“Brexit means Brexit”, according to Theresa May, the UK’s newly appointed prime minister. Though what this means for trade still remains speculative, experts watching the African oil and gas industry believe that Brexit will not significantly affect the sector. Yann Alix, a partner in leading global law firm Ashurst, who has a focus on deals and projects in the African oil, gas and mining sector, said that while currencies and stocks tumbled in a number of African jurisdictions immediately after the referendum result, “Brexit is unlikely to have a significant impact on the African oil and gas industry”. Stuart Carter, partner and head of oil and gas at European law firm Fieldfisher, agrees, but argues that in the longer term some effects may be felt. “The UK could be subject to some tariffs on oil and gas from the EU, so may be more likely to import petroleum from Africa”. However, Carter stresses that this is still highly unlikely. Speculation over the prospect of a second Scottish independence referendum brought about by the Brexit result might also prove to have an effect on the African oil and gas industry. Carter believes that projects could be delayed in the Scottish area of UKCS (United Kingdom Continental Shelf) and Africa could “potentially be one beneficiary” from a slowdown in the UKCS as teams become available for other projects”. Leaving the European Union has implications of fewer trade restrictions for UK business from the EU, and this could make working with African trading...

East African Community states need to develop rural infrastructure (especially electricity and ICT) to enhance mobile phone penetration and facilitate its use. The call was made by experts in reaction to the 2016 Brookings Financial and Digital Inclusion Project Report, which, despite showing substantial progress toward advancing financial inclusion in regional countries, indicates there is room for improvement. The report, released last week, evaluates commitment to and progress toward financial inclusion across 26 countries. It says Kenya retained its position as the highest-ranked country in the study by a five percentage point margin. Of four East African Community (EAC) countries in the study, Kenya scored an overall 84 per cent followed by Uganda and Rwanda at 78 per cent and 76 per cent, respectively, with Tanzania trailing at 68 per cent. Kenya, South Africa, Brazil, and Uganda held their places in the top five-ranked countries between 2015 and 2016. Country scores are hinged on four dimensions: country commitment, mobile capacity, regulatory environment, and adoption. The lowest income economy among the countries ranked at the top of the FDIP scorecard was Uganda driven in part by its strong levels of mobile money adoption. Rwanda, which ranked among the top 10 countries overall, is the other low-income country that demonstrated “a particularly strong performance” on the FDIP scorecard “Rwanda provides an effective example of how country commitment to advancing financial inclusion and the promotion of digital financial services can lead to a more inclusive financial ecosystem,” the report says. Rwanda jointly topped...

NAKURU, KENYA: The East African Grain Council (EAGC) has asked leaders in East African Community to incorporate private sector in promoting inter-regional trade. sector in EAC integration By Mercy Kahenda Updated Mon, August 15th 2016 at 12:13 GMT +3 SHARE THIS ARTICLE NAKURU, KENYA: The East African Grain Council (EAGC) has asked leaders in East African Community to incorporate private sector in promoting inter-regional trade. EAGC executive director Gerald Masila said policy to include private sector should be in line with EAC integration policy. Masila said there is huge investment gap in EAC member countries that should support cereal and grain value chain addition to boost food security and economy of farmers. "EAGC is working close with governments to ensure there are more private sectors investing in farming to boost production and inter-regional trade," said Masila. Masila said EAGC is engaging the EAC governments not to put barriers to regional trade for instance restriction of trading licenses to farmers that lock potentials. He said limiting trade barriers will see farmers sell their produce freely in EAC a move that will boost food security and economy among the states. Source: Standard Media

The East African Community regional integration process has seen the region register improvement in logistics performance which had stagnated in previous years, a World Bank report has said. The bi-annual report, ‘Connecting to Compete 2016: Trade Logistics in the Global Economy’, ranked 160 countries on their trade logistics performance as well as the region, identifying the challenges and opportunities. The report noted that the move by the East African Community nations to integrate into one bloc had elevated the region’s logistics performance, consequently making it more attractive for investments and reducing the cost of doing business. Among the most notable changes observed by the survey was the elimination of multiple barriers to trade and transport, such as cumbersome procedures. “The Northern Corridor was once known for multiple barriers to trade and transport, including lengthy dwell times at Mombasa port and cumbersome clearance procedures along the corridor. In 2012–13, the corridor countries started a series of reforms that significantly improved the logistics environment and drove down logistics costs,” the report’s authors observed. Integration, the report says, saw the establishment of a single customs territory, thereby tackling unbearable clearance procedures. “One of the reforms was to introduce Single Customs Territory clearance procedures within the East African Community, including Burundi and Tanzania. This means final customs clearances for free circulation can be made already at the port of entry in Mombasa. The system has significantly reduced administrative burden and shortened the time required for customs formalities,” the authors said. With the single customs...

IN SUMMARY The Burundian Coalition for the International Criminal Court, a lobby of 11 civil society organisations, is calling for an independent secretariat for the Benjamin Mkapa-led mediation team, saying East African Community Secretary General Liberat Mfumukeko is not neutral in the Burundian dialogue talks. “We have written to the EAC Heads of State Summit and to Mr Mkapa himself. Mr Mfumukeko is just following the agenda of the Burundian government; this is not helping the process,” he said. The UN Committee Against Torture in a recent meeting in Switzerland, voiced concern about reported reprisals against Burundians and civil society leaders. The Burundian Coalition for the International Criminal Court, a lobby of 11 civil society organisations, is calling for an independent secretariat for the Benjamin Mkapa-led mediation team, saying East African Community Secretary General Liberat Mfumukeko is not neutral in the Burundian dialogue talks. They claim that Mr Mfumukeko has sidelined key stakeholders who Bujumbura is uncomfortable with. “Mr Mkapa should have his own secretariat in this mediation. Mr Mfumukeko is from Burundi and continues to sideline the parties at the centre of the conflict, while inviting others,” said Lambert Nigarura, the chairperson and legal representative of the lobby group. “We have written to the EAC Heads of State Summit and to Mr Mkapa himself. Mr Mfumukeko is just following the agenda of the Burundian government; this is not helping the process,” he said. The government of Burundi issued arrest warrants for some of the parties to the talks whom...

