World Trade Center Delaware will host a March 31 roundtable discussion to provide advice on navigating the business environments of five nations in sub-Saharan Africa. The event is designed to help local companies take advantage of the United States' new trade agreement with the East African Community, which includes Burundi, Kenya, Rwanda, Tanzania and Uganda. Stabilizing political environments and above-average GDP growth are making the countries of sub-Saharan Africa increasingly active trade prospects, having imported $1.2 billion in American goods in 2013 and $2 billion in 2014, according to the nonprofit trade center. The roundtable will be led by Ludwika Alvarez, an international trade specialist with the U.S. Department of Commerce, who advises multinational corporations and small businesses on strategic market entry and supports commercial diplomacy efforts in East Africa. The event will held from 8:30 a.m. to 10:30 a.m. at the Diamond State Port Corporation in Wilmington. Attendance is free for World Trace Center Delaware members and $50 for non-members. Source: Delawareonline

Tanzania has secured Tsh138 billion ($76.8 million) to expand its rail network to East African countries after the introduction of a block train scheduled to start operations next week. The train will speed up the movement of goods from Tanzania to other countries. On a block train, all wagons carry the same commodity and are shipped from the same origin to the same destination, without being split up or stored en route. The main benefit of the block train is a shorter journey time compared with the system of single wagons shipments. According to Permanent Secretary in the Ministry of Transport Shaaban Mwijanka, the government has already spent $40.7 million to purchase 19 locomotives. “Our port is now an entry point to the East and Central African markets. In a bid to ease transportation of goods, Tanzania has decided to invest in a block train,” Mr Mwijanka said. He said the block train will start its route from Dar es Salaam to the north-western towns of Kigoma and Isaka. One locomotive will be able to pull 21 wagons and carry 880 tonnes of cargo. Mr Mwinjaka said goods like fertiliser, cement, sugar and food products can be moved in bulk. Tanzania Railway Ltd director general Kipallo Kisamfu said the TRA plans to transport up to three million tonnes of cargo by 2016, up from 200,000 tonnes transported in 2012. Over the past five years, the overall cargo handled by all ports in the country has been increasing at an average...

Tanzania’s parliament has passed the Non-Citizens Employment Regulation Bill, 2014, which once signed into law, will make employment conditions for foreigners on the Tanzania mainland more stringent. The Bill — which if assented to by the president, could come into effect from July 1 — introduces tougher rules for foreign and local companies that intend to recruit foreigners. Indeed, some lawmakers have termed it retrogressive. Tabled by Labour and Employment Minister Gaudentia Kabaka, the Bill suggests, among other things, that any person who intends to employ a non-citizen prepare a succession plan for the position to be taken over by a Tanzanian. It also creates a Work Permit Register, to be kept and maintained by the Labour Commissioner to record information related to work permits and certificates of exemption. “This law will help the country to have one institution for issuing permits to non-citizens and we will have more Tanzanians employed as well as create proper identification of foreigners working in the country," said Ms Kabaka. However, MPs in the opposition criticised the Bill, saying it had many irregularities that needed to be addressed first. They said the Bill gave more discretionary powers to the Labour Commissioner and the minister, who could abuse it. The Bill suggests that any person who wishes to employ a non-citizen shall apply to the labour commissioner for the work permit and before approving the application, the commissioner shall ensure that all possible avenues have been explored to obtain a local expert. The Labour Commissioner...

South Sudan and Somalia may not be allowed into the East African Community unless they return to stability and adopt democracy, EAC Chair President Jakaya Kikwete has hinted. While delivering the State of EAC Address in Bujumbura on Thursday last week, President Kikwete said democracy, good governance, human rights and rule of law are critical tenets of the EAC. “Better governed member states contribute to a prosperous region... badly governed states frustrate integration. It impedes trade, co-operation, as well as movement of people, goods, services and capital. Moreover, it deters investment and makes the region an unfavourable destination for investment and trade,” said President Kikwete South Sudan has been pushing to be admitted to the EAC since 2011, soon after it obtained Independence from Sudan. The 1999 EAC Treaty sets out conditions for membership, including adherence to universally acceptable principles of good governance, democracy, rule of law, observance of human rights and social justice. At the EAC Heads of State Summit in Nairobi on February 20, the five presidents agreed that the final negotiations on the bid by South Sudan to join the community should begin between March and August 2015 despite its current security situation. The EAC heads of state have been at the forefront in calling for an immediate end to hostilities in South Sudan. In December 2012, EAC members rejected South Sudan’s application, citing its periodic conflict with neighbouring Sudan, not holding democratic elections and lack of a democratic culture. At the time, Tanzania was concerned about...

