The World Bank in partnership with two other development partners on Tuesday launched a 596 million U.S. dollars project aimed at improving operational efficiency of Dar es Salaam port in Tanzania. dollar The World Bank which has approved a 400 million U.S. dollar loan will partner with the UK’s Department for International Development (DFID) that has approved a grant of 136 million U.S. dollars and TradeMark Africa, an organization funded by a range of development agencies in East Africa, that has made a commitment of 60 million U.S. dollars. The three development partners said in a joint statement that the project will involve the demolition of sheds 2 and 3 at the Dar es Salaam port as part of the Dar es Salaam Maritime Gateway Project to improve the physical capacity of infrastructure and operational efficiency at the port. The project is a Tanzania Ports Authority plan which was a response to the east African nation’s Big Results Now initiative aimed at generating capacity to cater for the impending traffic growth at the port. TradeMark Africa’s support under phase one of the project focused on enhancing the port’s efficiency through demolition and relocation of sheds 2 and 7, said the statement. The statement said that it also involved the upgrading of roads and gates to introduce a single way traffic flow system at the port. The second phase of the project funded by the World Bank and DFID was aimed at the dredging and modernization of berths to allow the...

The East African Community ( EAC) Secretariat has embarked on a strategy to encourage ownership and protection of the integration process by citizens. As a way of strengthening communication and sensitisation on its achievements and popularising integration benefits to all East Africans, the EAC Secretariat and GIZ, an international enterprise owned by the German Government, are set to conduct sensitisation workshops at various border points including the one at Sirari/Isebania. The workshops to be held between April 16 to 17 and from 23 to 24 targets small traders, young entrepreneurs and women traders. Special attention will be given to the free movement of goods, capital, persons and labour across EAC partner States. The workshops will be complemented by trainings on customs clearing procedures, including payment of taxes and the consequences of crossing the border without a valid travel document, according to a statement from EAC Secretariat. Training guidelines will be developed to increase knowledge about cross-border trade for the selected target groups. Source: Standard Digital

Landlocked countries that import goods through Mombasa port could see a significant rise in the cost of goods when sections of the Kenya Finance Act 2014 come into force from July 1. Transporters are warning of a possible 10 to 12 per cent increase in freight charges thanks to recent changes to the VAT law. In a tax alert to its clients last September, the accounting firm PriceWaterhouse Coopers said that while the supply of taxable services in respect of goods in transit was previously zero rated under the repealed VAT Act, the Finance Act 2014 had changed services relating to goods transiting through Kenya to inland countries from zero rated to exempted services. “By exempting these services, transportation companies will not be entitled to input tax recovery on the same percentage of VAT paid on their purchases equal to the percentage of revenue earned for transit cargo. This will increase the cost of doing business in Kenya and ultimately increase the cost of transit goods,” the firm said it its alert. The EastAfrican has learnt that sections of the Kenyan freight industry engaged the Kenya Revenue Authority over the development on March 31, but the tax collector said the power to correct the anomaly lies with the Treasury. On April 10, Kenya Uganda rail concessionaire Rift Valley Railways in conjunction with Spedag-Interfreight were expected to submit a lobby paper to the Treasury, seeking a reversal of the move on VAT. Separately, the Kenya Association of Transporters was preparing another...

NAIROBI, Kenya – A proposed regional law that will help unlock agricultural productivity is waiting for the signatures of the five Heads of State. The enactment of the East African Community Cooperatives Bill 2014, which stands to benefit EAC farmers now awaits endorsement by Presidents Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda, Jakaya Kikwete of Tanzania, Rwanda’s Paul Kagame and Pierre Nkurunziza of Burundi. Agriculture is the dominant sector in the five member states, followed closely by wholesale and retail trade as well as manufacturing, transport and communications. This piece of legislation which was passed last January may have gone unnoticed by the majority of the 140 million citizens with in the EAC. It is expected to move the entire region’s economies and people to new levels of social and economic development by unlocking the region’s productive potential. The EAC Cooperatives Bill is a harmonized legislative framework for the facilitation of East Africa’s cooperative societies. It is viewed by its proponents as a vote of confidence by East Africans and the vehicle that will drive existing economies to new levels of growth and prosperity. Mike Sebalu, a Member of Parliament in the East African Legislative Assembly (EALA) from Uganda who moved the Bill said the importance of creating a law that responds to the needs of East Africans by its capacity to catalyze economic and social development in the region. “The spirit of the EAC’s integration agenda is that it is people-centred, private sector led and market-driven process that...

