Innovative efforts to dismantle trade barriers in East Africa provide a shining example of how the private sector can work alongside governments and nonprofits to help drive sustainable economic growth and lift people out of poverty. The East African Community has made great steps toward stimulating trade in the region in recent years. Customs union and a common market mean that Burundi, Kenya, Rwanda, Tanzania and Uganda enjoy some of the most liberal trade relations on the continent. The five member states also qualify for duty-free access to the U.S. market under the African Growth and Opportunity Act. However, underdeveloped infrastructure, nontariff barriers like rules and regulations, slow and uncertain transit times, and some of the highest transport costs in the world remain big challenges. These have a direct impact on the poor — both as producers and consumers — explained Matt Rees, U.S. Agency for International Development deputy coordinator for Trade Africa. They limit farmers’ access to agricultural inputs and raise food prices for the poor. Inefficient border operations and uninformed export bans prevent countries with surplus food from trading with neighboring countries that don’t have enough, which contributes to food insecurity. “Reports indicate that East Africa produces enough food to feed East Africa,” Rees said. “[But] inefficient markets and [nontariff barriers] produce peaks and valleys in the food supply, leading to chronic food shortages and an approximately $1 billion a year requirement for food aid from the U.S. government alone in sub-Saharan Africa.” East Africa’s major ports —...

WITH an improvement in the level of intra-African transactions and communication, African products would enjoy a boost at the global market coupled with the concomitant promotion of peace, integration and trans-border trade across the region, the African Organisation for Standardisation has said. Underlying the need to boost intra-African trade, ARSO President, Dr. Joseph Odumodu, who is also the Director-General of Standards Organization of Nigeria (SON), stated that the organization is working at boosting intra-African and global trade through the provision, facilitation and the implementation of harmonized standards in the continent. According to him, the fundamental mandate of ARSO is to develop tools for standards development, standards harmonization and implementation of these systems to enhance Africa's internal trading capacity, increase Africa's product and service competitiveness globally towards sustainable industrial growth and development. He stated that by 2017, the African standardization mechanism should be able to deliver a benchmark that would be acceptable to all in the continent. "Most of our achievements at ARSO are on the continental level, but one thing we have done is that, we have midwifed the signing of Memorandum of Understanding (MOUs) between countries because we believe that even though we act at the continental level, it is the country to country relationships that will result in a closer working relationship between countries. "For example, Nigeria has signed with five other African countries and I am also aware that Cameroun has signed with another seven African countries. The other point I will like to make is that...

Inconsistencies in the proposals to ratify a number of treaties governing the East African Community (EAC) member states has been cited as a stumbling block in creating a harmonized, democratic and consultative approval process as the region gradually integrates. In Uganda, the Ratification of Treaties Act 1998 empowers the cabinet to approve all agreements made by the country except in cases where such treaties relate to peace agreement. However, the current process in Uganda does not involve parliament, a critical arm of government, which enables a wider consultation among stakeholders and subsequent debate to scrutinise the benefits and the likely costs of ratifying such a treaty on the economy. In Tanzania, it is the national assembly to approve treaties, while in Burundi and Rwanda, it is the presidency. In his presentation during a national consultative meeting on the ratification of trade and investment-related treaties in Uganda, and the EAC organized by SEATINI Uganda in Kampala recently, stakeholders argued that it was important to put the issue of ratification of treaties into the public domain for a wider stakeholder understanding and democratisation of the process. “Democratic gaps still exist in the ratification of trade and investment agreements in Uganda as a whole. There is, therefore, a need to examine the implications on the economy and people’s livelihoods,” said Martin Luther Munu, the programme officer SEATINI Uganda. Babra Turyasingura, a legal officer from Uganda Law Reform Commission, says ratification is the prerogative of the president and people should not compete for that...

