NAIROBI, Kenya - The World Bank recently agreed to boost agriculture in East African with $1.2 billion. This support is additional to large ongoing individual country programs. Besides paying for better infrastructure, the projects being funded are expected to improve the competitiveness of the East African Community (EAC) states. Philippe Dongier, the World Bank Country Director for Burundi, Tanzania and Uganda, said: “We are partnering with the EAC governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC.” He was speaking during the EAC Heads of State retreat in Nairobi. He said: “We are preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika, and to enhance the capacity and efficiency of the two main EAC ports on the Indian Ocean: Dar-es-Salaam in Tanzania, and Mombasa in Kenya.” He added: “We will also invest in specific transport links to better connect landlocked countries (Burundi, Rwanda, Uganda and South Sudan) to the Northern and Central corridors." This he said will improve access to the ports of Mombasa and Dar-es-Salaam. The private sector needs to support the International Finance Corporation (IFC) and MIGA (the guarantor). The World Bank Group will provide additional resources for regional infrastructure through market-driven private sector financing and guarantees. The financing will contribute to the EAC states’ planned investments in the next three to seven years. The Nairobi retreat on Infrastructure Development and Finance focused on policies and...

Rwandan businesses can now pay for goods or services procured in the region using the national currency, the Rwandan franc. This follows the adoption of the East African Payment System (EAPS), by the National Bank of Rwanda (BNR) yesterday. EAPS is a regional Real Time Gross Settlement System (RTGS) which allows payments to be carried out using local currencies of subscribing member countries of the East African Community. With EAPs, businesses will no longer have to convert the Rwandan franc into dollars in order to pay for goods or services procured in Uganda, Kenya or Tanzania. Rwanda is the latest country to adopt the EAPS after Uganda, Kenya, Tanzania switched on the system in November 2013. Burundi is expected to get onboard as soon as the country's central bank acquires the necessary infrastructure. BNR Governor John Rwangombwa said the development is part of regional efforts to modernise and integrate the payment system to enhance cross-border trade. "Given that transactions are carried out in any of the EAC currencies, EAPS will increase efficiency and facilitate cross border transactions that will help boost intra-regional trade among the EAC partner states," he said. He said the system will reduce dependence on hard currencies and the cost associated with foreign exchange transactions. "The system will eliminate losses associated with converting national currencies into dollars and help settle payments quickly," he said. Previously, it used to take about two days for a bank in one of the EAC countries to send or receive money, but...

Chief executives of microfinance institutions in the region will next week, December 8-9, converge in Kigali to discuss ways on how to improve the sector in the East African Community (EAC) bloc. The East African Microfinance Network (EAFMNET) CEO roundtable will be the first of its kind. It will be held under the theme, "The role of microfinance in EAC economic integration." EAFMNET is a network comprising of microfinance associations from Rwanda, Uganda, Tanzania, Burundi and Kenya. The Association of Microfinance Institutions of Rwanda (AMIR) is the current EAFMNET chair and event host. Peter Rwema, the director general in charge of programmes at the Association of Micro finance institutions of Rwanda (AMIR), said the forum will be used as a platform for financial experts and the sector's top managers to share experiences, information and knowledge, especially on how to tackle challenges threatening the growth of sector in the region. The sector faces challenges, including non-performing loans, access to finance, lack of skills and product innovation. Rwema said the meeting is an opportunity for the country's microfinance sector to learn and share experiences on best practices and how to up their game. Damascene Hakuzimana, the in charge of communication and advocacy at AMIR, said the meeting will attract over 300 delegates from Uganda, Kenya, Tanzania, Burundi and South Sudan. There are about 416 microfinance and Umurenge Saccos in Rwanda.The conference will be officiated with by the Minister of East African Community Valentine Rugwabiza. Source: The New Times

