News Tag: Uganda

EAC services held back by turf wars

BRAIDS: Tanzanian Maasai hair stylists organise themselves to avoid these restrictions and provide services informally abroad beyond the EAC.   Trade in professional and education and health services features high on the agenda of policy makers and regional organizations in Sub-Saharan Africa, but a host of roadblocks are in the way preventing this from happening. For example, according to ‘The Unexplored Potential of Trade in Services in Africa’ a report commissioned by the World Bank, all five East African Community (EAC) countries have committed to removing the most explicit barriers to trade in education and health services as part of the 2010 EAC Common Market Protocol. Several EAC countries have placed professional services at the top of the list to be integrated in the EAC Common Market. But despite progress in recent years, most regional services markets remain fragmented by restrictive policies, such as nationality requirements, and regulatory heterogeneity (these are non-tariff barriers that originate from national regulations), for licensing, qualification, and educational requirements. Critics say the central issue is ‘protecting one’s turf’. Lawyers, accountants, doctors and the other professionals do not want nationals from neighbouring EAC member states upsetting their cosy relationships. Consequently, several barriers, beyond perhaps a lengthy accreditation process, are then put in place to frustrate allcomers. Despite strong demand for services provided by foreign suppliers, undertaking trade is not easy. Multiple barriers are placed on the physical movement of service suppliers, including high-priced visas, difficulties obtaining work permits, and elusive residence status. To circumvent such barriers,...

Rwanda now makes case for signing of EPA

According to EPA terms, the EU can only strike a trade deal with a bloc comprising several nations, meaning a single country cannot go it all alone. PHOTO | FILE | NATION MEDIA GROUP  IN SUMMARY Rwanda’s Minister for Trade and Commerce Francois Kanimba said politicians should put the region’s collective gains ahead of individual state interests and put ink to paper on what he believes is a “good deal” for the region. Rwanda’s Minister for Trade and Commerce Francois Kanimba has warned of cracks in the East African Community if member states fail to sign the Economic Partnership Agreement (EPA) with Europe. Mr Kanimba said politicians should put the region’s collective gains ahead of individual state interests and put ink to paper on what he believes is a “good deal” for the region. “The issues being raised against the EPA are issues that have really been taken care of and sufficient safeguards have been put in the final agreement to ensure the protection of our infant industries,” he said. “If in the future there is a threat to our economies, we can renegotiate. The EPA is not a bible. We agreed that after every five years, we totally renegotiate and evaluate the agreement. If at any time any member state feels disadvantaged by the EPA, it can raise the issue for discussion,” Mr Kanimba added. He termed the EPA a “strong commercial benefit from a trade perspective,” views that are not supported by Tanzania and Uganda. Former Tanzanian president...

Kenya’s cap on interest rates could impact EAC monetary Union

A law capping interest rates in Kenya has stoked fears of copycat legislation in East Africa and a reversal of common integration policies ahead of the launch of a regional monetary union. TEA GRAPHIC | FILE IN SUMMARY A law capping interest rates in Kenya has stoked fears of copycat legislation in East Africa and a reversal of common integration policies ahead of the launch of a regional monetary union. Under the East African Community Monetary Union Protocol, the member states committed themselves to pursue a free market economy with a floating exchange rate. Experts believe the law will block credit from reaching higher risk borrowers and could force banks into mergers, replacement of staff with technology and to establish subsidiaries in regional markets where interest rates are not capped. A law capping interest rates in Kenya has stoked fears of copycat legislation in East Africa and a reversal of common integration policies ahead of the launch of a regional monetary union. By virtue of Kenya being the most developed economy in the East Africa Community, its apparent abandonment of the free market ideals at the heart of the monetary union convergence criteria has left regulators and investors uncertain of the direction of the protocol. National Bank of Rwanda Governor John Rwangombwa said money managers across the region were waiting to see the impact the caps would have on access to credit but maintained that controls were not always good in managing financial issues. “National laws are supposed to address...

