News Tag: Rwanda

EAC made inroads in 2014: Chief

East African Community (EAC) partner states made significant progress during 2014 in terms of integration by ratifying and implementing several protocols and agreements, the regional grouping's secretary-general has said. "The single customs protocol has been properly implemented in the northern and southern corridors," Richard Sezibera told a Tuesday press conference at the EAC's Arusha headquarters. The northern corridor runs from the Kenyan port city of Mombasa to Ugandan capital Kampala, before continuing on to Rwandan capital Kigali. The southern corridor runs from the Tanzanian port city of Dar es Salaam to Burundian capital Bujumbura and Kigali. Briefing the media on the EAC's achievements in 2014 and the way forward this year, Sezibera said the grouping's five member states had introduced a "single window" at the two ports, the two main entrances to the region. He added that member states had also introduced an electronic cargo tracking system. "All documentation and transactions regarding the movement of goods are done at one point in order to reduce business costs and time spent," said Sezibera. "By implementing the single customs protocol, roadblocks and other non-tariff barriers have been removed or reduced within the entire EAC region," he asserted. The EAC chief went on to note that, during the 2014/15 financial year, member states had invested in numerous road and rail projects. "While Tanzania, Rwanda and Burundi are investing in central railway corridor projects, which will also connect the region to the Democratic Republic of Congo (DRC), Kenya is engaging in a standard gauge...

Fairness should guide East Africa integration

The East African Community (EAC) is a great idea that has borne much fruit and is probably destined to go far. After the unfortunate collapse of the original EAC in the 1970s, the bloc was revived by regional leaders in the 1990s and arguably remains one of the rare achievements of the much-maligned Kanu regime. With time, citizens of the now five countries have come to appreciate the benefits of having the bloc. Interestingly, even a perceived reluctant integration candidate like Tanzania has grown to be Kenya’s most important trade partner with locals especially in the north of the country benefiting immensely from the market provided by Nairobi city. However, the bureaucrats perhaps with the connivance of politicians, do not see the inevitable: that you cannot stop the progress of the economic bloc, even if you were to delay it with a raft of administrative or non-tariff barriers (NTBs). This is because in a voluntary bloc, reciprocity is the driving principal. From Tanzania blocking Kenyan tour vans from accessing Tanzanian game parks to Kenya—in apparent retaliation—blocking Dar buses from dropping tourists at the Jomo Kenyatta International Airport (JKIA), we have seen it all. None of them is wrong or right: there is nothing like free lunch in a bloc though. Yesterday, we reported that regional countries are negotiating to allow airlines to operate freely from all countries without restricting carriers from emanating flights from the country of origin. That will probably cut the rent enjoyed by the likes of Kenya...

Report pushes for levy on imports in regional blocs

Regional blocs including the East African Community (EAC) should introduce a levy on imports to help self-finance its organs, a new report suggests. The regional entities have depended solely on contributions from members yet a number of countries have not been meeting their obligations. A report by the African Capacity Building Foundation (ACBF), a financier of research institutions in Africa for over a decade, said a country facing an economic crisis or catastrophe finds it difficult to pay dues. ACBF said integration schemes such as EAC and the Common Market for Eastern and South African have copied the Eurozone model of regional groupings that depend on member contributions. “A funding mechanism that combines national contributions with independent revenues, such as import levies, would go a long way to helping African regional economic communities become financially independent,” said the report. However, analysts said clarity would be needed on how such a tax is to be implemented because some of the countries may fail to co-operate since the blocs do not have tax collection machinery. “It is very good to have an alternative method of financing regional initiatives such as those we are party to. But the tax also has to be collected by someone. Who is it that would collect it?” asked Joseph Kieyah, principal policy analyst at the Kenya Institute of Public policy Research and Analysis. Prof Kieyah said the levy alone would not achieve much unless there are willing participants in regional integration schemes. He said the citizenry and...

