Signs of protectionism in East Africa since the commencement of the bloc's Common Market regime have frustrated free movement of people and services. Integration efforts have been hampered by work permits required by some countries and delays in ratification of mutual recognition agreements for various professionals. Protectionist tendencies exhibited by some member states are mainly driven by the desire to shield certain sectors from foreign rivals. Whereas tariffs charged against foreign firms and professionals entering certain markets offer attractive revenue collection streams for countries, the overall share of tariff revenues in the East African Community has dropped to around 1.5 per cent of GDP since the Common Market was launched in July 2010, according to Mario Mansur, a tax expert based at the International Monetary Fund. "The application of such fees is driven by a traditional desire to collect more tax revenues needed to fund national programmes. But protectionism also plays a big role in countries seeking to protect local enterprises from aggressive foreign competitors," said Adam Mugume, executive director for research at the Bank of Uganda. Hurdles Whereas Tanzania recently announced reductions in work permit fees and professional service fees levied on foreign workers and businesses operating in the country, continued enforcement of these fees still poses hurdles to free movement of labour and services, contrary to provisions of the Common Market Treaty. Work permit fees have been slashed from $2,000 per year to $500 per year for every individual while professional service fees have been reduced from $3,000...

MEMBERS of Parliament in Tanzania have dealt a crushing blow on hopes for the East African Community to sign the Economic Partnership Agreement (EPA) with the European Union as a bloc after rejecting it as a raw deal. The lawmakers meeting in Dodoma last week urged the government not to sign the Economic Partnership Agreement (EPA) between the European Union (EU) and the East African Community (EAC) member states saying they want a better deal that will protect the country’s infant industries.The agreement was tabled before the house on Monday last week by the Minister for Industry, Trade and Investment, Charles Mwijage for discussion. They argued that the country would not be able to protect domestic industries against more sosphicated European Union competitors. The MPs now want the government to negotiate a new deal which is more favourable to the country or renegotiate the agreement on terms which would protect country’s burgeoning industries. Tanzania is promoting an industrial economy as it is focused to transform from an agricultural economy to a semi-industrial economy by 2025. Negotiations between the EU and the East African countries over the trade deal have been going on since 2007 and an agreement was finally reached in 2015. However, the implementation of the deal has been impeded by MPs in both Tanzania and Uganda because of concerns relating to EU exports harming domestic industries. Lawmakers from both the ruling Chama Cha Mapinduzi (CCM) and opposition parties have raised concerns that the free trade deal will open...

Customs experts from revenue administrations across Africa are meeting in Harare to discuss modalities of implementing the One Stop Border Post concept on the continent so as to enhance Customs clearances and trade facilitation. The meeting, which runs from 14 to 16 November, is a precursor to the 8th Ordinary Meeting of the African Union Sub-Committee of Directors General of Customs which will run from 17 to 18 November under the theme, “From Barriers to Bridges – Implementing One Stop Border Posts for Improved Trade Facilitation”. Almost all African countries are represented at this year’s event, which will see Zimbabwe assuming the Chairmanship of the African Union Sub-Committee of Directors General of Customs. Speaking while officially opening the event at a local hotel, the Zimbabwe Revenue Authority (ZIMRA) Acting Commissioner General, Mr Happias Kuzvinzwa, applauded the One Stop Border Post concept as a sure way to improve on trade facilitation within the African continent. “One of the many ways to achieve the cognitive level of cooperation to improve on trade facilitation is the implementation of the One Stop Border Posts, which has the potential to improve the smooth flow of traffic at crossing points, as well as cutting down on the costs associated with the moving of goods across the borders,” said Mr Kuzvinzwa. He applauded the critical role being played by the Customs Technical Working Groups saying, this will help address issues in the Trade Facilitation Cluster of the Action Plan on Boosting Intra-African Trade. The Action Plan on...

