Ratification of a 2013 protocol meant to promote peace, security, stability and good inter-nation relations within the East African Community (EAC) should be taken as a matter of urgency, regional lawmakers have said. The EAC Peace and Security Protocol, ,signed by five partner states in February 2013  (before entry of South Sudan)  following more than four years of negotiations has only been ratified by Rwanda and Uganda. In separate interviews, last week, the lawmakers said it is incumbent upon the partner states that have not ratified to do so “as a matter of urgency.” “We need to have a legal framework and some peace and security architecture implemented in the region to be able to engage on matters of peace and security,” said MP Mike Sebalu (Uganda), a member of the Committee on Regional Affairs and Conflict Resolution in the East African Legislative Assembly (EALA). “The most difficult and most challenging aspect is negotiation. When you have negotiated and reached an agreement on how you want such instruments to be and provided a regulatory framework, the ratification is the timely end of the process. It should be the easiest thing to do because the details are considered at the stage of negotiation.” Sebalu said it “gives me a bit of trouble” to see that partner states negotiate instruments but develop jelly knees when it comes to ratifying them. “There has always been a constant recommendation imploring partner states to append their signatures and ratify. We have always been given assurances...

Speaking soon after launching the train over the weekend in Dar es Salaam, Acting TRL Executive Director Shaban Kiko said that for first time TRL was providing 20 wagons at a time from Dar es Salaam to Burundi. He said initially TRL used to transport two to three cargo wagons from Dar es Salaam port to Burundi. “The block train services are launched for business and private companies that can transport up 20 cargo wagons,” he said. According to the TRL official, the 20 block train launched contained iron coils, the property of UBUCOM of Burundi, and will take three days up to Kigoma and one more day to Burundi. He clarified that TRL had reduced transportation cost for lose cargo and that protected in the special containers. He said lose cargo was charged at USD 3,056 per wagon and USD 3024 for fully covered wagons from Dar es Salaam to Burundi compared to the cost of transporting them by road. Two years ago, former president Jakaya Kikwete and his Burundian counterpart Pierre Nkurunziza launched the beginning of three freight wagon train routes to the Democratic Republic of Congo (DRC), Uganda and Burundi, at the Tanzania Railway Limited (TRL) central station in Dar es Salaam. Source: IPP Media

Mr Desalegn reiterated his commitment to use the Dar es Salaam Port in transporting cargo as well as extending cooperation with Tanzania on Air Freight Forwarding Services. The Ethiopian leader commended the Port of Dar es Salaam for higher efficiency and said that the Ethiopian Shipping Line will start to call at the Port of Dar es Salaam in the near future. Speaking few minutes after visiting Tanzania Ports Authority (TPA) yesterday, Mr Desalegn said: "I am glad to learn that TPA is working very hard to make the service competitive for the benefit of our people. " "Ethiopia is keen to learn from Tanzania because our country has a comparative advantage in the transport sector whereby we have Ethiopian shipping line, one of the few remaining on the African continent," said Mr Desalegn. In his remarks, Tanzanian Prime Minister Kassim Majaliwa expressed Tanzania's commitment to further strengthen bilateral relations between the two countries. TPA Director General (DG), Engineer Deusdedit Kakoko, said with the number of measures taken such as automation of services, installation of Integrated Security System (ISS) and improved spatial and infrastructure capacity to increase the efficiency at the Port, "We are actually looking forward for a much more volume in future as envisaged in our Port Master Plan," he said, adding: "In cognizance of the increase in traffic volume in future, we are committed to ensuring that the Port infrastructure and superstructure are modernised in response to regional trade demands, notably lower costs of transportation, which will...