EAC-EU economic partnership agreement

On 14 October 2014, The European Union (EU) and The East African Community (EAC) partner states signed an agreement establishing an economic partnership between the two parties. This Agreement was also signed The Economic Partnership Agreement focuses on trade regimes for goods, fisheries, agriculture, economic and development cooperation, good governance concerning taxes, customs duties on products originating in the EAC partner states, customs on products originating in the EU party and infrastructure. Customs duties should be eliminated on agricultural products originating in the EU. "Customs duties should be abolished at the entrance of the EAC territory." Jean Pierre Bacanamwo from the Ministry in charge of EAC Affairs advised that the commission in charge of the partnership is waiting for EAC Ministers to sign the Agreement. "Then, it will be conducted in the National Assembly and Senate in each EAC partner state to be analyzed before being ratified by the Heads of States and coming into force", stated Bacanamwo. He also noted that the process takes time, and that its implementation should come in by June 2105. Source: All Africa

East African Community to create “single tourist area”-official

The East African Community (EAC), which comprises Kenya, Tanzania, Uganda, Burundi and Rwanda, intends to become “a single tourist area” under its vast regional integration project, APA learns here on Tuesday. We want to make the East African Community a single tourist area with a single tourist visa, EAC Secretary General, Richard Sezibera said during a press conference held at the organization’s headquarters in Arusha, northern Tanzania. The use of the single tourist visa has been in force since last year for Rwanda, Uganda and Kenya which are determined to move faster than the other two members on the path of economic integration. Tanzania has announced that it wants to join the single tourist visa. This is very important. Burundi has also expressed interest in joining the system, Mr. Sezibera said. The regional bloc has however experienced a major crisis over the past two years with Burundi and Tanzania suspecting the other three members of having a hidden agenda and isolating them. The presidents of Rwanda, Uganda and Kenya had met several times in the absence of their counterparts in Tanzania and Burundi to accelerate the construction of large regional infrastructure, including a railway and a pipeline connecting their three capital cities. The tension between Tanzania and Rwanda reached its peak in May 2013 when, Tanzanian President Jakaya Kikwete suggested the holding of direct talks between Kigali and rebels of the Democratic Forces for the Liberation of Rwanda (FDLR) based in eastern Democratic Republic of Congo. Furthermore, a Tanzanian contingent...

One-Border posts will make East Africa better for business

Rusumo border post on the Rwanda Tanzania border now operates a one-stop centre for clearing goods and people crossing the border; the first of its kind in the region. That means that a Rwanda businessman exporting goods overseas, through this border, can have all the paperwork sorted from one point on the Rwanda side of the One-Stop-Border post. Similarly, goods entering the country can have all the customs paperwork sorted from the other side without going through another cumbersome process upon crossing the border. This has been made possible by new facilities put in place under the One-Stop-Border project that bring all officials involved in the process of clearing people and goods under one roof. This has indeed been long-overdue. Traders have for decades complained about the numerous and lengthy customs documentation while crossing borders with the region. This has not only cost them time, but also money as goods unnecessarily delay reaching the market. No doubt, therefore, that this project, if rolled out to all border posts, will eliminate the red tape and enable people and their goods to move faster for the good of all the economy of the whole region. This project therefore comes in handy in accelerating economic integration in the East African Community, by eliminating some of the non-tariff barriers to free and faster movement of goods and services. Beyond regional integration, faster movement within our borders will certainly make the region a better and cheaper place to do business and more attractive to foreign...

Trade talks to bear fruit, says EAC

The East African Community secretariat is optimistic that negotiations on a free trade area between three trading blocs in Africa will bear fruit. A statement by EAC Secretary-General Richard Sezibera, said the region had made significant progress in trade talks between the EAC, Comesa and SADC. “It is my conviction that we are at the tip of a historic agreement that will enable Africa to reclaim her rightful place in the global arena, and lay a solid foundation for a continental free trade area,” said Mr Sezibera. At their first summit in Uganda in 2008, heads of state and government of the three regional economic communities directed that the trio should establish a free trade area with haste. FIRST PHASE OF TALKS A road map and time line for establishing the area were agreed upon, with the first phase of negotiations addressing tariff liberalisation, rules of origin, customs cooperation and customs-related matters, non-tariff barriers, sanitary and phytosanitary measures, technical barriers to trade, trade remedies and dispute settlement. The second phase focuses on negotiating trade in services and trade-related issues, including intellectual property rights, competition policy and trade development and competitiveness. The tripartite agreement is set to open up Africa as a market for products from other trading blocs within the continent. In a recent interview, Kenya National Chamber of Commerce and Industry chief executive Charles Mbogori said the chamber would soon be lobbying to also issue and automate preferential certificates of origin. “We as the chamber believe that the automation...

