Inconsistencies in the proposals to ratify a number of treaties governing the East African Community (EAC) member states has been cited as a stumbling block in creating a harmonized, democratic and consultative approval process as the region gradually integrates. In Uganda, the Ratification of Treaties Act 1998 empowers the cabinet to approve all agreements made by the country except in cases where such treaties relate to peace agreement. However, the current process in Uganda does not involve parliament, a critical arm of government, which enables a wider consultation among stakeholders and subsequent debate to scrutinise the benefits and the likely costs of ratifying such a treaty on the economy. In Tanzania, it is the national assembly to approve treaties, while in Burundi and Rwanda, it is the presidency. In his presentation during a national consultative meeting on the ratification of trade and investment-related treaties in Uganda, and the EAC organized by SEATINI Uganda in Kampala recently, stakeholders argued that it was important to put the issue of ratification of treaties into the public domain for a wider stakeholder understanding and democratisation of the process. “Democratic gaps still exist in the ratification of trade and investment agreements in Uganda as a whole. There is, therefore, a need to examine the implications on the economy and people’s livelihoods,” said Martin Luther Munu, the programme officer SEATINI Uganda. Babra Turyasingura, a legal officer from Uganda Law Reform Commission, says ratification is the prerogative of the president and people should not compete for that...

Authorities in Nairobi, Kampala, and Kigali are caught in a race to expand key road infrastructure following an upsurge in vehicle traffic. The traffic woes around East African capital cities reflect the high number of vehicles cleared at the Port of Mombasa which has grown sharply over the years, piling pressure on governments in the region to expand existing infrastructure facilities. A total of 157,856 motor vehicles were discharged in 2014 compared to 136,915 units cleared the previous year, an increase of 20,941, statistics by the Kenya Ports Authority (KPA) showed. In 2012, 120,268 units were cleared at the Mombasa port, which also serves landlocked countries like Uganda, Rwanda, Burundi and South Sudan. Tanzania does most of its importations through the Dar es Saalam port. Projections showed that the number of cars getting into the East Africa region is expected to grow progressively. The growing number of vehicles getting into the region and using the roads has put pressure on the existing infrastructure, necessitating the expansion of road networks in major cities. The need for more roads is independent of the developing EAC railway project and the expanding of Eastern and Northern Corridors. The expansion of roads will ensure the number of vehicles getting into the region will not cram the existing roads, which were previously designed to accommodate fewer units. After the expansion of Thika road and building of Eastern, Southern and Northern bypass, the Kenyan government has also embarked on the expansion of road networks within the city,...

TradeMark Africa plans to spend Sh8.24 billion on infrastructure developments within the East Africa Community to boost intra-regional trade. The regional logistics non profit company said in a statement after official release of its annual report that the money will be spent on infrastructure projects that will ease cross border trade further. “We are focusing to invest around $85 to $90 million, which will spur investments and benefits citizens of East Africa,” CEO Frank Matasert said in the statement. The report showed that cargo clearance processes at regional border posts across the EAC member states has eased leading to improved trade. In the current financial year 2014/2015, TradeMark said it will focus on achieving harmonised standards for goods in the region, with 108 standards so far harmonised. Out of these, 41 were adopted as EAC standards and 42 are under consideration. The standards will represent seven of the 20 most traded goods within the EAC. Trade improvement efforts by the non-profit organisation have however suffered setbacks due to terrorism and depreciation of regional currencies, a problem the CEO projected will continue into the near future. Some of the breakthroughs made in the last financial year, according to the TradeMark EA report include reduction of the average time taken to clear goods at Mombasa Port to four days and number of customs declarations by up to 90per cent, leading to an increase in trade volumes, such as fuel imports into Uganda which have increased from 32.1million litres to 108 million litres....

