In line with what was reported last year, there continues to be a noticeable disparity in performance between the two core trade corridors of East Africa. Container trade in the Northern Corridor, which serves Kenya, Uganda, South Sudan and parts of Rwanda, expanded by 1%, whereas the Central Corridor, serving Tanzania, parts of Rwanda, Burundi, Zambia, Malawi and DRC, saw a contraction of 12%. This is according to Steve Felder, Managing Director at Maersk Line Eastern Africa – a member of A.P. Moller–Maersk – who says the 2017 First Quarter East Africa Trade Report issued by the company reveals that aggregate trade levels in the region have improved slightly since 2016, resulting in overall year-on-year growth of 1%. “While conditions in the East Africa region have continued to be challenging due to political instability, ongoing macro-economic headwinds and drought conditions affecting certain countries, we’re seeing healthy competition between the two corridors, both fighting for position in terms of some of the ‘swing’ countries that could export or import cargo through either corridor, specifically Rwanda, Burundi, Uganda.” The Northern Corridor While the Northern Corridor (serving Kenya, Uganda, South Sudan, and parts of Rwanda) import market experienced year-on-year growth of 6% in the first quarter, it declined slightly (by 1%) from the last quarter of 2016, says Felder. “In Kenya, liquidity is still very tight, caused by last year’s interest rate capping on the bank lending rate. In the next quarter we are expecting to see a slowdown in the import market...

Ethiopia's move and interaction on the economic fronts has not been as anticipated as its contribution and influence on the continent politics and peace building efforts, scholars argue. Scholars argue that owing to the ever growing economy of the county and market the country need to focus on Africa market as well, according to a report filed by Addis Zemen daily. According to 2016 African Development Bank Report, Benin, Botswana, Côte d'Ivoire and Senegal are the leading countries for their market supply to other African countries. Ethiopia and other African countries have the lowest share in this regard. Africa's GDP has reached over 5.8 trillion USD, registering on average five per cent growth and predicts to reach 29 trillion USD by 2050. The same report indicated that the African foreign trade volume has grown by 200 per cent. Having such growth and market potential, the share of Ethiopia is very much limited, according to scholars. Jimma University Economics Lecturer Dr.Wondaferahu Mulugeta said Ethiopia's trade relations with African countries is very much low. He attributed similar products, lack of infrastructure connectivity with African countries to the reason for low level of the trade relations. According to him, industrial parks and agro processing factories are expanding. The FDI is also increasing. The government is also working to be hub of the light and medium manufacturing in 2025. He said against this backdrop the African market would be essential for Ethiopia in the coming couple of years. President of the Pan African Chamber...

The East African Community (EAC) leaders were on Tuesday urged to pool together and initiate dialogue with the Burundi leaders to end the stalemate in the country. Deo Hakizimana, President of the Independent Centre for Research and Initiatives for Dialogue (CIRID), a Geneva-based civil society organization, called on leaders of the regional bloc to work together to solve the stalemate through dialogue to save citizens from suffering. "The EAC is a respected strong bloc hence the need for the leaders in the region to strongly come out and engage the Burundian leadership and the opposition in solving the long standing misunderstanding in the country," Hakizimana said in Nairobi during the launch of Macky Sall Prize for Dialogue in Africa (PMSDA) in Kenya. The tiny central African nation has been in the midst of a political crisis since President Pierre Nkurunziza decided to run for a controversial third term earlier in April 2015. Since then several people have been killed, with the toll possibly considerably higher, and 250,000 have fled to neighbouring States with many others internally displaced. The UN has warned of a relapse into full-fledged civil war, calling the government to take all necessary steps to disarm pro-government militias and bring operations of the police, intelligence services and other security forces under the mantle of the law. The Burundi diplomat, who has been involved in peace initiatives, said that Africa is not rich in resources alone but has a wide range of bright people that could help solve internal...

