Government Agreements (HGA) between Tanzania and Uganda is on the cards, giving a gesture for fast tracking the construction work for Tanga- Hoima oil pipeline. The HGA, which will come after the two countries inked the Intergovernmental Agreement (IGA), defines rights and obligations between each State on the project, and will be ratified by the respective parliaments. Many HGAs include a stabilisation clause designed to minimise the financial and political risks posed to foreign investors as a result of sudden changes in national law. It is the agreement which is often required by foreign investors in countries where foreign investors' rights are not otherwise protected by a bilateral investment treaty. The latest move on May 26 this year, was the symbolic signing of the 3.55bn US dollar Intergovernmental agreement (IGA) in Kampala, Uganda by the Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi and Ugandan Minister for Energy, Eng Irene Muloni, paving the way for the construction of a 1,443-kilometre pipeline. The two ministers put pen to paper hardly five days after President John Magufuli and his Ugandan counterpart, Yoweri Museveni signed a communiqué upon completion of discussions on sections of the contract. The Uganda-Tanzania Crude Oil Pipeline (UTCOP) would travel in a general south-easterly direction to pass through Masaka in Uganda to Bukoba in Tanzania, and loop around the southern shores of Lake Victoria, continue through Shinyanga and Singida, to end in Tanga, a distance of approximately 1,410kilometres (880 miles). Uganda has proven oil reserves exceeding 6.5 billion...

The newly constructed Ntungamo-Mirama Hills road and Mirama-Kagitumba One Stop Border Post (OSBP) facility have brought relief transporters and trans-boundary traders, travellers and the residents of Ntungamo district. The 37 kilometer road passes through Sub counties of Ntungamo, Ruhaama, Rweikiniro and Ruhaama East, and connects Uganda to Rwanda at Mirama-Kagitumba. Mirama-Kagitumba was in 2015 upgraded to OSBP. DFID funded construction and establishment of facilities needed for the new faster cargo and passenger clearing system. Travellers and transporters had over decades braved potholes and dust, and delays and high costs of transport that come with using a murrum road. The carriageway is 7 meters wide. Kafunjo, Ruhaama and Kakukuru trading centres have been given 2.5 meters wide parking lanes. Works to upgrade the Mirama Hills Road commenced in October 2014 and were launched by President Yoweri Museveni. The UK's Department For International Development (DFID), through TradeMark Africa, contributed 50 per cent of the cost; the rest of the funds came from Government of Uganda, through the Uganda National Roads Authority The total cost of the road is approximately USD40m. The progress of the road construction is now over 90 percent complete. UNRA's Eng. Ian Bakiza, who is the project manager, says "We have completed over 90 per cent of the road works. Compensation issues that had delayed us have all been resolved." The new road has already attracted a lot of business operations. Buses, taxis and cargo vehicles are using it. New businesses have come up in centres like Sofia, Kafunjo...

Economic experts have urged Ugandans to seize opportunities that government will create through the new budget. Speaking during a dfcu Bank post budget breakfast at Kampala Serena Hotel on Tuesday, Mr Edgar Isingoma, a senior partner at KMPG, said the Shs4 trillion allocation towards Works and Transport presents opportunities for the local businesses. “The economy is not dead, we have a growing economy. The allocation to infrastructure is an opportunity,” he said, calling upon businesses to be cautious and review their business models and make sure they can move forward and withstand the tough economic times. Mr Isingoma also said the public procurement law is being amended to promote local content which will allow businesses to benefit from the large infrastructure projects such as the Standard Gauge Railway and the oil refinery. The Background to the Budget Report says the economy is estimated to have grown by 3.9 per cent during 2016/17, lower than 4.7 per cent recorded in the previous year. The decline in growth was attributed to a marginal increase in the budgets for agriculture, forestry and fisheries sectors and the prolonged drought across the country. Mr Gideon Badagawa, the executive director Private Sector Foundation Uganda, said the budget strategy was good but the challenge was in the allocations. “It was a Shs29 trillion Budget and half of it is going to be mobilised domestically and the rest is going to be borrowed. What is going to be mobilised from within is going to crowd out the private...

