The Corporate Council on Africa will serve as the officially launch the group’s new Power Africa/Trade Africa web portal to maneuver the complexities of doing business in sub-Saharan Africa during a Dec. 16 meeting of their Power Africa working group. That evening, the Council’s Annual Awards Dinner will also take place, recognizing four African business members for their efforts to promote U.S. private sector investment in Africa. The Corporate Council on Africa serves as the lead go between for the private sector and the U.S. government for Power Africa projects. “We’re also the point of contact on Trade Africa – and that is really just getting into gear, where Power Africa was launched over a year ago,” Mia Warner, Corporate Council on Africa’s Director of Energy and Power initiatives told AFKInsider. Trade Africa focuses on the East African Community (EAC) member states of Burundi, Kenya, Rwanda, Tanzania, and Uganda and is designed “to increase internal and regional trade within Africa, and expand trade and economic ties between Africa, the United States, and other global markets,” according to the United States Agency for International Development. Among the goals is advancing the Commerce Department’s “Doing Business in Africa” campaign which encourages U.S. businesses “to take advantage of growing trade and investment opportunities and to promote trade missions, reverse trade missions, trade shows, and business-to-business matchmaking in key sectors.” The President’s Advisory Council on Doing Business in Africa was established by Executive Order Aug. 5 for a two-year period, but it was not...

Government has intensified efforts aimed at improving Rwanda's logistics industry. Already, the government has signed business deals with sector investors. Government has also announced the construction of logistics hubs at the Mombasa and Dar es Salaam ports and a dry service port (Kigali logistics hub) in Kigali, besides upgrading the air cargo facility at the Kigali International Airport. Also, plans to construct more facilities to facilitate collection of fresh produce are ongoing. These efforts are also geared towards boosting the country's service and logistics industry, reduce the cost of doing trade and support the export sector, according to Francois Kanimba, the Minister for Trade and Industry. The government has also been discussing with investors from Singapore on how to establish a logistics fund to finance local businesses in the sector. Industry players say these developments will greatly change the dynamics of cross border trade. Minister Kanimba said the country currently lacks a world class logistics sector that is capable of handling the growing regional trade volumes. "That's why the Kigali dry port is critical... We are confident that the dry port and facilities that will be set up at Mombasa and Dar es Salaam ports are key to reducing operational costs, as well facilitating a quick turn-around," he said. He said though the cost of cross-border trade, especially shipping; the country's logistics service strategy will help address some of these challenges. "The idea is to improve cargo handling services and also help lower costs incurred by exporters, truckers and freight...

Burundi has joined Rwanda and Tanzania in ratifying the East African Community Monetary Union Protocol. The Protocol aims to harmonize monetary and fiscal policies and establish a common central bank for the East African Community. It is thought that a monetary union, with the absence of currency risk, provides a greater incentive for trade. The protocol is like a roadmap that will lead to the adoption of the Monetary Union. By ratifying the Protocol, Burundi commits to implementing the activities on the agenda. Some people fear that adjusting to a single monetary and exchange rate policy will proof impossible for Burundi, as it will struggle to meet the benchmarks agreed upon in the protocol. Audace Niyonzima, Director of Research and Statistics in the Burundi Central Bank and chief negotiator during the Protocol negotiations, ensures people that ratification doesn't mean that Burundi will join the Monetary Union. "There is no risk. Preparations have started, but we'll evaluate at the time of realization of the Union." The first step towards realizing the Monetary Union is harmonizing the currency rate; fixing the exchange rate against the currency of other countries to facilitate the conversion of the Burundian franc into the unique currency for the East African Community. Niyonzima trusts that Burundi will benefit from the union, but emphasizes the importance of hard work "because we will enter an open system of competition". There are macro-economic stabilization mechanisms in place to support countries failing to live up to the economic agreements. But, as the...

