Rwanda’s informal cross border exports continue to surge by 28.3 percent in the first half of 2016, despite trade hiccups since the beginning of 2016 before climaxing in July with Burundi closing its trade borders. Central bank of Rwanda indicates in its half year results that the country’s informal cross border  export receipts which accounts  for  24.6% of  its total  exports amounted to U$ 66.2 million in the first half of 2016 from U$ 51.6 million in the same period of 2015. Informal trade captures trade between borders that is normally done by communities around borders and may not be recorded among the country’s main trade statistics but is the trade driver along the borders. Over 75 percent of this trade is done by women. Democratic Republic of Congo accounts for 65.8% of Rwanda’s total informal cross border exports, while Uganda accounted for 26.9% and Tanzania, 7.3 percent. Informal trade with Burundi is lagging behind with 0.03 percent. The positive outlook in total informal export receipts John Rwangombwa, Governor of Central Bank says “is due to the high exportation of livestock as well as mobile phones to Uganda,” with Uganda taking over from Burundi. In July this year, second vice president of Burundi, Joseph Butore warned that any local leader or police officer who will endorse export to Rwanda “will have problems”. While this declaration was just a public announcement, Rwandan communities neighboring with Burundi told KT Press that trade with Burundi; the smallest economy in the region has been...

President Uhuru Kenyatta and Japan's Prime Minister Shinzo Abe witness the signing of agreements between Kenya and Japan at State House, Nairobi. /PSCU   A total of 73 Memorandums of Understanding were signed during the 6 th TICAD conference that came to a close on Sunday in an unprecedented move to boost trade between the African continent and Japan. This follows closely the Asian economic giant’s pledge to commit three trillion shillings in public and private support for infrastructure development, education and healthcare expansion in Africa. The package would be spread over three years from this year and include one trillion shillings for infrastructure projects, to be executed through cooperation with the African Development Bank. Another two trillion shillings would be injected by private investors, and included some of the MOUs signed on Sunday. The three trillion is in addition to the 3.2 trillion that Japan pledged to Africa over a five-year period at the last TICAD meeting in 2013. Japan Prime Minister Shinzo Abe said 67 per cent of the previous funds that his country had pledged to Africa had already been put to use in various projects. Under the MOU signed Sunday, the funds will focus on infrastructure, education, health, agriculture, ICT and mining among other sectors. The funding is in addition to measures taken by Japanese businesses as well as the governments of Japan and African countries and relevant organizations, to promote Japanese business activities in Africa. The 73 MOU’s involve 22 Japanese companies and universities with...

The EALA lawmakers said dissolution of key units at the EAC secretariat had interrupted the critical projects on climate change mitigation, and they wanted it revived. climate changeShy-Rose Bhanji, an EALA member from Tanzania, said without climate change programs, the region’s environment, including flora and fauna, would be at risk. “Let us take an example of Mount Kilimanjaro whose ice is diminishing at the moment due to the impacts of climate change. A day may come when the mountain has no ice or water. There is a dire need to re-establish the unit,” said Bhanji. Abubakar Zein, an EALA member from Kenya, said revival of the EAC climate change program should go hand in hand with the creation of a budget line for it. Dora Byamukama from Uganda said: “We should move beyond mitigation to include adaptation, which requires us to look at green housing, irrigation and planting of seeds among others.” Enditem Source: News Ghana

Recently I was in an argument with some friends who insisted that since such an influential country like  Britain is abandoning the European Union, why bother with the East African Community? It is sometimes forgetten that long before the EU, the former East African Common Services arrangement was working out quite will until nationalisitc politics set in. Imagine where we would be after 50 years! With all due respect to the British decision, it does not mean economic integration cannot work. One only has to see what this region hwas achieved during the past 17 years. Even better, East Africans  should look further afield across Africa and see how the rest are faring. The EAC has many problems, which eventually we will solve, but the point is that regional integration has boosted the profile of our part of Africa. International multilateral bodies talks about the EAC with some respect. Many are willing to lend a heling hand, in terms of financial and technical know-how to make sure we have the best chances of suceeding. Without a doubt, Brexit was a blow to the concept of integration, but in my opinion, being on an island with a long history, the British never really got used to having to kowtow to ‘faceless’ beings in Brussels. Source: Business Week

BRAIDS: Tanzanian Maasai hair stylists organise themselves to avoid these restrictions and provide services informally abroad beyond the EAC.   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,...

According to EPA terms, the EU can only strike a trade deal with a bloc comprising several nations, meaning a single country cannot go it all alone. PHOTO | FILE | NATION MEDIA GROUP  IN SUMMARY Rwanda’s Minister for Trade and Commerce Francois Kanimba said politicians should put the region’s collective gains ahead of individual state interests and put ink to paper on what he believes is a “good deal” for the region. Rwanda’s Minister for Trade and Commerce Francois Kanimba has warned of cracks in the East African Community if member states fail to sign the Economic Partnership Agreement (EPA) with Europe. Mr Kanimba said politicians should put the region’s collective gains ahead of individual state interests and put ink to paper on what he believes is a “good deal” for the region. “The issues being raised against the EPA are issues that have really been taken care of and sufficient safeguards have been put in the final agreement to ensure the protection of our infant industries,” he said. “If in the future there is a threat to our economies, we can renegotiate. The EPA is not a bible. We agreed that after every five years, we totally renegotiate and evaluate the agreement. If at any time any member state feels disadvantaged by the EPA, it can raise the issue for discussion,” Mr Kanimba added. He termed the EPA a “strong commercial benefit from a trade perspective,” views that are not supported by Tanzania and Uganda. Former Tanzanian president...