AMMAN — The Trade Ministry is working to find new markets to promote Jordanian products in East African and Central Asian countries, Deputy Prime Minister for Economic Affairs Jawad Anani said on Sunday. Chairing a meeting at the ministry, Anani, who is minister of industry, trade and supply, said that finding new markets would help increase the volume of national exports and make up for the losses caused by the closure of the Iraqi and Syrian markets. The ministry plans to increase exports of various goods, including pharmaceuticals, to Palestine by $1 billion, he said. An economic delegation is scheduled to visit Kazakhstan in September to discuss cooperation, he said, adding that the ministry hopes to open the Kazakh market to Jordanian products. The meeting, held to discuss challenges to the pharmaceutical industry, was attended by Health Minister Mahmoud Sheyyab and Amman Chamber of Industry President Ziad Homsi. Anani highlighted the importance of boosting the pharmaceutical sector through scientific research and the development of new products. A comprehensive policy on the challenges facing the sector will be developed in cooperation with the public and private sectors, in line with the Jordanian Association of Pharmaceutical Manufacturers’ recommendations, the minister added. Anani and Sheyyab also highlighted outcomes of talks with an Egyptian ministerial delegation that visited Jordan last week to register Jordanian medicines in Egypt. They said an agreement was reached on joint rules to register medicine, adding that other issues were resolved. Representatives of the association briefed the ministers on challenges...

EAST Africa enjoys strong economic growth for over a decade now but the rosy picture of the economy is soiled by deepening inequality which begs a question on who in particular benefit from the growth. This is one of the key observation of the State of East Africa Report 2016 that was launched in Dar es Salaam last Friday by Society of International Development and TradeMark Africa. The region has recorded robust growth of the economy with an average of more than six per cent annual growth-rate for over a decade with Ethiopia, Kenya, Tanzania and Uganda all forecast show rapid economic growth over the next decade on the back of tourism, agriculture, services and manufacturing industries and improving their transport links and energy supply. With Tanzania, Rwanda and Kenya economies expected to expand at least six per cent this year, according to the International Monetary Fund (IMF), East Africa is considered as a bright spot of the sub-Saharan Africa whose growth is expected to slow again in 2016 to 2.5 per cent, down from 3.0 per cent in 2015 due to low commodity prices, tightening global financial conditions and drought in parts of the region. However, according to the State of East Africa Report 2016, the growth has been accompanied by growth in inequality in virtually all countries. The report observes that despite the impressive growth, the economic boom has not generated the jobs or prosperity for all as it was expected. The levels of poverty, hunger and malnutrition...

August 9, 2016 The East African Community member countries’ total debt is unsustainable and could lead to a crisis, a new economic report warns. The report by the Society for International Development (Sid) titled “The State of East Africa 2016: Consolidating Misery? The Political Economy of Inequalities”, notes that there is growing concern among economists that alarming debt Source: Nile Times

Photo: The Observer A Few Of East African leaders, Uganda President Museveni (L) and Rwanda President Paul Kagame (file Picture). Dar es Salaam — East African countries will have to rethink and renegotiate social contracts and independence for Voters to profit from regional financial increase, a report on the state of East Africa 2016 launched the day past says. The document suggests that the Area has massive attainable that must be exploited, however Exchange limitations, poor infrastructure, insecurity, unfair judicial programs, low wages and susceptible rules are nonetheless an important stumblimg block. The East African Neighborhood (EAC) member states have, Subsequently, been entreated to surely reform the institutions through system of rules, insurance policies and rules that would make them more equitable, predictable and inclusive. The Sixth file with the aid of the Society for World Development (SID) in collaboration with Change Mark East Africa has Also steered the international locations to reform constructions within the corridors of energy, and in their economies. On The launch of the record, SID deputy managing director Arthur Muliro advised newshounds that institutional arrangements at national levels are skewed in favour of the rich and strong individuals, suggesting that consolidating inequalities within member states will negatively influence the longer term technology. “There’s A strong possibility that future EAC generations will reside a worse life as in comparison with the current generation,” he mentioned. A “catastrophic convergence” of politics, economic system and Environment usually are not pleasant to the Area, he stated. EAC member states...

The 6th report by the Society for International Development, released in collaboration with Trade Mark East Africa, analyses several sectors in three pillars: the economic pillar comprising agriculture, wages and wage policy; the social pillar consisting of education, health, housing and shelter sectors; and the political pillar that includes justice and security issues. It was launched yesterday. In Summary New findings on the state of East Africa are pretty gloomy - though the experts themselves see some reasons for optimism if major changes are made Dar es Salaam. East African countries should rethink and renegotiate social contracts and independence for citizens to benefit from regional economic growth, a report on the state of East Africa 2016 launched yesterday says. The report suggests that the region has massive potential that needs to be exploited, but trade barriers, poor infrastructure, insecurity, unfair judicial systems, low wages and weak regulations are still a major stumblimg block. The East African Community (EAC) member states have, therefore, been urged to genuinely reform the institutions through formulation of laws, policies and regulations that would make them more equitable, predictable and inclusive. The 6th report by the Society for International Development (SID) in collaboration with Trade Mark East Africa has also advised the countries to reform structures in the corridors of power, and in their economies. At the launch of the report, SID deputy managing director Arthur Muliro told reporters that institutional arrangements at national levels are skewed in favour of the rich and powerful people, suggesting...