One of the agenda discussed by Prime Minister Dr Abiy Ahmed during his state visits to Sudan and Kenya were integration of the countries with railway routes. Indeed the issue of linking coutries of the region with railway line is a vital issue as it plays an all rounded role in socio-economic and political development of the region. Railway transport has a history of more than a century in the Horn of Africa. Among the oldest railway lines of the region is the Ethio-djibouti railway line built during the colonial period. The old age train lines become shifting and expanding currently by the sovereign countries of the horn aiming at mutual economic development based on win-win strategy. Ethiopian Railways Corporation Communication Service Head Dereje Tefera stated that "Railway transport is the back bone of developed countries economy. It is the main source of development for the developed world and it carries their economy even at this time. The newly developed countries are also busy in expanding railway transport nationally and regionally, such as china and Brazil." According to Dereje railway transport is incomparable with other transports for economic development and for regional integration since it carries bulk of freight and passengers with in short period and low price. It is cost effective, cheap and fast. It facilitates people-to-people relations within and beyond borders of nations. It also strengthens both import and export trades nationally and regionally. Even though, it is costly in building, it delivers indispensable service for a long...

On November 30, 2013, the heads of the East African Community (EAC) member states signed the Monetary Union (EAMU) Protocol in Kampala. This is the third pillar of the EAC integration. According to Article 5 of the Treaty establishing the EAC, the integration is anchored on four major pillars: customs union, common market, monetary union, and political federation. The Customs Union Protocol was signed in 2004, and came into effect on July 1, 2005. The Common Market Protocol came into effect on July 1, 2010 having been signed on November 30, 2009. Following the signing of the EAMU protocol, we have been inundated with questions from stakeholders about its implications and when the EAC shall fully realize its provisions. To begin with, a monetary union is a group of two or more states sharing a common currency and with common fiscal and monetary policies. An example of a monetary union is the European Union where several countries use the Euro and monetary policies are conducted by the European Central Bank. A monetary union can have different currencies, but with a fixed mutual exchange rate monitored and controlled by one central bank (or several central banks with closely coordinated monetary policies). In the African context, we have examples of other regional economic communities in advanced stages of implementing monetary unions as part of their broader integration agenda. One example is the West African Economic and Monetary Union (UEMOA) - comprising Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo...

At least 350,000 women in East Africa are set to be supported to become import and export traders to take advantage of the region's common market, top official of the implementing agency Trade Mark East Africa said in Nairobi on Wednesday. Frank Matsaert, the CEO of Trade Mark East Africa, said the support has been motivated by the fact that 5,000 women targeted in the phase one of the project and another 25,000 in phase two since 2010 had doubled their income. "This is a commitment we are making today to ensure that women of East Africa fully benefit from the common market," he said during the launch of a report in Nairobi on accessing how women have fared in trade within the regional bloc. "Women play a crucial role in growing trade and therefore economies within East Africa. We therefore need to find ways of supporting women in business. It is about partnerships with various organizations," Matsaert added. Trade Mark East Africa is a non-profit body that works with various partners to grow potential or intra-East Africa and the region's potential to export. Its various activities indicate that it has been active and instrumental in reforming border point entries to ease business environment especially for the small-scale traders selling across borders. The organization said its flagship project has been One Stop Border Post Program, which facilitates joint processing to reduce transit costs incurred in cross border movement by combining the activities of both country's border organizations and agencies at...

Nairobi — Clearance of goods at the Namanga border is expected to ease with the operationalization of a modern one-stop border post on Tuesday. State House Spokesman Manoah Esipisu said President Uhuru Kenyatta is expected to launch the border post to enhance efficiency at the Kenya-Tanzania border. The opening of the one-stop border post comes amidst an on-and-off trade spat between Kenya and Tanzania that has seen the two neighbours restrict movement of select goods due to tariff and non-tarriff barriers. The latest trade disagreement was a week ago when Tanzanian Authorities blocked confectionary from Kenya on what was believed to be a misinterpretation of a duty exemption rule on sugar products, according to Kenya Revenue Authorities. Speaking during his weekly briefing, Esipisu said the one-stop border post is in line with the government's commitment to the improvement of regional transport infrastructure, which remains a key priority to all East Africa Community states. "It will spearhead the ease of movement of goods and people within the region," Esipisu said on Sunday. The one-stop border post also aims at deepening policy integration and reducing barriers to trade in the region. "Additionally, the Namanga One Stop Border Post will boost trade by improving coordination and collaboration between the different agencies, thus contributing to a reduction in transport cost, whilst increasing volumes of transit cargo through the Northern Corridor," he added. The customs facility comprises offices and space for immigration processes and verification; warehousing and cold rooms for the goods traded across the...

