Uganda Revenue Authority (URA) and immigration officers have been warned against condoning the increasing vices of bribery and smuggling of goods on Mirama Hills and across the Uganda border to Rwanda. PS Okello viewing the architectural design of the facility The warning was sounded by the Permanent Secretary in the Ministry of Works and Transport, Mr. Alex B. Okello, last week when he officiated at the technical handover of the Mirama Hills One Stop Border Post (OSBP) URA in Ruhaama Sub County in Ntungamo district. The official commissioning of the two border posts (Kagitumba and Mirama Hills) will be done by the presidents of Rwanda and Uganda later in the year. Mr. Okello called for transparency in whatever is done at the border post. “This is an investment that has been put up by the Government of Uganda to ease transportation of goods in and out of the country. Let’s make this facility work for the people, including the local community. Avoid bribes here from smugglers and ensure transparency to all users,” Okello stated. He urged the combined work force of URA, Immigration, Police and other government officials at the border post to ensure efficiency of the border post and increase business in order to realize high revenue collections by URA, in addition to learning the tricks used by business men who try to smuggle in goods and dodging taxes. PS Okello hands over the facility to URA Commissioner Customs Dickson Kateshumba He commended the work of Dott services, the...

KENYAN President Uhuru Kenyatta has added his voice on the need to remove barriers that hinder international trade. Mr Kenyatta’s call comes hardly a month after the African Union Assembly launched the Continental Free Trade Area (CFTA) negotiations during the 25th Ordinary Summit of Heads of State and Governments on June 15 in Johannesburg, South Africa. The launch of the CFTA negotiations was preceded by a high level panel discussion on the CFTA. The objective was to discuss the importance and benefits of the CFTA for the continent. Currently, it is documented that Africans trade only 12 percent of their merchandise among themselves. That is why Mr Kenyatta, one of the champions of the CFTA, has continued to highlight the importance and critical role the CFTA is for the continent. Speaking in Ndola on Saturday when he graced this year’s Zambia International Trade Fair, Mr Kenyatta appealed to officers working at international borders to work extra hard in implementing instruments that can enhance trade between Zambia and Kenya. President Kenyatta, who has also called for the continued signing of multi- and bilateral agreements that promote international trade among nations, knows the benefits of the CFTA: prosperity, job creation for youth, peace, security and agricultural development. Cross-border trade is an integral part of the modern world economy and international markets are an important platform for the exchange of goods and services. Economists say that there are gains from trade for countries involved. And with six out of the 10 fastest-growing economies...

Work permits will no longer be needed to seek employment in any of the East African Community states, Education Cabinet Secretary Jacob Kaimenyi said yesterday. Kaimenyi said all that one needs to work in the host country is a national ID card. "This has become possible under a memorandum of understanding signed under the auspices of the Northern Corridor Transport Improvement Project," he said in a statement. Kaimenyi said the agreement allows free movement of labour and services within any of the member states. He said students studying in universities in member states will pay same tuition fees and in local currencies as those in host countries. He said partner states agreed to undertake skills audit for the standard gauge railway and form a consortium comprising universities from the region to carry out skills audit for other NCTIP projects. Source: All Africa

The Mirama Hills-Kagitumba one-stop border post has been opened to facilitate fast movement of goods and traders between Uganda and Rwanda. The initiative, part of the East Africa Trade and Transportation Facilitation Project, aims at modernising and strengthening Customs administration and border control agencies in the region to reduce non-tariff costs on trade and smuggling at the border. Officiating the opening of the facility last Friday, Uganda's Permanent Secretary in the Ministry of Works, Mr Alex Okello, said traders were being strained by delayed clearance that at times took a day or two at either side of the border. He said the delay would at times breed corruption, besides smuggling as impatient traders tried to find the fastest means to cross the border. “...the cost of doing business will come down, there will be easy coordination which will ensure transparency,” said Mr Okello. The facility worth $7.8 million has among others, Customs and immigration blocks, warehouse building, clearing agents block, goods inspection and verification block and a police station. TradeMark Africa, funders of the project, handed over the facility to the Uganda Revenue Authority (URA). TradeMark is also funding 13 similar projects in the East African countries, four of which are in Uganda. URA's Customs commissioner Mr Dickson Kateshumba said the border post will have a 24-hour manpower to see that the objectives of putting up the facility are achieved. Source: The East African

