News Tag: Tanzania

EAC and EU Finalise Trade Negotiations

Ugandan goods just got a whole new playground on the European market after the East African Community and the European Union ended negotiations on the Economic Partnership Agreement (EPA) after more than a decade of talks. Kristian Schmidt, the head of delegation of the Europe Union in Uganda, says EPA is about to enter into force and that, when it does, the conditions to trade and invest will be easier for the countries in the EAC region and those in the EU. “The trade negotiators have done their duty. The European markets are open to East Africa business community,” he said recently. “Exports originating from Uganda and the entire EAC will enter the market of all EU member states without paying customs duties and without limitation in quantities, for an indefinite time.” Schmidt was addressing a press conference organized by the European Business Forum (EBF), which was intended to announce the forthcoming European Business Expo and Food festival to be held in Kampala starting today, May 6. Schmidt added: “So, this leaves the door open for any company operating in Uganda to export freely; no customs duty to an integrated, single market of 28 European countries, with 508 million consumers with considerable purchasing power.” According to Schmidt, Uganda and EAC partner states have committed to partially and gradually reduce, and eliminate, customs duties on selected imports originating from the EU. “That means EAC operators can import from Europe more strategically. They will be allowed to buy duty-free, thereby at a...

East Africa: Grand Plan Unveiled to Revitalise Dar Port

The government and key stakeholders of Dar es Salaam port have drawn up a plan to rescue the port in the wake of a steep decline in cargo traffic. Measures proposed include the scrapping of Value Added Tax (VAT) on transit goods. The plan is aimed at turning around the port’s fortunes and making it the most competitive in the region. Stakeholders met recently behind closed doors to prepare a blueprint in response to a looming crisis following the diverting of cargo from the Central Corridor. They agreed to take corrective measures that would help retain customers, bring back those who had abandoned the port and attract new ones. Participants in the meeting held at the port manager’s office included representatives from the Inspector General of Police’s office, Tanzania Revenue Authority (TRA), Tanzania Zambia Railway Authority (Tazara) and Tanzania Railways Limited. Others were the Tanzania Freight Forwarders Association, Tanzania Shipping Agents Association, Central Corridor Transit Transport Facilitation Agency, Tanzania Truck Owners Association (Tatoa) and Transporters Association of Tanzania (TAT). Also in attendance were officials of the Surface and Marine Transport Regulatory Authority. Participants were briefed on worrying statistics showing a significant fall in cargo traffic, which, according to the Tanzania Ports Authority (TPA), could degenerate into a serious national crisis if urgent measures are not taken. Cargo traffic through the port dropped by 13.3 per cent in March, this year, compared to the same period last year. Cargo to and from the Democratic Republic of Congo (DRC) and Zambia dropped...

East Africa: Envoy Launches EAC Integration Run

Kampala — Tanzanian High Commissioner Ladislaus Komba has launched the registration of participants in the Afrika Mashariki Fest (AMF) half marathon, which will take place on May 29. The run will start and end at Kololo Independence Grounds. While addressing the press after the launch on Sunday at Nakumatt Acacia Mall in Kololo, Kampala, Dr Komba, who signed up for the 10km run, said the launch was meant to inaugurate the half marathon for the Afrika Masariki Fest initiated by the youth to promote the East African Community (EAC) integration. "The aim is to promote awareness, understanding and support our leaders in the integration process and to me, any process that is aimed towards the integration of our countries is welcome and I am proud to be part of it," he said. Dr Komba further said the Afrika Mashariki Fest (AMF) initiative is also intended to promote youth development and job opportunities and will also focus on protection and conservation of Lake Victoria, the region's largest water body. The AMF chief executive, Mr Kisembo Ronex Tendo, while addressing the press at the launch, said the event is a non-partisan voluntary youth platform that seeks to promote the regional integration of the six EAC member states. "We, therefore, seek to engage them across the region to embrace the EAC integration process through art, sports and civil society advocacy as our platforms," he said. Key athletes invited He said the run is expected to involve elite athletes with 10 from Addis Ababa,...

