FINALLY, the government announced what we had been waiting to hear so eagerly. Transport Minister Samuel Sitta told reporters last Sunday that construction of a standard gauge railway to link the hinterland of the East African region with the port of Dar es Salaam will begin this year. The 2,561 kilometre long railway, estimated to cost 14 trillion/-, will begin at the port of Dar es Salaam and serve the landlocked countries of Zambia, Rwanda, Burundi, Uganda and the eastern Democratic Republic of Congo. It will have spur lines to Kigali, Bujumbura and Masaka. The railway project, which is expected to be accomplished within five years, is meant to ease movement of cargo by rail, which is cheaper and carries more freight than road transportation. The announcement happened after Presidents Yoweri Museveni of Uganda, Paul Kagame of Rwanda and Pierre Nkurunziza of Burundi flagged off block trains to their countries from Dar es Salaam using the Central Railway line. The block trains are designated to transport exclusively, consignments directly to Burundi, Democratic Republic of Congo (DRC), Rwanda and Uganda, without any interruptions or delays. The cargo will be transported directly from the Dar es Salaam Port to the borders of the respective countries where they will be received by local trains. It is projected that the time used to reach the final destination will be cut down from two weeks to just two days. The challenges of upgrading and expanding Africa’s transport network are manifold but the rewards are enormous....

Reports that the East African Legislative Assembly (Eala) has passed a law aimed at compelling member states to eliminate trade barriers and end protectionism is long overdue. It is quite worrying that despite the good intentions of the East African integration some of the partner states have been guilty of hindering smooth trade relations between them. It is our utmost hope that the Elimination of Non-Tariff Barriers Bill, 2015, sponsored by the Council of Ministers and passed by the assembly will be assented to by the heads of state so as to ensure that integration within the bloc becomes a reality rather than mere talk. As stated by the Council of Ministers, the non-tariff barriers that exist in the countries that form the East African Community should be eliminated for the integration process to succeed. We concur as it would be an exercise in futility for the bloc to pass a law that is not enforceable within the borders of a partner state. The proposed law will bar the member countries from imposing any new trade barriers while seeking to identify and remove existing hurdles. We have stated before that the only way a conducive trading atmosphere can be created in the region is if all members read from the same script and avoid actions that only hamper local and regional production. Following the launch of the Common Market Protocol in 2010, many expected the transition to be smooth. However, this has not been the case as internal disputes have...

Next month, Indonesia will be hosting the commemoration of the 60th anniversary of the 1955 Asia-Africa Conference. According to Indonesian President Joko Widodo, the commemoration aspires to remind the world that Indonesia played a significant role in the anti-colonial struggle. Amidst complex contemporary global politics, it will be a challenge for Jokowi to convince the world that this Asia-Africa gathering is necessary and relevant. Institutionalizing effective cooperation between the two continents should be a priority. Ten years ago, Indonesia hosted the Asia-Africa Conference golden jubilee, out of which came the New Asian-African Strategic Partnership (NAASP). At that 2005 summit, Asian and African leaders agreed to revive the 1955 Bandung Spirit, whose one aim was to advance cooperation between the two continents. The NAASP expanded the form of Asia-Africa engagement from merely non-aligned and anti-colonial rhetoric to broader cooperation. Since then, there have been several projects and programs under the NAASP banner, from diplomatic training and technical cooperation to a business forum. Nevertheless, the NAASP receives little in the way of either public attention or political will. Does the NAASP really boost Asia-Africa relations? That is unclear. Certainly, interactions between Asia and Africa are growing, especially on economic matters, but they do not appear to be driven by the NAASP. Asia and Africa currently lack any formal institutional links, despite the long-standing rhetoric of Asia-Africa solidarity. This is in contrast to Asia’s relations with other continents, which have been developed in institutions such as the Asia-Europe Meeting (ASEM) and the Forum...