A proposed 10-year investment strategy for priority infrastructure projects in the East Africa Community to tackle the existing gaps received backing during the just-concluded EAC Heads of State Retreat on infrastructure development and financing. The summit, convened over the weekend in Nairobi, Kenya, endorsed the blueprint and directed the Council (of Ministers) to mobilise resources for implementation. Held under the theme, "Supporting the implementation of the Common Market through the development of efficient infrastructure networks and intermodal transport systems in the EAC," the summit was chaired by Kenyan Deputy President William Ruto. Rwanda's delegation was led by Prime Minister Anastase Murekezi. The infrastructure projects, which include railway, energy, ports and harbours, and information and communications technology, among others, are expected to cost at least $100 billion, according to a communiqué from the EAC Secretariat. The endorsement comes at a time when the region is in negotiations with development partners, including the World Bank, the African Development Bank, European Investment Bank as well as individual countries, particularly China and India, in efforts to raise the required resources. At the retreat, several development partners pledged to support specific infrastructure projects. Major pledges: During the summit, the World Bank pledged $1.2 billion toward infrastructure development and improved competitiveness of EAC region, while Trademark East Africa pledged $350 million to support regional infrastructure for ports, one stop border points and road connectivity. The summit further called for the fast-tracking of the development of regional capacities to support the implementation of priority infrastructure projects and...

VENTURES AFRICA – East Africa, a region recognized as a successful global location for mobile payments and a thriving online space, is embracing technology advancement as part of its growth plan for diverse sectors. The newly recently launched East Africa Single Visa is intended to scale up tourist arrivals in EAC member states; Kenya, Uganda, and Rwanda. This multinational-travel certificate which costs $90 will grant tourists a 90-day validity period with no room for extension. Although termed as ‘long-haul destination’, one cannot stop wondering why, with massive cultural and natural resources, Africa continues to lag behind in recorded tourist visits. According to a report by the World Travel and Tourism Council, of the one Billion tourists who travelled in 2012, only 50 million were destined for Africa, where East Africa only managed to scoop 5 million (1 percent) of the bound-for-Africa travelers. “We need to re-package ourselves” quipped Waturi Matu-Coordinator for East African Tourism Platform in an interview with Jovago.com, a leading online hotel booking platform in Africa. Ms. Matu explains that this revamping process would start with the leadership, down to stakeholders and the African Media, “Africa has suffered blanket misconceptions for a long time. We are yet to carry ourselves from the gripping grief of the term ‘dark continent’. Africa needs to tell her own story, and let the world know that beyond the crisis (that exist in every other nation) there exists vast stretches of unique culture, wildlife, flora and fauna, business opportunities and untapped resources.” Having...

Efforts by the Uganda Export Promotion Board (UEPB), together with Traidlinks, to build the competitiveness of 82 small and medium enterprises (SMEs) to penetrate the East African market have started to yield results. In the first eight months of this year, the companies have generated an aggregate of $4.6m, according to Daniel Karibwije, UEPB’s director, Trade Promotion and Public Relations. Since 2009, through an export development initiative dubbed ‘Market Linked’, the SMEs have been connected to buyers from the different East African Community member states with a mission to have Ugandan products penetrate the regional market. “Up to 82 companies have been on sales missions within the EAC member states in addition to taking part in international marketing trainings. Through this programme, over 376 buyers have been identified in western Kenya, Rwanda, northern Tanzania and Burundi,” Karibwije said. “At least 755 business appointments have been set up for Ugandan companies to discuss business with potential buyers. On average, each participating company has had 11 appointments with potential buyers in the market across the eight group sales missions that have been held.” According to Karibwije, about 50 per cent of these companies have now started to export to the other areas of the region while others are making adjustments in order to do the same. In order to coordinate efforts and promote sustainable trade, an alumni club has been established to foster peer-to-peer learning and promote competitiveness. Last Friday, the club had its third market-linked alumni meeting, which was presided over...

