Integration efforts within the East African Community (EAC) received a significant boost at the end of November. The multilateral organisation stated that it will loan the East African nations $1.2bn to improve inland waterways and ports in Kenya and Tanzania, as part of efforts to boost integration in the region. More specifically, the funds will be used to revive inland waterways on Lake Tanganyika and Lake Victoria, and improve handling capacity and efficiency at the Mombasa and Dar es Salaam ports. The five-nation EAC, which comprises Kenya, Tanzania, Uganda, Rwanda and Burundi, is undertaking a substantial infrastructure investment programme while also deepening policy integration and reducing barriers to trade. In a recent 2015-25 strategy paper, the bloc stated that it needs at least $68bn, and possibly up to $100bn, over the next decade to develop roads, ports, railways, transmission lines and oil & gas infrastructure. Looking at the financing of the ambitious investment programme, in addition to the World Bank’s recent commitment, the European Union (EU) has also recently stated that it is prepared to support projects worth up to $750m to improve the region’s infrastructure, while Trademark East Africa also pledged $350m to expand ports, one stop border points and road connectivity. The EAC is already in talks with development partners, including the African Development Bank, European Investment Bank, as well as countries like China and India, as potential sources of funding. Turning to China, political leaders in East Africa are looking east in an attempt to make use...

A global audit, tax and advisory firm will spend about Sh200 million to deepen its presence in the East African Community (EAC) market in the next one year. The US-based Grant Thornton International Ltd, already with offices in Kenya, said it will soon open offices in Tanzania, Uganda and Rwanda to assist investors set up business in the region. The firm’s Business Development and Markets Global Leader Gernot Hebestreit said the announcement is informed by the increased local and international investments in the region, mainly Kenya. Hebestreit noted that the region is receiving a lot of attention from foreign investors - prompting them to set up more offices as well as employ quality human resources to offer logistics services. During the launch the East African Advisory Services Initiative in Nairobi, Hebestreit observed that bureaucracy and red-tape, though these have diminished lately, are still among the key challenges scaring away potential investors. The initiative will handle consultancy and advisory services for clients seeking to expand across the EAC region. “We have a lot of faith in the fast-growing economy of Kenya and EAC and that is why we are expanding our footprint in the region,” said Mr Hebestreit. He, however, noted that the investment climate in Kenya and the region continues to be haunted by corruption, infrastructure and high cost of power. Investment climate Hebestreit said investors will be assisted to register their businesses as well as deepen their understanding of the region’s investment climate. “Our focus is to offer a...

Editor, I presume that the East African Community (EAC) is following the footsteps of the European Union (EU) in its aim for integration. My request is that sometimes it good to stop and take a breath. This would be an chance to understand where we are going and whether we are all still agreed with the final objective. As an oldster, I would like to remind all concerned that if it were not for the unfortunate events of the 1970s, we would be far ahead of the EU even now! Although the present goal is to have a common currency within 10 years, I do not see this happening. The Common Market is still only in the early phases of implementation. As a notable point, let us recall that the EU Single Currency is only 14 years in existence. But the process to get there took well over 20 years. Perhaps the EAC should begin taking smaller morsels and be sure that we can digest it, rather then big chunks that ask too much of our circumstances. This does not mean I do not support the EAC. I believe it is the only entity that will ensure stability and a better chances of faster economic growth. But nothing wrong in being cautious. J. Kadoma Kampala, Uganda Source: East African Business Week

