Browsing: Doing business in EAC

Intra-EAC trade on the decrease

East Africans should brace themselves for an increase in the cost of living as households and businesses pay more for goods and services.

Regional currencies are facing increased pressure against the dollar as increasing debt levels and increased servicing obligations threaten to wear down foreign exchange reserves, market data shows.

The projected drop of regional currencies is mainly attributed to the growing debt servicing obligations for foreign currency-denominated debts. To pay off external creditors, it requires a drawdown of the country’s foreign reserves.

According to analysts at AIB Capital, as a pick-up in consumer demand increases imports, the Kenya shilling is expected to further depreciate against the dollar. The country’s exports are likely to remain relatively uncompetitive therefore, this will lead to an increase in the current account deficit.

“We expect the shilling to gradually depreciate against the dollar but remain relatively unchanged against the euro and pound,” said AIB.…

For the first time ever, the East African Community has converged public and private stakeholders to identify concrete solutions to boost trade and investment opportunities for coffee exporters in the region.

The high level policy makers and business leaders meeting is meant to discuss breaking trade barriers in the EAC and beyond in coffee trade. It will also focus on finance and market access for the region to become a more competitive exporter of coffee.

Dubbed the EAC Coffee Business Forum – organised jointly with the African Fine Coffee Conference and Exhibition – is financed by the European Union through the MARKUP programme. It will feature a week of interactive discussions, workshops and networking events.

According to International Trade Centre, increasing coffee exports from Burundi, Kenya, Uganda, Rwanda and Tanzania could have a considerable positive impact on EAC’s economic development. This can only be achieved if existing trade barriers are …

A new regulation to end cargo delays at Ports, improve cargo flow, improve revenue collection and lower the cost of doing business has just been unveiled.

The regulation, which is now a bill, was unveiled in collaboration with Kenya International Freight Forwarders Association (KIFWA) and the Federation of East African Freight Forwarders Associations (FEAFFA) in partnership with other relevant industry associations.

Speaking to the media during the unveiling of the bill, FEAFFA President, Seka Fred said that with the launch of the proposed bill, Kenya is among the first three countries in the region to have taken tremendous steps in drafting the bill drawing from the principles of our initial model bill 2017.

“A 2018 report by Global Financial Integrity found 8 per cent of Kenya's revenue was being lost due to miss-invoicing of KSh90.7bn ($899.32 million) a year. Imports account for the largest part of this, at KSh76.7bn ($759.69…

Uganda leads East Africa in ease of access to foreign exchange, according to Absa Africa Financial Market Index 2019.

According to the index, Uganda scored 70 out of 100 points compared to Rwanda with 66, Kenya with 65 and Tanzania with 60. Burundi was not surveyed.

Foreign exchange access continues to be a pillar growth across the African continent.

Also Read: Uganda Umeme secures $70m loan for investment

The Absa Africa Financial Markets Index highlights economies with the clearest growth prospects and evaluates financial market development in 20 countries.

The index seeks to show how economies can improve market frameworks to meet investor expectations and sustainable growth.

“Uganda performs strongly … with almost the same score as top-ranked South Africa. It has a high level of foreign reserves relative to net portfolio investment flows and enough reserves to cover more than four months of imports,” said Mr Jeff Gable, the …

The East African Community (EAC) member states have been urged to create a readily accessible regional market for leather products and a conducive business environment to promote regional value addition in the leather sector.

This came out at the EAC Regional Leather Forum convened by the East African Business Council brought together over 40  Industry champions in the leather manufacturing from Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.

According to World Bank Kenya Leather Industry – Diagnosis, Strategy and Action Plan, Leather and Leather products among the most widely traded agro-based commodities in the world,  with a global estimated trade value of over US$ 150 billion a year, more than five times that of coffee. Despite owning about 15 per cent of the world’s cattle population, Africa accounts for only 8 per cent of the world production of cattle hides and 4 per cent of world leather production.

In …

East Africa’s apex body representing businesses in the bloc EABC,have co-organised a dialogue seeking to create business synergies in various sectors while showcasing the EAC as an ideal business destination for trade and investment.

The dialogue dubbed the East African Community-German Business and Investment Expert Dialogue which was also organized by the German-African Business Association at the EAC Headquarters in Arusha, Tanzania.

The Executive Director of the East African Business Council, Mr Peter Mathuki said it is with no doubt that if all Non-Tariff Barriers (NTBs) hindering trade within the  EAC Common Market  are removed, the domestic demand and market of over 150 million people from the six EAC partner states will attract  investments from Germany and all over the world as it will be more economically viable for all Investors to invest in the EAC.

In his remarks read by EABC Manager Policy and Standards, Mr. Lamech Wesonga, …