KAMPALA, Uganda - The EAC acknowledges the need to rationalise rail development within the region and to harmonise road and rail transport operations along the main corridors and has therefore, prepared an East African Railways Master Plan to guide the future development of the railway services in the region Railway transport is the second most important mode of transport after road and critical for long distance freight along the main transport corridors in both Tanzania and Kenya. Tanzania has a total of 3,676 km of railway lines operated by two railway systems, Tanzania Railways Corporation (TRC) and Tanzania – Zambia Railways (TAZARA). Due to poor conditions of tracks and ageing rolling stock and locomotives, tonnage freight volumes and passenger numbers have continued to fall every year (from 60% of port cargo in the 70s and 80s to 7% currently).  The World Bank and the AfDB have committed funds for the development of the infrastructure. In order to alleviate the problems of the sub- sector, the governmentd have turned to public /private sector partnership (PPP) while retaining public ownership of the infrastructure and regulation. Kenya has a rail network of 2,778 km of lines. The mainline connects the Mombasa port to Nairobi and to the Kenya / Uganda border at Malaba. The network carried 4.5 million tons of freight per year in the early 1980s but declined to 2.0 million in 2005.  Passenger traffic however has been increasing steadily from 1.8 million in 1971 to 4.8 million. Even though the freight...

Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and Rwanda on paying a fee of $100 (Sh10,600); Tanzania and Burundi are not party to the deal. Chief tourism officer of Rwanda Development Board said this illustrates that easing the visa process can significantly increase the uptake of the region’s tourism products. “Kenya and Uganda had to revise their visa fees in favour of the harmonised visa charges. It takes political will for that to happen and it’s good that our three leaders are committed to the process,” she said. Carmen Nibigira, the regional co-ordinator for the East Africa Tourism Platform, added: “We tour over a dozen countries in Europe using the Schengen visa. There is no reason East Africa should have restrictions when visiting all five countries.” Kenya Association of Hotel Owners and Caterers CEO Mike Macharia called on regional airlines to lower fares to enable more passengers take advantage of the new visa regime. Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and...

The World Bank is short of Sh14.2 trillion for continued support of Africa’s infrastructure projects and emergencies. The World Bank Vice-President for Development Finance Joachim Von Amsberg asked for the support of members of the African Caucus (African Governors of the World Bank Group and the International Monetary Fund) to raise funds to replenish the International Development Association (IDA). "We have a large portfolio, a series of projects in preparation that will drive private investment. These are projects for which there is great demand and we are seeking to mobilise possible resources,” said the World Bank VP in a statement. Kenya in the East African region and Nigeria in West Africa have some major infrastructure projects that require a lot of funds. The countries largely rely on World Bank for funding. EBOLA Kenya’s road network urgently needs improvement. The country is considered among the World’s fastest growing economies. It has earmarked Sh5.5 trillion for infrastructure development. The donor blamed Ebola outbreak, floods in Malawi and the earthquake in Nepal as well, for depletion of a three year fund that got exhausted in the first year. RAED: World Bank releases Sh54bn for Kenya-S. Sudan road The funds meant to replenish accounts of World Bank, officially referred to as Official Development Assistance (ODA) are usually capped at Sh5.5 trillion. However, World Bank has stretched its request quoting the emergencies that still need attendance. According to Mr Amsberg, the funds help by maximising impact on development, leveraging public and private resources, in addition...

East Africa has emerged at the leader in mobile payment over the years, with countries like Kenya having more than two-third of its adult population using mobile phones to transact. With the mobile money market in sub-Saharan Africa expected to double by 2019, lack of interoperability between telecoms operators and cross-border restrictions has stood out as one of the key challenges that face the growth of the revolution. According to a Wall Street Journal report, some of the continent’s biggest telecoms are striking deals to allow their customers to make payment across networks and country borders, something that cemented the region as a leader in mobile financial technology. In January, East African nations of Kenya, Rwanda and Uganda, signed a One Area Network Agreement (OANA) to help improve cross-border telecommunications and expand the scope of mobile money transfers in the sub-region. “We are now exploring how we can have the One Area Network infrastructure grow from voice to data and mobile money transfer. We want you to be able to move money from your M-Pesa account here to a relative in Kigali and vice versa or from Airtel Uganda to Safaricom in Nairobi,” Fred Matiang’i, Kenya’s Communications and Technology minister, said. London-based Vodafone Group and South Africa’s MTN Group hatched a deal that allowed their customers in East and Central Africa to transfer money to each other. Millicom also announced it would allow its customers in Tanzania and Rwanda to send money to each other. These telecoms are eyeing the...

