President Uhuru Kenyatta with his Tanzanian counterpart John Magufuli at State House, Nairobi, when he toured the country earlier this month. The Tanzanian President gave the topic of Economic Partnership Agreement (EPA) a wide berth during his two-day visit. [PHOTO:BONIFACE OKENDO/STANDARD]In July this year, a deal-signing ceremony between the East African Community (EAC) and the European Union was put off indefinitely. This was after Tanzania and Uganda declined to sign the European Partnership Agreement (EPA). One of the reasons the two countries cited in their stand was Brexit - Britain’s landmark referendum vote on June 24 to leave the European Union - casting a cloud of uncertainty over the future of the preferential trade deal. At the time, Tanzania and Uganda argued that after Brexit, it was necessary to wait and see if Britain, operating outside the EU, was a more strategic partner to East Africa or not. But the other more pertinent reason why Tanzania in particular declined to sign on and which it once again raised last week, was that scholars from the University of Dar es Salaam reportedly cautioned that signing and ratifying the deal would jeopardise Tanzania’s industrial sector. President John Magufuli’s main concern for pushing the ratification of the deal to January has always been the future of the country’s fledgling industrial sector. He has all along argued that ratifying the EPA as it is would flood Tanzania with cheap agricultural and manufactured imports. In addition, the country is weary of being a station for...

East African Community Secretary-General Liberat Mfumekeko (right) exchanges signed copies of the five-year EAC-USAid Regional Development Objective Grant Agreement with USAid East Africa head Karen Freeman (left) and Virginia Blaser, chargé d'affaires of the US embassy in Tanzania. PHOTO | COURTESY  In Summary Access to integrated health services in border areas like Mt Elgon in Kenya and Uganda will also be improved. EAC secretariat said about $30 million (Sh3 billion) of the amount will be used to strengthen its operations. The United States government will give the East African Community (EAC) $194 million (Sh19.4 billion) to finance trade, agriculture, health, climate change and other development projects to improve the economy of the region. This follows the signing of a regional development objectives grant agreement at the EAC headquarters in Arusha, Tanzania, on Wednesday. The five-year agreement was signed by US representative to the EAC Virginia Blaser, United States Agency for International Development (USAid) mission director for Kenya and East Africa Karen Freeman, and EAC Secretary-General Liberaìt Mfumukeko. In a statement to newsrooms, the EAC secretariat said about $30 million (Sh3 billion) of the amount will be used to strengthen its operations while the remainder will support EAC regional integration projects. “The new grant will deepen integration, improve cross-border risk management and support sectors like climate change, gender, livelihood, and population and health threats,” Mr Liberaìt said. The partners will work together on challenges that prevent integration in the five countries. HEALTH IN BORDER AREAS They are also set to increase...

Signs of protectionism in East Africa since the commencement of the bloc's Common Market regime have frustrated free movement of people and services. Integration efforts have been hampered by work permits required by some countries and delays in ratification of mutual recognition agreements for various professionals. Protectionist tendencies exhibited by some member states are mainly driven by the desire to shield certain sectors from foreign rivals. Whereas tariffs charged against foreign firms and professionals entering certain markets offer attractive revenue collection streams for countries, the overall share of tariff revenues in the East African Community has dropped to around 1.5 per cent of GDP since the Common Market was launched in July 2010, according to Mario Mansur, a tax expert based at the International Monetary Fund. "The application of such fees is driven by a traditional desire to collect more tax revenues needed to fund national programmes. But protectionism also plays a big role in countries seeking to protect local enterprises from aggressive foreign competitors," said Adam Mugume, executive director for research at the Bank of Uganda. Hurdles Whereas Tanzania recently announced reductions in work permit fees and professional service fees levied on foreign workers and businesses operating in the country, continued enforcement of these fees still poses hurdles to free movement of labour and services, contrary to provisions of the Common Market Treaty. Work permit fees have been slashed from $2,000 per year to $500 per year for every individual while professional service fees have been reduced from $3,000...

