New measures to protect local industries and farmers from cheap imports will be known in June once the East African Community partner states agree on taxation rates. The region’s finance ministers will meet next month meet to agree on a new Common External Tariff (CET) on products like sugar, maize, wheat and rice, as well as customs-related taxation measures designed to protect local industries from cheap imports and unfair competition. Kenya’s Cabinet Secretary for the National Treasury Henry Rotich said taxation measures that will be agreed on by the EAC ministers for finance will be communicated through the EAC Gazette Notice and implemented from July 1. “On matters relating to Customs, we have evaluated various proposals from stakeholders for consideration by the EAC ministers for finance during the pre-budget consultations meeting to be held in May this year,” Mr Rotich told lawmakers in Nairobi while presenting the country’s 2017/2018 budget. The current CET is based on three bands of 25 per cent for finished goods, 10 per cent for intermediate goods and zero per cent for raw materials and capital goods, with a limited number of products under the sensitive list, which attract rates above the maximum rate of 25 per cent. The three-band tariff has been blamed for killing competitiveness of local companies and obstructing intra-regional trade by forcing them to pay duty at the rate of 25 per cent on some imported inputs, which should have ordinarily attracted zero per cent or 10 per cent duty. The EAC CET was last reviewed in 2010 but the...

Arusha. Nearly seven years after the coming into force of the East African Community (EAC) Common Market Protocol, the issue of free movement of labour is still contentious. Concerted advocacy by lobby groups such as the East African Employers Organisation (EAEO), the East African Trade Unions Confederation (EATUC) and others do not appear to have yielded much results. However, Tanzania, which has been viewed as being largely against the free movement of workers in its attempt to protect its national labour force, has reduced its residence permit fees by 50 per cent. For Ms Rosemary Ssenabulya, EAEO chairperson, this was “a great achievement” in the EAC integration process considering that it was the most contentious issues the organisation has been advocating for in the last two years. It was in 2015 when the employers’ body presented a joint petition with EATUC to the East African Legislative Assembly (Eala) on removing barriers to free movement of workers. “However, we still need to do more lobbying in this area until the fees are harmonised to zero the way other partner states of Kenya, Rwanda and Uganda have done,” she said during an annual general meeting of EAEO held in Arusha last week. Towards the end of last year, Kenyan President Uhuru Kenyatta asked Tanzania and Burundi to waive work permit charges in the spirit of EAC of allowing free movement of people and goods. He said the dream of a borderless East Africa would be realised if all partner states honoured an...

Vinod Madhavan, head of transactional products and services for Africa at Standard Bank, said the continent is expected continue as the second fastest growing region in the world over the next four years returning growth rates between four and five percent. He said intra Africa trade reduced due to low commodity prices last year, and trade within the continent would create more jobs. Madhavan said, “Africa could increase its intra- Africa trade three fold and still not match Asia’s level of internal trade. In Asia, trade and exports have been central to the region’s exponential growth, lifestyle improvements and stability of the last 30 years.” “As commodities rebound, 2017 is expected to set new records in the volume and value of African trade however, the point is not to get side-tracked by some of the current headwinds,” he added. He said Africa should learn from Asia, increase trade volumes in the continent for maximum benefits. Global and cross-border trade is the fastest contributor to growth, and it supports domestic trade, small and medium enterprise formation and job creation. Madhavan said this has been seen in emerging markets over the last 30 years. He however cautioned that Africa should address the current challenges like legislators not adopting the most efficient policies and political risks. Madhavan said there has been debt default in Mozambique and local currencies are losing value, U.S. dollar and other hard currencies remains scarce within key economies. He also mentioned, there have been over 10 bank defaults in...

