The financial services sector continued to dominate the East African deals space in the 10 months to October, helping drive the number of disclosed deals higher by 46 percent to 91. Analysis by advisory firm I&M Burbidge Capital shows there has been increased activity in the region, largely led by private equity investments, mergers and acquisitions. The number of disclosed deals has gone up to 91 from 62 in the same period of last year, with the disclosed value of transactions hitting $1.6 billion (Sh162.6 billion). Kenya led the region with 68 deals, followed by Tanzania (14), Uganda (13), Ethiopia (7) and Rwanda (6). “The highest volume of deals in the year to date has been recorded in the financial services sector— 20 out of the 91 disclosed deals. Other sectors that have seen significant deal activity are the agribusiness sector and the energy, oil and gas sector,” said I&M Burbidge in the October 2019 East Africa financial review report. The disclosed value of deals in the same period last year stood at $1.16 billion (Sh118 billion), although due to the large number of deals whose value remains a secret, pinpointing the exact financial value of activity is difficult. In terms of disclosed value, the energy, oil and gas sector contributed the lion’s share at $797.5 million (Sh81 billion) even though it had only half the number of deals as the financial sector at 10. Deals in this sector tend to be large ticket, with the most significant this year...

Harmonizing airspace is one of the issues that the East Africa Business Council will discuss during the East African Business and Investment summit slated to take place in Arusha, Tanzania from November 28 to 29. Denis Karera, the Vice Chairman of the Council told members of the press on Wednesday that the summit seeks to address the most pressing issues challenging business in the region, especially cross border trade. "Non-tariff barriers impede cross border trade. One of the key things we want to raise, again, is domestication of airspace so that our airlines can move easily and quickly and tickets can become cheaper as well," he said. He said that none harmonized and heavy duties imposed on airlines landing at different African airports drives up the flight ticket prices. "You have to wonder why flight tickets are expensive in the region. Rwanda charges taxes, Kenya charges taxes, and Uganda charges taxes among others on handling services for every landing. We have to deal with this and domesticate airspace as it is happening elsewhere. We want to advocate so that governments slash such heavy taxes. We have been discussing this for so many years and now we need harmonization of the airspace," he raised. He cited an example of some airlines that charge $800 for a passenger flying from Kigali to Nairobi for one hour. "This impedes movement of people. A flight ticket price could go for $110 but due to heavy taxes, it rises," he said. Other issues to be...

As Kenya marks the Africa Industrialisation Day today, the focus will be on its credentials to revamp its limping manufacturing sector to capitalise on new opportunities on a wider seamless market for the continent. President Uhuru Kenyatta’s plan to create in the upwards of 800,000 new decent jobs for Kenya’s growing skilled youth by enacting policies, which support modernisation existing and development of new factories is yet to gain traction. The manufacturing pillar under the Big Four socio-economic transformation plan is to create an additional 1,000 small and medium-sized (SMEs) factories in targeted sub-sectors such as agro-processing, leather, textiles and fish-processing. Statistics and recent surveys, however, paint a picture of struggling manufacturers, with their contribution to gross domestic product (GDP) — national wealth — shrinking and recording the lowest growth in jobs among key sectors of the economy. As a low middle-income country with sights on joining the league of highly-industrialised middle-income nations in just more than a decade, Kenya should be witnessing the movement of labour from low productivity sectors such as farming to the manufacturing sector. Growth in new job opportunities in the sector has largely been flat, with an addition of 4,200 new jobs in the first full year of Mr Kenyatta’s Big Four agenda, the Kenya National Bureau of Statistics (KNBS) data indicates. The President’s target is based on the sector overcoming its struggles to contribute 15 percent share to the national wealth (GDP) from the decades-low levels posted in recent years. The sector’s share of...

The Private Sector Foundation of Uganda (PSFU) and the East Africa Business Council (EABC) have urged Heads of States for the East Africa Community (EAC) to resolve the current political tensions between them that are limiting trade and movement of goods and people among the states. The EABC executive director, Stuart Mwesigwa said while the EAC is one of Africa’s fastest-growing regional blocs that has made great progress in regional trade integration and promotion, the current political tensions between some countries is harming the private sector who can no longer trade and move freely around the community which was the main objective for the formation of the bloc “There have been milestones like the establishment of the single customs territory and one stop border posts (OSBP) which should have eased movement of persons and goods as well as trade facilitation. However, there are still major challenges like Non-Tariff Barriers, protectionist tendencies by nations, delays in harmonization and domestication of EAC agreed decisions and directives,” he said The ED PSFU Gideon Badagawa said tissues like closure of the border by Rwanda, persistent internal conflicts in Burundi and Congo, the Ebola scare in Congo, refusal of Ugandan goods over standards in Kenya and Tanzania among other issues are undermining the possible great achievement of the EAC bloc “The EAC should be people centered, it should be private sector-led. For us we do not care about the politics, what we care about is having a market for our goods and services. We hope...

The AfCFTA Forum in Tanzania raised awareness about AfCFTA implementation, and demonstrated the value of doing so. Organised by the UN Economic Commission for Africa (ECA) and Trademark East Africa (TMA), the Tanzanian edition of the AfCFTA forum was held in Dar es Salaam on Tuesday 22 Oct 2019 and was attended by policymakers, private sector and the civil society representatives. John Ulanga, CEO of Trademark East Africa (TMA) in Tanzania,  emphasised the importance of that forum, underscoring the role of development partners like TMA and ECA in raising visibility and understanding of the AfCFTA. Andrew Mold, Acting Director of ECA in Eastern Africa, made a presentation highlighting the potential benefits of AfCFTA.  “The implementation of the AfCFTA could result in welfare gains amounting to USD 1.8 billion for Eastern Africa and creating 2 million new jobs”, said Mold. Participants at the meeting affirmed that increased awareness of AfCFTA in the country is very essential. They also noted that harmonising standards across the region would tackle the issues associated with non-tariff barriers, and this translates as more – and more fruitful – trade within and between East African countries. Infrastructure will also prove instrumental in reducing the cost of doing business in Tanzania, and therefore holds another key for unlocking the full potential of AfCFTA. Meanwhile, the role of informal trade was emphasised, with it emerging that participants were keen to understand how the AfCFTA could move people into formal work. This Forum held in Dar Es Salaam is one in a...