WORKS and Communications Minister Makame Mbarawa has directed all institutions providing logistics services at the Dar es Salaam port to harmonize their systems in linking them with the new scanners under installation. "I want you to hand over to me your work plan on how your systems can be connected with the use of the scanners which have cost lot of public funds which should bring impact," Prof Mbarawa told the institutions when visited the port to inspect the scanners yesterday. The institutions include the Tanzania Ports Authority (TPA), Tanzania Inland Container Terminal Services (TICTS) and the Tanzania Revenue Authority (TRA). He gave them until Friday this week to meet and discuss on how they would harmonize their systems to enable them operate effectively, directing the TPA's Director Eng Deusdedit Kakoko to chair the meeting. Prof Mbarawa explained that the government has plans to install a total of 12 new such scanners at major ports of Dar es Salaam, Mtwara and Tanga, aiming at scanning all cargo imported through the ports for safety and economic reasons. The scanners would be scanning vehicles and other consignments to be transported by railway, including containerized cargo. The scanners were purchased following President John Magufuli's order to the TPA to procure the equipment. His order in 2016 was after he witnessed only two TPA scanners out of four functioning, creating loopholes for tax evasion by importers through false and under declaration of goods. Some TRA and TPA officials were also beneficiaries of the poor...

Iringa. Partners of the Southern Agricultural Growth Corridor of Tanzania (Sagcot) are confident that the government’s infrastructure drive will help speed up the country’s ambitious industrialisation goal. This was said recently by partners of the corridor when President John Pombe Magufuli paid a visit to Ihemi area during the launch of Silver sands Tanzania Limited. The company has a soya processing mill, poultry feed making machines and a large silo storage chain. During the tour, President Magufuli said he was impressed with the investment and products where he reiterated that his government will improve all infrastructures. “The industrial economy base needs reliable electricity and better infrastructures,” the President said during the launch. He also praised Iringa regional leaders led by Amina Masenza, who is the Regional Commissioner, for promoting the industrialisation agenda. “I am happy to learn that there are 2,665 industries in Iringa. You are doing a good job,” the President said, noting that the industries will create many jobs for the youth. The firm’s board chairman, Dr Ben Moshi thanked the regional administration and Sagcot Centre Limited for support and encouragement. “Our soya processing plant has created a market for soya beans for small scale farmers in Iringa and neighbouring regions,” Dr Moshi said. He added that through its training centre, over 800 people have been equipped with crucial skills. The Sagcot Centre chief executive officer, Mr Geoffrey Kirenga said the partners have expressed their feelings and confidence in President Magufuli’s visit to Ihemi despite his tight schedule....

Arusha. The East African Community (EAC) is expected to lay the carpet for its investment needs during a forum slated for Berlin next week. "There will be a high level discussions in which investment proposals will be laid bare", said the secretary general Liberat Mfumukeko. Speaking here on Friday after hosting the German Foreign minister Haiko Mass, the SG said EAC has ample opportunities for private sector investment from the European economic power house. Major German companies and potential investors with foothold in Africa will be at the May 15th forum in Berlin, the capital city. The event will be coordinated by the German-African Business Association (Verein der Deutschen Wirtschaft) and the East African Business Council (EABC). "The forum will define new areas of cooperation between Germany and EAC, specifically to enhance private sector investment in our region", he said. According to Amb. Mfumukeko, Germany had supported the EAC to the tune of 290 million Euros in the last two decades. The support include the construction of the EAC headquarters in Arusha and capacity building for EABC, the apex body of the private sector associations in the region. The forum will be taking place as the EAC and German were finalizing an agreement of 5m Euros to support the small and micro enterprises sector in EA. "The aim of the project is to improve opportunities for growth for SMEs in the region", the Community boss explained as he met the German delegation. On April 9th this year, the two sides...

