East Africa is emerging as a trade hub to rival sub-Saharan Africa is two heavyweight states of South Africa and Nigeria, according to analysis by Barclays published on Thursday. However the UK bank identifies five “sleeping giants” that present significant new opportunities for foreign companies; Ethiopia, the Democratic Republic of Congo, Mozambique, Tanzania and Ghana. This quintet which are “playing catch-up after significant political and economic upheaval . . . are increasingly attractive to foreign firms and international investors with an eye on long-term returns from fast-growing markets,” Barclays said in its inaugural Africa Trade Index. Matt Tuck, head of global corporate banking at Barclays, said the five were open to international trade and had rapidly growing populations that are likely to reach 325m in total by 2020, comparable to that of the US. Moreover, any repeat of the 7.3 per cent compound annual economic growth they have experienced over the past five years would lead to a significant rise in household spending. Most are relatively unreliant on commodity exports by African standards, shielding them from some of the storms currently battering emerging markets. “The core underlying fundamentals are getting better and with more stable government it does represent an opportunity for growth,” said Mr Tuck. “It’s a much more encouraging outlook than in the past.” Overall, Barclays found South Africa and Nigeria offered the best opportunities for foreign companies, in terms of unmet demand, the absence of major barriers to cross-border trade and their connectivity with other African countries. While South Africa is...

Kenya, Rwanda, Tanzania and Uganda will begin issuing a common electronic passport in November. The national non-biometric passports will be phased out over a two-year period ending in 2017. But Burundi has until close to the cut-off date to change over, as its current document already conforms to the new international standard for passports. Benon Mujuni, Principal Immigration Officer in Uganda, said the new EAC e-passport will be launched by the heads of state during their annual ordinary summit, after which the responsible regional authorities will start writing to different international bodies to ensure that it is a recognised travel document worldwide. “ICAO [International Civil Aviation Organisation] is one of the international bodies that we shall inform about the internationalisation of the EAC passport,” he said. ICAO is responsible for coming up with regulations and standards in immigration and movement of mail and live agricultural products across national borders. The EAC set an October 2015 deadline for states to have completed the process of procuring passport booklets and issuance systems for the passports. James Baba, Uganda’s Minister of State for Internal Affairs, said that Kampala, which has just started the procurement process of the systems and booklets, is focusing on a November deadline. Mr Baba added that it is important for the region to start issuing this document by November 24, 2015, because this is when the international community will require all countries to phase out all non-electronic passports. Only Burundi currently issues an electronic passport, while Rwanda has purchased...

Kenya, Tanzania and Rwanda are funding a campaign to promote the use of the Single Tourist Visa and identity cards for regional travel.   The campaign, to be launched by the three countries’ tourism boards, targets immigration officers, travel agencies, airlines and tour operators. The uptake of the Single Tourist Visa and use of IDs for regional travel remain low, blamed on lack of awareness and poor information among travel and tourism, trade and hospitality providers. Uganda is in the process of issuing IDs; its citizens currently use voters’ cards to travel to Kenya and Rwanda. “We expect 10,000 visitors to have taken up the Single Tourist Visa offer,” said Susan Ongaro, the acting CEO of the Kenya Tourism Federation. Launched in February 2014, about 1,560 Single Tourist Visas were issued by end of that year. The Single Tourist Visa costs $100 for all three countries, instead of $50 for each. The findings of a baseline survey on the awareness of the Single Tourist Visa and IDs to facilitate travel, commissioned by KTF, revealed low levels of awareness among travellers. The June 2015 report indicates that 58.1 per cent of travellers to Kenya  had neither used nor interacted with someone who had used Single Tourist Visa; and 47 per cent of the travellers showed a lack of familiarity with the existence of the Single Tourist Visa. Immigration officials showed high levels of awareness on Single Tourist Visa use with up to 70.8 per cent having used or interacted with someone who...