By Ben Gasore The East African Tourism Platform (EATP) has pledged to continue marketing the region as a single tourist destination, as well as take a leading role in conservation efforts to create a sustainable tourism industry in the region. EATP comprises of the East African Community (EAC) countries' tourism boards and tour operators. "We are moving into packaging the region as one destination, celebrating flagship tourism events and finding solutions to challenges together, which wasn't happening before," said Amb. Yamina Karitanyi, the chief tourism officer at the Rwanda Development Board. Amb Karitanyi was speaking during a meeting that brought together EAC tourism boards officials and tour operators to discuss opportunities and challenges facing the region's tourism sector in Kigali over the weekend. The meeting coincided with the annual 'Kwita Izina' ceremony on Saturday, where 24 baby gorillas were named. The annual flagship tourism event in Rwanda was moved from June every year to September as part of a joint tourism promotion initiative established under a tripartite agreement between Rwanda, Kenya and Uganda. Under the deal, each member country has a period to focus on a flagship tourism event. Kenya was allocated October, where they host the Magical Kenya Expo, and Uganda took June when it hosts Uganda Martyrs Day on June 3. "As stakeholders in Kenya, the most important thing is that we are now taking this step. We started with Magical Kenya in October as an anchor flagship programme to market the three destinations and we have so...

Dicksons Kateshumbwa, Commissioner of Customs at Uganda Revenue Authority, said consignments of sugar cleared in Mombasa for warehousing in Uganda are now handled under the Single Customs Territory (SCT) arrangement — which allows for joint collection of customs taxes by the East African Community (EAC) partners. Uganda has also added containerised refined edible oil, second-hand clothes and shoes as well as alcoholic and non-alcoholic drinks for clearance under the seamless tax system. “In addition, SCT clearance procedures will also be extended to containerised cargo of the following products; bitumen, cement, steel and steel products with effect from September 7, 2015” Kateshumbwa further said in a notice to traders. Under the SCT deal that began in 2014, importers of commodities are required to lodge the import declaration forms in their home country and pay relevant taxes first to facilitate the export process. The tax authorities in the respective countries would then issue a road manifest against the import documents submitted electronically by the revenue authority of the importing country. READ: Kenya, Tanzania add more goods to joint taxation pact ALSO READ: How cargo clearance will change from July 1 Clearing agents within EAC have been granted rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping. Several commodities including petroleum, steel, edible oils, confectionery and milk are currently traded between Kenya, Uganda and Rwanda under the SCT platform. Cement, cigarettes and neutral spirit were...

East Africa is the fastest growing sub-region on the continent, with economic growth expected to expand by 5.6% this year, well above the continental average of 4.5% or Southern Africa’s 3.1%. But in an odd contradiction to regional growth trends, East Africa’s infrastructure is one of the least developed in Africa. Infrastructure development is thus paramount for the sub-region to reach its full potential and many ‘mega’ infrastructure projects are currently under way in the region. By LYAL WHITE and ADRIAN KITIMBO. Kenya’s standard gauge railway (SGR), a new rail track that will stretch from Mombasa to Nairobi, is the most ambitious infrastructure project in the country since independence. The 609km-long line is expected to cost $3.6-billion, with China’s Exim Bank footing 90% of the bill and the Kenyan government providing the other 10%. The SGR is part of the grand trans East African railway project, one of many ‘mega’ infrastructure projects currently under way in that region. It is a direct effort to connect East Africans and their economies, and in so doing build economies of scale, lower the cost of doing business, attract foreign investment and ultimately accelerate growth and development. East Africa is currently the fastest growing sub-region on the continent. With economic growth expected to expand by 5.6% this year, well above the continental average of 4.5% or Southern Africa’s 3.1%, investors and credit rating agencies are increasingly bullish about the region. In an odd contradiction to regional growth trends, East Africa’s infrastructure is one of...