The U.K. government unveiled plans over the weekend to replicate current European Union-negotiated trade terms with the poorest 48 countries after it leaves the bloc, signaling the first major milestone for Secretary of State for International Development Priti Patel’s pledge to put post-Brexit trade at the center of her department’s new economic development strategy. The announcement commits to maintaining the current quota-free, duty-free trade access to the British market currently enjoyed by the poorest 48 countries through the EU. The government also announced it intends to maintain current trade advantages for other developing countries and, in some cases, to “explore options to expand relationships,” although specific terms can only be announced after bilateral negotiations. The news falls in line with the Department for International Development's new economic development strategy, released in January, as well as its cross-government strategy, which commits to spending 30 percent of U.K. aid through departments other than DfID by 2020. It will likely mean a greater emphasis on some of the work DfID is doing around trade facilitation and through the CDC, the U.K.’s development finance institution, a DfID official told Devex. Rachel Turner, director-general of economic development at DfID, said the primary objective behind the announcement is to provide continuity for current and potential investors in the region. She emphasized some of the new strategies DfID is considering to promote better access to global markets. About 20 billion pounds ($25 billion) worth of goods are exported to the U.K. from developing countries every year, according to government statistics. “We...

The United States has raised concerns that future trade and investment deals with East African countries based on a continent-wide free trade agreement may be unrealistic due to their diverse interests. According to Washington, the differences could lead to a lowest common denominator agreement and consensus on the African Growth and Opportunity Act (Agoa) would be difficult. Last year, the EAC told the US that, in order to increase trade and investment between the two parties, the general outlook of post-Agoa should take on a development dimension based on trade facilitation and investment promotion as well as address supply constraints and improve the business environment in the region. “Future agreements with the US, post-Agoa, should be discussed at the continental level in line with the African Regional Integration Agenda,” said Beyond African Growth and Opportunity Act, a report of the meeting of the Sectoral Council on Trade, Industry, Finance and Investment held on June 2 in Arusha. “Special and differential treatment should be factored into any trade and investment agreement post Agoa, as well as development support, in order to enhance EAC capacity to trade with the US. Therefore, there may be a need to qualify reciprocity that would take into account the asymmetrical nature of the economies involved.” According to the EAC, although policy reforms can have a positive impact on the private sector and influence the global competitiveness of the region’s firms, future trade relations should not be made conditional on these reforms. Such agreements should focus on trade...

Kampala. With about six weeks left for Kenyans to go to the polls, businesses in neighbouring states are beginning to look at the Dar es Salaam Port as an alternative route to import and export goods. Kenya’s main port of Mombasa, which according latest reports, registered 11 per cent cargo growth in the first quarter of 2017, serves Uganda, Rwanda, Burundi, South Sudan and DR Congo. Although much preferred by the business community, the effects of the post-election violence of 2007-08 are still fresh because of its adverse effect on regional economies. Uganda’s private sector is not taking chances, saying it should resume using Dar es Salaam Port. Mr Gideon Badagawa, the executive director of the Private Sector Foundation of Uganda, hopes the elections will be peaceful -- that Kenyan leaders and voters must have learnt their lessons from the 2007 experience. “We have seen both the [main contenders] Raila [Odinga] and Uhuru [Kenyatta] commit to peaceful elections and calling on their supporters to avoid violence. Of course it’s easier said than done! We, nevertheless, are hopeful that the environment for business shall not be much distorted,” he said. Mr Badagawa added Uganda needs to have ‘a plan B’. “It might be a good idea to begin opening up and using the route through Dar es Salaam,” he said. Kampala City Traders Association spokesman Issa Sekitto said goods should go through the Central Corridor during this period. Uganda’s leading export commodity, coffee, is transited through Mombasa Port and many exporters...

The office of the US trade representative (USTR) has announced the initiation of an out-of-cycle review of the eligibility of Rwanda, Tanzania and Uganda to receive benefits under the African Growth and Opportunity Act (AGOA). The launch of the review is in response to a petition filed by the Secondary Materials and Recycled Textiles Association (SMART). The petition files by SMART asserts that a March 2016 decision by the East African Community, which includes Rwanda, Tanzania and Uganda, to phase in a ban on imports of used clothing and footwear is imposing significant economic hardship on the US used clothing industry. Through the out-of-cycle review, USTR and trade-related agencies will assess the allegations contained within the SMART petition and review whether Rwanda, Tanzania and Uganda are adhering to AGOA's eligibility requirements. Signed into law in 2000, the AGOA promotes trade and investment in sub-Saharan Africa, including through substantial trade preferences. In order to qualify for AGOA trade benefits, partner countries must meet certain statutory eligibility requirements, including making continual progress toward establishing market-based economies, the rule of law, political pluralism, and elimination of barriers to US trade and investment, among others. US AGOA imports from Rwanda, Tanzania and Uganda totalled $43 million in 2016, up from $33 million in 2015. US exports to Rwanda, Tanzania and Uganda totalled $281 million in 2016, up from $257 million in 2015. A public hearing will take place on July 13, 2017 in Washington, DC. (KD) Source: Fibre2Fashion.com

