Tanzania has pulled out of the East African Community (EAC) common visa, in a move described by analysts as a plan to protect itself from economic competition from the region’s other nations. The decision effectively locks out Tanzania from ‘coalition of the willing’, an initiative by the region’s nations of Kenya, Uganda and Rwanda to promote tourism and enable their nationals to freely engage in business without restricted movement, Jamhuri News reported. The visa is valid for three months. It was set to woo tourists form across the globe into the three nations as it markets the region as a single tourism destination. Several foreign tour operators had in the past complained about the immigration hardships they faced at the respective border entry points into the nations. The pull-out by Tanzania will however not affect the remaining nations from signing a cooperation pact on tourism to enable tourists move between the three nations using a common visa that will be charged $100 (10,122), $5 than the before. Tanzania’s decision to pull out of the common visa comes three months after it pulled out of the Economic Partnership Agreement (EAP) with the European Union (EU). The trade pact is meant to help the EAC members to directly export products into the EU market. The Tanzanian government took the decision to protect its local industries. The confusion surrounding Britain’s withdrawal from the EU bloc also informed the decision,Daily Nation reported. Uganda followed Tanzania, a decision which stopped the signing of the trade...

By Sylivester Domasa The government will soon announce new speed limits on certain roads that could cover sections by up to 110 kilometres under a new classification system approved by the East African Community (EAC) to facilitate road traffic and promote intra-regional trade. The regional bloc has Okayed a maximum speed limit of 110km/h; up from 80kms-, Tanzania Road Safety Week Chairman Mr Henry Bantu told reporters in Dar es Salaam over the weekend. However, as the government contemplates the new rule, the transport safety and operations expert says the new changes will push the government to increase road reserves -- a key parameter in road safety. "The new changes means the road reserves will be increased to 25 metres from the current 20... this will give enough space for unexpected road crashes to hit pedestrians near the road," he noted. "It will not be possible that while Kenya, Uganda, Rwanda, Burundi and South Sudan have approved 110km/h Tanzania maintains 80kmph. To easy trade flow the government will be forced to change the speed limits," he detailed. The 'Daily News' could not independently establish the roads that will accommodate new speed limits. However, it remained certain that all the highways connecting Dar es Salaam to upcountry regions and neighbouring countries will be affected. Efforts to get clarification from the Ministry of Home Affairs regarding the new development proved failure, but automobile industry watchdog agencies said there are more than reviewing the road reserve. Tanzania Child Rights Forum (TCRF) Legal Officer...

Before South African President Jacob Zuma visited Kenya last week, expectations were high that a deal allowing freer travel would be struck. The expectations were dashed when President Zuma dithered, only pledging that matters immigration was a work in progress. Kenya's visa interests were not a completely lost cause as the joint communique captured South African "concessions" offering easier visa terms for elite categories of Kenyans. It, however, fell short of reciprocal balance given South Africans enjoy a visa-on-arrival regime while Kenyans endure steep hurdles in travelling to South Africa. The reason President Zuma gave for the equivocation is that terrorists and criminals would exploit the opportunity to gain entry into South Africa and wreak havoc there. In essence, law abiding Kenyans are collateral damage. This justification can be given benefit of doubt considering the reality of terrorists in Kenya. Incredulity can, however, be entertained. An important factor that might have impelled South Africa to prevaricate is that the country has policies and regulations focused on checking the influx of African economic refugees. Kenya is no exception. Allowing Kenyans no-holds-barred entry would have been received negatively by South African interest groups that have often expressed angst at other Africans, especially of lower classes. It would also have had a domino effect with other African countries pushing for similar deals. It is noteworthy that President Uhuru Kenyatta lobbied his counterpart on the visa issue at an open press briefing. It would appear that President Kenyatta was showing his being in sync...

