News that Tanzania and Uganda are restricting entry of Kenya made ice cream, biscuits and sweets does not augur well for East Africa’s common market. A common market basically allows for free movement of locally manufactured goods, services and people. Kenyan businesses accuse neighbouring States of holding up people and goods, frustrating the goals of the common market that includes Kenya, Uganda, Tanzania, Rwanda, South Sudan and Burundi. The latest spat has seen Tanzania and Uganda accuse Kenyan manufacturers of tilting competition in their favour by using imported raw materials. The trade barriers are unacceptable eight years since the formation of the EAC bloc. Tanzania and Uganda have been quick to impose restrictions on Kenya goods instead of giving negotiations a chance to ease the trade wars. The ambition of the region of more than 150 million people to draw foreign investment and wean EAC countries off external aid should not be allowed to die at the altar of suspicions. It should not be lost that the community collapsed in 1977 amid economic and political disagreements. Because the continent is on course to create a mega trading bloc, EAC member countries should give priority to negotiations over grand-standing for its survival. Source: Business Daily

Earlier this year, Chinese Foreign Minister Wang Yi was in the country and, among other engagements, was to invite Rwanda to take part in the upcoming Forum on China-Africa Cooperation (FOCAC) summit to be held in Beijing this year. Rwanda accepted the invitation to the forum, which is among the largest platforms convening 29 member countries of the South-South cooperation, established in 2000. In an exclusive interview with Business Times, a Chinese official based in Kigali last week said that the preparations for the September summit were at an advanced stage. Hudson Wang Jiaxin, the Counselor at China’s Economic and Commercial Department in Kigali, said that this year’s summit would present a platform to discuss future investments between China and Africa. “FOCAC is a platform for China-Africa cooperation and for reciprocal dialogue with the idea to improve our socio-economic progress. This year’s summit is also the best platform to discuss future investments options and the strategies to achieve them,” he said. The previous summit was held in South Africa during which China made commitments to invest in Africa. At the Johannesburg summit, a commitment of about USD60 billion was made, thrice the USD20 billion commitment made during the 2012 FOCAC Summit. Wang noted that Rwanda has been receiving its share of the investment commitment and implementation over the past two years, most of which China had directed towards advancing the infrastructure sector. “Over the past years, right after the FOCAC summit in Johannesburg, China has been providing large sums of...

The East African Community produces only less than 30 per cent of the medicines it needs while it imports the rest, a situation that must be reversed to ensure citizens easily access affordable drugs, officials have said. This revelation was made last week during the launch of a 10-year strategic plan for pharmaceutical manufacturing at the EAC seat in Arusha, Tanzania. The launch was held on the margins of the first regional vaccine production symposium. “Vaccines are among a category of medicines that the region wholly depends on imports as currently there is no local production capacity. There is a vacuum and nature hates vacuum,” said Kirunda Kivejinja, the chairperson of the EAC Council of Ministers. Kivejinja is also Uganda’s second deputy prime minister and minister for East African Community affairs. “We are determined to reverse these negative trends and strengthen local production capacity,” he said, noting that the 2017-2027 roadmap seeks to address this issue. According to Christophe Bazivamo, the deputy EAC secretary-general for productive sectors, the action plan will guide the bloc towards evolving into an efficient and effective pharmaceutical industry. The bloc views the local production of essential medicines as contributing to attaining sustainable development goal (SDG) 3.8 – achievement of universal health coverage, including financial risk protection, access to quality essential health care services, and access to safe, effective, quality and affordable essential medicines and vaccines for all – in a more sustainable manner than through delivery of donated drugs to developing countries. “I am happy...

