ARUSHA, Tanzania, 31 August 2015 / PRN Africa / — Strong regional economic communities (RECs) are the key to Africa's long term goal of creating a vibrant, united and prosperous continent. South Africa's High Commissioner to Tanzania and the East African Community, His Excellency Thamsanqa D. Mseleku, said his country was committed to the creation of strong and viable RECs across the entire continent, adding that RECs were the surest way to achieve the founding fathers' dream of Pan-Africanism. RECs are the first step to the African Union's ultimate goal of creating an African Economic Community. Amb. Mseleku said South Africa was keen to ensure that African countries build on the gains made in regional integration, democratisation, economic growth, good governance, security and political stability. He noted that while Africa had made significant gains in these areas, there were still major challenges to be surmounted citing the situations in Burundi, South Sudan, the Central African Republic and Somalia. "On the economic front, there are sudden problems emerging in the world which have a negative impact on African economies most of which are mainly resource based," he said. The envoy said his country was open to increased cooperation and partnerships with the EAC, which he described as Africa's fastest growing economic bloc. Amb. Mseleku was speaking when he presented his credentials to the EAC Secretary General, Amb. Dr Richard Sezibera, at the EAC Headquarters in Arusha, Tanzania. The High Commissioner was accompanied by Mr Manqoba Mdluli, the Third Secretary Political Affairs...

The falling global prices of key commodities coupled with instability in the Burundi market have reduced Rwanda’s export earnings. The country is, therefore, far from achieving the targeted 11.5 per cent GDP growth in the next four years as its seeks to become a middle-income economy. This growth was expected to start this year, but figures from the National Bank of Rwanda (BNR) show that in the first six months of 2015, the country recorded a 7.6 per cent growth. Although the growth is impressive, according to National Bank of Rwanda Governor John Rwangombwa, the country needs to diversify its export base outside traditional exports like coffee, tea and minerals, whose prices have been falling. “We need to urgently expedite efforts to diversify to other forms of non-traditional export commodities,” said Mr Rwangombwa. The August 2015 BNR Monetary Policy and Financial Statement shows the value of exports has fallen to $275.28 million in the first half of this year from $293.61 million last year, partly weighed down by the depressed global mineral prices. Exports to the East African Community member states have also dipped from $85.51 million recorded in the first half of last year, to $62.57 million in the same period this year. The decrease was mainly due to a fall in exports of beer, raw hides and skins. Most of Rwanda’s beer used to be exported to the Democratic Republic of Congo and Burundi. Mr Rwangombwa said Braliwa, the listed beer brewer, no longer exports to those countries...

Rwanda's service sector has pushed the country’s first quarter GDP growth to 7.5 per cent, even as the manufacturing and agriculture sectors in the region, which registered a decline, pulled down the overall growth numbers of the bloc’s economies. The economies had predicted a rise in their growth rates but poor performance by several key sectors is putting this in doubt. Rwanda remains the only regional economy on course, with private sector–led growth being its biggest GDP contributor. Yusuf Murangwa, director-general of Rwanda’s National Institute of Statistics, said that the country’s GDP grew by 7.6 per cent in the first quarter of this year. “We have seen an average growth of 10 per cent in the trade, education, finance, insurance, transport and communications sectors,” said Mr Murangwa. The government has been keen on attracting investment in the tourism, ICT and insurance sectors. By 2014, ICT services exports had hit the $4 million mark and are expected to register $11 million by the end of this year. Rwanda is also investing in RwandAir to boost tourism earnings, its key foreign exchange earner. It aims to expand the sector’s annual turnover from the current $46 million to more than $350 million by 2018. Tanzania saw a negative performance in the agriculture, mining and manufacturing sectors slowing its economy. The economy grow by 6.5 per cent in the first quarter of this year from a high of 8.6 per cent in the first quarter of 2014. According to Tanzania’s National Bureau of Statistics,...

Intra-African trade increased by 50 per cent to $61 billion between 2010 and 2013, according to recent data released by the African Development Bank. The rise is attributed to improved market access and a strong growth in re-exports among African countries. The increase marks a strategic shift in internal trade on the continent, which was previously relatively low compared with trade flows from the European Union and China, observers say. Poor quality roads and highways connecting national borders; non-tariff barriers and insecurity are blamed for the weak growth posted by intra-African trade in the past. Recorded trade flows within the East African Community have grown by an average of less than 15 per cent per annum since 2005 compared with an average growth rate of 20-25 per cent per year in trade activity between the bloc and the Eurozone, research shows. Africa’s trade with Europe grew to $430 billion between 2010 and 2013 while the value of trade flows with China increased to $210 billion during the same period, AfDB data shows. The growth of intra-African trade has the potential to reduce unemployment, household poverty and increase tax revenues. Economists cite increased access to trade routes within economic blocs on the continent for the sharp growth in intra-African trade, with big economies such as Egypt posting bigger export volumes within the Common Market for Eastern and Southern Africa (Comesa) in recent times. Though latest data on the country’s exports was not available by press time, Egypt’s manufacturing sector is currently...

