News Tag: Kenya

Uhuru urges Tanzania, Burundi to effect work permit fees waiver

President Uhuru Kenyatta on Monday asked Tanzania and Burundi to waive work permit charges in the spirit of East Africa Community (EAC) of allowing free movement of people and goods. President Kenyatta said the dream of a borderless East Africa would be realised if all partner states honoured an EAC Heads of State summit deal that sanctioned free movement of people, goods, services as well as capital. “My government provides free work permits to all East Africans and we urge other partner states to do the same,” said President Kenyatta in a speech read on his behalf by Labour Services and EAC Affairs Cabinet secretary Phyllis Kandie at the official opening ceremony of the East Africa Business and Entrepreneurship Conference and Exhibition. Kenya, Rwanda and Uganda have since waived the work permits but Tanzania and Burundi are yet to ratify the deal. The deal also allows research, law, architectural and real estate firms from sister countries to offer cross-border services. The move also saw single visas for foreign tourists introduced with hotels, tours and travel agencies now allowed to offer cross border services. The cost of a permit in Tanzania ranges between Sh525 and Sh262,500 ($6 and $3,000). In Burundi, it ranges from Sh5,250 and Sh7,350 ($60 and $84). READ: Eala joins calls for uniform removal of work permit fees The East African Common Market Protocol which was ratified in 2010 provides for free movement of workers but the governments have retained the permits on policy, health and security concerns....

Zanzibar to host key East African regional meet

This is the first time for the Zanzibar archipelago to host the EALA as part of its rotational principle which serves as the second meeting of the Fifth Session of the Third Assembly. Some Tanzanian members of EALA come from Zanzibar, which is part of the United Republic of Tanzania. EALA Sittings are held under the principle of rotation as per Article 55 of the East African Community (EAC) Treaty. EALA meets at least once in every year at the EAC Headquarters in Arusha. Addressing journalists in the Zanzibar archipelago, EALA Speaker Daniel Kidega said the Assembly is expected to discuss three key Bills — EAC Gender Equality and Development Bill 2016, EAC Trafficking in Persons Bill 2016 and the EAC Polythene Materials Control Bill 2016. According to Kidega, there will be a number of reports which are expected to be discussed and debated before the House. The EAC Counter-Trafficking in Persons Bill 2016 seeks to provide a legal framework, develop common measures, strategies and programs to the prevention of trafficking in persons and the perpetrators of such actions. The Bill is to further develop partnerships for co-operation in counter-trafficking in persons and provision of protection mechanisms and services for persons. The EAC Polythene Materials Control Bill 2016 moved by Patricia Hajabakiga aims to provide a legal framework for the preservation of a clean and healthy environment through the prohibition of manufacturing, sale, importation and use of polythene materials. The Bill was re-introduced during the Sitting held in August in...

Africa: Ethiopia-Djibouti Railway Lifts China's Efforts in Africa's Rail Network

Nairobi — The launch of the Chinese-built Ethiopia-Djibouti railway has shown China's special position in the modernization of Africa's infrastructure, Kenyan scholars said Saturday. "The launching of the Ethiopia-Djibouti standard gauge railway line is expected to spur similar efforts of Africa to link the continent more effectively with an efficient railway transport network, which could be what Africa needs for close integration and expansion of intra-Africa trade," Gerishon Ikiara, an international economics lecturer at the University of Nairobi, told Xinhua. The fully electrified Ethiopia-Djibouti railway links Ethiopia's capital Addis Ababa to the Red Sea port of Djibouti. It was built by Chinese companies with the help of funding from a Chinese bank. Ethiopian Prime Minister Hailemariam Desalegn and Djibouti's President Omar Guelleh presided over the launch of the 752.7km Ethiopia-Djibouti railway on Oct. 5. The Ethiopian premier said the electrified rail helped cut travel time between the two countries from seven days to just 10 hours. Ikiara, who was Kenya's vice minister of transport, said the completion of the railway line was a major milestone in the modernization and expansion of transport infrastructure in Africa. "It is expected that the Chinese influence in Africa's development is going to rise rapidly," he said. "The emerging dominance of China in Africa's development is leading to increased competition for Africa's infrastructure financing and construction works," he said. The scholar said the railway line would help boost the development of the two countries. "The collaboration between Ethiopia and Djibouti in the successful implementation of...

