African ministers and business people joined their American counterparts in Washington, D.C., last week at the U.S.-Africa Business Summit, to discuss greater economic engagement, despite lingering uncertainty over the United States’ position toward global trade. Conversations at the Corporate Council for Africa-hosted event ranged from broad strategy to country-specific investments, with plenty of time for meetings and deal-making. Throughout those talks, a few key issues emerged. First on many attendees’ minds was what the U.S.-Africa relationship will look like under President Donald Trump’s leadership. But robust discussions also emerged around the role of business in pandemic response, how to target and achieve social impact and the need for regional integration and infrastructure improvements. Here’s a look inside several of those conversations, and where they may be headed. The U.S.-Africa relationship U.S. Commerce Secretary Wilbur Ross addressed the summit, offering reassurances and some specifics about the administration’s view toward existing and future trade pacts with the continent. “We cannot ignore such a large, dynamic and vital part of the world,” he told attendees of the administration’s interest in Africa. The administration would like to see Africa continue to grow and become more self-reliant, he said. “Our trade relationship is vital to the security and stability of both the U.S. and Africa. But our relationship with Africa has to continue its transition from being ‘aid-based’ to ‘trade-based,’” Ross said. The U.S. will honor the African Growth and Opportunity Act, he said, adding that it will hold countries to account for the compliance restrictions....

The Government of the Federal Republic of Germany yesterday committed two grants amounting to € 35 million Euros to the East African Community (EAC). His Excellency, Egon Kochanke, German Ambassador to Tanzania, handed over the commitment note in his meeting yesterday with the EAC Secretary General Liberat Mfumukeko. The financial cooperation grants will be available for the sectors of health and education: Germany will provide 30 million Euros for the procurement of vaccines for children in the EAC against various diseases. The programme will be implemented in collaboration with the GAVI Alliance. This new commitment will bring Germany`s contribution to regional immunisations programmes with the EAC to 90 million Euros since 2012. A further 5 million Euros are foreseen for a new program financing scholarships for post-graduates in the East African Community. The program thus aims at strengthening the younger academic generation in becoming catalysts for further regional integration. H.E. Egon Kochanke pointed out: "The cooperation with the EAC and with the GAVI Alliance on vaccinations are an important pillar in fighting diseases in the region. And our new envisaged scholarship program is another stepping stone towards stronger regional integration in East Africa." Since as early as 1998, Germany's development cooperation, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has contributed to the regional integration in East Africa through a variety of programmes and projects. With the new commitments Germany's funding for Technical and Financial Cooperation with the EAC amounts to over 200 million Euros....

Back then did key tourism players approach Trademark East Africa and impressed upon them urgent need to support the tourism private sector across the East African Community for closer integration. EATP since then has come a long way, faced challenges and also triumphed in many instances. The regional members look with pride at the strides made and have confidence in the foundation which has been laid in the East African Community. Since inception in 2012 has EATP managed to facilitate several reforms that have positively impacted East Africa’s tourism industry. The organization has constantly engaged policymakers and championed for the private sector. As a result, they have received recognition from across the globe, with notable examples from UN World Tourism Organization and the World Bank. In the words of a World Bank publication (2016) ‘EATP has shown leadership in attempting to champion and facilitate a collective, coordinated and simultaneous approach to enhancing East Africa’s competitiveness in travel and tourism‘. The organization played a critical role in the pursuance of a Single Destination Brand showcasing East Africa as One in Tourism Expos, zero-cost work permit-enabling free movement of labour, The Single Tourist Visa now in place between Kenya, Uganda and Rwanda, Interstate Pass travel among these three countries for duly registered expatriates, the establishment of a Joint Tourism Marketing Committee and the launch of a Joint Stand/Booth at WTM and ITB Berlin. National tourism private apex bodies were during this period also strengthened and these organizations are now able to lobby...

