The Acting Port Manager, Hebel Mhanga, told the Daily News in an interview yesterday that although it was yet to be enforced, the VAT on transit was scaring away importers as they fear it would increase port charges hence inflating their costs of doing business. “The problem of declining cargo volume is not due to red tape or the fear to make decision by the management. It is due to VAT on transit,” he said. A Kenyan newspaper reported over the weekend that Tanzania business community were ditching Dar es Salaam port for its rivals due to excessive bureaucracy and delays by the port management in making decisions for “fear of annoying the presidency.” The paper quoted the Principal Communication Officer of the Kenya Ports Authority (KPA), Hajj Masemo, as saying the Mombasa port management had noted increased transit volumes to Tanzania. Mr Mhanga, admitted there was a significant business volume decline at the Dar es Salaam port but that was due to VAT on transit. He said it was yet to be applied, the VAT was scaring away cargo importers. He said the situation was serious as the problem of copper exports and transit vehicle volume from Zambia may decline due to VAT threat. He said there were likelihood that copper cargo from Zambia may decline as most of agreements with importers were coming to an end in the near future. “The problem is most of the big importers may not renew their contracts because of the VAT threat....

Standard Bank is hosting the East Africa Trans-Regional Conference in Kenya, Nairobi from 11 to 14 April 2016 to facilitate business development between clients from the East Africa region and South Africa. Targeted at clients who have an interest in expanding their operations or partnering with businesses within the East Africa region, the conference will provide delegates with an overview of commerce and industry in East Africa, while presenting opportunities for access to the market and business development. Over three days, seventy of Standard Bank’s business banking clients from, Kenya, Tanzania, Uganda, Zambia, Malawi and South Africa will take advantage of networking opportunities in a guided and informative environment. Dr Manessah Alagbaoso, Head of Commercial Banking at Standard Bank Rest of Africa says this is the first of a series of inter-Africa trade conferences aimed at facilitating business development. “The event underlines our commitment as Standard Bank to create effective partnerships for our clients in the region and across the continent.” Dr Alagbaoso adds that it was critical for Standard Bank, in its commitment to intra-regional, to create additional value for business banking clients by assisting them to identify services they could access, match them with much needed expertise and provide financing solutions. Standard Bank, as Africa’s largest bank, has an established and on-the-ground presence in East Africa. “We are committed to the East Africa region as indicated by our established presence in Kenya, South Sudan, Tanzania, Uganda and recent expansion into Ethiopia. Our sector expertise and in-depth local knowledge...

The East African Community (EAC) is now successfully asserting itself as a regional trading bloc. Trade volume may have increased but dreams of monetary union are still far-fetched. Uganda's President Yoweri Kaguta Museveni (front L3), Rwanda's President Paul Kagame (R3), Kenya's President Uhuru Kenyatta (R2) and the host Tanzania's President John Magufuli (C) attend the 17th EAC Heads of State Summit in Tanzania's northern city of Arusha, March 2, 2016 Photo by: Xinhua "Between 2005 and 2014, trade within the East African Community (EAC) increased by 300 percent," Dirk Smelty, business consultant with the Tanzanian Chamber of Commerce, Industry and Agriculture told DW. Kenya, Tanzania and Uganda formed the EAC in 2000 and introduced a customs union five years later. Burundi and Rwanda joined the union in 2007. The customs union is promoting trade and is going from strength to strength. The EAC reported that in 2005 Kenya recorded imports worth $3.5 million (3.8 million euros)and exports valued at 5.8 million dollar. By 2014 imports had doubled to $6 million and exports tripled to $18.3 million. Uganda also doubled its exports in the same period and its imports nearly tripled. Tanzania however made the biggest leap by quadrupling its exports. Trade in Rwanda and Burundi however remained low. Chinesen bauen Straßen in Kenia Several EAC projects still remain unfinished due to logistical challenges The three driving forces: Kenya, Uganda, Rwanda According to Smelty, trade within the EAC is mainly benefiting countries with stronger economies including Kenya, Uganda, and Rwanda. "Kenya...

