A worker from Naivasha based at Van den Berg flower farm prepares roses for export to the European market ahead of Valentine. [Photo by Antony Gitonga/Standard] Last week’s EAC leaders’ meeting called for further negotiations on crucial trade treaty whose absence threatens the future of country’s exports to EU. Kenya will have to wait a little longer for a breakthrough in the crucial Economic Partnership Agreement (EPA) deal after regional leaders called for further negotiations with their European counterparts. It emerged yesterday last week’s 19th Ordinary Summit of the East African Community (EAC) Heads of State in Uganda failed to reach a compromise on the trade treaty after the matter was deferred. The leaders resolved that their host Ugandan President Yoweri Museveni - who as the Summit chairman late last year led a delegation of EAC leaders to Brussels to push for a new deal - returns to the negotiating table. “The summit President visited the EU and engaged with them and raised the issues and a response was given. Some of the issues still lacked satisfactory answers and the summit agreed that he should go back for a second visit,” said new East African and Northern Corridor Cabinet Secretary Peter Munya in Nairobi when he took over office from his predecessor Phyllis Kandie. During the September last year meeting, Museveni was mandated to engage with the EU to address concerns that some EAC partner States had on signing the EPA as a bloc. Kenya has put up a...

NAIROBI, Kenya-- More than 2.5 billion people around the world, many of them in Africa, lack formal identification that enables them access to financial and government services, this is according to the United Nations and the ID2020 project. What’s more, less than 10% of adults in low and middle-income countries are on file in public credit registries. The result is that millions of people in East Africa are paying punitive interest rates for credit or are frozen out of access to financial services. Microfinance institutions (MFIs) in the region charge their borrowers notoriously high interest rates, often up to 30% per year.  This is partly because these lenders face a higher risk of loan defaults than mainstream banks due to a lack of borrower data to support lending decisions. MFIs in frontier markets have traditionally needed to make lending decisions without access to the sort of customer data and documentation commercial banks take for granted: credit scores, identification documents such as passports or government ID cards, bank statements, lending history and collateral. Fintech providers, financial inclusion companies and digital finance applications are filling this information gap with alternative credit data. Credit scoring applications like Tala in East Africa, for example, collect masses of data about phone owners and use these data points to produce accurate credit scores. This alternative credit data could help the credit officers at microfinance banks (MFBs) and MFIs who make lending decisions to make more accurate predictions about loan performance. This could, in turn, help improve collection...

The commitment by President Uhuru Kenyatta and his Tanzanian counterpart, Mr John Pombe Magufuli, to have trade and bilateral issues between the two countries resolved is an important step towards enhancing the free movement of goods and services in the East African Community (EAC). Even though the presidents described the recent cross-border hostilities as small differences, traders and investors have been worried about their future stake in the regional market. Resolving the dispute, which restricted the movement of goods, livestock and people across the common border, is critical to deepening trade and exchange among the six EAC countries. Kenya and Tanzania, being the two largest economies, should ideally be driving the EAC integration that includes Uganda, Rwanda, Burundi and South Sudan. FOOD SECURITY Kenya and Tanzania need each other in many key areas. One is food security — which is on President Kenyatta’s ‘Big Four’ agenda to transform the economy in the next five years. Kenya is a food deficit country, as 80 per cent of its land is arid and semi-arid and frequent, prolonged droughts, have increased its dependency on food imports. Tanzania is better endowed, with large tracts of arable land and a fairly good weather. It is least affected by the recurrent Horn of Africa drought that mainly hits Kenya, South Sudan, Somalia and Ethiopia. The latest Famine Early Warning System (Fews) network report shows Tanzania has minimal food challenges — except for areas occupied by refugees on the Burundi border. FOOD PRODUCTION Food production data shows...