The second East African Manufacturing Business Summit and Exhibition scheduled to start in Kigali on May 23 will, among others, look into the biggest challenges faced by regional manufacturers and how they can be addressed. François Kanimba, Minister for Trade, Industry and East African Community Affairs said this during a press conference at the ministry head office yesterday. Accompanied by Christophe Bazivamo, the Deputy EAC Secretary General in charge of Productive and Social Sectors, Kanimba told reporters that for the past two days, they had a successful steering committee meeting to plan for the three-day meeting. Kanimba said: “Key-issues to be addressed include: how can the region market itself best? Where are the major investment opportunities? What currently are the biggest challenges for regional manufacturers and how should
they be addressed?” The summit, he added, will also look at the success factors for manufacturers in the EAC, how to gain competitiveness in price and quality, how to deal with environmental concerns, and what can be done against counterfeits, illicit trade and intellectual property violations, among others. Other important matters during the conference will include: how to develop the requisite qualified labour force (industrial skills), sectors that are most affected by EAC regulations, and the role of the EAC Diaspora. Kanimba said: “The forum seeks to create an avenue for the private sector to advocate and campaign for the acceleration of industrial reforms aimed at improvement of investment conditions in the EAC strategic sectors.” The EAC region, he noted, already identified strategic...

It will be a big leap into the unknown once the United Kingdom triggers formal talks to leave the European Union. The EU’s existing trade agreements will then no longer apply to Britain and have to be renegotiated. “We don’t know where we are going to end,” Ghana’s Foreign Affairs Minister Shirley Ayorko Botwey told DW. “Are we going to have to sign new agreements? And if so which agreements are we going to sign? All these things are very fluid at the moment, so you can’t say much.” Traditionally, trade with the UK has been very important for African Commonwealth countries like Ghana. At its peak in 2012, UK-Commonwealth Trade accounted for $120-billion (€110-billion), according to the Commonwealth. Some are hopeful the UK might be eyeing to boost trade with its former colonies. Better deals for Africa? “With UK going solo, it may strengthen our course to face them one-on-one,” said financial analyst Courage Martey. Rather than dealing with the EU as a whole, “there is an opportunity for us to balance the scale, to ensure that we strike trade deals that favor especially our local business.” “Initially there were fears that Brexit would be harmful to the South African economy because of the threat of a decline in European economic growth as a result of Brexit. But those fears have been allayed more recently as we have seen increased interest by the British in South Africa,” said Azar Jammine, Chief Economist at the Johannesburg-based consultancy Econometrix. “The latter...

EAC Secretary General Liberat Mfumukeko and ICGLR Executive Secretary Zachary Muburi Muita signed a memorandum of understanding that focuses on cooperating mainly in the matter of peace and security as well as political affairs. “Among the areas identified for joint intervention are development of capacities to address conflicts, refugees and humanitarian issues, promotion of democracy and good governance,” Mfumukeko said. He added that other sectors requiring joint intervention include the fight against illegal exploitation of natural resources, the promotion of the private sector and the civil society as well as combating gender based violence (GBV). Mfumukeko indicated that priority areas for joint intervention are peace and security, conflict prevention, border security management, trans-boundary crime management and circulation of small arms and light weapons. He said, “With regards to democracy and good governance, priorities include deployment of election monitors in regional elections.” According to Mfumukeko, the most immediate concern from the EAC perspective is “solving the Burundian crisis in a sustainable way” and addressing the “deteriorating humanitarian situation” prevailing in South Sudan. Members of the East African Community (EAC) are at the same time members of the International Conference on the Great Lakes Region (ICGLR). The EAC is made up by six countries including Burundi, Kenya, Rwanda, Tanzania, Uganda and South Sudan and its secretariat is based in Arusha, Tanzania. For its part, the ICGLR is made up by 12 African Great Lakes countries including Angola, Burundi, the Central African Republic, the Republic of Congo, the Democratic Republic of Congo (DR...

The planned Sh31.2 billion upgrade of a key link road between Kenya and South Sudan is set to begin, raising prospects of enhanced cross-border trade. The Kenya National Highways Authority (Kenha) yesterday signed contracts for the job on a stretch running from Loichangamatak to Lodwar, Nadapal, and Nakodok which has been impassable. The road’s construction, funded jointly by the World Bank and the government, is expected to be complete in three years. “This component is an important link along the Biharambo–Mwanza- Musoma-Sirari-Isebania-Kitale–Lodwar –Lokichogio-Nakodok-Juba Transport Corridor of the East African Community’s regional trunk road network,” said Kenha director-general Peter Mundinia. Kenya’s main transport artery has traditionally been the Northern Corridor, running from Mombasa through Nairobi to the border with Uganda at Malaba. The upgrade of the road will come as a boost for traders who use it for South Sudan’s export and imports. Its deplorable state has hindered the movement of cargo. Total inflows Imports from Kenya make 25 per cent of South Sudan’s total inflows. The road has been identified as an important catalyst for integration of South Sudan into the regional economy and as an important link in the international road connection between Kenya and its neighbours. “Upgrading of the East Africa Regional Transport, Trade and Development Facilitation Project well known as the South Sudan Link Development Corridor, will transform lives and improve the movement of goods and people along Lokichar-Nadapal/Nakodok part of the Eldoret-Nadapal/Nakodok road in the north western part of Kenya in particular and to enhance connectivity...

