Following an impasse that had dragged on for a year, Uganda and other member states have taken big strides to eliminate bottlenecks to trade by implementing the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA). The TFA, which was agreed upon during the ninth World Trade Organisation (WTO) Ministerial Conference in Bali, Indonesia, in 2013, was approved and adopted on November 27, by the WTO general council. The TFA aims to establish trade and increase economic growth through the four principles of simplification, standardisation, harmonisation and transparency of procedures so that it reduces the time and cost of doing trade. TFA is slated to be enforced on July 30, 2015. Director-General Roberto Azevêdo, in his address to the African Union conference of ministers of Trade on December 4, in Addis Ababa, Ethiopia, said African nations stood to benefit from the recent WTO decisions on the Bali agreements, including the Trade Facilitation Agreement, which would support “your efforts at regional integration in a very practical way.” Azevêdo urged African members to “engage even more” in the WTO. “We are coming to a defining period in our work when it will be crucial that your voices are heard in full,” he said. At a meeting organized by the ministry of Trade, Industry and Cooperatives in conjunction with Trademark East Africa on December 5, in Entebbe, to review the national plan for the implementation of future WTO agreement on trade facilitation, the United Nations Conference for Trade and Development (UNCTAD) expert, Celine Bacrot,...

Addis Ababa, Dec 7 (IANS): East African businesses are set to trade more with India by learning how to take advantage of the country's duty-free market access scheme, facilitated by the Supporting India's Trade Preferences for Africa (SITA) project of the International Trade Centre (ITC). The ITC, a joint agency of the World Trade Organisation and the UN, aims for businesses in developing countries to become more competitive in global markets, speeding up economic development and contributing to the achievement of the UN's Millennium Development Goals. The participants of the third SITA held in Ethiopia's capital city of Addis Ababa Dec 4-5 analysed trade trends under the scheme for each of the SITA partner-country beneficiaries. It also analysed key issues surrounding complying with the scheme like rules of origin, export requirements in the Indian market, issues impacting on export from SITA partner-countries to India, and the value chain from factory gate to the destination market in India, among others. "Building productive capacities, market linkages and enhancing investment attractiveness in the selected sectors will be a key way to ensure that SITA delivers impact and provides a sustainable template for similar South-South trade and investment projects," SITA coordinator Govind Venuprasad told IANS. "It will also allow companies working in these sectors to become export ready to supply other markets". Following an amendment made two years ago in India's Duty-Free Trade Preference (DFTP) scheme, least developed countries (LDCs) will receive preferential zero-duty access on 98 percent of the Indian tariff lines. It...

Integration efforts within the East African Community (EAC) received a significant boost at the end of November. The multilateral organisation stated that it will loan the East African nations $1.2bn to improve inland waterways and ports in Kenya and Tanzania, as part of efforts to boost integration in the region. More specifically, the funds will be used to revive inland waterways on Lake Tanganyika and Lake Victoria, and improve handling capacity and efficiency at the Mombasa and Dar es Salaam ports. The five-nation EAC, which comprises Kenya, Tanzania, Uganda, Rwanda and Burundi, is undertaking a substantial infrastructure investment programme while also deepening policy integration and reducing barriers to trade. In a recent 2015-25 strategy paper, the bloc stated that it needs at least $68bn, and possibly up to $100bn, over the next decade to develop roads, ports, railways, transmission lines and oil & gas infrastructure. Looking at the financing of the ambitious investment programme, in addition to the World Bank’s recent commitment, the European Union (EU) has also recently stated that it is prepared to support projects worth up to $750m to improve the region’s infrastructure, while Trademark East Africa also pledged $350m to expand ports, one stop border points and road connectivity. The EAC is already in talks with development partners, including the African Development Bank, European Investment Bank, as well as countries like China and India, as potential sources of funding. Turning to China, political leaders in East Africa are looking east in an attempt to make use...

