ARUSHA, TANZANIA – Tanzania and Ethiopia governments are in final arrangements to sign a 400-megawatt power purchase agreement on the sidelines of the next Eastern African Power Pool (EAPP) talks in Tanzania.  “The project aims at enabling East African Community (EAC) member states to identify sources of cheap electricity for increased power interchanges. Ethiopia has made progress in hydropower generation and is also endowed with abundant renewable energy resources. “These include untapped geothermal, solar and wind energy. At the moment Ethiopia is generating 6,000 megawatts, which can be accessible to neighbouring states,” Felchesmi Mramba, the Managing Director of the Tanzanian power utility company (TANESCO) said last week. Mramba, said the official signing of the power pact with Ethiopia would be preceded by the EAPP meeting in Arusha bringing together representatives, including lawyers, from all the member states. Countries forming the Eastern Africa Power Pool include Kenya, Rwanda, Burundi, Uganda, Ethiopia, Egypt, Sudan, the Democratic Republic of Congo (DRC), Eritrea and Tanzania. Mramba said installation of power generation and transmission facilities would not only foster economic integration but also cater for the region’s power needs for the next 25 years. Mramba said, “Interconnection of the power systems entails synchronisation of electricity supply services such that an area of power, abundance would offset shortages in another country, and vice-versa. Studies in 2009 established the technical and economic viability of the project to meet population growth demand” Ethiopia, through the Ethiopian Electric Power (EEP) authorities, has been exporting electricity to neighbouring countries like...

Last week I attended and made a presentation at a roundtable on manufacturing in Kenya hosted by the Overseas Development Institute (ODI). The roundtable was under ODI’s Supporting Economic Transformation Programme (SET), which is supported by DFID. As part of the roundtable I developed a paper on manufacturing in Kenya and thought it would be useful to share some insights I unearthed during my research on manufacturing in East Africa. At the moment, the manufacturing sector in Kenya is the largest in the east African region. However, in terms of growth other countries in East Africa are growing faster. Data from ODI indicate that the growth of the sector in Kenya is far slower than Ethiopia, Rwanda, Tanzania and Uganda. If this trend continues, other countries will begin to dominate manufacturing in the region. Further, governments in East Africa seem to be putting in more effort to build manufacturing through the creation of industrial parks in countries such as Ethiopia and, making land available for manufacturing particularly for labour intensive manufacturing. Uganda and Tanzania are also determinedly positioning themselves as investment destinations for manufacturing in Africa. This impetus needs to be more strongly echoed in Kenya from the highest levels of county and national government. Furthermore, while Kenya remains an attractive investment destination for manufacturing, other countries in the region are aggressively courting such investment. There is a growing sense that the bureaucracy and corruption in Kenya as well as difficulty in getting the right information on requirements linked to...

The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment—particularly in resource-rich countries. Get the magazine, the app and full web access from $1 a week New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15 percent of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17 percent in South and Central America, and 62 percent in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive economic integration In June, African leaders signed the Tripartite Free Trade Area agreement. This...

Tanzania Ports Authority (TPA) and Tanzania Zambia Railway Authority (TAZARA) have vowed to work together closely in a bid to enhance efficiency and offer cost effective services to customers. During their meeting which was held in Dar es Salaam recently, the Chiefs of the two authorities, Eng Deusdedit Kakoko of TPA and Eng Bruno Ching'andu of TAZARA agreed to have regular consultative meetings focusing on information sharing and strategising on efficient cargo handling. "We call upon all stakeholders to offer seamless transport services in order to reduce transport costs and transit times for assured business on the Dar es Salaam Corridor Route," Eng Kakoko said during the meeting. The meeting was also attended by Chief Executive Officer (CEO) of MOFED, the Zambian Government owned clearing firm, Mr. David Chimfwembe. About 99.7percent of all cargo from the port of Dar es Salaam is transported by road compared to 0.3 percent transported by rail which is not very economical. Transit traffic at Dar es Salaam port accounts for 34% of the total throughput and Zambia is the first transit customer whose traffic cargo has been growing from 1,830,005.00 in 2014 to 1,903,979.00 in 2015. Eng Ching'wandu noted that it is in the interest and vision of both parties to see cargo from the port transported via a vibrant railway network. "The vision calls for closer cooperation between all stakeholders in the transport chain," he said Source: Tanzania

It is too early to be certain, but this may be the first sign of African countries using Brexit to renegotiate and leverage fairer trade terms. The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment – particularly in resource-rich countries. New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15% of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17% in South and Central America, and 62% in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive...

In this special report, Dr. Einir Young and  Jalia Nabukalu Packwood of Bangor University, take a look at the market challenges and development issues facing used clothing exports and East Africa. The Textiles Recycling Conference in London will hear more about this market (see the conference website for more details). In March 2016, the heads of state of the East African Community (EAC) agreed to phase out the importation of used textiles and leather products from third countries within three years (by 2019), with the view of promoting vertical integration of the industries in the textile and leather sector within the EAC. When looking at this decision from the outside, one has to wonder why the EAC leaders came to such a conclusion given that almost 80% of the population of some EAC countries such as Uganda purchase used clothes and the trade employs thousands of people who would otherwise be without work. It isn’t clear how it will be possible to grow the new textile and leather industry in the EAC as the appropriate infrastructure to support the sector’s growth is limited. This directive and previous EAC policies aimed at stopping the trade in used textiles is not good news for the UK textile recycling sector or that of Europe, America and other exporting countries. UK charities, textile sorters, processors and traders have been affected as a result of a reduction in demand and falling prices per bale.  This in turn threatens the progress made in the UK and...

