The EAC Regional Meeting on Trade Facilitation is the first meeting of the EAC Sub-Committee on Trade Facilitation under the UNCTAD Phase II project on Trade Facilitation, funded by TradeMark EA. The project is aimed at providing technical assistance to the EAC Secretariat and the EAC Partner States in trade facilitation reforms and simplification of trade procedures built upon the Trade Information Portals, all implemented by UNCTAD. The meeting will ensure a coordinated and harmonized implementation process of the trade facilitation policies in the EAC region. The EAC Regional Meeting will be held in Dar es Salaam, Tanzania, on 22-25 October 2019 under the leadership of the EAC Secretariat with the participation of the Chairs of the NTFCs, Representatives of the Customs Authority and the East African Business Council. At the end of the EAC Regional Meeting, the EAC Secretariat will prepare recommendations to be presented and adopted by the EAC Sectoral Council on Trade, Industry, Finance and Investment in November 2019. Source: United Nations Trade and Development

Recently, there has been a widespread recognition towards agriculture as an engine of growth and poverty reduction in developing countries.  Yet the sector keeps under performing in many parts of our continent and other developing countries. Globally, women produce 50% of global food products and comprise, on average, 43% of the agricultural labour force in developing countries according to FAO statistics. In African countries, according to the UNDP, the economic and social discrimination against women actually costs Africa USD 105 billion a year or 6% of the continent’s annual Gross Domestic Product(GDP). In Tanzania, agriculture is a principal source of income and livelihood for about 65% of the population contributing an estimated 30%to the GDP. There is a greater participation of women than men in the sector split 81% and 73% respectively -the number increases to 98% for women in rural areas. Many of the world’s poorest countries rely on traditional agricultural crops for export however,it has been proven that participation in high-value export commodity chains such as horticulture and fisheries provides considerable opportunities for growth and poverty reduction. An analysis conducted by International Trade Center Non-Tariff Measures Surveys across 20 countries in 2015 revealed that when it comes to gender parity, far fewer women owned businesses are engaged in international trade than those owned by men. Diversification into high-value agricultural exports has been cited as a key means of linking the world’s rural poor to global markets. But how do we unlock this potential of agriculture for improved livelihoods...

The African continent cannot continue to rely on foreign aid to finance its transformation, President Paul Kagame has said. Kagame was speaking in Abidjan at the 8th CGECI (Confédération Générale des Entreprises de Côte d'Ivoire) Academy, the largest annual gathering of Private Sector in the West African country. The summit brings together the private sector of the West African countries and covers topics such as avenues to grow competitiveness, relevance and growth among other topics. "We have to reach a point where our countries have the capacity to finance our own transformation. Development aid has been useful and it continues to be useful, especially when we work to get the most impact out of every cent that we receive. But the point has never been to remain dependent forever when we have always had the potential to be wealthy ourselves," Kagame said during the keynote address. Rather than continuously look to other countries for aid, Kagame said that there are more productive ways for Africa to partner with various countries and regions for mutual benefit. This year's conference is themed around creating a conducive business climate. To create a more conducive business climate, Kagame said deliberation among public and private sector from various countries are crucial to share connections and experiences. "One way to advance this cause, is through forums like this one. Coming together here, we make useful connections, share experiences, and learn from each other. The starting point is ensuring that relevant actors in both the public and...

Duplicate standards and regulations across different state agencies are stifling businesses and investments in the country, United Nations Industrial Development Organization (UNIDO) has warned. The UN specialized agency that promotes industrial development yesterday called for harmonization of standards and regulations, both in the private sector and government, to ensure the cost of doing business remains low. According to UNIDO, the private sector has for long suffered from regulations and standards that are similar across the ’numerous’ state agencies, where costs such as licensing and inspection fees are payable. This has continued to ‘punish’ business and the private sector at large, the agency notes. “Government needs to have regulations and standards that address the real problem not just over regulating, it needs to address only the problem, we don’t want laws to become roadblocks we want laws that are facilitative,” said Andrew Edewa, UNIDO standards expert. He spoke during the World Standards Day(2019) celebrations in Nairobi, an event snubbed by the Industry, Trade and Cooperatives CS Peter Munya and the Kenya Bureau of Standards (KEBS) managing director Bernard Njiraini. According to the UN, there are laws in the health department, trade, industry among other state organs that are duplicated, adding pressure to the private sector. These add to business to business standards which all put together, they are stifling businesses. “The government is speaking tough on their end , private sector has its own business to business standards, the marrying of these two seems to be a problem and it is affecting...

