THE recent pledge by President Jakaya Kikwete, also Chairperson of the East African Community (EAC) that he would give due attention to elimination of Non Tariff Barriers in the region, deserves commendations as partner states strive to make the region the best place to do business. Addressing members of the East African Legislative Assembly (EALA) in Bujumbura, Burundi on Thursday, President Kikwete cited examples of achievements registered in trade leading to 300 per cent increase in the value of trade from 2 billion US dollars to 6 billion dollars in 2014. The Charter establishing the East African Community (EAC) stipulates that the entry point in the integration process would be the Customs Union, followed by the Common Market, later the Monetary Union and ultimately the Political Federation. Implementation of the Customs Union which started in 2000 involved free movement of goods produced in any of the region and a common external tariff. Goods are supposed to move freely across the borders of member countries without tariffs being charged and not hampered by Non Tariff Barriers. Indeed, it has proven helpful in reducing encumbrances to importers and in discouraging dumping and diversion of transit goods. Ultimately, it will be an effective tool of promoting trade and curbing revenue loss to governments. The region is looking forward for increased revenues when the Single Customs Territory becomes fully operational in the near future and the piloting exercises are progressing well in all member states. The appeal to EAC member states on the obligation...

FINLAND has contributed to Zambia’s new product and packaging standards through the international trade centre which was signed with Common Market for East and Southern Africa (COMESA) to boost intra-African trade, Finnish ambassador to Zambia Timo Olkkonen says. Mr Olkkonen said the promotion of regional integration has the potential to contribute to the growth of the country’s economy. He said recently when he presented a letter of appointment as representative of Finland to the COMESA secretary general Sindiso Ngwenya. “Finland appreciates enormously the possibilities and potential regional integration can have in boosting a country’s economy and well-being. Finland is supporting information technology communication [and] promoting intra-regional trade with a project that is concentrating in mango, honey and spice produce." “In Zambia, the project has contributed to new product and packaging standards…There was a delegation from Zambia to study export-opportunities in Finland and study value-chains in Finnish markets last January,” he said. He said Finland is an economy that is highly dependent on exports with its main markets being Europe and has been keen to integrate with the European Union (EU) which has resulted in its economic growth. Mr Olkkonen said Finland also supports the development of the private sector in Zambia. He also said Finland believes that the current economic growth witnessed in many African countries will continue to provide opportunities to local, regional, continental and international trade. He said Africa has the potential for a more strong economic growth through closer regional cooperation and integration, since intra-African trade still...

More than 30 private sector companies have so far applied for grants in the first round of TradeMark Africa’s Logistics Innovation for Trade, or LIFT, fund, which was launched in Europe last month. With such funds typically attracting a deluge of applications in the final days before a round closes, many more are expected to submit proposals between now and the March 31 deadline, according to Clara Garcia Parra, a consultant at Nathan Associates, which is managing the fund. A number of the firms applying are multinationals. Backed by the U.K. Department for International Development, the LIFT fund has raised $16 million to provide challenge grants ranging from $250,000 to $750,000 to help companies develop new ways of cutting the cost and time involved when trading goods within East Africa. Its aim is to encourage the private sector to invest in East Africa’s logistics and transportation industry, testing out fresh innovations that will help bring down the significant barriers to trade that slow the region’s economic development. The idea is that LIFT will shoulder part of the perceived risk of investing in East Africa and reduce the cost of entry for companies eyeing the region, TMA CEO Frank Matsaert told Devex. This will not only inject expertise into the sector but will stimulate price competition into “what are fairly cartelized niches.” Transport costs in East Africa are around 60 percent higher than those in the United States or Europe, many supply chains are underdeveloped, and the logistics industry lacks technological...

