As the U.S. continues its wholesale review of all trade agreements and preference programs—including the African Growth and Opportunity Act—it seems to still be building up on the AGOA program that’s so far still set to run through 2025. Last month, the United States Trade Representative said Togo is now eligible to enjoy trade benefits under AGOA for textile and apparel products. A statement in the Federal Register said: “…Togo has adopted an effective visa system and related procedures to prevent the unlawful transshipment of textile and apparel articles and the use of counterfeit documents in connection with the shipment of such articles…” Separately, the U.S. initiated a review in June of AGOA eligibility for Tanzania, Uganda and Rwanda, which came about when the East African Community (EAC) decided to ban imports of secondhand clothing to improve its own industry. The U.S. Secondary Materials and Recycled Textiles Association (SMART)—which initiated the petition for review with the USTR—said the move to curb incoming used clothing is a barrier to U.S. trade, which goes against certain requirements under AGOA. According to local news reports in Rwanda, talks with the U.S. have begun. “We are talking to our partners in the U.S. We value our trade and relations with the U.S. and we are doing all that is possible not to be out of cycle and of course we have been engaging on the issue,” Rwanda Development Board chief operating officer, Emmanuel Hategeka, told the New Times. “We think there is a lot to gain if we...

Gas-rich Tanzania hosts a two-day congress aimed at bringing together policymakers and experts in the oil and gas industry. But the country needs to pick its strategic partners carefully, says analyst Anaclet Rwegayura. For ages, Tanzania's rich underground wealth was unknown. That has kept it safe for the present generation, which needs it to eradicate poverty. Many prospectors and investors have crisscrossed the country after the government opened the door to mineral extractors, and it seems that many thought the country's wealth was up for grabs. Did it ever come to their minds that Tanzania was hoping to capitalize on its resource endowments in order to kick-start its industrialization? Given the country's healthy economic turnaround with a roughly seven percent annual growth rate, the Tanzanian government is keen to see productive investments taking place. Extractive investors who cannot enable the country to create wealth and free the local society from the shackles of poverty, are not welcome. Developments and opportunities For two days beginning on September 11, representatives of international oil companies, indigenous producers, international and national service providers, financiers and consultants will meet in Dar es Salaam with Tanzanian policymakers and experts in the oil and gas industry to discuss, among many other issues, the implementation of the country's gas master plan. According to congress organizers, the UK-based CWC Group, this will also be the opportunity to discuss business opportunities in the Tanzanian energy market. On the road to an industry-led development, Tanzania should by all means avoid stepping into the unknown....

If the U.S. and China have their way, Africa could soon begin to reach its potential as the next great frontier for apparel and textile sourcing. While there are determined efforts by the U.S. government and some key companies, the Chinese plan being implemented seems more comprehensive and likely to create a longer-lasting influence on the continent. The American Way The recent Sourcing at Magic trade show featured an African pavilion sponsored by the USAID East Africa Trade & Investment Hub. The Hub boosts trade and investment with and within Africa by deepening regional integration, increasing the competitiveness of regional agricultural value chains, promoting two-way trade with the U.S. under the African Growth & Opportunity Act, and facilitating investment and technology. The program, initiated in the Obama administration, covers the East African Community countries of Burundi, Kenya, Rwanda, Tanzania and Uganda, as well as Ethiopia, Madagascar and Mauritius. A spokeswoman for the program explained that since its launch in September 2014, it has supported $226 million in exports through AGOA, driven $51.2 million in private sector investment, helped more than 1,200 firms with capacity building assistance and helped create more than 33,000 full or part-time jobs. At the end of the project’s five-year mission, the goal is to facilitate $100 million in new investments in the EAC, increase non-oil AGOA exports to the U.S. by 40 percent, create 10,000 more jobs and double the value of intra-regional trade in the EAC. While AGOA was renewed in 2015 through to 2025,...

