HISTORICAL reasons explain why the Kenyan industrial base is much more advanced in comparative terms to other East African countries Tanzania included. However, it is significant to note that not all that was Azimio la Arusha was negative. Today, Tanzania has plenty of homegrown cottage industries owned by ordinary Tanzanians. Mr. Mazzari Taj Mohammed is one such Tanzanians who produces honey packaged as Asali One. The product, like many Tanzanian made products are struggling to capture the East African market. There are several reasons why Tanzanian exports, despite being the leading export partner to Kenya do not earn the exports as much money as they should. Chief among them is that Tanzania exports raw unfinished goodsmaize, beans, potatoes, tomatoes and onions among others. Tanzania even exports cashew nuts in its unprocessed form to Kenya. The politicians will scream blue murder that the Kenyans are engaging in economic sabotage. In reality there is no such government policy by the Kenya Government just like the Tanzanian government has no policy to exploit its own farmers due to their vulnerability. What individuals entrepreneurs like Mzee Mazzari of Asali One lack most of all, is not hunger for markets but market awareness. This past week, Traidlinks a development organisation funded by the Republic of Ireland, and Trademark East Africa brought together some 15 or so local producers who are ready for the export market to give them skills necessary to capture the existing glut which is currently filled by brands from all over the...

The East African employers and trade unions have called on EAC partner states to fully implement the trading bloc’s Common Market Protocol which came into force in July, 2010. The East African Trade Union Confederation (EATUC) and the East African Employers Association (EAEO) asked EAC partner states to work towards eliminating all non-tariff barriers (NTBs) in an effort to promote free movement of labour in the region. This was revealed in a meeting called by the speaker of EALA aimed at making a case on facilitation for freer movement of labour, persons, services, capital and goods Source: Business Week

The East African Community Heads of State Summit in Nairobi resolved that, following the implementation of the One Network Area by Kenya, Rwanda and Uganda, all the EAC countries should harmonise their calling rates on all networks by July. To meet the deadline set by the EAC presidents, the Council of Ministers has already adopted the principles and methodology for determining reduced, harmonised EAC roaming rates and a plan of activities that will ensure the reduced rates are in place by the set date. The EAC Heads of State have also directed the Secretariat to provide the Partner States with a list of protocols that have not yet been ratified and these do include; Vehicle Load Control Bill (2012), Defence Cooperation Protocol and the EAC Peace and Security Protocol. The Summit also approved key priority interventions to be implemented over 2015/2016 and these do include; consolidation of the Single Customs Territory Road map for the implementation of the Single Customs Territory; Vehicle Load Control Limit;Implementation of the Heads of State Prioritised projects in railways,ports,inland water ways and energy; conclusion of negotiations of the Tripartite Free Trade Area Source: The East African

Three little boys in Kigali are sharing a lollipop. They lick it in turns. The lollipop is imported, so 45 per cent of its cost is due to transport and allied costs. It may have been made in Kenya or Tanzania or even farther afield, and it has travelled thousands of kilometres and crossed several borders. So whichever of the boys bought that treat, he’s paying part of the freight clearance charges, handling charges, insurance, fuel costs and the salary of the trucker who got it to the Rwandan capital. Logistics is a critical yet easily neglected component of economic development. Investment in agriculture is futile if there is no supply chain in place to get produce to market. Essential medication is rendered ineffective if it cannot be transported in the appropriate conditions. Consumer goods cannot improve people’s lives if the cost of importing them means they are too expensive for people to access. Yet in discussions of “sustainable development goals” or “poverty reduction,” there is too often a tendency to focus on headline targets and forget about the mechanics of delivery. In East Africa, transport and freight costs are among the highest in the world, with freight logistics expenditure more than 50 per cent higher per kilometre than in Europe or the United States. This extra cost is caused by a “logistics gap”: a lack of infrastructure, technology and expertise affecting everything from road networks to payment systems and warehousing facilities. In landlocked countries like Rwanda and Burundi, this...

What is the economic outlook for the region in 2015, and what are the risks? We expect sub-Saharan Africa to register a growth of 4.7 per cent, accelerating to 5.2 per cent in 2016. The risks include the slow growth environment in advanced economies particularly the Euro area and Japan; the potential volatility and financial disruption as a result of monetary policies operating at different places in the cycle; geopolitical risks and any others that suddenly hit the globe. For example, a year and half ago, we never talked about Ebola because it wasn’t an issue. Now it has affected countries in West Africa. There are concerns about debt with the International Monetary Fund. Kenya, for instance, has been borrowing from the IMF. What are the long-term solutions to foreign exchange support loans for African countries? Kenya asked for a precautionary loan — it is a progression that we observe concerning Kenya and one that is moving in the right direction because it is an indication that the country is more solid economically. A country such as Kenya, depending on how the oil market pans out, could find itself with a good balance of trade and improve its balance of payments. Given that domestic resources in the region remain meagre, how can countries avoid accumulating high debt while addressing infrastructure gaps? The critical choice hinges on what infrastructure projects are prioritised and how they will provide a return that helps the country financially so that it is on a stronger...

