East Africa's bloc, the Intergovernmental Authority on Development (IGAD) seeks to achieve free movement of persons, goods and services among the seven member states before the end of this year, officials said Wednesday. Speaking during a national consultative meeting about the IGAD Protocol on free movement of persons in the region, Abdelrahim Ahmed Khalil, Head of IGAD Liaison Office in South Sudan, said the regional bloc has embarked on consultations with all member states to ensure that the protocol is agreed upon before the end the year. Khalil said the meeting seeks to gather information on benefits and barriers to free movement of persons in the IGAD region and also generate recommendations from the nine member countries towards accomplishment of a protocol that guarantees free movement in the region. "We have already held consultative meetings for Uganda, now we are in South Sudan and next time we are going to other countries; Ethiopia, Sudan, and Kenya, all these will be finalized hopefully before the end of this year and we have the Protocol consulted and agreed," Khalil said. The Protocol on Free Movement of Persons is aimed at promoting the regularization of the high volume of informal movement that currently takes place in the IGAD region, and is to increase the opportunities for legal mobility. Khalil said IGAD has been engaged in seeking ways to strengthen regional cooperation and free movement of persons, goods and services for the last 30 years. He added that once completed, it would promote mobility...

A deal to eliminate import tariffs between Tanzania, Kenya and Uganda came into force on Saturday, marking the first major step to integrating the East African nations into a single economic and investment bloc. The East African Community Customs Union is intended to promote regional investment by allowing businesses to set up shop in one country but enjoy duty-free access to all three, which have a combined population of 83-million. Negotiations to set up the customs union began in 2000. Under the deal, tariffs between the three countries will be phased out over the next five years. The agreement will also bind the countries to impose tariffs of up to 25 percent on imports from nations outside the union. The customs union is the first major deal the three countries have reached since they recreated the East African Community in January 2001. The community is a revival of the economic bloc formed after independence from Britain in the early 1960s that collapsed in 1977 amid internal bickering. But the nascent customs union is already troubled by a dispute over Uganda's demands for protection of some of its industries. The country has listed 174 items it wants protected, said Kenya's independent newspaper, The Standard. East African ministers failed to agree on the matter before the union was launched. They have formed a committee of nine experts to study ways of ending the dispute. - Sapa-AP Source: IOL

The world doesn’t address Africa as ‘hopeless’ continent anymore. The big nations, the multi-national companies, economists all have remolded their opinion on Africa to the next investment destination after Asia in the coming decades. A decade ago one of the leading financial magazines had called Africa as a ‘hopeless continent.’ The winds started blowing in favour of Africa in a bigger way, and 10 years later all are queueing up for Africa as it is the second fastest growing region after Asia. This trend, all believe, will continue in the foreseeable future. The World Economic Forum (WEF) in one of its reports highlighted that “Africa is home to seven of the 10 fastest-growing economies in the world.” Green shoots in African economy in 2017 after a sharp decline in 2016 is a clear indication that the continent is getting back on the track. The untapped potential in the Sub-Saharan African region came to the forefront when the multi-national companies started focusing on Africa more. The sudden surge in investments in infrastructure development (road, rail and transport connectivity) from China, clubbed with conducive regulatory and policy support and regaining momentum in economy have brought Africa into the global centre stage. The advancement in economy trickles down to all segments of the business. The latest Logistics Performance Index (LPI) by the World Bank shows that the African countries have moved itself to the upward trajectory. South Africa continues to lead the pack by positioning itself at 20 in the world ranking. Countries...