National development across Africacontinues to support the commitment undertaken by the 54 members of the African Union in Addis Ababa, Ethiopia in November 2016 to create a continent-wide free trade area.  At the helm of this initiative is Africa’s transport sector, taking continuous strides to unlock cross-border opportunities for intra-African trade and development. There is a much to be gained from a free trade area for Africa, as intra-African trade is the lowest of any region in the world at a mere 10%.  A properly executed free trade area could change the status quo and transform Africa. As projects and initiatives in support of transport infrastructuredevelopment to boost intra-African trade continue to crop up across the continent, Africa’s transportleaders take action to demonstrate their vision of modernised transport and free trade for the region. . The Federal Republic of Nigeria has most recently reaffirmed its commitment to intra-African trade and development with the confirmation of The Honourable Chibuike Rotimi Amaechi, Nigeria’s Minister of Transport, to join the strategic round table discussions that will be held during the 6th annual African Ports Evolution Forum in Durban, South Africa this October. The Honourable Amaechi’s presence in Durban this October alongside Kenya’s Principal Secretary of Maritime and Shipping, Nancy Karigithu and South Africa’s Minister of Transport, The Honourable Joe Maswanganyi will catalyse the ensuing strategic pan-African discussions for cathartic expansion and modernisation of ports, corridors and multi-modal connectivity. The African Ports Evolution Forum, now in its 6th year, is an annual initiative created in response to Africa’s transportinfrastructure gap. The initiative unites ports authorities, Ministries of Transport, terminal operators and rail operators to support the scale of development currently underway across the continent.  Not only will Ministries of Transport from Nigeriato Kenya to South Africa be in attendance but also myriad ports authorities from Namport to Djibouti Ports and Free Zone Authority...

South Sudan has been directed to waive visa requirements for all the East African Community partners and offer a duty-free market for all the goods originating from the EAC states. The EAC Sectoral Council of Ministers responsible for EAC Affairs and Planning, during their meeting in Arusha between August 20 and 25, said that for South Sudan to fulfil its ascension for the Community, it is expected to meet the compulsory integration requirements of the Treaty. This means that South Sudan has to align its Customs administration with the EAC Customs Union. Juba will have to introduce zero duty on goods and services to the other partner states and implement the EAC Common External Tariff, where imports from countries outside the region are subjected to the same tariff when sold to any partner state. Rules of origin Also, goods moving freely within the region must comply with the EAC Rules of Origin and with provisions of the Protocol for the establishment of the region’s Customs Union. The oil rich nation was also directed to make its contribution to the EAC budget and establish requisite institutions like a revenue authority. “It is also a requirement to actively participate in all policy meetings of the EAC to enable decision-making, which is based on consensus by the partner states,” said the Sectoral Council in its report. South Sudan became the sixth member of the EAC after signing an Ascension Treaty last year at the Heads of State Summit in Dar es Salaam. It...

Traffic on the global payments network Swift has grown by 20.1% in East Africa over the past year, indicating an increase in trade flows with and within the region. East Africa has outperformed the total growth for Swift globally, which amounts to 8.2%. The figures released by Swift this week also show that intra-regional traffic in the region is up by 19.8% compared to 2015, now accounting for 69% of payments traffic in East Africa. Since 2013, the average number of daily messages in the region has almost doubled, from 15,234 to 27,907 in 2016. According to Swift’s head of Sub-Sahara Africa, Denis Kruger, the notable growth in Swift traffic volumes “could indicate an increase in trade flows, both within the East African region and between East Africa and other countries”. Swift research has shown that its traffic data is closely correlated to economic activity. A rise in traffic volumes in therefore a sign of a long-term growth trajectory for East Africa, despite challenging global conditions, the company says. The figures, Swift notes, reflect the success of the East African Payment System, which was established by the East African Community in 2013 with the aim to reduce transaction time and lower the cost of doing business in the region. The multi-currency system, which operates on the Swift network, links domestic payments systems in Kenya, Tanzania, Uganda and Rwanda, making cross-border fund transfers within the countries easier, supporting the free movement of goods, labour and services. The rest of the African continent...

