News Tag: Uganda

How the cost of communication affects growth in East Africa

0.0456 of what? 0.0456 or approximately 4.6 USD cents ($0.0456) is the average cost of one minute of talk time on a mobile phone in the East Africa Community (EAC). So which countries in EAC have the highest and and which the lowest rates? Despite several advertisements and promotions seen throughout the region, most major providers in EAC countries are offering very similar rates.  At the time of writing we found the highest rates in Burundi ($0.06 USD) and some of the lowest rates with Tigo in Rwanda ($0.01 USD) and Airtel in Uganda ($0.02 USD).Other providers were much closer to the average cost per minute.  As telecom costs in the EAC are one of the most dynamic pricing markets in the world, the amounts reflected here are highly subject to change.  How does this compare to other regions of the world? Calling costs in the EAC are quite reasonable compared to other parts of the world, though rates can vary dramatically. Countries with challenging environments such as the Pacific island nation of Tuvalu with heavy satellite infrastructure needed to connect people disbursed across islands see costs upwards of $0.60 US per minute.  In more developed European countries telecom and taxation policies drive cost variations from $0.02 USD in Denmark or Norway up to $0.53 USD per minute in the Netherlands.  Strong consumer-friendly telecom policies and technological prioritization has brought the cost down to below $0.01 USD per minute in places like Hong Kong and Singapore, the world’s cheapest place...

East Africa: EABC in Fresh Push for EPA Deal

The East African Business Council (EABC) has underscored the importance for the East African Community (EAC) partner states to fast track the signing of a new trade regime with the European Union (EU). Though EAC partner states have proposed the Economic Partnership Agreement (EPA) signing ceremony to be in the first week of the August, this year, the EABC recommends18th July, 2016 to take advantage of the EU Commissioner for Trade who will be in Nairobi attending UNCTAD XIV Conference. The EABC expectations are that ministers for trade from all EAC member states will also attend the UNCTAD Conference and therefore could be able to sign the EAC-EU-EPA on the same date in order to project the region as a functional Customs Union. The EABC Chief Executive Officer, Ms Lilian Awinja, says further delay in signing the pact will hamper exports from EAC partner states to the EU market. "Failure to meet EU deadline on ratification will force EAC exports to EU attract import duty especially for Kenya which is considered as developing country while other four countries Tanzania, Uganda, Rwanda and Burundi which are considered Least Developed Countries (LDCs) may force to opt for Everything But Army (EBA) trade arrangement which has more complicated rules of origin," Ms Awinja explains. According to EABC boss, the July 18th signing will give EAC Partner States ample time to ratify the Agreement, before 1st October, 2016 the deadline set unilaterally by EU. To make the matter worse, come 1st January 2017 Kenya...

Intra-African trade costs highest of all developing regions

A study shows that agricultural fertiliser can land at the Kenyan Port of Mombasa at $350/t, and then sell for 300% to 400% more 1 000 km inland, says Common Market for Eastern and Southern Africa (Comesa) Alliance for Commodity Trade in Eastern and Southern Africa CEO Argent Chuula. “The same is true for Tanzania. The fertiliser will arrive in Dar es Salaam at $350/t, then sell in southern Tanzania for $800/t. “Around 30% of these cost increases are taxes, but the bulk comes from transport costs.” Chuula adds that African farmers typically receive only 20% to 25% of the final market price of their goods, compared with the 70% to 85% Asian farmers receive. “Most of the difference comes from transport costs.” Yet another figure quoted by Chuula is that transport charges in Ghana and Zimbabwe are 2 to 2.5 times more expensive than in Pakistan or Sri Lanka. He notes that the transport costs added to the price of goods in Africa, lead to an increase in costs to the consumer, who is forced to act “as the price taker”. Chuula says infrastructure deficiencies are to a large degree to blame for the high transport costs on the continent. “The current infrastructure situation [in Africa] is inadequate to deal with cargo and people movement.” INCREASED AFRICAN TRADE Infrastructure deficiencies have also seen steep costs in cross-border trade. “Intra-African trade costs are 50% higher than costs in East Asia. Africa has the highest intra-regional costs of any developing region,”...

