IN SUMMARY “Countries in this region have big infrastructure projects going on. These must in future be consistent with the EAC macroeconomic and monetary union convergence criteria,” he said. Mega infrastructure projects in East Africa may stop once the monetary union is put in place seven years from now to avoid breaching the regional fiscal deficit and debt policies. East African Community (EAC) countries will be forced to stick to the three per cent maximum fiscal deficit as opposed to the current situation where Kenya is at 9.4 per cent deficit — largely due to the construction of the standard gauge railway (SGR). Bank of Uganda (BoU) deputy governor Louis Kasekende said countries in the region would have to ensure their infrastructure or other spending ambitions are in line with the fiscal deficit ceiling set under the monetary convergence criteria. “Countries in this region have big infrastructure projects going on. These must in future be consistent with the EAC macroeconomic and monetary union convergence criteria,” he said. The BoU deputy governor was speaking during a symposium called by the Central Bank of Kenya (CBK) as part of its celebration of 50 years since it was set up. In Kenya’s case the fiscal deficit has been hovering around 8-11 per cent in the past few years, though it is projected to come down in the coming years. READ: EAC's mounting debt, a recipe for regional crisis The fall in the deficit is associated with the conclusion of the SGR. Kenya borrowed...

After a week of the Kenya trade, investment and cultural exhibition on “Tempête” ground in Bujumbura the capital, tradespeople who participated in the exposition said it was beneficial to them. September 11 was the last day of the Kenya trade fair. Customers rushed to visit as many stands as possible while exhibitors called each guest passing by. “It is the last day, we try to attract as many clients as possible, maybe today, we should sell more than yesterday”, says Annick Kabatesi, manager of “Murundikazi fashion”, selling traditional clothes made of trees. She goes on to say that comparably to the past days, this trade fair presented an added value as people got to know her products. She says she has made many contacts and hopes they will come back to see what she does. “Normally, my products are bought by foreign tourists or high officials, but thanks to this exposition, I think my customers will increase in number.” For André Masumbuko from the association of Artists and vendors of decorative art objects, the added value of this trade fair is that their work is now known by a large public and exhibitors have shared experience with others. “We are now aware of how others do to make their products; otherwise, there were not many customers”, he said. As for the Global Port Services Burundi agent, he says participants have been given more details on how the port works as an important link that contributes to the economic development for...

Trade Mark East Africa (TMA) has announced a Sh24million grant to improve participation of civil society in policy formulation at the Port of Mombasa and regional integration. The TMA yesterday signed a partnership agreement with the East African Civil Society Organisations’ Forum (EACSOF) Kenya Chapter for sensitisation with the ultimate aim of improving efficiency of the port. The EACSOF is an autonomous umbrella body for civil society organisations in Kenya with a mission to drive people-centered cooperation and integration in East Africa. Under the agreement, the civil society’s role will be to ensure that the communities are informed of the operations, opportunities and benefits of the port to their overall well-being. Further, they are expected to contribute towards creating openness and transparency at the port in to minimise disruptions and suspicions among neighbouring communities around the port. Speaking during the signing ceremony the TMA chief executive Frank Matsaert said the deliberate efforts will contribute to enhanced productivity of the port. “The process will enable a win-win situation for both the port and the local communities,” he said. The project will be implemented for a period of two years and is expected to see the port management incorporate suggestions by the community as priority into the port plans. The partnership was initiated on realisation that opportunities provided by Consultative Dialogue Framework (CDF) managed to drive minimal participation across the region. The dismal participation by CSOs in the CDF process has majorly been linked to weak capacity of the coordinating institutions. A...