A global audit, tax and advisory firm will spend about Sh200 million to deepen its presence in the East African Community (EAC) market in the next one year. The US-based Grant Thornton International Ltd, already with offices in Kenya, said it will soon open offices in Tanzania, Uganda and Rwanda to assist investors set up business in the region. The firm’s Business Development and Markets Global Leader Gernot Hebestreit said the announcement is informed by the increased local and international investments in the region, mainly Kenya. Hebestreit noted that the region is receiving a lot of attention from foreign investors - prompting them to set up more offices as well as employ quality human resources to offer logistics services. During the launch the East African Advisory Services Initiative in Nairobi, Hebestreit observed that bureaucracy and red-tape, though these have diminished lately, are still among the key challenges scaring away potential investors. The initiative will handle consultancy and advisory services for clients seeking to expand across the EAC region. “We have a lot of faith in the fast-growing economy of Kenya and EAC and that is why we are expanding our footprint in the region,” said Mr Hebestreit. He, however, noted that the investment climate in Kenya and the region continues to be haunted by corruption, infrastructure and high cost of power. Investment climate Hebestreit said investors will be assisted to register their businesses as well as deepen their understanding of the region’s investment climate. “Our focus is to offer a...

Editor, I presume that the East African Community (EAC) is following the footsteps of the European Union (EU) in its aim for integration. My request is that sometimes it good to stop and take a breath. This would be an chance to understand where we are going and whether we are all still agreed with the final objective. As an oldster, I would like to remind all concerned that if it were not for the unfortunate events of the 1970s, we would be far ahead of the EU even now! Although the present goal is to have a common currency within 10 years, I do not see this happening. The Common Market is still only in the early phases of implementation. As a notable point, let us recall that the EU Single Currency is only 14 years in existence. But the process to get there took well over 20 years. Perhaps the EAC should begin taking smaller morsels and be sure that we can digest it, rather then big chunks that ask too much of our circumstances. This does not mean I do not support the EAC. I believe it is the only entity that will ensure stability and a better chances of faster economic growth. But nothing wrong in being cautious. J. Kadoma Kampala, Uganda Source: East African Business Week

NAIROBI, Kenya - The World Bank recently agreed to boost agriculture in East African with $1.2 billion. This support is additional to large ongoing individual country programs. Besides paying for better infrastructure, the projects being funded are expected to improve the competitiveness of the East African Community (EAC) states. Philippe Dongier, the World Bank Country Director for Burundi, Tanzania and Uganda, said: “We are partnering with the EAC governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC.” He was speaking during the EAC Heads of State retreat in Nairobi. He said: “We are preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika, and to enhance the capacity and efficiency of the two main EAC ports on the Indian Ocean: Dar-es-Salaam in Tanzania, and Mombasa in Kenya.” He added: “We will also invest in specific transport links to better connect landlocked countries (Burundi, Rwanda, Uganda and South Sudan) to the Northern and Central corridors." This he said will improve access to the ports of Mombasa and Dar-es-Salaam. The private sector needs to support the International Finance Corporation (IFC) and MIGA (the guarantor). The World Bank Group will provide additional resources for regional infrastructure through market-driven private sector financing and guarantees. The financing will contribute to the EAC states’ planned investments in the next three to seven years. The Nairobi retreat on Infrastructure Development and Finance focused on policies and...

Some Ugandans are losing out on the advantages of a Single Customs Territory (SCT) whose implementation commenced in July this year, due to ignorance. The SCT was approved by East African Community heads of state last month. It seeks to reduce the cost of business as well as increasing market access among other objectives. This is according to a study commissioned by ministry of finance sponsored by Trade Mark East Africa on the level of awareness of the Single Customs Territory (SCT). According to Paul Bagabo, the lead consultant, studies in the month of September to early November 2014 showed that the awareness level among Ugandans is at 41%. He explained that due to lack of awareness, firms or businesses will not demand for better provisions that can help them access raw materials but also cannot effectively demand for the removal of certain barriers if they are limiting access to markets. “This implies that Ugandan firms will not enjoy the benefits of SCT and for any policy maker, the low percentage cannot influence policy or design of appropriate interventions to help when the situation goes bad,” Bagabo added. The outcomes of the analysis showed that most people involved in the process know about the revenue management, either because URA has done good awareness or that people know about paying for import taxes and the procedures involved like bonding, warehousing, among others. Bagabo however, notes that most people do not know about the processes or provisions to do with free circulation....