Uganda, Others Lead Talks Of Economic Unsurity In Brexit Aftermath

Britain exiting the European Union is being viewed as a wake-up call for the East African Community (EAC) member states to critically look at the integration process, a top government official said on Wednesday. Henry Okello Oryem, Uganda’s minister of state for international affairs stated that the happenings in Britain showed that the ordinary British people did not see the value of the EU to their ordinary lives, a similar incident that can occur to the EAC. The EAC, a regional trading bloc that brings together Kenya, Tanzania, Uganda, Rwanda, Burundi and South Sudan espouses the EU integration model in its efforts to fast track economic development. The bloc already has a Customs Union, Common Market and is now working on a Monetary Union. Its ultimate goal is to have a political federation, a similar quest by the EU. Oryem said the integration process should not be left to the elites but also include the ordinary citizens of each member country who should play a critical role. He argued that until the ordinary citizens appreciate the value of the integration process, it would be a fallacy to integrate the bloc. “They really have to understand it, believe in it and embrace it in order for us to move forward because if they don’t, then the consequences would be similar to what is in Britain if a referendum is called,” Oryem said. He added, “With in the EAC, we need to go back on the ground and on the drawing board...

Africa Watch: Brexit lesson to East African bloc to reassess integration process

KAMPALA, June 30 (Xinhua) -- Britain exiting the European Union (EU) is a wake-up call for the East African Community (EAC) member states to critically look at the integration process, a top government official said on Wednesday. Henry Okello Oryem, Uganda's minister of state for international affairs, told Xinhua in an interview that the happenings in Britain showed that the ordinary British people did not see the value of the EU to their ordinary lives, a similar incident that can occur to the EAC. The EAC, a regional trading bloc that brings together Kenya, Tanzania, Uganda, Rwanda, Burundi and South Sudan, espouses the EU integration model in its efforts to fast track economic development. The bloc already has a Customs Union, Common Market and is now working on a Monetary Union. Its ultimate goal is to have a political federation, a similar quest by the EU. Oryem said the integration process should not be left to the elites but also include the ordinary citizens of each member country who should play a critical role. He argued that until the ordinary citizens appreciate the value of the integration process, it would be a fallacy to integrate the bloc. "They really have to understand it, believe in it and embrace it in order for us to move forward because if they don't, then the consequences would be similar to what is in Britain if a referendum is called," Oryem said. He added, "With in the EAC, we need to go back on...

Spotlight: China-Africa cooperation plans to boost Africa's integration

KIGALI, June 21(Xinhua) -- As Africa looks forward to continental integration, the Chinese government announced plans to roll out major joint ventures that will enable the continent to achieve integration agenda. Last year, the Chinese government announced that it will roll out 10 cooperation plans that will strengthen cooperation with Africa within the next three years. The programs cover the areas of agriculture modernization, infrastructure, industrialization, financial services, trade and investment facilitation, green development, peace and security, poverty reduction and public welfare, public health and people-to-people exchanges. China will also offer 60 billion U.S. dollars to ensure the smooth implementation of the cooperation initiatives. Speaking to Xinhua on Tuesday, Claver Gatete, Rwanda minister of finance and economic planning, said that China's major economic cooperation arrangements with Africa will play a crucial role towards boosting economic integration on the continent. "These economic initiatives and other efforts toward Africa regional integration hold the promise of boosting intra-regional trade and improving investment prospects in the continent, as well as African competitiveness," he said. Africa trade integration has long been a strategic objective for Africa policy makers and economists, despite the continent's market remains highly fragmented. On June 10, 2015 in Cairo, the Tripartite Free Trade Area (TFTA) was officially launched which seeks to boost economic growth in Africa. TFTA brings together three of Africa's major regional economic communities -- the Southern African Development Community (SADC), the East African Community (EAC), and the Common Market for Eastern and Southern Africa (COMESA). According to Dr....

