Regional blocs including the East African Community (EAC) should introduce a levy on imports to help self-finance its organs, a new report suggests. The regional entities have depended solely on contributions from members yet a number of countries have not been meeting their obligations. A report by the African Capacity Building Foundation (ACBF), a financier of research institutions in Africa for over a decade, said a country facing an economic crisis or catastrophe finds it difficult to pay dues. ACBF said integration schemes such as EAC and the Common Market for Eastern and South African have copied the Eurozone model of regional groupings that depend on member contributions. “A funding mechanism that combines national contributions with independent revenues, such as import levies, would go a long way to helping African regional economic communities become financially independent,” said the report. However, analysts said clarity would be needed on how such a tax is to be implemented because some of the countries may fail to co-operate since the blocs do not have tax collection machinery. “It is very good to have an alternative method of financing regional initiatives such as those we are party to. But the tax also has to be collected by someone. Who is it that would collect it?” asked Joseph Kieyah, principal policy analyst at the Kenya Institute of Public policy Research and Analysis. Prof Kieyah said the levy alone would not achieve much unless there are willing participants in regional integration schemes. He said the citizenry and...

On 14 October 2014, The European Union (EU) and The East African Community (EAC) partner states signed an agreement establishing an economic partnership between the two parties. This Agreement was also signed The Economic Partnership Agreement focuses on trade regimes for goods, fisheries, agriculture, economic and development cooperation, good governance concerning taxes, customs duties on products originating in the EAC partner states, customs on products originating in the EU party and infrastructure. Customs duties should be eliminated on agricultural products originating in the EU. "Customs duties should be abolished at the entrance of the EAC territory." Jean Pierre Bacanamwo from the Ministry in charge of EAC Affairs advised that the commission in charge of the partnership is waiting for EAC Ministers to sign the Agreement. "Then, it will be conducted in the National Assembly and Senate in each EAC partner state to be analyzed before being ratified by the Heads of States and coming into force", stated Bacanamwo. He also noted that the process takes time, and that its implementation should come in by June 2105. Source: All Africa

The East African Community (EAC), which comprises Kenya, Tanzania, Uganda, Burundi and Rwanda, intends to become “a single tourist area” under its vast regional integration project, APA learns here on Tuesday. We want to make the East African Community a single tourist area with a single tourist visa, EAC Secretary General, Richard Sezibera said during a press conference held at the organization’s headquarters in Arusha, northern Tanzania. The use of the single tourist visa has been in force since last year for Rwanda, Uganda and Kenya which are determined to move faster than the other two members on the path of economic integration. Tanzania has announced that it wants to join the single tourist visa. This is very important. Burundi has also expressed interest in joining the system, Mr. Sezibera said. The regional bloc has however experienced a major crisis over the past two years with Burundi and Tanzania suspecting the other three members of having a hidden agenda and isolating them. The presidents of Rwanda, Uganda and Kenya had met several times in the absence of their counterparts in Tanzania and Burundi to accelerate the construction of large regional infrastructure, including a railway and a pipeline connecting their three capital cities. The tension between Tanzania and Rwanda reached its peak in May 2013 when, Tanzanian President Jakaya Kikwete suggested the holding of direct talks between Kigali and rebels of the Democratic Forces for the Liberation of Rwanda (FDLR) based in eastern Democratic Republic of Congo. Furthermore, a Tanzanian contingent...

Rusumo border post on the Rwanda Tanzania border now operates a one-stop centre for clearing goods and people crossing the border; the first of its kind in the region. That means that a Rwanda businessman exporting goods overseas, through this border, can have all the paperwork sorted from one point on the Rwanda side of the One-Stop-Border post. Similarly, goods entering the country can have all the customs paperwork sorted from the other side without going through another cumbersome process upon crossing the border. This has been made possible by new facilities put in place under the One-Stop-Border project that bring all officials involved in the process of clearing people and goods under one roof. This has indeed been long-overdue. Traders have for decades complained about the numerous and lengthy customs documentation while crossing borders with the region. This has not only cost them time, but also money as goods unnecessarily delay reaching the market. No doubt, therefore, that this project, if rolled out to all border posts, will eliminate the red tape and enable people and their goods to move faster for the good of all the economy of the whole region. This project therefore comes in handy in accelerating economic integration in the East African Community, by eliminating some of the non-tariff barriers to free and faster movement of goods and services. Beyond regional integration, faster movement within our borders will certainly make the region a better and cheaper place to do business and more attractive to foreign...

