A second hand ban for leather and apparel products in East Africa could come in place, according to The East African Community Secretariat. The East African Community Secretariat is planning to facilitate for the phasing-out of second-hand leather and apparels products, in line with a directive of the last EAC heads of state summit. The 17th Ordinary Summit of the EAC heads of state directed partner states to procure their textile and footwear requirements where quality and supply are competitively available. The view is to phase out importation of used textiles and footwear within three years. As the region seeks to promote industries in the textile and leather sector, it is important to gauge the preparation by the industry to fill the gap left by the ban. The industry may need support measures and incentives to expand investment in order to meet the sudden rise in demand for products. Governments in Africa may need to rethink and re-strategise on a more viable means of promoting the textile industry in the region even as it plans to phase out second-hand clothes. The ban will be unpopular with East Africans as many second hand clothes are costly and poorer quality, and inevitably, the poorest will suffer. The industry also employs thousands, directly and indirectly, so it could plunge many into poverty. Many factors have adversely affected the sector, including liberalisation of the economy in the 1990s. The influx of textiles into the region became a major problem, with the average capacity of utilisation...

Strife torn South Sudan has received membership in the East Africa Community. South Sudan became a new member with full and equal rights, obligations and privileges after depositing the instrument of ratification on the Accession to the Treaty for the Establishment of the East African Community. The ceremony took place on Monday at the EAC headquarters in Arusha, Tanzania. Secretary general Liberat Mfumukeko received the document that saw South Sudan join the regional block that consists of Kenya, Uganda, Tanzania, Rwanda and Burundi. “I would, therefore, like to seize this opportunity to commend President Salva Kiir, the government and the entire people of the Republic of South Sudan for their tireless efforts and commitment that enabled them to achieve this important milestone," Mfumukeko said. He said the Secretariat will seek guidance from the Council of Ministers on the development of a detailed roadmap to integrate South Sudan into ongoing EAC projects and programmes. “We shall be informing the Leardership in Juba of every step we shall be taking in this regard,” he said. On his part, the Presidential Envoy of of South Sudan, Aggrey Sabuni said membership in EAC for South Sudan will change the nation. “The EAC integration process is important for South Sudan. Currently, the EAC is the most advanced regional bloc on the African Continent,” he said. He noted that South Sudan’s membership in the EAC is likely to provide concrete benefits to the country and the region as a whole. “Deep regional integration programmes that South...

KIGALI, Sept. 5 (Xinhua) -- African government and business leaders have called for increased private investments in Africa in order to boost economic growth on the continent. They made the call on Monday at the opening of Global African Investment Summit (TGIAS) in Rwanda's capital Kigali. Rwanda hosts the high-level investment forum from Sept. 5 to 6, aimed at delivering international trade and investment to Africa's most dynamic region. "Africa is ripe for investments in several sectors of the economy. There are lots of untapped business prospects for both local and foreign investors. Increased private investments will explore these investment opportunities and help accelerate growth," said Uganda President Yoweri Kaguta Museveni. He added that Africa has realized the importance of private capital in expanding and growing the mining sector on the continent, given its mineral endowment. "Private investments bring the required capital and essential skills that sustain the growth of economic sectors. Without the mobilization of private capital specifically to fund the mining and infrastructure sectors on the continent, such economic development would not have been possible, at least at the rate at which it occurred," Museveni said. The summit organized by the Common Market for Eastern and Southern Africa (COMESA) and the government of Rwanda has attracted about 1,000 delegates, including some African heads of state and government, ministers and private sector businesses leaders. The two-day meeting is held under the theme "Transforming African Economies for Global Competitiveness" and will cover sectors including infrastructure, power, agribusiness, fast-moving consumer goods...