The EAC has deferred the clearing of sensitive goods through the Single Customs Territory until some concerns have been addressed. The four products — sugar, alcoholic and non-alcoholic drinks, second-hand clothes and edible oil — were withdrawn by Kenya, Uganda and Rwanda after stakeholders termed them as “controversial goods.” “The lack of harmonised quality and inspection standards and uniform taxes by partner states on clearing goods, and the challenge of verifying the origin of the products, are the main issues on clearing these goods,” said Kenya Shippers Council chief executive officer Gilbert Langat. The goods will remain suspended until the issues are resolved, he added. EAC states’ national standards bodies are in the process of harmonising quality inspection procedures. The harmonised system is expected to facilitate the inspection of products at the first point of entry into the region. Harmonised standards mean that a conformity assessment will be done only once, instead of goods being assessed in each country. This is expected to increase efficiency in the movement of goods, the pace of trade and reduce costs associated with assessments. Mr Langat said sugar, in particular, is a sensitive product for the partner states and the challenge has been how to verify its source. Since 2008, imported sugar has been finding its way into the Kenyan market either illegally through its porous borders, or legitimately through Comesa. “It has not been easy to tell whether it is coming from the Comesa countries or outside, and since partner states have accused...

TANZANIA is going for full fledged Single Customs Territory (SCT) in the next financial year, thanks to the successful and efficient piloting of the system since July 2014. The system seeks to facilitate increased trade in the region, reduce cost of doing business as well as eliminate dumping of goods in countries of transit to protect industries and jobs. This was unveiled in Dar es Salaam by the Deputy Commissioner - Trade Facilitation and Procedures, Mr Patrick Mugoya, in an interview over the implementation of the SCT. "All the challenges that emerged during the SCT piloting period will by April this year be sorted out for full implementation in the 2015/16 financial year," he said. The challenges for which are being worked out by experts from the East African member states include the complexity of systems interfacing as well as the use of customs bonded warehouse. Others are the slow pace of the cross border government agencies and regulators to adopt SCT systems and fear job loss by the freight and forwarders. Under the system, the process and documentation are done in the country of destination before the consignments are cleared and released at the port of entry. Mr Mugoya added that the system applies for the maritime goods coming into the EAC region and the intra-regional trade. Some of the goods that were assessed during the piloting period include rice, maize, sugar, neutral spirits, cigarettes, petroleum products, wheat, salt, edible oil and pharmaceutical and cosmetic products. He said also...

THE recent pledge by President Jakaya Kikwete, also Chairperson of the East African Community (EAC) that he would give due attention to elimination of Non Tariff Barriers in the region, deserves commendations as partner states strive to make the region the best place to do business. Addressing members of the East African Legislative Assembly (EALA) in Bujumbura, Burundi on Thursday, President Kikwete cited examples of achievements registered in trade leading to 300 per cent increase in the value of trade from 2 billion US dollars to 6 billion dollars in 2014. The Charter establishing the East African Community (EAC) stipulates that the entry point in the integration process would be the Customs Union, followed by the Common Market, later the Monetary Union and ultimately the Political Federation. Implementation of the Customs Union which started in 2000 involved free movement of goods produced in any of the region and a common external tariff. Goods are supposed to move freely across the borders of member countries without tariffs being charged and not hampered by Non Tariff Barriers. Indeed, it has proven helpful in reducing encumbrances to importers and in discouraging dumping and diversion of transit goods. Ultimately, it will be an effective tool of promoting trade and curbing revenue loss to governments. The region is looking forward for increased revenues when the Single Customs Territory becomes fully operational in the near future and the piloting exercises are progressing well in all member states. The appeal to EAC member states on the obligation...