At the beginning of this month, businessmen, policy makers and other economic stakeholders from within East Africa and across the globe convened at the Speke Resort Munyonyo in Kampala for the first ever high-level Manufacturing Business Summit and Exhibition in the East African Community. The fact that the forum was held at Speke resort, with its colonial undertones and heritage, reflects the fact that Africa is still grappling with the legacy of colonialism, especially the effects of national boundaries arbitrarily drawn up so many years ago in Europe, without recourse to local culture or historical affiliations. It also illustrates how these boundaries continue to affect the economics, trade, immigration and geopolitics of these former colonies. How so? For many nations in Africa today, it is easier to trade with Europe, America or China than it is to trade across what for many is an imaginary line in the sand denoting two different countries. Yet there are individuals and companies grappling with how to extend their business beyond borders, setting precedents for those wishing to realise the pan-African dream. The timing of the forum was also apt, coming at a time when many companies have embarked on regional expansion programmes that will see them grow their footprint across the East African market of more than143.5 million people. This ability to operate across borders is important. Cross-border trade within the region brings in economies of scale and enables research and development for a bigger market. According to experts, including the World Bank,...

Uganda risks getting a bad World Bank competitiveness ranking next year due to the failure by parliament to strike out 56 business formalisation licences considered unnecessary. Kampala got $100 million from the World Bank in 2013 to improve competitiveness and enterprise development and has since been trying to reduce red tape, but parliament has not acted on recommendations to reduce bureaucratic bottlenecks. Bemanya Twebaze, registrar-general at the Uganda Registration Services Bureau (URSB), said that even with the money, the country will probably perform poorly in next years’ Doing Business Index due to parliament’s failure to act on the recommendations. Mr Twebaze said that Uganda has failed to achieve the desired progress, as challenges still exist in resolving insolvency, getting electricity and paying taxes — the things the World Bank factors into its report. Uganda improved by two places from 152 in 2014 to 150 in the last competitiveness ranking, behind Rwanda, which was ranked 46th globally; Tanzania at 131 and Kenya at 136. Frank Ssebowa, executive director of the Uganda Investment Authority (UIA) said he was frustrated at parliament’s refusal to drop some of the licences that government officials wanted dropped, saying it reduced the country’s capacity to attract investors.  Mr Ssebowa said Uganda has been regressing in the Doing Business rankings from the 120th position in 2012 to 150 now and that parliament’s actions will worsen the rating. Information from URSB shows the government attempted to have parliament repeal 56 licences to ease business formalisation at the budget process in...

The East African Community is pushing for a long-term preferential trade agreement with the United States that will remove uncertainties surrounding the Africa Growth and Opportunity Act (Agoa). The five member states have submitted their request to the United States Trade Representative (USTR) on the modalities and the time to start negotiations on the pact. According to EAC Director General of Customs and Trade Peter Kiguta, the USTR is expected to present the request at the next US Congress meeting. If accepted, the region expects to increase the volume of trade and the number of products exported to the US. “For EAC partner states to expand their trade partnership with the US market, there has to be a reciprocal free trade agreement like the one with the European Union,” said Mr Kiguta. READ: Region to export products under Agoa as a bloc “The challenge with Agoa is that it is unilateral; it can be withdrawn any time and the 10-year period is very short and limiting for trade. So we need to have a long-term trade partnership that is more predictable,” he added. Peter Njoroge, the director of economics at Kenya’s Ministry of EAC Affairs, Commerce and Tourism, said that the East African countries have not been able to fully utilise the US quota-free market under Agoa because the agreement does not comply with the World Trade Organisation’s framework for free trade agreements because of its 10-year period of operations.  With a preferential trade partnership like the EAC-EU Economic Partnership Agreement (EPA), Mr Kiguta said member states will be...