Dar es salaam, Tanzania - For the year 2016/2017, Tanzania’s budget has zeroed in on “Industrial growth for Job Creation”.   An emphasis of the first budget of the Fifth Phase Government with the motto “Hapa Kazi Tu” is to implement its commitment under the CCM Election Manifesto (2015-2020); Five Years Development Plan (2016/2017 – 2020/2021) and the National Development Vision 2025. The main objectives are: Addressing challenges faced by Tanzanians and bringing new hope for a better life, especially to low income earners through major reforms in the Government’s undertaking through restoring discipline and accountability, strengthening integrity and management of public expenditure and national resources. Developing industries to transform the economy into real middle income economy through developing industries that will foster job creation for youths and enhance agricultural productivity. The industries would include textiles, livestock products, agro-processing including rubber products, cashew nuts, tobacco, sugarcane tea and paddy. The Government is determined to strengthen domestic revenue collections and therefore reduce donor dependency. To achieve the objectives, the following measures have been proposed: Effective use of electronic systems and devices in collecting revenues; Widening tax base including formalization of the informal sector; Strengthening monitoring of revenues collected by Government Institutions and agencies; Continue measures to control and reduce tax exemptions; and Conduct frequent inspections and strengthen management at ports, airports and border posts to ensure appropriate tax collection. Positives: Efficient collections on tax revenues with 99% of the targeted revenues being collected between July 2015 and April 2016. Under the...

AR: How would you describe the civil and infrastructure markets in Africa? There is a clear consensus that infrastructure development currently is a focus area across the entire African continent, including the markets that we serve in Kenya, Tanzania, Uganda, Ghana, Nigeria and Sierra Leone; this is emphasised by the number of currently ongoing road, rail and port projects in these markets. The medium term macro-economic challenges include pressure on government revenues, elections, currency volatility and slow decision making by foreign investors and donors. In the short-term we have identified excellent prospects in East Africa. In Kenya, the focus has shifted to road projects now that the Standard Gauge Railway project is well underway; the Tanzanian and Ugandan governments are settling down after their recent respective elections and have announced a number of mega projects that will attract great interest and investment. In West Africa we have actually seen a decline and this may continue through 2016. Nigeria, although it has recently announced its budget and intent to pay contractors, will depend upon the timing and ultimate solution surrounding foreign exchange restrictions, which have negatively impacted the economy. Ghana will also be negatively impacted due to continued low oil and commodity prices and output, as well as the upcoming election and adverse impacts of the “missing” Cocoa Board Funds (which fund much of the feeder road development). Panafrican remains bullish about the road infrastructure sector, which is why we sought out the addition of the world class Wirtgen range of...

NAIROBI (HAN) June 13.2016. Public Diplomacy & Regional Security News. East African governments are determined to succeed in their global races to create growth and deliver lasting prosperity. They recognise that to build a strong economy necessary for a fairer society, they require infrastructure that competes with the best in the world. One only needs to look at the steady and substantial infrastructure spends over the years. The Kenyan 2016/2017) budget did not disappoint. Allocations of over $3.5 billion, representing over 15 per cent of the budgetary allocations, were channelled towards infrastructure and apportioned as follows, undoubtedly in order of priority; standard gauge railway (SGR) $1.55 billion, roads  $1.48 billion, energy $0.40 billion, Lapsset $100 million and ports $55 million. As expected, the majority of the Kenyan budget has been allocated to projects aimed at enhancing transport and logistics, in order to ease the cost of doing business in the country and bolster its competitive edge compared to its peers. It is projected that total traffic on the Northern corridor will double in 2016 from the 2013 levels of 21.5 million tonnes. The Tanzanian 2016/17 infrastructure budget also has a strong focus on developing its Central corridor; which undoubtedly will create strong competition for the Kenyan Northern corridor. Tanzania allocated $143 million to accelerate developments to renovate the Central railway line that runs from Dar es Salaam to Kigoma on Lake Tanganyika; and $9 million to the construction of the Mbegani port in Bagamoyo. The Ugandan government is likely to benefit...