East African countries on Wednesday vowed to harmonize policy and regulatory frameworks to enhance response to the menace of electronic waste (e-waste) that poses serious threats to human and ecological health. Policy makers and experts from the region said in Nairobi that countries will share best practices and roll out joint programs to promote management of e-waste. "E-Waste is an emerging environmental challenge across the east African region thanks to increasing demand for electronic devices like mobile phones, tablets and computers," said Kenya’s Cabinet Secretary for Environment Judi Wakhungu. She said disjointed policy and regulatory frameworks, infrastructural and resource gaps hampered sustainable management of e-waste in the region. Pollution occasioned by unsafe disposal of obsolete electronic gadgets is to blame for a spike in life threatening diseases across the east African region. Wakhungu said tused electronic gadgets are being disposed into landfills adjacent to residential premises and sensitive ecosystems. "E-waste when burnt causes air pollution through release of toxic emissions. "Poor disposal blocks water channels and compromises scenic beauty," Wakhungu said, adding that East African countries should explore innovative but homegrown measures to contain the menace of e-waste. She said investment in recycling facilities and technical skills will promote management of e-waste while creating jobs for youth and women. "Recycling makes business sense because end of life electronic devices contain precious metals such as gold, silver and copper. "Establishment of vibrant treatment facilities will unleash environmental and economic benefits to the East African Community," Wakhungu said. Kenya has established two...

Upon arrival at Burundi’s Bujumbura International Airport, Tanzanian President Jakaya Kikwete was welcomed by his Burundian counterpart Pierre Nkurunziza, other senior Burundian officials and some EALA MPs. A press release from the Office of the Burundian President said that Kikwete is scheduled to meet Burundian President Pierre Nkurunziza Thursday, visit the Burundian Senate and attend the EALA session in the Burundian capital Bujumbura. The two-week session of the EALA, the East African Community (EAC) legislative arm, will analyze several bills including the EAC customs management bill, the EAC competition bill, the EAC cross-border legal practice bill and the EAC electronic transaction bill. The EALA is made up by MPs designated from the five EAC countries including Burundi, Kenya, Rwanda, Tanzania and Uganda Source: Spy Ghana

A total of 12 Scottish organisations including Dundee University have joined the Scottish Development International organised trip to research the oil and gas sector in Mozambique and Tanzania. The mission is in response to a visit two years ago to Scotland by the then president of Mozambique calling for Scotland’s support to develop the sector. Gary Soper, SDI’s manager in the region, said the oil and gas plays in the region were hugely significant. “East Africa is a pioneering market, and with 150 trillion ft3 of gas discovered off the East Africa coast in deep water, Scotland’s unrivalled deep-water subsea delivery and offshore experience makes us the perfect partner to help bring it into production.” Existing operators in the region include ENI, BG, Shell, Ophir, and Petrobras, and they are collectively investing around
$2 billion to bring fields to production. Local oil and gas regulations mean a significant percentage of any development must be delivered locally — a condition that opens up opportunities for organisations involved in education and training. It is estimated that around 25,000 people will require training at a technical and vocational level, as well as access to higher education as the basin matures. Five of the 12 organisations on the mission, including the Dundee University delegates, are focused on this area. “We know there are huge opportunities for Scottish education companies in Mozambique and Tanzania and, working together, we aim to help our institutions and companies make the right connections and capitalise on the opportunities,” Mr Soper...

INVESTMENT in Africa’s mega projects surged by 46 per cent to $326 billion last year, led by heavy investment in transport, energy and power, according to the third yearly Deloitte African Construction Trends report, which monitors progress on capital intensive infrastructure on the continent. To qualify for inclusion in the Deloitte African Construction Trends report, projects must be valued at more than $50 million and had to have broken ground by at least June 1, 2014. While the number of projects that qualified for inclusion in the 2014 report fell to 257 from 322 in the preceeding year, the total value of projects under construction increased from $222.77 billion in 2013. “Africa’s rapidly growing middle class continues to drive demand for sustainable social infrastructure,” said Andre Pottas, Regional Director at Deloitte. “Africa is en route to a brighter future and overall we see the opportunities surpassing the challenges facing our continent.” Of the projects included in the 2014 Deloitte African Construction Trends report, no less than 143 were led by the public sector with a further 88 being private sector initiatives and 26 classified as public private partnerships (PPPs). Energy and power accounted for 37 per cent of the number of mega projects undertaken in Africa in 2014, followed by transport (34 per cent); mining (nine per cent); real estate (six per cent); water (five per cent); oil and gas (four per cent); mixed use facilities (two per cent); and health care (one per cent). “More than 10 per cent...