The currencies of five member states, Tanzania, Kenya, Uganda, Rwanda and Burundi, showed minute fluctuation in either sides raging between -2 and 11 units. Uganda currency firm The best currency was Uganda’s shilling that appreciated by 11/- to 3,605/- up from 3,616/- at August 1st. The shilling held its position firmly yesterday since it was underpinned by low dollar demand from commercial banks and importers in the manufacturing and telecommunications sectors. The second best was Kenyan that gained by 1/- yesterday to 103/- from 104/- the first day of last month. Tanzania shilling loses On other hand the Tanzania shilling, in a month under review, depreciated more compared to its peer units. The shilling opened last month at 2,242/- a greenback but slipped to 2,246/- yesterday to start a month in slightly bad foot. “The impact for the fluctuation of two or five shillings is insignificant, but is something,” Leonard Joseph, an economist said. Kenya shilling upbeat Kenyan shilling yesterday opened the trading floor at a stable note and traders said it may start to strengthen. However, the shilling of the biggest economy in the bloc—depreciated last Friday after the Supreme Court nullified August 8th presidential election—on month basis marginally gained by 1/- to 103/- from 104/- of August first. The shilling and alongside Kenyan shares and dollar bonds had plunged on Friday after the court backed a petition brought by opposition leader Raila Odinga and declared President Uhuru Kenyatta’s election victory invalid. But traders said the shilling could start...

The EAC Secretary General, Amb. Liberat Mfumukeko said during the opening of the conference in Arusha recently that the Pre-Budget Conference is happening at a time when EAC is finalizing preparations for the 5th EAC Development Strategy 2016/17 – 2020/21. “I am glad that priorities and development objectives as well as strategic interventions therein stipulated have been validated by Stakeholders’’ The six key areas to be considered in the formulation of the next budget are further liberalisation of the free movement of labour, goods and services, improved cross-border infrastructure to ease the cost of doing business and enhanced regional industrial development. Others include agricultural productivity and transformation through investment in key priority areas, implementation of the roadmap for the attainment of the EAC Monetary Union, strengthen peace, security and good governance and institutional framework for the EAC Political Confederation. Moreover, improve socio-cultural welfare of the people in the region and institutional transformation are among the crucial areas that will be considered in guiding the budget formulation as well as corresponding activities for 2018/19 FY. Amb Mfumukeko urged the participants to appreciate the role of the Organs and Institutions of the Community, as well as the Partner States in moving the integration process forward as they discuss the priority areas, strategic interventions and activities to be implemented over the financial year 2018/19. Source: Daily News

A team of 26 cycling volunteers from six East African community member countries are on a 45-day cycling tour campaigning to raise more public awareness about the East African integration. Dubbed, ‘East African Community Bicycle Tour’, the non-competitive cycling race was for the second time organised under the ‘Campfire Logs Guild’, an initiative that brings together different East African youth communities mainly to create Unity, Peace and togetherness to strengthen the awareness of the EAC integration among member countries’ communities through cycling. John Bosco Balongo, the Tour Team Leader, said the tour has helped the team members experience the current image of EAC country members’ cooperation and took an opportunity to raise awareness on the importance of the community’s cooperation. “We have been able to ride together, struggle together and chill together to signal that the community members can share successes, risks and opportunities towards the same destiny by building a perfect regional integration, all through our cycling shared passion, we expect more youth to join us since the tour is free and open to all,” he said. Seraphine Flavia, the Acting Director General, Coordination of East African Community Affairs at the Ministry of Foreign Affairs and Cooperation, praised the team’s spirit in raising awareness of the regional integration among the member countries. “Our country is behind this encouraging and inspiring initiative and we will push for advocacy in different EAC forums to get it supported,” she said. The team is comprised of 21 males and five females, including three...

Regional integration and co-operation between sovereign states has a long history especially in Africa. According to the World Bank, the first generation regional integration schemes were partly motivated by the political vision of African unity, but also as a means for providing sufficient scale to import substitution industrialisation policies. One of the most compelling arguments for regional integration in Africa is usually made on the basis of the fragmentation of sub-Saharan Africa, which has 47 small economies, with an average Gross Domestic Product (GDP) of $4 billion (Sh400 billion), and a combined GDP equal to that of Belgium or 50 per cent of the GDP of Spain. The implication is that with the per capita growth rate being between zero and two per cent per annum, there is limited progress in poverty reduction and the achievement of many of the Sustainable Development Goals (SDGs) seems to be elusive. Regional tourism is driving the world over. For example, it is estimated that four out of five international arrivals are visitors travelling within their region (UNWTO Tourism Barometer 2014). Leading destinations in Europe, USA and southern Africa have domestic and regional tourists accounting for between 60 and 70 per cent, which therefore acts as the foundation for their industry thereby cushioning them from international shocks whenever these occur, as they are bound to. In Kenya, arrivals from Africa by air in 2015 were estimated at 26 per cent of the total arrivals. However for the year 2014, when cross border numbers are...