Kenya and Rwanda have signed the Economic Partnership Agreement (EPA) with the European Union even as two of its EAC partners say the deal does not auger well for the region's economies. The move, which comes hardly four months after the East African Community Council of Ministers agreed to have the member states sign the trade deal, is seen to likely cajole other EAC countries beat the September 30 deadline. Being a single customs territory, however, the other EAC members – Tanzania, Uganda, Burundi and South Sudan must also sign the pact to make it enforceable. Rwanda's Ambassador to Belgium Olivier Nduhungirehe posted pictures of Rwandan Trade minister Francois Kanimba and his Kenyan counterpart Adan Mohamed signing the agreements in Brussels Thursday on his Twitter account. "#Kenya & #Rwanda, who signed the #EPA with the EU this morning, are the first partner states to sign," he said in the tweet. The EPA is intended to guarantee the EAC traders duty-and-quota free access to the EU market in exchange for a gradual opening of up to 80 per cent of the region’s market to European products. 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. READ: Dar dodges EPA to protect industrialisation, budget ALSO READ: How Museveni put the brakes on EA trade deal with Europe Kenya’s Industrialisation minister...

The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment—particularly in resource-rich countries. Get the magazine, the app and full web access from $1 a week New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15 percent of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17 percent in South and Central America, and 62 percent in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive economic integration In June, African leaders signed the Tripartite Free Trade Area agreement. This...

Tanzania Ports Authority (TPA) and Tanzania Zambia Railway Authority (TAZARA) have vowed to work together closely in a bid to enhance efficiency and offer cost effective services to customers. During their meeting which was held in Dar es Salaam recently, the Chiefs of the two authorities, Eng Deusdedit Kakoko of TPA and Eng Bruno Ching'andu of TAZARA agreed to have regular consultative meetings focusing on information sharing and strategising on efficient cargo handling. "We call upon all stakeholders to offer seamless transport services in order to reduce transport costs and transit times for assured business on the Dar es Salaam Corridor Route," Eng Kakoko said during the meeting. The meeting was also attended by Chief Executive Officer (CEO) of MOFED, the Zambian Government owned clearing firm, Mr. David Chimfwembe. About 99.7percent of all cargo from the port of Dar es Salaam is transported by road compared to 0.3 percent transported by rail which is not very economical. Transit traffic at Dar es Salaam port accounts for 34% of the total throughput and Zambia is the first transit customer whose traffic cargo has been growing from 1,830,005.00 in 2014 to 1,903,979.00 in 2015. Eng Ching'wandu noted that it is in the interest and vision of both parties to see cargo from the port transported via a vibrant railway network. "The vision calls for closer cooperation between all stakeholders in the transport chain," he said Source: Tanzania

It is too early to be certain, but this may be the first sign of African countries using Brexit to renegotiate and leverage fairer trade terms. The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment – particularly in resource-rich countries. New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15% of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17% in South and Central America, and 62% in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive...

In this special report, Dr. Einir Young and  Jalia Nabukalu Packwood of Bangor University, take a look at the market challenges and development issues facing used clothing exports and East Africa. The Textiles Recycling Conference in London will hear more about this market (see the conference website for more details). In March 2016, the heads of state of the East African Community (EAC) agreed to phase out the importation of used textiles and leather products from third countries within three years (by 2019), with the view of promoting vertical integration of the industries in the textile and leather sector within the EAC. When looking at this decision from the outside, one has to wonder why the EAC leaders came to such a conclusion given that almost 80% of the population of some EAC countries such as Uganda purchase used clothes and the trade employs thousands of people who would otherwise be without work. It isn’t clear how it will be possible to grow the new textile and leather industry in the EAC as the appropriate infrastructure to support the sector’s growth is limited. This directive and previous EAC policies aimed at stopping the trade in used textiles is not good news for the UK textile recycling sector or that of Europe, America and other exporting countries. UK charities, textile sorters, processors and traders have been affected as a result of a reduction in demand and falling prices per bale.  This in turn threatens the progress made in the UK and...

By Jean d'Amour Mugabo Amb. Michael Ryan, the head of European Union Delegation to Rwanda has commended Rwanda's commitment to sign the Economic Partnership Agreement (EPA) between the EU and East African Community member states. "I am very much encouraged by the approach of Rwanda. The approach of Trade Minister Francois Kanimba is very much in favour of the EPA and we would see no EAC country lose the ratification of the EPA with EU," , Amb. Ryan told journalists yesterday after his visit to Speaker Donatille Mukabalisa at the Parliament buildings in Kigali. Rwanda and Kenya are still committed to sign the deal while Tanzania and Uganda decided to delay the signing because of the Britain's vote (Brexit) to leave the EU bloc in the referendum of June 23. The EPA signing was expected on July 18 but was postponed until October 1st because the EAC states are divided on whether the deal will benefit the infant local manufactures or will see the big European investors dominate the EAC market. However, Minister Kanimba warned of the possible cracks in the region if the deal is not signed and urged the EAC politicians to consider the region's collective gains ahead of individual state's interests and sign the EU-EAC deal, according to The East African. Amb. Ryan said Brexit is an issue which is preoccupying for the European Union but Britain still a member of the EU as it has not yet triggered article 50 (of the EU charter). "I think...

East Africa is set to be the fastest growing region in Africa this year after posting a regional growth rate of 6.7 percent, prompted by the sharp rise is cement use. Throughout the region, the use of cement has been on the rise as construction sites crop up. Kenya National Bureau of Statistics (KNBS) data shows the consumption of cement in Kenya reached 5.23 million metric tonnes in November 2015, slightly higher than the 5.19 million metric tonnes registered in 2014. The data show construction sector grew by 11.3 per cent in the first quarter of 2015 compared to a growth of 7.6 per cent in a similar period in 2014. The construction sector is estimated to have expanded by 14.1 per cent between July to September compared to a growth of 8.8 per cent in the same period of 2014. The growth was on account of increased public infrastructure projects and private sector development in the real estate sector. In Uganda, cement consumption is expected to increase by at least 12% over the next 3 years. Tanzania has made great strides in improving its infrastructure with the cement industry being a key beneficiary of the building boom. The East African governments are now focused on infrastructural delivery and ways to close the most important infrastructure gaps in planning for new cities. Both the transport and power sectors have critical infrastructure needs in the region and ICT infrastructure is another growing sector now considered key to development. Africa has the...

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...