The East African Community needs a strong and uniform regulatory framework that promote financial inclusion to ensure sustainable growth in the region. Prof Lemma Senbet, from the African Economic Research Consortium says that a regionally integrated financial system that feeds into a global system will help strengthen the financial industry on the continent. Senbet also noted that a strong linkage between the financial industry and other sectors of the economy is crucial for Africa. The professor stated that It is important to have a globally competitive financial system and regulatory framework to ensure best practices. Source: TVC News

(L to R) Trade and Industry (Industry) Minister S Iswaran, Deputy Prime Minister Tharman Shanmugaratnam and Mozambique's Minister of Trade and Industry Ernesto Max Elias Tonela. (Photo: Calvin Hui) SINGAPORE: Trade relations between Singapore and Africa are set to deepen, with several agreements signed on Wednesday (Aug 24) at the fourth edition of the Africa Singapore Business Forum. These include the signing of the Avoidance of Double Taxation (DTA) with Ethiopia, a bilateral investment treaty (BIT) with Mozambique and an Air Services Agreement (ASA) with Nigeria. According to a joint press statement from the Ministry of Trade and Industry, Ministry of Transport and Ministry of Finance, Ethiopia-Singapore DTA clarifies the taxing rights between both countries. This covers all forms of income flows from cross-border business activities and minimises double taxation of such income, they said. Meanwhile, the Mozambique-Singapore BIT is a legally binding agreement on how the Mozambique government should treat investments from Singapore, and vice versa. With this agreement, Singapore companies operating in Mozambique will enjoy protection on top of what is already accorded under the country's domestic laws. The Nigeria-Singapore ASA provides a framework to enable the establishment of air linkages between both countries, as airlines from both countries can operate an agreed number of passenger and cargo flights between Nigeria and Singapore, and beyond both countries. They were signed by Trade and Industry (Industry) Minister S Iswaran and respective representatives from the countries - Ethiopia's Minister of Foreign Affairs, Tedros Adhanom, Mozambique's Minister of Trade and Industry...

Better roads promote trade and movement of people and goods, a reason why Africa must invest move in such facilities. (File photo) Africa has been touted as the new destination for investors. However, the continent still faces a myriad of challenges that hold back its potential, especially efforts aimed at improving business environment and alleviating poverty to ensure sustainable economic growth. That’s why Africa needs leaders who can tackle these challenges and translate them into opportunities to achieve the ‘Africa we want’ as per the theme of the recently-concluded 27th African Union summit in Kigali. Supportive policies and infrastructure that promote entrepreneurship and trade on the continent will play a critical role in helping the continent rise from the ‘ashes’ to achieve the African renaissance dreams proclaimed by the likes of former South African President Thabo Mbeki, experts say. According to Teddy Kaberuka, an economic analyst in Kigali, infrastructures, including transport, power and information and communication technologies (ICTs) facilities, are instrumental in supporting growth in the global economy. That’s the reason why African countries must prioritise infrastructure development to ensure sustainable economic growth on the continent. “The only way Africa can increase its production and strengthen its economy is by investing heavily in infrastructure development to support the production and ease access to markets and encourage intra-regional trade. Therefore, government must invest more in the energy, ICT and transport sectors because these are enablers of trade and development,” he said. “Without enough power, the continent’s production capacity will be affected,...

