There are growing worries that even though the East African bloc continues to integrate, the rise of anti-competitive trade habits is bound to make it difficult for other companies to join the region. Some countries within the region continue to grapple with coming up with strong competition laws as they try to strike a balance between protecting their indigenous firms and attracting foreign companies. Ms Tania Begazo, a senior economist, Competition Policy Cluster, Trade and Competitiveness, World Bank Group, argues that opening markets and removing anticompetitive sectoral regulation will safeguard and encourage competition in the East African Community. “Competition is an ingredient for economic growth. You can’t attract investment if you are not competitive. Tackle cartel agreements that raise the cost of key inputs and final products, and prevent anticompetitive mergers,” she said. She was speaking at the EACOMP regional advocacy workshop organised by CUTS Nairobi with support from TradeMark Africa (TMA) in Arusha recently. As competition deepens, anticompetitive practices such as predatory pricing - where large firms with strong financial muscle collude to sell their goods or services below the cost of production - could make it difficult for other companies to enter the market. In his analytical report, Should EAC Regulate Competition?, Alloys Mutabingwa, the former EAC deputy secretary General, argued that countries needed to create a free and fair environment that promoted competition. “Whereas competition among firms is a precursor to economic development, a competition culture that is characterized by high levels of cartelization, heavy-handed government intervention,...

NAIROBI, KENYA - President Uhuru Kenyatta last week told regional legislators the East African integration message was not getting across fast enough and asked for more momentum from all concerned.  Quat “I wish to make it clear that we who are convinced of the imperative of integration must communicate it better to our people. Too often, the integration of East Africa is taken to be merely a political matter - a job for politicians, not ordinary people. True, leaders must lead.  But we have failed to spark the imaginations of East Africans when it comes to integration,” he said last week while addressing the East African Legislative Assembly (EALA) in Nairobi. He asked on the Assembly to consolidate its work on the integration process.  President Kenyatta further said the citizens of the region were yearning to freely move, work and enjoy the tangible benefits of integration. The President was addressing a Special Sitting of the 2nd Meeting of the 4thSession of the 3rd Assembly. Keanyatta reiterated his commitment and that of his government to the integration process. “I will begin by repeating my Government’s complete commitment to East African integration. I know that the future of each of us in the region is bound up with the fate of all the rest.  Leaders must create the laws, the institutions, and the framework that will help us face that future together. Kenya will play its part in that great task,” he said. According to a press release, the President further urged...

As long as not enough momentum is built up over the East African economic integration ideal, the issue of non-tariff barriers (NTBs) is likely to stay with us for sometime to come. It is easy for politicians to pay lip service to these great ideals. Technically that is their job. For people on the ground it can be a totally different story. Here we are talking about protection of jobs and livelihood. Paradoxically, it is also frequently the same politicians who shout for the elimination of NTBs who then turn around and tell their people to ignore what they are saying in public. Most trade barriers are put up in response to competition or specifically fear of competition. NTBs are a  favourite tool, because the government can think of plenty of other reasons to impose them other than competition. They can also cite unfair competition when one government subsidies the production of an enterprise. It is well and good that there is a mobile phone system that allows one to report NTBs in real time. But dismantling NTBs will only quicken when all EAC governments are singing the same song of ‘free trade across  borders’. This is not to say that there are no genuine reasons why one product or commodity should not be restricted. But let us not use these same genuine reasons to impose NTBs out of fear of competition. On paper, the East African Community Treaty is a momentous collection of what can define a great undertaking. You...

Reducing tariffs is a great start for increasing trade within Africa, but important non-tariff barriers (NTBs) must also be reduced in order to boost trade both within and outside of the continent. In fact, the United Nations Economic Commission for Africa found the costs of NTBs in 2010 were higher than the costs of tariffs. The African Development Bank notes that, “while tariffs have progressively fallen, the key challenge to intra-African trade is non-tariff barriers that stifle the movement of goods, services and people across borders.” What sort of non-tariff barriers exist in Africa? Infrastructure across the continent is poor, discouraging the movement of goods and people. Less than a quarter of roads are paved, and those are often filled with potholes. It’s not uncommon for airfare with a layover in Europe or Asia to be cheaper than direct intra-continental flights. Meanwhile, seaports are crumbling and rail connection is paltry. “Thick borders” are also an issue, created by burdensome administrative procedures for clearing goods for import and export. Lines of trucks at the border lead to waits measured in days due to excessive bureaucratic red tape and burdensome administrative procedures. A report by Transparency International (TI) and TradeMark Africa (TMA) found that drivers at Rwanda-Tanzania customs stations spent an average of 72 hours obtaining customs clearance. World Bank economist Paul Brenton found that a truck serving supermarkets across a Southern Africa border may need to carry up to 1600 documents to comply with different countries’ requirements for permits, licenses, and other required...

