NAIROBI, Kenya, Feb 22 — Germany’s Foreign Affairs Minister Frank-Walter Steinmeier on Sunday said his country was looking to capitalise on East African integration. Arriving in Kenya on the heels of the East African Community’s 16th Ordinary Summit, Steinmeier was in the company of 20 German business leaders and industrialists whom he said were eager to take advantage of the opportunities that the opening up of the East African markets would create. Kenya’s Foreign Affairs Cabinet Secretary Amina Mohammed welcomed the interest and efforts to broaden that integration to include countries in central and some Southern African countries would generate even greater interest from foreign investors. “We need as many companies as are in Germany to have a presence in Kenya because the population of Kenya is not just 44 million. This is an entry point to the rest of Africa and with the agreements that we have signed within the continent we’ll soon have a market size of 600 million plus. Whichever way you look at it, we’ll soon have a bigger market for Germany than Germany has in Europe,” she said. Amina said Kenya was also in talks with Germany to increase the number of scholarships that the country currently benefits from through the German Academic Exchange Service (DAAD). Stability, Steinmeier however emphasised, was key to the continent’s economic prosperity. Singling out the conflicts in Somalia and South Sudan, Steinmeier said political solutions as opposed to military intervention were key to long-term stability. And in both respects, he...

TEXTILE and tanner industries in East Africa are set for vast revival as Heads of the East African Community member states agree to set up a mechanism that will promote growth and protection of the two industries. Addressing journalists hardly two days after conclusion of the 16th EAC Summit for Heads of State, the Minister for East African Cooperation, Dr Harrison Mwakyembe, said in Dar es Salaam that the region was committed to utilizing effectively the potential in textile and skins and hides industries to reduce dependence on importation of second-hand clothes and shoes. “The council of ministers (for which Mwakyembe is the current chairman) is currently working out modalities to enhance implementation of the agreement by Heads of State to resuscitate textile and tanner industries,” Mwakyembe explained. However, the minister was explicit on the implementation of the plan insisting that the population had nothing to worry about as no inconvenience would be caused and socio-economic stability would be guaranteed. As for the wider picture, the plan is to spur trade with the community and beyond. Of late, importation of second- hand clothes took their toll in all five major cities let alone other district headquarters. Despite the fact that a section of the community make gains from the business, the future of the region in terms of textile industry remained uncertain. Textile industry can offer employment to millions in the region. As for the reported unsettled matter on temporary ban of motor vehicles from Tanzania from picking tourists directly...

HISTORICAL reasons explain why the Kenyan industrial base is much more advanced in comparative terms to other East African countries Tanzania included. However, it is significant to note that not all that was Azimio la Arusha was negative. Today, Tanzania has plenty of homegrown cottage industries owned by ordinary Tanzanians. Mr. Mazzari Taj Mohammed is one such Tanzanians who produces honey packaged as Asali One. The product, like many Tanzanian made products are struggling to capture the East African market. There are several reasons why Tanzanian exports, despite being the leading export partner to Kenya do not earn the exports as much money as they should. Chief among them is that Tanzania exports raw unfinished goodsmaize, beans, potatoes, tomatoes and onions among others. Tanzania even exports cashew nuts in its unprocessed form to Kenya. The politicians will scream blue murder that the Kenyans are engaging in economic sabotage. In reality there is no such government policy by the Kenya Government just like the Tanzanian government has no policy to exploit its own farmers due to their vulnerability. What individuals entrepreneurs like Mzee Mazzari of Asali One lack most of all, is not hunger for markets but market awareness. This past week, Traidlinks a development organisation funded by the Republic of Ireland, and Trademark East Africa brought together some 15 or so local producers who are ready for the export market to give them skills necessary to capture the existing glut which is currently filled by brands from all over the...

The East African employers and trade unions have called on EAC partner states to fully implement the trading bloc’s Common Market Protocol which came into force in July, 2010. The East African Trade Union Confederation (EATUC) and the East African Employers Association (EAEO) asked EAC partner states to work towards eliminating all non-tariff barriers (NTBs) in an effort to promote free movement of labour in the region. This was revealed in a meeting called by the speaker of EALA aimed at making a case on facilitation for freer movement of labour, persons, services, capital and goods Source: Business Week

The East African Community Heads of State Summit in Nairobi resolved that, following the implementation of the One Network Area by Kenya, Rwanda and Uganda, all the EAC countries should harmonise their calling rates on all networks by July. To meet the deadline set by the EAC presidents, the Council of Ministers has already adopted the principles and methodology for determining reduced, harmonised EAC roaming rates and a plan of activities that will ensure the reduced rates are in place by the set date. The EAC Heads of State have also directed the Secretariat to provide the Partner States with a list of protocols that have not yet been ratified and these do include; Vehicle Load Control Bill (2012), Defence Cooperation Protocol and the EAC Peace and Security Protocol. The Summit also approved key priority interventions to be implemented over 2015/2016 and these do include; consolidation of the Single Customs Territory Road map for the implementation of the Single Customs Territory; Vehicle Load Control Limit;Implementation of the Heads of State Prioritised projects in railways,ports,inland water ways and energy; conclusion of negotiations of the Tripartite Free Trade Area Source: The East African

