Dealers in second-hand clothes and shoes now have a reprieve after it emerged that member states of the East African Community (EAC) may not enforce a ban — imposed early last year — on these items for the next three years. Ronah Serwadda, the acting director at Uganda’s Ministry of East African Affairs said that the presidents agreed that a three-year grace period is necessary to conduct a study to find out whether the region has the capacity to produce its own garments once the ban on secondhand clothes and shoes becomes operational. “Bringing used clothes and shoes into the region is not helping us to develop our industries,” she toldThe EastAfrican. “Studies will help us find out whether we have the skills, cotton and yarn to produce enough to replace the products that will be banned.” The presidential directive to ban the importation of used clothes is aimed at boosting the domestic textile industry. Speaking at the launch of the United Nations Economic Commission for Africa (Uneca) report dubbed Transformative Industrial Policy for Africa in Kampala last week, Ms Serwadda said that the three-year grace period would also allow the region to take stock of which countries have the capacity to produce which products. While experts at the meeting termed the EAC’s focus on its textiles sector as a step in the right direction, they said that there is a need for the region to do more than just take stock of its production capacities. Rogers Mukwaya, an economic...

In the days after Brexit, markets plunged, the pound sterling went into free fall, a prime minister resigned and the future not only of the UK, but also the European Union seemed uncertain. Beyond the reasons that divided people over this vote and the economic and political ramifications, is a growing frustration with inter-governmental integration models. Why then – with the woes of the European Union so visible – is Africa forging ahead with an ambitious plan to accelerate the free movement of Africans and integrate national economies beyond border communities and physical proximity? There are three reasons for these interesting points of divergence: The first is that the context in Europe and Africa is dramatically different. The European Union is the most integrated region globally. For at least 50 years, Europeans have enjoyed the benefits of integration. A large part of the EU population has never known what it is like to be asked for visas while travelling in the region, or seek work permits to work elsewhere in Europe. On the contrary, Africa is the most fragmented continent worldwide, and its people suffer the cost of non-integration on a daily basis. This fragmentation was imposed on Africa, and we are now working to reversethisprocess, without violating the principle of sovereignty. The second reason is the difference in the models of governance between the European Union and the African Union. The European Commission has the power to make regulatory decisions on behalf of all EU members. This very centralised...

In the days after Brexit, markets plunged, the pound went into free fall, a prime minister resigned and the future of the UK and the European Union seemed uncertain. Beyond the reasons that divided people for this vote, and beyond its economic and political ramifications, it’s clear that there is a growing frustration with inter-governmental integration models. Why then – with the woes of the European Union so visible – is Africa forging ahead with an ambitious plan to accelerate the free movement of Africans and integrate national economies beyond border communities and physical proximity? There are three reasons why Africans want greater integration between their countries. Firstly, the contexts between Europe and Africa are dramatically different. The EU is the most integrated region globally, and we’ve watched over the last 50 years as Europeans have enjoyed the benefits of integration. A large population of the EU has never known what it is to have to demand visas while travelling in the region, or seek work permits to work elsewhere in Europe than their home countries. Meanwhile, Africans have a completely different experience to this. Africa is the most fragmented continent worldwide, and its people suffer the cost of non-integration on a daily basis. This fragmentation was imposed on Africa. But now we are working to reverse this process, without violating the principle of sovereignty. Having said that, this year’s 27th African Union Summit took place in Rwanda only three weeks after the Brexit vote. Should pro-African leaders be worried...

