News Tag: Rwanda

EAC leaders waive permit fees for citizens

If you are a graduate within the East African Community, you could look beyond your country for a job opportunity. Presidents of Uganda, Kenya and Rwanda have agreed to waive working permit fees for citizens within the regional bloc. Speaking to journalists at the Ministry of Foreign Affairs headquarters in Kampala, Okello Oryem, the state minister for foreign affairs said that Presidents Yoweri Museveni (Uganda), Uhuru Kenyatta of Kenya and Paul Kagame (Rwanda) agreed during the recently concluded 9th Northern Corridor Integration Projects Summit in Kigali, Rwanda on March 7, 2014 that professionals should freely seek opportunities within the member states. However, Oryem said, that the waiver only applies to professionals and that member states would reciprocate the same. “Uganda, Kenya and Rwanda professionals can now work within the member states freely. However, one should be a professional. If you are a riffraff, cleaner, sweeper, office messenger or serving tea, we don’t want you in Uganda. This waiver only applies to professionals,” he said. Before the waive on permit fees, citizens within the EAC member states were required to apply for a work permit if they were to seek opportunities in any state within the bloc. At the Kigali Northern Corridor Integration projects summit, Presidents Jakaya Kikwete (Tanzania) and Salva Kiir (South Sudan) attended in a move observers said would improve the joint implementation of the various infrastructure development projects that EAC leaders want to implement. The Northern Corridor brings together Rwanda, Uganda, Kenya and South Sudan. Tanzania, Burundi, and...

China outwits peers, dominates EA’s major infrastructure projects

China accounted for over Sh1.8 trillion ($20 billion) worth of infrastructure development in East Africa last year, indicating the country’s growing influence in the region’s infrastructure development. New data shows that the Asian dragon’s share of the region’s Sh5.4 trillion ($60 billion) large infrastructure projects almost doubled from 19 per cent in 2013 to 31 per cent in 2014. According to the third edition of the annual Deloitte African Construction Trends Report 2014, China continues to bolster its lead in bagging mega-construction tenders in the region. “In terms of construction, China is still leading and maintains a strong foothold,” stated Mark Smith, head of infrastructure and capital projects at Deloitte East Africa. In 2013, Europe and the US accounted for 37 per cent of infrastructure construction but this share has since shrunk to 18 per cent in 2014. The report states that the number of mega-construction projects in East Africa declined by 55 per cent with the value of the same shrinking by 10 per cent, from $67 billion (Sh6 trillion) to $60 billion (Sh5.4 trillion). “Our view is that while there has been a dip in current activity, there are a large number of significant projects in the planning phase that have not yet reached financial close and are thus not yet reflecting in the statistics of projects under construction,” explained Dr Smith (pictured). In East Africa, transport projects took the bulk of the infrastructure spend accounting for 59 per cent of the projects with energy projects accounting for...

EAC told to weigh pros, cons of single income tax rates

East African member states have been advised to make critical assessment of single income tax rates. A law expert, Anatoly Nahayo said recently in Dar es Salaam after launching his book titled “East African Community Tax Harmonisation.” He said the move will ease allocation of capital shares within EAC member states especially mobile capital. “Member states should find ways to agree in this matter. Otherwise, it will be difficult to shift to a common market effectively,” he said. Elaborating, he said, currently, ministers of finance in the member states have been given power to exempt tax and no one has to judge. He also said the EAC member states should debate on tax harmonisation and put in place laws that will govern it. He said there are many challenges that need to be addressed so as to create fairness particularly in employment around the bloc whereby workers move from one country to another in search of a job. There are double charges recorded to the workers moving from one country to the other especially rates charged on pensions and charged in general. Nahaya explained that if checked, all workers moving to another country within the bloc will be charged the same tax rates. Nahana further said there is no democracy to protest the decision of finance ministers to exempt individual businessmen or company. “It’s high time our local experts addressed national issues in the EAC. Currently, there is no tax harmonisation in the regional bloc,” he said. On April 9,...

