Kenyan President Uhuru Kenyatta, left, and Tanzanian counterpart John Magufuli clasp hands during Magufuli's state visit to Nairobi, Oct. 31, 2016. The two hope to strengthen their countries' economic ties. NAIROBI, KENYA —  Tanzania’s president is making his first state visit to Kenya since taking office last October, in a bid to improve relations strained by economic competition. Kenya is "quite important to Tanzania," President John Magufuli told reporters upon arriving Monday in the northern neighbor’s capital city, Nairobi, for a two-day visit. Magufuli cited data from the Tanzania Investment Center, which reports that 529 Kenyan companies have invested roughly $1.7 billion in Tanzania, creating employment for about 56,000 Tanzanians. Tanzania is the fastest-growing economy in East Africa, according to the International Monetary Fund. Kenyan President Uhuru Kenyatta said the countries would revive the Kenya Tanzania Joint Commission for Cooperation (JCC) before year’s end to enhance investment and trade. The state visit “is meant to strengthen the relations between both countries,” Kenyatta said, adding that if Kenya and Tanzania are to expand their economies and create jobs for youth, then the countries should “walk together." Tension over Uganda pipeline Economic relations between the two nations have been somewhat strained by competition. In March, Uganda opted to run a large oil pipeline through Tanzania instead of Kenya. Uganda cited security concerns and a price tag that was $1 billion cheaper than the one proposed by Kenya. Tanzania also won a deal to host a new railway that will connect the...

A new report by the EAC secretariat shows that the East African partner states are still lagging behind in the process of implementing the Common Market Protocol. TEA GRAPHIC |   NATIONA MEDIA GROUP IN SUMMARY This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. Efforts to freely offer cross-border services were slowed down by at least 63 non-conforming measures. The second scorecard was developed in 18 months by the EAC secretariat with the support of the World Bank Group and Trade Mark East Africa. The East African Community (EAC) is yet to fully implement the common market protocols which were meant to boost the region’s trade, a new report has shown. The second East African Community Common Market Scorecard 2016 launched in Kampala, Uganda on Thursday shows that Kenya, Uganda, Tanzania, Rwanda and Burundi still run their trades as separate and distinct markets, keeping their economies small and disconnected due to several bottlenecks in the regulations. This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. This is despite EAC presidents having signed the treaty to give the countries freedom of movement of goods, labour, services, and capital, which would significantly boost trade and investment and make the region more productive. The protocol was signed on...

IN SUMMARY This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. Efforts to freely offer cross-border services were slowed down by at least 63 non-conforming measures. The second scorecard was developed in 18 months by the EAC secretariat with the support of the World Bank Group and Trade Mark East Africa. The East African Community (EAC) is yet to fully implement the common market protocols which were meant to boost the region’s trade, a new report has shown. The second East African Community Common Market Scorecard 2016 launched in Kampala, Uganda on Thursday shows that Kenya, Uganda, Tanzania, Rwanda and Burundi still run their trades as separate and distinct markets, keeping their economies small and disconnected due to several bottlenecks in the regulations. This was blamed on failure by individual states to lift legal barriers like recognition of business certificates from each other and double taxation. This is despite EAC presidents having signed the treaty to give the countries freedom of movement of goods, labour, services, and capital, which would significantly boost trade and investment and make the region more productive. The protocol was signed on November 20, 2009 and came into force on July 1, 2010. “While there is positive progress, states have remained largely non-compliant in their services and trade liberalisation commitments,” said Ms Jesca Eriyo, the EAC...