Plans are underway along the East African coast to expand existing maritime terminals and to develop new terminals, in particular along the Kenyan and Tanzanian coasts. Infrastructure developments including dredging operations and rail links, could make a significant difference to the economic outcomes. While development of a new terminal located to the northeast of Mombasa at Lamu is underway, the recently elected new Tanzanian Government has opted to curtail expenditures involved in developing a new port to the northeast of Dar es Salaam and has chosen to increase the size of the existing port. Dredging is underway at the Port of Maputo in Mozambique from 11 meter (36 foot) keel depth to 14.2 meter (46.6 foot) keel depth. Port of Maputo The container terminal quay at Maputo is allocated a berth/quay of 300 meter (984 feet) in length and dredging would allow a vessel such as the 337 meter (1,106 foot), 9,200 TEU container ship MSC Pamela that sails with 12.8 meter (42 foot) draft and 46 meter (151 foot) beam to call at Port of Maputo. In the future, port authorities may need to explore allocating additional berth/quay length to the container terminal. Railway lines connect Maputo to Pretoria and Johannesburg in South Africa as well as Lusaka in Zambia and Harare in Zimbabwe. The Maputo – Johannesburg railway distance is almost identical to the Durban – Johannesburg railway distance. While Port of Durban is sub-Saharan Africa’s largest and busiest container port, the overland connections to the very populous...

East African nations have the most powerful passports in the continent outside South Africa, a 2016 Index by World Economic forum shows. The power of a passport is measured interms of the number of countries one can travel to visa free. Kenyans can travel to 65 countries in the world while Tanzanians can travel to 62 countries with Ugandans able to travel to 58 countries around the world without a visa. Nigerians can only travel to 44 countries in the world with Senegalese being able to travel to 56 countries, Ghana 61, and 51 for Sierra Leone. The nationals of Mauritania can travel to 54 countries. South Africans lead the continent with access to 91 destinations visa free. The strength of the passport depicts a country’s diplomatic strength and also its tourism potential. Somalis can travel to 31 countries. The 2016 ranking puts Germany and Sweden at the top of the passport league. Holders of German and Swedish passports can visit 158 countries without the need for a visa. “The least powerful passports are issued by poor countries, often mired in conflict. The people of Afghanistan can only visit 24 countries without applying for a visa,” WEF  said in the latest survey. Pakistan fares little better, with just 31 countries offering visa-free travel. The passport of the world’s newest nation, strife-torn South Sudan, only allows visa-free access to 36 countries. Source: The Exchange

By Louis Kolumbia Dar es Salaam — Tanzania will lose $865 million (Sh1.7 trillion) in revenue during the 25 years of implementing the Economic Partnership Agreement (EPA) should the East African Community sign the pact with the European Union (EU), according to opposition politician Zitto Kabwe. Referring to renowned economist Jacques Berthelot, Mr Kabwe said statistics from Eurostat and the International Trade Centre (ITC) showed that EAC would lose 3.6 billion euros in revenue as a bloc. "Losses will mainly be caused by contractual demands requiring Tanzania to scrap tax barriers by 90 per cent on non-agricultural products from the EU and by 10 per cent on agricultural products," the ACT-Wazalendo leader said in a statement. "This means that Tanzania will remain a supplier of raw material and a market to value added products from the EU." Mr Kabwe also said Tanzania would lose anticipated revenue following removal of value added tax (VAT) payable as import duty to products from the EU. Relaxing import duty barriers would lead to trade diversion whereby products from the EU will tend to remove products from foreign countries, thus denying the country revenue, he added. The Kigoma Urban MP cited Section 99.1 of the contract, saying the partners recognised challenges that would lead to revenue losses, and suggested that a solution could be sought through introduction of a compensation system. Section 100 of the contract says following revenue losses, the EU will negotiate with partner countries on taxation policy changes, cooperate in changing revenue...

In this monthly column called “The Indicator”, we take a economic or financial statistic from East Africa and break it down into bite-sized nuggets of knowledge for investors. This month’s Indicator is a sad one, dedicated to the loss of a good friend of the authors, Mohamed Mtaturu Mkonongo, and is intended to be a note of caution. 43,164 is the number of traffic accident fatalities found for the latest year studied in the East African Community countries, except for Burundi due to lack of available data. What do you mean by road traffic fatalities? Car, truck, motorcycle, and other automobile crashes on roadways that ended the life of a person are counted as road traffic fatalities. How big of an issue is road traffic for public health? The World Health Organization reports that “road traffic injuries are the leading cause of death among young people, aged 15–29 years and 90% of the world’s fatalities on the roads occur in low and middle income countries, even though these countries have approximately half of the world’s vehicles.” Weighted by population, each year EAC countries have 2.9 people die from road traffic per every 10 thousand people in the country. Which EAC country has the most and least per capita road traffic fatalities? Tanzania has the highest per capita traffic accident fatalities in the EAC at 3.2 for every 10 thousand citizens. Rwanda is close behind with 3.0 traffic deaths per 10 thousand people. Uganda has the lowest per capita rate at...