The Continental Free Trade Area (CFTA) was adopted during the last African Union Summit. It will bring together the fragmented three main organisations;the Common Market for Eastern and Southern  African countries (Comesa), the East African Community and the Southern African Development community. It is a combined market of over 1.2 billion people, the largest in the world but which, unfortunately has not transformed into intra-African trade as is the case of the European which is half of the market. Sometime this month, the inaugural CFTA summit is scheduled to be held in Kigali which coincides with President Paul Kagame occupying the chairmanship of the AU. A free trade area that encompasses the whole continent will be a milestone in an area that has a combined GDP of over $3 billion that is lying to waste. Most African countries have been conditioned to depend on foreign aid yet they are the source of developed countries’ bouncing health. Is this now time for the sleeping giant to wake up? That will only be informed by the commitment of those who will attend the CFTA summit. Africa leaders cannot afford to just meet, talk, go home and throw the signed agreements in the bottom drawer. It has to act and put aside the various foreign interests that have been calling the shots as people wallow in poverty. It is an embarrassment, if not an affront its people, when an African country rich in resources goes around with a begging bowl as its riches...

East African Community (EAC) member states are racing against time to finalise talks on proposals to lower age limit for imported used cars by 2021. The move to slash age limit to five years is informed by the urgency to spur the growth of motor assembly industries. At the just-concluded Heads of State Summit in Kampala, it was agreed that the process should be accelerated. Talks on harmonisation of age limits for imported vehicles and setting up assembly plants had been put on hold following recommendations of a study by EAC Committee on Industrialisation and Japan International Co-operation Agency, which said such undertaking (harmonisation process) would be grim without reducing the number of vehicles imported into the region. According to the proposals, the six countries — Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan — will reduce age limits for imported vehicles to five years by 2021. But it is understood that some countries are yet to ‘make up their minds’. Their indecisiveness is now holding back the entire process, according to sources familiar with the matter. Rwanda, Burundi, Uganda and South Sudan would be the most affected because they do not have age limits set on such imports, while Tanzania and Kenya have their limits set at 10 and eight years respectively. Kenya favours the five-year age limit and has previously cautioned other partner states that they are likely to meet resistance during negotiations. “A further review of age limit to five years, would be crucial in luring investments...

Kampala, Uganda | AGENCIES | Construction of a new logistic hub in Gulu, northern Uganda, completion of a One Stop Border Post along the Uganda-Democratic Republic of Congo (DRC) frontier, improvements at Entebbe International Airport and decentralisation of standards laboratories across the country are TradeMark Africa’s (TMA) priority projects between now and 2023. “When you look at the clearing system at Entebbe Airport and compare it with the other airports, Uganda is still lagging behind. We are going to help in building an automated clearing system so that there are no delays in terms of time and money spent at the airport by traders,” TMA Country Director for Uganda, Moses Sabiiti, said during a news conference recently. Set up in 2010, TMA is an East African not-for Profit Company limited by guarantee to support the growth of trade – both regional and international. It is focused on ensuring gains from trade resulting in tangible gains for East Africans. It is also the main channel for major foreign donors to support regional integration through increased cross-border trade.  Sabiiti said work on the Gulu facility is already underway in terms of designs and plans are that upon completion it will become a major clearing spot for exports with the capacity to handle 500,000 containers. “Trucks have been bringing goods in Uganda and going back to Sudan empty because there was no gazetted spot for clearance of returning trucks. This facility will allow major agents to clear goods for export. This will improve on...

Banning the import of second-hand clothes is not the answer to reviving East Africa’s textile industry. But the deal to phase out the imports also hands another political score to the US, writes DW’s Isaac Mugabi. The move to not ban the sale of second-hand clothing was a relief to petty traders. In 2015, Kenya, Rwanda, Uganda, and Tanzania agreed on a three-year plan to gradually phase out the importation of second-hand clothes and apparel from the United States in particular. Taxes were increased exponentially on second-hand clothes to deter more imports and a complete ban was to take effect in 2019. But the ban would have come at a heavy price.  Sensing the danger, the Trump administration acted fast and issued an ultimatum for 23 February 2018, for these leaders to rescind their plan or face the consequences. The US did this to protect its second-hand export sector. And on that date before the ultimatum expired, leaders from the East Africa region, with the exception of Rwanda’s Paul Kagame, met in Kampala to discuss the repercussions. In the end they caved in to US demands. However, the trade deficit for many African countries is instantly recognizable. Imports from Rwanda, Tanzania, and Uganda to the US totaled $43 million (€34 million) in 2016, while US exports to the same countries amounted to $281 million, according to figures from the office of the United States Trade Representative (USTR).   This is not fair trade as preached by the Americans and Europeans, and this is why...