The East Africa Business Council (EABC) is scheduled to elect new leaders that will drive the organization’s agenda and mandate for the next one year, at an annual general meeting in Kampala on Friday. The meeting which will be attended by members from the five regional countries is expected to elect the Chair, Vice-Chairs and Members of the EABC Executive Committee. According to the executive director, Lilian Awinja, the new chair person is expected to come from Uganda, in accordance with the rotational principal. “The AGM is the supreme policy making organ of the East African Business Council, and meets once a year to elect the Executive Committee headed by the Chairperson. It also meets to give overall direction to the Secretariat in line with the Strategic Plan and interests of the business community in East Africa,” she said. The East African Business Council (EABC) is the apex body of business associations of the Private Sector and Corporates from the 5 East African Countries. It was established in 1997 to foster the interests of the Private Sector in the integration process of the East African Community. Awinja said the new board of directors will play a critical role in spearheading advocacy on regional trade issues on behalf of the Private Sector in East Africa. The EABC Board of Directors consists of 22 members headed by a Chairperson, who is elected from the 5 Partner States on an annual rotational basis. Out of the 22 members 4 are Vice Chairs from...

"We have to understand that our industries are operating in a global context, in an open globalized market place, and that is not going to change. We have to be innovative and work on our efficiencies. We should be able to produce high quality products that are competitive at international markets,” said Ali Mafuruki, board chair of Trade Mark East Africa. He added that regional economies should strategically position themselves in the global business environment through producing locally made products that are price competitive. Rwanda hosts the forum from May 23 to 25, 2017 dubbed “harnessing the Manufacturing Potential for Sustainable Economic Growth”. The three-day meeting includes an exhibition where investors, enterprises, researchers and academia will collectively showcase new products and services as well as exhibit the latest advances in manufacturing technology and innovation, particularly those with relevance to Small Medium Enterprises. Lilian Awinja, executive director of East African Business Council (EABC), called for innovative strategies that will raise competitiveness levels and expand the region’s manufacturing and export base. “Innovations are now shaping the business environment. We need to add value to products produced in EAC. Our regional industries can now begin to raise manufacturing output and increase its share of global trade and production,” she added. Mukhisa Kituyi, secretary-general of United Nations Conference on Trade and Development (UNCTAD) said manufacturing sector in East Africa needs to develop innovative approaches that are essential for local products to compete favorably at global markets. “We should reduce the importation of cheap products...

VCN- According to the World Customs Organization (WCO), the WCO successfully conducted a five-day workshop from 22nd to 26th May 2017 at Nairobi, Kenya to review and develop a new regional risk management strategy pack for the EAC Customs Region. The workshop was conducted under the WCO EAC CREATe Project, financed by the Government of Sweden. The workshop brought together Risk Management experts from Customs administrations of the EAC Partner States and was facilitated by a WCO expert supported by SACU Risk Management experts. The SACU Region recently developed a similar strategy and this activity was the perfect platform for the SACU region to share its experience and further enhance regional cooperation between different Customs Union of Sub-Saharan Africa. The Regional Risk Management Strategy pack which outlines a strategy for the region, risk management criteria and templates for regional risk register draw from the objectives of the EAC Customs Union and the EAC Customs Union Strategy. The implementation of the 5-year Strategy will see the EAC adopt a harmonized approach to Risk Management which will include common definitions of risks, harmonized risk criteria, and the sharing of intelligence information among Partner States Customs administrations. At the opening of the workshop, Mr. Peter Ng’ang’a who represented the Kenya Revenue Authority Commissioner for Customs underscored the importance of a regional approach to Risk Management especially in regard to the nature of risks that tend to transcend borders and noted that the new strategy will come in at the right time as the EAC embarks...