Kenya is set to gazette seed harmonization regulations before the end of the year to allow and ensure smooth flow of seed from one country to another. Speaking on behalf of the Permanent Secretary Ministry of Agriculture, Livestock and Fisheries, Policy Research and Regulations Director, Ann Onyango, says the harmonization will allow farmers to access improved seed variety and increase food production and security Kenya is among the 19 Common Market for Eastern and Southern Africa (COMESA) member states with more than 80 registered seed companies producing more than 44,000 tones yearly and it was gazetted by COMESA in 2014. The Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) CEO, Argent Chuula, says harmonizing seed trade rules and regulations within the Common Market for Eastern and Southern Africa (COMESA) regions will eliminates barriers to seed trade in the region. It is expected that if the COMESA member state agree to harmonize seed trade rules and regulations, it will result in removing trade barriers to free-flow of seed among member states. Over 500 million people living in COMESA member states depend on crops among them beans, maize, rice, groundnuts cotton, wheat, cassava, potatoes, sunflower, sorghum, soya beans and millet. Speaking during the opening of the second COM-SHIP Implementation Progress Review Meeting of COMESA Seed Harmonization Programme, Chuula said the objectives of the harmonization include streamlining the roles and responsibilities of national seed authorities and seed certification standards for field inspection and laboratory services. “We want to ensure free movement...

Uganda has reversed its decision to delay the signing of the Economic Partnership Agreement (EPA) with the European Union. Trade minister Amelia Kyambadde said the government has since made up its mind and was ready to sign the deal irrespective of whether all the other regional countries are on board or not. On Thursday, Kenya and Rwanda Trade ministers signed the EPA pact in Brussels, Belgium, with the European Union, a deal the East African Community Council of Ministers had recommended earlier this year. Kenya was desperate to have the agreement signed to safeguard unlimited duty free access of its exports to Europe after Tanzania and Uganda said the deal initialled in October 2014 needed to be renegotiated following Britain’s exit from the bloc. Speaking at the sidelines of the 7th Ministry of Trade, Industry and Cooperatives sector review annual conference in Kampala on Tuesday, Ms Kyambadde said “The EU is our major trading bloc and we are going ahead to sign the EPAs.” READ: How Museveni put the brakes on EA trade deal with Europe Burundi has also shown strong desire to sign the agreement in its current form, leaving Tanzania in its effort to seek further reassurance regarding the matter. Tanzania’s refusal to sign the EPAs is due to fear of repercussions the deal would have on the growth of the emerging regional industries. Without guarantees against the side effects, Tanzania says it is not prepared to commit itself into economic enslavement. READ: Dar dodges EPA to protect...

Parliament might be recalled from recess to ratify a trade pact with European Union (EU) after Kenya was given 30 days on Wednesday to approve the signed deal as a condition for accessing the duty free market in Europe. The move implies that the fate of Kenya in enjoying duty free market access lies with MPs. Parliament broke for recess on Thursday and is expected to resume on October 3 after a one month break. After ratification by the Kenyan Parliament, the EU will make a decision that might see the country’s horticultural produce continue to enjoy duty free access to Europe for a period that the EU has not specified. This is as Kenya works to convince other states in the region to sign the pact, if they would not have endorsed it by then. Trade Principal Secretary Chris Kiptoo showed theSunday Nation a letter that he has written to Parliament requesting them to sign and ratify the Economic Partnership Agreement (EPA) before the end of the 30 day deadline. “I have talked to speakers of both houses on the matter and we are still waiting for the response,” said Dr Kiptoo. Kenya’s duty free market access to Europe comes to an end on September 30 and the government has been exploring a number of options not to be locked out after some members of the East African Community (EAC) showed reluctance in signing the deal, which is a prerequisite. For a deal to be reached, all the EAC...

By Ivan R. Mugisha The proposed Tripartite Free Trade Area between the East African Community, Comesa and Southern African Development Community could potentially eliminate intra-regional trade bottlenecks and boost exports among member states by at least 30 per cent. According to the EAC Secretariat, trade between the EAC and the Common Market for East and Central Africa in 2014 amounted to $2.7 billion while flows between the EAC and SADC stood at $3 billion. The United Nations Economic Commission for Africa (Uneca) projects that the gains could even be bigger if non-tariff barriers between the three sub-Saharan Africa blocs are eliminated when the tripartite arrangement comes into force. The Tripartite Free Trade Area was proposed in Kampala in October 2008, during a heads of state summit. The deal involves 26 countries with a total GDP of $1.2 trillion and a population of over 638 million people. "Our estimates suggest that the TFTA could increase intra-regional trade by as much as 30 per cent. The manufacturing sector will benefit most, giving the needed boost to industrialisation," said Andrew Mold, officer in charge of the sub-regional office for Eastern Africa at Uneca in Kigali. In two weeks, African heads of state and government are scheduled to arrive in Kigali for the Global African Investment Summit, where the progress of the TFTA will be discussed. The deal is expected to come into force after being ratified by at least two-thirds of the 26 member states. But last month, member states differed on the...