Ethiopia will be hosting the 34th COMESA policy organ meetings that start on March 20 this week, leading up to the 18th COMESA Summit of Heads of State and Government in Addis Ababa concluding on March 31. State Minister of Finance and Economic Development, Ahmed Shide, briefed journalists on the program, pointing out that there would be nine Summit sessions and the theme would be "inclusive and sustainable industrialization". The Summit will be preceded by the Council of Ministers meeting whose mandate is to monitor COMESA activities, including supervision of the Secretariat. In his briefing to the media, Ahmed emphasized the trade of COMESA (the Common Market for Eastern and Southern Africa) had been growing but there was still a long way to go and the regional bloc needed to do more. However, there had been important developments under COMESA's regional integration agenda in intra-regional trade and the volume had increased. The State Minister said the opportunity of the Summit would help Ethiopia reaffirm its support to COMESA and share national best practices with other countries. He also noted that road links between member countries and ongoing railway investments, as well as the East Africa power system improvement were all boosting the capacity of COMESA member states and their capability to generate more wealth and opportunities to expand trade. Ethiopia is taking over the chairmanship of COMESA for the next year from DRC. Source: All Africa

While the continent has seen increased trade with global powerhouses such as China and India, Africa’s formal trade flows are generally hampered by poor infrastructure and bureaucratic systems that lead to long delays at ports and borders, and increase transportation costs. Furthermore, formal regional trade within Africa remains the lowest in the world. Compared with trade between borders in Europe (around 70%) and Asia (50%), intra-African trade averaged around a measly 10-12% over the past decade, according to the United Nations Economic Commission for Africa (UNECA). However, according to Ecobank’s head of research, Edward George, formal trade paints a very small picture of overall trade flows on the continent, with informal trade being comparatively innovative. And one example of this can be seen in illicit Somali trade across East and Central Africa. Understanding Somalia’s informal trade During a presentation at the Africa Trade & Export Finance Conference held in Cape Town last week, George said large volumes of goods transported across the Indian Ocean often do not make it to their destination ports of Mombasa and Dar es Salaam. In many instances these goods end up at Somali ports – particularly Bosaso, Kismayo and Mogadishu – where they then enter the informal trade network. “These flows really are the hidden underbelly of East Africa trade,” he highlighted. “There are no reliable estimates for the size of the flows, and I wouldn’t dare hazard a guess. But anyone trading goods in East Africa will tell you that the Somalis control the...

President Nkurunziza was speaking while launching, in the Burundian capital Bujumbura, a session of the East African Legislative Assembly (EALA), the legislative arm of the East African Community (EAC). “I would like to sincerely thank the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) for the strong support and commitment towards peace and stability in Burundi through a joint initiative of both blocs on supporting the achievement of transparent and credible elections this year,” said Nkurunziza. Nkurunziza appreciated the EAC/COMESA joint initiative of roundtables launched in January and bringing together various stakeholders and that will run until May just before elections kick off. According to him, the roundtables are bringing together targeted groups from different sectors of the country’s life where they are receiving “strong” messages of consolidating regional stability through peaceful elections in Burundi. “I call on the international community to send observers before, during and after the elections,” said Nkurunziza. East African Legislative Assembly (EALA) Speaker Daniel Kidega urged Burundian citizens to “massively” participate in the elections in order to elect their leaders. “I appeal to Burundian citizens to exercise their democratic rights in participating in the elections. I further appeal to the National Independent Electoral Commission to institute the internationally agreed normative rules for free and fair elections, ” said EALA Speaker Daniel Kidega. Burundi is holding general elections between May and September, with the presidential election to be held on June 26. During the two-week session, EALA MPs will analyze...