Mistrust has emerged among the East African Community partner states over Tanzania’s commitment to the Economic Partnership Agreement that would give the region’s goods duty-free access to European markets. Tanzania is likely to delay the signing and ratification of the EPA document on the grounds that it was rushed through. Dar es Salaam has threatened not to sign the deal before its concerns on contentious issues are addressed. The region has until December 31 to sign the deal with the European Union or go back to the negotiating table. Initial document A source at the EAC Secretariat, who is privy to the matter, said Tanzania was forced to sign the initial document on the eve of October 14 after the EU threatened to withdraw its funding for agriculture under the European Development Fund (EDF). “At the time when Tanzania had refused to sign the initial document, discussions on when to release the EDF funds to member countries were ongoing in Italy. So Tanzania was given an option of either signing or forgoing the EDF funds. The same night they agreed to sign the EPA document,” said the official. READ: Relief for Kenyan exporters as Dar signs EPA document Of concern to Tanzania is liberalisation of imports from the EU where the EAC has committed to liberalise up to 82.6 per cent of all its imports from the EU. The area of concern is the export duties where the EAC partner states will not be allowed to impose new export taxes or increase existing ones unless they can justify special needs with regard to revenue, food...

Mistrust has emerged among the East African Community partner states over Tanzania's commitment to the Economic Partnership Agreement that would give the region's goods duty-free access to European markets. Tanzania is likely to delay the signing and ratification of the EPA document on the grounds that it was rushed through. Dar es Salaam has threatened not to sign the deal before its concerns on contentious issues are addressed. The region has until December 31 to sign the deal with the European Union or go back to the negotiating table. Initial document A source at the EAC Secretariat, who is privy to the matter, said Tanzania was forced to sign the initial document on the eve of October 14 after the EU threatened to withdraw its funding for agriculture under the European Development Fund (EDF). "At the time when Tanzania had refused to sign the initial document, discussions on when to release the EDF funds to member countries were ongoing in Italy. So Tanzania was given an option of either signing or forgoing the EDF funds. The same night they agreed to sign the EPA document," said the official. Source: The East African

Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and Rwanda on paying a fee of $100 (Sh10,600); Tanzania and Burundi are not party to the deal. Chief tourism officer of Rwanda Development Board said this illustrates that easing the visa process can significantly increase the uptake of the region’s tourism products. “Kenya and Uganda had to revise their visa fees in favour of the harmonised visa charges. It takes political will for that to happen and it’s good that our three leaders are committed to the process,” she said. Carmen Nibigira, the regional co-ordinator for the East Africa Tourism Platform, added: “We tour over a dozen countries in Europe using the Schengen visa. There is no reason East Africa should have restrictions when visiting all five countries.” Kenya Association of Hotel Owners and Caterers CEO Mike Macharia called on regional airlines to lower fares to enable more passengers take advantage of the new visa regime. Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and...

The World Bank is short of Sh14.2 trillion for continued support of Africa’s infrastructure projects and emergencies. The World Bank Vice-President for Development Finance Joachim Von Amsberg asked for the support of members of the African Caucus (African Governors of the World Bank Group and the International Monetary Fund) to raise funds to replenish the International Development Association (IDA). "We have a large portfolio, a series of projects in preparation that will drive private investment. These are projects for which there is great demand and we are seeking to mobilise possible resources,” said the World Bank VP in a statement. Kenya in the East African region and Nigeria in West Africa have some major infrastructure projects that require a lot of funds. The countries largely rely on World Bank for funding. EBOLA Kenya’s road network urgently needs improvement. The country is considered among the World’s fastest growing economies. It has earmarked Sh5.5 trillion for infrastructure development. The donor blamed Ebola outbreak, floods in Malawi and the earthquake in Nepal as well, for depletion of a three year fund that got exhausted in the first year. RAED: World Bank releases Sh54bn for Kenya-S. Sudan road The funds meant to replenish accounts of World Bank, officially referred to as Official Development Assistance (ODA) are usually capped at Sh5.5 trillion. However, World Bank has stretched its request quoting the emergencies that still need attendance. According to Mr Amsberg, the funds help by maximising impact on development, leveraging public and private resources, in addition...

