Contrary to earlier fears that Kenya would dominate its neighbours in a liberalised regional market, figures show a growing trend towards more balanced trade. While Kenya retains its industrial advantage, earlier policies of import substitution and protectionism adopted by Uganda and Rwanda plus an open trade regime have led to more balanced trade. The two countries, which had been Kenya’s biggest markets for long, have started to produce their own value added products thereby reducing the need for imports. Moses Ogwal, director of policy advocacy and trade at Uganda’s Private Sector Foundation, said EAC integration which requires countries to abolish tariff and non-tariff barriers has opened the Kenyan market. “Kenyan businessmen can come to Uganda to buy maize, beans, water melons and pineapples without anyone asking questions. This has increased our exports,” he said. But while it is easy for such food products to enter the Kenyan market, the reverse is difficult because when the region was negotiating the Common Market Protocol, Kenya, which is considered a developing country could only protect few industries unlike the other four partner states which fall under the least developed category. However, Richard Sezibera the EAC secretary general said this should not worry Kenya as the country’s trade in the region had increased in absolute terms. “The rising exports to Kenya is a good thing for EAC as it increases intra-regional trade,” he said adding that it was important for intra-EAC trade to stay above 25 per cent for the planned single currency in...

Nairobi; Kenya: East African Community (EAC) states and the European Union (EU) have reached a new deal in protracted negotiations of Economic Partnership Agreements (EPAs). The breakthrough draft text for the EPAs paves the way for a final agreement. A ministerial negotiation in Brussels, Belgium, early this year ended without an agreed text. However, an agreement has now been reached by the East African Council of Ministers in Arusha after a day-long meeting chaired by Kenya's East African Affairs, Commerce and Tourism Cabinet Secretary Phyllis Kandie. EPAs are free trade agreements the European Union is negotiating with countries in Africa, the Caribbean and the Pacific. Ms Kandie, who chairs the Council of Ministers, described the breakthrough as good news and a clear indicator that regional integration has taken root. "The agreement was particularly significant for Kenya who stood to lose billions in exports to the EU if a deal was not finalised by October 1, 2014," she added in a statement released in Nairobi yesterday. Foreign Affairs and International Trade Cabinet Secretary Amina Mohamed told a media briefing that Kenya had a very capable team during the negotiations, consisting of Cabinet and principal secretaries and experts from the ministry among others. She added that chances of beating the October deadline were high but assured that in case there was a delay of two to three months resulting in taxes, the Government would make refunds. "At last we were able to agree. We will still be holding meetings on September 24...

The East African Community has accepted a draft agreement for fresh produce exports to the European Union market. On Saturday evening, the EAC Council of Ministers accepted a proposal by the EU to sign a deal before October 1. The agreement, known as the Economic Partnerships Agreements (EPAs), means that Kenya will avoid heavy taxation, which its exporters would have faced in the EU had the regional bloc failed to reach consensus on outstanding issues. “This breakthrough is good news and a clear indicator that integration has taken root,” said Commerce and Tourism Cabinet Secretary Phyllis Kandie, who chaired the Arusha meeting. “The agreement is particularly significant to Kenya who stood to lose billions in exports to the EU if a deal was not finalised by October 1,” she said. However, the decision appears to have been reached too late, since Kenyan flower exporters will have to pay taxes from October 1 after all. This is because the time available will not be enough to implement the provisions of the deal. Foreign Affairs Cabinet secretary Amina Mohammed said the EAC had written to the EU informing it that they had reached an agreement. “I must caution that because of the delays, we may have to meet a higher degree of taxation, because of the process it will have to go through to be implemented,” Ms Mohammed said on Sunday. “We still have a gap of one to two months, but that is not big because we would have faced a...

The East African Community partner states should choose who to trade with and shun 'bad' trade agreements in order to maximise benefits from inter-regional trade, Arancha Gonzalez, the executive director of International Trade Centre (ITC), has said. Gonzalez was responding to a question posed during a media conference at the closure of the World Export Development Forum (WEDF) in Kigali on Wednesday. During the three-day event that took place in Africa for the first time, a pledge was made by participants from 73 countries to work towards facilitating local small and medium enterprises (SMEs) to internationalise their operations through, among others, removing nontariff barriers, improving standards as well as building attractive brands. However, it was observed that there's a tendency to patronise African countries when they attempt to trade with economically more advanced regions such as Europe, especially during the process of negotiating trade agreements. An ongoing example is the Economic Partnership Agreement between EAC and Europe, whose conclusion has failed because of what experts say are contentious clauses that don't favour EAC partners. Observers have noted that Europe's failure to compromise or strike out the undesirable clauses is like holding the region at 'gunpoint.' However, Francis Gatare, the chief executive of the Rwanda Development Board (RDB), differed, saying, "there are no gunpoint agreements." Gatare, who was on the same media briefing, added that rather than rush to do business with Europe, there are unexploited opportunities closer to home. "Agreements are signed between two parties and I don't think East...