Last month, representatives of Maersk were invited to share their East Africa project in front of the World Trade Organization (WTO) in Geneva, hosting the fifth year review of Aid for Trade – a concept to support developing countries and their governments in recognising the role trade plays in their countries’ development. Maersk Line pointed out that the journey of a container encompasses a maze of processes and paperwork that greatly complicates a simple task of moving cargo from A to B, with these complications being cost-heavy due to lost or inaccurate information. "More than 30 individuals or institutions are involved in handling documentation and there are about 200 different communication interactions in the process, with public officials and between different companies," the group said. "Consequently, the time spent waiting on paper stamps and email replies costs just as much as the actual shipment, which simply is not a feasible or productive way to do business. For producers in Kenya all of the paperwork and its processes increase their total cost and limit their market access significantly." The mapping of numerous documentary requirements in the journey of flowers and avocados from growers in East Africa to retailers in the Netherlands was the first step of a new partnership between Maersk Line and TradeMark Africa, a not-for-profit organisation working to accelerate poverty reduction in the region through trade growth. The aim of the partnership is to identify ways to reduce trade barriers for Small and Medium sized enterprises (SMEs) and perishable...

Restrictive legal and regulatory policies coupled with poor infrastructure and logistic services are holding back East Africa’s manufacturing sector, says the Africa Development Bank The East Africa’s manufacturing sector report released on Friday shows manufacturers continue to experience problems in cross border trading and starting and closing a company. It shows productivity remains inhibited by a problematic energy supply and costly transport due to poor road network, limited availability of rail transport and poor logistics in ports. “From a regional perspective... the poor performance on trading across borders is particularly detrimental to the prospects for achieving rapid industrialisation,” it reads. The countries that were covered include Kenya, Rwanda, Burundi, Ethiopia, Uganda, Tanzania and Seychelles. According to the report, the contribution of manufacturing in the economies of these countries is relatively small, ranging from 3.8-11 per cent of the gross domestic product, compared to the levels between 30-40 per cent in industrialised countries like China and South Africa. The report shows manufacturing in East Africa is dominated by food and beverages, largely basic processing of agricultural output and the production of more refined consumer products such as soaps, perfumes and cosmetics. It shows Kenya has a comparative advantage in food and beverages, leather products, textiles and clothing, and in non-metallic mineral products including cement and ceramics. Rwanda has an edge in processed tea, Tanzania in textiles, Uganda in cement, clay and ceramics and the Seychelles in processed fish products, mainly tuna. According to the report, the limited role that manufacturing currently...

KIGALI, Rwanda - Rwanda’s Finance and Economic Planning Minister, Amb. Claver Gatete has said Rwanda wants to become the top regional hub for services. “We aim at becoming the services sector hub for the region, but that does not mean we have any intentions to abandon the industrial sector,” Gatete said recently. He was speaking during the dissemination flagship publication for the United Nations Economic Commission for Africa (UNECA), the Economic Report on Africa 2015 held in Kigali The theme was, ‘Industrializing through Trade’, something the Minister said was extremely relevant to one of the development challenges on the African continent. “Rwanda is a strong believer in industrialization and regional integration and that’s why the country has been participating in efforts within the East African Community (EAC) to reduce or eliminate barriers to trade both tariffs and non-tariff barriers but also in Common Market of Eastern and Southern Africa (COMESA), but in the future the Economic Community for Central African States (ECCAS)." “This report covers a lot on ground in the subject matter which has many implications for the public policy,” Gatete said. UNECA over the past years has been a strong advocate of giving priority to industrialization in Africa and the accompanying concept for structural transformation. Gatete said, “This report is a ritual, but also highly ambitious on the ground it covers hence gives out more in-depth discussion about the right policies to facilitate greater trade and foster industrialization in Africa.” “Such discussions should not be about the importance...