Japan expected to pledge over $32b for projects in Africa

Japanese Prime Minister Shinzo Abe speaks at a Ticad VI side event in Nairobi on August 26, 2016. PHOTO | SIMON MAINA | AFP IN SUMMARY In the previous meeting in Yokohama, Japan, the Asian nation pledged $20 billion. This has seen it fund several projects across various sectors. Ahead of the meeting, African countries agreed to speak with one voice in pushing for more investments in health and skills development, as well as social-economic infrastructure projects. The Draft Nairobi declaration report seen by The EastAfrican puts emphasis on skills development, science, technology and innovation especially for the youth.   African countries expect Japan to pledge more than $32 billion for industrialisation, water, security, education and health projects at the sixth Tokyo International Conference on African Development (Ticad) meeting in Nairobi this weekend. Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed said Ticad VI would be dealing with “a number of critical issues pertinent to Africa.” “The key areas are the overall continental economic growth agenda; Africa’s infrastructure development programme; agriculture and farming; peace and security as well as, questions of social inclusivity. So far we expect more than 60 memoranda of understanding to be signed between Japan and African governments during the forum, highlighting one of the biggest potential benefits the African business leaders will obtain from the summit,” said Ms Mohamed during an interview ahead of the meeting. In the previous meeting in Yokohama, Japan, the Asian nation pledged $20 billion. This has seen it fund several projects across various sectors. Ahead of the meeting, African countries agreed to speak with one voice in pushing for more...

East Africa: New Call for EAC to Use Kiswahili

Arusha — A renewed call has been made to use Kiswahili for regional integration in East Africa. Members of the East African Legislative Assembly (Eala) acknowledged on Wednesday that with growing interest, the language has a big role in uniting people in the region. "Besides promoting unity among the EAC populace, Kiswahili is a critical medium of communication that will facilitate trade in the region," said Patricia Hajabakiga a legislator from Rwanda. She made the remarks during a debate of the Report on Sensitisation exercise which is underway in all the five East African Community (EAC) member countries. Her remarks were supported by Mr Mike Sebalu from Uganda, who rooted for Kiswahili as the key language that bonds and enables the citizens of the region to communicate effectively and efficiently. The report presented by Ms Hajabakiga, Chair of Eala Rwanda Chapter, is a culmination of outreach and sensitisation activities carried out in the partner states by the various country Chapters of the regional Assembly in June this year. The activities held between June 9, and 28, 2016, were anchored under the theme: EAC Youth Agenda: Accessing the Gains. Source: All Africa

Tanzania-china enterprises unlock huge agriculture potentials

TANZANIA could capitalise on food crisis striking most African countries, an initiative that would boost its foreign exchange earnings. The abundant agriculture land resources give the country enormous development potentials that through use of modern technologies could transform farming activities and lead to improved living standards. The Chinese Ambassador to Tanzania, Mr Lv Youqing, said in Dar es Salaam last week that almost half of African countries face the challenge of food crisis, thus giving Tanzania huge potential to capitalise through export of grains. “Tanzania is currently implementing the second five-year plan to accelerate the industrialisation progress which in return boots development of agriculture and the completion of infrastructure,” he said. Local investors, their Chinese counterparts and others from the globe should seize the immense opportunities in the agricultural sector. Sanson is the famous enterprise both in China and the world that has seen this huge opportunity in the agriculture sector and decided to develop the market in Tanzania, thus providing an opportunity for the development of local enterprises. To capitalise on the immense opportunities in the agriculture and infrastructure projects, Sanson heavy equipment Tanzania has established an enterprise in the country to seize the opportunity. Sanson has invested in the new facility to strengthen its capability to serve its customers efficiently. In terms of logistics, the sales and services center is ideally located near the port of Dar es Salaam and the Julius Nyerere International Airport (JNIA), which are in close proximity to the new facility and which allows...

[EDITORIAL] Kiswahili is the key to regional integration

The East African Legislative Assembly has approved plans to make Kiswahili its second official language. Previously, English was the language of choice which was not practical for countries such as Burundi that relies heavily on French. Member states that could be said to have Kiswahili deeply entrenched and widely used in everyday lives are Tanzania and Kenya. In other countries, it is only used sparingly by some communities. Kiswahili has been an official language of the East African Community (EAC) but hardly used in official communication. Is it time it began making inroads in the community, Beginning this academic year, Kiswahili will be one of the examinable subjects in school, but how prepared are the schools? Do we have enough teachers like our brothers and sisters in the east? Before the First World War, Rwanda, together with Tanzania and Burundi were part of German East Africa. The Language of communication was Kiswahili and its vestiges are still present in certain communities with large Muslim presence. So can “pure” Swahili be revived to do away with the corrupted version spoken here as well as eastern DRC and Burundi? In a region that has hundreds of languages, having Kiswahili as the common denominator would enhance unity in diversity, as is the case in Tanzania today. So, authorities should put more effort to make sure the language takes root as it is the key that opens the door to east African integration. Source: The New Times

