East Africa’s intra-regional trade has declined for the second year in a row, due to the failure by partner states to agree on trade liberalisation and integration. These hitches are eroding the benefits of Customs Union and Common Market. The East African Community Secretariat, in a draft trade and investment report, says that the total value of intra-EAC trade fell by 14.6 per cent to $4.4 billion in 2016, from $5.1 billion in 2015. The decline, according to the report dated August 2017, was mainly due to a 33 per cent drop in total trade for Tanzania to $851.3 million, from $1.3 billion in 2015. The total trade for Kenya and Uganda fell by 10.1 per cent and 11.4 per cent respectively. According to the report, intra-regional trade constitutes only 9.4 per cent of the total trade of the bloc despite the implementation of the Single Customs Territory that provides for removal of tariffs and other barriers to trade among the partner states. The report cites a trading regime that restricts the export of certain commodities to partner states, lack of product diversification, and non-tariff barriers as hurdles to intra-regional trade. Kenya, however, continued to dominate intra-EAC trade, accounting for 34.8 per cent while Uganda and Tanzania accounted for 28.3 per cent and 19.4 per cent respectively. Common external tariff The Secretariat recommends a review of the common external tariff (CET) and the exemption regimes to allow goods produced in the region to enter the bloc’s market with few restrictions. “The region...

East African Community partner states have moved closer to implementing the Double Taxation Agreement by adopting the EAC Tax Treaty Policy and the EAC Model Tax Treaty. The EAC Tax Policy sets out the recommended policy positions that should be pursued in tax treaties negotiated by EAC with non-EAC countries. These policy positions reflect EAC countries’ current economic status as developing countries and net importers of capital as well as the need to protect their revenue bases without deterring foreign investment. According to a report by the EAC Council of Ministers’ meeting held in Kampala on November 27 to December 2, the tax policy will guide the countries on how to eliminate double taxation without creating loopholes for tax evasion. The EAC ministers during their meeting proposed that partner states should use the UN tax convention as the starting point with the aim of guiding countries in designing double taxation treaties, as well as in applying and interpreting them. The UN model is used by countries as a basis for negotiation of the bilateral tax treaties with emphasis on investment and technology transfer, while allowing governments to retain taxing rights over the money that comes from those investments. The EAC tax policy identifies the international tax norms that the EAC should follow with respect to scope, distributive rules, elimination of double taxation, non-discrimination, mutual agreement procedures and exchange of information. In terms of the scope, the policy suggests that EAC treaties should only cover income taxes as none of EAC...

East Africa’s economic growth is among the fastest in the world and its countries are becoming increasingly integrated and interdependent. USAID supports regional institutions, including the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), the Intergovernmental Authority on Development (IGAD), and their member states to address issues that require collaboration between countries. PROMOTING REGIONAL TRADE: USAID is reducing barriers to trade with and within East Africa by improving the efficiency and transparency of cross-border transactions, harmonizing safety and quality standards and reducing the time and cost of doing business in the region. Through greater investment and trade opportunities, our programs are advancing the interests of African entrepreneurship and the private sector, as well as its American counterparts. ENHANCING REGIONAL FOOD SECURITY AND RESILIENCE: By strengthening the ability of regional organizations to deliver on their mandate, USAID is helping safe, quality food move quickly and freely throughout the region. These investments also support research to address major agricultural threats such as aflatoxin and maize lethal necrosis, and help communities withstand cycles of drought without needing to rely on humanitarian assistance. BRINGING POWER TO AFRICA: USAID works with national governments and regional organizations to develop and improve power infrastructure, such as power plants and grids, and create the policies and regulatory frameworks necessary to fully utilize the region’s substantial renewable energy resources. IMPROVING THE HEALTH OF EAST AFRICANS: USAID helps marginalized and at-risk communities living and working in border areas and transit corridors access quality health services,...

