Kigali — Reflecting efforts to boost intra-regional trade and investment, 26 African countries have recently agreed to establish a Tripartite Free Trade Area (TFTA) by January 2016. The TFTA agreement comprises the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC). With a total population of 638 million people and a total Gross Domestic Product (GDP) of USD 1.2 trillion, the TFTA will create Africa's largest free trade area. In one of the first papers to quantify the potential benefits from the TFTA, UNECA economists Andrew Mold and Rodgers Mukwaya suggest the TFTA could boost intra-regional trade by USD 8.5 billion. Particularly interesting is the fact that the economic sectors most likely to benefit are the industrial sectors - such as processed foods, light manufacturing and heavy manufacturing, providing an important impulse to regional industrialisation. The authors also speculate that, if the elimination of tariffs is accompanied by measures to remove non-tariff barriers and infrastructural deficits, the potential gains could be much larger. The TFTA is estimated to increase regional welfare by US$2.4 billion, with South African consumers being among the main beneficiaries. Other principal beneficiaries include Angola, D.R. Congo, Tanzania and Egypt. The paper also addresses concerns that industrial production in the TFTA may concentrate in the countries with the highest productivity levels - namely, Egypt and South Africa. The simulation results suggest that these fears are exaggerated, with little evidence of concentration of industries in the larger...

The East African Community (EAC), comprising Burundi, Kenya, Rwanda, Tanzania and Uganda has been urged to ensure full integration for inclusive growth in the region. Addressing East African Trade Union Confederation Youth Camp in Kisumu on Monday, Central Organization of Trade Union (Cotu) Secretary General Francis Atwoli said the integration is still very weak. Atwoli said while progress towards regional integration has been significant, the agenda is far from finished, pointing at many barriers. “We need free movement of people, goods and other services within East African countries. These barriers should be removed,” Atwoli said. He challenged Tanzania to remain optimistic and embrace the integration process to allow EAC to move in one direction. Atwoli said EAC was strong before it went down in 1977. He said the community was stronger in the past, noting that the new process started in the year 2000 and must ensure full integration to spur growth within the member states. The Cotu boss said no East African citizen should be denied work in the member states and opposed the quota system within the region. He said the system is discriminating and violates the rights of young people seeking employment opportunities within the region. “This quota system should be scrapped to allow young people to move freely and look for jobs anywhere they can find them within the region,” he said. Source: Hivisasa.com

ARUSHA, Tanzania, 05 October 2015 / PRN Africa / — The 6th African Grain Trade Summit with a clear agenda for regional grain trade in Africa, and with renewed commitments for creating an enabling environment for structured trade concluded in Kigali,Rwanda. The outcomes of the three-day summit reaffirms the regional grain sector actors' commitment to structured grain trade in Africa and sets out a clear agenda on different priority areas to be achieved within the next two years, when the next summit will be held.
 In a major push to create an enabling environment for the grain sector in Africa, His Excellency Paul Kagame, the President of Rwanda, pledged to continue to support the operationalization of the single customs territory through the Northern and Central Corridor Initiatives. The President's remarks were delivered on his behalf by the Right Honourable Prime Minister, Anastase Murekezi.
 Over 200 delegates from 14 countries including Tanzania, Kenya, Uganda, Burundi, Rwanda, Benin, Togo, Ghana, Malawi, Zambia, Namibia, South Africa, The Netherlands, Singapore, USA and Philippines attended the summit. The delegates, who represented the Government officials, private sector, traders, farmers, processors, financial institutions, civil society and development partners all committed to work together through Private-Public Partnership models to reduce the billions of dollars that get out of Africa through food imports. 
In his remarks, the Hon. Kanimba, Minister of Trade and Industry, appreciated the Eastern Africa Grain Council (EAGC) for organizing such a high level summit, noting that, “The 6th African Grain Trade summit that we are...