The re-opening of the long dormant railway line between Tororo and Pakwach, via Gulu, last year by Uganda President Museven, has raised much hope and expectations about growing cargo volumes being shifted from the road to the rail on the main route to Uganda’s North and the South Sudan. Yet announcements made by Rift Valley Railways about the formal commissioning last week of three out of twenty brand new GE locomotives ordered, and the doubling of the rolling stock by mid of next year, do not entirely apply to the Tororo – Gulu route. Like key sections in Kenya and in Uganda along the Tororo – Kampala line, additional work will be required to restore the rail track to higher specifications, allowing for an increase in speed and higher axle loads, if rail transport is truly to offer a viable alternative to road transport. RVR earlier this year already imported automated line maintenance equipment and the two units now in use are deployed along the main line to cover hotspots between Mombasa, Nairobi, the Ugandan border at Tororo and Kampala. It is there that surging demand for cargo space makes it almost inevitable that the new machines are deployed where the most is to be gained in terms of revenues, leaving other lines like the one to Gulu to be largely refurbished by manual labour. Also required is additional infrastructure at the Gulu railhead, like a container depot with road access to the main highway from Gulu to Nimule and...

The East African Community (EAC) Member States have all reached an agreement amongst themselves on a common position on the Economic Partnership Agreement (EPAs) with the EU, a senior Kenyan official said on Sunday. Ministry of Foreign Affairs and International Trade Cabinet Secretary Amina Mohamed told journalists in Nairobi that the deal paves way for the signing of the EPAs before the Oct.1 deadline. "The agreement now has to go through internal processes so that it is ratified by both parties before the deadline," Mohamed said. EAC Members States include Kenya, Uganda, Tanzania, Rwanda and Burundi. If the EAC and EU don't sign the deal, then Kenyan exports will subjected to tariffs while the rest of the EAC partners states will trade under the everything but arms trade deal. Kenya is a major exporter of horticulture, vegetables and flowers to the EU. "But because of the delay in signing of the agreement, Kenyan exports to the EU might be subjected to import tariffs for period not exceeding three months," Mohamed said, adding that the government has undertaken to cushion all exporters that will be affected by the taxes. The EPAs, launched in Brussels in 2002, are aimed at enhancing sustainable growth, increasing production and supply capacities of the Africa, Caribbean and Pacific (ACP) countries, and promoting structural processing and economic diversification of the ACP states while supporting regional integration. Experts say Kenya stands to benefit from foreign exchange earnings, employment opportunities and penetration to the EU market with EPAs. The...

DAR ES SALAAM, TANZANIA, September 10, 2014 /EINPresswire.com/ -- With the growth of African economies, the importance of ports as exit and entry points for commodities that are stimulating economic growth in the region is also rising. East African countries are undertaking port projects amounting to over US$23 billion allocated to new port developments, terminal infrastructure upgrades, and improving port procedures to meet the growing cargo needs. Presentations will be delivered by senior officials including Dr Enos Bukuku, Deputy Secretary General – Planning and Infrastructure, East African Community, Tanzania; Tau Morwe, CEO, Transnet National Ports Authority, South Africa; Sylvester Kasuku, Director General/CEO, Lamu Ports-South Sudan-Ethiopia (LAPSSET), Kenya; Fernando Couto, CEO, Port Nacala, Mozambique; and Tim Vancampen, CEO, Madagascar International Container Terminal Services, Madagascar, who will give insights into current and future port projects in their respective countries. “We’re witnessing an exciting and rapidly developing time for the port sector in East Africa,” says Tanatsiwa Mabeza, Conference Producer, IQPC South Africa. “It’s imperative that leading authorities, consultants, contractors and suppliers come together to discuss advanced engineering strategies that will support the government’s vision to transform East Africa into a global shipping hub.” An exclusive workshop on Doing Business in East Africa will be facilitated by Daniel Machemba, Executive Director-Secretary, Tanzania Chamber of Commerce, Industry and Agriculture, and Alex Kabuga, CEO, Kenya Trade Network Agency, Kenya to provide an understanding of the business environment in the region. Source URL: World News Report

