News Tag: Uganda

EABC chair asks governments to act on slow economy

Regional private sector players have challenged their leaders to task regional governments to improve the conditions of doing business. Currently, the region’s private sector is facing many hardships in doing business because of the harsh economic conditions which have seen many lay off jobs and others nearly close business. Speaking at the 16th Annual General Meeting of the East African Business Council (EABC) held in Kampala on Friday last week, Mr Moses Ogwal, the policy and advocacy manager at the Private Sector Foundation Uganda, said: “We want to see EABC walk the talk by engaging governments to address the issues causing the slowdown in the economies.” Augmenting Mr Ogwal’s plea, the communication and corporate affairs Director Nile Breweries, Mr Onapito Ekomoloit, said part of the problem is the slow-down in the economy. “EABC is a group of businesses who have to make money and if they feel they are not making enough money, their umbrella institution must be seen feeling their pain and asking government what they should do,” Mr Ekomoloit noted. Mr Kassim Omar, the new council chair, said with the global challenges, there is more focus on sovereignty rather than regionalism as far as the different partner states are concerned. “This is why we continue to experience the never-ending challenges of non-tariff barriers coming up,” he added. He, however, said as he takes on the mantle for the next one-year he, would like to see the partners sharing those challenges so that council follows them up with the...

U.S. to review trade benefits to East Africa after clothes ban complaint

WASHINGTON (Reuters) - The U.S. Trade Representative said on Tuesday it was reviewing trade benefits to Rwanda, Tanzania and Uganda under the African Growth and Opportunity Act (AGOA) after a complaint by U.S. interests about an East African ban on imports of used clothing. USTR said the "out-of-cycle" review was in response to a petition filed by the Secondary Materials and Recycled Textiles Association (SMART), which complained that the ban "imposed significant hardship" on the U.S. used-clothing industry and violated AGOA rules. "Through the out-of-cycle review, USTR and trade-related agencies will assess the allegations contained within the SMART petition and review whether Rwanda, Tanzania, and Uganda are adhering to AGOA's eligibility requirements," USTR said in a statement. The move follows a decision by the six-nation East African Community - Kenya, Uganda, Rwanda, Burundi, Tanzania and South Sudan - to fully ban imported second-hand clothes and shoes by 2019, arguing it would help member countries boost domestic clothes manufacturing. The USTR did not elaborate on why the three countries were singled out for review. The AGOA trade program provides eligible sub-Saharan countries duty-free access to the United States on condition they meet certain statutory eligibility requirements, including eliminating barriers to U.S. trade and investment, among others. U.S. AGOA imports from Rwanda, Tanzania, and Uganda totaled $43 million in 2016, up from $33 million in 2015, according to the USTR. U.S. exports to Rwanda, Tanzania, and Uganda were $281 million in 2016, up from $257 million the year before, it said. Source:...

How East Africa Is Setting An Example For The Rest of The Continent

The African continent was the second fastest growing economy in the world behind South Asia in 2016. According to results shared at the African Development Bank (AfDB) Group’s Annual Meetings in 2017, East Africa in particular deserves the lion’s share of the credit for the continent’s performance. East Africa was the best sub-regional performer, with growth rising by 5.3% in real terms last year, followed by North Africa at 3.3%, Southern Africa at 1.1%, Central Africa at 0.8%, and West Africa at 0.4%. The AfDB presentation stated that three of the top five fastest growing countries on the continent were from East Africa as well. They were Ethiopia, Tanzania, and Djibouti and their economic output rose by 8%, 7.2%, and 6.3% respectively. Rounding off the top five was Cote d’Ivoire (8.4%) and Senegal (6.7%). The East African Community The East African Community (EAC) is a group of six nations – Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. It provides a common market for the member countries to share goods and resources. The East African Legislative Assembly recently passed a $110.1 million budget for fiscal year 2017-18. This was an 8% rise from the previous year ending in June. The region has been trying to push the implementation of the EAC Common Market Protocol with a special focus on free movement of labor across member nations. If successful, the EAC will set an example for the rest of Africa and help nations with less resources to get the support they need locally...

