Kenya's exports will be stung by EU import duties of up to 25 percent if talks are not concluded by 1 October. (Photo:Ninara) One of the main economic arguments used by Leave campaigners before the UK's referendum on EU membership in June was that the UK, freed from its EU shackles, would be able to cut its own bilateral trade deals entirely on its own terms, and much quicker than as part of the EU bloc. The UK will remain party to all EU trade agreements until it formally leaves the bloc, and cannot conduct any separate negotiations of its own. It hasn’t had to negotiate a trade deal for more than 40 years, which probably explained the Leavers’ optimism about how easy it would be. Trade negotiators are among the most world-weary of government officials. Not surprising really, when you spend years negotiating milk and cheese subsidies only to see a deal collapse when the politicians get involved. Two months after the referendum and the UK’s newly created international trade ministry is not launching any trade talks. Instead, it's embroiled in a turf war with the Foreign Office over who gets to handle economic diplomacy. Its officials don’t have their own building yet. But the UK is not the only one in limbo. October deadline A fortnight after the referendum, Tanzania and Uganda abandoned plans to sign a regional trade agreement between the East African Community (EAC) and the EU citing the political turmoil caused by the Brexit vote....

THE East African Community is reported to be in deep financial crisis as the Regional Parliament is resuming its session here this week to address the situation. The East African Legislative Assembly is embarking for its First Meeting of the Fifth Session of the Third Assembly which runs at the EALA chambers for twelve days, from this Monday, August 22, 2016 to next week’s Friday, September 2, 2016. EALA Spokesperson, Mr Bobi Odiko said here that the Assembly is to be presided over by the Speaker, Mr Daniel Kidega, with the top on the agenda during the two-week period being the debate on the Report of the Committee on Accounts on the EAC Audited Accounts for the Financial Year ended 30, June 2015. The report which examines and considers the EAC Audited accounts for the year ended 30, June 2015, arises from the audit of the EAC Organs and Institutions including 20 projects and Programmes and this in accordance with Article 134 of the Treaty for the Establishment of East African Community. “Upon completion of the audit, the EAC Council of Ministers tabled the Report of the Audit Commission to the House on 24, May 2016. The Audit Commission’s report which indicates that the overall budget performance stood at 65 per cent is set for debate at a time when the Community is facing a precarious funding situation,” said the EALA statement. The House is further expected to consider a Report of the Committee on Agriculture, Tourism and Natural Resources...

NAIROBI, Aug. 22 (Xinhua) -- Japan is expected to use the sixth Tokyo International Conference of Africa's Development slated for Nairobi, Kenya this week to boost trade relations between the nation and the continent at a time when it is trailing behind its Asian peers. According to data released Monday by the Kenya National Bureau of Statistics (KNBS), while Japan's monthly exports to Kenya average 67.4 million U.S. dollars, India ships into the East African nation goods worth 193 million dollars and China's exports stand at 233 million dollars. In the January-May period, according to the KNBS data, Japan's exports to Kenya stood at 339 million dollars. During the same period, India was recorded at 965 million dollars while China at 1.2 billion dollars, according to the government agency. Japan's top exports to Kenya consist of iron and steel products and motor vehicles. "This conference will bring both immediate and long-term benefits to both Kenya and Japan. We expect to strengthen existing bilateral relations with Japan," said Devolution Cabinet Secretary Mwangi Kiunjuri. The East African nation is also expected to push for direct flights between Tokyo and Nairobi to boost its exports to the Asian nation. Source: Xinhuanet