Authorities in Nairobi, Kampala, and Kigali are caught in a race to expand key road infrastructure following an upsurge in vehicle traffic. The traffic woes around East African capital cities reflect the high number of vehicles cleared at the Port of Mombasa which has grown sharply over the years, piling pressure on governments in the region to expand existing infrastructure facilities. A total of 157,856 motor vehicles were discharged in 2014 compared to 136,915 units cleared the previous year, an increase of 20,941, statistics by the Kenya Ports Authority (KPA) showed. In 2012, 120,268 units were cleared at the Mombasa port, which also serves landlocked countries like Uganda, Rwanda, Burundi and South Sudan. Tanzania does most of its importations through the Dar es Saalam port. Projections showed that the number of cars getting into the East Africa region is expected to grow progressively. The growing number of vehicles getting into the region and using the roads has put pressure on the existing infrastructure, necessitating the expansion of road networks in major cities. The need for more roads is independent of the developing EAC railway project and the expanding of Eastern and Northern Corridors. The expansion of roads will ensure the number of vehicles getting into the region will not cram the existing roads, which were previously designed to accommodate fewer units. After the expansion of Thika road and building of Eastern, Southern and Northern bypass, the Kenyan government has also embarked on the expansion of road networks within the city,...

TradeMark Africa plans to spend Sh8.24 billion on infrastructure developments within the East Africa Community to boost intra-regional trade. The regional logistics non profit company said in a statement after official release of its annual report that the money will be spent on infrastructure projects that will ease cross border trade further. “We are focusing to invest around $85 to $90 million, which will spur investments and benefits citizens of East Africa,” CEO Frank Matasert said in the statement. The report showed that cargo clearance processes at regional border posts across the EAC member states has eased leading to improved trade. In the current financial year 2014/2015, TradeMark said it will focus on achieving harmonised standards for goods in the region, with 108 standards so far harmonised. Out of these, 41 were adopted as EAC standards and 42 are under consideration. The standards will represent seven of the 20 most traded goods within the EAC. Trade improvement efforts by the non-profit organisation have however suffered setbacks due to terrorism and depreciation of regional currencies, a problem the CEO projected will continue into the near future. Some of the breakthroughs made in the last financial year, according to the TradeMark EA report include reduction of the average time taken to clear goods at Mombasa Port to four days and number of customs declarations by up to 90per cent, leading to an increase in trade volumes, such as fuel imports into Uganda which have increased from 32.1million litres to 108 million litres....

When recently President Paul Kagame of Rwanda and President Pierre Nkuruzinza of Burundi officially flagged off two sets of block trains along the Central Corridor to Ishaka and Bujumbura respectively, it signalled Tanzania’s President Jakaya Kikwete’s determination to remove non tariff barriers (NTBs). Block trains give bulk shippers opportunities to save on transport costs and take delivery of their consignments much quicker than usual. This also applies when one is exporting. Introducting block trains gives business people more options and less red tape to deal with. This is great news for manufacturers and industrialists in Burundi and Rwanda. When handed the East African Community Summit Chair in Nairobi in January, Kikwete promised his colleagues there would be a huge improvement along the Central Corridor. He said no efforts are to be spared in getting rid of NTBs. Quitely obviously, he is living up to his words, because block trains reduce delays. Presently, the EAC has two main trunk routes into the hinterland and the landlocked countries of Burundi, Rwanda, South Sudan, Uganda and the eastern parts of the Democratic Republic of Congo. The Northern Corridor entry point is through Mombasa, while Dar es Salaam port acts as the entrepot for the Central Corridor. The Tanzania government has been making efforts to pay for the refurbishment of the Central Corridor rail line which stretches a length of about 1,250 kilometres. Plans are to also upgrade it to a Standard Gauge line to complement construction of a similar railway along the Northern...

The issue of trade barriers in the East African Community (EAC) could soon be history based on the effort that the region's leaders are investing on it. The focus is now on removing Non-Tariff Barriers on the so-called Central Corridor to ease the free movement of goods and services in the community. And there is a bonus. The initiative on the Central Corridor has brought Tanzania and Rwanda closer. It is a departure from when Rwanda, Uganda, and Kenya came together to fast track the integration projects and speculation swarmed that they were moving to sideline other member countries especially Tanzania and Burundi. Presidents Paul Kagame, the Tanzanian President Kikwete, and Burundian leader Pierre Nkurunziza and other top government officials from the region on March 26 attended the first ever Central Corridor heads of state meeting in Dar es Salaam. The Central Corridor gateway is a highway that connects the landlocked countries of Burundi, Rwanda, DR Congo, and Uganda from the port of Dar es Salaam in Tanzania through Dodoma to Kigali in Rwanda, Bujumbura in Burundi. It also connects to Mutukula in Uganda. It is the second major route in the region and is considered as a heart for Rwandan imports and exports as 60 percent of Rwandan goods go through the port of Dar es Salaam. President Kagame while addressing the forum reiterated the political will as the only required mantle to have the region move forward. "For initiatives of this scale and importance, there is no substitute...