A law capping interest rates in Kenya has stoked fears of copycat legislation in East Africa and a reversal of common integration policies ahead of the launch of a regional monetary union. TEA GRAPHIC | FILE IN SUMMARY A law capping interest rates in Kenya has stoked fears of copycat legislation in East Africa and a reversal of common integration policies ahead of the launch of a regional monetary union. Under the East African Community Monetary Union Protocol, the member states committed themselves to pursue a free market economy with a floating exchange rate. Experts believe the law will block credit from reaching higher risk borrowers and could force banks into mergers, replacement of staff with technology and to establish subsidiaries in regional markets where interest rates are not capped. A law capping interest rates in Kenya has stoked fears of copycat legislation in East Africa and a reversal of common integration policies ahead of the launch of a regional monetary union. By virtue of Kenya being the most developed economy in the East Africa Community, its apparent abandonment of the free market ideals at the heart of the monetary union convergence criteria has left regulators and investors uncertain of the direction of the protocol. National Bank of Rwanda Governor John Rwangombwa said money managers across the region were waiting to see the impact the caps would have on access to credit but maintained that controls were not always good in managing financial issues. “National laws are supposed to address...

Japanese Prime Minister Shinzo Abe speaks at a Ticad VI side event in Nairobi on August 26, 2016. PHOTO | SIMON MAINA | AFP IN SUMMARY In the previous meeting in Yokohama, Japan, the Asian nation pledged $20 billion. This has seen it fund several projects across various sectors. Ahead of the meeting, African countries agreed to speak with one voice in pushing for more investments in health and skills development, as well as social-economic infrastructure projects. The Draft Nairobi declaration report seen by The EastAfrican puts emphasis on skills development, science, technology and innovation especially for the youth.   African countries expect Japan to pledge more than $32 billion for industrialisation, water, security, education and health projects at the sixth Tokyo International Conference on African Development (Ticad) meeting in Nairobi this weekend. Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed said Ticad VI would be dealing with “a number of critical issues pertinent to Africa.” “The key areas are the overall continental economic growth agenda; Africa’s infrastructure development programme; agriculture and farming; peace and security as well as, questions of social inclusivity. So far we expect more than 60 memoranda of understanding to be signed between Japan and African governments during the forum, highlighting one of the biggest potential benefits the African business leaders will obtain from the summit,” said Ms Mohamed during an interview ahead of the meeting. In the previous meeting in Yokohama, Japan, the Asian nation pledged $20 billion. This has seen it fund several projects across various sectors. Ahead of the meeting, African countries agreed to speak with one voice in pushing for more...

Arusha — A renewed call has been made to use Kiswahili for regional integration in East Africa. Members of the East African Legislative Assembly (Eala) acknowledged on Wednesday that with growing interest, the language has a big role in uniting people in the region. "Besides promoting unity among the EAC populace, Kiswahili is a critical medium of communication that will facilitate trade in the region," said Patricia Hajabakiga a legislator from Rwanda. She made the remarks during a debate of the Report on Sensitisation exercise which is underway in all the five East African Community (EAC) member countries. Her remarks were supported by Mr Mike Sebalu from Uganda, who rooted for Kiswahili as the key language that bonds and enables the citizens of the region to communicate effectively and efficiently. The report presented by Ms Hajabakiga, Chair of Eala Rwanda Chapter, is a culmination of outreach and sensitisation activities carried out in the partner states by the various country Chapters of the regional Assembly in June this year. The activities held between June 9, and 28, 2016, were anchored under the theme: EAC Youth Agenda: Accessing the Gains. Source: All Africa

TANZANIA could capitalise on food crisis striking most African countries, an initiative that would boost its foreign exchange earnings. The abundant agriculture land resources give the country enormous development potentials that through use of modern technologies could transform farming activities and lead to improved living standards. The Chinese Ambassador to Tanzania, Mr Lv Youqing, said in Dar es Salaam last week that almost half of African countries face the challenge of food crisis, thus giving Tanzania huge potential to capitalise through export of grains. “Tanzania is currently implementing the second five-year plan to accelerate the industrialisation progress which in return boots development of agriculture and the completion of infrastructure,” he said. Local investors, their Chinese counterparts and others from the globe should seize the immense opportunities in the agricultural sector. Sanson is the famous enterprise both in China and the world that has seen this huge opportunity in the agriculture sector and decided to develop the market in Tanzania, thus providing an opportunity for the development of local enterprises. To capitalise on the immense opportunities in the agriculture and infrastructure projects, Sanson heavy equipment Tanzania has established an enterprise in the country to seize the opportunity. Sanson has invested in the new facility to strengthen its capability to serve its customers efficiently. In terms of logistics, the sales and services center is ideally located near the port of Dar es Salaam and the Julius Nyerere International Airport (JNIA), which are in close proximity to the new facility and which allows...