The value of Kenya’s exports to key East African Community’s markets hit a three-year high in first eight months of 2019, official data shows, partly helped by Nairobi’s efforts to ease trade tensions with Tanzania. Earnings from goods sold to Uganda, Tanzania and Rwanda stood at Sh77.32 billion in the January-August period, fresh data from the Central Bank of Kenya indicates, a 5.98 percent growth over Sh72.99 billion in similar period in 2018. Kenyan factories have in recent years struggled to grow exports in regional markets largely due to tariff and non-tariff barriers fuelled by mistrust and unresolved trade disputes, particularly with Tanzania and, in some isolated cases, Uganda. Manufacturers have also blamed multiple fees and levies, relatively high power charges and inefficiencies at factories for piling up the cost of production, making locally-made goods expensive in regional markets. Ministries of Trade and EAC Affairs have been reaching out to their counterparts in Tanzania and Uganda with a view to finding a long-lasting solution to on-and-off disputes that usually hit Kenyan products such as confectionery and cement. “The Kenyan team has done a very commendable job in working with the EAC secretariat in bringing both tariff and non-tariff barriers down, and we are also seeing very concerted efforts also on the part of Tanzania to bring these barriers down,” said Sachen Gudka, the chairman of Kenya Association of Manufacturers (KAM). Source: Daily News

The intra-Global Climate Alliance Plus (GCCA+) Programme on supporting Climate Change Adaptation and Mitigation Actions in the East African Community has been launched at the EAC Headquarters in Arusha, Tanzania. The European Union (EU) is providing funding to the tune of 1.6 million Euros for the four-year project which commenced in July 2019 and runs up to June 2023. The project which was launched by the EAC Secretariat in collaboration with the EU will, among other things: support EAC Partner States in addressing different climate change challenges; reviewing and updating their Nationally Determined Contributions (NDCs) for the effective implementation, and; developing community based climate change initiatives that will have tangible impacts on local communities. In his opening remarks, the Chairperson of the Meeting, Eng. John B. Kizito, on behalf of the Ministry of Foreign Affairs and International Cooperation, Rwanda thanked the EU for its support in enhancing the capacity of the EAC region on climate change, strengthening the implementation of climate change actions, the Paris Agreement and regional capacity to access climate change funding. Eng. Kizito cited some of the challenges posed by climate change in the region and echoed the need to take concerted measures in strengthening resilience while adopting low carbon and sustainable development pathways. The EAC Deputy Secretary General in charge of Productive and Social Sectors, Hon. Christophe Bazivamo, who represented the Secretary General, reiterated the EAC’s commitment to mitigate the impacts of climate change, adding that the Community had developed EAC Climate Change Master Plan (2011-2031),...

The East African Community (EAC) member states on Thursday pledged to enhance cooperation in order to curb tax revenue losses. Patrick Mukiibi, commissioner of tax investigations department, Uganda Revenue Authority told Xinhua in Nairobi that the exchange of information in the economic bloc is critical to boosting domestic resource mobilization. “The overall aim of joint investigations is to boost the tax compliance rate which has a positive effect on tax authority revenues,” Mukiibi said during the East Africa regional meeting for commissioners of investigation and enforcement. The meeting brought together tax investigation commissioners from Kenya, Uganda, Rwanda, Burundi and Tanzania to discuss ways of detecting and combating tax evasion and tax crimes in the region. Mukiibi said that enhanced collaboration is necessitated because companies in the region have set up subsidiaries in other partner states. “It is also important to work together in order to learn lessons from each other given that different countries have developed different capacities and competencies,” he added. According to the Ugandan tax official, optimum regional cooperation will require that some national laws be amended in order to ensure a harmonized domestic tax regime. David Yego, commissioner of tax investigations and enforcement at Kenya Revenue Authority said that sharing of intelligence across the trading bloc will ensure that tax fraud and evasion that is committed across borders are detected and those found culpable are prosecuted. Source: CGTN Africa

