African countries can boost growth by cutting tariffs and removing "soft" barriers to trade, while still supporting their industries without completely protecting them. Imagine you are a Malaysian truck driver. In the back of your truck is a big cargo of stinking durian fruit. The Singaporean border heaves into view. What will happen? Will you pull over and fill out some paperwork? Wait around to get the documents stamped – hours spent in the sun – with your precious durian rotting in the back? Of course not. Africa needs to realise that its future lies within the continent You whip out your smartphone and send your pre-filled cargo passage form. It is immediately routed through the relevant ministries in Singapore. The authorities e-stamp the form and send it back to your smartphone. Beep. Job done. No need to stop. You don't even need to slow down. Welcome to Singapore. The benefits of frictionless trading with neighbours seem clear. The farmer buys more inputs with the money saved on transporters, and the consumer gets fruit cheaper, allowing him to spend more on other items and boost the economy. The trucker also has more time to carry other loads. Africa is not quite there yet, and border crossings often involve waiting. Of Africa's total trade, just 11% of it is done within Africa, compared to 50% intraregional trade in developing Asia and 70% in Europe. The world economy is going through a period of slower growth, just as tens of millions of young Africans...

The World Bank has assured it will work with the East African Community (EAC) partner states to help the economic community achieve full integration. The World Bank programme Manager for South Sudan, Jean Lubega-Kyazze told Xinhua in Nairobi that the project will begin before the end of 2016 and will take three years to complete. She explained that the project aims at helping the EAC overcome the constraints that have prevented full implementation of the EAC Common Market protocol. “We have identified the constraints that each country needs to overcome in order for the EAC to be fully integrated. Each country is unique and therefore has different constraints,” she added. According to the financial institution, regional integration holds a lot of promise for the partner states. “It will create a seamless market for goods produced in each member state,” Lubega said. The programme manager observed that one of the key constraints to full integration is the lack of integration of regional policies into national policies. “So national policies don’t reflect what has been agreed upon at the EAC level and it is common to find cases where national policies don’t include positions reached upon at the regional level,” she added. EAC Common Market Protocol was signed in 2010 but the trading block is yet to fully liberalize the free movement of goods, services and labour. EAC member states include Kenya, Uganda, Tanzania, Rwanda, South Sudan and Burundi. Source: Africa News

The growth in trade with Uganda resumed in earnest after the conclusion of elections in March according to the bank. “It’s business as usual in Uganda after the conclusion of elections in February and hence Kenya’s manufacturing exports have been robust,” said Jibran Qureishi, regional economist for East Africa at CfC Stanbic Bank. The lender forecast that the completion of the standard gauge railway will further increase the trade with Uganda. The railway line is set to reach Nairobi by mid next year. The railway is planned to be extended to Kisumu and Malaba at the border with Uganda. “As regional infrastructure is bolstered, through developments such as the standard gauge railway, we believe this avenue will continue to show more promise in the coming years,” said the bank. The improvement in trading will come as a relief for businesspeople since Uganda has traditionally been Kenya’s single largest export market. There has also been considerable unease following the government’s failure to clinch an oil pipeline deal to transport Uganda’s oil through Kenya. The deal instead went to Tanzania. The latest Purchasing Managers’ Index (PMI) data released by CfC Stanbic indicates a turnaround in growth of Kenya’s private sector, following a substantial slowdown at the end of the first quarter. The PMI picked up from a five-month low to signal robust improvement in business conditions. “Business conditions improved at a solid pace, helped by sharp expansions in output and new orders. Notably, the rise in total new business was boosted by...