Uganda has always been a hub for transit business destined for Rwanda, the Democratic Republic of Congo and South Sudan due to its favourable location and Customs policy. Since the neighbouring DRC and South Sudan are landlocked and have also been unstable, businesses have generally opted to buy cargo through bonded warehouses in Kampala, thereby reducing the risk of storing large quantities in their own countries. However, this has changed with Uganda Customs bringing in new policies to discourage the re-export of cargo to neighbouring countries. Customs has recently introduced a new regulation that says cargo can no longer be automatically warehoused in Uganda and importers are to seek permission from Customs prior to warehousing; that permission will only be given at the discretion of the Assistant Commissioner Of Field Services. In the past, and in accordance with the EAC Act Rev 2012 (Section 57), all importers were granted a six-month warehousing period and a further extension of three months to find a market for the goods in the neighbouring countries. However, Uganda Customs is currently only giving 30 days and at times just seven days to warehouse and re-export the cargo. This time is not sufficient due to the regular political problems in the neighbouring countries. No prior notice was given to importers that the Uganda Revenue Authority was planning to amend the period of warehousing. Furthermore, under the single EAC tariff system, cargo going to Uganda could be directly warehoused on the strength of a single entry form...

The East African Community Secretariat has asked the International Monetary Fund for advice on how to harmonise its taxation policies as part of the ongoing regional integration programme. East African countries are seeking to harmonise their tax procedures in line with the EAC Treaty and the Common Market Protocol in order to boost investments and ensure free movement of goods, capital and labour in the region. So far, only Customs duties have been harmonised by setting a common external tariff (CET) in respect of imports into Kenya, Uganda, Tanzania, Rwanda and Burundi. Under the Customs Union Protocol, which came into force on January 1, importation of raw materials, capital goods, agricultural inputs and some medical equipment into the EAC attracts zero duty. Importers of intermediate goods and other essential industrial inputs pay a tax of 25 per cent while finished products attract 30 per cent duty. “We are asking for input from the IMF, which has experience and is able to give us advice on how best we can achieve tax harmonisation,” said Peter Njoroge, director of economics at Kenya’s Ministry of EAC Affairs. “It is a complex issue, because even the European Union has never fully harmonised its taxes.” In the EU, plans to harmonise VAT and excise duty date back to 1967 and the early ’70s, respectively, but member states are still free to agree on their own tax systems as long as they comply with the bloc’s rules. The structure of taxation in the EU differs significantly...

On the evening of August 3, as I left my office in the centre of the capital city Bujumbura, I barely saw the motorbike in front of me before the bullets shattered my windscreen and I was shot directly in the face. Less than two weeks before the attempt on my life, the incumbent President of Burundi, Pierre Nkurunziza, claimed victory in an election that was marred by violence and intimidation of the opposition, rights activists, journalists and voters themselves. I am no stranger to the peculiarities of Burundian democracy. As an active citizen, over the past 20 years, I have been harassed, threatened, arrested, imprisoned and beaten by the authorities. In Burundi, the exercise of democracy often means these things. As a human-rights activist, I openly condemned the electoral process, the president and the result. The United Nations and the African Union also declared that the ballot was neither free nor fair! Still, the bullet was my reward for exercising my democratic duty. When Nkurunzinza announced that he would seek a third term in office — violating both the Constitution and the Arusha Peace Accords that brought peace to my country after a decade of conflict — widespread protests prompted new levels of government repression, human-rights abuses and a crackdown on civil society. The violence forced many members of Burundi’s political opposition, independent journalists and human-rights defenders to flee the country. They fled for good reason. It is a miracle that my own decision to remain in Burundi did...

South African high commissioner Lekoa Solly Mollo has urged Ugandan companies to exploit trade opportunities in his country in order to boost bilateral relations. Mollo says the high commission is keen to help Ugandan firms understand the South African market. "In November, the high commission will take Ugandan companies on a business trip to South Africa. We will facilitate the trip, and this is aimed at promoting bilateral trade. The traders will be able to meet the South African business community where they can make contacts and see how business can be done between the two countries," he said recently. Mollo was speaking during the rebranding ceremony of NIKO general insurance to Sanlam General Insurance at Sheraton hotel in Kampala. Sanlam is a South African company; other South African investments include telecommunications (MTN Uganda), breweries (SAB Millers), finance (Stanbic bank). "A solid framework for cooperation exists between the two countries and the history of South Africa cannot be complete without mentioning Uganda. As an embassy, we have established an economic desk that is always operational," he said. South Africa's exports to Uganda include machinery, vehicles, plastics, chemicals, electronics, spare parts and accessories, books and newsprint, textiles, footwear, fruits, aircraft and household goods. At the ceremony, Gary Corbit, the chief executive of Sanlam General Insurance, said the rebranding will give clients the added comfort and security of doing business with a company that is well known in many African markets as a leader in general insurance, wealth creation, management and protection....