CTA, in collaboration with various partners, participated in a number of panels at the European Development Days 2017, which took place from the 7th to 8th of June in Brussels (Tour et Taxis). These panels addressed key subjects concerning the future of agriculture: Trade & Investment, Women entrepreneurs and Youth in Agribusiness. Over the space of two days, CTA brought to the forefront of the development community the most pressing issues affecting the agriculture and rural development in Africa, the Caribbean and the Pacific. During the first session on Boosting Investment for ACP Inclusive Trade and Development, panellists addressed innovative means to harness investment opportunities to empower the ACP as the world’s next emerging economy. The organisers were the ACP-EU TradeCom II Programme, the ACP-EU TBT Programme and CTA. Bibi Ameenah Firdaus Gurib-Fakim, President of the Republic, Republic of Mauritius, opened the session with a comprehensive overview of the opportunities and challenges faced by the ACP group in the context of trade and development. The European Commission's Roberto Ridolfi, emphasised how the EU can work with the ACP group to enable them to enhance opportunities from trade and sustainable development whilst Pamela Coke-Hamilton from the Caribbeam Export Development Agency was keen to use the example of the Caribbean to emphasise the importance of regional cooperation, intra-ACP collaboration and economic diversification. This was echoed by Masego Marobela, who explored how intra-ACP collaboration has helped to address trade barriers, and called for greater action on this front. She also emphasised the challenges faced...

One of the most talked about issues in Kenya currently is the Chinese-funded and built railway line connecting the capital Nairobi to the port city of Mombasa, on the shores of the Indian Ocean. This East African nation has reason to celebrate. Mombasa is a crucial hub for trade, business and pleasure and it is therefore a city of interest for many across the East African region. The new railway line is so significant that for weeks now the government and opposition have been locked in a war of words over who deserves to take credit for this milestone. It is about 122 years since a railway line was launched in this country and Kenyans are optimistic that the socio-economic impact will be astounding. Many are already enjoying the benefits. Travelers to Mombasa who could not afford the expensive flights had to resign themselves to the bus, which takes nine to 10 hours and costs between about $12 and $20, depending on the season. When there is a mishap on the road, as often happens, the trip can be much longer. With the new trains it will take about four hours to travel between the two cities. When President Uhuru Kenyatta launched the new railway line, he offered an introductory fare of $7. But fares will soon be revised to a standard $9. Those who want to travel in the more luxurious first class will have to pay about $30, which is still an attractive offer for many. The train's...

Inadequate funding may force the East African Science and Technology Commission (Easteco) to halt some of its activities. A recently-released report by the East African Legislative Assembly (Eala) said the approved budget from the 2016/2017 financial year was inadequate to cover major activities of the institution of the East African Community. The critically affected activities include evaluation of technologies for agricultural products, establishment of a regional journal of scientific research and technologies and convening annual youth innovation forum. During the current fiscal year ending on June 30, Easteco was allocated $1,196,138 for its expenditure, comprising $ 676,076 from the partner states and $520,066 from the general reserves. But by February this year, only $424,623 had been received from the partner states -- Tanzania, Uganda, Kenya, Burundi and Rwanda -- and $ 100,000 from the EAC General Reserves. According to the report by the Eala Committee of Accounts,which was tabled before the Eala plenary session held here recently, the Kigali-based institution received was equivalent to 44 per cent of its 2016/2017 budget. Due to the funding constraints, a big chunk of the money - 64 per cent -went to salary and employee benefits, administrative costs 25 per cent while programmatic and related expenses consumed only eight per cent. "The commission is constrained to the extent that in addition to untimely remittances, it is subjected to zero increment of budget," the report said, warning: "Always paying salaries and administrative expenses without activities to achieve the objectives defeats the purpose for which the...

The East Africa Business Council (EABC) is scheduled to elect new leaders that will drive the organization’s agenda and mandate for the next one year, at an annual general meeting in Kampala on Friday. The meeting which will be attended by members from the five regional countries is expected to elect the Chair, Vice-Chairs and Members of the EABC Executive Committee. According to the executive director, Lilian Awinja, the new chair person is expected to come from Uganda, in accordance with the rotational principal. “The AGM is the supreme policy making organ of the East African Business Council, and meets once a year to elect the Executive Committee headed by the Chairperson. It also meets to give overall direction to the Secretariat in line with the Strategic Plan and interests of the business community in East Africa,” she said. The East African Business Council (EABC) is the apex body of business associations of the Private Sector and Corporates from the 5 East African Countries. It was established in 1997 to foster the interests of the Private Sector in the integration process of the East African Community. Awinja said the new board of directors will play a critical role in spearheading advocacy on regional trade issues on behalf of the Private Sector in East Africa. The EABC Board of Directors consists of 22 members headed by a Chairperson, who is elected from the 5 Partner States on an annual rotational basis. Out of the 22 members 4 are Vice Chairs from...

