By Sam Okwakol Trade in professional and education and health services features high on the agenda of policy makers and regional organizations in Sub-Saharan Africa, but a host of roadblocks are in the way preventing this from happening. For example, according to 'The Unexplored Potential of Trade in Services in Africa' a report commissioned by the World Bank, all five East African Community (EAC) countries have committed to removing the most explicit barriers to trade in education and health services as part of the 2010 EAC Common Market Protocol. Several EAC countries have placed professional services at the top of the list to be integrated in the EAC Common Market. But despite progress in recent years, most regional services markets remain fragmented by restrictive policies, such as nationality requirements, and regulatory heterogeneity (these are non-tariff barriers that originate from national regulations), for licensing, qualification, and educational requirements. Critics say the central issue is 'protecting one's turf'. Lawyers, accountants, doctors and the other professionals do not want nationals from neighbouring EAC member states upsetting their cosy relationships. Consequently, several barriers, beyond perhaps a lengthy accreditation process, are then put in place to frustrate allcomers. Despite strong demand for services provided by foreign suppliers, undertaking trade is not easy. Multiple barriers are placed on the physical movement of service suppliers, including high-priced visas, difficulties obtaining work permits, and elusive residence status. To circumvent such barriers, most services providers form networks. For instance, Tanzanian Maasai hair stylists organize themselves to avoid these restrictions...

EAC countries have been advised to build the capacity of Agro processing industries in respective countries, so that they can be able to cope with emerging issues of climate change. Effects of climate change on the industry include reduced raw materials due to either prolonged dry spell or flooding which all lead to food losses among others. The call was made by the minister of state for Industry in the ministry of trade, Michael Werikhe Kafabusa while officiating at the first PACT EAC regional meeting at Silver Springs Hotel recently. It was organized by SEATINI Uganda and CUTS International. The project Promoting Agriculture climate Trade (PACT) linkages in East Africa Phase2 builds capacities of East Africans for climate change awareness, trade driven, and foods security enhancing agro processing in the region. Werikhe said that Agro industrial development presents substantial prospects for the region generating economic growth, new sources of food and income leading to poverty reduction. "It is therefore important to support them through capacity building so that they are aware of the realities of climate change in their works and prepare them so that they can remain productive in the face of effects of climate change," said Werikhe. According to the minister, the first phase of the PACT EAC project have already influenced Uganda Policy, notably the National Trade Sector Development plan which has a linkage between climate change to food security. He told participants to identify key agro processing sectors so as to ably advocate for them with...

Arusha — The East African Legislative Assembly (Eala) has passed a resolution to make Kiswahili an official language of the East African Community alongside English. The resolution sailed through after hours of heated debate at a special session held here on Thursday evening during which, the lawmakers underscored the need to elevate Kiswahili as one of the official languages of EAC from the current status of lingua franca. The motion to recognise Kiswahili as one of the official languages of the Community was tabled by three legislators being Mr Abdullah Mwinyi and Ms Shy-Rose Bhanji, both from Tanzania and Mr Abubakar Zein from Kenya. "It is our conviction that the Heads of State of EAC will endorse this motion to enable amendment of the EAC Treaty which has only English as the official language," said Ms Bhanji when she moved the motion before the House before it adjourned for the weekend recess. Pressure is mounting and intensive lobbying is already underway to have the issue brought up before the Extra-ordinary Summit of the regional leaders slated for Dar es Salaam early next month. After a heated debate in the House the legislators eventually agreed that the move to legalise Kiswahili as one of the official languages was long overdue and for it to be realised, the EAC Treaty has to be amended. The outspoken legislator said Kiswahili played a big role in uniting the people of EA from the pre-independence days and that, even the colonial administrators did not lose...

