The six African countries threatened with losing access to the European single market have finally agreed to sign the EU’s Economic Partnership Agreements (EPAs). But the continent’s regional integration may suffer as a result. EurActiv France reports. Kenya’s parliament last Wednesday (21 September) ratified the European Union EPA, signalling the end of a drawn-out struggle between several African countries and the European Commission, over the future of their trade relations with the EU. In July, Brussels had upped the pressure on six African governments, threatening to suspend their single market access if they had not ratified the new agreements by 1 October. Customs duties Faced with a tax on their EU exports if they failed to cooperate, Ghana, Ivory Coast, Botswana, Namibia, Swaziland and Kenya all finally agreed to ratify their Economic Partnership Agreements, bringing the lengthy negotiation process to an end. These EPAs replace the non-reciprocal trade agreements granted by the EU under the Cotonou agreement, signed in June 2000. The aim is to maintain the preferential access to the European market enjoyed by the African, Caribbean and Pacific (ACP) countries, in return for reduced customs duties for European exports. But the balance of the new agreements has attracted criticism from certain African countries, as well as civil society organisations, which say the dice are weighted in favour of the EU. The loss of customs revenue, coupled with competition from European products arriving on less development markets, is a major cause for concern. Integration in East Africa Following the...

By Jonathan Kamoga Trade between Uganda and Kenya is projected to increase as the construction of a new and shorter route from Mbale to the Lwakaka border post in eastern Uganda kicks off. The state minister for trade, Michael Kafabusa Werikhe, said when this road is complete, the quantity of exports and imports through Kenya is set to increase. Warikhe was speaking at a contract-signing ceremony between Uganda National Roads Authority and Chinese contractor, China State Construction Engineering Corporation, recently. "With the construction of this road, we are going to see improved quantity of trade in this area and this is especially with Kenya and South Sudan," he said. The 44.5-kilometer road will be constructed using a Shs 140bn loan from the African Development Bank and it will be completed within two years. Allen Kagina, the Unra executive director, was adamant that because of the productivity of the area, the road will benefit both Kenya and Uganda. "Kenyans have over time told us that this is a shorter route, can you make this road for us," Kagina said. "This is a very productive area for feeding both Uganda and Kenya and we expect production to go up. We also expect tourism to increase." Source: All Africa

The travel and tourism industry is recognizing World Tourism Day. Founded in 1980 by the United Nations World Tourism Organization (UNWTO), each year World Tourism Day brings together the global tourism community to highlight a significant theme with implications for destinations large, small, cosmopolitan, and rural, on every continent. This year's theme, “tourism for all, promoting universal accessibility,” touches on one of the most salient tenets of travel – mobility and inclusivity. According to the UNWTO, “accessible tourism for all is about creating products and services that can equally be enjoyed by persons with disabilities, tourists and locals, families with small children, seniors and everyone else.” According to 2015 UNWTO figures, Africa welcomed 62.6 international tourists, a decline of 2.7 million from the year prior, yet there is no greater region with the potential to boost accessibility for local, regional, and international visitors than in Africa. And in 2016, we have seen tremendous strides in making Africa a more accessible destination. “Africa has some of the most exciting and unique tourism experiences. The focus on tourism inclusivity and accessibility for all, presents African entrepreneurs with tremendous economic opportunities to develop tourism products, services, supply chains, and technology platforms to accelerate Africa's tourism sector growth and sustainability,” said Charles Leyeka Lufumpa, Director of the Statistics Department, African Development Bank. This year's Tourism Day celebrations coincide with the launching in July 2016, of the African Union's electronic passport (e-Passport). “This flagship project, first agreed upon in 2014, falls squarely within the framework...