East Africa: Tanzania Pipeline Deal Reflects Uganda's Practical and Strategic Concerns

That Tanzania beat out Kenya to carry Uganda's oil to international markets owes much to economic and security concerns, but also to plans for regional integration. Plans for a 1,410-kilometre heated pipeline from Hoima in western Uganda to Tanzania's deep water port at Tanga have been chosen to carry Uganda's oil to international markets, over the initially favoured 'northern route' through Kenya. Heavy lobbying by international oil companies, changes in regional politics and Kenya's fragile security situation seem to be major reasons behind Kampala's change of heart. But by engaging a member long seen as a hindrance to integration efforts, a cross-border project with Tanzania could also help spur the development of the East African Community (EAC). How the Kenya deal fell through On 10 August 2015, the presidents of Uganda and Kenya publically agreed to jointly develop a pipeline, depending on Kenya meeting a number of conditions. The choice of the 'northern route' via Hoima-Lokichar-Lamu was portrayed as a contribution towards closer East African integration - a key political goal of Uganda's President Yoweri Museveni. The proposed pipeline was also politically important for Kenya's government, as it would have helped to justify the huge $25 billion cost of the Lamu Port-South Sudan-Ethiopia Transport Corridor (LAPSSET) development - a flagship project for Kenya's President Uhuru Kenyatta, holding increased significance in a pre-election year. But progress on the Hoima-Lokichar-Lamu pipeline was contingent on Kenyan guarantees, on the security of the pipeline within Kenya, project financing, swift implementation and low tariffs. Perhaps...

East Africa: Rwanda, Tanzania Seek Stronger Bilateral Ties

Tanzania and Rwanda have agreed to form a joint implementation committee (JIC) to closely monitor important areas of bilateral relations between the two countries that were agreed in the just concluded 14th session of the Joint Permanent Commission (JPC). The JIC will be led by permanent secretaries in the foreign ministries from both countries and will be meeting in every quarter of each year, according to Head of Communications in the Ministry of Foreign Affairs, East African, Regional and International Cooperation, Ms Mindi Kasiga. The two-day session of the JPC meeting, which ended on Sunday, was held in the resort town of Rubavu in the Western Province of Rwanda. Among other issues, the JPC agreed to bolster bilateral ties in various key sectors, including strengthening relationship in the aviation sector, especially between the two countries' national airlines--Rwandair and Air Tanzania Company Limited (ATCL). The meeting also agreed to fast-track infrastructure development on the central corridor, which combines road and railway network, as an essential trade and transport route, linking the two countries with neighbouring Burundi, Uganda and the eastern part of Democratic Republic of Congo (DRC). Ms Kasiga, who was addressing a news conference in Dar es Salaam, said the meeting also agreed to increase the pace on the construction of the envisaged multi-trillion shilling standard gauge central railway line project. The 14th JPC meeting came following the directives issued by President John Magufuli and his Rwandan counterpart Paul Kagame in Kigali last month during Dr Magufuli's maiden trip outside the...

East Africa: Prepare for Changes, EAC Boss Tells Staff

Arusha — East African Community (EAC) is facing a precarious financial situation and the new secretary general, Mr Liberat Mfumukeko, has put workers at the headquarters on notice, telling them to get ready for drastic changes. Speaking at a welcoming party organised at an Arusha hotel last week, Mr Mfumukeko said owing to the alarming financial state the regional body was going through, he was forced to take radical changes for the organ to survive. He made it clear that the EAC secretariat was operating on a shoestring budget because its donors, who accounted for about 70 per cent of its budget, had lagged behind in fulfilling their promises by at least 30 per cent. Though he is generally regarded as a less talkative person, the maiden speech the newly appointed East African Community (EAC) Secretary General gave painted him as a no nonsense person geared towards bringing much-needed changes on the way the EAC Secretariat and the community in general operates. Among major priorities, Mr Mfumukeko said he would concentrate on and push for full implementation of protocols and agreements signed or ratified by the EAC partner states, specifically the Customs Union, the Common Market and the East African Monetary Union protocols. He also made it clear that he favoured fast-tracking the integration of South Sudan, a new member of the bloc, into activities, programmes and projects of the EAC. At the same time, he said during his welcoming party by the staff of the community that he would...