The Common Market for East and Southern Africa (Comesa) has launched two projects aimed at formalising cross-border trade among small scale businesses. The move is expected to enhance Malawi’s exports under the block. This follows the inaugural meeting of the projects steering committee which began on Monday in Lusaka, Zambia. The first project is a €15 million Regional Small-Scale Cross Border Trade Initiative (SSCBTI) while the second is a €53 million Trade Facilitation Project, both funded by the European Union (EU) under the 11th EU Development Fund. The Trade Facilitation Programme aims at increasing intra-regional trade flows of goods, persons and services by reducing the costs and delays of imports and exports at specific border posts. It is expected that this will be addressed through reduction of non-tariff barriers, implementation of digital Free Trade Area, World Trade Organisation Trade Facilitation Agreement, improvements of the Coordinated Border Management and liberalisation of Trade in Services and free movement of persons. A statement from Comesa says implementation of the two projects is expected to contribute to higher revenue collection for governments at the borders, increased security and improved incomes for traders. “The SSCBT initiative is designed to address challenges facing small scale traders which include high transactions costs arising from delays at the border, high taxes and high transport costs; corruption and harassment among others,” reads the statement in part. Spokesperson in the Ministry of Industry, Trade and Tourism, Mayeso Msokera, said the development is expected to boost government’s revenue and trade for...

A proposal to amend the East African Community (EAC) Customs Management Act, 2014, to extend the time for removal of bulk containerized goods from the ports of discharge, is in the offing, in a move likely to reduce the cost of doing business in the region. In the regard, the Assembly has granted EALA legislator Abdikadir Omar Aden, leave to introduce a Bill to amend section 34 (5) of the existing Customs Management Act, 2014, to realise the above objective. With it, the Assembly further adopted a motion to amend the Act, when it received support yesterday. The Motion moved by Mr Aden, Chair of the General Purpose Committee and seconded by Dr Abdullah Makame, was moved under Article 49(1), 59(1) and Rule 26 of the Rules of Procedure of the House. At the moment, under the existing Act, the entry of cargo is required to be made within twenty-one days from the date of discharge of the vessel failing which the goods contained in the cargo begin to attract a charge or demurrage. However, Hon Aden avers that extending the time for removal of large consignments from the port of entry would eliminate demurrage charges and hence goods more affordable and allow for longer storage period to facilitate clearance. In the EAC, all cargo coming in to the region enters through the designated ports but mainly through the ports of Dar es Salaam in the United Republic of Tanzania and Mombasa in the Republic of Kenya. “I am concerned...

THE East African Business Council (EABC), in partnership with East African Community (EAC) and USAID support has convened over 38 industry champions and business leaders from the region to discuss opportunities of the African Continental Free Trade Area (AfCFTA), tariffs, rules of origin and trade in services. The EABC Chief Executive Officer (CEO), Peter Mathuki said in his opening remarks in Arusha yesterday that, “We need more public-private dialogue and involvement of the private sector in the negotiations of the AfCFTA at national, regional and continental levels,” He urged the EAC Partner States to eliminate barriers to trade, improve infrastructure and enhance regional value chains through manufacturing to harness opportunities availed by AfCFTA. He appreciated Rwandan President and the Chair Emeritus of the African Union and current Chair of the Summit of EAC Heads of State Paul Kagame President for championing the 1.2 billion continental markets. “Given that commencement of trading within the AfCFTA is slated for 1st July 2020, the East African private sector is steadfast in setting pace of the AfCFTA negotiations. EABC is in close discussion with the African Union and has offered to host the first-ever African Business Council in East Africa,” he said. In his remarks, Mr Christophe Bazivamo, the EAC Deputy Secretary General for productive and social sectors reiterated EAC’s commitment to work in close partnership with the private sector. “The world is targeting the Africa market, what are we targeting as East Africans?” said Bazivamo. He further said the EAC has agreed to...