ARUSHA, Tanzania - The East African Community (EAC) Secretariat, together with the German Agency for International Cooperation (GIZ), will hold sensitization workshops at Mutukula and Sirari/Isebania borders. These will take place from April 16th to 17th and from 23rd to 24th April respectively. The workshops are seen as a way to strengthen communication and sensitisation of EAC achievements and popularizing integration benefits to all East Africans. Target groups include small traders, young entrepreneurs and women traders, will be conducted in a participatory manner with presentations on EAC policies, projects and programs. “The potential for cross border trade and related economic impact at border communities are not entirely explored, because remote communities have very little or no knowledge of the integration or its benefits” Richard Owora, the Head of EAC Corporate Communications and Public Affairs said last week. Special attention will be given to the free movement of goods, capital, persons and labour across EAC Partner States. According to a release, the workshops will be complemented by trainings on customs clearing procedures, including payment of taxes and the consequences of crossing the border without a valid travel document. Training guidelines will be developed to increase knowledge about cross-border trade for the selected target groups. EAC-GIZ will also be engaging community based media in disseminating EAC information, education and communication as a means of reaching out to more East Africans. “With these workshops, border communities and the small traders will gain essential skills and knowledge from the best practices and lessons learned...

Tanzania's biggest infrastructure project since independence, the USD14.2 billion Central Corridor rail project, will help make Dar es Salaam port the country's biggest revenue-generator. Harrison Mwakyembe, minister of East African development, made the claim last week at an economic conference in Dar. However, the port first needs to cut red tape, improve IT systems, speed up customs clearance, and tackle inefficiencies that lead to delays and theft, Mwakyembe said. Tanzania's Daily News also reported that Prof Benno Ndullu, governor of the country's Central Bank, predicted the port's earnings will soon overtake those from tourism. Dar es Salaam is served by the metre-gauge Central Railway, which runs to Kigoma on Lake Tanganyika and Mwanza on Lake Victoria. It is in poor condition, unreliable and carries only a tiny percentage of freight destined for the port. The new project, officially launched at the end of March, will see the link completely rebuilt over the next five years as a modern, high-capacity standard-gauge (SG) freight and passenger railway. Once the line is complete, it is expected to move more than 30 million tonnes of cargo a year, compared with barely 5 million tonnes today. Construction is scheduled to start in June. Costing USD7.6 billion, the 2,561km SG main line will largely follow the existing metre-gauge route from Dar es Salaam. However, completely new lines will approach Bujumbura, capital of Burundi, and the Rwandan capital, Kigali, from the south and west. At Kigali, the Central Corridor railway will connect with the Standard Gauge Railway...

EAST African Community (EAC) Secretariat in collaboration with GIZ plan to conduct sensitization workshop in Mtukula and Sirari borders between April 16 and 17 and 23 and 24 respectively to strengthen communication and sensitization of the community achievements and popularizing integration benefits. Head of EAC Corporate Communications and Public Affairs, Mr Owora Richard Othieno, pointed out that the workshops targets small traders, young entrepreneurs and women traders and will involve presentations on EAC policies, projects and programmes. "Special attention will be given to the free movement of goods, capital, persons and labour across EAC Partner States," reads part of the statement. He said that the workshops will be complemented by trainings on customs clearing procedures, including payment of taxes and the consequences of crossing the border without a valid travel document. According to Mr Othieno, training guidelines will be developed to increase knowledge about cross-border trade for the selected target groups. EAC-GIZ will also be engaging community based media in disseminating EAC information, education and communication as a means of reaching out to more East Africans. "The potential for cross border trade and related economic impact at border communities are not entirely explored because remote communities have very little or no knowledge of the integration or its benefits," he noted. He explained that from the workshops, border communities and the small traders will gain essential skills and knowledge from the best practices and lessons learned in the integration process. The first round of the sensitization workshops were held between June...