Chief executives of microfinance institutions in the region will next week, December 8-9, converge in Kigali to discuss ways on how to improve the sector in the East African Community (EAC) bloc. The East African Microfinance Network (EAFMNET) CEO roundtable will be the first of its kind. It will be held under the theme, "The role of microfinance in EAC economic integration." EAFMNET is a network comprising of microfinance associations from Rwanda, Uganda, Tanzania, Burundi and Kenya. The Association of Microfinance Institutions of Rwanda (AMIR) is the current EAFMNET chair and event host. Peter Rwema, the director general in charge of programmes at the Association of Micro finance institutions of Rwanda (AMIR), said the forum will be used as a platform for financial experts and the sector's top managers to share experiences, information and knowledge, especially on how to tackle challenges threatening the growth of sector in the region. The sector faces challenges, including non-performing loans, access to finance, lack of skills and product innovation. Rwema said the meeting is an opportunity for the country's microfinance sector to learn and share experiences on best practices and how to up their game. Damascene Hakuzimana, the in charge of communication and advocacy at AMIR, said the meeting will attract over 300 delegates from Uganda, Kenya, Tanzania, Burundi and South Sudan. There are about 416 microfinance and Umurenge Saccos in Rwanda.The conference will be officiated with by the Minister of East African Community Valentine Rugwabiza. Source: The New Times

A two-week transit cargo clearance boycott at the Port of Mombasa has threatened to strain good relations between Kenya and Uganda. Ugandan traders had from November 14 boycotted clearing their cargo to protest the introduction of pre-pay taxes by Kenya Revenue Authority (KRA) without consultation. Uganda-bound cargo accounts for over 70 percent of total transit goods through the Port of Mombasa and most of that cargo has been lying at the facility for the last two weeks. Through the Kampala City Traders Association, the traders had last Thursday issued a two-week ultimatum to KRA to rescind its decision or they revert to the Port of Dar es Salaam or alternatively put pressure on the Ugandan Government to block Kenyan goods from accessing the country’s market. Ugandan newspapers quoted the association chairman Everest Kayondo protesting against the decision by KRA seen as going against the spirit of East Africa integration and the Single Customs Territory. Speaking in Mombasa yesterday, the traders said President Yoweri Museveni was personally concerned about the pre-pay tax move that led to the stand-off. Yesterday, KRA Assistant Commissioner for Marketing and Communications in the Southern Region Fatma Yusuf said the matter was resolved last Friday following a meeting of customs chiefs from Kenya, Uganda, Rwanda and Burundi in Bujumbura. However, she did not elaborate on the deal arrived at. “We are going to issue a comprehensive statement tomorrow (today),” Ms Yusuf said. Ugandan clearing and forwarding agent William Kidima, who is based in Mombasa, said the stand-off...

A proposed 10-year investment strategy for priority infrastructure projects in the East Africa Community to tackle the existing gaps received backing during the just-concluded EAC Heads of State Retreat on infrastructure development and financing. The summit, convened over the weekend in Nairobi, Kenya, endorsed the blueprint and directed the Council (of Ministers) to mobilise resources for implementation. Held under the theme, "Supporting the implementation of the Common Market through the development of efficient infrastructure networks and intermodal transport systems in the EAC," the summit was chaired by Kenyan Deputy President William Ruto. Rwanda's delegation was led by Prime Minister Anastase Murekezi. The infrastructure projects, which include railway, energy, ports and harbours, and information and communications technology, among others, are expected to cost at least $100 billion, according to a communiqué from the EAC Secretariat. The endorsement comes at a time when the region is in negotiations with development partners, including the World Bank, the African Development Bank, European Investment Bank as well as individual countries, particularly China and India, in efforts to raise the required resources. At the retreat, several development partners pledged to support specific infrastructure projects. Major pledges: During the summit, the World Bank pledged $1.2 billion toward infrastructure development and improved competitiveness of EAC region, while Trademark East Africa pledged $350 million to support regional infrastructure for ports, one stop border points and road connectivity. The summit further called for the fast-tracking of the development of regional capacities to support the implementation of priority infrastructure projects and...