South Sudan and Somalia’s applications to join the East African Community (EAC) is one of the main agendas the regional heads of States will be discussing today in Nairobi. The 16th Ordinary Summit of the East African Community Heads of State will be held Friday at the Kenyatta International Conference Centre, Nairobi. “Negotiations for the admission of the Republic of South Sudan into the EAC, verification of the application of the Federal Republic of Somalia will be priority matters on agenda,” EAC secretary general Dr Richard Sezibera said. Last year, the government of South Sudan pleaded with the EAC member states not to reject them because of the violence that had engulfed the country. The Vice President of the Republic of South Sudan, Mr James Wani Igga, while meeting the EAC high level technical mission, said: “South Sudan, being a young nation, still needs support and integration from the “older” nations within the region”. In June 2011, South Sudan applied to join the bloc, and a verification Committee from the EAC visited the country a year later to establish its level of conformity to the EAC regulations. However, in April last year, South Sudan halted negotiations because of the war that broke out towards the close of 2013. Source: The East African

East African Community (EAC) Heads of State on Friday took note of a revised roadmap for the completion of the EAC institutional review exercise and directed the Council of Ministers to ensure that the process was finalized within the revised timeframe. They made the call during the ordinary Summit held in Nairobi, Kenya, which, according to a final communiqué, directed the Council of Ministers to submit final recommendations during the next Summit. Nathan Ngoga Gashayija, Director of the EAC Programmes Coordination Unit in Rwanda’s Ministry of EAC Affairs, said that ministers had recommended that the exercise is finished as soon as possible. “In the ministerial meeting, before the Summit, it was recommended that the exercise is done by April but I don’t know if this was later changed,” Gashayija said, adding: “Everybody wants this concluded”. The Council in 2009 directed the Secretariat to undertake a comprehensive study and propose institutional reforms to boost efficiency. Last month, the Accounts Committee of the East African Legislative Assembly (Eala) established that the long overdue review to align EAC institutions with the expanding mandate of the bloc was costing the Community a lot of money. MP Peter Mutuku Mathuki (Kenya), a member of the Eala Accounts Committee, said the exercise was basically about assessing the capacity of personnel and resources. The Assembly noted that the delay was negatively impacting on the implementation of the Common Market Protocol, the second stage of the regional integration process that involves free movement of goods, labour, services and...

Charges for telephone calls across East Africa are set to reduce in July, when countries abolish roaming fees following a directive by the heads of state. The East African Community Heads of State Summit in Nairobi resolved that, following the implementation of the One Network Area by Kenya, Rwanda and Uganda, all the EAC countries should harmonise their calling rates on all networks by July. Calls within the network have already reduced by 12 US cents per minute while there are no charges for incoming calls since the One Network Area was implemented last year. “We acknowledge that the high cost of roaming calls within the East African partner countries is unnecessary and an impediment to trade and communication in our Community. It is unacceptable that calling outside our continent is much cheaper than communicating within the region. In the spirit of East African integration, innovative interventions leading to substantial reduction of calling charges are overdue,” said Kenya’s President Uhuru Kenyatta. There have been ongoing negotiations to remove the interconnectivity fees charged by operators for international voice and data traffic, with roaming charges within the EAC to be cut by 60 per cent. To meet the deadline set by the EAC presidents, the Council of Ministers has already adopted the principles and methodology for determining reduced, harmonised EAC roaming rates and a plan of activities that will ensure the reduced rates are in place by the set date. “The implementation of One Network Area by Rwanda, Kenya and Uganda is...

NAIROBI, Kenya, 20th February 2015 – The East Africa Community member states have unveiled a state of the art video conferencing system which is aimed at drastically reducing the staff and travel costs at the EAC secretariat and member states and ensuring cost-efficiency gains in communication and decision-making. The launch which was held during the 16th Ordinary Summit of the East African Community Heads of States at the Kenyatta International Conference Centre, was presided by the chair of the summit H.E Jakaya Mrisho Kikwete, President of the United Republic of Tanzania, and flanked by his fellow heads of state from the region; H.E. Pierre Nkurunzinza, President of Republic of Burundi, H.E. Uhuru Kenyatta, President of Republic of Kenya, H.E. Paul Kagame, President of Republic of Rwanda and H.E. Yoweri Museveni, President of Republic of Uganda. Also in attendance was Amb. Dr. Richard Sezibera, Secretary General, EAC, Phyllis Kandie, Cabinet Secretary of Tourism, Commerce and East African Affairs and Frank Matsaert, CEO, TradeMark Africa (TMA). TMA provided funding for the system to a tune of $1.8million. Since 2011, TMA has been implementing a programme of support aimed at strengthening the technical and institutional capacity of the Secretariat. As part of a broad institutional reform programme that is on-going, and particularly as part of the Secretary General’s drive to realise cost-efficiency gains in communication and decision-making, the Council approved the acquisition and installation of a Video Conferencing System (VCS) for the Community. The key benefits are enhanced efficiency in communication and savings...

Kenya: East Africa Heads of State will tomorrow appoint a committee of experts to draft a constitution to guide the establishment of a political federation in the region. The move to appoint the committee with members drawn from the five countries is part of the 30th extra-ordinary meeting of the Council of Ministers report to be presented to the presidents for consideration and approval tomorrow. The meeting will be held at Kenyatta International Convention Centre (KICC). The Secretary General East African Community ( EAC) Secretary General Richard Sezibera said the Heads of State will approve the initiation of a constitution-making process and a road map for the regional bloc political federation. “Negotiations for the admission of the Republic of South Sudan into the EAC, verification of the application of the Federal Republic of Somalia, progress towards establishment of a one area network for East Africa and implementation of the directive of the summit on extension of jurisdiction of the East African court of justice are priority matters to be discussed,” he said.. President Jakaya Kikwete of Tanzania, Pierre Nkurunziza of Burundi, Yoweri Kaguta Museveni of Uganda and Paul Kagame of of Rwanda are expected to join President Uhuru Kenyatta at the 16th Ordinary Summit of the EAC Heads of State. EAC secretariat A senior official at the EAC secretariat, who did not want to be quoted as the matter is yet to be discussed by the Presidents, said the proposal to select a committee of experts was agreed during the...