The European Union and six countries of the Southern African Development Community (SADC) finally signed an Economic Partnership Agreement (EPA) on Friday (10 June) after more than a decade of talks – in a move that gives Botswana, Lesotho, Mozambique, Namibia and Swaziland duty-free access to the EU. For South Africa, the sixth country in the SADC, its products will see improved preferential treatment over and above what is already covered by the existing bilateral EU-South Africa Trade and Development Cooperation Agreement into the EU market. In particular, the agreement increases the flexibility of Southern African producers to put together products from components from various countries, without the risk of losing their free access to the EU market. The EPA is a development-oriented free trade agreement that takes into account the different levels of development of each partner nation. It is the  the first of its kind between the EU and an African region pursuing economic integration. The agreement was signed by EU trade commissioner Cecilia Malmström, who said: "We want to base our trade relations with our partners in the Southern African region on commonly agreed, stable rules. Trade has helped lift millions of people from poverty throughout the years. Thanks to agreements like this one, we are preparing the ground for that process to continue." By signing the EPA, all participants commit themselves to act towards sustainable development and to uphold social and environmental standards. The agreement also establishes a consultation procedure for environmental or labour issues and defines a comprehensive list of areas...

The World Bank Board has approved a mega project meant to strengthen selected higher institutions of learning in Eastern and Southern Africa to deliver quality postgraduate education and build collaborative research capacity in priority areas. The Eastern and Southern Africa Higher Education Centres of Excellence Project (ACE II), expected to close in 2021, will see each of the 24 Africa Centres of Excellence (ACE) funded to a tune of $6 million over five years. The project is good news for the regional higher learning institutions which are grappling with poor quality education due to limited research funding. Since the project will focus on supporting collaborative research, it is a step forward in fixing quality challenges in higher institutions of learning. If well implemented, the project will significantly enhance the quality of education in the region and this will reduce on the number of people who travel out of the region in search for better education. The Uganda-based IUCEA, an East African Community (EAC) institution responsible for coordinating the development of higher education and research, is the regional facilitation unit for the ACE II project. The EAC member countries should collaborate to ensure that IUCEA benefits all the member countries within the framework of fast tracking the integration process. Education is a key component in the integration process and having quality education in all member countries will go along away in fulfilling the goals of the integration. By the time the project concludes in 2021, the centre should have developed sufficient...

WHEN the first East African Community (EAC) collapsed in 1977, some in the Kenyan government celebrated with champagne. Since its resurrection in 2000, officials are more often found toasting its success. A regional club of six countries, the EAC is now the most integrated trading bloc on the continent. Its members agreed on a customs union in 2005, and a common market in 2010. The region is richer and more peaceful as a result, argues a new paper* from the International Growth Centre, a research organisation. Many things boost trade, from growth to international deals. The researchers use some fancy modelling to pick out the effect of the EAC. They find that bilateral trade between member countries was a whopping 213% higher in 2011 than it would otherwise have been. Trade gains from other regional blocs in the continent are smaller: around 110% in the Southern African Development Community (SADC), and 80% in the Common Market for Eastern and Southern Africa (COMESA). Those numbers for the EAC are all the more impressive because the available data stop before the EAC’s common market had properly come into effect. Progress on that front has sometimes stuttered. A 2014 “scorecard” identified 51 non-tariff barriers. Full implementation could double the income gains seen so far, say the researchers. Not surprisingly, it is landlocked Rwanda which would see the biggest benefits. Tanzania, which has dragged its feet on integration, would profit the least. The researchers are warier of the EAC’s other grand project: creating a...

The East African Business Council has elected Mr Econie Nijimbere from Burundi as its new Chairman for the period of 2016-2017. The Burundian is taking over from Mr Dennis Karera, who served at that capacity from the year 2015. Mr Nijimbere was serving as a Vice Chair. According to the statement issued yesterday, the new EABC chief is currently the President of Burundi Federal Chamber of Commerce and Industry (CFCIB). He has over 16 years of experience in the private sector, from 2010 to the present. He has also served as President of the Burundi Manufacturers Association as well as Board Member of the Burundi Revenue Authority (OBR).  In his acceptance speech, during the council annual general meeting held in Nairobi, Kenya, Mr Nijimbera thanked the outgoing Chairman Mr Karera and the Executive Committee for a job well done and the progress made so far. He outlined key areas that his tenure will focus on implementation of the EABC Strategic Plan 2015/18, extensive advocacy on issues outlined in our EABC Policy Advocacy Agenda document that aims at addressing key sectoral and cross cutting trading policy challenges as well as highlighting gaps and discrepancies in the implementation of the East African Community Customs Union and Common Market Protocols which are hindering East Africans from enjoying advantages presented by East African Community Integration and the wider EAC Common Market. Source: All Africa