FINLAND has contributed to Zambia’s new product and packaging standards through the international trade centre which was signed with Common Market for East and Southern Africa (COMESA) to boost intra-African trade, Finnish ambassador to Zambia Timo Olkkonen says. Mr Olkkonen said the promotion of regional integration has the potential to contribute to the growth of the country’s economy. He said recently when he presented a letter of appointment as representative of Finland to the COMESA secretary general Sindiso Ngwenya. “Finland appreciates enormously the possibilities and potential regional integration can have in boosting a country’s economy and well-being. Finland is supporting information technology communication [and] promoting intra-regional trade with a project that is concentrating in mango, honey and spice produce." “In Zambia, the project has contributed to new product and packaging standards…There was a delegation from Zambia to study export-opportunities in Finland and study value-chains in Finnish markets last January,” he said. He said Finland is an economy that is highly dependent on exports with its main markets being Europe and has been keen to integrate with the European Union (EU) which has resulted in its economic growth. Mr Olkkonen said Finland also supports the development of the private sector in Zambia. He also said Finland believes that the current economic growth witnessed in many African countries will continue to provide opportunities to local, regional, continental and international trade. He said Africa has the potential for a more strong economic growth through closer regional cooperation and integration, since intra-African trade still...

More than 30 private sector companies have so far applied for grants in the first round of TradeMark Africa’s Logistics Innovation for Trade, or LIFT, fund, which was launched in Europe last month. With such funds typically attracting a deluge of applications in the final days before a round closes, many more are expected to submit proposals between now and the March 31 deadline, according to Clara Garcia Parra, a consultant at Nathan Associates, which is managing the fund. A number of the firms applying are multinationals. Backed by the U.K. Department for International Development, the LIFT fund has raised $16 million to provide challenge grants ranging from $250,000 to $750,000 to help companies develop new ways of cutting the cost and time involved when trading goods within East Africa. Its aim is to encourage the private sector to invest in East Africa’s logistics and transportation industry, testing out fresh innovations that will help bring down the significant barriers to trade that slow the region’s economic development. The idea is that LIFT will shoulder part of the perceived risk of investing in East Africa and reduce the cost of entry for companies eyeing the region, TMA CEO Frank Matsaert told Devex. This will not only inject expertise into the sector but will stimulate price competition into “what are fairly cartelized niches.” Transport costs in East Africa are around 60 percent higher than those in the United States or Europe, many supply chains are underdeveloped, and the logistics industry lacks technological...

East African countries on Wednesday vowed to harmonize policy and regulatory frameworks to enhance response to the menace of electronic waste (e-waste) that poses serious threats to human and ecological health. Policy makers and experts from the region said in Nairobi that countries will share best practices and roll out joint programs to promote management of e-waste. "E-Waste is an emerging environmental challenge across the east African region thanks to increasing demand for electronic devices like mobile phones, tablets and computers," said Kenya’s Cabinet Secretary for Environment Judi Wakhungu. She said disjointed policy and regulatory frameworks, infrastructural and resource gaps hampered sustainable management of e-waste in the region. Pollution occasioned by unsafe disposal of obsolete electronic gadgets is to blame for a spike in life threatening diseases across the east African region. Wakhungu said tused electronic gadgets are being disposed into landfills adjacent to residential premises and sensitive ecosystems. "E-waste when burnt causes air pollution through release of toxic emissions. "Poor disposal blocks water channels and compromises scenic beauty," Wakhungu said, adding that East African countries should explore innovative but homegrown measures to contain the menace of e-waste. She said investment in recycling facilities and technical skills will promote management of e-waste while creating jobs for youth and women. "Recycling makes business sense because end of life electronic devices contain precious metals such as gold, silver and copper. "Establishment of vibrant treatment facilities will unleash environmental and economic benefits to the East African Community," Wakhungu said. Kenya has established two...