For years African leaders have toyed with the idea of free movement by citizens across the continent, even raising the possibility of a single African passport. Now some African countries are taking bold steps to encourage borderless travel that could spur trade and economic growth on a continent in desperate need of both. Kenyan President Uhuru Kenyatta announced during his inauguration last week that the East African commercial hub will now give visas on arrival to all Africans. That follows similar measures by nations including Benin and Rwanda. "The freer we are to travel and live with one another, the more integrated and appreciative of our diversity we will become," Kenyatta said. The African Union has cheered such steps, calling it the direction the 54-nation continent needs to take. "I urge all African states that have not yet done so to take similar measures," AU Commission chairman Moussa Faki Mahamat said on Twitter after Kenya's announcement. Trade among African countries is at just 16 percent, while trade among European Unionstates is at 70 percent, Mahamat told AU trade ministers on Friday. For a continent whose leaders often speak fondly of "African brotherhood" and once pondered the idea of a United States of Africa, the visa policies of many countries for many years suggested little progress in implementing the continent-wide, visa-free ideal advocated by the AU. Africans can get a visa on arrival in 24 percent of African countries, yet North Americans, for example, have easier access on the continent, according to a 2017...

East African Civil Society Organizations' Forum (EACSOF) in collaboration with ActionAid's Global Platform will next week launch a three-year project for advocating African Charter. The project, among others, will mobilise the East African Civil Societies (CSOS) to support African Governance Architecture (Aga) through advocating for implementation of the African Charter on Democracy, Elections and Governance (ACDEG) within the region. The African Union (AU) adopted the ACDEG in January 2007 in Addis Ababa, Ethiopia to promote democracy, rule of law and basic human rights, ensure democratic rule and constitutional changes of power through free, fair and transparent elections. Slated for December 11, 2017, at the East African community (EAC) Headquarters in Arusha, the grand inauguration of the project, will go alongside with three-day regional workshop, to create awareness to youth, journalists and civil society organisations. EACSOF acting chief executive officer Martha Makenge told journalists in Arusha that the EA regional youth workshop will ponder, among others, the Aga, which is the overall continental framework for promoting, nurturing, strengthening and consolidating democracy and governance in Africa. The workshop will focus on six broad areas such as understanding Aga and ACDEG, youth activism in East Africa, enhancing Youth Leadership skills through efficient leadership and facilitation skills processes. It will also cover campaign planning by developing youth critical pathway, tools for mobilisation, organising and engagement strategies and skills via creative activism and non-violent actions. "Public action based on the baseline to raise awareness on the Aga and advocate to the government to ratify, implement,...

As the UK calls time on its 44 year membership of the European Union (EU), repercussions are felt further afield. African countries which currently access the EU via the UK, such as Egypt, Kenya, Nigeria and South Africa, or have the UK as their main end market within the EU will be exposed when the UK ceases to be an EU Member State. The impact will be different according to trade patterns: for example, Francophone countries that traditionally trade more with EU countries other than the UK will be less affected than those whose main EU trading partner is the UK. However, there are signs that the UK is keen to preserve and promote trade with Africa. In June 2017, the UK published its trade policy in relation to developing countries and in July 2017, the Minister for Trade Policy, Lord Price, visited South Africa and Namibia and met with ministers from the Southern Africa Customs Union (SACU) and Mozambique to discuss maintaining the existing trading relationship. There have also been recent official visits to The Gambia and Ghana. Meanwhile, the depreciation in value of the pound relative to major currencies since the Brexit vote, is negatively affecting value for companies in Africa with revenues and reserves in sterling and may lead to companies converting reserves into US Dollars. RISKS AND OPPORTUNITIES OF BREXIT Terms of trade The UK's notice to leave the EU expires end March 2019, but the terms of leaving remain the subject of negotiation. The UK...

For decades, Kenya and other African countries have overly tended to spend much of their political and diplomatic capital engaging countries located far from their borders, particularly the former colonial masters. As a matter of fact, Africans treat their peers with inexplicable disdain and hostility. Little wonder that it is sometimes easier to communicate or trade with someone located in Europe or Asia than on the continent. While much of that is informed by a colonial legacy that should have — with conscious effort — been eradicated, the situation persists. Granted, some trading and economic blocs have put effort to address this structural anomaly, but we are not there yet. The East African Community (EAC) has generally done a commendable job though. For instance, Kenya, Uganda and Rwanda have continued to open their capital markets to EAC members. Tanzania, albeit belatedly, has followed suit. This will help listed companies in the bloc easily raise capital as well as allow investors, including pension funds to diversify portfolios and make some cash. On Tuesday, President Uhuru Kenyatta during his second-term swearing in borrowed a leaf from Rwandan head of state Paul Kagame and allowed Africans coming to Kenya to be issued with visas at the point of entry. While this looks like an obvious step to take, it will have a lot of implications. For one, it can ease domestic tourism that should act as stabiliser for the fragile tourism industry. Besides, trading between the continent’s economies that has by and large...