KAMPALA, Uganda - Regional manufacturers last week asked that the East Afrian Community (EAC) governments favour them when contracting for goods and services. In a set of resolutions and meeting as the First Manufacturing Business Summit, they agreed that public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology based business start-ups.  ‘To this end, the government of East Africa Partner States and the private sector are called upon to prioritize in their procurement, the sourcing of locally manufactured products including in agro-food, furniture, motor-vehicles, parts, apparels and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy-East Africa-Build- East Africa scheme (BEABEA)’, a statement reads in part. The Summit was attended by Dr. Mukhisa Kituyi, UNCTAD Secretary General, Amb. Richard  Sezibera, EAC Secretary General,  Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives,  Adan Mohamed, Cabinet Secretary for Industrialization and Enterprise Development, Kenya, Tabu Abdallah Manirakiza, Minister for Finance Republic of Burundi, Adam Kighoma Ali Malima Deputy Minister for Finance of Tanzania, Dr. Joseph Mungarulire, representing the Minister for Trade and Industry, Republic of Rwanda, Denis Karera, EABC Chairman, Amos Nzeyi, UMA Chairman. The business people also called for a regional Local Content policy which clearly defines ‘local’ in a regional content  to ensure that preferential treatments accorded to nationals are extended to all suppliers within  in East Africa region. The Summit was jointly organized by East Africa Community Secretariat and...

East Africa has emerged at the leader in mobile payment over the years, with countries like Kenya having more than two-third of its adult population using mobile phones to transact. With the mobile money market in sub-Saharan Africa expected to double by 2019, lack of interoperability between telecoms operators and cross-border restrictions has stood out as one of the key challenges that face the growth of the revolution. According to a Wall Street Journal report, some of the continent’s biggest telecoms are striking deals to allow their customers to make payment across networks and country borders, something that cemented the region as a leader in mobile financial technology. In January, East African nations of Kenya, Rwanda and Uganda, signed a One Area Network Agreement (OANA) to help improve cross-border telecommunications and expand the scope of mobile money transfers in the sub-region. “We are now exploring how we can have the One Area Network infrastructure grow from voice to data and mobile money transfer. We want you to be able to move money from your M-Pesa account here to a relative in Kigali and vice versa or from Airtel Uganda to Safaricom in Nairobi,” Fred Matiang’i, Kenya’s Communications and Technology minister, said. London-based Vodafone Group and South Africa’s MTN Group hatched a deal that allowed their customers in East and Central Africa to transfer money to each other. Millicom also announced it would allow its customers in Tanzania and Rwanda to send money to each other. These telecoms are eyeing the...

By Ben Gasore The East African Tourism Platform (EATP) has pledged to continue marketing the region as a single tourist destination, as well as take a leading role in conservation efforts to create a sustainable tourism industry in the region. EATP comprises of the East African Community (EAC) countries' tourism boards and tour operators. "We are moving into packaging the region as one destination, celebrating flagship tourism events and finding solutions to challenges together, which wasn't happening before," said Amb. Yamina Karitanyi, the chief tourism officer at the Rwanda Development Board. Amb Karitanyi was speaking during a meeting that brought together EAC tourism boards officials and tour operators to discuss opportunities and challenges facing the region's tourism sector in Kigali over the weekend. The meeting coincided with the annual 'Kwita Izina' ceremony on Saturday, where 24 baby gorillas were named. The annual flagship tourism event in Rwanda was moved from June every year to September as part of a joint tourism promotion initiative established under a tripartite agreement between Rwanda, Kenya and Uganda. Under the deal, each member country has a period to focus on a flagship tourism event. Kenya was allocated October, where they host the Magical Kenya Expo, and Uganda took June when it hosts Uganda Martyrs Day on June 3. "As stakeholders in Kenya, the most important thing is that we are now taking this step. We started with Magical Kenya in October as an anchor flagship programme to market the three destinations and we have so...

