In her 2010/11 Financial Year budget speech, Finance Minister Syda Bbumba said she envisages that the East African Community (EAC) Common Market which comes into force on July 1 will “stimulate greater productive efficiency, higher levels of domestic and foreign investment, increased employment, and growth of intra-regional trade and of extra-regional trade.” Kenya’s Finance Minister, Uhuru Kenyatta, also spoke about how the Common Market would allow freedom of movement of goods, services, capital, business enterprises and skilled labour within the EAC. While most EAC budgets did not show plans on how their economies are positioning to survive and thrive under the Common Market, Kenyatta unveiled a robust plan. The Kenyan economy is far bigger than the combined economies of the other EAC states. Its budget shows that it is positioning itself to gain even more from the free flow of goods and services in the EAC. Kenyatta announced a duo-pronged strategy that looked inwards with the “build Kenya, buy Kenya” theme and an outward looking strategy that ensures competitiveness abroad. He proposed seven bills to support business expansion by cutting-down regulation and easing access to financing. Kenyatta showed he was aware of the apprehension among other states. He said: “Kenya is prepared to fully implement the provisions of the Common Market protocol from 1st July, 2010. I also call upon our brothers on the community to do likewise”. The Kenya budget was similar to the regional budgets in emphasising improving ease of doing business and investing in priority areas like...

Negotiations between the European Union (EU) and African countries for Economic Partnership Agreements (EPAs) have consumed vast energies from both sides this century - yet with not a great deal to show for it. The EPAs were agreed to in principle in 2000, when the Cotonou Agreement replaced the 1975 Lomé Convention. In essence that fundamentally changed commercial relations between the EU and the developing African, Caribbean and Pacific (ACP) countries - from preferential, non-reciprocal, to normal, reciprocal trade. But if African countries accepted that change in principle, realising it has been extremely fraught. Taking the plunge into the icy waters of mutual free trade has evidently been too frightening for developing countries used to one-way traffic into the huge 510 million-person EU market. Magufuli warned that the EPA could wreck Tanzania's own still-fledgling industries And so, even after more than a decade of often tortured negotiations, the results are not impressive. Only 30 of the 76 ACP countries are implementing EPAs. In 2008, the Cariforum EPA was signed with 15 Caribbean countries. In the Pacific only two countries, Papua New Guinea and Fiji, signed on. In Africa, the EPA with ESA - the Eastern and Southern Africa group comprising Mauritius, Madagascar, Seychelles and Zimbabwe - entered into force in 2012. The Central African EPA was provisionally implemented in 2014 - but with just one African country, Cameroon. The major regional blocs, the Economic Community of West African States (ECOWAS), Southern African Development Community (SADC) and East African Community (EAC),...

DAR ES SALAAM, April 27 (Xinhua) -- A senior official with the East African Community (EAC) said on Thursday implementation of the bloc's single customs territory (SCT) has tremendously reduced the cost of doing business in the region. Dicksons Kateshumbwa, chairman of the EAC Committee on Customs, said turnaround time has been reduced from 21 days to 3-5 days on average between the entry points to Kampala in Uganda, Kigali in Rwanda, and Bujumbura in Burundi. The six-member EAC is implementing a number of customs projects, including the SCT, transforming the way of doing business for the benefit of EAC members economies. "Capacity building and sensitization to support the SCT has been done and is ongoing," Kateshumbwa told a news conference in Dar es Salaam. The SCT started in 2014 on both the northern and central corridors where goods are assessed and declared at the first point of entry and move to the destination partner state with taxes and duties paid upfront. Kateshumbwa said integration of customs functioning was enhanced through cross-border deployment of staff in partner states, leading to better accountability, deterrence of smuggling and closer cooperation among customs authorities. "So far we have rolled out goods on the SCT on pilot basis," Kateshumbwa said. "However, the most important decision we have made today is that we have agreed on the full implementation of the SCT effective July 31, 2017." He said customs automation across the region has been enhanced in all member states -- Tanzania, Kenya, Uganda, Rwanda,...