Rwandan legislator keen to brand EAC green and clean

MP Patricia Hajabakiga, a Rwandan member of the East African Legislative Assembly (EALA) has introduced a bill that will control the use, sale, manufacture and importation of polythene materials in the region. Hajabakiga who is the chairperson of EALA Rwanda Chapter said the rationale of the bill is “the protection of the environment” and to harmonize the practice in all five countries. “I moved a motion to seek leave from the Assembly to introduce the Bill seeking to regulate the use of Plastic materials in the EAC. Countries like Rwanda are advanced, Uganda has started implementation, Burundi already has a policy while Tanzania has announced that effective this year they will stop using them,” she told Sunday Times. “It is also important to note that the EAC Treaty in its article 112 provides that Partner States agree to cooperate and promote the biodegradable packaging material in order to arrest the degradation of our environment.” The Bill for an Act entitled East African Community Polythene Materials Control Bill, 2016, once tabled in the near future, will have clauses clarifying what material is prohibited and exempted, as well as clarity of sanctions and penalties. The idea is that the Act will eventually apply to all types of polythene materials; with polythene, in this case, implying a synthetic industrial product with a low density composed of numerous chemical molecules of ethane with a chemical formula: CH2=CH2. As per the lawmakers current draft, the objectives of the Act will be to: establish a legal framework for...

EALA seeks boost to fish production

Regional countries need to promote aquaculture because East Africans are not getting enough fish and the amount obtained from available natural water bodies is not enough. MP Christophe Bazivamo (Rwanda), who chairs the committee on agriculture, tourism and natural resources at the East African Legislative Assembly (EALA), said this earlier in the week as he presented the status of fisheries in the region. Aquaculture, the farming of water organisms, involves cultivating freshwater and saltwater populations under controlled conditions, as opposed to commercial fishing, which is the harvesting of wild fish. “Fish production is not adequate from natural waters to cater for high population growth in East African Community partner states. It is for this reason that aquaculture should be promoted,” said Bazivamo. Findings during the committee’s previous oversight activities revealed that even though fisheries are a source of protein to about 150 million people in the Community, per capita fish consumption is less than 10 kg per annum compared to World Health Organisation recommended per capita consumption of 25 kg per annum. Why focus on fish? Nutritionists say fish provides a good source of high quality protein and contains many vitamins and minerals. Dr Robert Kayanda, a regional fisheries expert, earlier informed the committee that latest per capita consumption studies for respective partner states are: Burundi 3.6 kilogrammes, Kenya 3.45 kilogrammes, Rwanda 2.3 kilogrammes, Uganda 10 kilogrammes and Tanzania 8 kilogrammes. Bazivamo, however, noted that low per capita fish consumption in the Community depends on several factors, including low production...

EAC single currency: What the EU saga is teaching us

The establishment of East African Monetary Institute (EAMI) has reportedly been postponed. This implies that the EAC aspiration for a single currency may not be realised upon expiry of 10-year roadmap towards a single currency in the year 2024. The postponement has been occasioned by lack of resources. Establishment of the EAMI is precursor to the institution of the East African Central Bank, without which the East African Monetary Unit may not take flight. Tongues are incriminatingly already wagging: Is the EAC single currency really viable, even necessary, especially in light of the lessons we are gleaning from the imminent British exit (Brexit) from the European Union, or the near exit of Greece (Grexit) last year when it wallowed in debilitating debt and seeking bailout? First, Britain’s lesson with the Pound Sterling is that a country may be a member of a highly integrated regional community and yet not be part of a single currency and thrive. But the larger lesson lies in the complications Brexit is posing about what it will mean for labour and free movement guaranteed under the Schengen arrangement, notably what to do with EU citizens living and working in Britain and vice versa – if, and when, Brexit is legally operationalised. Indeed, Brexit has become something of a rallying cry for far-right political parties across Europe that is threatening to tear apart the EU project. Britain may have done well with the Pound Sterling. But the socio-economic and political costs of Brexit to the EU...