HELSINKI, Finland, November 14, 2016-Minister of Foreign Trade and Development Kai Mykkänen will visit Tanzania and Kenya on 14–19 November 2016. The two countries are Finland’s long-term partners in development cooperation but now they are hoping for more investments and trade with Finland. The Minister will be accompanied by a delegation of 24 Finnish companies and organisations. “Trade will not replace development aid but without a strong input from the private sector there is a risk that the UN global sustainable development goals will not be reached. Finland will devote particular attention to reinforcing the private sector in the partner countries because that will create new jobs, tax revenue and sustainable solutions to energy, water and other basic necessities,” Mykkänen says. The Finnish delegation will have the opportunity to showcase their solutions to ministers and state institutions in the two host countries. In Tanzania Mykkänen will also attend a forestry investment conference and inaugurate a central control room for electricity supply built in Finnish-Tanzanian cooperation. The Minister will also open a geospatial business event organised by the universities of Turku and Dar es Salaam. In Kenya Mykkänen will attend three events dealing with clean energy, water as well as construction and architecture. In both countries the Minister will also visit Finland’s development cooperation projects. “Tanzania and Kenya are among the biggest economies in East Africa with an annual growth rate of 4–7%. Kenya has succeeded in becoming a lower middle income economy, while Tanzania still has the lowest income level....

By Rhiannon Snide and James Karuhanga The Ministry of Trade, Industry and East African Community Affairs is looking to more youth involvement in regional integration agenda, a top official said yesterday, at the launch of the latest edition of EAC Week. François Kanimba, the Minister for Trade, Industry and East African Community Affairs, said this yesterday during a news conference to launch the seventh EAC Week. The campaign will run under the theme: "Regional Integration: A Necessity for Development." "There was a general agreement at EAC-level that the focus should be on how regional integration is a key driver for economic development. This is the key message wherever we are going to go, particularly when we talk to the youth," Kanimba told journalists in Kigali. "This message will be emphasised as a mobilisation tool for the youth to maximise their potential to contribute to the regional integration process. Youth can contribute in different ways." Held annually in all EAC Partner States during the month of November, the EAC Week aims to increase awareness among citizens on the EAC integration agenda. The three-fold objective of this EAC Awareness Week is: updating Rwandans on key achievements under EAC integration, promoting awareness on key ongoing projects and programmes, and addressing the public's concerns and questions on the bloc's integration agenda. The minister added: "When you look at the skill development programmes we are implementing, particularly in Rwanda, skills are a fundamental ingredient to realise benefits of regional integration process. Skilled people can move...

  BRUSSELS, BELGIUM - Liberat Mfumukeko, the East African Community (EAC) Secretary General Ambassador was in Brussels last week to attend a High Level Committee of the European Development Fund (EDF). Created in 1957 by the Treaty of Rome and launched in 1959, the European Development Fund (EDF) is the European Union’s main instrument for providing development aid to African, Caribbean and Pacific (ACP) countries and to overseas countries and territories. The EDF funds cooperation activities in the fields of economic development, social and human development as well as regional cooperation and integration. The EDF meeting in Brussels brought together the Secretary’s General of the Common Market for Eastern and Southern Africa (COMESA), Inter-Governmental Authority on Development (IGAD), EAC , Southern African Development Community (SADC) and the Indian Ocean Commission(IOC), and EU representatives from Brussels. Amb. Mfumukeko asked the EU to consider priorities such as enhancing food security, income generation for employment to improve livelihoods. The Secretary General was accompanied at the meeting by Jessica Eriyo , the EAC Deputy Secretary General in charge of Finance and Administration who also led the EAC delegation during Technical meetings. The purpose of the high level meeting was to discuss the implementation of the EDF 11 under which EAC was allocated 85 million Euros for a period of 5 years. The resources were distributed as follows: Peace and Security (15million Euros), regional integration (45 million Euros), natural resources management (20 million  Euros), and institutional strengthening (5 million Euros). The 11th EDF was created...