A fresh round of trade wars is simmering in East Africa after Tanzania and Uganda imposed taxes on Kenya made confectionery products like chocolate, ice cream, biscuits and sweets citing use of imported industrial sugar in the goods. The two states have rejected certificates of origin issued by the Kenya Revenue Authority (KRA) and opted to levy 25 per cent import duty on Kenyan confectioneries. Acceptance of the certificate-- a document showing where a good has originated so as to determine the import duty chargeable — guarantees Kenyan goods tax-free entry into Uganda and Tanzania. East Africa Community common market made up of Tanzania, Kenya, Uganda, Rwanda and Burundi allows free movement of locally manufactured goods within the bloc. Tanzania and Uganda revenue authorities have however accused the Kenyan manufacturers of tilting competition in their favour by using industrial sugar imported under a 10 per cent duty remission scheme. The region does not produce industrial sugar. Last week, Kenyan firms accused Uganda and Tanzania of using the customs taxes to restrict trade in East Africa. “This is an EAC-wide remission scheme that is available to all manufacturers in the region,” said Kenya Association of Manufacturers (KAM) chief executive Phyllis Wakiaga. “We are not supposed to pay duty when we sell in the region because our competitors in the region also rely on industrial sugar imported under the same remission scheme.” KRA has come to the defence of Kenyan firms saying confectionery products made of industrial sugar imported under the EAC...

NAIROBI, April 19 (Xinhua) -- East African countries said Thursday they have started developing a harmonized forest policy and strategy to increase forest cover and contain drought. The Intergovernmental Authority on Development (IGAD) countries who met in Nairobi said the initiative is aimed at improved contributions of forests resources to national economies for poverty reduction, environmental sustainability and development of the IGAD member states. "The initiative will contribute to the increment of forest cover to help contain drought that has been a major problem in the Horn of Africa," said Debalkew Berhe, IGAD's Program Manager for Environmental Protection during a forum in Nairobi. Berhe noted that the regional bloc was mandated with the responsibility of managing drought and desertification but over a period of time changed to sustainable development but drought continued to worsen productivity in the region. "Our solution is to develop a harmonized forest policy and strategy to help increase forest cover to improve rainfall pattern, increase food security, address water problem and help address climate change," he added. Berhe said that once the forest policy and strategy becomes effective, it will help address issues on socio-economic benefits of the forestry. According to Gabriel Rugalema, the UN Food and Agricultural Organization (FAO) Representative in Kenya, with the rising population in the region, there is need for forest policy and strategy to help reduce pressure on natural resources. Rugalema said that given the livelihood opportunities provided by forests and woodlands, it is not surprising that over the past few...

President Paul Kagame has said that even with the recent signing of the African Continental Free Trade Area (AfCFTA), African leaders must work to improve the business environment for citizens to fully benefit from the trade deal. Kagame was yesterday speaking in the United Kingdom at the Commonwealth Business Forum organised on the sidelines of the Commonwealth Heads of Government Meeting. Yesterday’s business forum convened government and business leaders to deliberate on whether Africa’s growth story is still alive and well, with a special focus on intra-African trade and attracting investment into Africa. In a panel session that also featured South Africa’s President Cyril Ramaphosa and Kenya’s Uhuru Kenyatta, Kagame said that leaders have to continuously improve their business environment to reap the full benefits of opening up the continent. “African Continental Free Trade Area was adopted last month by African leaders. Trade and investment are set to grow across the continent, creating opportunities for manufacturing and value addition. “We as leaders still have to make sure that the business environment keeps improving, so that citizens can fully benefit from trade and free movement,” he said. The agreement could go into force by the end of this year following the signing of the deal by 44 AU member states in March at an extraordinary African Union Summit held in Kigali. More countries are set to sign the agreement during the next African Union Summit slated for July in Mauritania. Kagame said that what has been done so far was a...

Economic growth in Africa rebounded, but “not fast enough” in recent past, according to Africa’s Pulse, a bi-annual analysis of the state of African economies conducted by the World Bank, released on Wednesday in Washington. The report, which was released during the World Bank Spring Meetings, however shows that, “Growth prospects have strengthened in most of East Africa, owing to improving agriculture sector growth following droughts and a rebound in private sector credit growth. In Ethiopia, growth will remain high, as government-led infrastructure investment continues.” The report suggests that Sub-Saharan Africa’s growth is projected to reach 3.1 per cent in 2018, and to average 3.6 percent in the 2019–20 period. The growth forecasts are based on expectations that oil and metal prices will remain stable, and that governments in the region will implement reforms to address macroeconomic imbalances and boost investment. “Growth has rebounded in Sub-Saharan Africa, but not fast enough. We are still far from pre-crisis growth levels,” said Albert G. Zeufack, World Bank Chief Economist for the Africa Region. To achieve high and sustained levels of growth, Zeufack says, African governments must speed up and deepen macroeconomic and structural reforms. The moderate pace of economic expansion reflects the gradual pick-up in growth in the region’s three largest economies, Nigeria, Angola and South Africa. Elsewhere, economic activity will pick up in some metals exporters, as mining production and investment rise. Among non-resource intensive countries, solid growth, supported by infrastructure investment, will continue in the West African Economic and Monetary...

