The level of optimism is high among co-operatives in East Africa, in light of the ongoing East African Community (EAC) Co-operative Societies Bill 2014 being pushed to be enacted into law. The bill, being advanced by the regional members of Eastern Africa Farmers Federation (EAFF), seeks to realise and enhance the engagement of the co-operative movement in the EAC integration process. According to the Trade, Industry and Cooperatives minister Amelia Kyambadde, Uganda is optimistic that the envisaged law is timely as the country is in the process of reviving and strengthening cooperatives to realise more benefits from cross-boarder trade. Co-operative movements were hit by challenges from the 1970s through to the mid-2000s, but the agenda is fast-gaining momentum and stimulating a lot of interest across the region. “The bill is attaining considerable support from all regional stakeholders, its intention is in the spirit of development, as it seeks to bond the scattered cooperatives across the region to work for a common good,” Kyambadde said during a recent interview. Key intentions of the bill The bill intends to harmonise national co-operative laws in the EAC partner states, and to provide a framework for co-operatives to exploit the EAC regional integration agenda. In a business sense, the bill considers boosting effort in helping members of cooperatives especially farmers to get a clear understanding of the EAC Common Market protocols which will, at the end, ease regional trade for the benefit of members. Kyambadde explained that the piece of legislation comes with development-focused...

NAIROBI, KENYA: Deputy President William Ruto has asked member states of the East African Community (EAC) to stop unnecessary suspicion that undermines the speedy integration of the region. Mr.Ruto urged member states to look at the bigger picture of integration as an instrument of progress. "We must go beyond petty issues, we must look at the bigger picture because we are going to be better together, he said." The Deputy President added, "We are better off together by creating a regional block that makes sense to any investor." He made the remarks at the Kenyatta International conference Centre (KICC) when he represented President Uhuru Kenyatta in officially opening the 3rd EAC Heads of state retreat on Infrastructure Development and Financing. The Deputy President pointed out that the imperative driving regional integration for the East African Community is the urge to achieve faster development of the peoples and countries in the region in the face of intense global competition. Mr. Ruto said that East African countries should position themselves in a way that makes them competitive by putting in place necessary infrastructure and challenged member countries to open their borders for trade. "We should develop infrastructure that goes beyond borders of individual countries to benefit from economies of scale," he said. He stated that the next area of focus would be agro-processing and value addition so that farmers in the region get value for their money. As we look into the future, we shall be focusing on developing infrastructure that supports...

The World Bank has pledged a 1.2 billion US dollar loan to East African nations to improve integration within the region. The financier also vowed to support infrastructure development and to boost the competitiveness in the East African Community (EAC) by providing additional resources for regional infrastructure in the next three to seven years. “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," said Philippe Dongier, World Bank country director for Burundi, Tanzania and Uganda. "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.” The funds will also be used to invest in particular transport links to enhance the connection of landlocked countries Burundi, Rwanda, Uganda and South Sudan to the Northern and Central corridors. This will improve access to the ports of Mombasa and Dar es Salaam as well. In conjunction with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), the bank said it will focus on reforms and policies crucial to the development of regional integration through enhanced efficiency of infrastructure investment and financing. Oumar Seydi, IFC director for Eastern and Southern Africa, said, “Working with private sector partners, IFC is already investing more than 1.0 billion...

The World Bank has said it will provide $1.2 billion to support infrastructure development and improve the competitiveness of the East African Community (EAC) states. It will also through private sector affiliates - International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) - 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. This support is additional to large ongoing individual country programmes. “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,” said World Bank Country Director for Burundi, Tanzania and Uganda Philippe Dongier. He was speaking during the EAC Heads of State summit on Infrastructure in Nairobi. Inland waterways The retreat was officially opened by Kenya’s Deputy President William Ruto. Participants included Heads of States’ representatives, ministers, chief executives of development banks and regional economic communities, and private sector leaders. Mr Dongier said World Bank is 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. “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 way improving these countries’ access...

