ELECTRICITY supply and infrastructure for trade facilitation will get one billion US dollars (over 1.7trillion/-) in the next two years from the World Bank and African Development Bank, visiting US Treasury Secretary Jacob Lew has said. Addressing US and local business leaders in Dar es Salaam on Tuesday evening, Mr Lew said President Barack Obama's government is committed to improve East Africa's competitiveness. He pointed out that the US is a leading contributor to the World Bank and AfDB that are both financing infrastructure and policy reforms across the East African Region. "Combined, the two banks lend Tanzania about one billion US dollars per year, across a breadth of sectors. Over the next two years, they will commit about one billion US dollars to power and trade infrastructure projects," the US Treasury Secretary noted. He said the World Bank and Trademark East Africa, which is also financed by the US and other donors are co-investing in a 565 million US dollars (over 964.9bn/-) project to improve infrastructure and operations at Dar es Salaam Port. "One cannot talk about trade in Tanzania without thinking about the port of Dar es Salaam. I stopped by the port and saw first-hand the efforts to improve port operations and to support the region's rapid trade growth," Mr Lew stressed. Trade Africa and Power Africa are two US-sponsored initiatives aimed at improving the environment of doing business in Africa. Supporting the infrastructure that helps move the goods to and from the port more efficiently and...

Trade between Ireland and Africa is expected to reach €24 billion by 2020 as more than one in ten Irish chief executives look to target business opportunities in the region. Speaking at the opening of the Africa Ireland Economic Forum in Dublin on Thursday, Minister for Development and Trade Promotion Seán Sherlock said exports from Ireland have increased by approximately 25 per cent in recent years while imports from sub-Saharan African countries have doubled. Total merchandise trade between Ireland and Africa increased by 35 per cent from 2010 to 2013, from just over €1.7billion to over €2.3 billion. In addition, total services trade in 2012 was €1.7 billion. Mr Sherlock told delegates at the forum of the huge potential that Africa presents for Irish Businesses, with growth rates across Africa averaging 4.8 per cent for 2013 and with projections for 2014 at 5.1 per cent. “Africa collectively is on the rise. It is important now that we grasp opportunities and have the vision to see where they can take us and work toward developing strong and equal trade and investment partnerships with African countries,” he said. “In the last three years we have seen an increase of 25 per cent in Irish goods exports to sub-Saharan Africa and 27 per cent with the entire continent. In return we have seen a more than doubling of our imports from sub-Saharan countries and an increase of well over 45 per cent with the entire continent. Improving our people-to-people links and encouraging initiatives...

The COMESA-EAC-SADC Tripartite Free Trade Area (FTA) would be launched during the Tripartite Summit of Heads of State and Government in mid-December 2014, in Egypt, taking into account the fact that the majority of the Tripartite Member/Partner States have made ambitious tariff offers and were agreed on Rules of Origin to be applied in the interim whilst further work continues on product specific Rules of Origin. This is the outcome of the Tripartite Sectoral Committee of Ministers meeting on trade held in Bujumbura, Burundi on 24 and 25 October 2014. Mauritius was represented at this meeting by the Director, International Trade Division, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr Assad Bhuglah. The meeting also agreed on the need for the expeditious formulation and implementation of a regional industrial programme in order to enable the Tripartite FTA realise inclusive and equitable growth. The Tripartite FTA encompassing 26 Member/Partner States from the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Community (SADC), with a combined population of 625 million people and a Gross Domestic Product (GDP) of USD 1.2 trillion, will account for half of the membership of the African Union and 58% of the continent's GDP. The Tripartite FTA, popularly known as the Grand Free Trade Area, will be the largest economic bloc on the continent and the launching pad for the establishment of the Continental Free Trade Area in 2017. The Tripartite FTA will offer significant opportunities for...

