Encouraging results achieved over the past year, including investments at key ports have resulted in reduced cargo transit times on East Africa’s main transport corridors, and accelerated implementation of the EAC’s Single Customs Territory. Harmonisation of product standards has expanded the EAC trade basket says TMA Annual Report. [caption id="attachment_6830" align="alignleft" width="600"] Minister Works and Transport John Byabagambi, Ms. Edith Mwanje Permanent Secretary Ministry of East African Community Affairs, Frank Matsaert CEO Trade Mark East Africa and Karin Anderson Programme Chair Investment Committee Trade Mark East Africa pose for a photo during the official hand over of the 2013/2014 TMA Annual Report to the Ugandan Government in Kampala[/caption] Kampala, 24 March 2015. Investments in trade infrastructure as well as the dismantling of bureaucratic and procedural barriers to economic integration, is positioning the EAC region as the destination of choice for doing business, TradeMark Africa (TMA) said today as they launched their annual report covering the period 2013/2014. TMA further stated that its partnership with the East African Governments has resulted to great progress in delivering 7 key One Stop Border Posts (OSBP) across East Africa this year to increase physical access to markets for both formal and informal traders. Pilot operations at the Kobero/Kabanga between Tanzania and Burundi borders already indicate a two day reduction in transit times at Kabanga for cargo trucks, as well as reduction in tedious formalities for traders which have had adverse impact on time and costs of business in the past. This announcement was made...

The United Kingdom of Great Britain and Northern Ireland's Department for International Development (DFID) mandated the International Trade Centre (ITC) to design and implement a project, called 'Supporting India's Trade and Investment Preferences for Africa' (SITA). The Confederation of Indian Industry (CII) is the implementation partner for the project in India. Speaking at an event to mark the launch of the project, Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Government of India stated that the India Africa relationship was based on collaboration and participation and the SITA project fits well within that framework. He felt that the SITA project would help take the India Africa economic relationship to a different level. Despite an enormous untapped potential for trade expansion between India and Africa, data reveal that a limited number of products are currently being traded. India's trade with Africa is concentrated in certain sectors and countries, and it is dominated by exports of primary commodities. While the potential for export diversification exists, it may not be realized without targeted intervention. India is well-positioned as a partner to improve the productive and export capacities of African partner countries. With the growing importance of South-South cooperation, India's expertise can be leveraged to build trade capacities in African partner countries through the sharing of knowledge, technology and lessons learnt. The project responds to the challenges that selected East African countries - Ethiopia, Kenya, Rwanda, Uganda and the United Republic of Tanzania - face in increasing and diversifying exports. It also addresses trade priorities...

According to a report by The East African… Kenya, Uganda and Rwanda have agreed to reduce the cost of sending a SMS across the three countries. During a regional summit in Kigali, which was held on 6 March 2015, the three partner states agreed that the wholesale price for SMS within the region will not be more than USD 0.03 per SMS, including all applicable taxes, while the retail price will not exceed USD 0.06 cents per SMS. This is less than half the current market rates. Last year the countries already agreed a reduction in roaming voice rates, under the One Network Area agreement. The drop in roaming charges is expected to stimulate growth in the telecommunications sector and promote cross-border trade. This is according to a report by The East African. Source: IT News Africa

World Trade Center Delaware will host a March 31 roundtable discussion to provide advice on navigating the business environments of five nations in sub-Saharan Africa. The event is designed to help local companies take advantage of the United States' new trade agreement with the East African Community, which includes Burundi, Kenya, Rwanda, Tanzania and Uganda. Stabilizing political environments and above-average GDP growth are making the countries of sub-Saharan Africa increasingly active trade prospects, having imported $1.2 billion in American goods in 2013 and $2 billion in 2014, according to the nonprofit trade center. The roundtable will be led by Ludwika Alvarez, an international trade specialist with the U.S. Department of Commerce, who advises multinational corporations and small businesses on strategic market entry and supports commercial diplomacy efforts in East Africa. The event will held from 8:30 a.m. to 10:30 a.m. at the Diamond State Port Corporation in Wilmington. Attendance is free for World Trace Center Delaware members and $50 for non-members. Source: Delawareonline