Trade to top agenda of President Zuma's first state visit to Kenya

President Jacob Zuma arrives in Kenya on Monday for a three-day state visit. During his visit, Zuma will hold talks with Kenya's President Uhuru Kenyatta on a wide range of bilateral issues and also attend a joint South Africa - Kenya business summit. Trade, immigration as well as security will top the agenda of President Zuma's first state visit to Kenya. The visit has been termed historic as it is the first state visit to Kenya by a sitting South African head of state and because both country are economic giants in their respective regions. Kenya, which has fronted foreign affairs cabinet secretary Amina Mohammed to head the African Union Commission will be seeking to lobby South Africa to back her candidacy during the upcoming elections in January. South Africa is Kenya's fourth source of imports. In 2016, South African exports to Kenya topped R8.3 billion while imports from the East African nation stood at R366 million . Source: SABC

The African passport will be a hard sell

The concept of a United State of Africa has gained traction after the African Union (AU) launched an African passport in July 2016. The goal is to have the document in circulation by 2020 to allow citizens of the 54 member states travel visa-free across Africa. PHOTO: COURTESYThe concept of a United State of Africa has gained traction after the African Union (AU) launched an African passport in July 2016. The goal is to have the document in circulation by 2020 to allow citizens of the 54 member states travel visa-free across Africa. The notion of a single continental bloc was advanced by the late Libyan President Col. Muammar Gaddafi who even put substantial resources into it to woo African states into buying the proposed idea. Although largely driven by his own political ambitions, Gaddafi had a valid proposition of a united Africa. While there are both pros and cons, the quest for one passport for Africans is welcome. There are numerous benefits to be derived from a united Africa that would outweigh those of a divided continent. If this becomes a reality and enables citizens of 54 member states travel with ease, it will spur growth by encouraging intra-Africa trade. A more integrated Africa would empower us to better negotiate for our rightful share at the global arena, perhaps starting with a permanent seat at the UN Security Council or a greater role in global trade institutions such as the World Trade Organisation. The question however is; how practical...

East African business must create jobs, support regional integration

Dr. Kituyi is due to speak at several events at the East African Business and Entrepreneurship Conference and Exhibition, which takes place in Nairobi, Kenya, from 10 to 13 October. The event brings together leaders from the government and private sectors in the East African Community (EAC) states, as well as entrepreneurs and investors from abroad. "Countries such as Kenya have some of the most dynamic business people, demonstrated by extraordinary technological successes and innovation," Dr. Kituyi said. "But business also benefits from value addition, job creation, and regional integration, and must do more to make these things happen," he added. Analysts have long recognised that business has a critical role to play in achieving the Sustainable Development Goals, including by creating jobs. More jobs, in turn, mean fairer growth, more social stability, and larger consumer markets. In particular, regional integration and regional value chains still represent untapped opportunities. Meanwhile, technological change offers risks as well as opportunities. On the one hand, East African countries like Kenya and Rwanda have led the way with innovation-led growth with such firms as mobile-banking company M-Pesa and RSwitch, Rwanda’s national e-payment system. On the other hand, technological change and the use of more robots in manufacturing may mean that East African countries can no longer count on low wages as a competitive advantage. "One of the most exciting questions for East African business must surely be to ask how can we stay ahead of the fast moving technological wave?," Dr. Kituyi said. The...

Harmonized standards can sharpen EAC competitive edge

Standards are a vital element in trade, because they help business interaction and access to markets in the economy.  Standards and compliance can also encourage trade by providing valuable information about product requirements or consumer preferences which all add to competitiveness. A standards regime helps open-up markets. It allows customers to compare offers from different suppliers, making it easier for smaller and younger enterprises to compete with larger and stronger companies. They also give small and medium size enterprises (SMEs) a competitive advantage by enabling them to compete on a level playing field with bigger enterprises internationally and to increase market share. With a total population of about 146 million people, the East African Community (EAC) offers fertile ground for companies to do business.  By doing so, this leads to economic growth generated by higher levels of intra-East African trade. The EAC has developed East African Standards to harmonize requirements governing quality of products and services across the Community. Companies rely on these standards and their own conformance to increase efficiency, reduce costs, and boost sales of their products and services. Implementation of common standards has put the EAC at the fore front of competition policy in sub-Saharan Africa.  It is foreseen that through harmonized standardization and compliance, any trade barriers encountered during the exchange of goods and services within the EAC is limited or avoided altogether. On the other hand, compliance with strict standards of regulations can often be expensive for companies. However research points to the fact that...