Cargo ship at the port of Mombasa. Insurance companies in the region are now eyeing a $170 million marine insurance dividend following the Kenya National Treasury’s directive to cargo importers to insure with local insurers from January 1, 2017 when the new law takes effect. PHOTO | FILE IN SUMMARY Insurance companies in the region are now eyeing a $170 million marine insurance dividend following the Kenya National Treasury’s directive to cargo importers to insure with local insurers from January 1, 2017 when the new law takes effect. Insurance companies in the region are now eyeing a $170 million marine insurance dividend following the Kenya National Treasury’s directive to cargo importers to insure with local insurers from January 1, 2017 when the new law takes effect. The new requirement comes at a time importation of high worth equipment and raw materials is expected to increase as a result of the massive infrastructure projects underway in the East and Central African regions. The requirement for local insurance is contained in Section 20 of the Insurance Act and it will now be the duty of the Kenya Revenue Authority to oversee its implementation by importers to show their insurance contract with a local firm before clearing goods. Currently, it is a requirement that imports be verified in the source country under the Pre-Export Verification of Conformity (PVoC) mechanism set up by the KRA and the Kenya Bureau of Standards. Kenya’s Transport Cabinet Secretary James Macharia said tly the marine insurance segment currently...

Comesa Secretary-General Sindiso Ngwenya. PHOTO | FILE  IN SUMMARY The Comesa market is currently dominated by the European Union and China. China commands a 12 per cent share of imports into Comesa countries, while the US trails in fifth position, with only five per cent of the total value of imports into Comesa. The United States has given a $77 million five-year grant to the Common Market for Eastern and Southern Africa to help reduce cross-border risks to trade and to pave the way for increased foreign investment. The Comesa market is currently dominated by the European Union and China. The signing of the memorandum of understanding took place in Madagascar’s capital Antananarivo at Comesa’s 36th intergovernmental committee meeting, ahead of the Heads of State Summit that will take place from October 18-19. Comesa Secretary-General Sindiso Ngwenya signed the deal on behalf of his organisation, while Eric Schultz, the US ambassador to Zambia, who also doubles as the special representative to Comesa, and USAid deputy director for Kenya and East Africa Candace Buzzard, signed on behalf of the US government and USAid. The funding will go towards strengthening regional trade, investments and agricultural development programmes. This funding will help Comesa’s regional programmes under the Africa Growth and Opportunity Act (Agoa), such as Trading for Peace, Agriculture, Sanitary and Phytosanitary Standards, commodity trade in the bloc, gender, energy and climate change. Through this agreement, Comesa and USAid will work together to promote regional economic integration, reinforce institutional governance and accountability and...

The recent industry data from Kenya Tea Development Agency indicates that the country exported to Egypt tea worth Sh7.4 billion. PHOTO | FILE  IN SUMMARY Kenya accounted for 17.3 per cent of the $7.5 billion that was transacted within the 19 member states last year. The country’s exports to the region stood at Sh131 billion ($1.3 billion). Kenya now accounts for the second largest share of exports in the Common Market for Eastern and Southern Africa (Comesa) behind Egypt, highlighting the importance of the trading bloc to the local economy. A report from Comesa indicates that Kenya accounted for 17.3 per cent of the $7.5 billion that was transacted within the 19 member states last year. Kenya’s exports to the region stood at Sh131 billion ($1.3 billion). The goods from Kenya mainly comprised agricultural produce, especially tea and tobacco, animal products and consumer goods to countries such as Uganda, DR Congo, Rwanda and South Sudan. The value of imports from Comesa member states to Kenya was $612 million (Sh61.2 billion) in the year under review, tilting business in favour of Nairobi. African trade remains centred on the three countries that have an appreciable manufacturing base — South Africa, Kenya and Egypt. Most of the countries in the trading bloc are landlocked, forcing them to rely on countries with ports such as Kenya, Tanzania and Mozambique for goods. The recent industry data from Kenya Tea Development Agency indicates that the country exported to Egypt tea worth Sh7.4 billion. “Egypt and Kenya...