Trade between Tanzania and France is still low at around 200 million Euros in favour of Paris, as authorities in both sides figure ways of increasing the volume. Trade figures, according to French Embassy in Dar es Salaam, shows Tanzania imported goods worth 135 million euros while exported 70 million euros in 2016. France Embassy's Economic and Trade Advisor, Beatrice Alperte said trade volume from either side was low as most are pharmaceutical from Paris and raw agricultural goods from Dar. "This volume is very low... it's our sincere hope the France- Tanzania Business Forum will alter the figures to better," Ms Alperte told the 'Daily News' ahead of Tanzania- France business forum which begins in Dar es Salaam today. The private sector led fourday forum aims at strengthening and nurturing trade initiatives whose ultimate goal is to improve the two countries' business partnership. The event will focus on sectors that will support the Tanzania strategy of industrialisation: Energy, including Renewable Energies, Transport, Digital solutions and will seek how to provide capacity building to local businesses. More than 200 people are expected to participate, including at least 50 French and Tanzanian companies. Tanzanian students from universities and technical high schools of Dar es Salaam have been invited. Ms Alperte admitted that French participation in East African bloc trading and investment was low compared to West Africa but said she hoped things would change. She said "Total is well known in these parties, but we have bigger companies as well on...

The inaugural Manufacturing East Africaconference will be hosted in Nairobi, Kenyafrom the 19 – 20 April 2017 and has been developed to explore and address the growing need for intra-Africa trade across the continent.  The event will comprise a 1 day conference, manufacturing competitiveness workshop and allocated business networking time. There is increased interest from South African manufacturers to explore new markets to sell products and services and with the rapidly growing East African market, this provides an opportunity to establish new business partnerships, trade relationships, the opportunity to explore investment into the regional SEZs and a platform to engage and meet with key East African stakeholders.  The event is partnered with the South African Department of Trade and Industry, the Manufacturing Circle, Kenya Manufacturers Association, Trade Invest Africa, CAIA as well as our private sector partner, Deloitte Kenya, South Africa and Tanzania. "Many local companies have registered to attend and we look forward to hosting a successful inaugural event aimed at paving the way for manufacturing growth and intra-Africa trade.  This further supports the growth strategy of the annual Manufacturing Indaba hosted in South Africa to aid companies to find emerging markets to enable growth.’  commented Liz Hart, Managing Director of the Manufacturing Indaba portfolio of events. Source: Engineering News

After Rwanda, Kenya and Uganda commissioned the Regional Electronic Cargo Tracking System (RECTS), Tanzania is also being engaged to join the system so as to further boost trade along the Kigali-Dar es Salaam route, officials confirm. In Rwanda, establishment of the e-Cargo tracking system meant to reduce the cost of doing business by reducing transit time, enhancing cargo safety and helping traders better predict arrival of goods, was funded by the UK Department for International Development (DFID) through Trademark East Africa (TMA) at a cost of $4.5 million (nearly Rwf3.7 billion). Patience Mutesi, TMA country director, says an engagement started with Tanzanian authorities to extend the system there as well. “Since 80% of Rwanda’s exports and imports are routed through the Dar port, it is important for Rwandan traders that Tanzania gets on board the RECTS for cost and time gains which would come as a result of cargo safety and increased truck productivity along the Kigali-Dar route,” Mutesi said. The system now connects Rwanda, Kenya and Uganda enabling them to jointly track transit cargo from port to destination on a 24-hour basis. François Kanimba, the Minister for Trade, Industry and East African Community Affairs, is optimistic that even though procuring the system is costly, TMA “accepted to support Tanzania as has been done in other countries”. The only problem would be, he observed, the fact that procuring the system takes time. Kanimba said: “As regards implementation, in Tanzania, there will be no problem. It is already a member of...

New measures to protect local industries and farmers from cheap imports will be known in June once the East African Community partner states agree on taxation rates. The region’s finance ministers will meet next month meet to agree on a new Common External Tariff (CET) on products like sugar, maize, wheat and rice, as well as customs-related taxation measures designed to protect local industries from cheap imports and unfair competition. Kenya’s Cabinet Secretary for the National Treasury Henry Rotich said taxation measures that will be agreed on by the EAC ministers for finance will be communicated through the EAC Gazette Notice and implemented from July 1. “On matters relating to Customs, we have evaluated various proposals from stakeholders for consideration by the EAC ministers for finance during the pre-budget consultations meeting to be held in May this year,” Mr Rotich told lawmakers in Nairobi while presenting the country’s 2017/2018 budget. The current CET is based on three bands of 25 per cent for finished goods, 10 per cent for intermediate goods and zero per cent for raw materials and capital goods, with a limited number of products under the sensitive list, which attract rates above the maximum rate of 25 per cent. The three-band tariff has been blamed for killing competitiveness of local companies and obstructing intra-regional trade by forcing them to pay duty at the rate of 25 per cent on some imported inputs, which should have ordinarily attracted zero per cent or 10 per cent duty. The EAC CET was last reviewed in 2010 but the...

