An official from the European Union has asked the East African Community to sign the Economic Partnership Agreement, saying it will not necessarily affect the region’s industrialisation drive. Commissioner for international co-operation and development Neven Mimica said the EU will continue negotiations so that all member states can endorse the EPA which “will open European markets to East Africans.” The region is divided on the EPA which needs approval from all member states. Kenya and Rwanda signed the deal last year. In September, Uganda’s President Yoweri Museveni led trade ministers from the region to the EU headquarters in Brussels in an effort to reach a regional consensus. In March, Kenya accused Tanzania and Uganda of insincerity in their refusal to sign the EPA. President John Magufuli had in February described it as a form of colonialism at a joint press conference with President Museveni at State House in Dar es Salaam. “We have discussed the EPA for a long time but it seems like another form of colonialism… it is bad for our country,” said President Magufuli. He said that after studying the EPA, he had realised that African countries would not benefit from it economically as its architects touted. President Museveni warned African countries that EPAs might break up their unity. “It is better if the signing is shelved until further consultations are made,” he said. Source: The East African

Trade disputes and mistrust among member states threaten to scuttle efforts to integrate the East African Community into a single economic and political bloc. Hardline positions taken by the member states on various issues affecting the region has watered down provisions in the Treaty, which provides for peaceful settlement of disputes. Chapter six of the EAC Treaty lays down the fundamental principles designed to govern the achievement of the goals of the regional bloc by partner states. These include mutual trust, political will and sovereign equality. Others are peaceful co-existence and good neighbourliness, peaceful settlement of disputes, and equitable distribution of benefits. The EastAfrican reviewed major trade deals that have caused friction among EAC partner states while threatening the stability of the bloc. While EAC Common Market Protocol liberalised the movement of labour in the region and set December 31, 2015 as the deadline for the partners states to waive permit fees, only Kenya, Uganda and Rwanda have complied. Tanzania and Burundi still require work permits for which all non-nationals have to pay fees, contrary to the protocol. Tanzania has since disregarded calls to abolish work permit fees for other citizens of the EAC and in November last year, the country’s Immigration Department only reduced the fees to $500 from $2,000 for EAC citizens seeking to work in Tanzania. The Protocol for the Establishment of the East African Community (EAC) provides for the establishment of a Customs Union and a Common Market as transitional stages to and integral parts of the Community. But a report on the elimination of non-tariff barriers in...

Protection of East Africa’s dairy and motor vehicle industries from competition is one of the stumbling blocks facing a trade agreement with southern African states. The East African Community (EAC) is negotiating a deal with the Southern African Customs Union (SACU) to scrap import duty on at least 60 per cent of products traded between the blocs. However, a report released last week by the Council of Ministers on EAC Affairs and Planning shows that the two bodies failed to agree on several key tariff lines in a September meeting in Johannesburg. SACU requested that the EAC scrap duty on dairy products and motor vehicles within five years of signing the deal. The EAC did not respond positively. “On motor vehicles and dairy products, (the) EAC has responded that the products are sensitive due to their strategic importance for economic development in the EAC,” says the report. The EAC did agree to carry out an analysis on the implications of scrapping duty on motor vehicles. SACU also asked for immediate the liberalisation of trade in refrigerators, plastic tubes, beef, salt and wines once the deal is signed. EAC “agreed to offer only refrigerators for immediate liberalisation,” pleading time to consult on the rest. The southern African countries were similarly unreceptive of EAC’s request to liberalise trade in textiles, cut flowers, edible oils, fruit juices, coffee and vegetables. SACU’s member states are South Africa, Botswana, Lesotho, Namibia and Swaziland. The blocs have already agreed to liberalise 66.7 per cent and 64.25...