Members of the East African Community are split down the middle again after Uganda joined Tanzania in pulling out of signing a trade pact that is key to continued access to the European Union market without paying duty. Although Kenya, Rwanda and Burundi are ready to sign the Economic Partnership Agreement (EPA) with the EU, World Trade Organisation rules do not allow countries aligned to a trade bloc to sign up individually. Uganda indicated last week that it was not going to sign until the bloc had reached a common position on all issues. “Everyone, including the EU is now agreed that we don’t sign,”  said Julius Onen, the Permanent Secretary in Uganda’s Ministry of Trade. “We must have a common position on all the issues. As EAC, we maintain solidarity and want to move together as a common market. It’s now the agreed position, even for the EU, that we have to sign together,” he added. A week ago, Aziz Mlima, Permanent Secretary in Tanzania’s Ministry of East Africa, said the country would not sign the agreement following the vote by Britons to leave the EU. “Our experts have analysed the pact and established that it will not be to our local industry’s benefit. Signing this pact at the moment would expose young EAC countries to harsh economic conditions in post-Brexit Europe,” Dr Mlima said. On Thursday, Tanzania’s Minister for Trade, Industries and Investment Charles Mwijage said Britain was Tanzania’s key trade partner in Europe. “Internationally, we trade with Britain, China, India and South Africa. When...

The African Union Passport that is expected to be officially launched during the 27th African Union Summit is considered a prodigious triumph for the continent and it will ease free movement of people, spur economic growth and development as well as promote Intra-African trade. Regional trade integration has long been a strategic objective for Africa yet, despite some success in eliminating non-tariff barriers within regional communities, the African market remains highly fragmented. A range of non-tariff and regulatory barriers still raise transaction costs and limit the movement of goods, services, people and capital across borders throughout Africa. With the promotion of Intra-African trade, it will boost and ease doing business within African countries which later will reduce the trade deficit among African nations. According to the Rwanda’s Foreign Affairs Minister Louise Mushikiwabo, the issuance of African passport is among the African strategic initiative intended to come as a possible rescue to disband all the restrictions to move which will eventually create a conducive environment for Africans to trade with each other. “Rwanda is ready for the AU Passport issuance. Other countries will also be working towards implementation of this decision. The free movement of people in Africa will spur our economic growth,” she said during a press conference today 14 July 2016 organised in the sidelines of the African Union Summit currently holding at the Kigali Convention Center (KCC), in Rwanda. During the Ordinary Session of the Assembly of the African Union that convenes on Sunday this week, African Heads...

Members of the East African Community are split down the middle again after Uganda joined Tanzania in pulling out of signing a trade pact that is key to continued access to the European Union market without paying duty. Although Kenya, Rwanda and Burundi are ready to sign the Economic Partnership Agreement (EPA) with the EU, World Trade Organisation rules do not allow countries aligned to a trade bloc to sign up individually. Uganda indicated last week that it was not going to sign until the bloc had reached a common position on all issues. “Everyone, including the EU is now agreed that we don’t sign,”  said Julius Onen, the Permanent Secretary in Uganda’s Ministry of Trade. “We must have a common position on all the issues. As EAC, we maintain solidarity and want to move together as a common market. It’s now the agreed position, even for the EU, that we have to sign together,” he added. A week ago, Aziz Mlima, Permanent Secretary in Tanzania’s Ministry of East Africa, said the country would not sign the agreement following the vote by Britons to leave the EU. “Our experts have analysed the pact and established that it will not be to our local industry’s benefit. Signing this pact at the moment would expose young EAC countries to harsh economic conditions in post-Brexit Europe,” Dr Mlima said. On Thursday, Tanzania’s Minister for Trade, Industries and Investment Charles Mwijage said Britain was Tanzania’s key trade partner in Europe. “Internationally, we trade with Britain, China, India and South Africa. When...

Twenty-six African countries have failed to agree on how traders would access a market of more than 600 million people through the proposed Tripartite Free Trade Area (TFTA), blurring expansion plans by companies. The EAC, Common Market for Eastern and Southern Africa (Comesa) and Southern African Development Community (SADC) have differed on the kind of preferential treatment sensitive goods and services from one bloc would be offered in another. The 12-month period for negotiations expired on June 30. "We were to complete this work by last month (June) but we did not reach an agreement. There are still challenges," said Mark Ogot, a senior assistant director in-charge of economic affairs at Kenya's Ministry of East African Affairs. It is understood that though the blocs have reached a common position on the proportion of tariff lines to be liberalised they have broken ranks over a common tariff to be applied on sensitive products such as maize, wheat, sugar, textile and cement which are considered essential in spurring the growth of domestic industries. The EAC countries have agreed to liberalise 37 per cent of the tariff lines estimated at 5,600 items. This would allow about 2,000 items excluding sensitive items to enter member countries at zero duty. The other goods would be charged duty at the rate of 10 per cent for intermediate goods and 25 per cent for finished goods. Southern African Customs Union - the SADC Customs union - has agreed to remove duty on 60 per cent of its...

