Dar es Salaam: Tanzania has signed a Memorandum of Understanding (MoU) with a Coalition of Development Partners, including the World Bank, the United Kingdom’s Department for International Development, and TradeMark Africa for the development of the Dar es Salaam port. The agreement, which was signed yesterday in Dar es Salaam, will see development partners releasing $565million (about Sh800 billion) to facilitate the deepening and strengthening of berths 1-7, the dredging of the entrance channel and turning basin at the Dar port, the construction of a new berth and roll on-roll off terminal, and improvements in the spatial efficiency and operational effectiveness. World Bank Group Managing Director Sri Mulyani Indrawati witnessed the signing. The signing ceremony was also attended by Transport minister Dr Harrison Mwakyembe. Source URL: The Citizen

Tanzania’s trade account with China is set to balance within the next four years, the east African country Ambassador to China, Abdulrahaman Shimbo said on Monday, following an increase in investments and bilateral trade between the two countries.Shimbo said the trade balance projections are based on Beijing thrust to import more from Dar es Salaam and increase unconditional trade relations. “The existing trade surplus in China’s favour will be addressed in about four years, as China will import more goods from Tanzania, especially minerals, gas and agricultural products,” Mr Shimbo told reporters. He was reacting to rising fears about China’s long-term trade imbalance with Tanzania and its growing demand for raw materials. By the end of 2013, China had invested more than $2.5 billion in Tanzania, with nearly 500 Chinese companies doing business in the country. “This amount makes China the second largest investor in the East African nation, behind the UK,” the Ambassador noted. Source URL: Star Africa

Kenya, Uganda and Tanzania will from next week jointly collect custom taxes on sugar, dealing a blow to cartels involved in dumping of the commodity in the regional markets. The Kenya Revenue Authority said the three countries would trade in sugar under the Single Customs Territory (SCT) arrangement — which allows for joint collection of customs taxes by the EAC partners — starting September 15. “Duty shall be paid to the destination country before release of goods from the originating country,” Beatrice Memo, commissioner for customs services said Tuesday. Under the SCT deal that began on April 1, clearing agents with East African Community have been granted rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping. Importers of commodities covered under the SCT are required to lodge the import declaration forms in their home country and pay relevant taxes first to facilitate the export process. The tax authorities in the respective countries would then issue a road manifest against the import documents submitted electronically by the revenue authority of the importing country. Massive shortage Sugar industry regulators and tax agencies in EAC have been involved in frequent stand-offs over dumping of duty-free sugar within the region. The feud has mainly drawn Kenya against Rwanda and Uganda with the former accusing the two countries of abetting the malpractice that renders its own millers uncompetitive. At a meeting in Kampala in July Rwanda was...

KENYA and Tanzania will from Monday clear the first batch of goods under the Single Customs Territory on a pilot basis, the Kenya Revenue Authority announced yesterday. [caption id="attachment_3540" align="alignleft" width="300"]

DAR ES SALAAM, TANZANIA, September 10, 2014 /EINPresswire.com/ -- With the growth of African economies, the importance of ports as exit and entry points for commodities that are stimulating economic growth in the region is also rising. East African countries are undertaking port projects amounting to over US$23 billion allocated to new port developments, terminal infrastructure upgrades, and improving port procedures to meet the growing cargo needs. Presentations will be delivered by senior officials including Dr Enos Bukuku, Deputy Secretary General – Planning and Infrastructure, East African Community, Tanzania; Tau Morwe, CEO, Transnet National Ports Authority, South Africa; Sylvester Kasuku, Director General/CEO, Lamu Ports-South Sudan-Ethiopia (LAPSSET), Kenya; Fernando Couto, CEO, Port Nacala, Mozambique; and Tim Vancampen, CEO, Madagascar International Container Terminal Services, Madagascar, who will give insights into current and future port projects in their respective countries. “We’re witnessing an exciting and rapidly developing time for the port sector in East Africa,” says Tanatsiwa Mabeza, Conference Producer, IQPC South Africa. “It’s imperative that leading authorities, consultants, contractors and suppliers come together to discuss advanced engineering strategies that will support the government’s vision to transform East Africa into a global shipping hub.” An exclusive workshop on Doing Business in East Africa will be facilitated by Daniel Machemba, Executive Director-Secretary, Tanzania Chamber of Commerce, Industry and Agriculture, and Alex Kabuga, CEO, Kenya Trade Network Agency, Kenya to provide an understanding of the business environment in the region. Source URL: World News Report

Non-tariff barriers within the East Africa region are affecting regional trade, according to a recent study conducted by a regional think-tank. The East Africa Policy Centre, in its study released last month, noted formal and informal trade barriers remain major obstacles to economic growth and social development in the East African Community (EAC). According to Executive Director Mike Rotich, high transportation costs due to corruption, bureaucratic delays and poor infrastructure are an impediment despite the measures put in place to drive business. The study also notes that due to high costs of road transport within the region compared to shipping and air transport, only 23 per cent of EAC's total exports and 10 per cent of imports are intra-regional. "To transport a 20-tonne container from Mombasa to Nairobi costs $1,300, while a similar container from Mombasa to Kampala and Kigali costs $3,400 and $6,500 respectively. This is more than double the $1,200 one would incur to ship the same goods from Japan to Mombasa," Rotich notes. Apart from high road transport costs, overhead expenses such as bribes at border checkpoints and weighbridges incurred by transporters have also hindered the growth of regional trade. "We found that other overheads and bribes account for almost 19 per cent of the companies' total operation costs. Drivers who were interviewed claimed that many unexpected overcharges and bribes have to be paid at check points and weighbridges on the borders," the study notes. The study, which explored different factors affecting the trucking business in the...