Flights between East African countries will be classified as domestic travel by the end of this year. This is expected to lower the price of air tickets and increase the number of air passengers if an agreement is signed between regional aviation regulators. The change will see the price of air tickets drop by up to 12 per cent across the region, with domestic flyers charged a service fee of $5, compared with the $50 paid by international passengers. The Kenya Civil Aviation Authority said that following negotiations with their counterparts in the region, the recommendation was agreed to in principle. They are now pushing their respective governments to sign the agreement, said KCAA director-general Captain Gilbert Kibe. Air travel in East Africa has grown by 3.4 per cent in the past decade – against a global growth rate of 5.5 per cent – a trend attributed to high intra-EAC air fares. Debt burden It is estimated that 43 per cent of air ticket prices in the region comprise regulatory charges and taxes, with regulatory charges accounting for up to 24 per cent, hence the need to review the pricing structure. A recent study commissioned by the East African Business Council showed air liberalisation could lead to a reduction in air fares of 9 per cent and a 41 per cent increase in frequencies, which in turn stimulate passenger demand. This, the report notes, could result in an additional 46,320 jobs and $202.1 million per annum in revenues in the...

Comesa has developed seed labels and certificates that seed companies will use for large consignments crossing borders. This is expected to grow regional trade volumes through improved seed varieties. The Comesa Seed Labels and Certificates will be used by member States to identity seeds in the market that meet the Comesa Seed Trade Harmonisation Regulations of 2014. Speaking at the Comesa Alliance of Commodity Trade in Eastern and Southern Africa (ACTESA) and the African Seed Trade Association (AFSTA) meeting in Nairobi on Thursday last week, Mr John Mukuka, the Seed Expert at ACTESA, said: “The certificates will be given to a seed company upon verification that a seed lot is of a released variety on the regional catalogue.” He said procurement of the labels and certificates will be done in July before being ready for use in August 2017. “Seed exporting companies will be issued with a Comesa Regional Seed Certificate to confirm they are qualified,” Mr Mukuka said. This development is line with the Comesa Seed Harmonisation and Implementation Plan that provides a framework for the 19 Comesa member states to trade, facilitate seed industry and support to local seed companies. Kenya, Uganda, Rwanda, Burundi, Zimbabwe, Zambia and Malawi participated in the meeting alongside 20 seed companies in the eastern and southern Africa region. Labels The Comesa seed labels are based on the Organisation of Economic Cooperation and Development (OECD) and will apply to four seed classes: Pre-basic Seed, Basic Seed, and Certified Seed (first generation) and Certified Seed...

TANZANIA’S government signed a US$154 million contract on Saturday with state-run China Harbour Engineering Company to expand the main port in the commercial capital, Dar es Salaam. Tanzania is seeking financing for infrastructure projects as it aims to turn the country into a regional transport and trade hub. Under the contract funded by a World Bank loan, CHEC, a subsidiary of the state-run China Communications Construction Co Ltd, will build a roll-on, roll-off (ro-ro) terminal and deepen and strengthen seven berths at Dar es Salaam port. Tanzania hopes expansion of the port will increase container throughput to 28 million tonnes a year by 2020 from around 20 million tonnes now. “Deepening and strengthening of the berths will allow big container ships to dock in Dar es Salaam. All these efforts are being done in order to increase competitiveness of the port,” works, transport and communications minister Makame Mbarawa said at the signing of the contract. Source: LIve News Today

Tanzania’s government signed a $154 million contract on Saturday with the state-run China Harbour Engineering Company (CHEC) to expand the main port in the commercial capital, Dar es Salaam. Tanzania is seeking financing for infrastructure projects as part of its plans to transform the country into a regional transport and trade hub. Under the contract funded by a World Bank loan, CHEC, a subsidiary of the state-run China Communications Construction Co Ltd, will build a roll-on, roll-off (ro-ro) terminal and deepen and strengthen seven berths at Dar es Salaam port. Tanzania hopes expansion of the port will increase container throughput to 28 million tonnes a year by 2020 from around 20 million tonnes currently. East Africa’s second-biggest economy wants to profit from its long coastline and upgrade its rickety railways and roads to serve the growing economies in the land-locked heart of Africa. Big gas finds in Tanzania and oil discoveries in Kenya and Uganda have turned East Africa into an exploration hotspot for oil firms, but transport infrastructure in those countries has suffered from decades of under-investment. Tanzania said in January it will receive a $305 million loan from the World Bank to expand its main port, where congestion and inefficiencies are hampering service delivery. The port, whose main rival is the bigger but also congested port of Mombasa in Kenya, acts as a trade gateway for landlocked African states such as Zambia, Rwanda, Malawi, Burundi and Uganda, as well as the eastern region of the Democratic Republic of...