Dar es Salaam. Industry, Trade and Investment ministry Permanent Secretary, Dr Adelhelm Meru, has called on manufacturers to see how they can supplement the government's industrialisation efforts through increasing investment ventures. Speaking today, August 8, at a breakfast meeting between the Confederation of Tanzania Industries (CTI) and Tanzania Revenue Authority (TRA), Dr Meru said; "We understand that you are grappling with a number of challenges including those related to taxation policy and tax administration, of which the government is already working on. “But, it is important that you collaborate with the government to address the challenges facing the industry,” he said. He urged the businessmen to address the challenge of product marketing for local products through increasing promotion both within and outside the country. "You are producing quality products that can compete in the global market. It is now high time you promoted the products," said Dr Meru. Source:  The Citizen

Kenya and Tanzania have agreed to conduct joint verification exercise on all imports and exports to help solve trade issues between the two neighboring countries. The exercise, once established, will see goods such as lubricants, edible oils, cement and textiles produced outside Export Processing Zone trade un-prohibited between the two countries, according to a joint communique between Kenya's Principal Secretary for Trade Chris Kiptoo and his Tanzanian counterpart Adolf Mugenda issued in Nairobi on Sunday. In the communique issued following three days of intensive talks, the duo underscored the significance of having regular bilateral meetings to discuss concerns and opportunities with a view of promoting trade for the mutual benefit of the two countries and its people. "The two sides deliberated on inter-alia concerns related to the retail sector, customs, freight forwarding, administrative bottlenecks and implementation of the East African Community (EAC) directives including the Single Customs Territory system to hasten clearance of goods across the borders," reads the communique. Lack of preferential treatment for certain goods produced in the region citing rules of origin and application of non-tariff barriers have seen trade between East Africa's two leading economies plummet in the last two years. The two government officials discussed the need to ratify and implement the EAC Sanitary and Phytosanitary Measures (SPS) Protocol, which requires partner States to establish regulatory institutions and harmonize control measures besides speedily development and adoption of cargo tracking system. The principal secretaries called upon immigration chiefs to convene regular bilateral meeting to resolve some...

The Common Market for Eastern and Southern Africa (COMESA) secretary General, Sindiso Ngwenya has urged member states to fast track harmonisation of policies in the mining industry to make the sector more competitive and profitable. According to Ngenya, the sector’s potential can only be sustainably harnessed through establishment of governance structures and leveraging on the existing multinational trade agreements. Ngwenya told The New Times that sound institutional frameworks will enable COMESA’s national and sub-national governments to have a say in decisions regarding the use of the resources located in their territories including minerals if they harmonise policies regulating the sector. “Good governance underlines the sustainable exploitation of mineral resources,” Ngwenya said adding that harmonisation of national and regional mining policies will underpin sustainable and broad-based socioeconomic development in the region and Africa at large. He added that more and more types of mineral resources can be more fully tapped as COMESA countries adopt the Mining Vision of Africa. “The introduction of an appropriate policy mix and the best global mining practices in line with country specific circumstances will help institutional capacities to best market their natural resources including minerals. According to sector experts, multilateral trade agreements such as the Tripartite Free Trade Area signed by COMESA, East African Community and Southern Africa Development Community provide the necessary framework for multinational mining companies to do business. The COMESA region should therefore improve their mining policies in line with the African Mining Vision (AMV)’s principles of “transparent, equitable and optimal exploitation of a country’s...

The treaty provides for Kiswahili to be developed as a lingua franca for the Community. Speaking at the closing ceremony of the East African Kiswahili Commission (EAKC) International Conference in Zanzibar, Tanzania, Kivejinja said there is a need for Kiswahili to be used as a tool for integrating the people of East Africa. The conference in Zanzibar brought together Kiswahili stakeholders from the region to deliberate on how the development and use of the language can creatively be used in deepening and widening EAC integration and contribute towards the realisation of sustainable development in the region. Kivejinja underscored the commitment of the Community’s leadership in implementing the Sustainable Development Goals (SDGs) and tasked the EACK with generating proposals on how Kiswahili can be used in the achievement of these goals. “I would like, therefore, to pledge the commitment of the council of ministers in taking forward the conference resolutions. We appreciate the progress being made by the commission and will continue to guide and enable it execute its mandate,” he said. The minister noted that with more than 120 different ethnic groups in Tanzania, Kiswahili was the most efficient and effective integration tool. “I would like to pay tribute to the founders of Tanzania for discovering an important tool in the foundation of the nation,” added Kivejinja. The EAKC executive secretary, Prof. Kenneth Simala informed the participants of the conference that the commission was working closely with regional Kiswahili associations in a bid to harmonise the activities of these associations....