Kenya has sent a delegation to the European Union for talks, to shield the country from heavy taxes on its exports, as closing the Economic Partnership Agreement by October appears unlikely. This follows failure by its neighbours –Tanzania, Burundi, Uganda and Rwanda to ink the EPA deal on time , to pave way for its ratification by the European Commission on October 1. Industrialisation Cabinet secretary Adan Mohamed and Principal secretary Chris Kiptoo are leading the trade delegation including the private sector, on four days of talks in Brussels, Belgium, the Star learnt yesterday. The delegation aims to push for a bilateral trade deal with the EU. It is not clear whether Kenya wants to go it alone or seek an extension of the deadline, but an official familiar with the talks said Kenya wants to secure preferential market access even after the October deadline. PS Kiptoo, however, indicated that Kenya is still willing to sign the pact with EAC member states. “We want to go together (EAC member states). So we are trying to hurry it up,” Kitoo told the Star on phone from Brussels. “It will be inappropriate to give you details as at now. We will give details after the meeting.” The signing of the EPA by the East Africa Community was set for July 18, during the United Nations Conference on Trade and Development forum in Nairobi. Tanzania, however, declined to sign. It was followed by Uganda where president Yoweri Museveni said the agreement needed consensus...

Trade Cabinet Secretary Adan Mohamed is in Brussels to lobby for Kenya to continue accessing European Union (EU) market duty-free. The Market Access Regulation (MAR) will expire on October 1, 2016, meaning that Kenya risks exporting to the bloc at a higher cost. "This development poses a great risk to Kenya," said Mr Mohamed. He said the issue of renewing the preferential trade terms needs to be addressed before the deadline date set by the EU. The East African Community (EAC) member states are required to sign and ratify the new Economic Partnership Agreement (EPA) to continue accessing the EU market on duty free quota basis. Accompanying CS Mohamed (pictured) is Trade Principal Secretaries Chris Kiptoo, Betty Maina of East African Community and other senior government officials. The development comes in the wake of failed diplomatic efforts by EAC to resolve issues that have stalled the signing of the pact. READ MORE Too much ado about conferences TICAD a huge success for Kenya's economy How police secured Nairobi during TICAD summit. The agreement has been ready for signing after undergoing translation into the EU official languages and Kiswahili. However other regional partners developed cold shoulders, with Tanzania particularly distancing itself from it. The signing of the EPA was scheduled to happen on July 18, 2016, in Nairobi during the United Nations Conference on Trade and Development. However, this failed to materialise with some EAC partners requesting not to sign then. Having re-based its economy, Kenya is the only country in EAC that...

Rwanda’s informal cross border exports continue to surge by 28.3 percent in the first half of 2016, despite trade hiccups since the beginning of 2016 before climaxing in July with Burundi closing its trade borders. Central bank of Rwanda indicates in its half year results that the country’s informal cross border  export receipts which accounts  for  24.6% of  its total  exports amounted to U$ 66.2 million in the first half of 2016 from U$ 51.6 million in the same period of 2015. Informal trade captures trade between borders that is normally done by communities around borders and may not be recorded among the country’s main trade statistics but is the trade driver along the borders. Over 75 percent of this trade is done by women. Democratic Republic of Congo accounts for 65.8% of Rwanda’s total informal cross border exports, while Uganda accounted for 26.9% and Tanzania, 7.3 percent. Informal trade with Burundi is lagging behind with 0.03 percent. The positive outlook in total informal export receipts John Rwangombwa, Governor of Central Bank says “is due to the high exportation of livestock as well as mobile phones to Uganda,” with Uganda taking over from Burundi. In July this year, second vice president of Burundi, Joseph Butore warned that any local leader or police officer who will endorse export to Rwanda “will have problems”. While this declaration was just a public announcement, Rwandan communities neighboring with Burundi told KT Press that trade with Burundi; the smallest economy in the region has been...