Rwanda seeks to widen business horizons in attempt to become more regionally competitive as the country is re-admitted to the Economic Community of Central African States (ECCAS), eight years after pulling out of the regional bloc. As founding member of ECCAS in 1983, Rwanda pulled out of the bloc in 2008 to concentrate on its membership to the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA). Last year in May, the ECCAS summit in Chad welcomed Rwanda as an ECCAS member. An agreement was signed confirming the readmission of Rwanda after its application in 2013. Speaking to reporters on Monday, Francois Kanimba, Rwanda minister of trade and industry said that Rwanda will reap big from various regional economic groupings. "Our country joining ECCAS is a big opportunity for Rwandan traders to sell their goods and services on a bigger platform across the continent. Local producers will benefit from increased market size which is an important factor facilitating innovation and competition," he added. Kanimba stated that Rwanda has gained a lot from being a member of multiple regional blocs since each bloc has comparative advantages to the other, ultimately strengthening the country's economic institutions. Last week, Rwanda foreign minister Louise Mushikiwabo, presented the instruments of ratification to Gabonese President Ali Bongo Ondimba, the current ECCAS chairperson, that will see the country officially recognized by ECCAS member states. According to Mushikiwabo, Rwanda will be in position to tap into the potential of the regional bloc in...

Burundi’s ban on food exports to Rwanda has sent prices in Kigali to a record high this year. TEA GRAPHIC | FOTOSEARCH  IN SUMMARY Agricultural and livestock products are the major commodities traded between the two neighbouring countries. Burundi largely exports fruits and vegetables, palm oil and silverfish to Rwanda. Burundi is Rwanda’s second largest cross-border market after the Democratic Republic of Congo, with the two countries accounting for more than half the total formal and informal cross-border exports. Before the political crisis broke out in Bujumbura last year — after President Pierre Nkurunziza was re-elected for a third term — Rwanda exported maize, maize flour, wheat flour, cassava flour, potatoes and milk to Burundi. Burundi’s ban on food exports to Rwanda has sent prices in Kigali to a record high this year. The two countries’ worsening diplomatic relations led to the closure at the end of July of the border by the Burundian government, which also imposed export restrictions on its neighbour, citing domestic food security concerns. As a result, food supplies are now going into Rwanda from Burundi through the black market. “The few food imports from Burundi are coming through illegal ways and are extremely expensive,” said Silas Sabiiti, a grocery trader at Kimironko food market in Kigali. “The shortage is apparent here and this is what has pushed up the prices. The demand for fruit from Burundi has always been high because of its renowned quality,” he added. Agricultural and livestock products are the major commodities...

IN SUMMARY A new report by Uganda’s Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI)—a precondition for having a single currency by 2024 — from 2015 to a yet to be announced date. The East African Community’s dream of a monetary union and a single currency may not be realised by the 2024 deadline. A new report by Uganda’s Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI)—a precondition for having a single currency by 2024 — from 2015 to a yet to be announced date. Now, without the money for the EAMI, which will evolve into the East African Central Bank, the region is taking the longer route — that of the East African Legislative Assembly. According to the East African Monetary Union roadmap, the EAMI was to be established by partner states — and not EALA. Draft Bills EAC spokesperson Richard Othieno Owora said the bloc is trying to establish EAMI through an EALA Act even though this will delay other institutions needed for EAMU to begin working. These include the East African Statistics Bureau, the East African Surveillance, Compliance and Enforcement Commission, and the East African Financial Services Commission. “So far, the draft Bills for the establishment of the EAMI, the EASB, and EASCEC have been developed and negotiated by partner states,” Mr Owora said. He...

In an ambition to nourish an effective nationwide integration within the East-African bloc, the East-African Community - Youth Ambassadors Platform-Burundi Chapter, collaboratively with the Ministry at the Office of the President in Charge of East African Community Affairs, organizes a national debate on EAC integration under the theme: "YOUTH EMBRACING THE EAC INTEGRATION". The East African Community (EAC) is the regional intergovernmental organization of the Republics of Burundi, Kenya, Uganda, Rwanda, the United Republic of Tanzania and South Soudan, with its Headquarters in Arusha, Tanzania. South Soudan joined the community early in 2016 following Burundi and Rwanda which joined EAC on 1st July 2007. The youth of East Africa are important stakeholders in the EAC processes and form substantial part of the population. Article 120 (c) of the EAC Treaty provides for adoption of a common approach for involvement of the youth in the integration process through education, training and mainstreaming youth issues into EAC policies, programs and projects as one of the strategic interventions towards the realization of a fully integrated Community. The debate is to take place at National Institute of Public Health, commonly known as INSP, respectively on august, 20th 2016 and august, 27th with a final debate to be held on September, 10th. The debate will engage young people from partaking universities (University of Burundi, Ecole Normale Supérieure, INSP, Université Lumière, Université des Grands Lacs and ISMR) in a battle of opinions with the focus on enhancing the "East-Africanity" awareness among the youth for a functional...