The East African Community secretariat is optimistic that negotiations on a free trade area between three trading blocs in Africa will bear fruit. A statement by EAC Secretary-General Richard Sezibera, said the region had made significant progress in trade talks between the EAC, Comesa and SADC. “It is my conviction that we are at the tip of a historic agreement that will enable Africa to reclaim her rightful place in the global arena, and lay a solid foundation for a continental free trade area,” said Mr Sezibera. At their first summit in Uganda in 2008, heads of state and government of the three regional economic communities directed that the trio should establish a free trade area with haste. FIRST PHASE OF TALKS A road map and time line for establishing the area were agreed upon, with the first phase of negotiations addressing tariff liberalisation, rules of origin, customs cooperation and customs-related matters, non-tariff barriers, sanitary and phytosanitary measures, technical barriers to trade, trade remedies and dispute settlement. The second phase focuses on negotiating trade in services and trade-related issues, including intellectual property rights, competition policy and trade development and competitiveness. The tripartite agreement is set to open up Africa as a market for products from other trading blocs within the continent. In a recent interview, Kenya National Chamber of Commerce and Industry chief executive Charles Mbogori said the chamber would soon be lobbying to also issue and automate preferential certificates of origin. “We as the chamber believe that the automation...

Just weeks after gaining full access to export sugar to Kenya, Uganda is preparing to cause another upset. This time, it is eyeing Kenya’s troubled maize market. And while the debate on sugar has been soured by talk of Kampala being used to dump the commodity in Kenya, now the talk surrounding the grain business is on pricing. At the moment, maize from Uganda is retailing at Sh800 per 90kg bag. Tanzania is also producing maize at relatively cheaper price than Kenya and is fast making headway in boosting its revenue by taking a pie of the local market. The cheaper imports have seen the price of maize in Kenya drop significantly triggering political discontent in some of the ruling coalition’s strongholds. This is likely to test President Uhuru Kenyatta’s leadership in East Africa Community especially on integration which guarantees free movement of goods and labour. The need to calm the political jitters forced Agriculture Cabinet secretary Felix Koskei to announce a change in the price of maize mid-December last year. The government had announced it would buy a 90-kg bag of maize at Sh2,200 only for the minister to increase it to Sh2,300 in less than 24 hours. Free trade area Mr Koskei was reacting to piling pressure from farmers in North Rift who were opposed to the set price saying they wanted to sell the 90kg bag for Sh3,500. Addressing the media at Kilimo House, Mr Koskei said the price was set in line with the prevailing market...

Tanzanian tour operators have protested after their vans were stopped from dropping passengers at the Jomo Kenyatta International Airport in Nairobi. The development, which no doubt has security implications on Kenya, has been interpreted as a fightback after Tanzania barred Kenyan vans from taking tourists to its game parks. Both these restrictions fly in the face of the campaign to market the East African Community (EAC) as a single tourist destination. Under the campaign, tourists have been urged to apply for a single visa that would allow them to visit any of the countries in the community without border restrictions. If EAC countries are to benefit from this initiative, they need to resolve some of these non-tariff barriers to the free movement of people and goods across their borders. The best solution would be for both countries to ease access to their facilities and installations for users from across the border to the extent that this does not compromise security. Where this is not possible, then there is need for an agreement on seamless exchanges that do not add unnecessary costs. East Africa is making big strides towards greater integration and it needs stronger institutions and mechanisms to resolve disputes and other challenges. The latest controversy is a matter that, with a little goodwill on both sides, can easily be resolved and a solution found to satisfy all those involved and benefit the respective countries and the region. Tourism plays an important role in the economies of the two countries...