President Uhuru Kenyatta and Japan's Prime Minister Shinzo Abe witness the signing of agreements between Kenya and Japan at State House, Nairobi. /PSCU   A total of 73 Memorandums of Understanding were signed during the 6 th TICAD conference that came to a close on Sunday in an unprecedented move to boost trade between the African continent and Japan. This follows closely the Asian economic giant’s pledge to commit three trillion shillings in public and private support for infrastructure development, education and healthcare expansion in Africa. The package would be spread over three years from this year and include one trillion shillings for infrastructure projects, to be executed through cooperation with the African Development Bank. Another two trillion shillings would be injected by private investors, and included some of the MOUs signed on Sunday. The three trillion is in addition to the 3.2 trillion that Japan pledged to Africa over a five-year period at the last TICAD meeting in 2013. Japan Prime Minister Shinzo Abe said 67 per cent of the previous funds that his country had pledged to Africa had already been put to use in various projects. Under the MOU signed Sunday, the funds will focus on infrastructure, education, health, agriculture, ICT and mining among other sectors. The funding is in addition to measures taken by Japanese businesses as well as the governments of Japan and African countries and relevant organizations, to promote Japanese business activities in Africa. The 73 MOU’s involve 22 Japanese companies and universities with...

The EALA lawmakers said dissolution of key units at the EAC secretariat had interrupted the critical projects on climate change mitigation, and they wanted it revived. climate changeShy-Rose Bhanji, an EALA member from Tanzania, said without climate change programs, the region’s environment, including flora and fauna, would be at risk. “Let us take an example of Mount Kilimanjaro whose ice is diminishing at the moment due to the impacts of climate change. A day may come when the mountain has no ice or water. There is a dire need to re-establish the unit,” said Bhanji. Abubakar Zein, an EALA member from Kenya, said revival of the EAC climate change program should go hand in hand with the creation of a budget line for it. Dora Byamukama from Uganda said: “We should move beyond mitigation to include adaptation, which requires us to look at green housing, irrigation and planting of seeds among others.” Enditem Source: News Ghana

Recently I was in an argument with some friends who insisted that since such an influential country like  Britain is abandoning the European Union, why bother with the East African Community? It is sometimes forgetten that long before the EU, the former East African Common Services arrangement was working out quite will until nationalisitc politics set in. Imagine where we would be after 50 years! With all due respect to the British decision, it does not mean economic integration cannot work. One only has to see what this region hwas achieved during the past 17 years. Even better, East Africans  should look further afield across Africa and see how the rest are faring. The EAC has many problems, which eventually we will solve, but the point is that regional integration has boosted the profile of our part of Africa. International multilateral bodies talks about the EAC with some respect. Many are willing to lend a heling hand, in terms of financial and technical know-how to make sure we have the best chances of suceeding. Without a doubt, Brexit was a blow to the concept of integration, but in my opinion, being on an island with a long history, the British never really got used to having to kowtow to ‘faceless’ beings in Brussels. Source: Business Week

BRAIDS: Tanzanian Maasai hair stylists organise themselves to avoid these restrictions and provide services informally abroad beyond the EAC.   Trade in professional and education and health services features high on the agenda of policy makers and regional organizations in Sub-Saharan Africa, but a host of roadblocks are in the way preventing this from happening. For example, according to ‘The Unexplored Potential of Trade in Services in Africa’ a report commissioned by the World Bank, all five East African Community (EAC) countries have committed to removing the most explicit barriers to trade in education and health services as part of the 2010 EAC Common Market Protocol. Several EAC countries have placed professional services at the top of the list to be integrated in the EAC Common Market. But despite progress in recent years, most regional services markets remain fragmented by restrictive policies, such as nationality requirements, and regulatory heterogeneity (these are non-tariff barriers that originate from national regulations), for licensing, qualification, and educational requirements. Critics say the central issue is ‘protecting one’s turf’. Lawyers, accountants, doctors and the other professionals do not want nationals from neighbouring EAC member states upsetting their cosy relationships. Consequently, several barriers, beyond perhaps a lengthy accreditation process, are then put in place to frustrate allcomers. Despite strong demand for services provided by foreign suppliers, undertaking trade is not easy. Multiple barriers are placed on the physical movement of service suppliers, including high-priced visas, difficulties obtaining work permits, and elusive residence status. To circumvent such barriers,...