PARTNERSHIP: Representatives from the two countries’ foreign affairs ministry and TMA top officials were present. The  building of a One Stop Border (OSBP) is expected to increase efficiency by reducing time and transport costs incurred by businesses, farmers and transporters while crossing from one Partner State to the other. South Sudan joined the Community earlier this year. KAMPALA, UGANDA--South Sudan and Uganda have signed a Memorandum of Understanding (MOU) to work together and in partnership towards construction of a One Stop Border Post (OSBP) in Elegu/Nimule towns along the Uganda/South Sudan border. “We are glad the partnership between the two countries has been established. This will provide a framework and mechanism for bilateral cooperation,” Moses Sabiiti, Uganda Country Director TradeMark Africa (TMA) said at the signing last week. For OSBP operations, persons, vehicles and goods make a single stop to exit one country and enter another. Generally, its implementation includes simplification of documents and procedures and greater use of ICT. Many of the documents will be received and reviewed electronically before the vehicle arrives. If inspection is needed, it will be done jointly thereby avoiding unloading and reloading cargo twice with the loss of time and potential damage to goods. The first OSBP was officially opened in Holili/Taveta towns on the Kenya/Tanzania border in February 2016. Since then others have become operational along the common borders. TMA is the Uganda Revenue Authority’s (URA) strategic partner, which meant they were involved in the brokering and crafting the MOU. The MOU establishes...

Customs experts from revenue administrations across Africa are meeting in Harare to discuss modalities of implementing the One Stop Border Post concept on the continent so as to enhance Customs clearances and trade facilitation. The meeting, which runs from 14 to 16 November, is a precursor to the 8th Ordinary Meeting of the African Union Sub-Committee of Directors General of Customs which will run from 17 to 18 November under the theme, “From Barriers to Bridges – Implementing One Stop Border Posts for Improved Trade Facilitation”. Almost all African countries are represented at this year’s event, which will see Zimbabwe assuming the Chairmanship of the African Union Sub-Committee of Directors General of Customs. Speaking while officially opening the event at a local hotel, the Zimbabwe Revenue Authority (ZIMRA) Acting Commissioner General, Mr Happias Kuzvinzwa, applauded the One Stop Border Post concept as a sure way to improve on trade facilitation within the African continent. “One of the many ways to achieve the cognitive level of cooperation to improve on trade facilitation is the implementation of the One Stop Border Posts, which has the potential to improve the smooth flow of traffic at crossing points, as well as cutting down on the costs associated with the moving of goods across the borders,” said Mr Kuzvinzwa. He applauded the critical role being played by the Customs Technical Working Groups saying, this will help address issues in the Trade Facilitation Cluster of the Action Plan on Boosting Intra-African Trade. The Action Plan on...

Eliminating non-tariff barriers, upgrading customs systems and reforms, improved testing by the Uganda National Bureau of Standards have reduced the cost and time of doing business in Uganda Cars parked at the Malaba boder post. The cost of testing products reduced from $350 to $100 (Shs1.2 million to Shs350, 000). FILE PHOTO   Eliminating non-tariff barriers, upgrading customs systems and reforms, improved testing by the Uganda National Bureau of Standards have reduced the cost and time of doing business in Uganda. A new report by consulting firm Market Share shows that operations and interventions of Trade Mark East Africa (TMA) in Uganda have so far contributed to a 5.7 per cent reduction in transit time of goods between Kampala and Mombasa. The independent evaluators said TMA Uganda programmes have reduced trade costs and also induced $97m (Shs339 billion) new trade between 2014/2016. Mr Frank Matsaert, chief executive officer, TMA, said: “The evaluation findings have demonstrated how easy it is to do business in the country and is indeed a great step towards improving lives and businesses through trade.” Mr Moses Sabiiti, TMA Uganda country director, called on other like-minded partners to join forces to improve regional integration which will eventually unlock investment opportunities and create jobs. Report findings According to the report, the interventions at the Uganda Bureau of Standards have led to a reduction of the average time it takes to test selected products from 19 days to eight days. Following TMA’s intervention programmes, the cost of testing products...