KAMPALA, UGANDA - Local importers have once again cried out to the East African Community (EAC) to save them from auxiliary charges being charged by Shipping Lines under their umbrella body Association of Container Freight Stations (CFS). Charles Kareebi the Chairperson of the Uganda Shippers Council and President Uganda Freight Forwarders Association said in Kampala recently the Shipping Lines have continued to charge duplicated fees like $70 of the Delivery Order Note, $90 on transporting each TEU(Twenty Foot Equivalent Tonnes) container from the ship to the CFS storage facilities and $10 as cleaning fees. “There is no difference between the Bill of Legend and this so called Delivery Order Note. Why continue to duplicate and we pay these auxiliary fees. When you multiply those fees throughout a year, they make us uncompetitive and our doing of business expensive,” said Kareebi at the Kenya Ports Authority Stakeholders dialogue in Kampala. Kareebi cited the multiple weighbridges in Kenya as another Non-Tariff Barrier to trade. “One weighs at Mariyakani, then Mlolongo, Gilgil and Webuye. Why all these weigh bridges. We think if one has weighed at Mariyakani, the next weighing point should be Busia or Malaba,” stressed Kareebi. “There are more than 33 Shipping Lines at the Port of Mombasa. Most of which are not even in Uganda, such fees are destruction to our work,” noted Jaffery Ali the General Secretary of the Uganda Clearing Industry and forwarding Association (UCIFA). Daniel Nzeki, the Chief Executive Officer (CEO) of the Container Freight Stations explained...

South Sudan and Somalia may not be allowed into the East African Community unless they return to stability and adopt democracy, EAC Chair President Jakaya Kikwete has hinted. While delivering the State of EAC Address in Bujumbura on Thursday last week, President Kikwete said democracy, good governance, human rights and rule of law are critical tenets of the EAC. “Better governed member states contribute to a prosperous region... badly governed states frustrate integration. It impedes trade, co-operation, as well as movement of people, goods, services and capital. Moreover, it deters investment and makes the region an unfavourable destination for investment and trade,” said President Kikwete South Sudan has been pushing to be admitted to the EAC since 2011, soon after it obtained Independence from Sudan. The 1999 EAC Treaty sets out conditions for membership, including adherence to universally acceptable principles of good governance, democracy, rule of law, observance of human rights and social justice. At the EAC Heads of State Summit in Nairobi on February 20, the five presidents agreed that the final negotiations on the bid by South Sudan to join the community should begin between March and August 2015 despite its current security situation. The EAC heads of state have been at the forefront in calling for an immediate end to hostilities in South Sudan. In December 2012, EAC members rejected South Sudan’s application, citing its periodic conflict with neighbouring Sudan, not holding democratic elections and lack of a democratic culture. At the time, Tanzania was concerned about...

The EAC has deferred the clearing of sensitive goods through the Single Customs Territory until some concerns have been addressed. The four products — sugar, alcoholic and non-alcoholic drinks, second-hand clothes and edible oil — were withdrawn by Kenya, Uganda and Rwanda after stakeholders termed them as “controversial goods.” “The lack of harmonised quality and inspection standards and uniform taxes by partner states on clearing goods, and the challenge of verifying the origin of the products, are the main issues on clearing these goods,” said Kenya Shippers Council chief executive officer Gilbert Langat. The goods will remain suspended until the issues are resolved, he added. EAC states’ national standards bodies are in the process of harmonising quality inspection procedures. The harmonised system is expected to facilitate the inspection of products at the first point of entry into the region. Harmonised standards mean that a conformity assessment will be done only once, instead of goods being assessed in each country. This is expected to increase efficiency in the movement of goods, the pace of trade and reduce costs associated with assessments. Mr Langat said sugar, in particular, is a sensitive product for the partner states and the challenge has been how to verify its source. Since 2008, imported sugar has been finding its way into the Kenyan market either illegally through its porous borders, or legitimately through Comesa. “It has not been easy to tell whether it is coming from the Comesa countries or outside, and since partner states have accused...

