News Categories: Tanzania News

World trade organisations challenge to Kenya and Africa

The World Trade Organisation is holding its 10th Ministerial Conference (MC10) in Nairobi from 15 to 18 December. Foreign Minister Amina Mohammed will be chairing the conference. It will be a challenging undertaking. The minister was expressing a common African sentiment when she said (in Geneva on July 1) that the Doha Development Agenda negotiations cannot be concluded without "credible" developmental outcomes in Nairobi. She went on to say African countries will blame Kenya for hosting the 10th ministerial meeting in Nairobi when all their developmental demands are pushed under the carpet for concluding the round.  Need for East Africa and Africa to Unite at the MC10 Minister Amina is right. Oduor Ong’wen, the executive director of the ODM, congratulated the minister for her statement. In times like this, all nationalist forces must join hands and not let the WTO divide and rule the nation (or the region, or Africa). I write as chairperson of SEATINI (Southern and Eastern African Trade Information and Negotiations Institute). I was also, from 2004 to 2009, the executive director of the South Centre. The SC is a policy and research think tank of the global South based in Geneva. It was founded among others, by the late Mwalimu Nyerere. SEATINI is an NGO. Since 1997, we have been engaged in developing technical and negotiating capacity of East African trade negotiators in Geneva as well as in the capitals of East African countries. We have also been working with national MPs and members of the...

Tanzania, Ethiopia in top 10 index

East Africa can become a global and intra-regional trade hub but only if it dismantles all trade barriers in the region, according to researchers at the UK-based Barclays Bank plc. The researchers note that improving Customs  clearance procedures, facilitating greater cross-border co-operation, eliminating both tariff and non-tariff barriers  and increasing  investment in infrastructure such as roads, railway, ports, airports and energy  could transform the prospects for the region’s trade. “East Africa benefits most from relatively strong border administration and a fast-growing regional market,” they say. In their  Barclays Africa Trade Index (2015) report, the researchers  say many countries in Africa  have taken some positive steps  to boost  trade  by harmonising regulations along transport corridors, reducing stay times at the ports and delays associated with Customs control points and co-ordinating Customs processes across regional economic communities. The Barclays Africa Trade Index was commissioned by Barclays Bank Plc to compare and rank 31 sub-Saharan African countries based on their attractiveness for cross-border trade. The researchers sampled the largest countries in the region in terms of population size and national wealth (gross domestic product). According to the report, the appearance of Tanzania and Ethiopia among the top 10 performing countries on the overall index affirms the potential of East Africa as a promising hub for international trade. The report says many governments are also lowering tariff and other non-tariff barriers, pursuing a pro-business reform agenda and addressing the skills gap through better health, education and training services. The report notes that while East Africa...

Africa to lobby for more access to duty free market at WTO meeting

African countries are expected to lobby for more access to the duty free global market for agricultural products at the upcoming World Trade Organisation Ministerial Conference in Nairobi. Top on the agenda during the December 15-18 meeting is the issue of reduction of agricultural subsidies and implementation of domestic support measures to reduce competition from exports from developing countries. According to Peter Kiguta, EAC Director General of Customs & Trade, African countries are already negotiating on how to present these key issues to the other partners for negotiations. “This is the right time is Africa lobbying for support from developing countries to comprehensively address their issues,” said Mr Kiguta. African countries are seeking to address the issue of agricultural subsidies, “anti-dumping” barriers by rich countries like the US, Japan and Korea that restrict exports of agricultural products, steel and other goods from developing countries; the impact of lower industrial tariffs on domestic industries in many African countries; and the failure of the rich countries to provide adequate technical assistance to enable developing countries to comply with trade regulations and compete effectively. READ: Africa to negotiate for better terms at WTO meet READ: Africa to negotiate for better terms at WTO meet 
“Under the WTO, African countries have been forced to open their markets to cheap imports that undermine domestic agriculture and industry while rich countries have failed to lower their own trade barriers, which cost developing countries some $100 billion in lost opportunities,” said Mr Kiguta. He added that instead of...