Competition on a level playing field is good for the consumer. It should also be good for the producer, because it keeps you on your toes and guards against complacency. However another unfortunate factor that encourages complacency is government protection. A favourite means of this protection, is taxation. Behind this wall, companies can hide their inefficiencies in production and pass over the cost to consumers with higher prices. If different taxes are levied on a different basis or different rates across the EAC, this produces obstacles to the free movement of goods and services. Ultimately, this state of affairs frustrates the fundamental objectives of a Common Market. Harmonization of regional taxes will give the EAC a big lift because businesses will find it much easier to operate across borders when everyone is paying the same rate.. According to the EAC Common Market Protocol, ‘The Partner States undertake to progressively harmonize their tax policies and laws to remove tax distortions in order to facilitate the free movement of goods, services and capital and to promote investment within the Community’. The concept of a Common Market involves the elimination of all obstacles to EAC trade. This is involves a process of eventually merging the national markets into a single market and creating a genuine internal market. The EAC Common External Tariff (CET) regime of 2004 was a major step in having harmony on import duties. However the national taxation policies play a far more sensitive role in leveling the playing field for...

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...

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...

A ONE Stop Border Post at Holili in Moshi, Kilimanjaro Region is expected to start operations in January, next year after repairs of ICT network problems, project financiers, TradeMark Africa, has revealed. The TMA Director of Customs and Integrated Border Management, Mr Theo Lyimo, told the 'Daily News' on Tuesday that repair work of the ICT network would be completed by mid-next month before operations at the post begins in January. "We tested the ICT networks and discovered that the cabling was faulty and need to be re-done. A contractor will be at the site soon to carry out the work which should be over by mid-December," he said in an e-mail communication. "Border agencies should be able to relocate to the new facility in January and the OSBP should be operational from mid- January." The US$ 5.7 million stateof- the-art infrastructure has been set up by TradeMark Africa at Holili to ease clearance of transit goods and passengers at the Tanzania and Kenya border. Another US$ 6.7 million infrastructure at the Taveta border post on the Kenyan side is on final touches. Remaining works include paving of parking and by-pass road to Holili and will be completed by February, next year. Tanzania and Kenya have already signed a bilateral agreement to pave the way for the use of the Holili OSBP. The two countries opted for the bilateral agreement to guide operations of the project, instead of a legal framework because it was seen it would take a long...

UPGRADING of the Voi-Taveta road in Kenya is the latest hitch delaying the use of the Holili One Stop Border Post in Moshi, Kilimanjaro Region constructed to ease transit goods clearance at the border with Kenya. Tanzania and Kenya have already signed a bilateral agreement to pave way for the use of the $5.7 million state-of-the-art structure set up by Trademark East Africa at Holili on the Tanzania's side of the border with Kenya, in Moshi, Kilimanjaro Region. Another US$ 6.7 million infrastructure at the Taveta border post on the Kenyan side was on the final touches by mid this year. The TradeMark Africa Director for One Stop Border Posts, Mr Sjoerd Visser told the 'Business Standard' recently that the bilateral agreement was signed in July, this year but the use of the post has been delayed due to on-going construction of Voi-Taveta road to an all-weather tarmac road. The Kenyan government had signed a US$ 113 million loan facility with African Development Bank this year for the construction of the 110 kilometres road which links Kenya and Tanzania through Taveta and Holili border. Trademark East Africa is providing funding and technical support to facilitate implementation of the integrated border management systems at Holili and Taveta border posts. The idea is to improve efficiency by reducing the total average time it takes to clear cargo at the two border posts by 30 per cent which will contribute to reducing transport costs and increase intra-regional and foreign trade in East Africa....

Logistics in Africa is a menace, and firms that try to launch logistics businesses face a mamoth of hurdles from poor infrastructure to double insurance on both the goods and the machinery and the capex is way too high. East Africa is reported to have the highest freight and transport costs in the world; over 50% higher than the USA and Europe per kilometre. Indeed, transport costs for land locked countries in the region can be as high as 75% of the value of exports. Transit times have the most significant effect on exports and also result in firms having to carry higher levels of stocks making them less efficient. To solve this, a US$ 16 million challenge fund has been opened for innovators who can devise a strategy to crack the code into reducing the cost of transport and logistics in East Africa. The Logistics Innovation for Trade (LIFT) challenge fund will provide grants ranging from US$ 200,000 to US$ 750,000 to winning proposals from innovators from across the world but whose ideas will be implemented in East Africa. LIFT is managed by TradeMark Africa (TMA) Challenge Fund with funding support from UK-DFID; and seeks to trigger and introduce innovative approaches to tackling freight and transport costs in East Africa region. Successful LIFT project applicants will contribute to TMA objective of reducing transport time along the main East Africa transport corridors by 15% by 2016. TMA Senior Director, Business Competitiveness Lisa Karanja said, “Our desire is to see East...