WINDHOEK – Namibia, along with with 25 countries from the Common Markets of East and Southern Africa (COMESA), East African Community (EAC), and Southern African Development Countries (SADC) , has been involved in trade negotiations for the past three years to establish a Tripartite Free Trade Area (TFTA). The Tripartite Free Trade Area once achieved will provide a market of 600 million people with a GDP of US$1 trillion, Maria Immanuel, Trade and Investment Policy Analyst at the Namibia Trade Forum (NTF) has disclosed. Immanuel explained that the objective is to establish a large single market with free movement of goods, services and business persons. This is expected to boost intra-regional trade by removing tariff barriers between these regional economic communities and harmonising customs procedures and trade facilitation measures. Immanuel said the current negotiations focus on market integration which will be carried out over two phases. The first phase was the one that had been ongoing for the past three years focusing on trade in goods. Phase two would focus on trade-related aspects such as trade in services, intellectual property rights, competition policy, trade promotion and competitiveness. Immanuel emphasised that the current negotiations in trade in goods were aimed at liberalising movement of goods. She noted that negotiating countries would exchange tariff concessions based on reciprocity. “The aim is to liberalise as many goods as possible, effective immediately once the agreement has been ratified. The liberalisation of tariffs between the three regional communities will allow countries to open up their...

Government has intensified efforts aimed at improving Rwanda’s logistics industry. Already, the government has signed business deals with sector investors. Government has also announced the construction of logistics hubs at the Mombasa and Dar es Salaam ports and a dry service port (Kigali logistics hub) in Kigali, besides upgrading the air cargo facility at the Kigali International Airport. Also, plans to construct more facilities to facilitate collection of fresh produce are ongoing. These efforts are also geared towards boosting the country’s service and logistics industry, reduce the cost of doing trade and support the export sector, according to Francois Kanimba, the Minister for Trade and Industry. The government has also been discussing with investors from Singapore on how to establish a logistics fund to finance local businesses in the sector. Industry players say these developments will greatly change the dynamics of cross border trade. Minister Kanimba said the country currently lacks a world class logistics sector that is capable of handling the growing regional trade volumes. “That’s why the Kigali dry port is critical… We are confident that the dry port and facilities that will be set up at Mombasa and Dar es Salaam ports are key to reducing operational costs, as well facilitating a quick turn-around,” he said. He said though the cost of cross-border trade, especially shipping; the country’s logistics service strategy will help address some of these challenges. “The idea is to improve cargo handling services and also help lower costs incurred by exporters, truckers and freight...

Addis Ababa, Dec 7 (IANS): East African businesses are set to trade more with India by learning how to take advantage of the country's duty-free market access scheme, facilitated by the Supporting India's Trade Preferences for Africa (SITA) project of the International Trade Centre (ITC). The ITC, a joint agency of the World Trade Organisation and the UN, aims for businesses in developing countries to become more competitive in global markets, speeding up economic development and contributing to the achievement of the UN's Millennium Development Goals. The participants of the third SITA held in Ethiopia's capital city of Addis Ababa Dec 4-5 analysed trade trends under the scheme for each of the SITA partner-country beneficiaries. It also analysed key issues surrounding complying with the scheme like rules of origin, export requirements in the Indian market, issues impacting on export from SITA partner-countries to India, and the value chain from factory gate to the destination market in India, among others. "Building productive capacities, market linkages and enhancing investment attractiveness in the selected sectors will be a key way to ensure that SITA delivers impact and provides a sustainable template for similar South-South trade and investment projects," SITA coordinator Govind Venuprasad told IANS. "It will also allow companies working in these sectors to become export ready to supply other markets". Following an amendment made two years ago in India's Duty-Free Trade Preference (DFTP) scheme, least developed countries (LDCs) will receive preferential zero-duty access on 98 percent of the Indian tariff lines. It...