TAXES     IMPORTS KAMPALA - Kampala City Traders (KACITA) on Monday protested the implementation of the new directive requiring them to start paying import taxes at first port of entry into the East African community. During a heated meeting with URA officials, the traders also protested URA’s directive to clear their goods within 24 hours after arrival in Mombasa or Dar- es -Salam, saying this does not allow them enough time to get money to clear the taxes. “Most of us borrow money from banks and money lenders who sometimes take longer to process the money. This means that by the time the loan is approved, the trader may have already lost their goods, or required to pay heavy fines,” Everest Kayondo KACITA chairman said. He further said that traders are concerned because most of their goods, especially from China, are usually ordered on credit, and cleared a few days after they reach Mombasa. Kayondo said it will be impossible for traders to purchase goods in the new arrangement which will force many of them to close their businesses. The Chinese ask for money before they give us clearing documents and yet we have to clear taxes within 24 hours, which makes it impossible for the business to survive in this kind of system. The Kenyan government has threatened to suspend any clearing firm that revokes the set time and now the Kenyans are threatening to avoid Ugandans if we do not show proof of tax clearance fees,” he said. Last...

Contributing to improving Ethiopia’s energy infrastructure; German corporate collaborates with smaller company to implement a viable solution in Africa; creating jobs, providing training and developing local value chains. In April 2019 Siemens signed a Memorandum of Understanding (MoU) with the Investment Commission of Ethiopia, to address the country’s energy and infrastructure sector challenges, to assist the government, stabilize and expand the existing grid infrastructure and explore island solutions for industrial hubs/parks and microgrid solutions for remote villages. The Ethiopian Governments Growth and Transformational plan II has a goal to achieve universal electricity by 2025. Currently, 56% of the Ethiopian population does not have access to electricity. At the G20 summit, Siemens committed to supporting and contributing to Ethiopia’s Growth and Transformation Plan II and its objective of electrifying Ethiopia. Siemens will install a solar-hybrid plant in Sodo supplying reliable, sustainable and affordable electricity to the FruitBox farm as well as to the surrounding communities. The G20 investment Summit-Compact with Africa brings together delegates in the public and private sectors to promote German-African business relations under the Compact with Africa. “The Fruitbox Farm project is a key Siemens lighthouse project aimed at demonstrating the importance of corporates aligning to a national vision that will ultimately benefit the lives of people in different societies,” says Sabine Dall’Omo, CEO for Siemens Southern and Eastern Africa. “Government plans supported by business initiatives are essential and play a crucial role in moving economies forward and ensuring economic prosperity for all,” she adds. This project showcases...

The minister of Trade, industry and cooperatives Hon Amelia Kyambadde has said that trading of manufactured goods between Uganda and Rwanda has dropped significantly over the political squabbles between the two countries. Kyambadde while addressing journalists about Africa Industrialization Day in Kampala today, revealed that trade in manufactured goods between Ugandan and Rwanda over the past months had dropped from USD 300 million to USD 73 million. She attributed this mainly to the closure of the Katuna boarder, which remains closed since March. Rwanda has continued to show less interest in having the stand off resolved. Recently Rwanda pulled out of the second meeting of the peace talks between officials of the two countries in which the reopening of the border was supposed to be discussed. p>Today, Uganda joins the rest of Africa to commemorate Africa Industrialization day with the objective to raise awareness on opportunities and challenges faced by the continent in respect to Industrialization. This year’s theme is “positioning African industry to supply the African continental free Trade area (AFCFTA) market” which was launched on 7th July 2019 by African Heads of State in Niamey, Niger. AFCFTA provides a market of about USD 3 trillion and a consumer base of 1.3 billion people. With this, Kyambadde said Africa’s manufacturing sector is projected to double in size by 2025 and create millions of jobs. She said that government targets to exploit the abundant renewable energy sources to increase power generation to 2500MW by 2020. “The commissioning of Isimba hydropower...

  Source: Soft Power

The East African Community (EAC) is not ready for the fourth industrial revolution even as the wave sweeps across the world. This is according to experts who spoke at an industrial conference at the EAC Secretariat in Arusha this week organised by the United Nations Industrial Development Organisation (Unido) and German Society for International Cooperation. The Global Manufacturing Industrial Summit (GMIS) roadshow sought to explore the implications of the revolution for the region’s manufacturing, industrialisation and investment prospects. For us to achieve inclusive and sustainable industrialisation, we need to invest in advanced disruptive technologies like 3-D printing, Internet of Things, advanced robotics and drones, which will make manufacturing smarter, efficient and greener,” said Stephen Kargbo, Unido Representative in Tanzania, Mauritius and EAC Secretariat. He added that the advancement of these manufacturing technologies will also help improve acquisition of agro-industries, water and sanitation quality for the rapidly developing towns and cities. Most of these industrialised countries account for over 90 per cent of digital production technologies, have invested hugely in research and development campaigns and we have to move in that direction,” added Kargbo, who said there is also need for solid industrial policy. EAC first came up with an industrialisation policy for 2012-2015 but it failed to be implemented and was revised to 2021-2032. The contribution of manufacturing to the gross domestic product in East Africa is estimated at 8.9 per cent, which is considerably below the average target of about 25 per cent that all the five partner states...