Forum will deliberate on key trade bottlenecks in East African region, new funding systems, opportunities in e-government and facilitating women in trade TradeMark Africa (www.TradeMarkEA.com) will for the next two days host a regional trade forum (https://EATDF.trademarkea.com) at Speke Resort and Conference Centre in Munyonyo, Uganda. Uganda President H.E Yoweri Kaguta Museveni will open the event. The forum is expected to address key issues around trade facilitation – including achieving results through partnerships, Information Communication and Technology for Trade, the future of East Africa’s infrastructure, increased participation of women and trade in East Africa among others. The event comes at a time when TMA is starting its second phase (2018-2023) with a budget of about $380 million for infrastructure development, trade facilitation and private sector growth. This serves as an opportunity to reflect on the progress that East Africa has made and the priorities that the region should focus on to unlock its potential and compete in global trade. Speaking before the event, TradeMark Africa, Chief Executive Officer, Frank Matsaert noted: “We have come a long way as a region. We have made significant gains in reducing trade bottlenecks to grow prosperity in East Africa. Through the forum, we will be reviewing achievements made so far and exploring solutions to key trade challenges. Key speakers that will be present at the forum include - H.E President Yoweri Kaguta Museveni, US Ambassador to Uganda Ms. Deborah Malac, Denmark Ambassador to Uganda Mr. Mogens Pedersen and Finland Ambassador to Kenya Ms. Tarja...

KAMPALA Uganda (Xinhua) -- Ugandan President Yoweri Museveni and his Kenyan counterpart, Uhuru Kenyatta, jointly commissioned the Busia one-stop border post (OSBP) on Saturday, enabling faster cargo clearing between the two countries. The Busia OSBP added to entry and exit points already operating under the Coordinated Border Management Concept (CBMC). Busia one-stop border post is the second busiest entry point in Uganda, approximately 200 km east of Kampala and 431 km west of Nairobi, Kenya’s capital. The border handles transit traffic to and from the Great Lakes Region of Uganda, Kenya, Rwanda, Burundi, Democratic Republic of the Congo and South Sudan. President Museveni said the one stop border post arrangement is expected to allow freer movement of people between the two neighboring countries. He, however, warned border officials against inhibiting cross-border movements, adding that the OSPB comes in handy in spurring regional trade. “Trade facilitation such as OSBP, would result into prosperity because it allows the border communities as well as the two countries to do business and create wealth among themselves,” Museveni said. The Busia OSBP will bring together immigration and customs officials from two neighboring countries under one roof at border crossing points. Uganda Revenue Authority (URA) and Kenya Revenue Authority (KRA) officials will jointly attend to importers, exporters and travellers from either side of the border under one roof. This means that transit goods, passengers, travellers and exports exiting through Busia to either Kenya or Uganda, stop once for clearance by immigration and customs officials and not...

President Museveni and his Kenyan counterpart Uhuru Kenyatta on Saturday commissioned the one-stop border post at Busia. According to Museveni, the border will boost trade between the two countries and speed up the integration process for East African states. He reiterated that the people of East Africa should move freely and do business in any East Africa state without fear. “We are brothers and sisters but unfortunately, colonialists came and divided us but what God put together, no man can temper with it,” he said. He added, “It is bad to divide people’s families leaving some members on one side and others on the other side. Why should people be divided by mere borders put up by colonialists?” President Museveni said that the one-spot border post will ease immigration and customs work, opposed to the old system of continually asking truck drivers to open their truck doors for checks on either side of the border. The border post worth $12 million (Shs44 billion) was constructed by Cross –border business advisory organization, Trade Mark East Africa (TMA) with funding from UK Department of International Development (DFID) and the Global Affairs, Canada. It has combined the traditionally two-stop borders into one, as well as consolidated other border control functions into shared spaces between the two countries for exit and entry points. “I repeat what I said while swearing in, that we want the people of East Africa to move across the borders put up by colonialists to do business freely and if...