Africa acts to shake off Ebola stigma

The impact of the deadly Ebola virus has fallen mainly on three African countries but tourism has taken a hit across the continent, tourism chiefs say. About 56 million people visited Africa in 2014, a two-percent rise from the previous year, according to UNWTO figures. However, growth lagged behind that in Europe, Asia and the Americas. And the increase was also down on the robust 4.8 percent gain a year earlier. "Africa has done well in spite of suffering from the Ebola symptoms which were associated unfairly" with Africa as a whole, UN World Tourism Organization (UNWTO) head Taleb Rifai said at the Berlin tourism fair (ITB) on Friday. Africa needed support, especially after the Ebola crisis, he said, adding: "It was very unfair the generalisation that happened." Marie France Adieme-N'Dja, of Ivory Coast's tourism office, said Ebola had created panic. "We have operators who have had cancelled bookings because of the fear of Ebola. However, in Ivory Coast there has not been a single case," she said. Showing off its nine national parks and 550 kilometres of sunny beaches, the Ivorian tourist office is one of many African stands at the ITB trying to woo back visitors as the epidemic appears to have been brought under control. Almost 24,000 people have been infected with the Ebola virus since December 2013, almost all in Liberia, Guinea and Sierra Leone, and 9807 of them have died, according to the WHO. The countries at the centre of the epidemic are forecast to...

EAC picks China to fund growth projects

China is set to be a key player in the financing of key Northern Corridor Integration Projects (NCIP), going by a recent resolution by East African Community member states. There are 14 projects under the NCIP, including the standard gauge railway. Other aspects include ICT, oil refinery development and fast-tracking the political federation. The 9th northern corridor summit held in Rwanda last week chose China to finance the projects. Ministers of Finance and Infrastructure were also directed to take the necessary steps to start the arrangements. They were told to consolidate the financial requirement, structure and mainstream projects, appropriations in the financial year 2015/ 2016 and subsequent national budgets. “The ministers are also directed to expedite the joint mission to China to source financing as per the directive for the NCIP,” read the summit’s joint communiqué. Finance ministries in partner states are expected to coordinate funding of the projects. The initiatives, if implemented, will have a significant impact on the lives of East Africans. South Sudan and lately Burundi will ultimately benefit from this renewed commitment to the EAC integration. In attendance were Presidents Uhuru Kenyatta (Kenya), Paul Kagame (Rwanda), Yoweri Museveni (Uganda) and South Sudan’s Salva Kiir. EAC chairman and Tanzania President Jakaya Kikwete, Burundi’s 2nd Vice-President Gervais Rufyikiri and Ethiopia’s Foreign Affairs Minister Tedros Adhanom attended as observers. President Kenyatta pointed out that greater inter-connectivity of the East African region would increase the ability of member states to trade with each other. Source: Daily Nation

Cost of doing business in East Africa down by 50pc as reforms reduce red tape

Kenya: The Single Customs Territory (SCT) regime introduced by East African countries a year ago has reduced the cost of doing business by about 50 per cent in the East Africa region, according to Kenya Revenue Authority ( KRA). The system has reduced the time taken to move cargo across the region from 18 days to three between Mombasa and Kampala and 21 days to six between Mombasa and Kigali. Addressing Mombasa port users at a Mombasa hotel, KRA Chief Manager Customs Service Department, Ebby Khaghuli said it has taken political goodwill to achieve the high performance in cargo delivery in the East African Community (EAC). In a presentation on the SCT status, Ms Khaghuli said the new system was achieved through great sacrifice by the states because no consultants or donors were involved in the process. She said the human and financial resources were met by each customs administration. The system is being implemented by revenue authorities in Kenya, Uganda, Rwanda and Burundi amid protests from Kenyan clearing and forwarding agents who claimed it has cost them jobs and business opportunities. "An analysis in EAC region has shown that the SCT has reduced the cost of doing business by about 50 per cent since implementation and the time taken to move cargo across the region from 18 days to three from Mombasa to Kampala, and 21 days to six days from Mombasa to Kigali. It takes political goodwill to achieve what has been achieved in the EAC region," Khaghuli...

How integration will lead to EA’s prosperity

East African ministers and secretariat members hold 800 meetings each year. That is an average of three meetings each day, all aimed at navigating the complex nature of the East African Community’s integration process. For 11 years now, Kenya, Uganda, Tanzania, and more recently, Rwanda and Burundi, have been on a journey towards achieving regional political and economic harmony. Over this time, the value of the region’s combined product output has risen to Sh6.8 trillion ($75 billion), according EAC’s Secretary General Richard Sezibera. But behind the relative success of the process lie many missteps and criticisms. The most recent is the diplomatic tussle between Kenya and Tanzania on tour van access to airports and tourist sites. TradeMark Africa (TMA) is one of the institutions in a caucus of government ministries, development partners, civil society watchdogs and non-governmental organisations forming a support system for the EAC’s delicate walk towards regional integration. Business Beat sat with TMA’s Chris Kiptoo (country director) to discuss the integration process and the opportunities and challenges that exist. How far, in your opinion, would you say we are from achieving our regional integration goals. Considering the complexity and scope of the integration agenda, and the fact that integration requires ceding some degree of national sovereignty, the EAC partner states have made substantive progress in achieving regional integration goals. Indeed, EAC is often seen as one of the economic blocks that has made the greatest progress across the continent. The EAC region is now a common market, ushering...