Arusha. Nearly seven years after the coming into force of the East African Community (EAC) Common Market Protocol, the issue of free movement of labour is still contentious. Concerted advocacy by lobby groups such as the East African Employers Organisation (EAEO), the East African Trade Unions Confederation (EATUC) and others do not appear to have yielded much results. However, Tanzania, which has been viewed as being largely against the free movement of workers in its attempt to protect its national labour force, has reduced its residence permit fees by 50 per cent. For Ms Rosemary Ssenabulya, EAEO chairperson, this was “a great achievement” in the EAC integration process considering that it was the most contentious issues the organisation has been advocating for in the last two years. It was in 2015 when the employers’ body presented a joint petition with EATUC to the East African Legislative Assembly (Eala) on removing barriers to free movement of workers. “However, we still need to do more lobbying in this area until the fees are harmonised to zero the way other partner states of Kenya, Rwanda and Uganda have done,” she said during an annual general meeting of EAEO held in Arusha last week. Towards the end of last year, Kenyan President Uhuru Kenyatta asked Tanzania and Burundi to waive work permit charges in the spirit of EAC of allowing free movement of people and goods. He said the dream of a borderless East Africa would be realised if all partner states honoured an...

Vinod Madhavan, head of transactional products and services for Africa at Standard Bank, said the continent is expected continue as the second fastest growing region in the world over the next four years returning growth rates between four and five percent. He said intra Africa trade reduced due to low commodity prices last year, and trade within the continent would create more jobs. Madhavan said, “Africa could increase its intra- Africa trade three fold and still not match Asia’s level of internal trade. In Asia, trade and exports have been central to the region’s exponential growth, lifestyle improvements and stability of the last 30 years.” “As commodities rebound, 2017 is expected to set new records in the volume and value of African trade however, the point is not to get side-tracked by some of the current headwinds,” he added. He said Africa should learn from Asia, increase trade volumes in the continent for maximum benefits. Global and cross-border trade is the fastest contributor to growth, and it supports domestic trade, small and medium enterprise formation and job creation. Madhavan said this has been seen in emerging markets over the last 30 years. He however cautioned that Africa should address the current challenges like legislators not adopting the most efficient policies and political risks. Madhavan said there has been debt default in Mozambique and local currencies are losing value, U.S. dollar and other hard currencies remains scarce within key economies. He also mentioned, there have been over 10 bank defaults in...

The second East African Manufacturing Business Summit and Exhibition scheduled to start in Kigali on May 23 will, among others, look into the biggest challenges faced by regional manufacturers and how they can be addressed. François Kanimba, Minister for Trade, Industry and East African Community Affairs said this during a press conference at the ministry head office yesterday. Accompanied by Christophe Bazivamo, the Deputy EAC Secretary General in charge of Productive and Social Sectors, Kanimba told reporters that for the past two days, they had a successful steering committee meeting to plan for the three-day meeting. Kanimba said: “Key-issues to be addressed include: how can the region market itself best? Where are the major investment opportunities? What currently are the biggest challenges for regional manufacturers and how should
they be addressed?” The summit, he added, will also look at the success factors for manufacturers in the EAC, how to gain competitiveness in price and quality, how to deal with environmental concerns, and what can be done against counterfeits, illicit trade and intellectual property violations, among others. Other important matters during the conference will include: how to develop the requisite qualified labour force (industrial skills), sectors that are most affected by EAC regulations, and the role of the EAC Diaspora. Kanimba said: “The forum seeks to create an avenue for the private sector to advocate and campaign for the acceleration of industrial reforms aimed at improvement of investment conditions in the EAC strategic sectors.” The EAC region, he noted, already identified strategic...