Regional MPs rally women to participate in EAC affairs

Involvement of East African women in the region’s integration agenda is very important and must be enhanced, regional lawmakers have said. Rwanda’s representatives to the East African Legislative Assembly (EALA), who are currently on a countrywide sensitisation tour, say Rwandan women should make the most of the integration agenda. Last Friday, the lawmakers interacted with women groups’ representatives in various parts of the country. The chairperson of EALA Rwanda Chapter, MP Patricia Hajabakiga, told The New Times, yesterday, that they traversed Gatsibo, Kayonza and Nyagatare districts where they met and talked to the leadership of women councils, cooperatives and civil society. Discussion topics included the historical background, the objectives, components of the EAC Treaty, and the negotiated protocols and laws. “We urged them to harness the benefits of Easct African Community integration and to increase production to take advantage of the bigger market.Women in EAC are more than 50 per cent of the total population and therefore their participation is critical,” Hajabakiga said. “However, it was noted that few women are involved in cross-border trade and most of those involved are still in the informal sector. We also noticed a lack of information on EAC matters on their part, and most of them acknowledged that they know that Rwanda is a member of EAC but had never been sensitised about it.” According to Hajabakiga, some of the women expressed concern that free movement of goods across EAC would make Rwanda a dumping place and a market for others. “Some raised...

East Africa Tourism Platform: Push comes to shove for common tourist visa

Last Friday, yet another meeting of the East Africa Tourism Platform (EATP) took place, this time in Arusha, as a follow-up of the Kigali meeting in early February. EATP promotes East Africa as a single destination founded on growth, dynamism and investment. Regional integration calls for expansion of horizons be it size, scale, competitiveness or partnerships, resulting in an environment for tourism to thrive. By understanding that common challenges need to be solved by agreeable strategic solutions and in line with its mission and vision, EATP hosted this latest forum geared to offer a platform for open discussions on the vision of East Africa as a single tourism destination and the feasibility and viability thereof. Participants in Arusha were once again drawn from key companies and private sector tourism associations in the five East African Community member states of Burundi, Rwanda, Kenya, Tanzania, and Uganda, as well as tourism boards of Kenya, Rwanda, and Uganda. The Arusha forum was a follow-up one where this time the stakeholders invited were the key business and tourism stakeholders, in other words those individuals considered the industry's movers and shakers. As key players and influencers, the participants were gathered in the same room to discuss challenges and opportunities to development of tourism in the EAC and promoting the region as a single destination. The stakeholders invited from the 5 countries of the EAC must have a say in shaping the future of tourism and are already working in the EAC and doing cross-border business....

Africa: AU Plans E-Passport to Hasten Movement of People and Trade

The African Union (AU) is set to launch an electronic passport (e-passport) in the next two weeks in part of measures to boost movement of people across the continent. The e-passport, to be launched during the African Union's 27th Summit which kicks off in Rwanda from July 10, is part of efforts to boost intra-regional trade. The AU, however, says member countries will have to adopt and ratify necessary protocols and laws to prepare the way for use of the passport. Heads of state and government, ministers of foreign affairs and the permanent representatives of AU member states based at the headquarters in Addis Ababa will be the first group to get the e-passports during the summit. Dr Nkosazana Dlamini Zuma, the chairperson of the African Union Commission (AUC), termed the move a "steady step toward the objective of creating a strong, prosperous and integrated Africa." The Rwanda summit will talk about Africa's integration and the introduction of a common passport. Countries like the Seychelles, Mauritius, Rwanda, and Ghana have taken the lead in ensuring easier intra-Africa travel by relaxing visa restrictions and in some cases lifting visa requirements altogether. The East Africa Community in March launched an the document. A phase out programme for the current East African and national passports will go on for two years staring January next year. Source: All Africa

The New U.S. President and African Trade

During the 2016 presidential primaries, while the United States media has been obsessed with who said what to Megyn Kelly, the world has looked on with amusement at Republican Party infighting. Those of us in Africa, however, have been wondering what the outcome of this election might mean for the continent. Will Trump put up trade barriers to shore up jobs at home? Will he reduce foreign aid? What about his approach to climate change? Will Clinton approach foreign affairs differently as president than she did as secretary of state? Trump has been quoted on record as saying, “It is necessary that we invest in our infrastructure, and stop sending foreign aid to countries that hate us.” This is perhaps good news for Africa, as these countries don’t have a reputation of hating America. Trump clearly has strong views on China and continues to flip-flop on policy issues such as sending aid to the Middle East. From an African perspective, this may be perhaps a case of “no news is good news,” as the region often stays below the political radar. U.S.-African relations are complex and mutually beneficial, a reality that has not gone unnoticed by the Republican Party. In February, President Obama signed the Electrify Africa Act of 2015, which establishes a comprehensive U.S. policy to improve access to affordable and reliable electricity in sub-Saharan Africa for at least 50 million people by 2020. Why is this important? Whoever enters the White House in 2017 will quickly come to...