By Peterson Tumwebaze The East African Community (EAC) needs a strong and uniform regulatory framework that promote financial inclusion to ensure sustainable growth in the region, experts say. Prof Lemma Senbet, from the African Economic Research Consortium (AERC), said EAC should put in place clear systems that promotes financial inclusion to spur growth. He added that a regionally integrated financial system that also feeds into a global system will help strengthen the financial industry on the continent. He also noted that a strong linkage between the financial industry and other sectors of the economy is crucial for Africa. "It is important to have a globally competitive financial system and regulatory framework to ensure best practices," he added. He was speaking during a China-Africa Media Think Tank symposium in Mombasa, Kenya recently. Prof Humphrey Moshi, the Centre of Communication Skills at the University of Dar es Salaam, Tanzania, said there is need to create linkage between financial sector development and poverty alleviation, as well as employment creation. He said it is essential to develop the capacity of the financial sector to exploit its potential and contribute to the region's growth. "There is need to strengthen capacity of financial systems to perform multiple functions and not mere existence of the systems," he added. "Sub-Saharan African countries, including the EAC bloc, have undertaken a lot of economic and financial sector reforms over the last two decades, yet many still face a severe financial development gap compared to advanced and other developing economies," Prof...

Kenya's exports will be stung by EU import duties of up to 25 percent if talks are not concluded by 1 October. (Photo:Ninara) One of the main economic arguments used by Leave campaigners before the UK's referendum on EU membership in June was that the UK, freed from its EU shackles, would be able to cut its own bilateral trade deals entirely on its own terms, and much quicker than as part of the EU bloc. The UK will remain party to all EU trade agreements until it formally leaves the bloc, and cannot conduct any separate negotiations of its own. It hasn’t had to negotiate a trade deal for more than 40 years, which probably explained the Leavers’ optimism about how easy it would be. Trade negotiators are among the most world-weary of government officials. Not surprising really, when you spend years negotiating milk and cheese subsidies only to see a deal collapse when the politicians get involved. Two months after the referendum and the UK’s newly created international trade ministry is not launching any trade talks. Instead, it's embroiled in a turf war with the Foreign Office over who gets to handle economic diplomacy. Its officials don’t have their own building yet. But the UK is not the only one in limbo. October deadline A fortnight after the referendum, Tanzania and Uganda abandoned plans to sign a regional trade agreement between the East African Community (EAC) and the EU citing the political turmoil caused by the Brexit vote....

THE East African Community is reported to be in deep financial crisis as the Regional Parliament is resuming its session here this week to address the situation. The East African Legislative Assembly is embarking for its First Meeting of the Fifth Session of the Third Assembly which runs at the EALA chambers for twelve days, from this Monday, August 22, 2016 to next week’s Friday, September 2, 2016. EALA Spokesperson, Mr Bobi Odiko said here that the Assembly is to be presided over by the Speaker, Mr Daniel Kidega, with the top on the agenda during the two-week period being the debate on the Report of the Committee on Accounts on the EAC Audited Accounts for the Financial Year ended 30, June 2015. The report which examines and considers the EAC Audited accounts for the year ended 30, June 2015, arises from the audit of the EAC Organs and Institutions including 20 projects and Programmes and this in accordance with Article 134 of the Treaty for the Establishment of East African Community. “Upon completion of the audit, the EAC Council of Ministers tabled the Report of the Audit Commission to the House on 24, May 2016. The Audit Commission’s report which indicates that the overall budget performance stood at 65 per cent is set for debate at a time when the Community is facing a precarious funding situation,” said the EALA statement. The House is further expected to consider a Report of the Committee on Agriculture, Tourism and Natural Resources...

NAIROBI, Aug. 22 (Xinhua) -- Japan is expected to use the sixth Tokyo International Conference of Africa's Development slated for Nairobi, Kenya this week to boost trade relations between the nation and the continent at a time when it is trailing behind its Asian peers. According to data released Monday by the Kenya National Bureau of Statistics (KNBS), while Japan's monthly exports to Kenya average 67.4 million U.S. dollars, India ships into the East African nation goods worth 193 million dollars and China's exports stand at 233 million dollars. In the January-May period, according to the KNBS data, Japan's exports to Kenya stood at 339 million dollars. During the same period, India was recorded at 965 million dollars while China at 1.2 billion dollars, according to the government agency. Japan's top exports to Kenya consist of iron and steel products and motor vehicles. "This conference will bring both immediate and long-term benefits to both Kenya and Japan. We expect to strengthen existing bilateral relations with Japan," said Devolution Cabinet Secretary Mwangi Kiunjuri. The East African nation is also expected to push for direct flights between Tokyo and Nairobi to boost its exports to the Asian nation. Source: Xinhuanet