Ugandan goods just got a whole new playground on the European market after the East African Community and the European Union ended negotiations on the Economic Partnership Agreement (EPA) after more than a decade of talks. Kristian Schmidt, the head of delegation of the Europe Union in Uganda, says EPA is about to enter into force and that, when it does, the conditions to trade and invest will be easier for the countries in the EAC region and those in the EU. “The trade negotiators have done their duty. The European markets are open to East Africa business community,” he said recently. “Exports originating from Uganda and the entire EAC will enter the market of all EU member states without paying customs duties and without limitation in quantities, for an indefinite time.” Schmidt was addressing a press conference organized by the European Business Forum (EBF), which was intended to announce the forthcoming European Business Expo and Food festival to be held in Kampala starting today, May 6. Schmidt added: “So, this leaves the door open for any company operating in Uganda to export freely; no customs duty to an integrated, single market of 28 European countries, with 508 million consumers with considerable purchasing power.” According to Schmidt, Uganda and EAC partner states have committed to partially and gradually reduce, and eliminate, customs duties on selected imports originating from the EU. “That means EAC operators can import from Europe more strategically. They will be allowed to buy duty-free, thereby at a...

Kampala — Tanzanian High Commissioner Ladislaus Komba has launched the registration of participants in the Afrika Mashariki Fest (AMF) half marathon, which will take place on May 29. The run will start and end at Kololo Independence Grounds. While addressing the press after the launch on Sunday at Nakumatt Acacia Mall in Kololo, Kampala, Dr Komba, who signed up for the 10km run, said the launch was meant to inaugurate the half marathon for the Afrika Masariki Fest initiated by the youth to promote the East African Community (EAC) integration. "The aim is to promote awareness, understanding and support our leaders in the integration process and to me, any process that is aimed towards the integration of our countries is welcome and I am proud to be part of it," he said. Dr Komba further said the Afrika Mashariki Fest (AMF) initiative is also intended to promote youth development and job opportunities and will also focus on protection and conservation of Lake Victoria, the region's largest water body. The AMF chief executive, Mr Kisembo Ronex Tendo, while addressing the press at the launch, said the event is a non-partisan voluntary youth platform that seeks to promote the regional integration of the six EAC member states. "We, therefore, seek to engage them across the region to embrace the EAC integration process through art, sports and civil society advocacy as our platforms," he said. Key athletes invited He said the run is expected to involve elite athletes with 10 from Addis Ababa,...

That Tanzania beat out Kenya to carry Uganda's oil to international markets owes much to economic and security concerns, but also to plans for regional integration. Plans for a 1,410-kilometre heated pipeline from Hoima in western Uganda to Tanzania's deep water port at Tanga have been chosen to carry Uganda's oil to international markets, over the initially favoured 'northern route' through Kenya. Heavy lobbying by international oil companies, changes in regional politics and Kenya's fragile security situation seem to be major reasons behind Kampala's change of heart. But by engaging a member long seen as a hindrance to integration efforts, a cross-border project with Tanzania could also help spur the development of the East African Community (EAC). How the Kenya deal fell through On 10 August 2015, the presidents of Uganda and Kenya publically agreed to jointly develop a pipeline, depending on Kenya meeting a number of conditions. The choice of the 'northern route' via Hoima-Lokichar-Lamu was portrayed as a contribution towards closer East African integration - a key political goal of Uganda's President Yoweri Museveni. The proposed pipeline was also politically important for Kenya's government, as it would have helped to justify the huge $25 billion cost of the Lamu Port-South Sudan-Ethiopia Transport Corridor (LAPSSET) development - a flagship project for Kenya's President Uhuru Kenyatta, holding increased significance in a pre-election year. But progress on the Hoima-Lokichar-Lamu pipeline was contingent on Kenyan guarantees, on the security of the pipeline within Kenya, project financing, swift implementation and low tariffs. Perhaps...

Arusha — East African Community (EAC) is facing a precarious financial situation and the new secretary general, Mr Liberat Mfumukeko, has put workers at the headquarters on notice, telling them to get ready for drastic changes. Speaking at a welcoming party organised at an Arusha hotel last week, Mr Mfumukeko said owing to the alarming financial state the regional body was going through, he was forced to take radical changes for the organ to survive. He made it clear that the EAC secretariat was operating on a shoestring budget because its donors, who accounted for about 70 per cent of its budget, had lagged behind in fulfilling their promises by at least 30 per cent. Though he is generally regarded as a less talkative person, the maiden speech the newly appointed East African Community (EAC) Secretary General gave painted him as a no nonsense person geared towards bringing much-needed changes on the way the EAC Secretariat and the community in general operates. Among major priorities, Mr Mfumukeko said he would concentrate on and push for full implementation of protocols and agreements signed or ratified by the EAC partner states, specifically the Customs Union, the Common Market and the East African Monetary Union protocols. He also made it clear that he favoured fast-tracking the integration of South Sudan, a new member of the bloc, into activities, programmes and projects of the EAC. At the same time, he said during his welcoming party by the staff of the community that he would...