East Africa is the fastest growing sub-region on the continent, with economic growth expected to expand by 5.6% this year, well above the continental average of 4.5% or Southern Africa’s 3.1%. But in an odd contradiction to regional growth trends, East Africa’s infrastructure is one of the least developed in Africa. Infrastructure development is thus paramount for the sub-region to reach its full potential and many ‘mega’ infrastructure projects are currently under way in the region. By LYAL WHITE and ADRIAN KITIMBO. Kenya’s standard gauge railway (SGR), a new rail track that will stretch from Mombasa to Nairobi, is the most ambitious infrastructure project in the country since independence. The 609km-long line is expected to cost $3.6-billion, with China’s Exim Bank footing 90% of the bill and the Kenyan government providing the other 10%. The SGR is part of the grand trans East African railway project, one of many ‘mega’ infrastructure projects currently under way in that region. It is a direct effort to connect East Africans and their economies, and in so doing build economies of scale, lower the cost of doing business, attract foreign investment and ultimately accelerate growth and development. East Africa is currently the fastest growing sub-region on the continent. With economic growth expected to expand by 5.6% this year, well above the continental average of 4.5% or Southern Africa’s 3.1%, investors and credit rating agencies are increasingly bullish about the region. In an odd contradiction to regional growth trends, East Africa’s infrastructure is one of...

The country’s formal trade with its peers in the East African community continued to register a trade deficit in the first half of 2015 as a result of an increase in import receipts and a decline in exports value. In the first six months of 2015, the trade deficit widened by 16.2 percent to $188.85 million in the first half of 2015 from $ 162.46 in the same period in 2014. The widening deficit according to Thomas Kigabo, Chief Economist at Central Bank is due imports increasing by 1.4 percent and export receipts declining by 26.8 percent in the first half of 2015. “The appreciation of our currency against other regional currencies made goods from our neighbors in East Africa relatively cheaper,” he said while speaking to this website. Accordingly, imports that include cement, refined and no refined palm oil and other cooking oils, sugar, vegetable fats, and clothing increased to $ 251.38 million in the first half of 2015 from $247.97 million in the same period 2014. While exports that include tea sold at Mombasa commodity exchange, coffee, raw hides and skins of bovine, leguminous vegetables and beer declined to $62.57 million from $ 85.51 million recorded in the first half of 2014. But tea recorded an increase in its exports which rose by 12.5 percent. The decrease was mainly due to the fall in exports of beer from malt that declined by 18.3 percent, raw hides and skins 48.9 percent and electrical apparatuses for line telephones 77.6 percent,”...

By Rodrigue Rwirahira Women are dominating small scale cross-border trade between Rwanda and the Democratic Republic of Congo (DRC), new findings have revealed. A research paper titled; 'Deriving maximum benefit from small-scale cross-border trade between Democratic Republic of Congo (DRC) and Rwanda', reveal that at least 83 percent of traders around the area are women between the ages of 25 and 45. 65% of the women, the majority of whom sell agricultural goods and manufactured products, are the main breadwinners of their families. The study, which was commissioned in conjunction with Trade Mark East-Africa, Pro-femmes Twese hamwe (A national women's organization) and International Alert, also reveals that men dominate trade in high valued commodities such as livestock and industrial commodities. "Only 20 percent of men trade agricultural commodities, as against 49.8 percent of women; 16 percent of men trade arts and crafts products, against 0.046 percent of women; and 11 percent of men trade fishery products, against 15 percent of women," reads part of the research. The report on the other hand showed that there is no significant difference between men and women as far as selling points are concerned. It states that 31 percent of men and 38 percent of women sell in markets while 23 percent of men and 19 percent of women engage in door-to-door sales. However, while 38 percent of men and women sell on the streets, a far smaller number (8 percent of men and 5 percent of women) sell their commodities in shops. According...