News Tag: Uganda

Africa’s largest trading block resolves 385 non-tariff barriers

Ato Hailemariam Desalegn, Prime Minister of Ethiopia and Chairman of the COMESA AuthorityTHE Common Market for Eastern and Southern Africa (COMESA) said 385 out of 476 NTBs identified as most restrictive to trade in the region through an online reporting system have been resolved while seven were considered non-actionable. Currently, eight categories of NTBs have been identified as most restrictive to trade in the region. They include Government participation in trade and restrictive practices tolerated by governments; lengthy customs and administrative entry procedures; technical barriers to trade and sanitary and phyto-sanitary measures. According to the statement, other barriers include specific limitations including quantitative restrictions, and quotas; charges on imports; transport, clearing and forwarding; and issues related to transit clearance; and other procedural restrictions. Customs and administrative entry procedures lead in the number of NTBs reported at 37 percent followed by transport, clearing and forwarding with 17 percent and other procedural problems with 15 percent, the statement added. The online system was developed within the context of a tripartite arrangement among three African trade blocs namely COMESA, East African Community (EAC) and the Southern African Development Community (SADC), for reporting, monitoring and eliminating NTBs. It is a systematic way of capturing, storing, monitoring and tracing progress towards elimination of NTBs among the tripartite countries. This dynamic online system provides a systematic and transparent process for identification and elimination of barriers to trade in the tripartite region. However, if the position of the World Trade Organisation's former Director-General, Pascal Lamy, that removing...

Regional importers could lose unclaimed goods at Mombasa as waiver expires

Nairobi — MORE than 2,000 containers that have overstayed at the Mombasa port are set to be auctioned after the storage-charge waiver given to importers expires Tuesday. On February 14, the Kenya Revenue Authority (KRA) announced that the government would waive all charges accruing on the storage of containers discharged at the port before November 30, 2014, provided they were cleared within 60 days. "All such goods that will not have been removed from the port and Container Freight Stations (CFSs) upon expiry of the 60-day notice shall be sold by public auction without further reference to the owners," KRA said in the notice. The move was prompted by the high number of containers lying at the port, some of which have remained there for over 10 years, holding up space at the CFSs and port yards. But even as the waiver expires, the few number of containers cleared over the past 60 days has sparked controversy, with a section of industry players saying it was 'cosmetic' and was meant to open a window for illegal auctioning of the cargo. Bureaucracy Some importers said they were yet to clear their cargo due to bureaucracy and refusal by some CFSs and shipping lines to waive the charges. By yesterday, KRA could not state how many containers had so far been cleared during the waiver period, with Fatma Yusuf, the officer in charge of marketing and communication, saying they were still compiling data. While multiple sources at the port indicated that the...

WTO cuts world trade growth forecasts for 2015and 2016

(Reuters) - Global goods trade will grow by 3.3 percent this year and by 4.0 percent in 2016, less than previously forecast, mainly due to sluggish economic growth, the World Trade Organization said on Tuesday. "We expect trade to continue its slow recovery but with economic growth still fragile and continued geopolitical tensions, this trend could easily be undermined," WTO Director-General Roberto Azevedo said. The WTO figures are based on economic growth estimates from organisations including the International Monetary Fund, which will update its forecasts later on Tuesday. WTO chief economist Robert Koopman said he had seen the new IMF figures and they would be "in the same ballpark" and not affect the WTO's forecast. Although the forecasts do suggest some modest growth in world goods trade, they follow repeated downward revisions of trade forecasts as the economic outlook worsened. Trade grew by 2.8 percent in 2014, far less than an original forecast of 4.7 percent and also below the revised forecast of 3.1 percent that the WTO predicted last September. The new expectation of 3.3 percent growth this year - already revised down twice, from 5.3 percent and then 4.0 percent, is a small acceleration but far below the long term trend. Growth averaged 2.4 percent over each of the last three years, compared with an annual average of 6.0 percent between 1990 and the global financial crisis that began in 2007-2008. "There has only been one other period since the Second World War in which trade growth has...

