NAIROBI, Kenya, Dec 12 – Revenue authorities from Kenya, Uganda and Rwanda have been instructed to ensure no clearing and forwarding agency is denied business at the port of Mombasa due to bureaucracy. President Uhuru Kenyatta, President Yoweri Museveni (Uganda) and President Paul Kagame (Rwanda) on Thursday night asked Kenya Revenue Authority boss John Njiraini and his counterparts to rectify a bureaucratic glitch that has seen almost 1,800 clearing and forwarding agents locked out from using systems used by Uganda and Rwanda to clear goods at the port of Mombasa. The instructions were given after President Kenyatta brought to the attention of the other leaders who were attending the 8th Northern Corridor Integration Projects Summit at the Safari Park Hotel that many clearing and forwarding agencies have been disadvantaged after Uganda and Rwanda revenue authorities set up shop in Mombasa. The agents have been temporarily locked out because of delay in training them to use systems used by Uganda and Rwanda. The revenue authority bosses were summoned to stand in front of the Presidents to explain why such a situation could occur under their watch when the Heads of State themselves were working overtime to integrate the region. The officers as well as cabinet ministers were taken to task to say when they will resolve the backlog and ensure all agents are cleared to do business using the systems. The summit directed the revenue authorities to ensure that by the end of January the anomaly is rectified. “When we meet...

COTONOU, (Xinhua) -- The establishment of an African free trade zone to increase the volume of trade on the continent will consequently increase Sino-Africa trade relations, a Beninese economist Pascal Komlan said when he spoke to Xinhua over the weekend. “Even before the establishment of the continental free-trade zone, China had become Africa’s biggest trading partner for almost a decade. Now with the establishment of this platform, Sino-Africa relations will witness exponential growth,” he said, recalling that trade volumes between Africa and China had reached 200 billion U.S. dollars in 2013, against 10 billion dollars in 2000. “The free-trade zone is expected to be operational between now and 2017,” he noted. The economist noted that regional integration is the key to placing African states in the global economy. "The creation of this continental free-trade zone will be an opportunity for each African country to accelerate its economic transformation agenda. The vision of these countries is not to remain Least Developed Countries, but to build emerging economies," he said. However, he explained, the emergency of African economies will not be achieved without the support and expertise of China which views Africa as being key to its economic development strategy. “Our continent holds over a third of global mineral reserves. The proportion is higher than 70 percent when it comes to some minerals such as iron ore, manganese, platinum and bauxite,” he said, noting that “China equally needs some of these natural resources from Africa for its own economic growth.” He welcomed...

The Corporate Council on Africa will serve as the officially launch the group’s new Power Africa/Trade Africa web portal to maneuver the complexities of doing business in sub-Saharan Africa during a Dec. 16 meeting of their Power Africa working group. That evening, the Council’s Annual Awards Dinner will also take place, recognizing four African business members for their efforts to promote U.S. private sector investment in Africa. The Corporate Council on Africa serves as the lead go between for the private sector and the U.S. government for Power Africa projects. “We’re also the point of contact on Trade Africa – and that is really just getting into gear, where Power Africa was launched over a year ago,” Mia Warner, Corporate Council on Africa’s Director of Energy and Power initiatives told AFKInsider. Trade Africa focuses on the East African Community (EAC) member states of Burundi, Kenya, Rwanda, Tanzania, and Uganda and is designed “to increase internal and regional trade within Africa, and expand trade and economic ties between Africa, the United States, and other global markets,” according to the United States Agency for International Development. Among the goals is advancing the Commerce Department’s “Doing Business in Africa” campaign which encourages U.S. businesses “to take advantage of growing trade and investment opportunities and to promote trade missions, reverse trade missions, trade shows, and business-to-business matchmaking in key sectors.” The President’s Advisory Council on Doing Business in Africa was established by Executive Order Aug. 5 for a two-year period, but it was not...