Kampala — TMA does not call the shots, but follows a path laid out by the East African Community Heads of State Summit writes WINNIE MANDELA. Basically this set out the broadstrokes of what the five countries want in a Single Customs Territory (SCT). The framework spells out the guiding pillars under which SCT will operate free circulation of goods revenue management, and legal institutional framework, operational instruments outlining clearance processes in customs and other agencies to support the implementation of the framework and amendments of the EAC Customs Management Act, were also later adopted. The SCT business manual and compliance framework were approved. A pilot based approach segmented on the Central and Northern corridor, will progressively cover all goods cleared at the first point of entry. ICT manpower will also be enhanced to oversee the development of the Territory. TMA's support to implement the Customs Management System (CMS) for the Kenya Revenue Authority (KRA) continues. Technical proposals for CMS procurement are under evaluation. Installation of the CMS and operationalization of the centre of excellence at KRA are expected to boast efficiency within KRA. The investment is expected to facilitate seamless integration with other national and regional systems to fulfill the EAC Common Market Protocol and create a fully functional customs union The Burundi Revenue Authority OBR collected 558 billion Burundian Francs (BIF) in 2013 which is slightly 2.1% higher than the target and BIF 34 billion above 2012 collections. OBR remains confident of reaching the FY 2014 target, although...

Africa has no choice but industrialise to add value to its natural resources to maximise export earnings from these, Industry and Commerce Minister Mike Bimha said last week.He told journalists at the 18th Common Market for Eastern and Southern Africa (Comesa) Heads of State and Government Summit that government and the private sector should work hand in hand to achieve this goal. Minister Bimha said it was only through industrialisation that Africa can tackle extreme poverty on the continent. At present, the continent largely exports its natural resources - mainly minerals - in raw form cheaply, and re-imports finished products made from these at high cost. President Mugabe, who is also chairman of Sadc and the African Union, has consistently spoken against this trade trajectory of the continent, and pushed for industrialisation and value addition. It is partly due to this that in 2013 the 19-member Comesa group recorded a $6 billion trade deficit, importing goods worth $41 billion against exports of $35 billion. "For Africa to go forward we need to industrialise, there is no way we can continue to export raw materials. We cannot continue to rely on other people converting or adding value to what we produce and in turn sell the same to us at exorbitant prices. That time is way behind us," Minister Bimha said. Source: All Africa

Rwanda's President Paul Kagame has downplayed the diplomatic tiff between Kigali and Tanzania, saying that the two countries are in the East African Community to work for “one common objective”. “I didn’t realise that things were so bad between us and Tanzania that when we talk to each other it becomes headline news. But yes, we are all in the East African Community, we work for one common objective of integration. People may have different views about different issues but at the end of the day the interests are the same. There are common objectives,” President Kagame said. President Kagame’s remarks came as the two countries quietly work on plans to rekindle bilateral ties which broke down in 2013 after President Jakaya Kikwete called on Rwanda to hold talks with the Democratic Forces for the Liberation of Rwanda (FDLR). The comments by the Tanzanian leader riled Kigali, threatening relations, with President Kagame at some point vowing to wait for the right time to hit back at his Tanzanian counterpart. The relations soured from May 2013 and by the beginning of 2015, there were no signs of mending fences. However it all changed when President Kikwete took over the chairmanship of the EAC in February. The two leaders met in Nairobi after almost two years. On March 7, President Kikwete travelled to Kigali on an invitation of his Rwandan counterpart to attend the 9th Northern Corridor Integration Projects Summit, signalling a change of heart. President Kikwete’s visit was reciprocated when Kagame...