East African governments could be forced to raise taxes for their citizens as they move towards a common currency. Rwanda, Burundi, Uganda, Kenya and Tanzania have agreed to keep the gross public debt ceiling at 50 per cent of GDP in net present value terms as part of the EACs primary macroeconomic convergence criteria. Countries are expected to observe and maintain the criteria for three consecutive years in the run-up to the adoption of the monetary union and single currency in 2024. “This means that government spending will be controlled and countries will not be allowed to borrow beyond the set limit, forcing them to look for the other ways of generating revenue to fund their projects,” said Peter Njoroge, director of economics at Kenya’s Ministry of EAC Affairs, Commerce and Tourism. “The majority of countries look to raising taxes for their citizens to generate funds to run projects. They also include the other groups of citizens that were previously not in the tax bracket, such as non-governmental organisations, to generate revenue.” According to Mr Njoroge, the 50 per cent ceiling is likely to constrain EAC countries from undertaking huge infrastructure projects to avoid exceeding the debt ceiling. Alternatively, countries may be forced to phase the implementation of the huge projects in such a way that they do not break the debt ceiling thus projects take longer to implement. “In a way, it will instil fiscal discipline among partner states,” he said. “But the agreed upon ceiling will start applying...

East African partner states are working towards ensuring people can move and work freely in the region by December 31. Immigration and labour experts from Uganda, Tanzania, Burundi, Rwanda and Kenya have jointly proposed harmonised classification, procedures, forms and fees for issuance of entry/work/ residence permits for the EAC citizens into the partner states. This is expected to be adopted before December 31. But the partner states have divergent views on the harmonised work permit classifications for non-EAC foreigners, including diplomats, employees of international and civil society organisations, refugees, and foreigners seeking permanent residence. Mary Makoffu, EAC director of social sectors said that although the partner states have divergent views on foreign classifications, consultations are ongoing and a final report is expected in September for review by the EAC Labour ministers before it is presented to the Heads of States in November for approval. “The divergent views on some of the proposed classes will give guidance on the way forward in harmonising the classification of the work permits,” said Ms Makoffu. Tanzania was of the view that class D1 and D2, involving diplomats and employees of international organisations respectively, should not be provided for in the harmonised classifications since they are covered in other protocols. Burundi, Kenya, Rwanda and Uganda said that the classification should be maintained. “EAC countries need to prioritise harmonising procedures and work permit fees, labour laws and review their social protection Acts for their citizens to ease the free movement of labour in the region,” said...

The United Nations Conference on Trade and Development and TradeMark Africa have signed a memorandium of understanding (MoU) to boost trade in East Africa. According to a statement issued, the MoU signed in Geneva, Switzerland will help to boost trade in the region through collaboration trade and gender, trade facilitation, including customs automation and trade portals and improving port infrastructure. "UNCTAD is excited about this new partnership with Trade- Mark East Africa. This partnership reinforces UNCTAD capacity to assist East Africa in the implementation of trade enhancing reforms," the Deputy Secretary General for UNCTAD, Joakim Reiter is quoted as saying during the contribution agreement signing ceremony. Speaking at the signing ceremony, TradeMark CEO Frank Matsaert noted that trade infrastructure is critical to East Africa's prosperity and in creating the much needed jobs in the region. Currently, East Africa's trade corridors are characterised by long transit times and high costs. Freight costs per kilometre are more than 50 per cent higher than costs in the United States and Europe and for the landlocked countries, transport costs can be as high as 45per cent of the value of exports, he said. "We are delighted to enter into a MoU with UNCTAD which provides a platform for cooperation between our two organisations. This will help us work together with our partners in the EAC in a more coordinated way in such areas as implementing the Bali TFA and women in trade," he said. Source: All Africa