Despite the endeavor by EAC heads of state to advocate for the removal of all trade barriers on the so-called Northern Corridor, Rwandan importers are still crying over what they consider as trade barrier at Mombasa port. The Northern Corridor describes a network of roads, railways, and pipelines that serve the most important transport route in the EAC; from the Kenyan port of Mombasa, through Kampala, to Kigali, Bujumbura, and the DRC. At a one day event organised by the Kenya Ports Authority in Kigali on March 18 to discuss the efficiency of Mombasa port, Rwandan traders said its officials; including KPA Director General Gichiri Ndua, are part of the problem on this route. They said goods clearance at the Mombasa port is still a big problem and requires urgent interventions if the free movement of goods on Northern corridor is to become a reality. Experts say trade barriers along this route lead to high trading costs which, in turn, mean high prices for traders and consumers; especially in landlocked countries like Rwanda. It’s predicted that if such obstacles continue to increase, it will tempt traders to hike prices which eventually has a negative impact on the economy. Jean Baptiste Gasangwa, a Rwandan businessman based in Mombasa said the port authority officials have poor management systems leading Rwandan traders to sometimes fail to have their goods cleared because of inefficiency. He says this has continued to hamper their operations. Gasangwa, who also acts as Rwanda Private Sector Federation representative at...

OVER 80 percent of Non-Tariff Barriers (NTBs) reported through the online system developed within the tripartite COMESA-East African Community and South African Development Community (SADC) has been resolved. According to a status report presented at the ongoing COMESA policy organs meeting in Addis Ababa, 476 NTBs have so far been reported on the online system, http://www.tradebarriers.org out of which 385 have been resolved. At least seven were considered non-actionable. A press statement issued by COMESA Secretariat Public Relations Officer Mwangi Gakunga on the 18th COMESA Summit, currently, eight categories of NTBs have been identified as most restrictive to trade in the region. They included government participation in trade and restrictive practices tolerated by governments; lengthy customs and administrative entryprocedures; technical barriers to trade and sanitary and phyto-sanitary measures. Others were specific limitations including quantitative restrictions, and quotas; charges on imports; transport, clearing and forwarding; and issues related to transit clearance; and other procedural restrictions. It was notable that no NTB of the SPS related category have lately been reported meaning that member states are applying the health and sanitation measures judiciously,” he said. “Part of the reason why reported NTBs take long to resolve is the different understanding the parties involved have regarding them,” says the report. Customs and administrative entry procedures lead in the number of NTBs reported at 37 percent followed by transport, clearing and forwarding with 17 percent and other procedural problems with 15 percent. The three categories account for 69 percent of the reported NTBs. “The...

Individuals and firms seeking services from the Rwanda Standards Board will no longer be required to make multiple trips to the agency's offices, following the launch of an information portal that allows the public to access the services online. The portal, developed with the support of Trademark East Africa, seeks to reduce time taken to disseminate information as well as different operations such as standard development processes, application for certification and testing and certification services, among others. The portal's launch comes a day after the government was urged to exploit electronic governance to rally various stakeholders behind service provision at the e-Governance Forum, convened by the Ministry of Youth and ICT, and the Commonwealth Telecommunications Organisation, in Kigali earlier this week. Speaking at the portal's launch in Kigali, yesterday, RSB director-general Mark Cyubahiro Bagabe said the online provision of the service was in line with the body's ambitions to improve convenience and efficiency in service provision. He said the platform would not only increase efficiency but also ensure accountability to the public during service delivery. "The portal is made up of an internal management information system for internal processes and external systems for service seekers to benefit from. With the automated system the private and public sector will be able to enjoy tried and proven technologies that will be able to deliver services efficiently," Bagabe said. Source: All Africa

NAIROBI (Xinhua) -- Investments in trade infrastructure as well as the removal of bureaucratic and procedural barriers to economic integration have positioned the East Africa region as the destination of choice for doing business, a study has shown. A study published on Wednesday by the TradeMark Africa (TMA), a donor-funded organization formed to help regional states speed up integration, said the harmonization of product standards has expanded the East African Community (EAC) trade basket. Encouraging results achieved over the past year, including investments in key ports have resulted in reduced cargo transit times on East Africa’s main transport corridors, and accelerated implementation of the EAC’s Single Customs Territory, said TMA Annual Report. TMA Chief Executive Officer Frank Matsaert said the reduction of average time to clear goods at Kenya’s Mombasa port and transport them to Kampala, Uganda to fours days has buoyed the investments in the EAC region. Matsaert said the reduction in the number of customs declarations by 90 percent leading to an increase in trade volumes, an example of fuel imports into Uganda which has increased from 32. 1 million litres to 108 million litres are behind surge in investments. "The results presented in this annual report point to an ever improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa," he said in Nairobi. He said poor infrastructure, delays in cargo clearance and customs procedures at the port contribute to the high cost of doing business along the transport corridor....