Sugar, maize imports to test Uhuru’s EAC integration plan

Just weeks after gaining full access to export sugar to Kenya, Uganda is preparing to cause another upset. This time, it is eyeing Kenya’s troubled maize market. And while the debate on sugar has been soured by talk of Kampala being used to dump the commodity in Kenya, now the talk surrounding the grain business is on pricing. At the moment, maize from Uganda is retailing at Sh800 per 90kg bag. Tanzania is also producing maize at relatively cheaper price than Kenya and is fast making headway in boosting its revenue by taking a pie of the local market. The cheaper imports have seen the price of maize in Kenya drop significantly triggering political discontent in some of the ruling coalition’s strongholds. This is likely to test President Uhuru Kenyatta’s leadership in East Africa Community especially on integration which guarantees free movement of goods and labour. The need to calm the political jitters forced Agriculture Cabinet secretary Felix Koskei to announce a change in the price of maize mid-December last year. The government had announced it would buy a 90-kg bag of maize at Sh2,200 only for the minister to increase it to Sh2,300 in less than 24 hours. Free trade area Mr Koskei was reacting to piling pressure from farmers in North Rift who were opposed to the set price saying they wanted to sell the 90kg bag for Sh3,500. Addressing the media at Kilimo House, Mr Koskei said the price was set in line with the prevailing market...

Remove the barriers to trade in East Africa

Tanzanian tour operators have protested after their vans were stopped from dropping passengers at the Jomo Kenyatta International Airport in Nairobi. The development, which no doubt has security implications on Kenya, has been interpreted as a fightback after Tanzania barred Kenyan vans from taking tourists to its game parks. Both these restrictions fly in the face of the campaign to market the East African Community (EAC) as a single tourist destination. Under the campaign, tourists have been urged to apply for a single visa that would allow them to visit any of the countries in the community without border restrictions. If EAC countries are to benefit from this initiative, they need to resolve some of these non-tariff barriers to the free movement of people and goods across their borders. The best solution would be for both countries to ease access to their facilities and installations for users from across the border to the extent that this does not compromise security. Where this is not possible, then there is need for an agreement on seamless exchanges that do not add unnecessary costs. East Africa is making big strides towards greater integration and it needs stronger institutions and mechanisms to resolve disputes and other challenges. The latest controversy is a matter that, with a little goodwill on both sides, can easily be resolved and a solution found to satisfy all those involved and benefit the respective countries and the region. Tourism plays an important role in the economies of the two countries...

Rusumo border post to boost regional trade says Rwanda minister

Rwandan minister of Infrastructure James Musoni has said that the Rusomo one stop border will unlock Rwanda’s business opportunities and boost intra-regional trade. He was speaking on Saturday while officially launching the Rusumo international bridge and One Stop Border post in Ngoma district, Eastern Rwanda. Rusomo Bridge lies between Rwanda and Tanzania and it facilitates cross border movements between the two neighbouring countries. The project that was funded by the Japanese government to a tune of 32 million U.S. dollars is expected to help address the challenge of increased traffic on the central corridor, an important regional route connecting the region to the port of Dar es Salaam. "This is quite an important mile stone towards facilitating regional trade and deepening East African Community (EAC) integration." "This structure will help eliminate traffic congestion and improve the efficiency of cargo transportation," Musoni told journalists shortly after the launch. He noted that the plan to construct border posts at borders in EAC is in line with the regional integration plan to help ease movement of people and goods. "Rwanda being a land locked country, this is an opportunity for us to increase trade exchanges with our neighbours and other countries that connect us to the sea," he said. The project works included the construction of the new Rusumo International Bridge with 80m of length and 13.5m width, and other facilities such as the administration building. It consists of a control shed for vehicle control purposes, guard quarters, and car park for large...