Neighbouring east African countries, Tanzania and Uganda have announced that a crude oil pipeline is on the cards with construction planned to commence early next year. According to local media, Uganda's energy minister, Irene Muloni, confirmed the development of a crude oil pipeline following discussions the ministry held on Tuesday with a visiting Tanzanian delegation. Muloni said the two countries had agreed to fast-track the project, which will cover 1,443 kilometres. It is reported that oil explorations have uncovered more than 6.5 billion barrels of crude oil reserves from about 40% of the Albertine basin in western Uganda. Muloni said: “Every activity in respect to the project will be done in a fast tracking mode. We have agreed to meet in Tanga (Tanzania) in October this year to launch the front-end-engineering-design for the project.” The minister revealed that feasibility studies estimate the project to cost $3.55 billion. East African crude oil pipeline According to the media, Muloni said a pipeline company will be set up and Uganda, Tanzania and other interested east African states will have shares in it. “The pipeline is very attractive and viable. Securing financing will be explored in much detail. Contacts are being made to potential funders,” she stated. Both the countries’ leaders are reported to have agreed to name the pipeline project reflecting the East African Community and the second ministerial meeting endorsed, ‘East African Crude Oil Pipeline'. A joint media release, signed by Muloni and her Tanzanian counterpart, Sospeter Muhongo, read: “The ministerial meeting...

Radosław Domagalski will lead a delegation of entrepreneurs from an array of sectors, ranging from renewable energy, agriculture and trade. The envoys will also include representatives of the Foreign Affairs and Finance Ministries, alongside the Polish Information and Foreign Investment Agency (PAIiIZ), the National Economy Bank (BGK) and the Polish-Tanzanian parliamentary group, Domagalski announced on Wednesday. A series of bilateral talks with representatives of the Tanzanian and Kenyan finance, industry, trade and agriculture ministries are on the agenda. The key topic of the talks are aid credits the Polish government has granted to Kenya and Tanzania. Poland hopes that Polish companies will be able to tap into the resources lent to the two countries, reaching up to USD 110 mln for Kenya and USD 100 for Tanzania. “I hope that with this development aid we will see new Polish investment projects on the African continent,” Domagalski told news agency PAP. The trip coincides with the 14th UN Conference on Trade and Development (UNCTAD), to be held in Nairobi next week. The visit begins on Monday, 18 July, and will last until Friday, 22 July. Trade between Kenya and Poland reached USD 109.8 million in 2015. In the case of Tanzania, last year’s trade figures amounted to USD 69.5 million. Source: Radio Poland

PREVAILING infrastructure and energy gaps across the continent can be bridged fast if African countries pursued joint projects, the African Union Commissioner for Infrastructure and Energy, Dr Elham Ibrahim, has said. Ibrahim made the remarks while speaking to The New Times on the sidelines of the ongoing 27th African Union summit in Kigali. She noted that with most of the African countries being emerging economies, teaming up for major projects would ease the burden on individual countries as well as improve their chances of securing funding. “This is what can enable us undertake huge projects, as well as alternative projects. It is important to work together since resources in some countries are not adequate enough for large projects. That is why we are devising a strategy of joint infrastructure projects,” Ibrahim said. The continent continues to suffer from inadequate infrastructure such as road network, railway access and pipeline which experts say has slowed integration and limited intra-Africa trade. Ibrahim said regions that had jointly implemented infrastructure projects such as east Africa had experienced rapid growth in recent years and could easily mobilise funding. “If you look at countries in the East African region, they have improved very fast in recent years in terms of infrastructure due to cooperation. This is true in the areas of roads network, railway and pipeline. Cooperation speeds things up and makes it possible to get funding,” she said. By teaming up, the commissioner added, financing, a factor considered “elusive” by most governments implementing infrastructure projects, would...