KAMPALA, Uganda - Transport costs in East Africa are around 60% higher than those in the United States or Europe and this is complicated by the many underdeveloped supply chains which keeps rates up. The British government’s Department for International Development (DfID) has come up with a $16 million fund to pay for ideas that would provide practical savings for East African business people and traders. More money is being sourced. Consultancies and other firms are being invited to offer solutions that will help business people reduce their regional transport costs Over seeing Logistics Innovation for Trade (LIFT), is TradeMark Africa (TMA) who are already at the centre of streamlining cross-border trade across the region “Its aim is to encourage the private sector to invest in East Africa’s logistics and transportation industry, testing out fresh innovations that will help bring down the significant barriers to trade that slow the region’s economic development,” Frank Matsaert, the TMA chief executive officer said recently. He said, “The idea is that LIFT will shoulder part of the perceived risk of investing in East Africa and reduce the cost of entry for companies eyeing the region.” Deadline for applicants is tomorrow, but by last week more than 30 private firms had applied for grants in the first round. Matsaert said, “One example of the type of innovation TMA hopes to trigger through the grants is the development of electronic platforms allowing small businesses to jointly buy space on a truck rather than individually bearing the...

WASHINGTON: Senior officials from East African countries agreed during a workshop that significant progress had been made over the past five years in expanding and improving national accounts statistics and in implementing several 2008 System of National Accounts recommendations. They participated in the IMF’s East African Regional Technical Assistance Center (East AFRITAC) workshop in Zanzibar, Tanzania. Thirteen officials representing the East African Community (EAC) and national statistical offices of Burundi, Eritrea, Ethiopia, Kenya, Malawi, Rwanda, South Sudan, Tanzania and Uganda took part in the East AFRITAC harmonization workshop during February 16-20, 2015. For each country, the economic statistics strategies were presented and discussed. In addition to harmonizing the national accounts, the statistical offices for Burundi, Eritrea, Ethiopia, Malawi, and South Sudan will continue to focus on implementing the General Data Dissemination System; while those of Kenya, Rwanda, Tanzania and Uganda will focus on implementing the Special Data Dissemination Standard. The workshop also helped to ensure that the technical assistance program for real sector statistics is closely aligned with member countries’ needs. The knowledge acquired by participants will contribute to improved planning and implementation of macroeconomic statistics development work in East African countries. Source: Customs Today

* Region has made big oil, natural gas discoveries * Infrastructure a barrier to regional trade By Fumbuka Ng'wanakilala DAR ES SALAAM, March 26 (Reuters) - The leaders of five East African countries went on a charm offensive on Thursday to lure investors for a massive plan to upgrade infrastructure in the region that has made big hydrocarbon discoveries. Tanzania, Kenya, Uganda, Rwanda and Burundi, whose combined economies are worth a total $110.3 billion, are working to package joint infrastructure plans aimed at boosting trade and speeding up economic integration in the region. Oil and gas discoveries in Kenya, Uganda and Tanzania have turned the region into an exploration hotspot. "East Africa is a good bet for investors ... this is about mutually beneficial and profitable investments, for all stakeholders involved whether public or private," Rwandan President Paul Kagame told an investor conference in Dar es Salaam on Thursday. The East African Community (EAC), which groups the five countries, said in a 2015-2025 strategy document it needs between $68 billion and $100 billion over the next decade to build roads, ports, railways, transmission lines and oil and gas infrastructure. Tanzania plans to upgrade its railway and connect land-locked Zambia, Uganda, Rwanda, Burundi and eastern Democratic Republic of the Congo to its Dar es Salaam port through a 1,300 km (780 miles) central corridor. Tanzanian transport officials said the government was in talks with CANARAIL, a Canadian rail consulting and engineering firm, for the construction of a 1,464km standard gauge railway...