Maize farmers face a crisis on East Africa import rules

Maize farmers are staring at a crisis, owing to the East African trade protocol that is increasingly allowing import of cheaper maize from Uganda and Tanzania. Uganda, whose harvesting season started in August, has already imported to Kenya huge quantities of cheaper maize, creating panic among farmers in the North Rift, Kenya’s food basket. The farmers are set to start harvesting in a month, just like those in Tanzania.  The EAC Protocol allows free movement of goods between East African countries — with the exception of sugar, which Kenya has restricted to protect its industries and farmers. The protocol also opposes the capping of maize prices by respective governments, in favour of market forces. Kenya, a net importer of maize, has been under pressure to implement the protocol fully. It traditionally depends on Uganda and Tanzania, which are surplus producers, to bridge the gap. But the two countries have been unable to fully exploit the market due to price setting by the National Cereals and Produce Board (NCPB). The board is the largest buyer of the staple grain and acts as the country’s maize central bank. When it sets a price, dealers adjust their prices accordingly, creating a ripple effect at both production and consumer levels. The price of maize across major towns is currently Sh2,900 for a 90-kg bag, except in Kisumu where it is retailing at Sh3,100. But maize from Uganda is already in the country, going for between Sh1,200 and Sh1,500 per bag in Eldoret. This is...

East Africa Eyes Chinese Infrastructure Devt Funding

East African ministers will, next month, head to Beijing for the annual Africa Power and Infrastructure Forum (AIPF) where they are expected to attract more Chinese investors into financing regional projects, including the proposed multi-billion dollar standard gauge railway. In its fourth edition this year, the forum is being organised by EnergyNet, an online oil and gas auction platform, in partnership with the China-Africa Development Fund formed in 2006 to support Chinese companies to develop investment partnerships in Africa. The fund currently has some $5 billion under its management and its handlers will be offering part of the money to African countries with attractive projects that require private investor financing. According to the organisers, more than 10 project proposals will be presented during the forum which takes place from October 15-16. The forum is expected to attract several Chinese investors looking for juicy investment openings at a time when China's economy is experiencing a downturn due to structural reforms. Rwanda, Uganda and Kenya are to each send a minister to jointly market the standard gauge railway (SGR), an important infrastructure venture aimed at facilitating regional trade along the Northern Corridor. The New Times understands that East Africa's lineup in Beijing will feature Rwanda's Minister for Infrastructure James Musoni, Uganda's State Minister for Privatisation Aston Kajara and Kenya's Treasury Cabinet Secretary Henry Rotich. Rwanda's Infrastructure ministry, when contacted yesterday, couldn't readily confirm whether Minister Musoni will attend the forum but Permanent Secretary Christian Rwakunda said China has already agreed in principle...

4000 EAC single tourist visas issued since February

Nairobi — An estimated 4,000 Single Tourist Visas (STV) have been issued since its launch in February 2014 for Kenya, Uganda and Rwanda. This represents a month-on-month improvement from an average of the 156 visas sold in the 10 months to December last year to 305 this year. Kenya Tourism Federation (KTF) Acting CEO Susan Ongalo says the improvement was due to an increased interest by members of the private sector umbrella body to participate in regional forums with a view of partnering and working with other players in member countries to develop unique East African products. "I came along with a delegation of 12 Kenyan tourism private sector players and county ministers for tourism who were keen to travel using their National Identification cards in order to better understand the process while cross-selling products within the region," Ongalo said during a tourism forum in Kigali, Rwanda, organised by East African Tourism platform (EATP). In July a report by KTF report acknowledged that a majority of regional and international travellers passing through Kenya are still unaware of the availability and process of using a Single Tourist Visa and National Identification for travel within the three countries. According to the research, up to 58.1 percent of travellers had neither used nor interacted with someone who had used STV, while 47 percent of travellers showed lack of familiarity on the existence of STV. During the forum, the East African Tourism players pledged to support and continue marketing the region as a single...

EAC to market region as a single tourist destination

Tourism players in East Africa have pledged to support marketing of the region as a single tourist destination with a view of reaping maximum economic value from the initiative. The players say they are targeting to tap into at least 10 percent of the 140 million population in the region. An estimated 4,000 Single Tourist Visas have been issued since the launch of the Single Tourist Visa initiative in February last year. This represents a month on month improvement from an average of the 156 Visas sold in the 10 months to December last year, to 305 this year. With the Visa, foreigners can visit tourist attractions in Kenya, Uganda and Rwanda on paying a fee of 100 dollars. East African Tourism platform Regional Coordinator Carmen Nibigira says there was need to package the region as one destination, celebrate flagship tourism events and find solutions to individual challenges together. Members also called for the speedy hotel classification within the East Africa region with a view of harmonising the product by next year noting that this would go a long way in ensuring services and products were of same quality across board. The three countries chose flagship products to be cross sold within the region with Kenya hosting the Magical Kenya Expo, Rwanda the Kwita Izina and Uganda, Martyrs Day. The operationalization of the single tourist visa and use of the national identity cards to travel across East African Community member states has increased trade and tourism activities due to the...