Construction of the Northern Corridor transit transport route has been boosted with US$1.05m from Trademark East Africa. The funding will enable the agency to collect and analyze data related to transport of goods and persons. This follows the signing of a finance agreement between Trademark East Africa (TMA) and the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) on Tuesday. The money will be channeled from TMA through NCTTCA. The agreement was signed by NCTTCA acting executive Secretary, Fred Tumwebaze and Ahmed Farah from TMA. The Northern Corridor is East Africa’s main transport corridor that begins at the port of Mombasa with two routes; one through Uganda to South Sudan and the second one through Uganda, Rwanda, and Burundi to DRC. NCTTCA member countries include Kenya, Uganda, Rwanda, Burundi, South Sudan and Democratic republic of Congo, adds a press statement from TMA. NCTTCA oversees the corridor monitoring framework known as Northern Corridor Transport Observatory, which is a performance monitoring tool that informs interventions geared towards reducing costs and delays of transportation and other related logistics challenges. With the new financing, the Authority will improve monitoring of the Northern Corridor performance with regards to movement of people and goods. The statement adds that the authority will adopt modern technologies, including mobile based and online systems to enhance its capability to monitor trade and transport flows, bottlenecks and impact of interventions. Information from TMA indicates that data collected will support evidence-based advocacy and decision-making, resulting to fit for purpose interventions in reducing...

Fostering international development has long been viewed as central to the moral, humanitarian, strategic and security interests of the United States. In particular, there is one area where the United States has been a leader in development assistance — providing trade preferences to African countries, most of which are low-income countries. This has been achieved through the African Growth and Opportunity Act (AGOA), which was initially passed by U.S. Congress in 2000 and signed into law by President Bill Clinton. The legislation was deliberately renewed by both Presidents George W. Bush and Barack Obama. AGOA demonstrates the power of U.S. trade policy to bring about significant change in Africa through measures that, while trivial from the American perspective, can have a sizeable impact in Africa. Specifically, AGOA allows for eligible African countries to export a long list of goods to the United States without paying the import tariffs that most countries must pay and without being subject to import quota restrictions. The beauty of AGOA lies in the fact that it costs the U.S. very little to implement in terms of lost tariff revenue and lost market share. In fact, it’s fair to say that the implementation of AGOA has had zero impact on the U.S. economy, and close to zero in terms of American tariff revenues. At the same time, however, AGOA has resulted in an increase in exports in some key products that have been massive when measured by African standards. For example, apparel exports, which have historically...

TradeMark Africa (TMA) and the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) yesterday signed a financing agreement worth US$ 1.05 million.TMA will disburse the money to the NCTTFA secretariat over a 3-year period (2018 – 2021). Funding will enable the agency to collect and analyse data related to transport of goods and persons along the transport corridor, therefore informing decision making The Northern Corridor is East Africa’s main transport corridor that begins at the port of Mombasa with two routes; one through Uganda to South Sudan and other through Uganda, to Rwanda, Burundi to DR Congo. NCTTCA member countries include Kenya, Uganda, Rwanda, Burundi, South Sudan and Democratic republic of Congo. NCTTCA oversees the corridor monitoring framework known as Northern Corridor Transport Observatory, which is a performance monitoring tool that informs interventions geared towards reducing costs and delays of transportation and other related logistic a, challenges. With the new financing, the Authority will improve monitoring of the Northern Corridor performance with regards to movement of people and goods. It will adopt modern technologies, including mobile based and online systems, to enhance its capability to monitor trade and transport flows, bottlenecks and impact of interventions. Data collected will support evidence-based advocacy and decision making. This initiative will complement monitoring the implementation of the Mombasa Port Charter. TradeMark was represented by Country Director for Kenya, Ahmed Farah, while NCTTCA was represented by Ag. Executive Secretary Fred Tumwebaze. NCTTCA collects data from over 20 stakeholders in all the member countries with the...