Plans are underway along the East African coast to expand existing maritime terminals and to develop new terminals, in particular along the Kenyan and Tanzanian coasts. Infrastructure developments including dredging operations and rail links, could make a significant difference to the economic outcomes. While development of a new terminal located to the northeast of Mombasa at Lamu is underway, the recently elected new Tanzanian Government has opted to curtail expenditures involved in developing a new port to the northeast of Dar es Salaam and has chosen to increase the size of the existing port. Dredging is underway at the Port of Maputo in Mozambique from 11 meter (36 foot) keel depth to 14.2 meter (46.6 foot) keel depth. Port of Maputo The container terminal quay at Maputo is allocated a berth/quay of 300 meter (984 feet) in length and dredging would allow a vessel such as the 337 meter (1,106 foot), 9,200 TEU container ship MSC Pamela that sails with 12.8 meter (42 foot) draft and 46 meter (151 foot) beam to call at Port of Maputo. In the future, port authorities may need to explore allocating additional berth/quay length to the container terminal. Railway lines connect Maputo to Pretoria and Johannesburg in South Africa as well as Lusaka in Zambia and Harare in Zimbabwe. The Maputo – Johannesburg railway distance is almost identical to the Durban – Johannesburg railway distance. While Port of Durban is sub-Saharan Africa’s largest and busiest container port, the overland connections to the very populous...

East African nations have the most powerful passports in the continent outside South Africa, a 2016 Index by World Economic forum shows. The power of a passport is measured interms of the number of countries one can travel to visa free. Kenyans can travel to 65 countries in the world while Tanzanians can travel to 62 countries with Ugandans able to travel to 58 countries around the world without a visa. Nigerians can only travel to 44 countries in the world with Senegalese being able to travel to 56 countries, Ghana 61, and 51 for Sierra Leone. The nationals of Mauritania can travel to 54 countries. South Africans lead the continent with access to 91 destinations visa free. The strength of the passport depicts a country’s diplomatic strength and also its tourism potential. Somalis can travel to 31 countries. The 2016 ranking puts Germany and Sweden at the top of the passport league. Holders of German and Swedish passports can visit 158 countries without the need for a visa. “The least powerful passports are issued by poor countries, often mired in conflict. The people of Afghanistan can only visit 24 countries without applying for a visa,” WEF  said in the latest survey. Pakistan fares little better, with just 31 countries offering visa-free travel. The passport of the world’s newest nation, strife-torn South Sudan, only allows visa-free access to 36 countries. Source: The Exchange

By Louis Kolumbia Dar es Salaam — Tanzania will lose $865 million (Sh1.7 trillion) in revenue during the 25 years of implementing the Economic Partnership Agreement (EPA) should the East African Community sign the pact with the European Union (EU), according to opposition politician Zitto Kabwe. Referring to renowned economist Jacques Berthelot, Mr Kabwe said statistics from Eurostat and the International Trade Centre (ITC) showed that EAC would lose 3.6 billion euros in revenue as a bloc. "Losses will mainly be caused by contractual demands requiring Tanzania to scrap tax barriers by 90 per cent on non-agricultural products from the EU and by 10 per cent on agricultural products," the ACT-Wazalendo leader said in a statement. "This means that Tanzania will remain a supplier of raw material and a market to value added products from the EU." Mr Kabwe also said Tanzania would lose anticipated revenue following removal of value added tax (VAT) payable as import duty to products from the EU. Relaxing import duty barriers would lead to trade diversion whereby products from the EU will tend to remove products from foreign countries, thus denying the country revenue, he added. The Kigoma Urban MP cited Section 99.1 of the contract, saying the partners recognised challenges that would lead to revenue losses, and suggested that a solution could be sought through introduction of a compensation system. Section 100 of the contract says following revenue losses, the EU will negotiate with partner countries on taxation policy changes, cooperate in changing revenue...