AFRICA is the next frontier for Singapore business to conquer, and the Singapore government is playing a big part in facilitating access to the countries there. One of its initiatives is the recent appointment of businessman Tan Puay Hiang as the non-resident ambassador to the East African state of Tanzania. Tanzania, with its population of 52 million, can be the gateway for East Africa, says Mr Tan. He notes there is growing business interest from Singapore there. "Tanzania is one of the safest countries in Africa with a very stable government and a friendly, efficient civil service. So there are plenty of opportunities for Singapore businessmen there," Mr Tan assures. In April, Minister of State for National Development and Trade & Industry Koh Poh Koon will head a delegation comprising businessmen and officials from the Ministry of Foreign Affairs, Ministry of Trade and Industry and International Enterprise (IE) Singapore to Tanzania to acquaint themselves with the new president and Cabinet and to strengthen trade and investment ties between the two countries. The group will also visit neighbouring Uganda. Singapore's main investors in Tanzania are Temasek Holdings subsidiaries Pavilion Energy and Olam International. Others include energy player Intrasia and listed hospitality companies Bonvest Holdings and Hotel Properties. Pavilion, in its quest to be a leading LNG (liquid natural gas) player and to bolster Singapore's position as an LNG hub, made Singapore's single biggest investment in Africa by plonking a whopping S$1.8 billion for a 20 per cent stake in three gas...

Tanzania’s President John Pombe Magufuli came visiting last week and spent two days here. You would hardly know he was in town. He spent a good part of the time with his host, President Paul Kagame, probably comparing notes and learning from each other about how to improve the lot of us they have vowed to serve. Then he joined Rwandans in commemoration of the Genocide against the Tutsi. So work kept him out of the public view. His coming at the start of remembrance week, which is also a time for individual and national grieving, meant his visit was rather low key. But it is also his style – short on pomp and ceremony, but richer in content and purpose – which he shares with our own president. He is now back in Dar es Salaam doing what he has done the past five months – waging war on graft, cutting waste in government, and exorcising ghosts in the public service. It is no easy task. He will probably get little thanks for his efforts. Of course, ordinary Tanzanians are thrilled that he is wrestling with these monsters and must be praying that he slays them so that they can get what is their due. And for that they must give him their full support. But almost as certain, he will earn a lot of enemies and they are many and varied. The fat cats in Tanzania who have prospered in the last ten years must be gnashing their...

Convenience at minimum cost is a leading consideration for investors looking for new locations to set up enterprises. Around the world, industrial parks have become the popular vehicle for countries to provide a competitive environment for industries to take off. Technically, an industrial park is a geographically delimited area, intended for the settlement of industrial plants with proper location, infrastructure, equipment and services conditions, and with a permanent administration for its operation. Recently, Uganda announced that it is setting up 22 new industrial parks around the country. This is commendable if the government does not go back on its word by failing to put in place the basics needed to attract both local and foreign investors. It is going to be expensive, but will pay off in the long run if it is done right. All the Tiger Nations of East Asia developed industrial parks during the 1980s and early 1990s which helped attract investment especially from Japan. South Korea started in the 1960s. The government at the time adopted a strategy of concentrating industries in regions with high growth potential, rather than dispersing investments nationwide, in consideration of the country’s limited financial resources. The policy has worked out well as reflected in South Korea’s spectacular growth. Note, this is the country with the highest internet penetration in the world. Today, industrial parks are the industrial/manufacturing hubs that drive the economies of Thailand, Indonesia, Malaysia and the Philippines. For the East African Community (EAC) to take advantage of a similar...

Khartoum’s letter to Arusha seeking a place in the EAC returned with negative response with the country being politely told that, in order for Northern Sudan or any other African state to be allowed in the regional bloc, it must share a common border with any of the existing member states, that is Kenya, Rwanda, Uganda, Tanzania or Burundi. Last month’s admission of South-Sudan to the Arusha Pivoted East African Community now paves way its neighbour, further north at Khartoum to also be considered to become the seventh member of the community which was revived back in 1999, but as of now it is all silent at the community secretariat here. It was actually North Sudan, headquartered at Khartoum which was first to apply to be allowed to join the East African Community (EAC) five year ago. However, its request was placed on hold because in order for a country to be a member of the EAC, it must share a common border with any of the initial five partner states. Efforts to find the EAC Head of Corporate Communications, Mr Richard Owora Othieno, to comment on the issue last weekend, proved futile as he wasn’t around and his phone was unreachable. South Sudan, which borders the two EAC member states - Kenya and Uganda in the South - apparently stood in-between Khartoum, but since it has now become a member, it is possible for North Sudan to re-apply and be considered to join EAC. South Sudan brought into the...

