transport reforms in the EAC region have had the greatest impact on logistics compared to infrastructure investments. This has translated into faster transit times and shorter dwell times, according to the report. It indicates that the average dwell time at Mombasa port reduced from 13 days in 2006 to about three days, while the Malaba border crossing point between Kenya and Uganda registered a decrease in border clearance times from 24 hours to six hours. The average time taken to move cargo from Mombasa to Kampala dropped to three days from 18 days, while Mombasa to Kigali now takes about six days compared to 21 days previously. All these developments have helped reduce the cost of doing business by 50 per cent. So, it is crucial that while regional governments promote hard infrastructure development,...

Efforts to advance the East African Community have often veered between halfhearted and impractical. The regional grouping must adapt – via strong yet achievable economic steps – in order to progress. For some, the 1977 dissolution of the East African Community (EAC) finally marked the forlorn end of Africa’s decades-long flirtation with Pan-Africanism. For others, it represented the triumph of sovereignty and nationalism over unrealistic infatuations with asymmetric economic marriages. The last fifteen years of the organization’s newest iteration have fallen somewhere in between the two – with ambitious pronouncements foreshadowing economic and even political integration coexisting withregional rivalries that have threatened to scupper the entire project. However, what is most needed is not wasted political capital nor governments looking inward, but a balanced solution: concrete steps to solidify the existing union and increase free flows of capital and labor, while giving each of the EAC’s member states the ability to craft domestic policies to suit their own domestic environments. How to achieve this? First, focus on improving the EAC’s economic mainstay – the customs union that binds together Tanzania, Kenya, Uganda, Rwanda, Burundi, and, very soon, South Sudan. It all starts with the Customs Union Since 2005, EAC member states have been able to trade goods and some services with each other free of tariffs, in most cases. They have also synchronized and often reduced most of their external tariffs, reducing the transaction costs of international trade for foreign exporters and reducing the likelihood of one East African state...

By Anitha Kirezi East African exchanges should fast-track integration initiatives like the capital markets infrastructure (CMI) project, and create a pool of skilled personnel. This is essential to position the regional stock market as a platform of choice for raising long-term funding for governments and business community, Celestin Rwabukumba, the East African Securities Exchange Association (EASEA) chairman, has said. Speaking at the 27th consultative meeting in Dar es Salaam recently, Rwabukumba said the CMI project that is nearing completion presents new possibilities for investors seeking cross-border trade opportunities. With capital markets across the world becoming increasingly automated and integrated, regional stock exchanges require a modern system that meets different market needs. This will also make it possible for EAC capital markets to attract global capital flows and participate in international capital markets. Meanwhile, EASEA has agreed to increase product offerings at each stock market, train market intermediaries, carry out public awareness drives and support integration of market infrastructure as they plan to draft a five-year strategic plan. According to a statement from the EASEA secretariat, these initiatives are aimed at increasing market liquidity and depth. Rwabukumba, who is also the Rwanda Stock Exchange (RSE) chief executive, has commended the Securities Industry Training Institute - East Africa, noting that the institute will help market players improve skills and technical capacity to meet global standards. "The institute is at the forefront of driving capital market training to meet the growing demand for relevant expertise in the market," he added during the summit...

East African Community states need to develop rural infrastructure (especially electricity and ICT) to enhance mobile phone penetration and facilitate its use. The call was made by experts in reaction to the 2016 Brookings Financial and Digital Inclusion Project Report, which, despite showing substantial progress toward advancing financial inclusion in regional countries, indicates there is room for improvement. The report, released last week, evaluates commitment to and progress toward financial inclusion across 26 countries. It says Kenya retained its position as the highest-ranked country in the study by a five percentage point margin. Of four East African Community (EAC) countries in the study, Kenya scored an overall 84 per cent followed by Uganda and Rwanda at 78 per cent and 76 per cent, respectively, with Tanzania trailing at 68 per cent. Kenya, South Africa, Brazil, and Uganda held their places in the top five-ranked countries between 2015 and 2016. Country scores are hinged on four dimensions: country commitment, mobile capacity, regulatory environment, and adoption. The lowest income economy among the countries ranked at the top of the FDIP scorecard was Uganda driven in part by its strong levels of mobile money adoption. Rwanda, which ranked among the top 10 countries overall, is the other low-income country that demonstrated “a particularly strong performance” on the FDIP scorecard “Rwanda provides an effective example of how country commitment to advancing financial inclusion and the promotion of digital financial services can lead to a more inclusive financial ecosystem,” the report says. Rwanda jointly topped...

NAKURU, KENYA: The East African Grain Council (EAGC) has asked leaders in East African Community to incorporate private sector in promoting inter-regional trade. sector in EAC integration By Mercy Kahenda Updated Mon, August 15th 2016 at 12:13 GMT +3 SHARE THIS ARTICLE NAKURU, KENYA: The East African Grain Council (EAGC) has asked leaders in East African Community to incorporate private sector in promoting inter-regional trade. EAGC executive director Gerald Masila said policy to include private sector should be in line with EAC integration policy. Masila said there is huge investment gap in EAC member countries that should support cereal and grain value chain addition to boost food security and economy of farmers. "EAGC is working close with governments to ensure there are more private sectors investing in farming to boost production and inter-regional trade," said Masila. Masila said EAGC is engaging the EAC governments not to put barriers to regional trade for instance restriction of trading licenses to farmers that lock potentials. He said limiting trade barriers will see farmers sell their produce freely in EAC a move that will boost food security and economy among the states. Source: Standard Media

The East African Community regional integration process has seen the region register improvement in logistics performance which had stagnated in previous years, a World Bank report has said. The bi-annual report, ‘Connecting to Compete 2016: Trade Logistics in the Global Economy’, ranked 160 countries on their trade logistics performance as well as the region, identifying the challenges and opportunities. The report noted that the move by the East African Community nations to integrate into one bloc had elevated the region’s logistics performance, consequently making it more attractive for investments and reducing the cost of doing business. Among the most notable changes observed by the survey was the elimination of multiple barriers to trade and transport, such as cumbersome procedures. “The Northern Corridor was once known for multiple barriers to trade and transport, including lengthy dwell times at Mombasa port and cumbersome clearance procedures along the corridor. In 2012–13, the corridor countries started a series of reforms that significantly improved the logistics environment and drove down logistics costs,” the report’s authors observed. Integration, the report says, saw the establishment of a single customs territory, thereby tackling unbearable clearance procedures. “One of the reforms was to introduce Single Customs Territory clearance procedures within the East African Community, including Burundi and Tanzania. This means final customs clearances for free circulation can be made already at the port of entry in Mombasa. The system has significantly reduced administrative burden and shortened the time required for customs formalities,” the authors said. With the single customs...