Mr Kenyatta and his deputy William Ruto were sworn in to serve the country for the second term, saying only collaborations with their EAC partners will help in renewed energy and optimism to the country’s unity. The swearing in of the top leaders follows their victory in the recent repeat polls. At the well-attended inauguration ceremony at Kasarani Stadium in Nairobi, with presence of international and regional leaders, President Kenyatta said working together was the way to deliver peace and prosperity, which EAC citizens are yearning for. “We will work for peace in our region, for that is what good neighbours do,” he said. On behalf of President John Magufuli, the Vice-President, Ms Samia Suluhu joined other regional and international key figures to grace the event. She arrived in Nairobi yesterday morning accompanied by Deputy Minister for Foreign Affairs and East Africa Cooperation Dr Suzan Kolimba. “To our brothers and sisters in the East African community, you are our closest friends, our fate and yours are joined at the hip, our troubles and triumphs are yours, and yours are ours,” he stated. He said as mark of Kenya’s continued commitment to the fellow East Africans, from now on citizens from other EAC member states will be treated like Kenyans. “Like your Kenyan brothers and sisters, you will need only your identity card. You can now work, do business; own property, farm and if you wish, and find a willing partner, you can marry and settle in Kenya,” he assured, adding,...

Next year will be a good year for Sub-Saharan Africa. After a challenging 2017 for many of its nations, 2018 will see economic growth return across the continent, gas activity boom and fintech innovation pick up in speed. So says Ecobank Research as it recently launched the newest version of its yearly Fixed Income, Currency and Commodities Guidebook, which provides analysis on African markets for investors and businesses. The research department of the Pan-African bank forecasts three key trends that will take hold across Africa during the next 12 months. GTRtakes a closer look at them.   1. Rebounding economy after a trying year Low commodity prices have hit many economies across the African continent over the past few years and put the brakes on years of steep growth. But 2018 is expected to be the year that gives African growth a new boost. “Growth is returning to Africa next year,” Edward George, head of Ecobank Group Research, tells GTR. “Now that doesn’t mean we are seeing these amazing growth rates we saw maybe 10 years ago of up to 5% a year, but growth is definitely returning.” This growth will in particular be driven by a recovery in the region’s economic heavyweights such as Nigeria and South Africa – countries that have been especially challenged by slumping commodity prices. Ecobank also points to the ongoing growth in the continent’s top performers, Ethiopia, Côte d’Ivoire and, more recently, Ghana. “A lot of people got the wrong impression about the slowdown in growth in...

Rwanda, Tanzania, Uganda, Burundi and DR Congo officials have committed to work together in addressing challenges hindering cross-border trade in the region. The commitment, which is expected to help thousands of small-scale cross-border traders – especially women – to carry out their daily business smoothly, was made on Monday in Kigali during a regional advocacy meeting on cross-border trade. The meeting brought together regional public institution representatives whose mandates relate to cross-border trade. It aimed to discuss challenges and the progress made in addressing them in line with enhancing regional integration that enables cross-border traders to contribute to sustainable economic development. It was organised by Pro-femme Twese Hamwe, a civil society umbrella of 57 women advocacy groups in Rwanda. The cross-border trade features small businesses, like selling fish, tomatoes, milk, and fruits. It was noted that, despite its vital contribution to food security, providing employment as well as allowing people access to goods and services unavailable in their own countries at affordable prices, cross-border trade remains under developed. The major challenges faced by cross-border traders include limited access to credit, lack of information on regional trading protocols and services, robbery, gender based violence and confiscation. According to Rwanda’s Ministry of Trade and Industry, cross-border trade contributes over $ 170 million annually to GDP. Markets Robert Opirah, the director-general of trade and investment at the Ministry of Trade and Industry, said the Government has been creating a friendly operating environment for cross-border traders. The Government has been constructing markets at the...