Katuna, a boomtown in Kabale District at the parallels of Uganda and Rwanda, is haunted by a spectre of violence. Since Rwanda closed the border, the kindred spirit that once prevailed among these communities was shattered. Today, suspicion remains rife on both sides of the border. Any slight straying into Rwanda, even within inches, has dire consequences for nationals from either side. As the conflict between Kigali and Kampala continues to fester, residents are now governed under the barrel of the gun. The canopies of knitted tree branches dotting the hills, a spitting distance across the border, give marksmen a cover to target those who attempt to cross on either side. In the place of hope lies fear. Commerce that once thrived at the border has been disrupted. The bond that prevailed among closely-knit families that live on either side has also been tested. Rwanda initially said it had closed the Gatuna border as a result of repairs it planned to implement on sections of its border road that connects Katuna to Kigali. But in a veiled message, the Kigali establishment accused Uganda of detaining its citizens incommunicado and lending support to subversive elements bent on sowing seeds of mayhem in Rwanda, allegations Uganda has rejected. Ugandans and other nationalities are allowed to cross from either side at will. Rwandans are only allowed to enter their country but not to get out. Only Rwandan truck drivers are allowed to exit if transiting to Kenya, but not Uganda. Specifically, Ugandan goods...

Minister for Works, Transport and Communication, Eng Isack Kamwele told the National Assembly in Dodoma yesterday that talks are ongoing with various stakeholders to initiate cargo flights for the produce. He said: “We have been in talks for almost three months, we are about to initiate direct flight cargo for horticultural produce and fish. This will ensure Tanzanian products to easily reach markets”. The minister informed the lawmakers that already similar services had been done for horticultural produce in northern zone regions through Kilimanjaro International Airport (KIA). He explained that to begin, the government will hire a special aircraft purposely for export of fresh agricultural products in southern highland regions and fresh fish from Mwanza. He however noted that the government will in future make decisions to purchase specific cargo plane to transport the farm produce. Eng Kamwele made the explanation in response to a supplementary question from Rombo MP, Joseph Selasini who tasked the government to purchase a special cargo plane that will export the country’s farm produce including avocados. Selasini also claimed that avocado farmers in Kilimanjaro region are struggling to access internal and external markets. He added that most avocado farmers are selling their products to Kenyan traders at the lowest prices. “We could boost the income of farmers engaging in the horticultural sector by ensuring their produce are sold directly to markets abroad”, said the MP. In his basic question, Rungwe MP, Saul Amon (CCM) was concerned with lack of coordinated markets for horticultural products especially...

The African Development Bank (AfDB) will use its newly ramped-up capital base to help boost private sector investment on the continent and invest in infrastructure projects that support the African Continental Free Trade Area (AfCFTA). These are some of the plans the bank has for the additional $115bn (R1.7-trillion) recently approved by its shareholders, according to the bank’s vice-president for finance and CFO, Bajabulile “Swazi” Tshabalala. At the end of October, the bank’s shareholders agreed to more than double its capital base, the largest increase in the bank’s history, taking the total to $208bn. “We are looking to do more private sector activities and investments in support of the African continental free trade agreement because you need companies to actually trade with each other,” she said. The bank will also ramp up efforts to support African entrepreneurs, particularly women and young people. Tshabalala was speaking on the sidelines of the Africa Investment Forum, which closed in Johannesburg on Wednesday. The forum is designed as a deal-making platform and marketed 56 transactions from across the continent to international and regional investors. Investment interest was secured for deals worth $40.1bn, up from the previous year’s $38.7bn. The capital boost will provide the bank with “additional risk capacity” to support and crowd in investment by the private sector, particularly in low-income and fragile countries that have been neglected in the past, she said. This will include the use of instruments that help mitigate risks for private investors, including the bank’s co-guarantee platform. The...