Kenya wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that East African Community members would be comfortable with and which would not be subject to exemptions. PHOTOS | FILE  IN SUMMARY Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries. “Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application,” Kenya’s Principal Secretary in charge of Trade Chris Kiptoo told The EastAfrican. Burundi, Rwanda, Tanzania and Uganda are also working on their positions. A team of experts from the EAC is expected to review the proposals for each country and reach a common position before the revised CET takes effect on July 1, 2017. Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries. Trade officials said the country wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that members would be comfortable with and which would not be subject to exemptions. “Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application,” Kenya’s Principal Secretary in charge of...

By James Anyanzwa Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries. Trade officials said the country wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that members would be comfortable with and which would not be subject to exemptions. "Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application," Kenya's Principal Secretary in charge of Trade Chris Kiptoo told The EastAfrican. He said Kenya was consulting key stakeholders across the EAC before presenting the proposal to the Secretariat for discussion by the Council of Ministers. Burundi, Rwanda, Tanzania and Uganda are also working on their positions. A team of experts from the EAC is expected to review the proposals for each country and reach a common position before the revised CET takes effect on July 1, 2017. Officials privy to the discussions said Kenya wants sugar, maize, wheat and rice removed from the list of sensitive goods altogether but experts fear this would be detrimental for industries, job creation and poverty reduction. "I would go with reducing the rates on these goods but not removing them from the list of sensitive items until our industries stabilise. A drastic move would render industries inoperable," said Eliazar Muga, regional integration and trade consultant and managing...

The number of regional trade agreements has almost quadrupled in the past 25 years, from 70 in 1990 to around nearly 280 today. The collapse of the Doha round of trade talks in Nairobi in December has deflected energy to regional trade agreements. These agreements are great in helping rejuvenate global trade, which slowed as the economic recovery tapered in recent years and the Chinese economy decelerated. Africa is well positioned to engage regional trade agreements. Signed in Sharm-el-Sheikh, Egypt, in June 2015, the Tripartite Free Trade Agreement (TFTA) brings the Common Market of Eastern and South Africa (COMESA), the East African Community (EAC) and the Southern Africa Development Community (SADC) into the continent’s largest free-trade zone covering 26 countries from Egypt to South Africa. The agreement aims to fuel the continued growth of intra-regional trade on the continent, which has skyrocketed from $2.3 billion in 1994 to $36 billion in 2014. Intra-Africa regional trade still accounts for just 25 percent of total exports for the sub-Saharan region, according to the Brookings Institute. By comparison, European and Asian intra-regional exports are at 70 percent and 50 percent respectively. Sub-Saharan Africa still has a distance to go. Residual effect of Trans-Pacific Partnership on global trade The Trans-Pacific Partnership agreement – once ratified – will bring together 12 economies in the Pacific Rim excluding China with the U.S. These countries account for 40 percent of the world’s gross domestic product and a third of its trade: U.S., Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. The pact aims to deepen economic ties between...

EAC secretary general Amb Liberat Mfumukeko in Arusha, Tanzania, addresses the media on Monday /ANGWENYI GICHANA The East Africa Community secretariat aims to save more than US$6 million (Sh59.63 million) in the current financial year through the cost-cutting strategy it adopted earlier this year. EAC secretary general Liberat Mfumukeko says the bloc has saved $588,760 in travel expenditure alone since the measures were adopted in May – around the same time he took over from Richard SezIbera on April 25. “Since we instituted several reforms in the EAC organs and institutions aimed at reducing costs in the EAC projects and programmes, the implementation of these reforms is going on very well, and already some positive results are being received,” Mfumukeko said. He told a press conference at the EAC headquarters in Arusha on Monday that “it is no longer business as usual”. The reforms focus on cutting wastage, containing and reducing frequency of travels where EAC officials should spend half of their working days in Arusha. Twenty-five per cent of the meetings are held via video conference facility. “We have also reduced the number of days for our meetings to a maximum of four,” the secretary general said, highlighting the achievements in the last five years and priority areas for the next five years. Mfumukeko said the EAC operations passed the European Union Fiduciary Risk Assessment. “The assessment on the secretariat’s operations in five pillars namely: internal control system, accounting systems, independent external audit, procurement and sub-delegation met the internationally...