East African Community regional integration has not evolved as envisaged. However, it is still achievable, given that the EAC partner states have harmonised most of their policies and internal and external tariffs. As EAC governments unveil their annual budgets, it is essential for the respective proposals to boost cross-border trading, movement of goods and manpower, and address the fundamental issue of non-tariff barriers across the region. Non-tariff barriers are restrictions and limitations that are obstacles to trade. They are not tariffs but rather take different forms of government participation. These include restrictive trade practices, administrative and custom entry procedures, charges on imports, technical barriers, sanitary and phytosanitary measures, institutional corruption, tedious licensing procedures, and transport, clearing and forwarding procedures. Non-tariff barriers have positive and negative effects and present a major stumbling block to full EAC integration. They trim the magnitude of imports in a country by promoting and cushioning local manufacturers and producers against dumping of sub-standard goods in the local markets. However, they also limit the movement of goods across the region and lead to increased cost of doing business, unnecessary delays at border points, and restricted opportunities for business expansion. The EAC committee on the elimination of non-tariff barriers reported that there were 40 unresolved barriers and three new ones in 2012. In 2014, the number of unresolved barriers had increased to 56 and the new ones to five. Insufficient infrastructural services have been identified as a major barrier that increases the cost of doing business and commodity...

Zanzibar — Despite widespread complaints, substandard, counterfeits, and expired products are still entering the Islands at an alarming rate. Many consumers remain uncertain about the goods they use including the essential products like foods and medicines. It is thought that importation and sale of substandard, counterfeit, and expired products have doubled in recent years. Health officers have frequently warned that substandard, counterfeit and expired products can endanger our health and safety, as well as adversely affect businesses by threatening innovation and local production. The authorities here have been using its Zanzibar Food, Drugs & Cosmetics Board (ZFDB) to stop distribution and supply of substandard, counterfeit and expired products smuggled into the market. Since its establishment in 2007, ZFDB officers have been working hard to ensure that only genuine goods are sold to the consumers. Thousands of tonnes of goods have been confiscated and destroyed as one of the Boards' objectives for ensuring Safety and Quality of Food, Drugs, cosmetics, medical devices and related products for people. The establishment of the Zanzibar Bureau of Standards (ZBS) will spur the ongoing efforts by the ZFDB to prevent Zanzibar from being a dumping ground for substandarFood, Drugs & Cosmetics Boardd, counterfeit and expired products. According to the environmental department, and Ports Corporation, an average of 23,000 containers of different lengths, with diverse items including second hand goods and new items such as clothes, foods, vehicles, and electronics are imported annually, with estimation that 20 percent of the items are fake or counterfeit which...

East African Community (EAC) member states have prioritised development expenditure as countries look to further strengthen the growth agenda of the regional economies. In the national budget estimates presented yesterday, the regional bloc’s biggest economy Kenya will be spending $22.8 billion, Tanzania $13.5 billion, and Uganda $12 billion during the next financial year that starts on July 1. Rwanda plans to spend some $2.49 billion in the fiscal year 2016/17. Burundi budget reading is not aligned with that of the EAC bloc. Kenya While presenting the budget speech, Kenya’s Finance Cabinet Secretary Henry Rotich, said the 2016/17 budget will focus on infrastructure development, agriculture, including agro-processing to spur the country’s growth, among others. The minister also abolished tea and sugar development levy. The energy sector got Ksh39.9 billion, standard gauge railway (Ksh228.5 billion) and roads got Ksh147.6 billion. Tanzania In Tanzania, Minister for Finance Phillip Mpango indicated that the new budget is focusing on alleviating challenges of people in low-income groups, and setting the foundation for middle-income country. In a country, where the national debt reportedly stands at $20.94 billion as of March, programmes geared at supporting development were allocated 40 per cent of the total budget, an increase from 25 per cent this fiscal year. Among others, the Tanzanian government intends to borrow Tsh7.4 trillion from domestic revenue to fill the gaps of the fiscal year 2016/17. The government will also spend Sh17.7 trillion on operational costs and Sh11.8 trillion for development. Over Tsh4.77 trillion or 22.1 per cent...