Regional business council, with assistance from ITC, successfully pushes for implementation of services trade liberalization measure Cooks, accountants, and other services-sector workers in East Africa will soon be able to easily work across national borders in the region, thanks to the approval of a position developed by the East African Business Council (EABC), with assistance from ITC. Representatives of EAC member countries will meet in Nairobi, Kenya next week to negotiate textual changes to the EAC Common Market Protocol to reflect the agreement. ‘This is a major milestone for businesses in the East African Community, creating new opportunities,’ said Andrew Luzze, EABC’s Executive Director. ‘Once implemented the measure will also contribute significantly to the competitiveness of EAC services companies, which will as a result be able to compete more successfully in markets outside East Africa as well.’ The governments of Kenya, Tanzania, Uganda, Rwanda and Burundi had committed to phasing in services trade liberalization measures between 2010 and 2015, in line with the EAC’s Common Market Protocol. However, much of the liberalization has been thwarted due to differences in opinion among member countries on the ability of service providers from elsewhere in the EAC to work in their countries. ‘Without the temporary movement of people between countries, many services cannot be provided,’ Mr .Luzze said. As EAC member countries could not agree on how to overcome the deadlock, services liberalization has progressed more slowly than anticipated. While services trade growth has been impressive, there is a lot of potential left...

The level of optimism is high among co-operatives in East Africa, in light of the ongoing East African Community (EAC) Co-operative Societies Bill 2014 being pushed to be enacted into law. The bill, being advanced by the regional members of Eastern Africa Farmers Federation (EAFF), seeks to realise and enhance the engagement of the co-operative movement in the EAC integration process. According to the Trade, Industry and Cooperatives minister Amelia Kyambadde, Uganda is optimistic that the envisaged law is timely as the country is in the process of reviving and strengthening cooperatives to realise more benefits from cross-boarder trade. Co-operative movements were hit by challenges from the 1970s through to the mid-2000s, but the agenda is fast-gaining momentum and stimulating a lot of interest across the region. “The bill is attaining considerable support from all regional stakeholders, its intention is in the spirit of development, as it seeks to bond the scattered cooperatives across the region to work for a common good,” Kyambadde said during a recent interview. Key intentions of the bill The bill intends to harmonise national co-operative laws in the EAC partner states, and to provide a framework for co-operatives to exploit the EAC regional integration agenda. In a business sense, the bill considers boosting effort in helping members of cooperatives especially farmers to get a clear understanding of the EAC Common Market protocols which will, at the end, ease regional trade for the benefit of members. Kyambadde explained that the piece of legislation comes with development-focused...

NAIROBI, KENYA: Deputy President William Ruto has asked member states of the East African Community (EAC) to stop unnecessary suspicion that undermines the speedy integration of the region. Mr.Ruto urged member states to look at the bigger picture of integration as an instrument of progress. "We must go beyond petty issues, we must look at the bigger picture because we are going to be better together, he said." The Deputy President added, "We are better off together by creating a regional block that makes sense to any investor." He made the remarks at the Kenyatta International conference Centre (KICC) when he represented President Uhuru Kenyatta in officially opening the 3rd EAC Heads of state retreat on Infrastructure Development and Financing. The Deputy President pointed out that the imperative driving regional integration for the East African Community is the urge to achieve faster development of the peoples and countries in the region in the face of intense global competition. Mr. Ruto said that East African countries should position themselves in a way that makes them competitive by putting in place necessary infrastructure and challenged member countries to open their borders for trade. "We should develop infrastructure that goes beyond borders of individual countries to benefit from economies of scale," he said. He stated that the next area of focus would be agro-processing and value addition so that farmers in the region get value for their money. As we look into the future, we shall be focusing on developing infrastructure that supports...

The World Bank has pledged a 1.2 billion US dollar loan to East African nations to improve integration within the region. The financier also vowed to support infrastructure development and to boost the competitiveness in the East African Community (EAC) by providing additional resources for regional infrastructure in the next three to seven years. “We are partnering with the EAC governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC," said Philippe Dongier, World Bank country director for Burundi, Tanzania and Uganda. "We are preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika, and to enhance the capacity and efficiency of the two main EAC ports on the Indian ocean - Dar es Salaam in Tanzania and Mombasa in Kenya.” The funds will also be used to invest in particular transport links to enhance the connection of landlocked countries Burundi, Rwanda, Uganda and South Sudan to the Northern and Central corridors. This will improve access to the ports of Mombasa and Dar es Salaam as well. In conjunction with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), the bank said it will focus on reforms and policies crucial to the development of regional integration through enhanced efficiency of infrastructure investment and financing. Oumar Seydi, IFC director for Eastern and Southern Africa, said, “Working with private sector partners, IFC is already investing more than 1.0 billion...