The International Data Corporation (IDC) anticipates that 2015 will see closer intra-Africa trade facilitated by ICT initiatives such as payment systems, financial inclusion initiatives, and cross-border payments. Technology will help breach intra-Africa trade barriers by removing obstacles, increasing efficiency and encouraging transparency. Also, IDC experts have said that ICT investments addressing African market realities will fuel GDP growth in key African countries, as we step into 2015 and countries largely dependent on oil and gas continue to count their losses. They said that ICT growth will be a key driver of Gross Domestic Product (GDP) growth in key countries such as Kenya, Nigeria, and Rwanda, with mobile services penetration, financial inclusiveness initiatives and government service delivery driving ICT spend in the telecommunications, financial services, and government verticals. Regional Director, Sub-Saharan Africa, IDC Middle East, Africa and Turkey; Mark Walker, Research Manager, Software and IT Services (Africa); Lise Hagen, and Senior Research Manager for Telecoms and Media (Africa), George Kalebaila, all representing IDC; predict that governments with relevant and effective national ICT policies will begin to dominate the economic landscape. According to them: "Increased government policies and relevant processes that favour ICT activities in the society will have a significant impact in countries such as Nigeria, Kenya, Rwanda, and Egypt where policies increase ICT awareness and access, device penetration, improved service platforms and boost infrastructure developments. "2015 heralds the battle for the SME market in more developed African markets: While a variety of ICT providers have made concerted efforts to tap...

Trade Mark East Africa has called on East African partner states to closely work with civil societies in the implementation of the East African Community (EAC) integration for their citizens to understand, own and benefit from the integration. Opening the 3rd Civil Society Forum, which attracted activists from across the region here yesterday, Trade Mark East Africa resident director Josaphat Kweka assured the EAC partner states and civil society organisations in the region of its continued support for the integration to be built on a strong foundation. “As you all know, the volume of informal cross-border trade is as big as the formal one. There is a need for assisting women’s institutions, for women mostly engage in informal trade,” Dr Kweka said. He explained that the move would greatly reduce household poverty levels and contribute to the national coffers. Dr Kweka said the prime goal of reviving regional integration was to expedite development amongst partner states and improve lives of East Africans. “Partner states have a chance for and a big contribution to forge development by grabbing opportunities that come with the process,” he said. Dr Kweka challenged participants to use the forum to discuss their contribution required for strengthening the EAC integration process, saying civil societies were close to the people. Going under the theme: the Role of Civil Society in Strengthening East African Community, the forum’s goal was to give participants an opportunity to deliberate on, among other things, views of Tanzanians on the EAC integration and ways...

Importers from Kenya, Uganda and Tanzania have up to February to collect cargo that has overstayed at the Mombasa port without paying fines after the three heads of state waived the charges last week. The Shippers Council of Eastern Africa said the move would help clear a backlog even as it cautioned of the risk of encouraging defaulters. “The move will help free up space at the port. But it may encourage opportunists who may want to default while looking forward to such windows,” said chief executive Gilbert Langat. The council said a 20-foot container attracts a storage fee of $25 (Sh2,262) a day and $40 (Sh3,619) for double the size, which the Kenya Ports Authority will now have to forgo. The overdue cargo also attracts demurrage charges on containers used to store the merchandise. The East African Community (EAC) Secretariat is expected to publish the names of traders whose cargo are pending at the port and the commencement for the waiver. “It was directed that cargo overstayed at the port of Mombasa shall be granted full waiver of customs warehouse rent and port demurrage charges to facilitate removal within 60 days from date of publication of notice…” reads a joint communiqué issued following last week’s infrastructure meeting. Hefty charges The eighth edition of the Northern Corridor Integration Projects Summit held in Nairobi was attended President Uhuru Kenyatta, President Yoweri Museveni (Uganda) and President Paul Kagame (Rwanda). The shippers council, the lobby for exporters and importers in the region, said...