News Tag: Tanzania

Non-tariff barriers dog EAC

The East African Community (EAC) has been advised to set a target for intra-EAC trade growth for this year of 15% by promptly eliminating Non-Tariff Barriers (NTBs). Peter Kiguta, the Director General Customs and Trade at the EAC Secretariat was speaking at the 16th EAC Regional Forum on NTBs held recently. He suggested the Chairpersons and Co-Chairpersons of National Monitoring Committees (NMCs) to exchange their contacts in order to redress NTBs when reported instead of waiting for the Regional Meetings. He said the share of the intra-EAC has continued to decrease over the years recording less than 12% growth in 2013 compared to 2008 when it recorded 12% growth. “This calls for measures to be put in place to redress the decline which include elimination of NTBs affecting Intra-EAC trade as the EAC Partner States were trading with the rest of the at 88% compared to the European Union which was trading at 2% and Asia at 40%,” Kiguta said. Kiguta underscored that this scenario has led to loss of revenue which is needed to finance infrastructure and other socio-economic projects and the exportation of jobs. He further informed the meeting that the 30th Meeting of the Council had adopted the draft NTBs Bill and forwarded it to the East African Legislative Assembly for enactment into the law, it is expected that to complement the work of National Monitoring Committees and the EAC Regional Forum on elimination of NTBs. Kiguta further said that the implementation of the one stop Border...

What EAC needs to attain single currency by 2024

Following the signing of the Monitory Union Protocol on November 30, 2013 in Kampala Uganda, by the five EAC Heads of State, the Council of Ministers has many times discussed how to implement this signed protocol. Arguments have been tabled some saying that the 10-year roadmap should guide the implementation process others preferring to have macro-economic issues among EAC Partner States to be converged first. Why Financial Market integration? The very first motive for Financial Market integration is one that explains the origins of monies in human societies: the demand for a means of exchange of goods and services that breaks the double coincidence of wants constraint of the barter system. In this regard, two or more countries willing to promote bilateral trade could initiate monetary integration in order to reduce uncertainties on the bilateral exchange rate of their currencies, and secure settlements among cross-borders commercial partners. More often, as in the case of the EAMU, monetary integration is a part of a more global aim, regional economic and political integration. Therefore, from the simple motive of trade promotion, to the high vision of a single political area, monetary integration may take various forms; a clearing arrangement, a payments union (this form reinforces the clearing arrangement with medium-term credit facility for balance settlements), a reserve pooling arrangement, and subsequently a complete monetary union. It is important to note that all EAC Partner States share a clear mind that a Monetary Union will ease cross border business and help in advancing...

EAC records vital moves in 2014

East African Community (EAC) partner states made significant progress in furthering regional integration during 2014. The EAC Secretary General, Dr. Richard Sezibera said, the EAC made rapid strides by ratifying and implementing several protocols and agreements. “The Single Customs Protocol has been properly implemented in the northern and southern corridors,” he told a news conference at the EAC’s Arusha headquarters last week. The northern corridor runs from the Kenyan port city of Mombasa to Ugandan capital Kampala, before continuing on to Rwandan capital Kigali. The southern corridor runs from the Tanzanian port city of Dar es Salaam to Burundian capital Bujumbura and Kigali. Briefing the media on the EAC’s achievements in 2014 and the way forward, Dr. Dr.Sezibera said the partner states had introduced a ‘single window’ at the two ports, which are the two main entry and exit points to the region. He said member states had also introduced an electronic cargo tracking system. “All documentation and transactions regarding the movement of goods are done at one point in order to reduce business costs and time spent,” he said. “By implementing the Single Customs Protocol, roadblocks and other non-tariff barriers have been reduced significantly within the entire EAC region,” he said. The Secretary General said during the 2014/15 financial year, member states have invested in major road and rail projects. Dr. Sezibera said, “While Tanzania, Rwanda and Burundi are investing in central railway corridor projects, which will also connect the region to the Democratic Republic of Congo (DRC), Kenya...