Kampala — TMA does not call the shots, but follows a path laid out by the East African Community Heads of State Summit writes WINNIE MANDELA. Basically this set out the broadstrokes of what the five countries want in a Single Customs Territory (SCT). The framework spells out the guiding pillars under which SCT will operate free circulation of goods revenue management, and legal institutional framework, operational instruments outlining clearance processes in customs and other agencies to support the implementation of the framework and amendments of the EAC Customs Management Act, were also later adopted. The SCT business manual and compliance framework were approved. A pilot based approach segmented on the Central and Northern corridor, will progressively cover all goods cleared at the first point of entry. ICT manpower will also be enhanced to oversee the development of the Territory. TMA's support to implement the Customs Management System (CMS) for the Kenya Revenue Authority (KRA) continues. Technical proposals for CMS procurement are under evaluation. Installation of the CMS and operationalization of the centre of excellence at KRA are expected to boast efficiency within KRA. The investment is expected to facilitate seamless integration with other national and regional systems to fulfill the EAC Common Market Protocol and create a fully functional customs union The Burundi Revenue Authority OBR collected 558 billion Burundian Francs (BIF) in 2013 which is slightly 2.1% higher than the target and BIF 34 billion above 2012 collections. OBR remains confident of reaching the FY 2014 target, although...

Africa has no choice but industrialise to add value to its natural resources to maximise export earnings from these, Industry and Commerce Minister Mike Bimha said last week.He told journalists at the 18th Common Market for Eastern and Southern Africa (Comesa) Heads of State and Government Summit that government and the private sector should work hand in hand to achieve this goal. Minister Bimha said it was only through industrialisation that Africa can tackle extreme poverty on the continent. At present, the continent largely exports its natural resources - mainly minerals - in raw form cheaply, and re-imports finished products made from these at high cost. President Mugabe, who is also chairman of Sadc and the African Union, has consistently spoken against this trade trajectory of the continent, and pushed for industrialisation and value addition. It is partly due to this that in 2013 the 19-member Comesa group recorded a $6 billion trade deficit, importing goods worth $41 billion against exports of $35 billion. "For Africa to go forward we need to industrialise, there is no way we can continue to export raw materials. We cannot continue to rely on other people converting or adding value to what we produce and in turn sell the same to us at exorbitant prices. That time is way behind us," Minister Bimha said. Source: All Africa

While the Kenyan portion of the new Standard Gauge Railway (SGR) is in part already under construction, the Ugandan portion of the project between the Kenya, Uganda, Rwanda, and South Sudan section will only reach up to the Ugandan border from where separate work contracts and funding will be needed to cross the “Pearl of Africa.” Information received over the Easter weekend speaks of Uganda President Museveni himself witnessing the signing of US$3.2 billion deal with the China Harbour Engineering Company, which will be handling the engineering and procurement side of the project. The main line of the new railroad will cross Uganda and link the border with Kampala. From there, the line is expected to move on to the border with Rwanda, while the dormant line from Kampala to Kasese will also be upgraded. In addition, a branch line will go north to connect the South Sudanese border town of Nimule, from where the section to Juba and beyond then has to be constructed under separate contracts. Questions have already been asked about the route to the Nimule border point, as the Rift Valley Railways operated a narrow gauge line which already extends to Gulu, only a short distance from the South Sudanese border, and with special reference being made to the planned LAPSSET railway. This new SGR line will connect the port of Lamu with both Ethiopia and South Sudan and will no doubt compete for cargo volumes with the branch line from Uganda to South Sudan. Only...

Regional integration optimism as TradeMark Africa projects spur regional trade volumes Historically, exporting finished products and importing raw materials has always been a terrible hustle for local manufactures which import raw materials and export finished products. The whole process includes the preparation and submission of numerous documents to different authorities to comply with import, export and transit regulatory requirements on either side of the borders. These endless requirements, together with their attendant costs in terms of time and resources, have always been big hurdle for private sector players. However thanks to the various projects including the Electronic Single Window (ESW) currently being implemented by TradeMark Africa (TMA), manufacturers can simultaneously submit the required trade information including customs declarations; applications for import and export permits; certificates of origin; and trading invoices, through a single online portal/window. This has resulted into a 30% reduction in transaction costs and time associated with processing documentation for selected imports and exports at key trade regulatory agencies in Uganda. But the ESW is only one of the successful projects that have had a tremendous impact on trade in the EAC. Others, such as the One Border Post, have meant a reduction in clearance time through the Uganda Revenue Authority ASYCUDA World system, which has been slashed by 30 hours. The average time to clear goods at Mombasa port and transport them to Kampala has also come down to just four days, while the number of customs declarations has gone down by 90% leading to an increase...