The Democratic Republic of Congo (DRC) has signed a Memorandum of Understanding (MoU) with regional trade facilitator TradeMark Africa (TMA) to improve cross border trade and enhance trade links between the country and East Africa Community (EAC) member states. The government of the Netherlands has committed $6.7 million to kick-start the projects. TMA will invest in projects involving already available resources such as water transport, simplifying trade processes through training and facilitating adoption of ICT around Eastern DRC. They will comprise dredging and rehabilitation of Kalundu Port on Lake Tanganyika; capacity building and implementation of Integrated Border Management Systems on the border crossings in Rusizi between Rwanda and Bukavu; rehalibitation of the Ports of Kasenyi on the DRC side and Ntoroko in Uganda; as well as infrastructure work at the border crossing at Goli, Uganda and Mahagi, DRC. “Trade is a way to reduce conflict and unemployment. The agreement will contribute to the training of cross border traders in trade issues, exporting and tapping into regional markets. This will especially benefit our youth,” Prof. Nehemie Wilondja, DRC Directuer du Cabinet noted. TMA Director General David Stanton said they are seeking to replicate the success of similar initiatives between EAC governments and businesses to drive down the costs of trade along the key transport corridors, which include the border with DRC, in the country. The institution has facilitated projects along the Northern Corridor from Mombasa Port, Kenya linking Uganda, Rwanda, DRC and South Sudan; and the Central Corridor connecting Dar es...

The Kenya Revenue Authority (KRA) says it has tripled custom revenue collections in its seven border points after it began operating one-stop border posts in June 2016. The move, which put together bureaucrats involved in cross-border clearance processes under one roof, has also cut cargo clearance time from the previous three days to just under 1 hour, the agency said. KRA Western Regional Coordinator Kevin Safari said the simplified procedures have attracted traders into the cross order business as well as reduced smuggling hence the increased revenues. “With a faster and a simpler process, traders have had no incentive to use illegal channels to bring in goods into the country as they are assured of a faster and a more transparent process,” Mr. Safari said during a tour at the Busia border point. “We have also reduced the time they would take to cross the border meaning they can trade more volumes which is also a revenue boost for us.” The Busia OSPB which is major entry and exit point between Kenya and Uganda has a one-stop clearance point for cargo and people, with various government agencies sitting in one office to fasten the clearance procedures. Kenya has 35 gazetted entry and exit points with four more being proposed in the Western border with Uganda. Source: Asempa News

Kenya’s private sector has opened fresh talks with Tanzania in a fresh bid to convince the least-developed East African Community peer to sign the stalled trade deal with 28-member European Union. The Kenya Private Sector Alliance has entered into a partnership with the Tanzania Private Sector Foundation to discuss regional and international trade, among key issues being the Economic Partnership Agreement between the region and the European Union. The partnership was entered into last Friday, Kepsa business regulatory environment consultant Patrick Tonui said yesterday. “We want to look at how we can support trade between us and the international markets. In our discussion, they (TPSF) recognised that this is a conversation they need to have in Tanzania, and they are having it,” Tonui said during the Kepsa’s quarterly media briefing in Nairobi. Tanzania is perceived to be the stumbling block in the deal which gives the region quota-free and duty-free market access to the EU. Only Kenya and Rwanda have signed and ratified the EPA deal. Uganda has shown intentions to signs, according to East African Affairs Principal Secretary Betty Maina. Tanzania has declined to sign the pact twice in 2014 and 2016, saying it will hurt the growth of her industries. Burundi on the other hand cited the wavering diplomatic relations with the EU which came after President Pierre Nkurunziza re-election bid. Kepsa however believes that private sector intervention in all EAC member states will lead to the conclusion of the deal. “We want our country to grow and...

Intra-Africa trade took 40 per cent of the exports worth Sh234.1 billion indicating a need to ease movement of goods and services. The Economic Survey 2017 shows the East African Community that brings together Kenya, Uganda, Tanzania, Rwanda and Burundi continued to provide Kenya with a ready market that accounted for 51.9 per cent of the intra-Africa trade. The bloc, which is pursuing integration at economic and political levels, has also provided a ready market for Kenyan investments in manufacturing, banking and provision of professional services. Somalia that is slowly returning to normalcy provided Kenya with the largest gains as export volumes of fresh and processed products doubled. Exports in 2016 stood at Sh17.9 billion, an indication that a stable Mogadishu means good business for Kenya. Uganda remained the biggest market for Kenyan goods where Sh62 billion worth was sold with Rwanda receiving goods valued at Sh17.5 billion, Burundi Sh7.2 billion and Tanzania recorded Sh34.8 billion up from 2015 Sh33.7 billion. European Union came second accounting for 24 per cent of the exports worth Sh141.5 billion while the US imported goods worth Sh52.9 billion. Source: Business Daily