Three little boys in Kigali are sharing a lollipop. They lick it in turns. The lollipop is imported, so 45 per cent of its cost is due to transport and allied costs. It may have been made in Kenya or Tanzania or even farther afield, and it has travelled thousands of kilometres and crossed several borders. So whichever of the boys bought that treat, he’s paying part of the freight clearance charges, handling charges, insurance, fuel costs and the salary of the trucker who got it to the Rwandan capital. Logistics is a critical yet easily neglected component of economic development. Investment in agriculture is futile if there is no supply chain in place to get produce to market. Essential medication is rendered ineffective if it cannot be transported in the appropriate conditions. Consumer goods cannot improve people’s lives if the cost of importing them means they are too expensive for people to access. Yet in discussions of “sustainable development goals” or “poverty reduction,” there is too often a tendency to focus on headline targets and forget about the mechanics of delivery. In East Africa, transport and freight costs are among the highest in the world, with freight logistics expenditure more than 50 per cent higher per kilometre than in Europe or the United States. This extra cost is caused by a “logistics gap”: a lack of infrastructure, technology and expertise affecting everything from road networks to payment systems and warehousing facilities. In landlocked countries like Rwanda and Burundi, this...

What is the economic outlook for the region in 2015, and what are the risks? We expect sub-Saharan Africa to register a growth of 4.7 per cent, accelerating to 5.2 per cent in 2016. The risks include the slow growth environment in advanced economies particularly the Euro area and Japan; the potential volatility and financial disruption as a result of monetary policies operating at different places in the cycle; geopolitical risks and any others that suddenly hit the globe. For example, a year and half ago, we never talked about Ebola because it wasn’t an issue. Now it has affected countries in West Africa. There are concerns about debt with the International Monetary Fund. Kenya, for instance, has been borrowing from the IMF. What are the long-term solutions to foreign exchange support loans for African countries? Kenya asked for a precautionary loan — it is a progression that we observe concerning Kenya and one that is moving in the right direction because it is an indication that the country is more solid economically. A country such as Kenya, depending on how the oil market pans out, could find itself with a good balance of trade and improve its balance of payments. Given that domestic resources in the region remain meagre, how can countries avoid accumulating high debt while addressing infrastructure gaps? The critical choice hinges on what infrastructure projects are prioritised and how they will provide a return that helps the country financially so that it is on a stronger...

South Sudan and Somalia’s applications to join the East African Community (EAC) is one of the main agendas the regional heads of States will be discussing today in Nairobi. The 16th Ordinary Summit of the East African Community Heads of State will be held Friday at the Kenyatta International Conference Centre, Nairobi. “Negotiations for the admission of the Republic of South Sudan into the EAC, verification of the application of the Federal Republic of Somalia will be priority matters on agenda,” EAC secretary general Dr Richard Sezibera said. Last year, the government of South Sudan pleaded with the EAC member states not to reject them because of the violence that had engulfed the country. The Vice President of the Republic of South Sudan, Mr James Wani Igga, while meeting the EAC high level technical mission, said: “South Sudan, being a young nation, still needs support and integration from the “older” nations within the region”. In June 2011, South Sudan applied to join the bloc, and a verification Committee from the EAC visited the country a year later to establish its level of conformity to the EAC regulations. However, in April last year, South Sudan halted negotiations because of the war that broke out towards the close of 2013. Source: The East African

East African Community (EAC) Heads of State on Friday took note of a revised roadmap for the completion of the EAC institutional review exercise and directed the Council of Ministers to ensure that the process was finalized within the revised timeframe. They made the call during the ordinary Summit held in Nairobi, Kenya, which, according to a final communiqué, directed the Council of Ministers to submit final recommendations during the next Summit. Nathan Ngoga Gashayija, Director of the EAC Programmes Coordination Unit in Rwanda’s Ministry of EAC Affairs, said that ministers had recommended that the exercise is finished as soon as possible. “In the ministerial meeting, before the Summit, it was recommended that the exercise is done by April but I don’t know if this was later changed,” Gashayija said, adding: “Everybody wants this concluded”. The Council in 2009 directed the Secretariat to undertake a comprehensive study and propose institutional reforms to boost efficiency. Last month, the Accounts Committee of the East African Legislative Assembly (Eala) established that the long overdue review to align EAC institutions with the expanding mandate of the bloc was costing the Community a lot of money. MP Peter Mutuku Mathuki (Kenya), a member of the Eala Accounts Committee, said the exercise was basically about assessing the capacity of personnel and resources. The Assembly noted that the delay was negatively impacting on the implementation of the Common Market Protocol, the second stage of the regional integration process that involves free movement of goods, labour, services and...

Charges for telephone calls across East Africa are set to reduce in July, when countries abolish roaming fees following a directive by the heads of state. The East African Community Heads of State Summit in Nairobi resolved that, following the implementation of the One Network Area by Kenya, Rwanda and Uganda, all the EAC countries should harmonise their calling rates on all networks by July. Calls within the network have already reduced by 12 US cents per minute while there are no charges for incoming calls since the One Network Area was implemented last year. “We acknowledge that the high cost of roaming calls within the East African partner countries is unnecessary and an impediment to trade and communication in our Community. It is unacceptable that calling outside our continent is much cheaper than communicating within the region. In the spirit of East African integration, innovative interventions leading to substantial reduction of calling charges are overdue,” said Kenya’s President Uhuru Kenyatta. There have been ongoing negotiations to remove the interconnectivity fees charged by operators for international voice and data traffic, with roaming charges within the EAC to be cut by 60 per cent. To meet the deadline set by the EAC presidents, the Council of Ministers has already adopted the principles and methodology for determining reduced, harmonised EAC roaming rates and a plan of activities that will ensure the reduced rates are in place by the set date. “The implementation of One Network Area by Rwanda, Kenya and Uganda is...