Prevalence of trade barriers in the region is a contributor to food shortage especially hampering movement of grains. East Africa Grain Council (EAGC) says trade barriers have pushed business of grains from formal, well-regulated channels to informal, unregulated and inefficient mediums. Grain experts say informal trade translates to higher food safety risks, lower quality, high post-harvest losses, higher transaction costs and ultimately higher consumer prices. “Today, 70 per cent of maize, 63 per cent of dry beans, 57 per cent of rice and 89 per cent of millet are traded informally across national borders. This scenario has exposed more than 10 million East Africans to hunger,” Eagc Board Chairman Bernard Otim told People Daily during the council’s Annual Members’ meeting in Nairobi. Despite importance of regional food trade in availing markets for producers and affordable food for consumers, export bans, import bans or both, are active in a number of countries in Eastern and Southern Africa region. Otim said there are close to 20 countries affected by such a scenario in the region. “It is an irony that our governments have been quick to sign regional and continental commitments to support agriculture but have been slow to back such commitments with concrete action and resources,” he said. A few of these countries have committed 10 per cent of their national budgets to the agricultural sector as per the AU Malabo Declaration. Regrettably, development of the grain sector in the region is inhibited by a restrictive policy environment, characterised by ad...

A newly designed Short Messaging Service for reporting trade barriers within the tripartite regional economic blocs has been launched. The SMS will supplement the current web based online system for reporting, monitoring and elimination of Non-Tariff Barriers (NTBs) used by the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC) and the Southern African Development Community (Sadc). The Tripartite online reporting system is a real-time, mechanism for reporting, processing, monitoring and resolving NTBs and is available on www.tradebarriers.org. It was operationalised in November 2010. The SMS tool was first launched in 2013 in Zambia to facilitate a diverse spectrum of economic operators, especially the informal and small scale traders who may not have access to the internet. “At the time the design of the SMS reporting too, there was a central number to which the economic operators in different countries could send the SMS messages to report the trade obstacles that they could have encountered,” Mr Tasara Muzorori, senior trade officer in Comesa said. This was expensive for the economic operators as it involved incurring roaming charges. “It was also a challenge to publicise that central number to the relevant players in each of the countries as the foreign numbers did not identify with local users,” Mr Muzorori said. “Further, the system was faced with sustainability challenges as it was operated outside the National NTBs structures thereby requiring continued donor support to cater for administration costs.” This led to the re-design of the SMS system whereby each...

The six member States of the East African Community (EAC) are set to meet this week in Rwanda to push for the implementation of the One Area Mobile Network, officials said on Monday. Kenya's Communication Authority Director General Francis Wangusi told Xinhua that Kenya, Rwanda, Uganda and South Sudan are already part of the single network. "Later this week EAC ministers in charge of telecommunications will discuss ways to fast track operationalization of the single network," Wangusi said on the sidelines of the opening ceremony of the 36th Ordinary Session of the Administrative Council of the pan-African postal union. Once the single area network is effective, all intra-EAC mobile tariffs will be harmonized so that the calls within the trading bloc will be treated as local calls. Wangusi said that the overall objective is to reduce the cost of communication in the region. "It is unfortunate that it is cheaper to call Europe, Asia and the US from EAC partner states than it is to call other member states," said Wangusi. While South Sudan has joined the single network, it is yet to implement the network, and Tanzania will have to amend its telecom laws before it becomes part of the network. Wangusi said that due to civil strife in Burundi, it may take the country longer than expected to join the single mobile network. The one area network will be a building block to the Smart Africa Initiative that aims to make Africa a single mobile area network. Wangusi...