The introduction of Entebbe-Mombasa direct flight by Uganda Airlines is set to boost trade and tourism between Kenya and Uganda as the route will cut the previous flight journey time by more than a half. The 110-minutes flight trip would play a vital role to thousands of Uganda traders who depend on the Port of Mombasa to do business considering more than 85 per cent of Uganda imported cargo pass through the port. The route will add value to travellers who used to spend more than three to four hours to fly from Entebbe connecting in Nairobi to Mombasa. Mombasa is an important city for Uganda and the East African region as the port is a logistical lifeline for the greater hinterland as a much-sought -after tourism spot and the new air link would be a perfect boost for business travellers, traders and holiday makers and it will be a great opportunity for coastal tourism to link up with Uganda, the pearl of Africa. The Ugandan Bombardier CRJ900 aircraft introduced on the direct flight to Mombasa from Entebbe landed in Mombasa on Monday, making it the second Kenyan city where the airline operates following an earlier launch of operations to Nairobi on August 27 this year. Uganda Airlines manager ground operations Harvey Kalama said the flights will ease doing business considering Ugandans play a big role in port business and in Mombasa tea trade auction. “We expect our clients to enjoy promotional flights in the next three months during holiday...

THE East African Community (EAC) and East Africa Development Bank (EADB) signed a Memorandum of Understanding with the Development Bank of Southern Africa (DBSA) to strengthen partnership in financing of infrastructure development projects. The DBSA Group Executive for Origination & Client Coverage, Mohan Vivekanandan signed the agreement with the EAC Director General (Customs and Trade), Kenneth Bagamuhunda and the EADB Head of Finance, Benard Mono at a brief event held on the second day of the Africa Investment Forum at Sandton Convention Centre. Speaking at the signing event, Mr Vivekanandan said the agreement sought to support strong economic growth in the region by supporting key infrastructure development projects and capacity development. “We know that East Africa has significant growth. It is the fastest growing region. What we do is to support this growth momentum by supporting key infrastructure development projects and build capacity of EAC and EADB,” said Mr Vivekanandan. The MoU with EADB would lead to a new line of credit of about 100 million US dollars with a long tenure of payment, he said. “There are a number of projects identified already. The agreement will enable us do due diligence to individual projects,’ he said. The agreement would enable the bank at a later stage use financial leverage for pooling resources for financing key infrastructure projects, he said. The EAC Director General for Customs and Trade, Mr Bagamuhunda said the signing ceremony was a milestone in strengthening relations between the East African Community and the Development Bank of...

The African Development Bank said Monday that many countries still maintain unnecessary visa restrictions which are impeding the pace of integration. In its latest visa openness index released in Johannesburg on the sidelines of the Africa Investment Forum, the Bank says few Africans can cross freely to another, but did not condemn any particular nation. In 2019, shows the index, only 26% of Africans are able to get visas on arrival in other African countries. This means that when one wants to travel to some countries, they have to either go to an embassy in a 3rd country or even strangely get the visa from embassy of a European country in their country. For example, this case shared by Patience Mutesi Gatera is typical of how rigid Africa borders are. On October 18, this is what she posted on Twitter: “Just met a friend who flew from #Kigali to #Nairobi just to get a Visa to #Malawi. The Visa costs $100, KGL-NBO return ticket $325 plus a full day wasted just to go get a stamp in your passport! Fam, we have a long way to go! #Africa WAKEUP!” Mutesi is no alarmist. She is Rwanda Country Director for TradeMark Africa, a trade development group, that among its projects has been building one-stop borders. The AfDB is calling on the continent to “make more progress on visa regimes, including introducing visas-on-arrival.” By breaking down borders,adds the Bank, Africa will be able to capitalize on gains from regional integration initiatives such...

East African heads of state are expected in Arusha on November 30 for the 21st Ordinary Summit as the Community marks its 20th anniversary while faced with several unaccomplished goals. The Community is currently witnessing frosty relations between countries coupled with an uncertain economic future saddled by a growing debt burden. Rwanda is at loggerheads with both Burundi and Uganda, while Kenya and Tanzania are still working through occasional trade disputes. On the agenda is the rotational hosting of the summit by member states as opposed to meeting in Arusha, a development seen as important to raising the profile of the bloc. The leaders will also review a report on the integration of a fragile South Sudan and consider progress on the verification exercise for the admission of Somalia into the bloc. The regional leaders are expected to cement their support for Kenya’s pursuit for a non-permanent seat at the United Nations Security Council. Bureaucratic overload Another departure from tradition will involve the heads of state holding a round-table with the private sector to set an economic agenda for the region, driven by goals that are in-sync with the African Continental Free Trade Agreement. “The summit is important in offering political goodwill which we intend to exploit in addressing issues that affect the private sector,” Peter Mathuki, East Africa Business Council’s executive director, told The EastAfrican. The admission of DR Congo into the bloc will also be on the table after its it made a formal application in June. EAC countries...