NAIROBI, Kenya - The World Bank recently agreed to boost agriculture in East African with $1.2 billion. This support is additional to large ongoing individual country programs. Besides paying for better infrastructure, the projects being funded are expected to improve the competitiveness of the East African Community (EAC) states. Philippe Dongier, the World Bank Country Director for Burundi, Tanzania and Uganda, said: “We are partnering with the EAC governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC.” He was speaking during the EAC Heads of State retreat in Nairobi. He said: “We are preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika, and to enhance the capacity and efficiency of the two main EAC ports on the Indian Ocean: Dar-es-Salaam in Tanzania, and Mombasa in Kenya.” He added: “We will also invest in specific transport links to better connect landlocked countries (Burundi, Rwanda, Uganda and South Sudan) to the Northern and Central corridors." This he said will improve access to the ports of Mombasa and Dar-es-Salaam. The private sector needs to support the International Finance Corporation (IFC) and MIGA (the guarantor). The World Bank Group will provide additional resources for regional infrastructure through market-driven private sector financing and guarantees. The financing will contribute to the EAC states’ planned investments in the next three to seven years. The Nairobi retreat on Infrastructure Development and Finance focused on policies and...

In a bid to improve ports and inland waterways in Kenya and Tanzania, the World Bank is to loan US$1.2 billion to East Africa. According to Reuters, the investment will be used to integrate the region by improving the handling capacity and efficiency of Dar es Salaam Port in Tanzania and the Port of Mombasa in Kenya. . The five-nation East African Community, which also comprises Uganda, Rwanda and Burundi, is working to prepare cross-border infrastructure plans in a bid to attract more investors. The World Bank said in a statement: "The World Bank Group's investments and support to reforms anticipate the boom of extractives in the region and will facilitate easier movement of people, goods and capital." The bank added that the funding was to help the region’s investment plans over the next 3-7 years. A European Representative, Filiberto Sebregondi, said that the EU was ready to support projects worth up to $750 million. Source: Port Technology

Chief executives of microfinance institutions in the region will next week, December 8-9, converge in Kigali to discuss ways on how to improve the sector in the East African Community (EAC) bloc. The East African Microfinance Network (EAFMNET) CEO roundtable will be the first of its kind. It will be held under the theme, "The role of microfinance in EAC economic integration." EAFMNET is a network comprising of microfinance associations from Rwanda, Uganda, Tanzania, Burundi and Kenya. The Association of Microfinance Institutions of Rwanda (AMIR) is the current EAFMNET chair and event host. Peter Rwema, the director general in charge of programmes at the Association of Micro finance institutions of Rwanda (AMIR), said the forum will be used as a platform for financial experts and the sector's top managers to share experiences, information and knowledge, especially on how to tackle challenges threatening the growth of sector in the region. The sector faces challenges, including non-performing loans, access to finance, lack of skills and product innovation. Rwema said the meeting is an opportunity for the country's microfinance sector to learn and share experiences on best practices and how to up their game. Damascene Hakuzimana, the in charge of communication and advocacy at AMIR, said the meeting will attract over 300 delegates from Uganda, Kenya, Tanzania, Burundi and South Sudan. There are about 416 microfinance and Umurenge Saccos in Rwanda.The conference will be officiated with by the Minister of East African Community Valentine Rugwabiza. Source: The New Times

A proposed 10-year investment strategy for priority infrastructure projects in the East Africa Community to tackle the existing gaps received backing during the just-concluded EAC Heads of State Retreat on infrastructure development and financing. The summit, convened over the weekend in Nairobi, Kenya, endorsed the blueprint and directed the Council (of Ministers) to mobilise resources for implementation. Held under the theme, "Supporting the implementation of the Common Market through the development of efficient infrastructure networks and intermodal transport systems in the EAC," the summit was chaired by Kenyan Deputy President William Ruto. Rwanda's delegation was led by Prime Minister Anastase Murekezi. The infrastructure projects, which include railway, energy, ports and harbours, and information and communications technology, among others, are expected to cost at least $100 billion, according to a communiqué from the EAC Secretariat. The endorsement comes at a time when the region is in negotiations with development partners, including the World Bank, the African Development Bank, European Investment Bank as well as individual countries, particularly China and India, in efforts to raise the required resources. At the retreat, several development partners pledged to support specific infrastructure projects. Major pledges: During the summit, the World Bank pledged $1.2 billion toward infrastructure development and improved competitiveness of EAC region, while Trademark East Africa pledged $350 million to support regional infrastructure for ports, one stop border points and road connectivity. The summit further called for the fast-tracking of the development of regional capacities to support the implementation of priority infrastructure projects and...