Local manufacturers face the unwelcome decision to either slash prices of their products or adopt vigorous marketing strategies to keep pace with the growing competition that is dominated by more affordable alternatives from regional companies. The latter alternative in itself is costly as it means having to spend big on marketing. Mount Meru Soyco Ltd (MMSL), Rwanda's only producer of edible oil, has been forced to slash prices of its products by Rwf200 to survive on a local market that's flooded with more affordable imported cooking oil. "We are operating at a loss, we have cut product prices just to maintain a market presence but we know it's not sustainable; cheap imports are hurting us," said Mayur Shrotriya, the firm's head of sales and distribution. MMSL's flag product, Star Goldy cooking oil, is a 50/50 mixture of palm and soya. A twenty-litre jerry can sells for Rwf22,300 on the market, a little more costly than alternatives from the region, such as Bidco and Mukwano, that go for Rwf21,900. Despite having a superior product, clients tend to go for the cheaper option, leading to a drop in demand for Star Goldy. The manufacturer was then forced to slash prices to attract clients. At Quartier Mateus, Kigali's central trading hub, wholesalers said price plays a major role, and clients will always go for the cheaper option. "One can't complain about prices. It's a global phenomenon. Clients and dealers are attracted to the cheaper options," a wholesaler, only identified as Charles, said. MMSL...

Perhaps no single organisation has made such an effective mark on streamlining East African Community (EAC) cross-border trade than TradeMark Africa (TMA). In its annual report for 2013-2014, TMA explains their success Investments in trade infrastructure as well as the dismantling of bureaucratic and procedural barriers to economic integration, is positioning the EAC region as the destination of choice for doing some business. At the centre of all this improvement is TMA who have regional offices in all five EAC countries with Nairobi hosting its headquarters. The report is titled ‘Partnering for Prosperity in East Africa’ and TMA says this continued partnership with the East African governments has resulted in great progress being made. Introduction of the One Stop Border Posts (OSBP) systen across the region has increased physical access to markets for both formal and informal traders. Pilot operations at the Kobero/Kabanga between Tanzania and Burundi borders already indicates a two-day reduction in transit times at Kabanga for cargo trucks, as well as reduction in tedious formalities for traders. Previously excessive paperwork at the border posts caused costly delays which in turn kept the costs of doing business consistently high. Frank Matsaert, the TMA Chief Executive Officer highlighted some key successes. There has been a reduction of average time to clear goods at Mombasa port and transport them to Kampala to four days. The number of customs declarations have been slashed by 90% leading to an increase in trade volumes. For example, fuel imports into Uganda have increased from...

In late February, the United States signed a trade deal with the East African Community (EAC), the bloc of five countries around Africa’s Great Lakes. In an email interview, Nora Carina Dihel, a senior trade economist at the World Bank, discussed U.S. trade with the EAC and the rest of Africa. WPR: What is covered by the recent U.S. trade deal with the EAC, and what impact is it likely to have on the economies of the EAC? Nora Carina Dihel: The new cooperation agreement signed by trade ministers from the five EAC countries—Burundi, Kenya, Rwanda, Tanzania and Uganda—and the U.S. Trade Representative aims at streamlining customs procedures and providing technical assistance to promote trade by facilitating initiatives on sanitary and phytosanitary measures, which cover food safety and animal and plant health, as well as technical barriers to trade. Specifically, the agreement seeks to reduce red tape at the borders, decrease customs wait times and enhance the capacity of EAC countries to apply common international standards on various products, including agricultural exports. By building capacity in these three key areas, the agreement is expected to deepen U.S.-EAC trade and investment ties and increase the EAC countries’ capacity to adopt international standards by helping them implement World Trade Organization agreements. The deal has the potential to boost EAC initiatives to reduce trade costs and accelerate regional integration by supporting EAC countries in their efforts to eliminate non-tariff barriers that fragment the regional market and develop appropriate standards at the regional level....