Grain handlers have asked millers to collect subsidised maize from Mombasa port and forestall a looming shortage. Grain Bulk Handlers Ltd (GBHL) on Sunday said more than 20,000 tonnes of maize was at the port awaiting collection by processors. The government allowed importation of duty-free maize on May 4 as drought ravaged many parts of the country. The window was to expire on July 31 but was extended to September 30. SHIP Millers on Friday said delays at the port had resulted in maize shortage and warned that it would hamper their efforts to process the Sh90 per 2kg-pack subsidised flour. However, GBHL terminal manager Michael Mwakamba asked the companies to get their stock. “There were delays in offloading cargo because of heavy rains but operations are back to normal. We are offloading at least 14,000 tonnes of grains daily, 6,000 of them maize,” he said as 42,000 tonnes were being unloaded from a ship. “We have witnessed a drop in off-take of the maize as millers concentrate on wheat. In total, there are about 135,000 tonnes of maize and wheat in our silos awaiting collection.” He said whereas at least 350 trucks were required to meet the demand of packaging daily, transporters were sending only 200. The official said priority was on offloading maize to clear a backlog of at least 160,000 tonnes in 20 days. Due to the anxiety associated with the unpredictable political climate in the country, transporters scaled down their fleets, fearing their vehicles would be...

President John Magufuli said, yesterday, during a joint press conference with his host Ugandan President, Yoweri Museveni, at Masaka State Lodge that the two countries need to boost economies through trade relations. The two leaders directed ministers responsible for trade from both sides to discuss the best ways to boost business, for the benefit of ‘wananchi’ and the nations at large. The two leaders were speaking on the issues they had discussed during their meeting in Masaka. President Magufuli is in three-day state visit in Uganda. He said that in a bid to boost trade between the two countries’ traders, goods that will be shipped in the country through Dar es Salaam Port will be received in Mwanza by Ugandan traders. “This means that Ugandan importers, clearing agents and exporters will be able to clear goods in Mwanza without having to travel to Dar es Salaam,” said the Head of State. President Magufuli said both sides need to put more efforts to make sure there is improvement in doing business. He said the two countries have a good historical relationship but they have not been doing well when it comes to business relations and development of economies. He said trade between Tanzania and Uganda is on average of 200bn/- annually, which is low compared to available opportunities and good relations between the two countries. According to President Magufuli, Ugandans’ investments in Tanzania amount to only 47 million US dollars and employ 146,000 Tanzanians. He added that likewise Tanzanian investments in...

The President made the call yesterday while launching the One Stop Border Post (OSBP) at Mutukula, in Misenyi District in company of his Ugandan counterpart, President Yoweri Museveni, of the Republic of Uganda. He said the people in EAC region should properly utilise the OSBPs positions to enhance trade relations for the benefit of all in the bloc, adding that in his leadership, trade and bilateral relations between Tanzania and other EAC nations are paramount. Dr Magufuli thanked the United Kingdom through Trade Mark East Africa (TMA) and other development partners for funding the construction of the OSBP at Mutukula border post and the infrastructure. He said the project that would cost a total of 160bn/- upon completion was a good gesture of the cordial relations existing between them, adding: “We cordially thank the UK and other development partners for funding the project. The government highly appreciates the timely assistance.” The president further said opening of the OSBP at Mutukula border post, has made revenue collections increase to 380.5m/- from November 2015 to-date with the assistance of Tanzania Bureau of Standards (TBS) as the watchdogs. Tanzania has nine OSBP facilities, but only four of them named as Kabanga, Mutukula and Rusumo in Kagera Region and Holili, in Kilimanjaro Region operate in full capacity. Some OSBP which operate below capacity due to lack of sufficient infrastructure in the country include Kasumuro (Mbeya), Sirari (Mara), Holoholo (Tanga), Tunduma (Songea) and Namanga (Arusha). During the occasion, the president also emphasized how Tanzania and...

Tanzanian President John Pombe Magufuli has called on the investors involved in the 1,445km construction of the crude oil export pipeline from Hoima, in mid-western Uganda to Tanzania’s Indian Ocean port of Tanga, to fast-track its construction process. Magufuli noted that the 3-year timeline provided for was too long and means should be devised to reduce it. Magufuli who is in Uganda on a three-day visit, also lay a cross-border mark stone at Luzinga Village for the East African Crude Oil Pipeline and addressed a rally in Kyotera. “Why should we wait for the proposed competition date of 2020 and yet you the investors have the money? The experts are here. You can hire as many contractors as possible and give each of them a section of the pipeline to construct or ensure you have both day and night shifts. After all you know that when we start pumping the oil you will get back your investment and returns,” Magufuli said. Addressing hundreds of people who turned up at the official opening of the Mutukula one stop border post in Rakai district on Thursday, Magufuli thanked President Yoweri Museveni for accepting the pipeline to go through Tanzania and assured him of security. Magufuli and his Ugandan counterpart, Yoweri Museveni later commissioned the one stop border post at Mutukula. Magufuli noted that other countries in the region wanted the same pipeline but that Museveni had listened wisely and opted for Tanzania. Construction of the oil pipeline that is expected to commence early...