Punish states flouting trade rules, assembly member urges

Countries that fail to comply with regional trade rules should be punished, a regional assembly member has said. Mr Bernard Mulengani said East African Community council of ministers should introduce a uniform policy across the bloc to slap sanctions on member states that breach trade regulations. Mr Mulengani, a member of the East African Legislative Assembly, was speaking during a debate on the region’s single customs territory report. “What we need as a region is quality products, lower costs of doing business and competitiveness to spur benefits to the citizens of the region,” Mr Mulengani said. Although there are rules and regulations toward the realisation of these objectives, he said, lack of awareness is impeding their implementation. He said citizens in the bloc should be made aware of the importance of integration. TRADING POTENTIAL “We need to remove the fears arising out of lack of awareness,” Mr Mulengani noted. Contributing to the debate, Mr Mike Sebalu said the business community should be told the benefits of the regional integration. Last year in May, regional judicial officers were trained on the EAC legal framework and their role in integration. The officers were also trained on how to effectively build capacity on their roles in EAC integration. The EAC secretariat in partnership with the German Development Cooperation’s arm GIZ also recently announced plans to hold a series of workshops to bridge gaps in cross-border trade. The training targeting small traders, young entrepreneurs and women traders, will focus on EAC policies, projects and...

TradeMark amplifies women’s business drive

Organised by TradeMark Africa in partnership with the iCON Enterprise Foundation (formerly iCON Women & Young People’s Leadership Academy), the East African Business Council and the East African Women in Business Platform (EAWiBP), the meeting themed: “Enhancing Participation and Amplifying Voices of Uganda Women in Business and Trade in the East African Integration Process”. The function was graced by the Minister of Trade, Industry and Cooperatives, Hon. Amelia Kyambadde. TradeMark Africa (TMA) an organisation funded by a range of development agencies with the aim of growing prosperity in East Africa through trade, established a regional women in business platform (East African Women in Business Platform) to position and catalyse the participation of women in EAC integration process. The platform’s key strategies are to: increase effective participation of women in business in EAC integration processes; improve economic contribution of women in business in EAC Partner States and; increase progression of women-owned enterprises in EAC from informal to formal status. Allen Asiimwe, Director Trade Mark East Africa-Uganda, said “The Platform currently hosted by the East African Business Council (EABC) has member organisations at the national level who together with other women associations address issues with different levels of success, however the capacity of these organisations to adequately research, articulate and advocate on key policy issues affecting their engagement in EAC regional trade remains limited. This is why the breakfast meeting today is important to make aware and address the need to deepen the interventions at national level, develop a collective and coordinated...

East African community in new plan to bridge cross-border trade gap

The East African Community ( EAC) Secretariat has embarked on a strategy to encourage ownership and protection of the integration process by citizens. As a way of strengthening communication and sensitisation on its achievements and popularising integration benefits to all East Africans, the EAC Secretariat and GIZ, an international enterprise owned by the German Government, are set to conduct sensitisation workshops at various border points including the one at Sirari/Isebania. The workshops to be held between April 16 to 17 and from 23 to 24 targets small traders, young entrepreneurs and women traders. Special attention will be given to the free movement of goods, capital, persons and labour across EAC partner States. The workshops will be complemented by trainings on customs clearing procedures, including payment of taxes and the consequences of crossing the border without a valid travel document, according to a statement from EAC Secretariat. Training guidelines will be developed to increase knowledge about cross-border trade for the selected target groups. Source: Standard Digital

Cost of goods in region to go up in July

Landlocked countries that import goods through Mombasa port could see a significant rise in the cost of goods when sections of the Kenya Finance Act 2014 come into force from July 1. Transporters are warning of a possible 10 to 12 per cent increase in freight charges thanks to recent changes to the VAT law. In a tax alert to its clients last September, the accounting firm PriceWaterhouse Coopers said that while the supply of taxable services in respect of goods in transit was previously zero rated under the repealed VAT Act, the Finance Act 2014 had changed services relating to goods transiting through Kenya to inland countries from zero rated to exempted services. “By exempting these services, transportation companies will not be entitled to input tax recovery on the same percentage of VAT paid on their purchases equal to the percentage of revenue earned for transit cargo. This will increase the cost of doing business in Kenya and ultimately increase the cost of transit goods,” the firm said it its alert. The EastAfrican has learnt that sections of the Kenyan freight industry engaged the Kenya Revenue Authority over the development on March 31, but the tax collector said the power to correct the anomaly lies with the Treasury. On April 10, Kenya Uganda rail concessionaire Rift Valley Railways in conjunction with Spedag-Interfreight were expected to submit a lobby paper to the Treasury, seeking a reversal of the move on VAT. Separately, the Kenya Association of Transporters was preparing another...