NAIROBI (HAN) September 12.2016. Public Diplomacy & Regional Security News.By DICTA ASIIMWE. The East African Community is not spending a third of the money it receives, despite the Secretariat’s complaints about underfunding. The Community has consistently complained about inadequate financing and has been pushing the Council of Ministers to come up with sustainable funding mechanisms. One of the options that was discussed by the Council of Ministers sitting in Arusha on September 5, include a hybrid of a levy and equal contribution by partner states with a commitment to increase the Community’s budget. The levy is expected to increase the Community’s financing, while the option of equal contribution is meant to retain the principles of equity, solidarity and equality as included in the Treaty. But even as the Council of Ministers considers these options, an accountability report by the EAC Audit and Risk Committee found that institutions and projects of the Community, whose budget for the 2014/15 financial year was $125.6 million, only spent $81.4 million. The report, which was discussed by East African Legislative Assembly (EALA) on September 2, found that the money spent represents just 65 per cent of what had been budgeted. Having utilised just 27 per cent of the total budget allocated, the African Peace and Security Architecture was one of the worst performing projects, despite the Community being a region with a large number of peace and security challenges. These challenges include the conflict in Burundi and the effects of conflicts in the Democratic Republic of Congo...

Migration is a priority issue all the way from Oslo to Cape Town, so the EU and Africa need to work together more effectively in order for it to be better managed in the future. Aderanti Adepoju describes how this can be done. Professor Aderanti Adepoju is the founder and coordinator of the Network of Migration Research on Africa (NOMRA). At present, over 31 million Africans are migrants who live outside the country of their birth, the majority within the African continent itself. In 2015, about 14% of arrivals in Europe were African migrants. Several migrant related events in recent years, most notably perhaps the April 2015 shipwreck that claimed the lives of 800 Africans off the coast of Italy, have significantly raised the discourse on migration to centre stage in both public and political arenas, leading to the Valletta Euro-Africa Summit in November 2015. The challenges posed by African migration are many; stretching from risks of brain drain to a lack of orderly, legal and effective labour migration. The question is therefore what the EU can do to support Africa to properly manage migration? In the study ‘Migration within and from Africa’, published today (12 September) by the Swedish Migration Studies Delegation (Delmi), I argue, among other things, that the EU should focus more on regional governance in Africa. Africa now experiences all types of migratory configurations within and outside the continent. More than half of Africans that migrate internationally do so within Africa, and only 27% go to...

State House has assured horticulture exporters of an extension on the yet to be signed trade agreement with the European Union (EU). "East African Community (EAC) has requested the EU for a temporary extension while the matter is being addressed at regional level. We expect there will be a resolution that will take this matter forward," said State House Spokesperson Manoah Esipisu. Talks to have Tanzania and Burundi sign the Economic Partnership Agreement with the EU had hit a dead end last Thursday at the East African Community Head of State Summit that was attended by Deputy President William Ruto. The countries have already requested for a three months extension. Kenyan exporters were staring at huge monthly taxes of at least Sh600 million if regional leaders fail to agree on a deal before the October 1 deadline. Kenya is the only nation that stands to lose access to Europe because it is not grouped among the Least Developed Countries and does not, therefore, benefit from the unilateral Everything But Arms protocol. "Only Kenya and Rwanda have signed. But we are looking forward to our other four neighbouring states to also sign," said Esipisu. Tanzanian President Dr John Magufuli has been reluctant to sign the deal expressing fears for his country's undeveloped industries. Burundi however, has a longstanding grudge with the EU for imposing sanctions during a previous political arrest. However, Esipisu noted that Kenyan businesses were not effectively maximizing on the African Growth and Opportunity Act (AGOA) provided by the...