According to the 2013 Society for International Development report, The Future of Inequality in East Africa, gains from EAC integration could be hampered by the growing inequality gap in the region. Half of the population of the EAC, representing 71 million people, lives on $1.6 a day. There is evidence that women bear the brunt of poverty but their empowerment is a central precondition for poverty’s elimination. According to the World Trade Organisation, there is a strong correlation between increased international trade and increases in female employment in exports, connection to markets and often higher wages in export-oriented industries. Analyses of several countries have even argued that each country’s economic development is “as much female-led as it is export-led.” Supported by the Netherlands government, and presided over by Foreign Affairs Cabinet Secretary Amina Mohammed, TradeMark Africa on October 15 launched the $4.5 million “Women and Trade Programme’’ to run till December 2016, with a second five-year phase of an additional $10 million to commence in 2017. Targeting 25,000 women in its first phase, the programme’s goal is to increase incomes and improve livelihoods for women traders and women-owned enterprises by strengthening the enabling environment for women traders, facilitating the removal of the internal impediments to trade faced by women and proactively promoting the ‘’voice’’ and participation of women in export and trade in East Africa. In many countries in Africa, the majority of small farmers are women, producing crops such as maize, cassava, cotton and rice. These have enormous potential...

Women, who form a key part of informal trade in East Africa, will benefit from a programme to equip them with knowledge in customs and trade procedures as well as boost their revenue. The $4.5 million scheme by TradeMark Africa (TMA) will involve women traders from Kenya, Uganda, Rwanda, Burundi, Tanzania and South Sudan and run for about a year. “These efforts will enable women traders to overcome key challenges including access to market and trading information, understanding of customs and immigration requirements, compliance with standards, business development skills and access to finance,” Lisa Karanja, senior director for business competitiveness at TMA said. “Additionally, TMA will continue to strengthen women traders’ associations, groups and cooperatives to enable them to effectively engage with policymakers at national and local level, access group loans and engage in collective marketing.” TMA seeks to significantly contribute to women traders’ knowledge on EAC trade and export procedures by December 2016 in partnership with local organisations that will implement the programme. “Targets include a 10 per cent average increase in revenues of the targeted women exporters and traders, a 30 per cent increase in the use of formal trade channels and systems by the women cross-border traders and the adoption of policies, regulations or practices that support an enabling environment for women,” the agency said. A second five-year phase is envisaged for 2017 with a $15 million budget committed to the effort. “Empowering women creates a positive multiplier effect on poverty reduction, economic growth, government revenues and...

DAR ES SALAAM, Tanzania, 21st October 2015 – The Tanzania Food and Drug Authority (TFDA) and TradeMark Africa (TMA) have unveiled an information system (e-portal) that will enable TFDA serve its clients more efficiently and effectively. The launch signifies a milestone for the process that started in 2011 whereby TFDA has spent more than TZS 300 million from its own source in the development of Management Information System (MIS). TMA has contributed a total of $250,000 towards supporting TFDA digitalize its operations. [caption id="attachment_10342" align="alignleft" width="600"] Tanzania Chief Medical Officer, Prof. Mohammed Bakari launches the TFDA online portal. He is flanked by the TFDA Director General, Hiiti B. Sillo.[/caption] Such investment include development of the system, installation of power backup to ensure reliable supply of power, training of staff, linking Headquarters with zone offices and training of stakeholders on application of the system. To date, the investment has facilitated development of a Management Information System (MIS) as well as an online trade portal through which traders can apply for import and export certification services. TMA will continue to support TFDA automate all other key processes including the Laboratory Management Information System. Additional support will go towards integrating TFDA’s portal to finance Section to support an efficient platform for payment. Finally, TMA will support preparations for the TFDA portal to be integrated into the Tanzania National Single Window, which is under development. Speaking at the launch Dr. Donnan Mmbando, the Permanent Secretary in the Ministry of Health and Social Welfare said,...