Rwanda and Tanzania appear headed for closer ties following President John Pombe Magufuli's visit to Kigali, during which he held largely private talks with President Paul Kagame. On the surface President Magufuli's visit to Rwanda was motivated by trade - opening a common border post. That Rwanda was his first official stop outside Tanzania pointed to an urgency to mend the frosty relations between the two countries that appeared to worsen during his predecessor Jakaya Kikwete's reign. Before and during President Kikwete's reign, a calculated approach to integration under the East Africa Community seemed to sap the patience out of Kenya, Rwanda and Uganda, leading to the formation of what was dubbed the coalition of the willing. The three countries, united by the need to expedite trade along the northern corridor, earmarked the standard gauge railway and port reforms. On the human side the coalition's initiatives were anchored by measures to allow freer movement of labour and travel through single tourist visas and use of national identification cards for citizens crossing borders. The division saw many analysts fear for the bloc despite officials insisting that under the principle of reciprocity and variable geometry countries were allowed to join regional initiatives at the point where they felt ready enough. This sounded quite hollow with Tanzania and Burundi snubbing meetings called to fast-track integration. During the Burundi political crisis last year, Tanzania appeared to be sympathetic to President Pierre Nkurunziza. At the time, relations between Rwanda and Burundi were tense with the...

Tanzania is planning a $300 million energy project that will see it export electricity to Kenya within the next two years. The project is being financed by the African Development Bank (AfDB). Tanzania Electric Supply Company (Tanesco) deputy managing director Deckian Mhaiki told The EastAfrican that part of the project will involve a 2,000MW supply line to Kenya, to be in place by 2018. Mr Mhaiki said that Tanesco is in the final stage of floating a tender for the design and construction of the line to a border town in Kenya. He added that Kenya had indicated to Tanesco that it needed about 1,000MW through a double traffic line/ an extension of 1,600km-long backbone electricity transmission line running from the Tanzanian town of Iringa to Shinyanga through the towns of Dodoma and Singida. Mr Mhaiki, however, said that the construction of the 680km line between Iringa and Shinyanga that had been slated for completion in June, has been delayed for another three months. The line is also meant to provide mining companies in the Lake Victoria area in Tanzania with reliable electricity. The Tanesco official said a feasibility study on a $500 million worth project to connect the Tanzanian supply line with that of the Zambia has started as part of a project to link East African and the Southern African electricity pools. Tanzania, which now depends on gas for 60 per cent of its domestic power consumption, is also eyeing markets in drought-prone Southern African countries. Currently, Tanzania...

East Africa is projected to lead other African regions in growth, rising 6.8 per cent in 2016 and 6.6 per cent in 2017, backed by robust growth in countries such as Rwanda and Tanzania, according to the Economic Report on Africa 2016. This is despite low commodity prices, rising imports of capital goods for infrastructure and the recent drought. By contrast, East Africa will lag behind on its urbanised population share by 2050. East Africa’s rural majority will translate into slower growth in manufacturing and a continued reliance on agriculture in the medium term (to 2025). The report titled “Greening Africa’s Industrialisation” and launched during the African Development Week in Addis Ababa shows that East Africa maintained the highest growth rate in the region, at 6.2 per cent in 2015, despite a decline from 7.0 per cent in 2014. But UN Economic Commission for Africa executive secretary Carlos Lopes warned that the current growth — driven largely by government related spending — has not generated sufficient jobs and has not been inclusive enough to significantly curb poverty. “It is difficult to predict how the current downturn in commodity prices will affect Africa’s development trajectory: the situation is certainly difficult, but is providing powerful incentives to relocate economic resources away from commodity production and into more sustainable activities,” said Dr Lopes. The report says that regional risks include weather-related shocks. Drought could hurt agriculture, which is still the main employer in most African countries. Poor harvests would increase risk of inflation...