EAC Integration – We Need to Get Serious

The passion with which our president supports the integration of Africa and East Africa is amazing. Africa is so balkanized with miniscule individual country markets that can never create a strong foundation for sustainable economic growth. In the face of world powers, these balkanized statehoods are vulnerable to international conspiracy of the global big brothers. Africa is at the mercy of the unknown when one looks at our future survival. Our only hope would be in integration (not the late Muammar Gaddafi style where he wanted Africa to become one political entity irrespective of our diversity) but step by step as Museveni has proposed. Museveni says that the foundation for African single state should be built on strong regional political/economic blocks like the East African Community, Ecowas, Sadc and Comesa. I am told that by 1967, the East African Community was the global best practice model of economic integration. The European Union, the best economic/political block of our times, was no match to the formidable East African Community of the late 60s. All of us know what happened when Idi Amin came on the political stage. He squabbled with Tanzania and Kenya and the integration model was disrupted. By mid 1970s, the community had collapsed. With the strong leadership of Yoweri Museveni, Hassan Mwinyi and Mzee Daniel Arap Moi, the community was re-established step by step. We now see a community that has a reasonably working customs union, legislative assembly and East African Court of Justice. A semblance of free...

3 key conversations from the US-Africa business summit

African ministers and business people joined their American counterparts in Washington, D.C., last week at the U.S.-Africa Business Summit, to discuss greater economic engagement, despite lingering uncertainty over the United States’ position toward global trade. Conversations at the Corporate Council for Africa-hosted event ranged from broad strategy to country-specific investments, with plenty of time for meetings and deal-making. Throughout those talks, a few key issues emerged. First on many attendees’ minds was what the U.S.-Africa relationship will look like under President Donald Trump’s leadership. But robust discussions also emerged around the role of business in pandemic response, how to target and achieve social impact and the need for regional integration and infrastructure improvements. Here’s a look inside several of those conversations, and where they may be headed. The U.S.-Africa relationship U.S. Commerce Secretary Wilbur Ross addressed the summit, offering reassurances and some specifics about the administration’s view toward existing and future trade pacts with the continent. “We cannot ignore such a large, dynamic and vital part of the world,” he told attendees of the administration’s interest in Africa. The administration would like to see Africa continue to grow and become more self-reliant, he said. “Our trade relationship is vital to the security and stability of both the U.S. and Africa. But our relationship with Africa has to continue its transition from being ‘aid-based’ to ‘trade-based,’” Ross said. The U.S. will honor the African Growth and Opportunity Act, he said, adding that it will hold countries to account for the compliance restrictions....

Germany commits an additional 35 million Euros for Health and Education in the EAC

The Government of the Federal Republic of Germany yesterday committed two grants amounting to € 35 million Euros to the East African Community (EAC). His Excellency, Egon Kochanke, German Ambassador to Tanzania, handed over the commitment note in his meeting yesterday with the EAC Secretary General Liberat Mfumukeko. The financial cooperation grants will be available for the sectors of health and education: Germany will provide 30 million Euros for the procurement of vaccines for children in the EAC against various diseases. The programme will be implemented in collaboration with the GAVI Alliance. This new commitment will bring Germany`s contribution to regional immunisations programmes with the EAC to 90 million Euros since 2012. A further 5 million Euros are foreseen for a new program financing scholarships for post-graduates in the East African Community. The program thus aims at strengthening the younger academic generation in becoming catalysts for further regional integration. H.E. Egon Kochanke pointed out: "The cooperation with the EAC and with the GAVI Alliance on vaccinations are an important pillar in fighting diseases in the region. And our new envisaged scholarship program is another stepping stone towards stronger regional integration in East Africa." Since as early as 1998, Germany's development cooperation, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has contributed to the regional integration in East Africa through a variety of programmes and projects. With the new commitments Germany's funding for Technical and Financial Cooperation with the EAC amounts to over 200 million Euros....

East Africa Tourism Platform’s fifth anniversary a major milestone

Back then did key tourism players approach Trademark East Africa and impressed upon them urgent need to support the tourism private sector across the East African Community for closer integration. EATP since then has come a long way, faced challenges and also triumphed in many instances. The regional members look with pride at the strides made and have confidence in the foundation which has been laid in the East African Community. Since inception in 2012 has EATP managed to facilitate several reforms that have positively impacted East Africa’s tourism industry. The organization has constantly engaged policymakers and championed for the private sector. As a result, they have received recognition from across the globe, with notable examples from UN World Tourism Organization and the World Bank. In the words of a World Bank publication (2016) ‘EATP has shown leadership in attempting to champion and facilitate a collective, coordinated and simultaneous approach to enhancing East Africa’s competitiveness in travel and tourism‘. The organization played a critical role in the pursuance of a Single Destination Brand showcasing East Africa as One in Tourism Expos, zero-cost work permit-enabling free movement of labour, The Single Tourist Visa now in place between Kenya, Uganda and Rwanda, Interstate Pass travel among these three countries for duly registered expatriates, the establishment of a Joint Tourism Marketing Committee and the launch of a Joint Stand/Booth at WTM and ITB Berlin. National tourism private apex bodies were during this period also strengthened and these organizations are now able to lobby...