Agriculture will now be placed as number one engine of economic growth in the East African Community (EAC) integration process. This follows last week's signing of the EAC Comprehensive Africa Agriculture Development Programme (CAADP) Compact. "The Compact is designed to facilitate coordination of regional and cross cutting programmes that complement agricultural programmes and projects at national and regional levels," said the EAC deputy secretary general (Productive and Social Sectors) Christophe Bazivamo. He said after the signing ceremony at the EAC headquarters that the process of developing the EAC-CAADP Compact has been lengthy, inclusive and consultative and that the partner states should embrace it. The programme details regional development priorities and defines actions, commitments and partnerships required to achieve agricultural transformation in line with the CAADP goals and targets. Uganda's Minister of Agriculture, Animal Industry and Fisheries, Mr Ssempijja Bamulangaki, reaffirmed the EAC Partner States' commitment to transforming agriculture for inclusive economic growth in the region. "Over the years, efforts have been put in different sectors of integration such as infrastructure. It is now time that we assert ourselves, move with greater speed and ensure we take agriculture to the lead," the minister said. CAADP's overall goal is to use agriculture to eliminate hunger and reduce poverty in Africa. Through the CAADP agenda, African governments have agreed to increase public investment in agriculture to ten per cent of national budgets per year and to raise and maintain agricultural productivity and annual growth by at least six per cent. With the vision...

Kampala- With about six weeks left for Kenyans to go to the polls, the private sector in neighbouring states are now beginning to look at the Dar es Salaam port as an alternative route to import and export goods. Kenya’s main port of Mombasa, which according latest reports, registered 11 per cent cargo growth in the first quarter of 2017, serves Uganda, Rwanda, Burundi, South Sudan and DR Congo. Although much preferred by the business community, the abrasions of the post-election violence of 2007/8 are still fresh because of its adverse effect on regional economies. Uganda’s private sector is not taking chances saying Dar es Salaam Port should permanently resume its use Private Sector Foundation of Uganda Gideon Badagawa executive director hopes the elections will be calm and peaceful- Kenyan leaders and voters must have learnt their lessons from the 2007 experiences. “We have seen both Raila and Uhuru commit to peaceful elections and calling on their supporters to avoid violence. Of course better said than done! We, nevertheless, are hopeful that the environment for business shall not be much distorted,” he said. Mr Badagawa added Uganda needs to have ‘a plan B’. “It might be a good idea to begin opening up and using the route through Dar es Salaam,” he said. Kampala City Traders Association spokesperson Issa Sekitto said goods, during this period, should go through the Central corridor. Uganda’s leading export commodity, coffee, is transited through Mombasa Port and many exporters saw their stocks pile in 2007....

Dodoma. Two days after the US Trade Representative announced that Tanzania, Uganda and Rwanda risk losing access to the American market through the African Growth and Opportunity Act (Agoa) following plans by the East African member states to ban imports of second-hand clothes and shoes, a former Cabinet minister has asked the government to take the issue seriously. The US Trade Representative announced on Tuesday the initiation of an out-of-cycle review of the eligibility of Rwanda, Tanzania and Uganda to receive benefits under the act after concerns that the planned ban will impose significant economic hardship on the US used clothing industry. The launch of the review is in response to a petition filed by the Secondary Materials and Recycled Textiles Association (Smart), which asserts that a March 2016 decision by the East African Community, which includes Rwanda, Tanzania and Uganda, to phase in a ban on imports of used clothing and footwear is imposing significant economic hardship on the US used clothing industry. Having read the article in The Citizen on Thursday, Dr Diodorus Kamala (CCM - Nkenge), said the government needs to take the issue seriously and come up with necessary plan of action. “There is a story in The Citizen today which shows how serious this issue might be. The government needs to come up with relevant measures to protect the economy from the negative outcomes of what might be reached under Agoa,” he told the House yesterday during a debate on the 2017 Finance Bill. Dr...