The International Chamber of Commerce (ICC) urges African politicians to ratify the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) at the 20th anniversary of the organization in Marrakech. Welcoming Ministers from African nations, the Prime Minister of Morocco and representatives from the World Bank, TradeMark Africa and the International Road Transport Union (IRU), the World Trade Organization celebrated its 20th anniversary in Morocco. The event marked the birth of the WTO in Marrakech in 1995 and gathered African Parliamentarians to discuss the benefits of the WTO's Trade Facilitation Agreement for Africa's economic growth and trading future. The event targeted parliamentarians from more than 20 African countries, including Burkina Faso, Cameroon, Cote d'Ivoire, Ghana and Kenya, as in many countries parliament plays a key role in the TFA Protocol's ratification process. The TFA has the potential to deliver an unprecedented stimulus to the world economy with a boost of US$1 trillion. Thus far only Hong Kong, US, Singapore and Mauritius have ratified the TFA while 107 ratifications are needed for the TFA to enter into force. In his opening remarks, WTO Director General Roberto Azevedo identified the TFA as a momentous opportunity for African countries as trade costs in Africa are still 30% higher than the global average. Donia Hammami, ICC Policy Manager, spoke on the benefits of the TFA for Africa from a business perspective - emphasising the TFA's ability to boost countries' competiveness. Noting that Africa only accounts for less than 3% of world trade, Ms Hammami said:...

Arusha — DAR ES SALAAM city has been chosen to host this year's instalment of the East African Media Summit being organised by the EAC Secretariat together with the East African Business Council (EABC). The Head of Communications at the East African Community Secretariat in Arusha, Mr Richard Owora-Othieno, revealed here that both EAC and EABC as well as Heads of Media Houses across the region are finalising preparations for the 7th EAC-EABC Media Summit, which is to be held from 14 to 15 May 2015, at the Hyatt Kilimanjaro Hotel Dar es Salaam, Tanzania. The 7th EAC-EABC Media Summit will bring together over 250 Media owners, CEOs, Publishers, Editors, prominent Media personalities and practitioners on a round table discussions under the theme: The Role of the Media in Deeping Democracy in the Region, with sub-themes on Democracy in the EAC: Achievements and Challenges; The Role of Media in Electoral Processes and Regional Security, Business Environment and Media: Towards a Common Goal. The EAC statement quotes the Chairman of the Preparatory Committee, Mr Kajubi Mukajanga, as saying "We see the Summit as a vehicle to increase the visibility of EAC's flagship in the integration process and EAC-EABC joint activities through the media is commendable." The Head of Corporate Communications and Public Affairs at the EAC Headquarters Owora Richard Othieno notes that the Media Summit is designed to, among others; advance the relationship between the EAC/EABC and the media, who have long been recognised as strategic partners for the Community in...

Investments in trade infrastructure as well as the removal of bureaucratic and procedural barriers to economic integration have positioned the East Africa region as the destination of choice for doing business, a study has shown. A study published on Wednesday by the TradeMark Africa (TMA), a donor-funded organization formed to help regional states speed up integration, said the harmonization of product standards has expanded the East African Community (EAC) trade basket. Encouraging results achieved over the past year, including investments in key ports have resulted in reduced cargo transit times on East Africa’s main transport corridors, and accelerated implementation of the EAC’s Single Customs Territory, said TMA Annual Report. TMA Chief Executive Officer Frank Matsaert said the reduction of average time to clear goods at Kenya’s Mombasa port and transport them to Kampala, Uganda to fours days has buoyed the investments in the EAC region. Matsaert said the reduction in the number of customs declarations by 90 percent leading to an increase in trade volumes, an example of fuel imports into Uganda which has increased from 32. 1 million litres to 108 million litres are behind surge in investments. "The results presented in this annual report point to an ever improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa," he said in Nairobi. He said poor infrastructure, delays in cargo clearance and customs procedures at the port contribute to the high cost of doing business along the transport corridor. Mombasa port serves...