Apart from the bogus “birther” claim that U.S. President Barack Obama was born in Kenya, Africa has barely been mentioned by either presidential candidate Hillary Clinton or Donald Trump during the campaign. That silence extends to the African Growth and Opportunity Act, which allows most products from 38 eligible sub-Sahara countries to export goods to the U.S. duty-free. Sixteen years since its launch, AGOA has not driven industrial development in Africa as had been anticipated. But the program has served as a catalyst for increased textile production and associated job growth in Kenya and other countries. AGOA is viewed positively even in countries where its benefits have not been felt. In the years following its enactment during the Bill Clinton presidency, AGOA has stirred little opposition from Democrats or Republicans, largely because it has not amounted to much of a threat to U.S. workers. The Congress recently approved a 10-year extension of presidency of with strong support from members of the major parties. Trade deals criticized as harmful to U.S. economic interests have, however, emerged as a key issue in the race for the White House. Trump has been forceful in condemning such agreements, and the resonance of his arguments has led his Democratic rival to take a similar stance. The candidates’ expressed opposition to trade schemes favorable to exporters in the developing world raises the question of whether the next White House occupant might want to undo or weaken AGOA. Should Trump overcome odds against winning the Nov. 8...

East Africa is a region of complexity and opportunity, as Felicity Landon finds out It’s not easy to achieve a snapshot of what’s happening in East Africa – mainly because politics, economics, corruption, borders and the lasting impact of conflict combine to keep the goalposts moving and investment plans uncertain. However, the region is attracting investment – earlier this year, for example, DP World signed an agreement to develop the multipurpose Port of Berbera in Somaliland, with the aim that the port should "achieve its potential for becoming a regional trade and logistics hub", according to the operato. The group already has operations in Djibouti, where it operates the Doraleh terminal, as well as in Mozambique. The phased $442m project at Berbera will include setting up a free zone to support the development of the port’s trade corridors. “Investment in this natural deepwater port will attract more shipping lines to East Africa and its modernisation will act as a catalyst for the growth of the country and the region’s economy,” said DP World chief executive Sultan Ahmed Bin Sulayem. A modernised port will provide an additional gateway for the Horn of Africa that is needed for its development, while serving other landlocked countries along the east coast, DPW added. In competition Along the coast of East Africa, ports are jostling for position when it comes to serving their landlocked neighbours. Mauritius, meanwhile, has started to position itself as a transhipment hub – in the words of one expert, seeking to...

By Brian Ngugi Tanzania's President John Magufuli's state visit to Kenya on Monday is a high stakes affair for both countries with Nairobi expected to roll out the red carpet as it seeks to reset relations with Dar es Salaam. Top on the agenda will be trade relations between the two neighbours. A series of high-profile incidents have strained ties between the countries since Dr Magufuli came to power last year. The most remarkable was his absence at the Tokyo International Conference on African Development held in Nairobi which attracted heads of state and government from across the continent. This left tongues wagging about the status of relations between the two East African giants. The Tanzanian leader has only travelled to Uganda and Rwanda since coming to power last October. Tanzania has previously been accused of putting non-trade barriers on Kenyans including delay of work permits and slow licensing. Kenyan companies operating in the country have also complained of being treated harshly. In July, Tanzania said it will not sign the Economic Partnership Agreement between the East African Community and the European Union, a landmark deal aimed at giving regional states, as a bloc, duty-free and quota-free market access into the EU. In 2015, the two countries were involved in a trade row following a ban on Kenyan tour vans from accessing Tanzanian parks. Kenya reciprocated by barring Dar buses from the Jomo Kenyatta International Airport. Much recently, Tanzania has given a regional initiative meant to facilitate access to all...

KIGALI (Xinhua) -- Tanzania’s ambassador to Rwanda Ali Idi Siwa said his country’s reluctance to sign the Economic Partnership Agreement (EPA) with the European Union is about economics and called for more time for consideration. He noted that Tanzania’s industrialization plan is to go beyond import substitution and to produce goods both for home consumption and export purposes. “We have a feeling that that the EPA may jeopardize this position. So, we gave ourselves time to have a closer look at this scenario so that we come up with a decision which is good for both Tanzania and the east African region,” said Siwa. “We have not signed and we did not say that we are not going to sign, but we are giving ourselves time,” he said. He was speaking at a one-day policy dialogue on regional integration organized by the Office for Eastern Africa of the UN Economic Commission for Africa (ECA), in collaboration with the University of Bremen in Germany, in Kigali. Last month, trade ministers from Rwanda and Kenya signed the EPA with the EU in Brussels. However, the East African Community (EAC), which includes Rwanda, Kenya, Tanzania, Uganda, Burundi and South Sudan, has requested a delay of the signing of the deal. The pact gives products from EAC member states duty- and quota-free access to the EU market as long as they meet health and safety standards, while EAC will gradually liberalize 80 percent of its market for EU imports. Some EAC members have voiced...