Tanzania: Architects meet to discuss stance on local market

ARCHITECTS in Tanzania will today decide on whether or not to open the local market for other players in the East African Community (EAC), through the Common Market Protocol's Mutual Recognition Agreement (MRA). Tanzania is the only country in the region that is yet to ink the agreement. Four of the EAC member states namely Kenya, Rwanda, Uganda and Burundi signed the MRA way back in 2011 and thus allowing architects in those countries to practise their profession within the four countries, without subjecting them to further examination. Speaking at a news conference in Dar es Salaam yesterday, the President of Architects' Association of Tanzania (AAT), Architect Mbaraka Igangula, said members of the professional body will vote to decide if the country should sign the pact or not. When the EAC Common Market Protocol was introduced in June, 2010, it emerged that the architectural work was not among the professions the country opened to other EAC members. Tanzania did not ink the agreement then and promised to sign later. Asked on whether the AAT had conducted any study to ascertain whether the local players would lose or gain through the arrangement, he admitted that there was no research that was conducted regarding the matter. "There is no study which has been conducted but there are still fears among local architects that if we open our boarders we will lose the market to our counterparts in the region." "There will be a seminar in Morogoro tomorrow (today) in which experts from...

East Africa to unveil new machine readable passports

New machine readable East African Passports that will also allow holders to travel around the world, will be unveiled next November and start to be issued to citizens of Tanzania, Kenya, Uganda, Rwanda and Burundi shortly after. The new state-of-the-art electronic EA travel documents are to be officially launched by the five Heads of State during their forthcoming summit in Arusha on 30, November 2015, according to the Secretary General of the East African Community (EAC), Dr Richard Sezibera. The now fully upgraded new EAC passports have been made to fully comply with International Civil Aviation Organization (ICAO) standards, which means they can easily replace national passports among the residents of the five East African countries. The ICAO standardises and publishes Doc 9303, Machine Readable Travel Documents, which form the basis for the technical standard for machine-readable passports worldwide. Textual form is written as strings of alphanumeric characters, printed in a manner suitable for optical character recognition. Previous details of the applicant for the EAC passport are to be legible through computers while the signatures and holders' photographs will be acquired and digitally stored in both regional and international database. The old model of the EA passports introduced nearly a decade ago by Tanzania, Kenya and Uganda before the joining of the Rwanda and Burundi to the EAC four years ago, has the holder data typewritten or hand written on it. The old travel document being phased out now was meant to simply ease border crossings within the three member...

COMESA-EAC launch roundtables for consolidating regional stability through peaceful election in Burundi

The East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) have this morning jointly launched Round-Tables for Consolidating Regional Stability through Peaceful Elections in the Republic of Burundi at the Royal Palace Hotel, in Bujumbura, Burundi. Themed Peaceful Elections in Burundi for Regional Integration, the COMESA-EAC Roundtables are joint dialogue initiatives/activities geared towards promoting a peaceful environment for elections, prevent elections-related violent conflict and support a smooth transition during and after the 2015 elections in Burundi. Launching the Roundtables, the First Vice President of the Republic of Burundi, HE Prosper Bazombanza commended the EAC and COMESA Secretariats for organizing the important dialogue roundtables at the right time when Burundi was heading towards General Elections from May 2015. The First Vice President reiterated the region's a firm desire to see democratic, peaceful and stable elections in the Partner States and commended the two Regional Economic Communities for the role they have played and continue to play in supporting the consolidation of democracy, peace and stability in Burundi. The First Vice President welcomed the inclusive roundtable as it gave the Barundi people another opportunity to share experiences, to dialogue on the pertinent issues, and to outline the initiatives that should be taken by various stakeholders as the election approaches “in order for us to achieve the goals we want”. “It goes without saying that it is the values of dialogue and inclusion that are of the essence during this period, and which will enhance reconciliation efforts and...

Norway, East Africa in talks for free trade agreement

Norway and the East African Community (EAC) member states are set to hold exploratory talks on a comprehensive free trade agreement, a Norwegian diplomat said on Thursday. Norway's Ambassador to Kenya Victor Ronneberg told Xinhua in Nairobi that Norway and East Africa currently have a trade pact that will expire in 2021. "Both parties have expressed interest to have a trade deal along the lines of the Economic Partnership Agreement that has been signed between the European Union (EU) and the EAC," Ronneberg said during a courtesy call to the Safi International Kenya. Norway is among the European nations such as Switzerland, Liechtenstein and Iceland that are not members of the EU. They are members of the European Free Trade Association (EFTA). The ambassador said the current trade deal between EFTA and Kenya, Uganda, Tanzania, Burundi and Rwanda (EAC states) offers products and service from either regions limited access to each other markets. "However, EAC products will not continue to access Norwegian markets if they graduate to become middle income states," he said. According to the envoy, the talks will take place in phases. Ronneberg said the level of trade between Kenya and Norway remains way below the potential. Data from the Norwegian Embassy in Kenya indicates that the Nordic nation provided 4 million U.S. dollars in aid to Kenya in 2014. "Most of the funds were used to assist Kenya to implement its new constitution as well as promote gender equality," said Ronnerberg, noting that Norwegian investors are increasingly...