In this monthly column called “The Indicator”, we take a economic or financial statistic from East Africa and break it down into bite-sized nuggets of knowledge for investors. This month’s Indicator is a sad one, dedicated to the loss of a good friend of the authors, Mohamed Mtaturu Mkonongo, and is intended to be a note of caution. 43,164 is the number of traffic accident fatalities found for the latest year studied in the East African Community countries, except for Burundi due to lack of available data. What do you mean by road traffic fatalities? Car, truck, motorcycle, and other automobile crashes on roadways that ended the life of a person are counted as road traffic fatalities. How big of an issue is road traffic for public health? The World Health Organization reports that “road traffic injuries are the leading cause of death among young people, aged 15–29 years and 90% of the world’s fatalities on the roads occur in low and middle income countries, even though these countries have approximately half of the world’s vehicles.” Weighted by population, each year EAC countries have 2.9 people die from road traffic per every 10 thousand people in the country. Which EAC country has the most and least per capita road traffic fatalities? Tanzania has the highest per capita traffic accident fatalities in the EAC at 3.2 for every 10 thousand citizens. Rwanda is close behind with 3.0 traffic deaths per 10 thousand people. Uganda has the lowest per capita rate at...

NAIROBI (HAN) September 12.2016. Public Diplomacy & Regional Security News.By DICTA ASIIMWE. The East African Community is not spending a third of the money it receives, despite the Secretariat’s complaints about underfunding. The Community has consistently complained about inadequate financing and has been pushing the Council of Ministers to come up with sustainable funding mechanisms. One of the options that was discussed by the Council of Ministers sitting in Arusha on September 5, include a hybrid of a levy and equal contribution by partner states with a commitment to increase the Community’s budget. The levy is expected to increase the Community’s financing, while the option of equal contribution is meant to retain the principles of equity, solidarity and equality as included in the Treaty. But even as the Council of Ministers considers these options, an accountability report by the EAC Audit and Risk Committee found that institutions and projects of the Community, whose budget for the 2014/15 financial year was $125.6 million, only spent $81.4 million. The report, which was discussed by East African Legislative Assembly (EALA) on September 2, found that the money spent represents just 65 per cent of what had been budgeted. Having utilised just 27 per cent of the total budget allocated, the African Peace and Security Architecture was one of the worst performing projects, despite the Community being a region with a large number of peace and security challenges. These challenges include the conflict in Burundi and the effects of conflicts in the Democratic Republic of Congo...

Migration is a priority issue all the way from Oslo to Cape Town, so the EU and Africa need to work together more effectively in order for it to be better managed in the future. Aderanti Adepoju describes how this can be done. Professor Aderanti Adepoju is the founder and coordinator of the Network of Migration Research on Africa (NOMRA). At present, over 31 million Africans are migrants who live outside the country of their birth, the majority within the African continent itself. In 2015, about 14% of arrivals in Europe were African migrants. Several migrant related events in recent years, most notably perhaps the April 2015 shipwreck that claimed the lives of 800 Africans off the coast of Italy, have significantly raised the discourse on migration to centre stage in both public and political arenas, leading to the Valletta Euro-Africa Summit in November 2015. The challenges posed by African migration are many; stretching from risks of brain drain to a lack of orderly, legal and effective labour migration. The question is therefore what the EU can do to support Africa to properly manage migration? In the study ‘Migration within and from Africa’, published today (12 September) by the Swedish Migration Studies Delegation (Delmi), I argue, among other things, that the EU should focus more on regional governance in Africa. Africa now experiences all types of migratory configurations within and outside the continent. More than half of Africans that migrate internationally do so within Africa, and only 27% go to...

When you are in our business, you spend a lot of time talking to people who have some fascinating insights on public affairs to give you, and also those who are checking out the truth of rumours and conspiracy theories. Sometimes they pay for the coffee, sometimes you pay. Now, when President Uhuru Kenyatta commissioned a Sh30 billion container terminal at Mombasa Port a few days ago, he said; “Kenya itself discovered oil in Turkana and intends to export its first shipment in June 2017,” and that his government was in the process of improving oil-handling capacity at the port of Mombasa. President Kenyatta said the Kipevu oil terminal in Mombasa county would be moved to a more suitable location to allow expansion. Then the clincher. He said the new terminal and the “expansion of the pipeline capacity between Mombasa and Eldoret will enhance efficiency in the oil sector and reduce costs, both locally and in the region”, or words to that effect. On the face of it, the idea is to truck crude from the fields in Turkana and then by train from Eldoret to Mombasa, a distance of 1,089 kilometres. Critics have said it does not make economic sense. So recently I had coffee with people who know more about these things than the rest of us civilians. Remember early in the year, Kenya lost the bid for the Uganda pipeline to Tanzania, a development that left some people who look after the country’s long-term regional interests miffed....