Non-tariff barriers within the East Africa region are affecting regional trade, according to a recent study conducted by a regional think-tank. The East Africa Policy Centre, in its study released last month, noted formal and informal trade barriers remain major obstacles to economic growth and social development in the East African Community (EAC). According to Executive Director Mike Rotich, high transportation costs due to corruption, bureaucratic delays and poor infrastructure are an impediment despite the measures put in place to drive business. The study also notes that due to high costs of road transport within the region compared to shipping and air transport, only 23 per cent of EAC's total exports and 10 per cent of imports are intra-regional. "To transport a 20-tonne container from Mombasa to Nairobi costs $1,300, while a similar container from Mombasa to Kampala and Kigali costs $3,400 and $6,500 respectively. This is more than double the $1,200 one would incur to ship the same goods from Japan to Mombasa," Rotich notes. Apart from high road transport costs, overhead expenses such as bribes at border checkpoints and weighbridges incurred by transporters have also hindered the growth of regional trade. "We found that other overheads and bribes account for almost 19 per cent of the companies' total operation costs. Drivers who were interviewed claimed that many unexpected overcharges and bribes have to be paid at check points and weighbridges on the borders," the study notes. The study, which explored different factors affecting the trucking business in the...

Arusha — Uganda's Minister for East African Community (EAC) Affairs Hon. Shem Bageine will officially open the annual EAC Secretary General's Forum for Private Sector, Civil Society and Other Interest Groups at the Imperial Resort Beach Hotel on Friday, 12th September, 2014. This year's theme is: "EAC: My Home, My Business". Over 100 delegates from the Partner States are expected to attend the two day event; the third in series since 2012. The first was held in Dar es Salaam, United Republic of Tanzania, and second was last year in Nairobi, Republic of Kenya. The delegates will be drawn from the Partner States' Private Sector Organizations (PSOs), Civil Society Organizations (CSOs), professional bodies, academia/universities, media, EAC organs and institutions, development partners and other interest groups. The EAC Deputy Secretary General (in charge of Productive and Social Sectors), Hon. Jessca Eriyo, said that the Forum's objective was to provide a platform for regular dialogue between the EAC Secretary General and the Private Sector, Civil Society and other interest groups on how to improve the EAC integration process. "The 3rd Forum is an opportunity to widen and deepen EAC integration process and ensure stakeholder participation and inclusivity," according to Hon. Eriyo. She added:"The Forum will provide a space to dialogue on opportunities and challenges provided by the Regional integration process as well as share experiences." Professor Yash Tandon from Uganda, a renowned intellectual and policy-maker among others, will give a key note address on the Forum's theme. Prof Tandon is the former...

Kenya is optimistic that it will meet the October 1 deadline for the signing of the contentious European Union long-term trade treaty. The deal involves the EU and the East African Community. Representatives of the trade bloc meeting in Arusha on Wednesday arrived at a workable solution to outstanding issues which have delayed signing of the pact. “We hope the EU will accept our negotiated level of understanding in this agreement. We are optimistic they will and we shall meet the October 1, deadline,” Mr Nelson Ndirangu, the director of Economic and International Trade at the Ministry of Foreign Affairs told the Nation in Nakuru on Thursday. [caption id="attachment_3529" align="alignleft" width="450"] Red Land Roses growing in a farm in Kiambu County. Anxiety has gripped the multi-billion Kenyan horticulture industry after the European Union expressed worry over products.[/caption] FOURT PER CENT OF EXPORTS Kenya exports flowers to the EU worth Sh46.3 billion and vegetables valued at Sh26.5 billion every year. The EU takes about 40 per cent of Kenya’s fresh produce exports. Failure to sign the Economic Partnership Agreement (EPA) by the October 1 deadline will result in Kenyan goods being subjected to a 12 per cent duty for entering the EU. Mr Ndirangu said the Arusha meeting paved the way for presentation of the bloc’s resolutions to the EU. “There is hope, I can report. After presenting our negotiated position, it will be the EU to respond and we are optimistic that we are signing the agreement by October 1,”...