East Africa still seems relatively unloved as a petroleum province and yet it has a number of positive aspects: There is a regional entity, the East African Community, which draws together Kenya, Uganda, and Tanzania (but not Mocambique). There is a declared ambition to bring energy to the combined population of 150+ million but little yet in the way of actual development or actionable plans. Post Brexit, the UK Department of International Trade (DIT) has declared an Oil & Gas High Value Campaign for East Africa, the aim being to deliver opportunities for UK companies in the region. DIT has representatives in-country and an officer in Whitehall who carries the regional responsibility: DIT's current early focus seems to be on the big gas (LNG) developments offshore Tanzania and Mocambique (see 3.). There is no shortage of resources and reserves. Significant oil has been found onshore in the rift plays of Uganda and Kenya; there is commercial gas under production in Tanzania, and at least one further discovery; there are world class (??100 Tcf) gas discoveries offshore Tanzania and Mocambique; there is the potential for a significant oil play in the coastal region from northern Mocambique, through Tanzania, potentially into Kenya, first evidence of which may be provided by recent wells drilled by Aminex in Tanzania and Sasol in Mocambique, There is current production of gas in Tanzania at Songo Songo, Kiliwani-North and Mnazi Bay. There is an under-utilised pipeline from the producing fields up to Dar-es- Salaam. A possible starting...

The 2017/18 East African Community budget will be relatively smaller compared to the current closing financial year owing to the current economic situation, regional ministers have decided. During the recent meeting of the Council of Ministers in Arusha, Tanzania, the bloc’s Secretary General, Amb. Libérat Mfumukeko, submitted a budget proposal for financial year 2017/18 amounting to $113.8 million compared to the current budget of $101.4 million. “Owing to the current economic situation, all partner states are experiencing rationalisation of their national budgets and, therefore, it would be difficult to increase contributions to the EAC Budget,” reads a report of the central decision-making organ of the Community. “The meeting, therefore, agreed to a zero per cent increase in partner states contributions to the 2017/18 Budget.” The Council observed that although there is no increase in the individual partner states’ contribution, countries’ total contribution will increase after including contribution from the Community’s new member, South Sudan. From May 22 to June 3, the final sitting of the third East African Legislative Assembly (EALA), in Arusha, Tanzania, will mainly debate the budget estimates as adopted by the Council. MP Patricia Hajabakiga, chairperson of EALA Rwanda Chapter, told The New Times that nothing much is likely to change. “Of course the budget voted by EALA cannot go beyond the ceiling provided by the partner states. It is only rationalising within what is already available,” Hajabakiga said. “In case some institution needs something and maybe some other institution has excess then they will rationalise within...

A newly designed short messaging service (SMS) for reporting trade barriers within the Tripartite regional economic blocs has been launched. The Tripartite Free Trade Area was launched in 2015 and encompasses three regional blocks; the Southern African Development Community (Sadc), the East African Community (EAC), and the Common Market for Eastern and Southern Africa (Comesa). The SMS tool will supplement the current web based online system for reporting, monitoring and elimination of Non-Tariff Barriers (NTBs) used by Comesa, EAC and Sadc. According to a statement from the Comesa secretariat, the Tripartite online reporting system is a real-time mechanism for reporting, processing, monitoring and resolving trade barriers. It was operationalised in November 2010. “The online mechanism has been instrumental in assisting the region to understand the kind, frequency and category of NTBs that are encountered by economic operators as they are doing their business in the Tripartite region. These include road blocks, delays in processing export or import documentations, permits, et cetera,” the statement reads. The SMS tool has now been rolled out to Comesa member states as part of capacity building and empowerment to manage trade barriers and fast tracking their removal. Economic operators who encounter NTBs will be able to send an SMS to the central number which will in turn relay messages to identify focal point numbers and the current online reporting system. The SMS tool was first launched in 2013 in Zambia to facilitate a diverse spectrum of economic operators, especially the informal and small scale traders...

President Uhuru Kenyatta today said that one of his priority foreign policy objectives has been to see trade between African countries grow to a new higher level. He said he has promoted the integration of the East African region and advocated for increased collaboration between African nations. President Kenyatta, the Commander-in-Chief of the Defence Forces, spoke at the National Defence College in Karen, Nairobi. He said he promoted a structured process for the integration of the East African Community starting with economic integration. The President fielded questions from participants on the course, including officers from Nigeria, Zimbabwe, Zambia, Egypt and Nigeria. He said people-to-people movement, and easier movement of goods and services was at the heart of Africa building a prosperous future in which Africa’s security and prosperity was guaranteed. He said he wants to change the traditional trend where the economic interest of African countries ended at their own borders in relation to other nations on the continent while they trade extensively with overseas nations. National Defence College trainees he addressed were all above the rank of Colonel or corresponding ranks in other defence agencies. The President explained why he had devoted much time to East African integration, saying a wider market for goods in the region would attract greater attention of investors globally. He also said that exchange of good practises among Africans themselves was pivotal for Africa-led growth. He was responding to a Nigerian officer, who had said that Kenya should take lessons from countries like his...