East African heads of state met the capital of Tanzania, Dar es Salaam, on Thursday, September 8, to discuss the ratification of the European Partnership Agreement (EPA). Tanzanian president John Magufuli (pictured above), who is also chair of the bloc demanded more time to assess the impact of the agreements before the actual signing takes place. The day-long meeting concentrated on Tanzania's reluctance in signing the trade deal with the EU. The "Daily News" of Tanzania has quoted Magufuli as saying: "There are a number of questions to be looked upon, why are we signing the agreement while the EU has imposed sanctions on Burundi? Why are we signing while UK has pulled out of the EU?" According to Honnest Prosper Ngowi, an economics lecturer at Mzumbe University in Tanzania, the country needs investment in areas of roads, water and power for it to compete in European markets. "I think, what Tanzania has done means that it wants to assess the situation so that it does not lose out once it joins," he said. South Sudan is the newest member of the East African bloc Kenya would pay more taxes Out of the six EAC countries, Kenya stands to lose the most if the deal is not signed. Other member states, like Tanzania, Burundi, Uganda, would still be elligible for duty and quota-free access under EU's Everything But Arms initiative for teh world's "Least Developed Countries". Kenya does not fall under this category. "If the EPA is not signed and...

The signing of a trade pact with the European Union for free market access for East Africa’s horticultural crops about a decade ago significantly improved foreign earnings for the region. Under the Economic Partnership Agreement (EPA), East Africa was granted a duty-free quota market access by the EU in efforts aimed at balancing the skewed terms of trade. The agreement is coming to an end this month and a new one is due by October 1. In the trade agreement, EU treats East Africa as a single trade entity and offers it a common package. However, East Africa is now pulling in different directions. Kenya and Rwanda have signed and committed themselves to the extension of the pact, but the others have not. This is why Deputy President William Ruto yesterday reached out to the other EAC heads of state, during a meeting in Arusha, to sign the deal. In particular, Tanzania has been reluctant to sign, arguing that it was interrogating its impact on its industrial production. Perhaps there are other underlying concerns. Burundi is unhappy because of a trade embargo by the EU over its recent controversial elections. Clearly, the hesitation over signing the partnership exemplifies the challenges of regional economic blocs, where at times countries focus on individual, rather than the union’s greater interest. Yet there is much value in hunting as a pack in pursuit of common interests. Among other advantages, this enables a region to attract more investment and puts it in better stead to...

Financing entrepreneurial ventures is one of the key issues to feature prominently in the forthcoming maiden East African Business and Entrepreneurship Conference and Exhibition in Nairobi, Kenya. EABC Executive Director Ms Lilian Awinja said one year after the Global Entrepreneurship Summit, they realised the need for a critical follow up on the actual tangible impacts of initiatives like "Trade Africa" or "Power Africa", that have come along with large funds to promote entrepreneurship. "This is why we will have two sessions on the opportunities and experiences to access those funds and on the requirements for other ways of financing," she said. Slated for October 10 to 13 in Nairobi, the crucial conference is organised by the East African Business Council (EABC) in partnership with the East African Community (EAC) respective national investment agencies. On the session, financial Institutions such Kenya's KCB Bank will elaborate on the key issues relevant for the financing of entrepreneurial enterprises. EABC chief added: "This is not on big funds and programmes only but also a chance to learn about innovative sources like crowd funding, impact investment and other incubator initiatives". The conference will also focus on Manufacturing, infrastructure, leather and textiles and energy in parallel sessions, Ms Awinja said. The exhibition expects to pull some 300 participants from the infrastructure-, manufacturingand energy sector, from ICT - and leather and textile industries, as well as from financing institutions. "Important policy makers and top representatives of relevant international organisations have committed themselves to participate," she said. In...