Burundi has joined Rwanda and Tanzania in ratifying the East African Community Monetary Union Protocol. The Protocol aims to harmonize monetary and fiscal policies and establish a common central bank for the East African Community. It is thought that a monetary union, with the absence of currency risk, provides a greater incentive for trade. The protocol is like a roadmap that will lead to the adoption of the Monetary Union. By ratifying the Protocol, Burundi commits to implementing the activities on the agenda. Some people fear that adjusting to a single monetary and exchange rate policy will proof impossible for Burundi, as it will struggle to meet the benchmarks agreed upon in the protocol. Audace Niyonzima, Director of Research and Statistics in the Burundi Central Bank and chief negotiator during the Protocol negotiations, ensures people that ratification doesn't mean that Burundi will join the Monetary Union. "There is no risk. Preparations have started, but we'll evaluate at the time of realization of the Union." The first step towards realizing the Monetary Union is harmonizing the currency rate; fixing the exchange rate against the currency of other countries to facilitate the conversion of the Burundian franc into the unique currency for the East African Community. Niyonzima trusts that Burundi will benefit from the union, but emphasizes the importance of hard work "because we will enter an open system of competition". There are macro-economic stabilization mechanisms in place to support countries failing to live up to the economic agreements. But, as the...

WINDHOEK – Namibia, along with with 25 countries from the Common Markets of East and Southern Africa (COMESA), East African Community (EAC), and Southern African Development Countries (SADC) , has been involved in trade negotiations for the past three years to establish a Tripartite Free Trade Area (TFTA). The Tripartite Free Trade Area once achieved will provide a market of 600 million people with a GDP of US$1 trillion, Maria Immanuel, Trade and Investment Policy Analyst at the Namibia Trade Forum (NTF) has disclosed. Immanuel explained that the objective is to establish a large single market with free movement of goods, services and business persons. This is expected to boost intra-regional trade by removing tariff barriers between these regional economic communities and harmonising customs procedures and trade facilitation measures. Immanuel said the current negotiations focus on market integration which will be carried out over two phases. The first phase was the one that had been ongoing for the past three years focusing on trade in goods. Phase two would focus on trade-related aspects such as trade in services, intellectual property rights, competition policy, trade promotion and competitiveness. Immanuel emphasised that the current negotiations in trade in goods were aimed at liberalising movement of goods. She noted that negotiating countries would exchange tariff concessions based on reciprocity. “The aim is to liberalise as many goods as possible, effective immediately once the agreement has been ratified. The liberalisation of tariffs between the three regional communities will allow countries to open up their...

Addis Ababa, Dec 7 (IANS): East African businesses are set to trade more with India by learning how to take advantage of the country's duty-free market access scheme, facilitated by the Supporting India's Trade Preferences for Africa (SITA) project of the International Trade Centre (ITC). The ITC, a joint agency of the World Trade Organisation and the UN, aims for businesses in developing countries to become more competitive in global markets, speeding up economic development and contributing to the achievement of the UN's Millennium Development Goals. The participants of the third SITA held in Ethiopia's capital city of Addis Ababa Dec 4-5 analysed trade trends under the scheme for each of the SITA partner-country beneficiaries. It also analysed key issues surrounding complying with the scheme like rules of origin, export requirements in the Indian market, issues impacting on export from SITA partner-countries to India, and the value chain from factory gate to the destination market in India, among others. "Building productive capacities, market linkages and enhancing investment attractiveness in the selected sectors will be a key way to ensure that SITA delivers impact and provides a sustainable template for similar South-South trade and investment projects," SITA coordinator Govind Venuprasad told IANS. "It will also allow companies working in these sectors to become export ready to supply other markets". Following an amendment made two years ago in India's Duty-Free Trade Preference (DFTP) scheme, least developed countries (LDCs) will receive preferential zero-duty access on 98 percent of the Indian tariff lines. It...