Integration efforts within the East African Community (EAC) received a significant boost at the end of November. The multilateral organisation stated that it will loan the East African nations $1.2bn to improve inland waterways and ports in Kenya and Tanzania, as part of efforts to boost integration in the region. More specifically, the funds will be used to revive inland waterways on Lake Tanganyika and Lake Victoria, and improve handling capacity and efficiency at the Mombasa and Dar es Salaam ports. The five-nation EAC, which comprises Kenya, Tanzania, Uganda, Rwanda and Burundi, is undertaking a substantial infrastructure investment programme while also deepening policy integration and reducing barriers to trade. In a recent 2015-25 strategy paper, the bloc stated that it needs at least $68bn, and possibly up to $100bn, over the next decade to develop roads, ports, railways, transmission lines and oil & gas infrastructure. Looking at the financing of the ambitious investment programme, in addition to the World Bank’s recent commitment, the European Union (EU) has also recently stated that it is prepared to support projects worth up to $750m to improve the region’s infrastructure, while Trademark East Africa also pledged $350m to expand ports, one stop border points and road connectivity. The EAC is already in talks with development partners, including the African Development Bank, European Investment Bank, as well as countries like China and India, as potential sources of funding. Turning to China, political leaders in East Africa are looking east in an attempt to make use...

KIGALI, Rwanda - Rwanda became the fourth country in the region to go live on the East African Payments System (EAPS) which the government believes is going to ease and speed up doing business for Rwandans in the region. This system comes as a means of reducing dependence on hard currencies and the cost associated with foreign exchange transaction,” the Governor of the National Bank of Rwanda (BNR) John Rwangombwa (picture below) said last week during a press briefing in Kigali. “It is aimed at increasing efficiency and facilitate cross border transaction that is essential for boosting intra-regional trade among East African Countries,” Rwangombwa said. EAPS is a Real Time Gross Settlement System (RTGS) in the region and a multicurrency system in which payments are carried out using any currency of the EAC partner states. It is part of the EAC Payment modernization efforts spearheaded by EAC Central Bank Governors to enhance cross border payments across the EAC region. Rwangombwa said this is going to reduce on exchange losses involved in transactions plus it is an easy way of payment since it involves use of SWIFT infrastructure. “This is aimed at speeding up doing business in the EAC region,” Rwangombwa said. He called on the public to make use of this cross border payment system to be able to benefit from the immense attributes including safety and efficiency to boost regional trade and intra-regional payments During the same meeting, the Governor announced issuance of two new different notes of the...

A global audit, tax and advisory firm will spend about Sh200 million to deepen its presence in the East African Community (EAC) market in the next one year. The US-based Grant Thornton International Ltd, already with offices in Kenya, said it will soon open offices in Tanzania, Uganda and Rwanda to assist investors set up business in the region. The firm’s Business Development and Markets Global Leader Gernot Hebestreit said the announcement is informed by the increased local and international investments in the region, mainly Kenya. Hebestreit noted that the region is receiving a lot of attention from foreign investors - prompting them to set up more offices as well as employ quality human resources to offer logistics services. During the launch the East African Advisory Services Initiative in Nairobi, Hebestreit observed that bureaucracy and red-tape, though these have diminished lately, are still among the key challenges scaring away potential investors. The initiative will handle consultancy and advisory services for clients seeking to expand across the EAC region. “We have a lot of faith in the fast-growing economy of Kenya and EAC and that is why we are expanding our footprint in the region,” said Mr Hebestreit. He, however, noted that the investment climate in Kenya and the region continues to be haunted by corruption, infrastructure and high cost of power. Investment climate Hebestreit said investors will be assisted to register their businesses as well as deepen their understanding of the region’s investment climate. “Our focus is to offer a...

Editor, I presume that the East African Community (EAC) is following the footsteps of the European Union (EU) in its aim for integration. My request is that sometimes it good to stop and take a breath. This would be an chance to understand where we are going and whether we are all still agreed with the final objective. As an oldster, I would like to remind all concerned that if it were not for the unfortunate events of the 1970s, we would be far ahead of the EU even now! Although the present goal is to have a common currency within 10 years, I do not see this happening. The Common Market is still only in the early phases of implementation. As a notable point, let us recall that the EU Single Currency is only 14 years in existence. But the process to get there took well over 20 years. Perhaps the EAC should begin taking smaller morsels and be sure that we can digest it, rather then big chunks that ask too much of our circumstances. This does not mean I do not support the EAC. I believe it is the only entity that will ensure stability and a better chances of faster economic growth. But nothing wrong in being cautious. J. Kadoma Kampala, Uganda Source: East African Business Week