The war in South Sudan has had a negative impact on trade in commodities such as foodstuffs. By Allan Olingo South Sudan is pleading with Kenya and Uganda for economic support to avert a humanitarian crisis after a fresh conflict brought the country to its knees. Mid last week, a delegation of Transitional Government of South Sudan officials led by First Vice-President Taban Deng Gai was in Kenya on a mission seeking a bailout. The EastAfrican has learnt that Juba will also be reaching out to Uganda later this month to craft a bailout package that will see Kampala pay its traders the $35.2 million Juba owes them in a bid to have them resume supplies to the country. "The vice president will go to Kampala to request the Ugandan government to pay traders who supplied cereals to Juba but haven't been paid. The money will then be converted into a loan, for which Juba and Kampala officials will work out a repayment plan," a diplomatic source with the knowledge of the matter said. The delegation to Nairobi, which included four ministers, met with Kenyan President Uhuru Kenyatta, Cabinet Secretary for Foreign Affairs Amina Mohamed and a number of Kenya government officials. A source privy to the discussions told The EastAfrican that Mr Gai informed President Kenyatta that the country's economy was in a perilous state and needed urgent help. Mr Gai implored the Kenya government to give his country a soft loan to help it deal with its current...

IN SUMMARY A new report by Uganda’s Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI)—a precondition for having a single currency by 2024 — from 2015 to a yet to be announced date. The East African Community’s dream of a monetary union and a single currency may not be realised by the 2024 deadline. A new report by Uganda’s Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI)—a precondition for having a single currency by 2024 — from 2015 to a yet to be announced date. Now, without the money for the EAMI, which will evolve into the East African Central Bank, the region is taking the longer route — that of the East African Legislative Assembly. According to the East African Monetary Union roadmap, the EAMI was to be established by partner states — and not EALA. Draft Bills EAC spokesperson Richard Othieno Owora said the bloc is trying to establish EAMI through an EALA Act even though this will delay other institutions needed for EAMU to begin working. These include the East African Statistics Bureau, the East African Surveillance, Compliance and Enforcement Commission, and the East African Financial Services Commission. “So far, the draft Bills for the establishment of the EAMI, the EASB, and EASCEC have been developed and negotiated by partner states,” Mr Owora said. He...

In an ambition to nourish an effective nationwide integration within the East-African bloc, the East-African Community - Youth Ambassadors Platform-Burundi Chapter, collaboratively with the Ministry at the Office of the President in Charge of East African Community Affairs, organizes a national debate on EAC integration under the theme: "YOUTH EMBRACING THE EAC INTEGRATION". The East African Community (EAC) is the regional intergovernmental organization of the Republics of Burundi, Kenya, Uganda, Rwanda, the United Republic of Tanzania and South Soudan, with its Headquarters in Arusha, Tanzania. South Soudan joined the community early in 2016 following Burundi and Rwanda which joined EAC on 1st July 2007. The youth of East Africa are important stakeholders in the EAC processes and form substantial part of the population. Article 120 (c) of the EAC Treaty provides for adoption of a common approach for involvement of the youth in the integration process through education, training and mainstreaming youth issues into EAC policies, programs and projects as one of the strategic interventions towards the realization of a fully integrated Community. The debate is to take place at National Institute of Public Health, commonly known as INSP, respectively on august, 20th 2016 and august, 27th with a final debate to be held on September, 10th. The debate will engage young people from partaking universities (University of Burundi, Ecole Normale Supérieure, INSP, Université Lumière, Université des Grands Lacs and ISMR) in a battle of opinions with the focus on enhancing the "East-Africanity" awareness among the youth for a functional...