By Rhiannon Snide and James Karuhanga The Ministry of Trade, Industry and East African Community Affairs is looking to more youth involvement in regional integration agenda, a top official said yesterday, at the launch of the latest edition of EAC Week. François Kanimba, the Minister for Trade, Industry and East African Community Affairs, said this yesterday during a news conference to launch the seventh EAC Week. The campaign will run under the theme: "Regional Integration: A Necessity for Development." "There was a general agreement at EAC-level that the focus should be on how regional integration is a key driver for economic development. This is the key message wherever we are going to go, particularly when we talk to the youth," Kanimba told journalists in Kigali. "This message will be emphasised as a mobilisation tool for the youth to maximise their potential to contribute to the regional integration process. Youth can contribute in different ways." Held annually in all EAC Partner States during the month of November, the EAC Week aims to increase awareness among citizens on the EAC integration agenda. The three-fold objective of this EAC Awareness Week is: updating Rwandans on key achievements under EAC integration, promoting awareness on key ongoing projects and programmes, and addressing the public's concerns and questions on the bloc's integration agenda. The minister added: "When you look at the skill development programmes we are implementing, particularly in Rwanda, skills are a fundamental ingredient to realise benefits of regional integration process. Skilled people can move...

South Sudanese ambassador and Foreign Affairs undersecretary Joseph Ayok Anei. JOSEPH ODUHA | NATION MEDIA GROUP  South Sudan and Uganda have signed a One-Stop Border Posts agreement to enhance trade through the efficient movement of goods, persons and services within the two partner states. South Sudan’s ambassador and Foreign Affairs undersecretary Joseph Ayok Anei, told reporters in Juba on Monday that the deal was vital, especially for South Sudan whose economy was handicapped by political instability. High taxations The agreement was inked on November 8 in Kampala by the Foreign Affairs secretaries from both sides. Mr Anei said the deal would also do away with non-tariff barriers and curb the illegal and high taxations imposed on traders from both countries. Although politically instable, South Sudan has curtailed the flow of commodities from Uganda and Mr Anei was optimistic that efforts by the Juba administration to restore peace would open doors for foreign investment and encourage the free trade between the two countries. Young nation South Sudan was dependent on goods and services from the East African countries, especially Uganda and Kenya. The young nation has also signed a similar trade agreement with Sudan, but had not enforced it due to allegations of rebels support from both sides. Source: Africa Review

  BRUSSELS, BELGIUM - Liberat Mfumukeko, the East African Community (EAC) Secretary General Ambassador was in Brussels last week to attend a High Level Committee of the European Development Fund (EDF). Created in 1957 by the Treaty of Rome and launched in 1959, the European Development Fund (EDF) is the European Union’s main instrument for providing development aid to African, Caribbean and Pacific (ACP) countries and to overseas countries and territories. The EDF funds cooperation activities in the fields of economic development, social and human development as well as regional cooperation and integration. The EDF meeting in Brussels brought together the Secretary’s General of the Common Market for Eastern and Southern Africa (COMESA), Inter-Governmental Authority on Development (IGAD), EAC , Southern African Development Community (SADC) and the Indian Ocean Commission(IOC), and EU representatives from Brussels. Amb. Mfumukeko asked the EU to consider priorities such as enhancing food security, income generation for employment to improve livelihoods. The Secretary General was accompanied at the meeting by Jessica Eriyo , the EAC Deputy Secretary General in charge of Finance and Administration who also led the EAC delegation during Technical meetings. The purpose of the high level meeting was to discuss the implementation of the EDF 11 under which EAC was allocated 85 million Euros for a period of 5 years. The resources were distributed as follows: Peace and Security (15million Euros), regional integration (45 million Euros), natural resources management (20 million  Euros), and institutional strengthening (5 million Euros). The 11th EDF was created...

Single Electronic Window: The new system will see a 30% reduction in transaction costs for the private sector Uganda Revenue Authority (URA) has launched the Uganda Single Electronic Window system. The new system will see a 30% reduction in transaction costs for the private sector, writes Juddie Kilungu. It will also reduce the average trade document processing time by 30% as it allows people involved in trade and transport to lodge standardised information and documents in a single entry point to fulfill all import, export and transit related regulatory requirements. These documents include custom declarations, trading invoices, applications for import and export permits and certificate of origins. The system reduces cargo clearance time by a factor of 5 and potentially leads to increases in collection of custom duties and taxes. Business people will now be able to submit documents to different regulatory agencies through a single port compared to the previous practice of moving from one place to another. The system will also reduce on paper work since business people will have to submit their papers online. It is also supported by a tracking system which monitors cargo from the point of entry to destination which avoids dumping and theft. The US$5 million project has been implemented by Trademark East Africa, a trade improvement agency and supported by DFID and DANIDA; the development arms of the British government and Royal Danish embassy respectively. At the launch (UeSW), at the URA main offices at Nakawa on Nov. 04, URA Commissioner General Doris...