The County Government of Mombasa is threatening to enact a Bill that could increase levies charged on shippers at the port by introducing the infrastructure development levy. The Bill could raise the cost of imports and reduce the competitiveness of the port of Mombasa. The Shippers Council of East Africa (SCEA) have appealed to the government to overturn the law if passed by the county assembly. The county which is struggling financially sees the port as potential source of cash that could revolutionize revenues. The proposal which was opposed last year has again been introduced in the finance bill 2016/2017. The county intends to charge Sh5000 on every 20-foot container and Sh9000 for every 40-foot container. Shippers however argue that they are already paying taxes to the government and that they cannot face double taxation. “We hope that the government will intervene and degazette the rule,” SCEA chief executive Gilbert Langat said reacting that to the county’s move to include the proposal  in the finance bill of this financial year. The shippers noted that this could affect Mombasa as the port of choice for ships in favour of adjacent ports such as Dar. Source: The Exchange

The World Trade Organization Tuesday lowered its global trade forecast, warning that anti-globalisation rhetoric and Brexit were pushing trade growth to its slowest pace since the financial crisis. The warning comes as talks on a landmark free trade deal between the European Union and the United States faces stiff opposition and Britain's EU exit causes jitters. The WTO said that global trade was now estimated to expand by just 1.7 percent this year, compared to its April projection of 2.8 percent. The WTO estimates that global trade will expand by just 1.7% in 2016, compared to its April projection of 2.8% The new figure is also a far cry from a projection a year ago that trade would swell by 3.9 percent this year. Describing it as "wake-up call", the Geneva-based global trade body said growth had fallen to its slowest pace in around seven years, when the global financial crisis hit. "With expected global GDP growth of 2.2 percent in 2016, this year would mark the slowest pace of trade and output growth since the financial crisis of 2009," the trade body said in a statement. Looking ahead, the WTO said several issues, including Brexit's possible impact, had now cast a shadow and it had revised down its 2017 forecast. Trade is now expected to grow between 1.8-3.1 percent, down from the previously anticipated 3.6 percent, said the WTO, which sets the rules of global commerce. Also clouding the outlook, the WTO said, is "the possibility that growing anti-trade...

By Dorothy Nakaweesi To improve regional markets which have become bigger consumers of Uganda's exports, government has hatched a plan to construct border export zones. The border export zones will act as one-stop-markets where traders from neighbouring countries will pick the goods without going through a lot of bureaucracy. The Common Market for Eastern and Southern Africa (Comesa) and Uganda Export Promotions Board will oversee the construction of the border export zones. The Comesa support will be channeled through the Regional Integration Support Mechanism (RISM) - a European Union Development Fund that supports member states to implement regional integration programmes. Speaking at the ministry of Trade offices in Kampala during the opening of the steering committee meeting recently, Comesa Secretary General Sindiso Ngwenya, said: "Border export zones will result in reduced cost of doing business." Mr Ngwenya added: "This project has very high potential to generate increased revenue for the country and the region." However, he said there is need for the project to find other means of sustaining itself when the RISM funding ends in December this year. Comesa has so far approved €3.9 million (Shs14.5 billion) for Uganda. In his submission, Mr Elly Twineyo, Uepb executive director, said: "At least 60 per cent of Uganda's exports go to the regional markets Comesa inclusive. Most of the people who trade are small and medium enterprises (SMEs), a fact we cannot afford to ignore." He said once the border export zones are implemented, they will serve as a one-stop shop...

From left: Kenya Ports Authority IT manager Fatma Nabhany, Trademark East Africa CEO Frank Matsaert and Shippers Council of Eastern Africa CEO Gilbert Langat at the launch of the East Africa 2015 Logistics performance survey in Nairobi last November. PHOTO | DIANA NGILA  Shippers are digging in for a fresh showdown with the Mombasa county government in its bid to push through an array of taxes on shipping lines rejected by industry players last year. Through its Finance Bill 2016/17 currently undergoing public participation phase, the county has been lobbying industry players to accept its plan to collect Sh5,000 ($50) per 20-foot container and Sh9,000 ($90) for a 40-foot container as part of transport infrastructure development levies. The county also intends to impose a penalty of Sh50,000 ($500) on shipping lines that fail to pay the levy. Yesterday, Shippers Council of Eastern Africa (SCEA) chief executive Gilbert Langat said the proposed levy amounts to double taxation as shipping lines already pay taxes to the national government through the Kenya Revenue Authority. He said the levy would also increase the cost of doing business at the Mombasa port. “Last year, we rejected the levy as it was unjustifiable. We wonder why the county government has yet again factored the charges in the Finance Bill for 2016/2017,” he said. Mr Langat said the county could not impose the container charges simply because the port is in Mombasa, adding that the facility was a national asset. The proposed levy, he said, would make...