Mistrust has emerged among the East African Community partner states over Tanzania’s commitment to the Economic Partnership Agreement that would give the region’s goods duty-free access to European markets. Tanzania is likely to delay the signing and ratification of the EPA document on the grounds that it was rushed through. Dar es Salaam has threatened not to sign the deal before its concerns on contentious issues are addressed. The region has until December 31 to sign the deal with the European Union or go back to the negotiating table. Initial document A source at the EAC Secretariat, who is privy to the matter, said Tanzania was forced to sign the initial document on the eve of October 14 after the EU threatened to withdraw its funding for agriculture under the European Development Fund (EDF). “At the time when Tanzania had refused to sign the initial document, discussions on when to release the EDF funds to member countries were ongoing in Italy. So Tanzania was given an option of either signing or forgoing the EDF funds. The same night they agreed to sign the EPA document,” said the official. READ: Relief for Kenyan exporters as Dar signs EPA document Of concern to Tanzania is liberalisation of imports from the EU where the EAC has committed to liberalise up to 82.6 per cent of all its imports from the EU. The area of concern is the export duties where the EAC partner states will not be allowed to impose new export taxes or increase existing ones unless they can justify special needs with regard to revenue, food...

By Elias Mhegera – Tanzanians that are involved in the cross-border businesses have been enlightened to reduce obstacles in order to allow the well functioning trade arrangements, together with movements of people and goods. The call was part of the deliberations during the two days   seminar to discuss cross border concerns in Dar es Salaam on August 3rd and 4th. The seminar was organized by the Policy Research for Development (REPOA), CUTS International, and the Trade Mark East Africa; it as well involved civil servants, and officials that are involved in cross-border transactions in various forms. Speaking at the occasion Prof. Samuel Wangwe, Executive Director REPOA said that the aim of the meeting was to adapt competition for proper functioning of the market, and for the benefit of all people. “The fundamental of any competition is to allow proper functioning of competition policy and a law, admittedly Tanzania has delayed to put forth the policies of fair competition because of the nature of its management and adoption of market economy,” commented Wangwe. Further, he reminded that fair trade competition is a matter of necessity, with an aim of improving the quality of life, and the abidance to the regulations of fair competition. Prof Wangwe dubs as the chairman of the Tanzania Fair Competition Commission. He counseled that in order to realize mutual benefit, there must be a will of all players. He reminded that the law on competition was established in 1994, but the Commission started its duties in 2009,...

Mistrust has emerged among the East African Community partner states over Tanzania's commitment to the Economic Partnership Agreement that would give the region's goods duty-free access to European markets. Tanzania is likely to delay the signing and ratification of the EPA document on the grounds that it was rushed through. Dar es Salaam has threatened not to sign the deal before its concerns on contentious issues are addressed. The region has until December 31 to sign the deal with the European Union or go back to the negotiating table. Initial document A source at the EAC Secretariat, who is privy to the matter, said Tanzania was forced to sign the initial document on the eve of October 14 after the EU threatened to withdraw its funding for agriculture under the European Development Fund (EDF). "At the time when Tanzania had refused to sign the initial document, discussions on when to release the EDF funds to member countries were ongoing in Italy. So Tanzania was given an option of either signing or forgoing the EDF funds. The same night they agreed to sign the EPA document," said the official. Source: The East African

TANZANIA Ports Authority (TPA) has welcomed the extension of Tanzania Inter-bank Settlement System (TISS) working hours, saying the decision was a game-changer in efforts to decongest Dar es Salaam port. TISS is an online system that facilitates real time and gross settlement of payment instructions between banks. Dar es Salaam Port Acting Manager, Mr Hebel Mhango, said in Dar es Salaam recently that the system was advantageous to the Authority and other stakeholders because it supported continuity of port operations under the new devised TPA working model. He reminded port users, especially cargo clearing agents, that the new facility was solely meant to ease their business in terms of efficiency, time and cost cutting. “We urge them to now change with the port speed and discipline of work by going 24 hours too. We will continue to sensitize our stakeholders on the new system,” he noted. Talking earlier, the Acting Permanent Secretary, Ministry of Transport, Mr Gabriel Migire, said the government through BoT has extended the working hours of the TISS to allow port users pay their taxes up to 8.00 pm. He said that apart from improving port efficiency with a view to attaining targets under the Big Results Now (BRN) initiative in the transport sector, the new extension would enhance government revenue collection and money transfers as well as improve efficiency in cargo handling. Over the last six months during its trial period, the system has recorded significant amounts of transactions. “Over the last six months during its...

Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and Rwanda on paying a fee of $100 (Sh10,600); Tanzania and Burundi are not party to the deal. Chief tourism officer of Rwanda Development Board said this illustrates that easing the visa process can significantly increase the uptake of the region’s tourism products. “Kenya and Uganda had to revise their visa fees in favour of the harmonised visa charges. It takes political will for that to happen and it’s good that our three leaders are committed to the process,” she said. Carmen Nibigira, the regional co-ordinator for the East Africa Tourism Platform, added: “We tour over a dozen countries in Europe using the Schengen visa. There is no reason East Africa should have restrictions when visiting all five countries.” Kenya Association of Hotel Owners and Caterers CEO Mike Macharia called on regional airlines to lower fares to enable more passengers take advantage of the new visa regime. Since East Africa’s single tourist visa was launched in February last year, 4,000 visas have been issued. This is a month-on-month improvement from an average of 156 visas sold in the 10 months to December last year, to 305 this year. With the visa, foreigners can visit attractions in Kenya, Uganda and...

The World Bank is short of Sh14.2 trillion for continued support of Africa’s infrastructure projects and emergencies. The World Bank Vice-President for Development Finance Joachim Von Amsberg asked for the support of members of the African Caucus (African Governors of the World Bank Group and the International Monetary Fund) to raise funds to replenish the International Development Association (IDA). "We have a large portfolio, a series of projects in preparation that will drive private investment. These are projects for which there is great demand and we are seeking to mobilise possible resources,” said the World Bank VP in a statement. Kenya in the East African region and Nigeria in West Africa have some major infrastructure projects that require a lot of funds. The countries largely rely on World Bank for funding. EBOLA Kenya’s road network urgently needs improvement. The country is considered among the World’s fastest growing economies. It has earmarked Sh5.5 trillion for infrastructure development. The donor blamed Ebola outbreak, floods in Malawi and the earthquake in Nepal as well, for depletion of a three year fund that got exhausted in the first year. RAED: World Bank releases Sh54bn for Kenya-S. Sudan road The funds meant to replenish accounts of World Bank, officially referred to as Official Development Assistance (ODA) are usually capped at Sh5.5 trillion. However, World Bank has stretched its request quoting the emergencies that still need attendance. According to Mr Amsberg, the funds help by maximising impact on development, leveraging public and private resources, in addition...

KAMPALA, Uganda - Regional manufacturers last week asked that the East Afrian Community (EAC) governments favour them when contracting for goods and services. In a set of resolutions and meeting as the First Manufacturing Business Summit, they agreed that public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology based business start-ups.  ‘To this end, the government of East Africa Partner States and the private sector are called upon to prioritize in their procurement, the sourcing of locally manufactured products including in agro-food, furniture, motor-vehicles, parts, apparels and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy-East Africa-Build- East Africa scheme (BEABEA)’, a statement reads in part. The Summit was attended by Dr. Mukhisa Kituyi, UNCTAD Secretary General, Amb. Richard  Sezibera, EAC Secretary General,  Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives,  Adan Mohamed, Cabinet Secretary for Industrialization and Enterprise Development, Kenya, Tabu Abdallah Manirakiza, Minister for Finance Republic of Burundi, Adam Kighoma Ali Malima Deputy Minister for Finance of Tanzania, Dr. Joseph Mungarulire, representing the Minister for Trade and Industry, Republic of Rwanda, Denis Karera, EABC Chairman, Amos Nzeyi, UMA Chairman. The business people also called for a regional Local Content policy which clearly defines ‘local’ in a regional content  to ensure that preferential treatments accorded to nationals are extended to all suppliers within  in East Africa region. The Summit was jointly organized by East Africa Community Secretariat and...