CTA at the European Development Days 2017

CTA, in collaboration with various partners, participated in a number of panels at the European Development Days 2017, which took place from the 7th to 8th of June in Brussels (Tour et Taxis). These panels addressed key subjects concerning the future of agriculture: Trade & Investment, Women entrepreneurs and Youth in Agribusiness. Over the space of two days, CTA brought to the forefront of the development community the most pressing issues affecting the agriculture and rural development in Africa, the Caribbean and the Pacific. During the first session on Boosting Investment for ACP Inclusive Trade and Development, panellists addressed innovative means to harness investment opportunities to empower the ACP as the world’s next emerging economy. The organisers were the ACP-EU TradeCom II Programme, the ACP-EU TBT Programme and CTA. Bibi Ameenah Firdaus Gurib-Fakim, President of the Republic, Republic of Mauritius, opened the session with a comprehensive overview of the opportunities and challenges faced by the ACP group in the context of trade and development. The European Commission's Roberto Ridolfi, emphasised how the EU can work with the ACP group to enable them to enhance opportunities from trade and sustainable development whilst Pamela Coke-Hamilton from the Caribbeam Export Development Agency was keen to use the example of the Caribbean to emphasise the importance of regional cooperation, intra-ACP collaboration and economic diversification. This was echoed by Masego Marobela, who explored how intra-ACP collaboration has helped to address trade barriers, and called for greater action on this front. She also emphasised the challenges faced...

China-built railways to drive Pan-African trade

One of the most talked about issues in Kenya currently is the Chinese-funded and built railway line connecting the capital Nairobi to the port city of Mombasa, on the shores of the Indian Ocean. This East African nation has reason to celebrate. Mombasa is a crucial hub for trade, business and pleasure and it is therefore a city of interest for many across the East African region. The new railway line is so significant that for weeks now the government and opposition have been locked in a war of words over who deserves to take credit for this milestone. It is about 122 years since a railway line was launched in this country and Kenyans are optimistic that the socio-economic impact will be astounding. Many are already enjoying the benefits. Travelers to Mombasa who could not afford the expensive flights had to resign themselves to the bus, which takes nine to 10 hours and costs between about $12 and $20, depending on the season. When there is a mishap on the road, as often happens, the trip can be much longer. With the new trains it will take about four hours to travel between the two cities. When President Uhuru Kenyatta launched the new railway line, he offered an introductory fare of $7. But fares will soon be revised to a standard $9. Those who want to travel in the more luxurious first class will have to pay about $30, which is still an attractive offer for many. The train's...

Financial Crunch Hits Key EAC Commission – Report

Inadequate funding may force the East African Science and Technology Commission (Easteco) to halt some of its activities. A recently-released report by the East African Legislative Assembly (Eala) said the approved budget from the 2016/2017 financial year was inadequate to cover major activities of the institution of the East African Community. The critically affected activities include evaluation of technologies for agricultural products, establishment of a regional journal of scientific research and technologies and convening annual youth innovation forum. During the current fiscal year ending on June 30, Easteco was allocated $1,196,138 for its expenditure, comprising $ 676,076 from the partner states and $520,066 from the general reserves. But by February this year, only $424,623 had been received from the partner states -- Tanzania, Uganda, Kenya, Burundi and Rwanda -- and $ 100,000 from the EAC General Reserves. According to the report by the Eala Committee of Accounts,which was tabled before the Eala plenary session held here recently, the Kigali-based institution received was equivalent to 44 per cent of its 2016/2017 budget. Due to the funding constraints, a big chunk of the money - 64 per cent -went to salary and employee benefits, administrative costs 25 per cent while programmatic and related expenses consumed only eight per cent. "The commission is constrained to the extent that in addition to untimely remittances, it is subjected to zero increment of budget," the report said, warning: "Always paying salaries and administrative expenses without activities to achieve the objectives defeats the purpose for which the...