EAC coop law nears signing

NAIROBI, Kenya – A proposed regional law that will help unlock agricultural productivity is waiting for the signatures of the five Heads of State. The enactment of the East African Community Cooperatives Bill 2014, which stands to benefit EAC farmers now awaits endorsement by Presidents Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda, Jakaya Kikwete of Tanzania, Rwanda’s Paul Kagame and Pierre Nkurunziza of Burundi. Agriculture is the dominant sector in the five member states, followed closely by wholesale and retail trade as well as manufacturing, transport and communications. This piece of legislation which was passed last January may have gone unnoticed by the majority of the 140 million citizens with in the EAC. It is expected to move the entire region’s economies and people to new levels of social and economic development by unlocking the region’s productive potential. The EAC Cooperatives Bill is a harmonized legislative framework for the facilitation of East Africa’s cooperative societies. It is viewed by its proponents as a vote of confidence by East Africans and the vehicle that will drive existing economies to new levels of growth and prosperity. Mike Sebalu, a Member of Parliament in the East African Legislative Assembly (EALA) from Uganda who moved the Bill said the importance of creating a law that responds to the needs of East Africans by its capacity to catalyze economic and social development in the region. “The spirit of the EAC’s integration agenda is that it is people-centred, private sector led and market-driven process that...

Mutukula to host EAC bandwagon

ARUSHA, Tanzania - The East African Community (EAC) Secretariat, together with the German Agency for International Cooperation (GIZ), will hold sensitization workshops at Mutukula and Sirari/Isebania borders. These will take place from April 16th to 17th and from 23rd to 24th April respectively. The workshops are seen as a way to strengthen communication and sensitisation of EAC achievements and popularizing integration benefits to all East Africans. Target groups include small traders, young entrepreneurs and women traders, will be conducted in a participatory manner with presentations on EAC policies, projects and programs. “The potential for cross border trade and related economic impact at border communities are not entirely explored, because remote communities have very little or no knowledge of the integration or its benefits” Richard Owora, the Head of EAC Corporate Communications and Public Affairs said last week. Special attention will be given to the free movement of goods, capital, persons and labour across EAC Partner States. According to a release, the workshops will be complemented by trainings on customs clearing procedures, including payment of taxes and the consequences of crossing the border without a valid travel document. Training guidelines will be developed to increase knowledge about cross-border trade for the selected target groups. EAC-GIZ will also be engaging community based media in disseminating EAC information, education and communication as a means of reaching out to more East Africans. “With these workshops, border communities and the small traders will gain essential skills and knowledge from the best practices and lessons learned...

EAC stresses free movement

EAST African Community (EAC) Secretariat in collaboration with GIZ plan to conduct sensitization workshop in Mtukula and Sirari borders between April 16 and 17 and 23 and 24 respectively to strengthen communication and sensitization of the community achievements and popularizing integration benefits. Head of EAC Corporate Communications and Public Affairs, Mr Owora Richard Othieno, pointed out that the workshops targets small traders, young entrepreneurs and women traders and will involve presentations on EAC policies, projects and programmes. "Special attention will be given to the free movement of goods, capital, persons and labour across EAC Partner States," reads part of the statement. He said that the workshops will be complemented by trainings on customs clearing procedures, including payment of taxes and the consequences of crossing the border without a valid travel document. According to Mr Othieno, training guidelines will be developed to increase knowledge about cross-border trade for the selected target groups. EAC-GIZ will also be engaging community based media in disseminating EAC information, education and communication as a means of reaching out to more East Africans. "The potential for cross border trade and related economic impact at border communities are not entirely explored because remote communities have very little or no knowledge of the integration or its benefits," he noted. He explained that from the workshops, border communities and the small traders will gain essential skills and knowledge from the best practices and lessons learned in the integration process. The first round of the sensitization workshops were held between June...