Tanzania: TCCIA, Zanzibar Commerce Chamber Seal Partnership Pact

Zanzibar — Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and its isles counterpart, Zanzibar National Chamber of Commerce Industry and Agriculture (ZNCCIA) sealed an agreement to partner in promoting trade. The partner institutions signed the Memorandum of Understanding (MoU) at ZNCCIA offices here to cement their relation, at a ceremony graced by Zanzibar Minister of Trade, Industries and Marketing Amina Salum Ali. "We need to strengthen collaboration and have one voice in demanding changes in promotion of trade in the country, targeting bigger EAC, SADC and international markets," said Ambassador Ali. She described the partnership of the two institutions as an indication of increased trade awareness, with focus on quality and standard goods in the market. The minister asked the chambers' members to support government plans to promote businesses in the country through strengthened Public Private Partnership (PPP), thanking Trademark East Africa (TMA) for initiating and supporting the MoU. ZNCCIA Executive Director Munira Said and her TCCIA counterpart Magdalena Mkocha signed and exchanged documents, promising to share experiences in the interest of members and trade sector. Country Director-TMA, Dr Joshepat Kweka, said that he was happy to witness the development, "Which is just the start of our long journey of support to the chambers. It is good for the chambers to increase business as we look forward to support advocacy, logistics and export orientated businesses." He asked the chambers to set common goals of increasing trade within Tanzania and East Africa, and promoting exports to current and new markets....

Tanzania plans gas pipeline to Uganda

DAR ES SALAAM May 4 (Reuters) - Tanzania said on Wednesday it was planning to build a pipeline to supply natural gas to neighbouring Uganda as it looks to export some of the huge offshore gas reserves discovered in recent years. East Africa is a new hotspot for hydrocarbons exploration after substantial oil deposits were found in Uganda and major gas reserves discovered in Tanzania and Mozambique. The gas pipeline is the latest move to deepen commercial ties between Tanzania and Uganda which said last month that it would ship its crude oil via a pipeline through Tanzania to Tanga port. "Several east African countries have asked to buy gas from Tanzania... to start with, the (Tanzanian) government plans to build a gas pipeline to Uganda," Tanzania's energy and minerals ministry said in a statement. Tanzania announced in February it has discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits in an onshore field, raising its total estimated recoverable natural gas reserves to more than 57 tcf. Officials said the government was already seeking funding for the project, but did not reveal how much it would cost. The time frame for the project would depend on the availability of funds but work would start immediately after funding was secured, according to the statement. Tanzania last year commissioned a 532 km (330 mile) pipeline and gas processing plants from gas fields south of the country to its commercial capital Dar es Salaam, financed by a $1.2 billion...

Trade takes centre stage at ACP Council of ministers

Trade issues took centre stage during the 103rd session of the Council of Ministers of the African, Caribbean and Pacific (ACP) Group of States, which was held on 25-29 April in Dakar, Senegal. Ministers discussed prospects regarding the Economic partnership agreements (EPAs) still under negotiation with the European Union, as well as issues related to trade in various commodities, such as fishing products and sugar, among others. Ministers also expressed their determination and enthusiasm in advance of the upcoming Summit of Heads of State and Government of ACP countries, which will take place in Papua New Guinea from May 10 to June 1. Hopes are high that the meeting will provide the needed political mandate to rejuvenate the organisation, as well as a foundation on which to build productive engagement regarding the future of the relations between the EU and the ACP Group. The meeting of ACP ministers was followed by a session of the ACP-EU Joint Council of Ministers, which gathered ministers from ACP countries and their counterparts from the European Union. A call for flexibility on the Economic partnerships agreements During the meeting of the council, ministers of the ACP Group agreed on a resolution regarding the Economic partnership agreements between the different ACP regions and the EU. The EPAs are reciprocal – although asymmetrical – trade agreements between the EU and seven ACP regions, namely Central Africa, Eastern and Southern Africa, the East African Community, the Southern African Development Community, West Africa, the Caribbean and the Pacific....

East Africa: It's Time EAC Made Sure It Stands On Its Own Feet

The new East African Community secretary general, Mr Liberat Mfumukeko, has assumed his duties with a promise to turn around the cash strapped regional body. It is not a secret that the new executive comes at a time when the EAC secretariat is operating with a shoestring budget, 70 per cent of which is donor funded. It means that, what the member countries raise a mere 30 per cent of a budget, and that isn't good enough to keep the integration dream alive. It therefore goes without saying that if EAC continues to operate this way, there is no way the six countries will attain the intended unity any time soon. Mr Mfumukeko, who had been an employee of the secretariat for before his elevation to the helm, has vowed he will work on this sorry state. We hope the EAC states will take this as a wake-up call and find ways of raising funds with which to benefit their people. The statement by the new boss in Arusha means EAC members should aim to make sure donor dependence in running their regional affairs is reduced to a minimum or scrapped altogether. We believe this is possible. If individual countries device and implement strategies to reduce with donor dependence, why shouldn't they do the same at the regional level? What is needed is for the partners to the community to support the new boss who has shown he is determined to make EAC independent. If we want to make the...