EAC made inroads in 2014: Chief

East African Community (EAC) partner states made significant progress during 2014 in terms of integration by ratifying and implementing several protocols and agreements, the regional grouping's secretary-general has said. "The single customs protocol has been properly implemented in the northern and southern corridors," Richard Sezibera told a Tuesday press conference at the EAC's Arusha headquarters. The northern corridor runs from the Kenyan port city of Mombasa to Ugandan capital Kampala, before continuing on to Rwandan capital Kigali. The southern corridor runs from the Tanzanian port city of Dar es Salaam to Burundian capital Bujumbura and Kigali. Briefing the media on the EAC's achievements in 2014 and the way forward this year, Sezibera said the grouping's five member states had introduced a "single window" at the two ports, the two main entrances to the region. He added that member states had also introduced an electronic cargo tracking system. "All documentation and transactions regarding the movement of goods are done at one point in order to reduce business costs and time spent," said Sezibera. "By implementing the single customs protocol, roadblocks and other non-tariff barriers have been removed or reduced within the entire EAC region," he asserted. The EAC chief went on to note that, during the 2014/15 financial year, member states had invested in numerous road and rail projects. "While Tanzania, Rwanda and Burundi are investing in central railway corridor projects, which will also connect the region to the Democratic Republic of Congo (DRC), Kenya is engaging in a standard gauge...

Fairness should guide East Africa integration

The East African Community (EAC) is a great idea that has borne much fruit and is probably destined to go far. After the unfortunate collapse of the original EAC in the 1970s, the bloc was revived by regional leaders in the 1990s and arguably remains one of the rare achievements of the much-maligned Kanu regime. With time, citizens of the now five countries have come to appreciate the benefits of having the bloc. Interestingly, even a perceived reluctant integration candidate like Tanzania has grown to be Kenya’s most important trade partner with locals especially in the north of the country benefiting immensely from the market provided by Nairobi city. However, the bureaucrats perhaps with the connivance of politicians, do not see the inevitable: that you cannot stop the progress of the economic bloc, even if you were to delay it with a raft of administrative or non-tariff barriers (NTBs). This is because in a voluntary bloc, reciprocity is the driving principal. From Tanzania blocking Kenyan tour vans from accessing Tanzanian game parks to Kenya—in apparent retaliation—blocking Dar buses from dropping tourists at the Jomo Kenyatta International Airport (JKIA), we have seen it all. None of them is wrong or right: there is nothing like free lunch in a bloc though. Yesterday, we reported that regional countries are negotiating to allow airlines to operate freely from all countries without restricting carriers from emanating flights from the country of origin. That will probably cut the rent enjoyed by the likes of Kenya...

Report pushes for levy on imports in regional blocs

Regional blocs including the East African Community (EAC) should introduce a levy on imports to help self-finance its organs, a new report suggests. The regional entities have depended solely on contributions from members yet a number of countries have not been meeting their obligations. A report by the African Capacity Building Foundation (ACBF), a financier of research institutions in Africa for over a decade, said a country facing an economic crisis or catastrophe finds it difficult to pay dues. ACBF said integration schemes such as EAC and the Common Market for Eastern and South African have copied the Eurozone model of regional groupings that depend on member contributions. “A funding mechanism that combines national contributions with independent revenues, such as import levies, would go a long way to helping African regional economic communities become financially independent,” said the report. However, analysts said clarity would be needed on how such a tax is to be implemented because some of the countries may fail to co-operate since the blocs do not have tax collection machinery. “It is very good to have an alternative method of financing regional initiatives such as those we are party to. But the tax also has to be collected by someone. Who is it that would collect it?” asked Joseph Kieyah, principal policy analyst at the Kenya Institute of Public policy Research and Analysis. Prof Kieyah said the levy alone would not achieve much unless there are willing participants in regional integration schemes. He said the citizenry and...