THE recent pledge by President Jakaya Kikwete, also Chairperson of the East African Community (EAC) that he would give due attention to elimination of Non Tariff Barriers in the region, deserves commendations as partner states strive to make the region the best place to do business. Addressing members of the East African Legislative Assembly (EALA) in Bujumbura, Burundi on Thursday, President Kikwete cited examples of achievements registered in trade leading to 300 per cent increase in the value of trade from 2 billion US dollars to 6 billion dollars in 2014. The Charter establishing the East African Community (EAC) stipulates that the entry point in the integration process would be the Customs Union, followed by the Common Market, later the Monetary Union and ultimately the Political Federation. Implementation of the Customs Union which started in 2000 involved free movement of goods produced in any of the region and a common external tariff. Goods are supposed to move freely across the borders of member countries without tariffs being charged and not hampered by Non Tariff Barriers. Indeed, it has proven helpful in reducing encumbrances to importers and in discouraging dumping and diversion of transit goods. Ultimately, it will be an effective tool of promoting trade and curbing revenue loss to governments. The region is looking forward for increased revenues when the Single Customs Territory becomes fully operational in the near future and the piloting exercises are progressing well in all member states. The appeal to EAC member states on the obligation...

FINLAND has contributed to Zambia’s new product and packaging standards through the international trade centre which was signed with Common Market for East and Southern Africa (COMESA) to boost intra-African trade, Finnish ambassador to Zambia Timo Olkkonen says. Mr Olkkonen said the promotion of regional integration has the potential to contribute to the growth of the country’s economy. He said recently when he presented a letter of appointment as representative of Finland to the COMESA secretary general Sindiso Ngwenya. “Finland appreciates enormously the possibilities and potential regional integration can have in boosting a country’s economy and well-being. Finland is supporting information technology communication [and] promoting intra-regional trade with a project that is concentrating in mango, honey and spice produce." “In Zambia, the project has contributed to new product and packaging standards…There was a delegation from Zambia to study export-opportunities in Finland and study value-chains in Finnish markets last January,” he said. He said Finland is an economy that is highly dependent on exports with its main markets being Europe and has been keen to integrate with the European Union (EU) which has resulted in its economic growth. Mr Olkkonen said Finland also supports the development of the private sector in Zambia. He also said Finland believes that the current economic growth witnessed in many African countries will continue to provide opportunities to local, regional, continental and international trade. He said Africa has the potential for a more strong economic growth through closer regional cooperation and integration, since intra-African trade still...

This is the debate The Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI) sparked off in a consultative meeting it held today. Uganda has signed a number of treaties and is still negotiating some which include the European Union –East Africa Community(EAC) Economic Partnership Agreements(EPAS), The US-EAC Trade Investment Partnership Agreement and other bilateral ones with Bilateral Investment Treaties with Countries like Belgian, France, China, Denmark, China, Italy, and Netherlands . Such agreements seek to promote trade and secure Foreign Direct Investments (FDIs) which is seen as important for the country’s economic development but Martin Luther Munu, SEATINI programme Officer says that they also have implications on Social Transformation through the impacts they create on industrial development and employment creation, people’s livelihoods, revenue and the overall policy space for undertaking development objectives. This policy space can only be protected and made more democratic because Parliament is not involved in the current ratification process except for treaties that relate to armistice, neutrality or peace and there is therefore need to amend the Ratification of Treaties Act 1998 that empowers the Cabinet to ratify all treaties made by the country. Not only will this ratification process enable a wider consultation among stakeholders but will also cause debate to scrutinize the long term effects of ratifying such agreements according to Ambassador Nathan Irumba, the Chief Executive Director of SEATINI. But Babra Turyasingura, a legal officer from Uganda Law Reform Commission says ratification is the prerogative of the president and people should...