Damali Ssali. There are several factors that influence the value and volume of trade. However, tariffs on tradeable goods and services are one of the most significant factors. International trade grew dramatically in the second half of the 20th century. As an example, total global trade in 2000 was 22 times greater than it had been 1950. This increase in multilateral international trade occurred when trade barriers, especially tariffs, were significantly reduced or in some cases eliminated across large trade blocks in Asia, America and Europe. Tariffs are taxes levied on imports and exports between states with the aim of generating government revenues and protecting domestic industries. Sometimes, depending on the tax policy of the country, a tariff could be set as high as 60%. This is usually to protect a young industry that is considered as very important to that state. Other times tariffs are imposed by states, against products and services of another state, to settle scores. The current trade war currently going on between the United States and China is one such tariff war waged between states. In 2017, the United Nations Conference on Trade and Development reported that tariffs, on tradeable goods and services, between the developed states averaged at 1.2%. This is low compared to the average tariffs, on tradeable goods and services, between African countries, which stand at 8%.  Moreover, tariffs remain relatively high in important sectors, including agriculture, apparel, textiles and leather products. Unfortunately, these high tariffs make it easier for African countries to...

Our Reporter. A preliminary report on the anticipated impact of Africa Continental Free Trade Area (AfCFTA) indicates that Uganda will reap big from the One Africa Market arrangement because Africa currently stands as Uganda’s most important trade partner. This was revealed during the Uganda National Consultative Forum on AfCFTA, organized by TradeMark EA and United Nations Economic Commission for Africa (UNECA). “Africa as a regional market has already overtaken the European Union (EU) to become Uganda’s most important trading partner, with trade shares increasing from around 22 percent in 1995 to more than 30 percent by 2018. In terms of export values, Uganda now exports over 50 percent of its total exports to Africa, a figure far higher than the shares of other East African countries, highlighting the importance of the AfCFTA to Uganda,” the report reads in parts, adding; “Not only will the AfCFTA increase trade volumes with other African trading partners, but it will also enhance the prospects for export diversification by increasing the demand for manufactured goods.” Speaking at this workshop, Hon Amelia Kyambadde, the minister for Trade, Industries and Cooperatives highlighted that Uganda in in good shape to reap from the bigger markets that AfCFTA will open thanks to the country’s sustained investment in trade facilitation projects over the years, coupled with the positive strides undertaken by local manufacturers to improve product quality. “We have implemented several trade facilitation measures such as Electronic Single Window; Electronic Cargo Tracking; One Stop Border Posts; Non-Tariff Barriers (NTBs) identification...

Uganda’s sustainable investment in trade facilitation and the positive strides undertaken by local manufactures in improving the quality of local products has contributed to Uganda’s readiness to conquer bigger markets especially the Africa Continental Free Trade Area (AfCFTA), Amelia Kyambadde, the Minister of Trade, Industry and Cooperative, has said. Kyambadde made the remarks while officiating at the National Consultative Forum organized by TradeMark EA and United Nations Economic Commission for Africa (UNECA) at Golf Course Hotel in Kampala today. Kyambadde noted that Uganda in good shape to reap from the bigger markets that AfCFTA will open. “We have implemented several trade facilitation measures such as Electronic Single Window; Electronic Cargo Tracking; One Stop Border Posts; Non-Tariff Barriers (NTBs) identification and removal mechanism, Yellow Card Scheme and the Border Export Zones, among others…” Kyambadde said. She added that the Vision of the National Trade Policy is to transform Uganda into a dynamic and competitive economy in which the trade sector stimulates the productive sectors and to trade the Country out of poverty, into wealth and prosperity. “Our strategy on market access for Ugandan goods and services includes capacity building for the private sector to take advantage of these market opportunities plus provision of the necessary trade infrastructure such as affordable electricity and improved road network to ease logistics,” she noted. According to a preliminary report on the anticipated results of AfCFTA, “The African Continental Free Trade Area (AfCFTA) will increase Uganda’s intra-African trade by reducing tariff and non-tariff barriers on trade...