Dar port wins confidence of top global shippers

DAR ES SALAAM Port is steadily winning the confidence of shippers-thanks to massive improvements in its physical infrastructural capacity and operational efficiency. From customers in neighbouring landlocked countries to international shipping liners, the port had transformed with improved services and capacity to rival other established facilities along the coast of Indian Ocean. Last month, the port received a 255 (LOA) meters long vessel, the longest vessel it had ever handled early this month. The vessel, named Clemens Schulte from a top global shipping line Maersk Group, with a capacity to carry 5,466 containers, docked at the port early this month to signify the level of confidence international shipping liners have for the port. It discharged 250 containers and load 1,300 containers during the maiden call. Stakeholders applauded the new development saying it marked an important milestone in the efforts to upgrade operations at the port. “We see strong operational improvements in productivity and performance at the port, which provides the confidence for Maersk Line to commit this scale of vessel to the East African trade,” said the Chief Executive Officer of the Tanzania International Container Terminal Services Ltd (TICTS), Mr Paul Wallace. The improvements at the port are geared to restore its old glory what was once seen as the most efficient in the sub-Saharan Africa but could not hold the status for long. The performance of the port, which is the second-largest in East Africa had slipped dramatically over the past 20 years making it losing business to her...

Tanzania is now EA regional IT hub

BETTER telecommunication means speedy and cheaper access to information, which is a key factor for enhanced economic growth. Tanzania is determined to capitalise on this through its national fibre optic cable network also termed as the National ICT Broadband Backbone (NICTBB) and other links such as the East African Submarine Cable System (EASSy) and the SEACOM. The NICTBB fibre-optic backbone has been extended to nine border crossings with Kenya, Uganda, Rwanda, Burundi, Malawi and Zambia. The fibre optic network connectivity to more countries, mostly landlocked countries to the international cable having the landing points in Dar es Salaam is making the country a hub of ICT infrastructure and solutions within the region. Key to this objective is the NICTBB infrastructure programme, being rolled out phase by phase to provide Tanzania with what its name implies: a real digital backbone to bring a technological transformation to the whole country. According to the Liquid Telecom, Chief Executive Officer Mr Nic Rudnick, Tanzania is positioned to be a hub and potential to be guide way of fibre optic network connectivity for the East, Central and Southern Africa. "Formerly we brought capacities to Zambia and Zimbabwe from South Africa but for the first time we are bringing it from Tanzania," he said adding that Tanzania has a key role to play in from the telecommunication point of view in the east and southern Africa. He added, "We are ready providing redundancy to Kenya, Rwanda, Burundi and Zambia through Tanzania. And we would like to...

EAC benefits us all, let’s support it

What, in your opinion, is the relevance of regional integration? Across the world different regional integration blocs have come up on the basis of different issues. But for our case (East Africa) we are looking at creating a competitive ground for all countries, especially small ones as well as allowing comparative advantage to strengthen a particular country's production capacity. Has Uganda realised any benefits from the integration? Yes! Certainly there have been benefits, especially in the area of trade. For instance, in the last 10 years Uganda has seen its trade across the region increase both in terms of volumes and quality. Trade volumes and investments by Ugandans in countries like Rwanda and Kenya have increased partly because of free movement of goods, labour and capital. How does Uganda's regional exports and imports balance sheet weigh? Of course it is an unbalanced equation. We have a lot of imports coming in and fewer exports and that is one of the challenges we are facing right now. Our exports cannot provide a buffer against currency volatility. Therefore one of our main works as Trademark East Africa is to work with government and see how we can improve our export potential. How far have you reached in regard to creati ng one-s top border posts? You have hit the nail on the head. Ours is an effort geared towards reducing the cost of trade across the region, especially on transportation of goods. We have mainly put our emphasis on improving physical access...