Freight forwarders at Dar es Salaam Port have voiced their anger at port operator, Tanzania International Container Terminal Services (TICTS), over ‘sluggish’ container handling. The Tanzania Freight Forwarders Association (TAFFA) has accused TICTS of causing unnecessary delays at Dar es Salaam, as well as the container deports at Kurasini and Unbungo, citing increasing storage charges due to the delays in physical verification of cargo and a lack of banking facilities at TICTS offices at the port. Speaking to AllAfrica, Tony Swai, Secretary General at TAFFA, said: "To have your cargo for verification alone can take at least three days while you only have seven days as grace period to clear your cargo, something, which leads us to incur storage charges, "If they are overwhelmed by the backlog due to limited space why don't they surrender some of the consignments to be stored within the port instead of embracing monopoly?" Meanwhile, Jared Zerbe, CEO of TICTS rejected the claims, saying congestion was caused by an threefold increase in bookings and the assurance that soon banking facilities at the port would be unnecessary as the process was soon to be completely automated. Two new ship-to-shore cranes which are due to be commissioned by the end of the year, could help to ease the delays currently being experienced. Source: Port Technnology

TANZANIA, will benefit from a 12bn/- support (5.3 million US dollars) from TradeMark Africa (TMA) to empower women entrepreneurs to access the East African Community and international markets. The commitment was made by the TradeMark Africa, Country Director, Mr John Ulanga during a Validation Workshop for a Baseline Survey that was conducted to ascertain status of Tanzania women traders export to EAC region at Dar es Salaam over the week end. Tanzania Women Chamber of Commerce (TWCCIA) will get 500m/-out of the funds to support them run their activities, he said. Mr Ulanga said, TMA Women and Trade (WaT) programme seeks to increase incomes and improve livelihoods for women traders and women-owned enterprises through capacity building, addressing trade barriers and advocacy for policies that will create an enabling environment for them to thrive. He said a recent survey has shown 70 per cent of crossborder business is done by women traders, but for a long time, they have been facing geographical, gender, financial, and legal obstacles. The government and Private Sector need to jointly show their recognition of women’s labour by providing a fair and conducive environment for them to trade, he said. “It is therefore important to continually advocate for balanced frameworks and policy change that will nurture the growth of women in cross border trading,” he said. He further said, TMA’s Women and Trade (WaT) programmes seek to use existing infrastructure to implement and roll out the various interventions focusing on women informal cross border traders. Women’s inclusion...

THE Minister for Agriculture, Livestock and Fisheries, Dr Charles Tizeba, has said all licensed ships fishing in the country's territorial water will be discharging their cargo at the Dar es Salaam Port effective next month. Apparently, the government has suspended temporarily licensing of fishing ships to allow expansion of a docking place at the port where all fish products will be discharged. According to the minister, the decision is in line with enabling the current licensed vessels offload their cargo and alternatively increase availability of the product in the local markets. Dr Tizeba said this during a visit at the port yesterday to observe preparations for allowing large fishing boats to discharge their cargo at the country's largest water entry port. "Preparations are ongoing well to allow ships to acquire a place to discharge fish. The government has been losing huge amounts of revenue and fish products owing to limited space," he said.He explained that the decision to suspend licence is to allow few ships to be able to dock and dis-charge fish products. "We issue licence to fisher-men; limiting them to only one species of fish. However, if they catch other types; they walk away with it since there is no place to bring them ... from now on we will make sure they bring the entire cargo," Dr Tizeba pointed out. The minister was concerned to note that the price of fish prod-ucts was extremely high in some markets in the country, denying the people of fish supplements...

By Bernard Lugongo FREIGHT forwarding companies using Dar es Salaam Port are up in arms over what they termed as 'sluggish' cargo handling by Tanzania International Container Terminal Services (TICTS), causing them unnecessary delays. TICTS has been contracted to manage the container handling activities at the port and the Inland Container Depots at Kurasini and Ubungo. Tanzania Freight Forwarders Association (TAFFA) told the 'Daily News' over the weekend that the ongoing efforts to revitalise the port could be derailed if things not improved. TAFFA's Secretary General Tony Swai explained that they have listed number of flaws that needed immediate solutions for making the services at the TICTS more efficient. Among others, Mr Swai said the company has failed to implement the agreement reached by all stakeholders that requires it to adopt 24/7 working arrangement in a move to avoid congestion at the port, but currently it works in less than 10 hours a day. The freight forwarding agents are also aggrieved by the delays when their cargos are supposed to go through the physical verification by the Tanzania Revenue Authority (TRA) before being released from the depot.  "To have your cargo for verification alone can take at least three days while you only have seven days as grace period to clear your cargo, something, which leads us to incur storage charges," he complained. He asked: "If they are overwhelmed by the backlog due to limited space why don't they surrender some of the consignments to be stored within the port...