The Presidents of Uganda and Tanzania, Yoweri Kaguta Museveni and John Pombe Magufuli respectively have today launched the Mutukula One Stop Border Post (OSBP). OSBP is an integrated border system that leads to improved efficiencies through streamlined, coordinated and harmonised procedures under one roof/structure. In Mutukula, Uganda Revenue Authority (URA) and Tanzania Revenue Authority (TRA) officials jointly serve importers, exporters and travellers. This facilitates trade and quick movement of passengers. President Museveni urged East Africa Community member states to put emphasis on agriculture, industrialisation, information communication technology and public service a tools of economic growth. Trade facilitation, he said, would lead to prosperity for all by enabling border communities to do business. President Magufuli concurred. TradeMark Africa, with support from UK’s Department for International Development (DFID) and Global Affairs Canada, funded its construction and operationalisation at sh19.1bn. Other OSBPs in Uganda are Mirama Hills connecting Uganda to Rwanda, Busia & Malaba connecting Uganda to Kenya. TradeMark has injected over $117m OSBPs in the region. Customs initiatives like OSBPs and the Single Customs Territory (SCT) have catapulted growth in volumes of goods cleared through Mutukula from sh384bn in 2013 to sh617bn in 2017 and exports from sh93bn to sh251bn over the same period. In Tanzania, sh27,776,716,217.00 ($12m) was collected from August 2016 to June 2017, the time during which the Mutukula OSBP has been operational compared to the 2014/2015 when sh18,646,417,015.00 ($8.1m) was collected. Customs initiatives like OSBP, SCT, Regional Electronic Cargo Tracking System (RECTS) and the Uganda Electronic Single Window...

The United Kingdom’s minister for Africa, Rory Stewart is in Rwanda for his first official visit to the country, according to the kingdom’s High Commission. According to a statement by the UK High Commission in Rwanda, Stewart will hold meetings with representatives from the government of Rwanda to discuss areas of mutual interest for the two countries. The discussions, according to the statement, will touch on development partnership, economic growth, trade and the Commonwealth. “As well as meeting leaders, Stewart's visit will cover a number of existing UK aid funded projects which are promoting poverty reduction and increasing economic growth and inclusion,” reads part of the statement. Stewart is also in charge of the UK Department for International Development (DfID). While in Rwanda, he will see the impact of DfID programmes on improving access to land and strengthening land rights, as well as their work to extend financial services to some of the poorest people in Rwanda. “I am proud that the UK has been able to support Rwanda on this journey – contributing to its achievement of lifting almost a quarter of a million people out of poverty since 2010.- and it is great to see the strong partnership that we’ve built. Investing in peace, development and security in Rwanda is essential for stability in the Great Lakes and in both Rwanda’s and the UK’s long term interests,” he said ahead of his visit. In Rubavu, Stewart will see how UK aid, channelled through TradeMark Africa (TMA) Rwanda, is...

With the launch of the Mutukula One Stop Border Post (OSBP), speed of doing business along the Uganda and Tanzania common borders should greatly improve the economies of the two countries. Time, it has been numerously stated, is so valuable; more precious than gold and diamond. No amount of money can buy back a moment wasted. William Penn, one of the earliest advocates of democracy and religious freedom, says although time is what human beings desire most, it is also what we use worst. This assertion is epitomised by the millions of shillings lost daily through wastage of time as a resource at our common border posts. For East Africa’s landlocked countries of Uganda, Burundi and Rwanda, every precious resource must be fully utilised to maximise benefits of trade with other East African neighbours. That is why the launch of the Mutukula One-Stop Border (OSBP), brings joy and a major sigh of relief for traders, importers and exporters who use the Uganda/Tanzania border point. At last, they can smell prosperity through efficient and lucrative trade. Transit goods, passengers, travellers and exports exiting through Mutukula to Tanzania, will stop once on the Tanzanian side for clearance by Immigration and customs (as opposed to stopping twice on both the Ugandan and the Tanzanian side). The OSBP will also reduce the amount of paper work required among local traders during import and export procedures. By integrating the revenue authorities and various institutions and agencies, trade can literally grow faster. The OSBP follows in tandem with the November...