The Federal Republic of Germany and the East African Community (EAC) have concluded bilateral negotiations to boost regional integration in East Africa at the EAC Headquarters in Arusha, Tanzania. To highlight the strong commitment to supporting the integration process in East Africa, the Federal Republic of Germany has committed a total of 37 million euros in grants to the EAC for 2016- 2018 to include: 10 million euro in financial assistance will be invested in the establishment of a regional network of reference laboratories for communicable diseases. With this project, the German Government responds to a request for support from the EAC for the prevention and control of epidemic outbreaks in the region; Another 10 million euro in financial assistance will be used for Integrated Water Resource Management of Lake Victoria aiming at improving water provision and management of water resources and 17 million euros in technical assistance were committed to further support of the economic integration process, including a contribution to the EAC partnership fund. The programme is focusing on institutional strengthening of the EAC Secretariat and on supporting the implementation of the Customs Union, Common Market Protocols and Monetary Union. This includes the elimination of Non-Tariff Barriers such as tax harmonisation as well as Mutual Recognition Agreements for qualifications. At the same time Germany will support the EAC in promoting private investment especially in the pharmaceutical sector, including the establishment of a regional quality infrastructure for the pharmaceutical sector. Speaking during the negotiations, the EAC Deputy Secretary General...

President Obama’s heralding of Africa as a continent ‘on the move’ highlights a region characterised by economic growth and where business is playing a positive role in lifting millions of people from poverty. Various nations across Africa increasingly present major economic opportunities given growing consumer markets, relatively under-developed natural resources and widespread political and economic reforms. ‘On the move’ also works as a description for improvements in trade across the region. Sub-Saharan Africa (SSA) in particular has made major inroads into market openness. East Africa, to provide a clear example, is well-established as a bustling trade hub with Kenya at its heart. Yet it is also clear that progress is not uniform across the region, with the World Bank estimating that, on average, it takes 54 days, 10 documents and costs nearly $8,000 to import a single container into the Republic of the Congo, compared to 21 days, six documents and $2,080 cost incurred for a similar container into South Africa. The region as a whole has also experienced a major shift in terms of trading partners, with the conventional narrative of trade with Africa in recent years being a story of major investment by Asian trading partners. The region received 19 percent of its imports from Asia in 2004, but this had risen to 32 percent by 2013. Other trading partners across the Middle East, the UK, Europe and the US are keen to become more involved; look no further than President Obama’s trade visit and the renewal of...

About 80,000 traders in the region whose livelihoods depend on cross-border trade are set to find issues such as queuing, corruption and unfair taxes tackled through a $79 million World Bank grant. The funding will support the Great Lakes Trade Facilitation Project which aims to reduce costs faced by traders in east Africa's surrounding border areas. It will also help to develop regional markets near border crossings and facilities to handle an increased flow of goods, services, and people, as well as provide resources to strengthen government agencies at the border to deliver better quality and efficient services. "Regional approaches to trade facilitation are critical to leverage national efforts," said Makhtar Diop, World Bank Group Vice President for the Africa Region. "The three Great Lakes countries included in this project share similar challenges that must be tackled through collective action, and borders are the solution provided they are safe and enable traders to do business in a conducive environment." Hindering growth According to the financial institution, "inefficiency and corruption persist at border crossings, imposing a significant drag on the regional economy, particularly for small traders, 8 out of 10 of whom are women." Key markets are situated across the border and informal cross-border trade plays a major role in linking small producers to markets. Border crossing points, such as Petite Barrière in Goma, DRC, which averages 20,000 to 30,000 crossings a day, can become major bottlenecks for traders trying to reach potential buyers. Teeming border crossings such as Kasindi and...