The East African Community (EAC) partner states are being urged to expedite harmonisation of standards for the prioritised 20 most traded goods such as edible fats and oils so as to boost regional trade. Compliance with standards and market requirements are prerequisites for successful market access and for improving the competitiveness of exporters in the region. Lilian Awinja, the chief executive of the East African Business Council (EABC), says that although partner states have done a great job on harmonising several standards, many more standards are yet to be harmonised. According to the apex body of business associations of the private sector and corporates from the EAC, partner states also should increase adoption rate for harmonised regional standards for the 20 most traded goods. “There is still a low adoption rate of harmonised regional standards. This has led to costly and time-consuming re-testing processes or denial of market access,” said Awinja. According to Awinja, lack of a regional technical regulations framework contributes greatly to the application of national technical regulations, which do not have a common administrative approach neither in process nor in the list of standards declared as mandatory. “This situation is exacerbated by a frequent misunderstanding amongst stakeholders on the different roles of regulatory authorities and national bureaus of standards and the lacking coordination among those institutions.” Raymond Murenzi, the director general of Rwanda Standards Board (RSB), said in the case of Rwanda and other partner states – besides Tanzania – there is no misunderstanding among stakeholders on...

Prime minister urged not to heed call by hardliners to refuse to settle debts with Brussels after triggering article 50 Theresa May will be urged by pro-EU Conservatives to reach a quick deal over the divorce bill from Brussels in order to maximise the chances of reaching a free trade deal within the tight deadline for Brexit talks. As the prime minister prepares to trigger article 50, the formal process for leaving the EU, on Wednesday, rebel Tories who seek the closest possible relationship with the EU are preparing to offer May political cover for settling what they see as Britain’s debts to Brussels. They fear that Britain could waste valuable time and erode goodwill by locking horns with the remaining members – the EU27 – over the price of exit, which must be agreed upfront, according to the EU’s lead negotiator, Michel Barnier. They are concerned that dragging out the issue would hand Brexit hardliners an excuse for walking away from the negotiating table without a deal. Barnier has suggested the outlines of a deal must be agreed within 18 months in order to allow EU member states to ratify it before the two-year deadline set out in article 50 of the Lisbon treaty. Neil Carmichael, the Stroud MP who campaigned for remain, said: “If we’re going to row about money all the time, then we’re not going to find ourselves in the right kind of relationship. Some of this money is about the support that we have been...

he East African Community (EAC) and the International Conference for the Great Lakes Region (ICGLR) jointly has organized from 27 March, a two-day meeting in the capital Bujumbura to discuss the regional challenges “We shall seek to develop common positions in tackling the political problems affecting some of the countries belonging to both organizations such as South Sudan and the Burundi-Rwanda political impasse”, says Zachary Muita-Muburi, the ICGLR Executive Secretary during the joint ICGLR/EAC meeting, this 27 March in the capital Bujumbura. The same view is shared by Libérat Mfumukeko, Secretary General of the EAC: “Our main concern is how we can draw on our synergies towards finding a sustainable solution to the Burundi political impasse and respond to the deteriorating humanitarian situation in the Republic of South Sudan.” The EAC Secretary says among the areas identified for a joint intervention are the development of capacities to address conflicts, refugees and humanitarian issues, promotion of democracy and good governance, fight against illegal exploitation of natural resources, promotion of the private sector and civil society as well as combating sex and gender based violence. The ICGLR Executive Secretary says the EAC is a regional economic community committed to the promotion of the regional integration in order to transfer and foster economic development. As for the ICGLR, he says it is a regional mechanism established for the purpose of facilitating member states working with partners for political interventions to tackle peace and security challenges. “There is necessity for the two organizations to work...