GLOBAL - Negotiators from the EU and the East African Community (EAC) have finalised a new comprehensive Economic Partnership Agreement (EPA) between both regions. The agreement will provide legal certainty for businesses and open a long-term perspective for free and unlimited access to the EU market for products from Burundi, Kenya, Rwanda, Tanzania and Uganda. "The East African Community region stands out for its dynamism, and ambition to develop as an integrated region. The comprehensive partnership agreement we have just reached is the best way in which we can support EAC's aspirations", said EU Commissioner for Trade Karel De Gucht. "We have concluded two other development-oriented partnerships with African regions this year. It's a source of my personal satisfaction also to see East Africa benefiting from the opportunities that Europe wants to offer. I hope that these EPAs will be signed and implemented soon." In 2013, total Trade between the EU and the East African Community amounted to €5.8 billion. The EU imports from the EAC are worth €2.2 billion and consist mostly of coffee, cut flowers, tea, tobacco, fish and vegetables. Exports from the EU into the EAC, mainly machinery and mechanical appliances, equipment and parts, vehicles and pharmaceutical products, amount to €3.5 billion. Source:: The Fish Site

NAIROBI, Kenya, Oct 27 – Trade Mark East Africa (TMA) and the Kenya Tourism Federation (KTF) have signed a Sh9 million grant that seeks to create awareness on the regional Single Tourist Visa and the use of Identity Cards in Kenya, Uganda and Rwanda. The Federation’s CEO Agatha Juma says the initiative will focus on encouraging the players in the tourism sector like tour operators and travel agencies to take advantage of the two developments and help grow the region’s tourism sector. “You realise that even though it is a good thing that has been done, it has not been well implemented because people are not aware of the opportunities. That is why we came back to Trade Mark East Africa and requested them to work with us and create this awareness,” Juma said. She laments that close to one year since the two documents were launched, most players in the sector and even citizens in the region are still unaware of the development. The federation plans to work with the industry and have them use the single visa as a promotional tool to EAC as a tourist destination and not Kenya alone. They will also be encouraged to market regional travel using IDs. “With this, we could for example go into Uganda and get people to travel to Kenya on holiday without needing passports. Most people say the process of going to get a passport is long. But people need to know and be convinced that with your ID...

The white smoke came on October 14 when Foreign Affairs PS announced on Twitter that ‘‘we have a deal.’’ The five East African Community (EAC) states had waited with bated breath for more than five months as the technocrats negotiated the all important trade deal with Europe. What a relief that was! Europe is still very important to African economies. It is worth noting that 24 per cent of our exports go to Europe while 95 per cent of our horticultural flowers also end up somewhere in the continent. This is made possible by trade arrangements between the two nation-groups established historically from as early as early as 1975 to date. Economically speaking, Europe is a significant trading partner. It is the word ‘partner’ that they don’t realise is significant in the economic agreement. The delay in signing the Economic Partnership Agreement (EPA) was occasioned by EU’s rejection of three items fronted mainly by Kenya — export taxes, subsidies and the relationship between the Cotonou Agreement and the EPA. The Kenyan government wants export taxes imposed on goods where they feel the country have capacity for value addition to discourage all the raw materials from going abroad. Europe felt there was no need for such as they needed the raw materials. EAC further wanted an expanded band of subsidies, something the EU did not approve of. Further, there was tête-à-tête around the longevity of the Cotonou agreement. In the end, however, the wishes of EAC were met after the larger...

Oct 27 (Reuters) - Construction of a Chinese-funded port and special economic zone in Tanzania worth at least $10 billion will start in July 2015, the president's office said in a statement on Monday, for the first time setting a start date for the delayed initiative. Tanzania aims to build a huge port at Bagamoyo, 75 km (47 miles) north of commercial capital Dar es Salaam, the site of the country's main port, where shippers complain of congestion and inefficiencies. A construction agreement for the port and associated zone was signed on Sunday and follows a framework deal signed last year. An official said a start date for building work had taken time to set because of other negotiations about infrastructure to link the port to national transport networks. The planned Bagamoyo port, new investment in Dar es Salaam and other spending on roads and railways are part of Tanzania's efforts to become a transport hub that could challenge the dominance of Mombasa in neighbouring Kenya. "The Tanzanian government signed a memorandum of understanding with two major international institutions ... to develop the Bagamoyo economic zone," Tanzania's presidency said in a statement, adding construction would start on July 1 next year. Tanzania said it signed the infrastructure development agreement with port developer China Merchant Holding International (CMHI) and Oman's biggest sovereign wealth fund, the State General Reserve Fund (SGRF). Tanzanian President Jakaya Kikwete witnessed the signing of the agreement in Shenzhen, southern China. A framework agreement between Tanzania and the...