Dar es Salaam Tanzania’s economy grew around 7.1 per cent last year, beating the government’s own revised forecast, Prime Minister Kassim Majaliwa said. In November, the East African country trimmed its gross domestic product (GDP) to 7.0 per cent from 7.1 percent. That forecast had also been revised from 7.4 percent. But Majaliwa said East Africa’s third-largest economy grew faster than expected last year owing to an increase in mining activity. “Latest data ... shows that the country’s gross domestic product grew 7.1 per cent in the period between January and December 2017, compared to a GDP growth of 7.0 per cent in 2016,” Majaliwa said in the parliamentary presentation obtained by Reuters. The session on Monday was held behind closed doors. Full-year GDP growth in 2017 was driven by mining and quarrying (17.5 per cent), transport and storage (16.6 per cent) and construction (14.7 per cent) activities, he said. Cut forecast The World Bank cut its forecast for Tanzania’s full-year GDP growth in November to 6.6 percent due to slowdowns in public spending and growth of credit to the private sector. Tanzania has pledged to boost public investment in infrastructure projects, including a standard gauge railway, new roads and an expansion of ports. But some investors have been unnerved by some policies from the government of President John Magufuli, who is nicknamed “The Bulldozer” for his governing style. “There appears to have been an overall deterioration in business sentiment due to the perceived risks resulting from the unpredictability of...

The success of the African Continental Free Trade Area (AfCFTA) agreement will significantly rest on the ability of Africa’s private sector to produce goods for the market, the President of the African Export-Import Bank (Afreximbank), has said. Dr Benedict Oramah said there is need for the private sector to take advantage of the opportunities that the AfCFTA presents, including through developing viable manufacturing hubs. He noted that there is also an opportunity whereby countries can access raw materials and other intermediate goods from fellow African countries for further processing and export at competitive rates. Afreximbank is working actively with the African Union Commission to ensure the realisation of the goals of the AfCFTA, he said, adding that the Bank was willing to help African businesses with “information, market intelligence and financing”, which would enable them to take advantage of the opportunities that AfCFTA presents. The AfCFTA has potential to increase a country’s trade with the rest of Africa by at least fivefold. The agreement was signed by 44 countries in March this year and nations are expected to ratify the deal in their respective parliaments. The agreement could drive up intra-Africa trade by about 52 per cent, according to estimates by United Nations Economic Commission for Africa. Intra-Africa trade is currently at about 14 per cent. AfCFTA implementation is also expected to lead to the creation of more jobs for the continent’s growing population by enabling growth of manufacturing sector and reducing reliance on extractive exports. Extractive exports on which...

Nairobi. Kenya’s exports to the East African region fell to $1.14b last year from $1.21b in 2016, largely due to a slowdown in the performance of manufacturing sector and persistent trade disputes with Tanzania. The Kenya National Bureau of Statistics (KNBS) Economic Survey 2018 shows that Kenya’s trade with East Africa member states dropped from $1.26b in 2015. Uganda, Kenya’s biggest regional market, sliced its imports from Kenya to $618m from $622m the previous year. Exports to Rwanda also dropped to $171m, from $175m in 2016. Tanzania recorded the biggest cut in imports, from $348m in 2016 to $285m last year. The manufacturing sector output volume declined by 1.1 per cent mainly on account of reduced production of food products, beverages and tobacco, leather and related products, rubber and plastics and non-metallic minerals. Comesa imports Cement exports to Uganda fell by 21.7 per cent. Other commodity exports to Uganda that recorded a decline in earnings were alcohol, phenols and their derivatives, salt, medicinal and pharmaceutical products and iron and steel products. Nonetheless, East Africa remained the leading destination of Kenya’s exports, despite a 4.6 per cent decline in the value of total exports during the year. “The decline in total export earnings from the East African Community is partly attributed to a reduction in the value of exports to Africa, since the region accounts for more than half of total exports to the continent,” KNBS said. Kenya also registered the highest increase in imports from the continent — a 43...