As the U.S. continues its wholesale review of all trade agreements and preference programs—including the African Growth and Opportunity Act—it seems to still be building up on the AGOA program that’s so far still set to run through 2025. Last month, the United States Trade Representative said Togo is now eligible to enjoy trade benefits under AGOA for textile and apparel products. A statement in the Federal Register said: “…Togo has adopted an effective visa system and related procedures to prevent the unlawful transshipment of textile and apparel articles and the use of counterfeit documents in connection with the shipment of such articles…” Separately, the U.S. initiated a review in June of AGOA eligibility for Tanzania, Uganda and Rwanda, which came about when the East African Community (EAC) decided to ban imports of secondhand clothing to improve its own industry. The U.S. Secondary Materials and Recycled Textiles Association (SMART)—which initiated the petition for review with the USTR—said the move to curb incoming used clothing is a barrier to U.S. trade, which goes against certain requirements under AGOA. According to local news reports in Rwanda, talks with the U.S. have begun. “We are talking to our partners in the U.S. We value our trade and relations with the U.S. and we are doing all that is possible not to be out of cycle and of course we have been engaging on the issue,” Rwanda Development Board chief operating officer, Emmanuel Hategeka, told the New Times. “We think there is a lot to gain if we...

Gas-rich Tanzania hosts a two-day congress aimed at bringing together policymakers and experts in the oil and gas industry. But the country needs to pick its strategic partners carefully, says analyst Anaclet Rwegayura. For ages, Tanzania's rich underground wealth was unknown. That has kept it safe for the present generation, which needs it to eradicate poverty. Many prospectors and investors have crisscrossed the country after the government opened the door to mineral extractors, and it seems that many thought the country's wealth was up for grabs. Did it ever come to their minds that Tanzania was hoping to capitalize on its resource endowments in order to kick-start its industrialization? Given the country's healthy economic turnaround with a roughly seven percent annual growth rate, the Tanzanian government is keen to see productive investments taking place. Extractive investors who cannot enable the country to create wealth and free the local society from the shackles of poverty, are not welcome. Developments and opportunities For two days beginning on September 11, representatives of international oil companies, indigenous producers, international and national service providers, financiers and consultants will meet in Dar es Salaam with Tanzanian policymakers and experts in the oil and gas industry to discuss, among many other issues, the implementation of the country's gas master plan. According to congress organizers, the UK-based CWC Group, this will also be the opportunity to discuss business opportunities in the Tanzanian energy market. On the road to an industry-led development, Tanzania should by all means avoid stepping into the unknown....

If the U.S. and China have their way, Africa could soon begin to reach its potential as the next great frontier for apparel and textile sourcing. While there are determined efforts by the U.S. government and some key companies, the Chinese plan being implemented seems more comprehensive and likely to create a longer-lasting influence on the continent. The American Way The recent Sourcing at Magic trade show featured an African pavilion sponsored by the USAID East Africa Trade & Investment Hub. The Hub boosts trade and investment with and within Africa by deepening regional integration, increasing the competitiveness of regional agricultural value chains, promoting two-way trade with the U.S. under the African Growth & Opportunity Act, and facilitating investment and technology. The program, initiated in the Obama administration, covers the East African Community countries of Burundi, Kenya, Rwanda, Tanzania and Uganda, as well as Ethiopia, Madagascar and Mauritius. A spokeswoman for the program explained that since its launch in September 2014, it has supported $226 million in exports through AGOA, driven $51.2 million in private sector investment, helped more than 1,200 firms with capacity building assistance and helped create more than 33,000 full or part-time jobs. At the end of the project’s five-year mission, the goal is to facilitate $100 million in new investments in the EAC, increase non-oil AGOA exports to the U.S. by 40 percent, create 10,000 more jobs and double the value of intra-regional trade in the EAC. While AGOA was renewed in 2015 through to 2025,...