The vision by East African heads of state to ensure one trading bloc for the region is certainly welcome. Like the European Union, East Africa needs to come together to form a more formidable bargaining bloc on trade issues. It would also improve the region’s economies. One bloc or territory will increase markets both regionally and internationally for export and import, which would lead to better living standards for citizens. Whereas the mooting and reviving of the East African Community (EAC) began in earnest in mid-2005, the clamour to cover more ground has been most vigorous the last one year. Calling rates and travel documents have been harmonised, and we are on the road to creating a single visa for tourists. In the customs department, East African countries are racing to achieve a single customs territory (SCT) and a customs union. This is where my concerns lie. Imminent danger The procedure to achieve the vision of a single customs territory as it is now may negatively affect our country’s economy; our security and goods control are in imminent danger. Giving other member countries the express authority to enter goods through their systems, with their customs agents generating the documentation, is not only risky for the country, but also gives undue advantage to agents in the importing countries to take all business at will. The immediate consequence of the roll out of this system is that more than 60 per cent of the business initially done by Kenyan agents has been...

About two weeks ago, Presidents Paul Kagame of Rwanda and Uhuru Kenyatta of Kenya opened a two-day East African Business Summit in Kigali, where they unequivocally called on all EAC member states to open up their borders to allow free movement of labour, goods and capital. The leaders were quoted in the media referring to the continued fear of possible loss of jobs and opportunities by some nationals as “primitive and unfounded”. President Kenyatta is also cited as urging that “Our people must be East African, we need to open up borders for our citizens to move freely.” President Kagame is quoted as saying: “To increase trade, it is not only as a result of exporting raw materials but on [the] basis of value addition. For the rest of the world we sell raw and unprocessed materials. This is primitive, in the same way people are looking at not allowing free movement of labour.…” As someone who has already started benefiting from open borders, especially between Rwanda, Uganda and Kenya, I cannot agree with the two presidents more. To start with, unlike in the past, it’s possible for nationals of Rwanda, Uganda and Kenya to travel on an identity card withing the three countries. This is profoundly beneficial to the less fortunate citizens who either don’t have a passport or cannot afford one as they can easily travel to any of the three countries without difficulty. With regard to free movement of labour, it’s possible for some to fear loss...

A committee of ministers from three trade blocs covering East and Southern Africa has agreed on a common free trade area, which will be officially announced in mid-December. The tripartite FTA will bring together the East African Community, Common Market for Eastern and Southern Africa and the Southern African Development Community, forming the largest trade bloc in the continent. In a statement yesterday, the Lusaka-based Comesa Secretariat said the ministers arrived at the decision on Saturday and heads of states from the member countries will endorse the move at a summit in Egypt. “The decision to launch the tripartite FTA took into account the fact that the majority of the member states have made ambitious tariff offers and were agreed on Rules of Origin to be applied in the interim whilst further work continues on product specific rules of origin,” said Sindiso Ngwenya, the Comesa Secretariat secretary-general, who also chairs the tripartite task force. The tripartite FTA – to be known as the Grand Free trade Area – will bring together 26 countries with a combined population of 625 million people and an estimated Gross Domestic Product of $1.2 trillion (Sh107.21 trillion). The trade area also brings together more than half of the 54 African countries. A continental free trade area is eyed in 2017. “The Tripartite FTA offers significant opportunities for business and investment ... and will act as a magnet for attracting foreign direct investment,” Ngwenya said. He said businesses will benefit from improved and harmonised trade regimes,...