By Zephania Ubwani [email protected] Arusha — Prof Humphrey Moshi of the University of Dar es Salaam (UDSM) is one academician who would often argue constructively on a number of topical issues touching the country's economy and beyond with a bit of flexibility. That is why he minced no words when recently reached for comment on the Economic Partnership Agreements (EPA) which Tanzania declined to sign recently in Nairobi during a UN Conference on Development and Trade (Unctad) as had been expected alongside with some member countries of the East African Community (EAC). "This is a very pragmatic decision by government of the United Republic of Tanzania," he told The Citizen saying for a long time he had been advising not only Tanzania but all the EAC partner states not to sign the agreements for a number of reasons. "One; If we want to industrialise, then the agreements contradict our aspirations for that agenda. Two; Opening our economies to products from the European Union (EU) would kill even the small scale productive activities such as animal and chicken husbandry given that local products such as milk and eggs can hardly compete with the imported ones," he said. The economics professor went further by revisiting the colonial and post-colonial trade pattern between Africa and EU, saying it will persist by signing EPA, making Africa - and in this case the EAC - remain a perpetually source of raw materials while Europe will continue to be a source of industrial goods - for...

DR Congo President Joseph Kabila (centre) and his Rwandan counterpart Paul Kagame after holding bilateral talks at the Rwanda-DRC border in Rubavu on August 12, 2016. PHOTO | AFP By IVAN R. MUGISHA IN SUMMARY Rwanda has formally rejoined the Economic Community of Central African States (ECCAS), after Foreign Affairs Minister Louise Mushikiwabo presented the instruments of ratification to the economic bloc on August 17. Rwanda, which had been a member of ECCAS since 1981, was readmitted into the bloc last year, almost 10 years after leaving. When it left, it cited the need to focus on its membership in the East African Community and the Common Market for Eastern and Southern Africa. Its readmission to ECCAS has opened up more opportunities for Rwanda and boosted economic ties with the other 10 member states. Rwanda has formally rejoined the Economic Community of Central African States (ECCAS), after Foreign Affairs Minister Louise Mushikiwabo presented the instruments of ratification to the economic bloc on August 17. The return repositions the country to benefit economically, politically and diplomatically in the Central African region. Rwanda, which had been a member of ECCAS since 1981, was readmitted into the bloc last year, almost 10 years after leaving. When it left, it cited the need to focus on its membership in the East African Community and the Common Market for Eastern and Southern Africa. Since its readmission, countries such as Chad, which did not have diplomatic representation in Rwanda, have opened diplomatic ties with the country. One...

IN SUMMARY Companies that are export-ready and are motivated and willing to export helps them penetrate markets and make good sales, leading to business growth. However such initiatives have to collaborate with the government agencies responsible for promoting exports as that makes interventions sustainable. Over the past few years, the East African Community has made notable strides towards regional integration. Milestones such as the coming into force of the East African Customs Union, the establishment of the Common Market in 2010 and the implementation of the East African Monetary Union Protocol have all served to facilitate trade among member states. The volume of trade, however, has not grown at the envisioned rate, with some countries still having to play catch-up. Intra-EAC trading fell from $5.8 billion in 2013 to $5.6 billion in 2014. Even with this scenario, Kenya, Uganda and Tanzania continued to dominate regional trade as Burundi and Rwanda lagged behind. Overall, the share of intra-EAC trade, the region’s total trade fell to 10.1 per cent from 11.1 per cent in the same period, attesting to the existing imbalance in trade volumes among member states. Data from the Kenya National Bureau of Statistics shows that Kenya’s combined exports to Uganda, Tanzania and Rwanda declined from $69.9 million in January to $1.56 million in February, before rising to $88.8 million in March this year. Another study by Kenya’s Ministry of EAC in 2015 revealed that the Kenya’s exports to the EAC countries declined sharply. It attributed this to stiff competition from cheap...