Integration efforts within the East African Community (EAC) received a significant boost at the end of November. The multilateral organisation stated that it will loan the East African nations $1.2bn to improve inland waterways and ports in Kenya and Tanzania, as part of efforts to boost integration in the region. More specifically, the funds will be used to revive inland waterways on Lake Tanganyika and Lake Victoria, and improve handling capacity and efficiency at the Mombasa and Dar es Salaam ports. The five-nation EAC, which comprises Kenya, Tanzania, Uganda, Rwanda and Burundi, is undertaking a substantial infrastructure investment programme while also deepening policy integration and reducing barriers to trade. In a recent 2015-25 strategy paper, the bloc stated that it needs at least $68bn, and possibly up to $100bn, over the next decade to develop roads, ports, railways, transmission lines and oil & gas infrastructure. Looking at the financing of the ambitious investment programme, in addition to the World Bank’s recent commitment, the European Union (EU) has also recently stated that it is prepared to support projects worth up to $750m to improve the region’s infrastructure, while Trademark East Africa also pledged $350m to expand ports, one stop border points and road connectivity. The EAC is already in talks with development partners, including the African Development Bank, European Investment Bank, as well as countries like China and India, as potential sources of funding. Turning to China, political leaders in East Africa are looking east in an attempt to make use...

A global audit, tax and advisory firm will spend about Sh200 million to deepen its presence in the East African Community (EAC) market in the next one year. The US-based Grant Thornton International Ltd, already with offices in Kenya, said it will soon open offices in Tanzania, Uganda and Rwanda to assist investors set up business in the region. The firm’s Business Development and Markets Global Leader Gernot Hebestreit said the announcement is informed by the increased local and international investments in the region, mainly Kenya. Hebestreit noted that the region is receiving a lot of attention from foreign investors - prompting them to set up more offices as well as employ quality human resources to offer logistics services. During the launch the East African Advisory Services Initiative in Nairobi, Hebestreit observed that bureaucracy and red-tape, though these have diminished lately, are still among the key challenges scaring away potential investors. The initiative will handle consultancy and advisory services for clients seeking to expand across the EAC region. “We have a lot of faith in the fast-growing economy of Kenya and EAC and that is why we are expanding our footprint in the region,” said Mr Hebestreit. He, however, noted that the investment climate in Kenya and the region continues to be haunted by corruption, infrastructure and high cost of power. Investment climate Hebestreit said investors will be assisted to register their businesses as well as deepen their understanding of the region’s investment climate. “Our focus is to offer a...

Editor, I presume that the East African Community (EAC) is following the footsteps of the European Union (EU) in its aim for integration. My request is that sometimes it good to stop and take a breath. This would be an chance to understand where we are going and whether we are all still agreed with the final objective. As an oldster, I would like to remind all concerned that if it were not for the unfortunate events of the 1970s, we would be far ahead of the EU even now! Although the present goal is to have a common currency within 10 years, I do not see this happening. The Common Market is still only in the early phases of implementation. As a notable point, let us recall that the EU Single Currency is only 14 years in existence. But the process to get there took well over 20 years. Perhaps the EAC should begin taking smaller morsels and be sure that we can digest it, rather then big chunks that ask too much of our circumstances. This does not mean I do not support the EAC. I believe it is the only entity that will ensure stability and a better chances of faster economic growth. But nothing wrong in being cautious. J. Kadoma Kampala, Uganda Source: East African Business Week

NAIROBI, Kenya - The World Bank recently agreed to boost agriculture in East African with $1.2 billion. This support is additional to large ongoing individual country programs. Besides paying for better infrastructure, the projects being funded are expected to improve the competitiveness of the East African Community (EAC) states. Philippe Dongier, the World Bank Country Director for Burundi, Tanzania and Uganda, said: “We are partnering with the EAC governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC.” He was speaking during the EAC Heads of State retreat in Nairobi. He said: “We are preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika, and to enhance the capacity and efficiency of the two main EAC ports on the Indian Ocean: Dar-es-Salaam in Tanzania, and Mombasa in Kenya.” He added: “We will also invest in specific transport links to better connect landlocked countries (Burundi, Rwanda, Uganda and South Sudan) to the Northern and Central corridors." This he said will improve access to the ports of Mombasa and Dar-es-Salaam. The private sector needs to support the International Finance Corporation (IFC) and MIGA (the guarantor). The World Bank Group will provide additional resources for regional infrastructure through market-driven private sector financing and guarantees. The financing will contribute to the EAC states’ planned investments in the next three to seven years. The Nairobi retreat on Infrastructure Development and Finance focused on policies and...