Tanga — Ambassadors from the European Union member states want to see East African ports improved in order to better handle international trade. The envoys from 11 EU countries visited Tanga Port yesterday and familiarised themselves with the various facilities including the site where a jetty would be built at Chongoleani. Head of the Delegation Amb Roland van de Gea expressed the Union's commitment to improve the port so that it will efficiently handle increased international traffic. He added: "More has to be done in the East and Central African countries to improve the business environment so as to increase trade opportunities. "It is not just about more making money," he said after a briefing from the Tanga Port Master Henry Arika. Expounding on developments at the port Mr Arika said a separate port at Mwambani south of Tanga is still on the cards and is deemed viable despite competition from the Mombasa and Dar es Salaam ports. "When we talk of Mwambani Port we also talking about the construction of a new railway line from Musoma to Arusha that will be connected to the Tanga-Arusha line that has to be revamped," said Mr Arika. Tanga Port was initially built to handle sisal exports from Tanganyika by Germans in 1893. Interest in the port has grown dramatically after the announcement of the construction of the 1,444 kilometre, crude oil pipeline from Hoima in Uganda to Tanga. The Democratic Republic of Congo has also announced plans to use the pipeline to...

By Florence Mugarula It is now all smiles for Tanzanian farmers after a fertiliser production company 'YARA Tanzania Limited' announced between 35 and 40 per cent reduction of fertiliser transportation cost following the launching of railway transport services on Tuesday. Speaking during the launching of fertiliser rail transportation from Dar es Salaam to upcountry, YARA Director General, Mr Alexandre Macedo said inland transport cost has been contributing to the increase of fertiliser prices in various regions. He said transporting fertiliser from factories in Europe to Dar es Salaam port cost only 40 US dollar per tonne, but it cost 100 US dollar to transport the same from Dar es Salaam to Tabora by using road transport. Mr Macedo said with rail transport, the total operation cost is cheaper. He said the company has responded to the government call to reduce fertiliser price and enable farmers across the country to engage in productive agriculture. "We are doing everything in our powers to respond to the government request to reduce fertiliser prices, it has been very expensive to transport fertiliser from Dar es Salaam to other regions by road," he said. He added that another challenging factor is the big number of intermediate, which include middlemen operations. He said the company is working closely with the government to solve the problem. "We are working with the government to see how we can address this problem together, we need to take fertiliser to farmers at affordable price," he said. According to Mr Macedo,...

Chief economist at central bank of Rwanda, Dr Thomas Kigabo stresses a point yesterday at KCC. / Faustin Niyigena Transformative regional integration could be achieved through collaboration between countries rather than through economic competition, economists and policymakers said yesterday. This was during a policy dialogue on regional integration organised by the Office for Eastern Africa of the UN Economic Commission for Africa (ECA), in collaboration with the University of Bremen in Germany, at the Kigali Convention Centre. Dr Thomas Kigabo, chief economist at the National Bank of Rwanda (BNR), noted that the Brexit is “a very interesting example and experience.” Throughout the initial session, examples were drawn from Britain’s exit from European Union (Brexit) and, like the other economists present, Kigabo could not pin down with certainty the likely implications but noted that these could be normal. Kigabo said: “I think that on a negative note, this [Brexit] may give some argument to some countries which want to exit regional integration. It’s really a very bad example because we have been considering the EU as a good model for integration. “Definitely, experience is showing us that it is not a good model. It has its own weakness and the reality is that UK has decided to go out. This may have negative impact on our own efforts to have our own economic bloc.” The lesson learnt from the faltering regional integration process in Europe, he said, is that when countries are negotiating a similar protocol or agreement, they need to...