It will now be easier and faster for the business community in the Common Market for Eastern and Southern Africa (COMESA) to report trade barriers within the tripartite regional economic bloc, thanks to a new short messaging service (SMS) system. According to experts, the innovation that was launched last week will help improve regional trade. Souef Kamalidini, the Director General of Customs of the Union of Comoros, said the SMS tool will supplement the current web-based online system for reporting, monitoring and elimination of non-tariff barriers (NTBs) used by COMESA, the East African Community (EAC) and the Southern African Development Community (SADC). A similar system is used by the Northern Corridor countries to report NTBs. The tripartite online reporting system is a real-time mechanism for reporting, processing, monitoring and resolving NTBs. The SMS system that is being rolled out by COMESA member states is part of capacity building and empowerment to manage NTBs and fast-track their removal. According to Kamalidini, the new tool will especially help the informal sector and small-scale traders who do not have access to the Internet to report NTBs in real time. “With the new technology, each member state is able to install and operate the system using a ‘central’ number at the national level where stakeholders can send messages on trade obstacles. This way, they (traders) will not incur any roaming charges to send an SMS,” he explained. Alphose Kwizera, the assistant executive director at the Rwanda Association of Manufacturers (RAM), said the tool is...

DAR ES SALAAM Tanzania (Xinhua) -- A senior official with the East African Community (EAC) said on Thursday implementation of the bloc’s single customs territory (SCT) has tremendously reduced the cost of doing business in the region. Dicksons Kateshumbwa, chairman of the EAC Committee on Customs, said turnaround time has been reduced from 21 days to 3-5 days on average between the entry points to Kampala in Uganda, Kigali in Rwanda, and Bujumbura in Burundi. The six-member EAC is implementing a number of customs projects, including the SCT, transforming the way of doing business for the benefit of EAC members economies. “Capacity building and sensitization to support the SCT has been done and is ongoing,” Kateshumbwa told a news conference in Dar es Salaam. The SCT started in 2014 on both the northern and central corridors where goods are assessed and declared at the first point of entry and move to the destination partner state with taxes and duties paid upfront. Kateshumbwa said integration of customs functioning was enhanced through cross-border deployment of staff in partner states, leading to better accountability, deterrence of smuggling and closer cooperation among customs authorities. “So far we have rolled out goods on the SCT on pilot basis,” Kateshumbwa said. “However, the most important decision we have made today is that we have agreed on the full implementation of the SCT effective July 31, 2017.” He said customs automation across the region has been enhanced in all member states—Tanzania, Kenya, Uganda, Rwanda, Burundi and South...

Kampala — Government has secured funding for the construction of the first logistics hub at the Gulu Railway station, targeting the markets in South Sudan through Alegu and the Democratic Republic of Congo (DRC) through West Nile. South Sudan and DRC are Uganda’s largest export markets. According to Mr Benon Kajuna, the director transport in the ministry of Works and Transport, the hub will be constructed on at least 24 acres – provided by the government. The project will cost $8.6m (Shs30.96b) of which $5.6m (Shs20b) is available with funding from DFID and TradeMark Africa. “In October 2016, we completed a pre-feasibility study for the project, with designs expected at the end of this year. Currently, a consultant is working on the proposed design for the project. We expect construction to commence by end 2018,” he told delegates attending the Joint Oil and Gas and Logistics Expo 2017 at Kampala Serena Hotel Conference Centre last week. A logistics hub is a designated area that deals with activities related to transportation, organisation, separation, coordination and distribution of goods for national and international transit, on a commercial basis by various operators. Gulu is one of the four areas designated in Uganda where there is a planned logistics hub. The Gulu hub is expected to serve the two export markets for Ugandan goods but also for re-exports destined for DRC and South Sudan. It will be a Private-Public Partnership (PPP), with some private sector players expected to come on board. According to Mr...