"We have to understand that our industries are operating in a global context, in an open globalized market place, and that is not going to change. We have to be innovative and work on our efficiencies. We should be able to produce high quality products that are competitive at international markets,” said Ali Mafuruki, board chair of Trade Mark East Africa. He added that regional economies should strategically position themselves in the global business environment through producing locally made products that are price competitive. Rwanda hosts the forum from May 23 to 25, 2017 dubbed “harnessing the Manufacturing Potential for Sustainable Economic Growth”. The three-day meeting includes an exhibition where investors, enterprises, researchers and academia will collectively showcase new products and services as well as exhibit the latest advances in manufacturing technology and innovation, particularly those with relevance to Small Medium Enterprises. Lilian Awinja, executive director of East African Business Council (EABC), called for innovative strategies that will raise competitiveness levels and expand the region’s manufacturing and export base. “Innovations are now shaping the business environment. We need to add value to products produced in EAC. Our regional industries can now begin to raise manufacturing output and increase its share of global trade and production,” she added. Mukhisa Kituyi, secretary-general of United Nations Conference on Trade and Development (UNCTAD) said manufacturing sector in East Africa needs to develop innovative approaches that are essential for local products to compete favorably at global markets. “We should reduce the importation of cheap products...

VCN- According to the World Customs Organization (WCO), the WCO successfully conducted a five-day workshop from 22nd to 26th May 2017 at Nairobi, Kenya to review and develop a new regional risk management strategy pack for the EAC Customs Region. The workshop was conducted under the WCO EAC CREATe Project, financed by the Government of Sweden. The workshop brought together Risk Management experts from Customs administrations of the EAC Partner States and was facilitated by a WCO expert supported by SACU Risk Management experts. The SACU Region recently developed a similar strategy and this activity was the perfect platform for the SACU region to share its experience and further enhance regional cooperation between different Customs Union of Sub-Saharan Africa. The Regional Risk Management Strategy pack which outlines a strategy for the region, risk management criteria and templates for regional risk register draw from the objectives of the EAC Customs Union and the EAC Customs Union Strategy. The implementation of the 5-year Strategy will see the EAC adopt a harmonized approach to Risk Management which will include common definitions of risks, harmonized risk criteria, and the sharing of intelligence information among Partner States Customs administrations. At the opening of the workshop, Mr. Peter Ng’ang’a who represented the Kenya Revenue Authority Commissioner for Customs underscored the importance of a regional approach to Risk Management especially in regard to the nature of risks that tend to transcend borders and noted that the new strategy will come in at the right time as the EAC embarks...

Flights between East African countries will be classified as domestic travel by the end of this year. This is expected to lower the price of air tickets and increase the number of air passengers if an agreement is signed between regional aviation regulators. The change will see the price of air tickets drop by up to 12 per cent across the region, with domestic flyers charged a service fee of $5, compared with the $50 paid by international passengers. The Kenya Civil Aviation Authority said that following negotiations with their counterparts in the region, the recommendation was agreed to in principle. They are now pushing their respective governments to sign the agreement, said KCAA director-general Captain Gilbert Kibe. Air travel in East Africa has grown by 3.4 per cent in the past decade – against a global growth rate of 5.5 per cent – a trend attributed to high intra-EAC air fares. Debt burden It is estimated that 43 per cent of air ticket prices in the region comprise regulatory charges and taxes, with regulatory charges accounting for up to 24 per cent, hence the need to review the pricing structure. A recent study commissioned by the East African Business Council showed air liberalisation could lead to a reduction in air fares of 9 per cent and a 41 per cent increase in frequencies, which in turn stimulate passenger demand. This, the report notes, could result in an additional 46,320 jobs and $202.1 million per annum in revenues in the...