DAR ES SALAAM May 4 (Reuters) - Tanzania said on Wednesday it was planning to build a pipeline to supply natural gas to neighbouring Uganda as it looks to export some of the huge offshore gas reserves discovered in recent years. East Africa is a new hotspot for hydrocarbons exploration after substantial oil deposits were found in Uganda and major gas reserves discovered in Tanzania and Mozambique. The gas pipeline is the latest move to deepen commercial ties between Tanzania and Uganda which said last month that it would ship its crude oil via a pipeline through Tanzania to Tanga port. "Several east African countries have asked to buy gas from Tanzania... to start with, the (Tanzanian) government plans to build a gas pipeline to Uganda," Tanzania's energy and minerals ministry said in a statement. Tanzania announced in February it has discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits in an onshore field, raising its total estimated recoverable natural gas reserves to more than 57 tcf. Officials said the government was already seeking funding for the project, but did not reveal how much it would cost. The time frame for the project would depend on the availability of funds but work would start immediately after funding was secured, according to the statement. Tanzania last year commissioned a 532 km (330 mile) pipeline and gas processing plants from gas fields south of the country to its commercial capital Dar es Salaam, financed by a $1.2 billion...

Trade issues took centre stage during the 103rd session of the Council of Ministers of the African, Caribbean and Pacific (ACP) Group of States, which was held on 25-29 April in Dakar, Senegal. Ministers discussed prospects regarding the Economic partnership agreements (EPAs) still under negotiation with the European Union, as well as issues related to trade in various commodities, such as fishing products and sugar, among others. Ministers also expressed their determination and enthusiasm in advance of the upcoming Summit of Heads of State and Government of ACP countries, which will take place in Papua New Guinea from May 10 to June 1. Hopes are high that the meeting will provide the needed political mandate to rejuvenate the organisation, as well as a foundation on which to build productive engagement regarding the future of the relations between the EU and the ACP Group. The meeting of ACP ministers was followed by a session of the ACP-EU Joint Council of Ministers, which gathered ministers from ACP countries and their counterparts from the European Union. A call for flexibility on the Economic partnerships agreements During the meeting of the council, ministers of the ACP Group agreed on a resolution regarding the Economic partnership agreements between the different ACP regions and the EU. The EPAs are reciprocal – although asymmetrical – trade agreements between the EU and seven ACP regions, namely Central Africa, Eastern and Southern Africa, the East African Community, the Southern African Development Community, West Africa, the Caribbean and the Pacific....

The new East African Community secretary general, Mr Liberat Mfumukeko, has assumed his duties with a promise to turn around the cash strapped regional body. It is not a secret that the new executive comes at a time when the EAC secretariat is operating with a shoestring budget, 70 per cent of which is donor funded. It means that, what the member countries raise a mere 30 per cent of a budget, and that isn't good enough to keep the integration dream alive. It therefore goes without saying that if EAC continues to operate this way, there is no way the six countries will attain the intended unity any time soon. Mr Mfumukeko, who had been an employee of the secretariat for before his elevation to the helm, has vowed he will work on this sorry state. We hope the EAC states will take this as a wake-up call and find ways of raising funds with which to benefit their people. The statement by the new boss in Arusha means EAC members should aim to make sure donor dependence in running their regional affairs is reduced to a minimum or scrapped altogether. We believe this is possible. If individual countries device and implement strategies to reduce with donor dependence, why shouldn't they do the same at the regional level? What is needed is for the partners to the community to support the new boss who has shown he is determined to make EAC independent. If we want to make the...