Managers of the Ghana International Bank have disclosed that the bank will soon commence operations in East African countries such as Rwanda, Tanzania, and  Zambia to help improve Ghana’s trade finance. According to the managers, the bank currently holds an asset of 400 million British pounds on the African continent. Speaking to Citi Business News at the sidelines of an International Trade Finance Programme, the Executive Director of the bank, Mark Arthur stated that the primary aim of the bank is to deepen financial relationship with other countries to help improve Ghana’s trade budget. “In Eastern Africa we are focusing on Kenya and certain African neighbors like Rwanda, Tanzania, Zambia and so on. This is relatively new markets that we are entering,” he said. He stated that the bank is still developing and deepening relationships with other African countries to promote trade. He pointed that, in Nigeria the bank decided to operate in the secondary market to maximize its output. Touching on the four-day programme organized by the bank, Mr. Arthur stated that about 40 bankers and senior business executives will attend this year’s programme, which is the sixth. “We are excited about the next four days, we will cover the full range of trade finance products, recent issues in international trade finance, risk assessment, money laundering and fraud as well as practical problem solving,” he said. Presenting his opening remarks, an Advisor to the Governor of the central bank Mr. Franklin Belnye said “banks play a key role in...

AMMAN — His Majesty King Abdullah on Monday met with Kenyan President Uhuru Kenyatta in Nairobi over means to enhance bilateral relations and the latest regional and international developments, with focus on efforts to fight terrorism. His Majesty stressed Jordan's keenness to establish ties with Kenya in various fields, mainly at the political, economic, investment, commercial, pharmaceutical industries and medical tourism levels. Talks tackled the Kingdom's intention to open an embassy in Nairobi, a step that would take ties between Jordan and Kenya to the next level, according to a Royal Court statement. King Abdullah underlined Jordan’s economic advantages and its geographical location that makes it a link between the region and Africa. In this context, the two leaders discussed prospects of increasing commercial activity between Aqaba and Mombasa ports.  His Majesty King Abdullah is received by Kenyan President Uhuru Kenyatta in Nairobi on Monday (Photo courtesy of Royal Court) The King and Kenyatta agreed to sign commercial agreements between Amman and Nairobi, prior to holding the Jordanian week, a trade show, in Kenya in December. In this regard, they highlighted the importance of the planned show in acquainting Kenyan and other African businesspeople with the Kingdom’s industries and products, and as a venue to forge partnerships and conclude agreements between the private sectors in both countries. As for regional developments, the Monarch called for enhancing joint cooperation and coordination, as well as sustaining consultations related to top priority issues, especially terrorism that threatens the security and stability of the...

An NCPB store: NCPB has since opened its stores with the government agency offering Sh2,300 per bag while middlemen are buying at Sh1,800 dealing a blow to maize farmers in the North Rift region. PHOTO | FILE  IN SUMMARY Maize farmers in the North Rift region have been experiencing perennial difficulties in selling the crop due to lack of market with NCPB being the main buyer of the produce. Kenya will not stop maize imports from Uganda as the two countries have signed East African trade protocol, Agriculture Cabinet Secretary Willy Bett has said. According to Mr Bett business between Kenya and Uganda will move seamlessly so long as the goods meet required standard. “We are not supposed to stop maize from coming in we are a bloc, we are East African Community and we have signed protocol. We challenge our farmers to be more competitive in crops production in order to remain relevant in the market,” said Mr Bett. He added:  “But we really find that the crops from Uganda are more competitive than ours and this should challenge our farmers to be more competitive.” Mr Bett who was speaking on Friday during the official opening of agri-business trade fair at the University of Eldoret disclosed that a team has been setup to carryout survey on maize pricing which will be profitable to farmers. National Cereals and Produce Board (NCPB) has since opened its stores with the government agency offering Sh2,300 per bag while middlemen are buying at Sh1,800...