East Africa: EAC Chief Vows to Keep Cutting Costs

Arusha — The East African Community (EAC) secretary general Liberat Mfumukeko says he will not backtrack in his drive to cut down costs and putting in place prudent financial management at the regional organisation. He said the reforms he has instituted since assuming the position slightly over five months ago would also cover all organs of the Community as well as its institutions spread across the region. "The Community had expanded tremendously within a short spell of time which has necessitated it to review its institutional set-up and work on sustainable financial mechanism," he stressed. Mr Mfumukeko reiterated his hard-line stance against extravagant use of funds at EAC when he briefed the Irish ambassador to Tanzania Paul Sherlock on achievements made in the regional integration efforts. "Achieving the Customs Union and the Common Market and moving towards the Monetary Union within such a short time for the Community was commendable," he said after receiving credentials from the ambassador who will now be accredited to the EAC. The no-nonsense EAC boss took over the position on April 25th pledging to turn around the cash-strapped regional body through cutting down unnecessary expenditure in the wake of dwindling support from the development partners and delay by the partner states to remit their budgetary contributions in time. Source: All Africa

HomeBusiness BUSINESS Kenya, Rwanda turn to Uganda for maize imports worth $6.6m

Workers loading maize onto a truck. PHOTO | FILE  IN SUMMARY Uganda has come to the rescue of Kenya and Rwanda, selling both countries more than 11,502 tonnes of maize worth $6.65 million over the past two months. This comes even as Zambia joins Tanzania in imposing a maize exports ban in order to build its reserves. Uganda and Tanzania have had a good harvest this year, and with Tanzania’s export ban, Uganda has been left to fill the maize shortage experienced by Kenya and Rwanda. Tanzania halted issuing export licences pending the release of a food availability assessment. The maize markets in Uganda are liberalised with minimum government interventions. This has seen them supply export markets in the region, mostly Kenya, Rwanda, Burundi and recently South Sudan. Uganda has come to the rescue of Kenya and Rwanda, selling both countries more than 11,502 tonnes of maize worth $6.65 million over the past two months. This comes even as Zambia joins Tanzania in imposing a maize exports ban in order to build its reserves. Data from the East Africa Grain Handlers’ Regional Agricultural Trade Intelligence Network shows that in the past two months, Kenya imported 11,303 tonnes of maize from Uganda valued at $4.61 million, mostly entering through the Busia border, while Rwanda has received 4,344 tonnes of maize worth $2.04 million through its Gatuna border. Uganda and Tanzania have had a good harvest this year, and with Tanzania’s export ban, Uganda has been left to fill the maize shortage...

Dubai Chamber trade mission to Ethiopia concludes with meetings with public and private sector reps

· MOU worth AED 184 million signed between S.S. Lootah International and Oromia International Bank SC of Ethiopia · Al Ghurair: Our aim is to get accurate information on setting up business, highlighting investment regulations and sectors while identifying challenges for investors · Buamim: We look forward to stimulate economic partnerships between the business communities in both countries · Ethiopia is Dubai's 60th trading partner with trade value of AED 2.2 billion in 2015 · Trade mission promotes Africa Global Business Forum by calling on public and private sectors to participate in the fourth session of the forum next year in Dubai 09 October 2016 Dubai, UAE: The Dubai Chamber of Commerce and Industry-led trade mission to Ethiopia concluded with the signing of an AED 184 million agreement between S.S. Lootah International and Oromia International Bank SC of Ethiopia to collaborate in supporting the coffee and other agricultural and livestock sectors with the financing and supply of needed inputs to boost their production and exports. The MoU covers financing requirements for the inputs and exports of production and value addition inputs products, export financing, warehousing and logistics for the agricultural sector including coffee and livestock production. The initial value of the agreement will be increased in its next stage with the rise in demand for the products. H.E. Yahya Bin Saeed Lootah, CEO, S.S. Lootah International, said that the agreement with the Ethiopian partner, which follows the signing of another agreement a few days ago with a Kenyan company reflects the...