PERMITS TO ENHANCE TRADE DAR ES SALAAM, Tanzania, 21st October 2015 – The Tanzania Food and Drug Authority (TFDA) and TradeMark Africa (TMA) have unveiled an information system (e-portal) that will enable TFDA serve its clients more efficiently and effectively. The launch signifies a milestone for the process that started in 2011 whereby TFDA has spent more than TZS 300 million from its own source in the development of Management Information System (MIS). TMA has contributed a total of $250,000 towards supporting TFDA digitalize its operations. Such investment included development of the system, installation of power backup to ensure reliable supply of power, training of staff, linking Headquarters with zone offices and training of stakeholders on application of the system. To date, the investment has facilitated development of a Management Information System (MIS) as well as an online [caption id="attachment_10030" align="alignleft" width="600"] Tanzania Chief Medical Officer, Prof. Mohammed Bakari launches the TFDA online portal. He is flanked by the TFDA Director General, Hiiti B. Sillo.[/caption] trade portal through which traders can apply for import and export certification services. TMA will continue to support TFDA automate all other key processes including the Laboratory Management Information System. Additional support will go towards integrating TFDA’s portal to finance Section to support an efficient platform for payment. Finally, TMA will support preparations for the TFDA portal to be integrated into the Tanzania National Single Window, which is under development. Speaking at the launch Dr. Donnan Mmbando, the Permanent Secretary in the Ministry of Health...

The Democratic Republic of Congo (DRC) has officially joined the Northern Corridor Integration Projects Initiative (NCIPI) during the just concluded eleventh heads of state summit that was held in the Kenyan capital, Nairobi, yesterday. DR Congo's Minister of Transport Justin Kalumba Mwana-Ngongo who attended the summit in Nairobi announced that his country was joining the hitherto, four-member alliance consisting of Rwanda, Uganda, Kenya and South Sudan. Monique Mukaruliza, Rwanda's coordinator of the NCIP, confirmed the development in a statement to Sunday Times yesterday. "DRC has communicated that it has officially joined NCIP and will start with {being part of} the Standard Gauge Railway (SGR) and other projects will follow," Mukaruliza said in a statement. The NCIPI was established following a meeting on June 25, 2013, in Entebbe by three Presidents, Uganda's Yoweri Museveni, Rwanda's Paul Kagame and Kenya's Uhuru Kenyatta, to discuss how to cooperate and speed up development in the region. South Sudan joined the initiative shortly after the initiative's establishment; yesterday's summit in Nairobi was the 11th time the leaders are meeting. Rwandan leaders who attended the Nairobi summit lauded DR Congo's entry in the NCIP calling it a significant development that will lead to consolidation of resources to bankroll the region's ambitious infrastructural projects. The Nairobi summit was also attended by Ethiopia, Burundi and private sector members from the four principle partner-states {Rwanda, Uganda, Kenya and South Sudan}. In a statement, Rwanda's Mukaruliza also indicated that Ethiopian representatives at the summit announced that the country will join...

The Dar es Salaam Port is increasingly becoming a preferred area for Rwanda Rwanda’s maritime trade channelled through the Dar es Salaam Port on the Central Corridor has doubled in the last two years, as the port overtakes the rival Mombasa port in handling cargo to and from the landlocked East African country. The Tanzania International Container Terminal (TICTS) said in a statement that at least 70 per cent of all deep-sea cargo to and from Rwanda passes through Dar es Salaam Port. “Over the past two years this volume has doubled,” TICTS, which handles more than 80 per cent of all containers passing through Dar es Salaam Port, said in a statement. A delegation led by TICTS Chief Executive Officer, Mr Paul Wallace, visited Rwanda, accompanied by representatives from TAFFA, Central Corridor Transit Transport Facilitation Agency and TASAA. This was prompted by an earlier visit to the port by President Paul Kagame this year. The Tanzania delegation was co-hosted by the Rwandan Minister of East African Community (EAC), Ms Valentine Rugwabiza and the Tanzanian Ambassador to Rwanda, Mr Ali Idi Siwa. The delegation held important development discussions with Rwandan Ministers for Trade and Industry and Infrastructure, as well as the Commissioner General of the Rwanda Revenue Authority. “In order to serve this growth and prepare for increased growth in the future, the delegation highlighted TICTS’ ongoing programme of investment and innovation,” the statement said. The delegation discussed the major reconstruction project to be managed by Tanzania Ports Authority (TPA)...