Regional business lobby TradeMark Africa has picked new board of directors and appointed former World Trade Organisation director Pascal Lamy as special advisor. The 11 member board will be chaired by Tanzania’s Ali Mufuruki. Others members are Kenya’s Patricia Ithau, Earl Gast and Matt Reitz of USA, Rwandese Rosette Chantal Rugamba, Jaqueline Lutaya of Uganda, Patrick Obath and Anthony Masozera from Burundi. The team was picked from more than 500 applicants from East Africa. TMA previously operated with a statutory board provided mostly by service organisations. The new team incorporates members from the EAC region and is expected to give unbiased feedback on performance of TMA to management. Source: The Star

Economic experts are calling for more focus on simple cross-border trade in order to boost incomes and living standards. The call was in reaction to a survey indicating that 82 per cent of cross border traders are in the informal sector. The report, “Deriving Maximum benefit from small scale cross-border trade between DR Congo and Rwanda”, released in Kigali on Thursday, was commissioned by Trade Mark East-Africa, Pro-femmes Twese Hamwe and International Alert. The most traded goods from Rwanda to the DR Congo, according to the survey, include agricultural produce, while those imported from DR Congo are manufactured commodities, mostly textiles. “Many of the traders sell goods on the streets; this is mostly the case for traders originating from Rwanda. About 46 per cent of traders from Rusizi, and 38 per cent from Rubavu sell their goods on streets, against 27 per cent of traders from Goma and 35 per cent from Bukavu,” reads the survey report in part. Conducting their business on the streets exposes these traders to harassment by police officers and street children, the report added. Presenting the findings, Betty Mutesi, International Alert’s country coordinator, said DR Congo eastern borders are the giant markets for Rwanda since they account for 80 per cent of Rwandan exports, followed by Burundi (11.5 per cent), Uganda (7.7 per cent) and Tanzania (0.1). “The research confirmed that business between the two countries is the most viable and that it has continuously increased from time to time, hence the need to invest...

Rwanda’s trade deficit in the construction sector is set to remain high at least in the short and medium term even after Cimerwa Ltd, the largest cement manufacturer, promised to satisfy the market and export the surplus. Rwanda’s construction sector like other sectors of the economy is a net importer. However, Cimerwa, has completed its new production plant in Western Province, which is expected to stop cement imports. The government said although the deficit will reduce, more investors into the sector are needed. For example, last year the construction sector imported materials worth Rwf166.1 billion ($227.8 million) while the country’s exports remained at a paltry Rwf15 billion ($21.1 million). In 2013, Rwf157.7 billion of imports were recorded while exports fetched Rwf20 billion. “We still import significant volumes. The new Cimerwa production facility will improve the situation but the government continues to interest investors in this sector in order to reduce the gap,” said Robert Opirah, Trade and Industry Ministry official. High trade deficit in the construction sector is partly attributed to a booming industry, leading to a high demand for construction materials most of which are manufactured outside Rwanda. Construction sector last year grew by 6 per cent down from 8 per cent a year before even though it is one of the highest growing sectors. Rwanda Patriotic Front, the ruling party, is one of the private investors that have made significant investment in construction companies — Ruliba Clays and East African Granite Industries — that are making tiles and...

That Mombasa is the gateway to East Africa has never been in doubt. It is an often-stated fact that the City of Mombasa is the starting point of transport logistics along the Northern Economic Transport Corridor that leads to the landlocked yet strategic trade partners of Kenya viz Uganda, Rwanda, Burundi and South Sudan. Thus, the coastal city plays a pivotal role in trade partnerships, syndication and development across the East and Central African countries. To achieve this, the government has prioritised development of key infrastructure in a bid to spur regional economic activity. This is because traffic congestion is one of the key non-monetary trade barriers affecting business in the region. The Kenya National Highways Authority is one of the key partners in ensuring successful and lucrative economic integration between Kenya and her neighbouring countries. Towards this end, the authority is in the process of implementing several key projects, both in Mombasa and along the Northern Corridor. Among them is the Port Reitz and Moi International Airport access road, jointly financed by the government and Trademark East Africa. Then there is the dualling of Mombasa-Mariakani highway implemented in two phases. Phase one, from Mombasa to Jomvu, jointly funded by the government and African Development Bank. Kenha has also purposed to erect two new weighbridge stations on each side of the road at Mariakani and dedicated lanes for trucks approaching the weighbridge, thus eliminating the traffic snarl-ups sometimes associated with the weighbridge. The World Bank funds this project. Rehabilitation of...

African countries have been urged to increase trade among themselves in order to ensure the continent grows into a notable economy, Nigerian High Commissioner to Kenya Akin Oyateru has said. The diplomat said there is much potential on the continent and the 10 per cent target that has been achieved so far, can be taken further if various States forge a common trade bond. “For Africa to survive, it needs to have more intra-trade and this should be encouraged between nations as Europe and Asia can comfortably survive through their trade,” he said. Mr Oyateru said Europe is doing 60 per cent while Asia is at 50 per cent of trade with themselves. This, he said, Africa needs to adopt. He said improved intra-trade would enable farmers to get more value for their products once they are exported within the continent. Mr Oyateru spoke during a courtesy call on Bungoma Governor Ken Lusaka last week where he urged presidents to reach for a common business pact. Source: Daily Nation

NAIROBI, Kenya - In November participants from the East African Community (EAC) public and private sector are to meet in Nairobi to brainstorm infrastruture development writes JOSEPH BURITE. The Project East Africa Summit is being hosted by the Kenya Ministry of Transport and Infrastructure. Organisers say several major investment opportunities and infrastructure projects in the East African region will be highlighted at summit. It is being touted as a leading platform for local and international investors to showcase opportunities available in the region and will take place on November 3 and 4, at the InterContinental Hotel, Nairobi. ‘Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda have joined forces to present their major projects and promote infrastructural development at the event,’ reads a statement in part. According to the statement, the Summit brings together six major governments from the East Africa region together with all the major private sector industry leaders to provide detailed insight into commercial opportunities available and is the best possible platform to meet potential business partners. The East Africa Chamber of Commerce, Industry and Agriculture (EACCIA) is co-hosting the talks. The event’s task force set up by the Ministry of Transport and Infrastructure will ensure that all the government’s major projects are well-represented with the exact purpose of meeting companies and investors who are interested in all the region has to offer. EACCIA is an organization which was established and owned by the three national chambers, namely, the Kenya National Chamber of Commerce and Industry, the Uganda...