East Africa is set to be the fastest growing region in Africa this year after posting a regional growth rate of 6.7 percent, prompted by the sharp rise is cement use. Throughout the region, the use of cement has been on the rise as construction sites crop up. Kenya National Bureau of Statistics (KNBS) data shows the consumption of cement in Kenya reached 5.23 million metric tonnes in November 2015, slightly higher than the 5.19 million metric tonnes registered in 2014. The data show construction sector grew by 11.3 per cent in the first quarter of 2015 compared to a growth of 7.6 per cent in a similar period in 2014. The construction sector is estimated to have expanded by 14.1 per cent between July to September compared to a growth of 8.8 per cent in the same period of 2014. The growth was on account of increased public infrastructure projects and private sector development in the real estate sector. In Uganda, cement consumption is expected to increase by at least 12% over the next 3 years. Tanzania has made great strides in improving its infrastructure with the cement industry being a key beneficiary of the building boom. The East African governments are now focused on infrastructural delivery and ways to close the most important infrastructure gaps in planning for new cities. Both the transport and power sectors have critical infrastructure needs in the region and ICT infrastructure is another growing sector now considered key to development. Africa has the...

By Sam Okwakol Trade in professional and education and health services features high on the agenda of policy makers and regional organizations in Sub-Saharan Africa, but a host of roadblocks are in the way preventing this from happening. For example, according to 'The Unexplored Potential of Trade in Services in Africa' a report commissioned by the World Bank, all five East African Community (EAC) countries have committed to removing the most explicit barriers to trade in education and health services as part of the 2010 EAC Common Market Protocol. Several EAC countries have placed professional services at the top of the list to be integrated in the EAC Common Market. But despite progress in recent years, most regional services markets remain fragmented by restrictive policies, such as nationality requirements, and regulatory heterogeneity (these are non-tariff barriers that originate from national regulations), for licensing, qualification, and educational requirements. Critics say the central issue is 'protecting one's turf'. Lawyers, accountants, doctors and the other professionals do not want nationals from neighbouring EAC member states upsetting their cosy relationships. Consequently, several barriers, beyond perhaps a lengthy accreditation process, are then put in place to frustrate allcomers. Despite strong demand for services provided by foreign suppliers, undertaking trade is not easy. Multiple barriers are placed on the physical movement of service suppliers, including high-priced visas, difficulties obtaining work permits, and elusive residence status. To circumvent such barriers, most services providers form networks. For instance, Tanzanian Maasai hair stylists organize themselves to avoid these restrictions...

EAC countries have been advised to build the capacity of Agro processing industries in respective countries, so that they can be able to cope with emerging issues of climate change. Effects of climate change on the industry include reduced raw materials due to either prolonged dry spell or flooding which all lead to food losses among others. The call was made by the minister of state for Industry in the ministry of trade, Michael Werikhe Kafabusa while officiating at the first PACT EAC regional meeting at Silver Springs Hotel recently. It was organized by SEATINI Uganda and CUTS International. The project Promoting Agriculture climate Trade (PACT) linkages in East Africa Phase2 builds capacities of East Africans for climate change awareness, trade driven, and foods security enhancing agro processing in the region. Werikhe said that Agro industrial development presents substantial prospects for the region generating economic growth, new sources of food and income leading to poverty reduction. "It is therefore important to support them through capacity building so that they are aware of the realities of climate change in their works and prepare them so that they can remain productive in the face of effects of climate change," said Werikhe. According to the minister, the first phase of the PACT EAC project have already influenced Uganda Policy, notably the National Trade Sector Development plan which has a linkage between climate change to food security. He told participants to identify key agro processing sectors so as to ably advocate for them with...

Arusha — The East African Legislative Assembly (Eala) has passed a resolution to make Kiswahili an official language of the East African Community alongside English. The resolution sailed through after hours of heated debate at a special session held here on Thursday evening during which, the lawmakers underscored the need to elevate Kiswahili as one of the official languages of EAC from the current status of lingua franca. The motion to recognise Kiswahili as one of the official languages of the Community was tabled by three legislators being Mr Abdullah Mwinyi and Ms Shy-Rose Bhanji, both from Tanzania and Mr Abubakar Zein from Kenya. "It is our conviction that the Heads of State of EAC will endorse this motion to enable amendment of the EAC Treaty which has only English as the official language," said Ms Bhanji when she moved the motion before the House before it adjourned for the weekend recess. Pressure is mounting and intensive lobbying is already underway to have the issue brought up before the Extra-ordinary Summit of the regional leaders slated for Dar es Salaam early next month. After a heated debate in the House the legislators eventually agreed that the move to legalise Kiswahili as one of the official languages was long overdue and for it to be realised, the EAC Treaty has to be amended. The outspoken legislator said Kiswahili played a big role in uniting the people of EA from the pre-independence days and that, even the colonial administrators did not lose...