VENTURES AFRICA – East Africa, a region recognized as a successful global location for mobile payments and a thriving online space, is embracing technology advancement as part of its growth plan for diverse sectors. The newly recently launched East Africa Single Visa is intended to scale up tourist arrivals in EAC member states; Kenya, Uganda, and Rwanda. This multinational-travel certificate which costs $90 will grant tourists a 90-day validity period with no room for extension. Although termed as ‘long-haul destination’, one cannot stop wondering why, with massive cultural and natural resources, Africa continues to lag behind in recorded tourist visits. According to a report by the World Travel and Tourism Council, of the one Billion tourists who travelled in 2012, only 50 million were destined for Africa, where East Africa only managed to scoop 5 million (1 percent) of the bound-for-Africa travelers. “We need to re-package ourselves” quipped Waturi Matu-Coordinator for East African Tourism Platform in an interview with Jovago.com, a leading online hotel booking platform in Africa. Ms. Matu explains that this revamping process would start with the leadership, down to stakeholders and the African Media, “Africa has suffered blanket misconceptions for a long time. We are yet to carry ourselves from the gripping grief of the term ‘dark continent’. Africa needs to tell her own story, and let the world know that beyond the crisis (that exist in every other nation) there exists vast stretches of unique culture, wildlife, flora and fauna, business opportunities and untapped resources.” Having...

Efforts by the Uganda Export Promotion Board (UEPB), together with Traidlinks, to build the competitiveness of 82 small and medium enterprises (SMEs) to penetrate the East African market have started to yield results. In the first eight months of this year, the companies have generated an aggregate of $4.6m, according to Daniel Karibwije, UEPB’s director, Trade Promotion and Public Relations. Since 2009, through an export development initiative dubbed ‘Market Linked’, the SMEs have been connected to buyers from the different East African Community member states with a mission to have Ugandan products penetrate the regional market. “Up to 82 companies have been on sales missions within the EAC member states in addition to taking part in international marketing trainings. Through this programme, over 376 buyers have been identified in western Kenya, Rwanda, northern Tanzania and Burundi,” Karibwije said. “At least 755 business appointments have been set up for Ugandan companies to discuss business with potential buyers. On average, each participating company has had 11 appointments with potential buyers in the market across the eight group sales missions that have been held.” According to Karibwije, about 50 per cent of these companies have now started to export to the other areas of the region while others are making adjustments in order to do the same. In order to coordinate efforts and promote sustainable trade, an alumni club has been established to foster peer-to-peer learning and promote competitiveness. Last Friday, the club had its third market-linked alumni meeting, which was presided over...

Regional business council, with assistance from ITC, successfully pushes for implementation of services trade liberalization measure Cooks, accountants, and other services-sector workers in East Africa will soon be able to easily work across national borders in the region, thanks to the approval of a position developed by the East African Business Council (EABC), with assistance from ITC. Representatives of EAC member countries will meet in Nairobi, Kenya next week to negotiate textual changes to the EAC Common Market Protocol to reflect the agreement. ‘This is a major milestone for businesses in the East African Community, creating new opportunities,’ said Andrew Luzze, EABC’s Executive Director. ‘Once implemented the measure will also contribute significantly to the competitiveness of EAC services companies, which will as a result be able to compete more successfully in markets outside East Africa as well.’ The governments of Kenya, Tanzania, Uganda, Rwanda and Burundi had committed to phasing in services trade liberalization measures between 2010 and 2015, in line with the EAC’s Common Market Protocol. However, much of the liberalization has been thwarted due to differences in opinion among member countries on the ability of service providers from elsewhere in the EAC to work in their countries. ‘Without the temporary movement of people between countries, many services cannot be provided,’ Mr .Luzze said. As EAC member countries could not agree on how to overcome the deadlock, services liberalization has progressed more slowly than anticipated. While services trade growth has been impressive, there is a lot of potential left...