Arusha — Uganda's Minister for East African Community (EAC) Affairs Hon. Shem Bageine will officially open the annual EAC Secretary General's Forum for Private Sector, Civil Society and Other Interest Groups at the Imperial Resort Beach Hotel on Friday, 12th September, 2014. This year's theme is: "EAC: My Home, My Business". Over 100 delegates from the Partner States are expected to attend the two day event; the third in series since 2012. The first was held in Dar es Salaam, United Republic of Tanzania, and second was last year in Nairobi, Republic of Kenya. The delegates will be drawn from the Partner States' Private Sector Organizations (PSOs), Civil Society Organizations (CSOs), professional bodies, academia/universities, media, EAC organs and institutions, development partners and other interest groups. The EAC Deputy Secretary General (in charge of Productive and Social Sectors), Hon. Jessca Eriyo, said that the Forum's objective was to provide a platform for regular dialogue between the EAC Secretary General and the Private Sector, Civil Society and other interest groups on how to improve the EAC integration process. "The 3rd Forum is an opportunity to widen and deepen EAC integration process and ensure stakeholder participation and inclusivity," according to Hon. Eriyo. She added:"The Forum will provide a space to dialogue on opportunities and challenges provided by the Regional integration process as well as share experiences." Professor Yash Tandon from Uganda, a renowned intellectual and policy-maker among others, will give a key note address on the Forum's theme. Prof Tandon is the former...

Kenya is optimistic that it will meet the October 1 deadline for the signing of the contentious European Union long-term trade treaty. The deal involves the EU and the East African Community. Representatives of the trade bloc meeting in Arusha on Wednesday arrived at a workable solution to outstanding issues which have delayed signing of the pact. “We hope the EU will accept our negotiated level of understanding in this agreement. We are optimistic they will and we shall meet the October 1, deadline,” Mr Nelson Ndirangu, the director of Economic and International Trade at the Ministry of Foreign Affairs told the Nation in Nakuru on Thursday. [caption id="attachment_3529" align="alignleft" width="450"] Red Land Roses growing in a farm in Kiambu County. Anxiety has gripped the multi-billion Kenyan horticulture industry after the European Union expressed worry over products.[/caption] FOURT PER CENT OF EXPORTS Kenya exports flowers to the EU worth Sh46.3 billion and vegetables valued at Sh26.5 billion every year. The EU takes about 40 per cent of Kenya’s fresh produce exports. Failure to sign the Economic Partnership Agreement (EPA) by the October 1 deadline will result in Kenyan goods being subjected to a 12 per cent duty for entering the EU. Mr Ndirangu said the Arusha meeting paved the way for presentation of the bloc’s resolutions to the EU. “There is hope, I can report. After presenting our negotiated position, it will be the EU to respond and we are optimistic that we are signing the agreement by October 1,”...

Recent news reports indicate that trade among East African partner states is growing by leaps and bounds. This is a positive development that regional leaders should seek to build upon and encourage. Rwandan exports to other East African Community countries, for instance, grew significantly in the first half of this year despite a poor showing in global markets. Exports to the EAC amounted to $97.8 million in the first half of 2014, up from $70.7 million in the same period last year. This represented a 38.6 per cent increase. Imports to Rwanda from the regional bloc, on the other hand, increased by 3.7 per cent from $239 million to $247.8 million in the same period. Themain exports included tea, raw hides and skins of bovine, coffee, steel andiron rods, vegetables and malt beer. Major imports were cement, palm oil, fats and oils, fertilizers, second hand clothing and sugar. The growth of trade among East African countries comes against the backdrop of failed negotiations for a new Economic Partnership Agreement with the European Union. The contentious areas have been referred to the political leadership of the two blocs for possible resolution following failure to clinch agreement by the technical teams. Kenyan exporters, in particular, will be badly affected from October, when they will have to start paying taxes on goods entering the European Union if no agreement will have been reached. The other EAC partner states are fortunate to be covered under the Everything But Arms arrangement. One way for East...

DAR ES SALAAM, Tanzania – The East African and Central members states have being agreed to work together through Public Private Partnership (PPP) to revamp the regional infrastructure system in harmonizing regional integration to foster social and economic development in the region. Speaking to invited delegates during the two days 5th East and Central Africa Roads and Rail Infrastructure Summit last week in Dar es Salaam, the Permanent Secretary in the Ministry of Transport, Dr Shaaban Mwinjaka said member states are ready to work together in collaboration with private sector in improving infrastructure system in the region such as roads, railways and airports. “There are a lot of opportunities so let us work together and invest together to foster regional integration and improving infrastructure system that fuel economic developments,” he said. Dr Mwinjaka noted that the government of Tanzania through the ministry of Transport is currently working hard to ensure that the central railway line operates effectively by adapting Big Result Now (BRN) model in the government system. He further said that the government is constructing and rehabilitating the terminal three at Mwalimu Nyerere International airport in order to accommodate approximately 6 million passengers daily. Dr Mwinjaka noted that the ongoing central railway line projects in Tanzania are Dar-Isaka, Kigali-Keza and Musongati with a total investment of $4.891million. He said that the upgrading of the Tanga- Arusha and the new line of Arusha to Musoma it’s currently estimation investment shoot up to $2.019 million which is in line of the...