The opening of a new container terminal at the port of Mombasa is an important step that should improve efficiency at the facility and help to boost regional trade. The cost of the project — Sh30 billion — represents a significant outlay in public resources and it is essential that port managers offer taxpayers good returns on their investment. There are many significant infrastructural projects under way linked to the port, not least the expansion of the pipeline system, the construction of a new Sh27 billion container terminal in addition to the one commissioned on Saturday and perhaps, most significantly, the multi-billion-shilling Standard Gauge Railway (SGR) project. If managed wisely, these projects have the potential to offer significant economic benefits to Kenya and the region. These will only be realised if the leadership at the Kenya Ports Authority, in particular, can harness the significantly enhanced capacity at the port and the expected additional capacity that will be created by the SGR to improve efficiency. It is a requirement under the contract of the new railway that a set amount of cargo will have to be handled by the SGR, for example, and it is to be hoped that the Transport ministry and the managers at the port are working hard to prepare for the implementation of that requirement. The raw numbers are certainly impressive. The new terminal will be able to berth four ships of up to 100,000 tons — used to measure cargo capacity — at the same time,...

Kenya stands to benefit from plans by Tanzania's parliament to terminate a bilateral Single Customs Territor deal with DR Congo. The Tanzania Parliamentary Standing Committee on infrastructure development advised the government to revisit the introduction of SCT on goods transported to DR Congo. According to the committee, the SCT which started last year has reduced cargo through the Dar es Salaam port. Under the arrangement the two countries adopted a destination model of clearance of goods where assessment and revenue collection is done at the first point of entry. The system has caused importers to abandon the Dar es Salaam port and opt for ports of neighbouring countries, Tanzania-Zambia Railway Authority (Tazara) committee deputy chairman Selemani Kakoso told the parliamentary committee last Monday. Tazara targeted to transport 200,000 tonnes of cargo in 2015/16 but managed only 128,105 tonnes, it said. KPA principal communication officer Hajj Masemo said Kenya is way ahead of the port of Dar es Salaam on effectiveness which has attracted regional players. “We are doing a lot of efficiency compared to Tanzania,” Hajj told the Star. In April, the Tanzania business community reported rising use of the Port of Mombasa, citing bureaucracies at Dar-es-Salaam port. The Kenya International Freight and Warehousing Association confirmed increased clearing of cargo destined for Tanzania. “The new systems in place have made importing through Mombasa faster and better,” Kifwa Mombasa region chairman Eric Gitonga said. The port of Mombasa is also riding on low transport costs along the Northern Corridor. The East...

Attention shifts to President John Magufuli as Kenya leads its integration partners to Arusha in a last-ditch effort to safeguard its free trade arrangement with Europe, amid stiff opposition from Tanzania. The East African Community’s extra-ordinary heads of state summit follows a surprise move by Tanzania to pull out of an earlier commitment that would see the bloc collectively sign Economic Partnership Agreements (EPAs) with Europe before the September 30 deadline. Kenya and Rwanda signed the pact in Brussels last week while Uganda said it would append its signature on Thursday during the Extra Ordinary Summit of the EAC heads of state. That technically leaves out only Tanzania as European Union had indicated it may not require Burundi to sign the deal yet until it resolves its internal political problem. South Sudan, the EAC’s newest member also does not need to sign the pact until it completes the two-year bloc membership assentation period. As chairman of the bloc’s heads of state summit, the decision made this week by President Magufuli will determine whether Kenya’s exports face taxes of between four and 24 per cent to enter EU market from October 1. Kenya’s Industrialisation and Enterprise Secretary Adan Mohamed who appeared before the EU Parliament’s International Trade Committee believes the bloc will not tax Kenya’s exports once it sees proof of commitment from EAC members. “The proposed summit will provide further impetus to the EPAs given the significance of the EU as a long term EAC trade and development partner,” Mr...