EAC told to weigh pros, cons of single income tax rates

East African member states have been advised to make critical assessment of single income tax rates. A law expert, Anatoly Nahayo said recently in Dar es Salaam after launching his book titled “East African Community Tax Harmonisation.” He said the move will ease allocation of capital shares within EAC member states especially mobile capital. “Member states should find ways to agree in this matter. Otherwise, it will be difficult to shift to a common market effectively,” he said. Elaborating, he said, currently, ministers of finance in the member states have been given power to exempt tax and no one has to judge. He also said the EAC member states should debate on tax harmonisation and put in place laws that will govern it. He said there are many challenges that need to be addressed so as to create fairness particularly in employment around the bloc whereby workers move from one country to another in search of a job. There are double charges recorded to the workers moving from one country to the other especially rates charged on pensions and charged in general. Nahaya explained that if checked, all workers moving to another country within the bloc will be charged the same tax rates. Nahana further said there is no democracy to protest the decision of finance ministers to exempt individual businessmen or company. “It’s high time our local experts addressed national issues in the EAC. Currently, there is no tax harmonisation in the regional bloc,” he said. On April 9,...

Sisi – Egypt to Host Tripartite Summit of EAC, SADC, Comesa

President Abdel Fattah El Sisi said on Sunday 8/3/2015 that Egypt would host in 2015 the Tripartite Summit of the East Africa Community (EAC), the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). This came during a meeting held between Sisi and African ambassadors accredited to Egypt, Presidential Spokesman Alaa Yousef said. The meeting was attended by Foreign Minister Sameh Shoukry and Presidential Adviser for National Security Affairs Fayza Abul Naga, he added. At the beginning of the meeting, Sisi welcomed African ambassadors and informed them of Egypt's keenness on strengthening ties with all African countries, Yousef noticed. Sisi shed light on the importance of boosting cooperation and dealing with joint issues especially the terrorism issue. All African countries should promote solidarity to handle economic and social problems faced by their peoples, Sisi underlined. Egypt is looking forward to strongly fostering relations with the Nile Basin countries to serve as a model for all African states, Sisi emphasized. Egypt's call for all African countries to attend the Economic Development Conference (EEDC), which will be held in Sharm el Sheikh during the period March 13-15,2015 comes in tandem with its keenness to increase economic cooperation among African countries and expand the role of investment and the private sector in promoting development process in the African continent, Sisi stressed. Source: AllAfrica.com

East African Business Week

NAIROBI, Kenya – Sitting in truck laden with parts of an oil rig, driver Opira Robinson, 45, rests his head on the steering wheel patiently waiting for customs clearing at Lungalunga, a Kenya-Tanzania border post in Kwale, about 101 kilometres south of Mombasa on the East African coast. He is moving the big rig from Pakwach in Northern Uganda heading for Tanzania’s coast. “I can’t wait to get out of here,” Opira says. “It took me a few hours to cross Malaba, but now I have been here two days already and it might take me two more weeks,” Opira said. At least 50 trucks cross through daily, according to Patrick Omare, the Kenya Customs station officer. The main commodities are Kenyan fruits and wheat exports – timber and maize imports from Tanzania. There is also Malawian tea headed for the Mombasa Tea Auction and some Zambian copper also going through the crossing. It is among 35 One-Stop-Border- Posts (OSBPs) that are under construction across the East African Community. The intention is to reduce delays and ensure faster cargo movement across the region. Money is being provided by the World Bank, African Development Bank and the Japan International Co-operation Agency. According to trade facilitation agency, Trademark East Africa (TMA) which is overseeing the posts. “They are aimed at reducing delays by allowing struck carrying goods to stop once, not twice,” said Frank Matsaert, the TMA Chief Executive Officer in an e-mail response to questions said. “Officials will share facilities on...