East African Community Secretariat; Nairobi, Kenya; 12 April 2017: The Secretary General of the East African Community (EAC), Amb. Liberat Mfumukeko paid a courtesy call on the Trademark East Africa (TMA) CEO, Mr. Frank Matsaert on Tuesday, 11th April, 2017, at the Trade Mark East Africa Headquarters in Nairobi, Kenya. The two officials had a lengthy discussion on a number of issues including the support to the East African Community by TMA and the importance of Partnership between the two parties. The Secretary General briefed Mr. Frank Matsaert on the reforms being undertaken at the EAC and that EAC was now ISO certified. He disclosed to the TMA CEO that the impact of reforms had led to cost reduction in the way EAC does business and emphasized that the reform agenda will continue to ensure efficiency in the use of available resources. On management of different projects at the EAC Secretariat, Amb. Mfumukeko informed Mr. Matsaert that the Projects Coordination Unit will be fully functional by July 2017. On his part, Mr. Frank Matsaert emphasized that TMA takes EAC partnership seriously, and congratulated the EAC for passing the EU Fiduciary Risk Assessment, which TMA supported. Mr. Matsaert informed the Secretary General that a commitment had been made to support the initial phase of operationalization of the Projects Coordination Unit at the EAC Secretariat. 'Already a consultant had been recruited by TMA to help in the finalization of the design of the unit'. The report will be finalized by end of...

Iringa small scale farmers have asked the government and the East African Community (EAC) Secretariat to eliminate both the traditional and new challenges related to non-tariff barriers (NTBs), impact of climate change and low participation of farmers in the EAC agritrade policy making process. At a recent event held to review the region's agri-trade and business regime, the stakeholders found that majority of small farmers weren't aware of the requirements for undertaking agri-trade and business within the EAC and other regional economic blocs. The deliberations which were based on experiences of Iringa small-scale farmers pointed out challenges associated with systems which include lack of capacity on the part of small scale farmers to negotiate favorable terms. As a result, the Iringa Civil Society Organization (ICISO) supported by the Foundation for Civil Society (FCS) under the EAC CSO integration project in collaboration with Trademark East Africa (TMA) is working to establish how the small-scale farmers could effectively engage in, and benefit from, the region's agri-trade and business regime. A statement issued by the ICISO Executive Secretary, Mr. Raphael Mtitu noted that Iringa SSFs were failing to effectively engage and benefit from the EAC regional development cooperation and integration due to lack of information and facilitation on how to undertake trade and access markets within the bloc. Source: All Africa

Tanzania’s first standard gauge railway (SGR) has moved closer to reality following the laying of the foundation stone for implementation of the first phase by President John Magufuli recently. President Magufuli told the gathering witnessing the stone laying ceremony at Pugu in the outskirts of Dar es Salaam, that SGR would speed up the country’s industrialisation drive and went on to urge the consortium of Turkish and Portuguese contractors undertaking the project to look into the possibility of completing the project ahead of the 30-month schedule. ”I understand the project is scheduled to take 30 months to complete, but I challenge the contractors to deliver a well-executed project ahead of the deadline,” the President said, adding that the Government had already effected a down payment of 300 bn/-. The project, to be implemented in five phases, will link Dar es Salaam and Mwanza and eventually Rwanda and Burundi. The portion whose construction was launched is about 300 kilometres long, from Dar es Salaam to Morogoro. Reli Assets Holding Company Ltd (Rahco) had announced earlier that the project would be undertaken by Yapi Merkez Insaat Ve Sanayi (Turkey) and Mota-Engil, Engenharie and Construcao Africa, SA (Portugal) at a total cost of 1,215,282,000 US dollars. Rahco Acting Managing Director, Masanja Kadogosa, said his firm would closely oversee the project and ensure its timely completion. He hailed the government for its efforts to make the project happen, noting that it would go a long way towards opening up business opportunities in the hinterland....