Browsing: Intra EAC trade

The East African Community, through the East African Business Council to boost intra-EAC trade. www.theexchange.africa

The CET maximum rate was a realization by the EAC Secretariat on the proposed Common External Tariff (CET) rates of 30 per cent, 33 per cent and 35 per cent classified under the fourth (maximum) band, which include textiles, iron, steel and motor vehicles.

The East African Business Council (EABC) urges the partner states- Kenya, Uganda, Tanzania, Burundi, Rwanda and South Sudan- to adopt the maximum CET tariff trade to spur industrialization and strengthen the regional value chain.

In 2020, the total intra-EAC trade stood at 11.8 per cent, amounting to US$6.39 billion. The proposed 35 per cent tariff is set to boost the trade between EAC member states to US$6.4 billion.…

It all began on March 5th when the Agriculture and Food Authority (AFA) stopped any further imports of maize into Kenya with immediate effect.

This move was necessitated by the Kenyan government’s need to control the entry of unsafe maize.  According to the ministry of agriculture, previous test results for maize imported from Uganda and Tanzania revealed high levels of mycotoxins consistently beyond safety limits. Mycotoxins particularly aflatoxins and fumonisins are carcinogenic.

This move by the government cast a shadow over the shortage of maize in the country, but the ministry was quick to reassure citizens of a stable maize supply stating, “The Ministry further wishes to avert fear over alleged shortage of maize in the country. Projections up to the end of May 2021 indicate a surplus of 11,807,681 90kg bags, with the price of maize expected to remain stable.”

Currently, the wholesale maize price is averaging Sh2,600/= …

A regional business umbrella body has called upon East Africa’s partner states to harmonise investment incentives and market the region as a single investment destination. 

The East African Business Council (EABC) is counting on the six heads of EAC member states to merge marketing of the bloc and attract investors in the various opportunities available. One of the aspects the EABC recommends is harmonising incentives to make it easier for investors to pick the bloc from the rest of the continent.  

East Africa has often been referred to as one of the fastest growing trading blocs in Africa. With a population of more than 177.2 million people the region presents a readily available demand for products and services that emerge from the prospective investments. The region also has a combined GDP size of more than US$147.5 billion. 

A recent report by South Africa’s Rand Merchant Bank

Since the Common Market Protocol was launched in 2010, trade between East African Community member states has increased by 60.75 per cent from $3.72 billion to $5.98 billion in 2018, the latest trade data show.

Despite non-tariff barriers (NTBs) continuously holding back the region’s potential, the Common Market Protocol has boosted trade in the region by easing the cross-border movement of goods and people.

The East Africa Community Trade and Investment Report shows that the value of intra-regional trade increased by 9.4 per cent to $5.98 billion in 2018 from $5.46 billion in 2017.

The growth was partly caused by EAC countries’ increased preference for trading with each other so as to counterbalance falling demand for the region’s products in European and US markets.

Also Read: Uganda, Rwanda record reduced trade flows

All EAC member states apart from Burundi recorded growth in trade with their regional counterparts, the report showed.…

When President Uhuru Kenyatta stepped out on his Harambee house offices to announce the measures to curb the spread of Novel Coronavirus, no one knew the effect it would have on the East African citizens. In his announcement, the President gave an allowance of 48 hours for non-Kenyans to arrive and be quarantined after which none will be allowed.

While the rules of engagement for a trade block like East African Community has been to allow the free movement of people, goods, and services, Coronavirus has stepped to challenge this notion, with most countries viciously guarding their borders against foreign entry.

In regional bodies like the European Union, the movement of people and goods across the region is becoming more difficult with border chaos being witnessed in countries traditionally with the easiest border crossing exercises.

In East Africa, crossing the boundary is even harder. After Kenya announced the crossing of …

Family businesses are an underestimated economic driving force according to the Africa Investment Forum.

Earlier this year, a survey from PricewaterhouseCoopers (PwC), revealed that 17 per cent of Kenya family business owners report having a robust, documented and communicated succession plan in place, compared to 15 per cent globally.

Family businesses are rarely viewed as a sector which could influence economic growth, but the Africa Investment Forum is recognising them as important players on the continent.

In its third edition, a report dubbed the Family Business Survey 2018 by PricewaterhouseCoopers (PWC) noted that digital technology is disrupting businesses; sustainability is becoming key to the conduct of business; winning trust is more important than it’s ever been; and millenials present an enduring demographic change.

The 2018 survey results shows that family businesses in Kenya are in robust health, with revenues expected to continue growing for the vast majority 82 per cent, …

East African Community ( EAC )member states have been urged to should eliminate NTBs and implement agreed EAC directives to boost intra EAC trade to 50 per cent.

According to the East African Business Council CEO Mr Peter Mathuki, business community and officials from Trade Facilitation Agencies should embrace the vision of a borderless East Africa for trade.

Intra EAC trade is currently at 12 per cent.

Last week, EABC – and Trade Mark East Africa (TMEA) kicked off the second Public-Private Dialogue (PPD) with Trade Facilitation Agencies at Busia One-Stop Border Post to interrogate if EAC agreements and practices ease doing business across EAC borders. The EABC-TMEA Public-Private Dialogue was held with Trade Facilitation Agencies at Busia One-Stop Border Post.The PPDs focus is on the extent to which Partner States are translating the EAC Common Market and Customs Union Protocols into policies that support the actualization of free movement …

During the Public-Private Dialogue (PPD) with Trade Facilitation Agencies at the One-Stop Borders across the East African Community (EAC) Partner States to interrogate if EAC agreements and practices ease doing business across borders, the team came up with a set of recommendations.

The 13 recommendations were made to EAC by EABC-TMEA PPD with Trade Facilitation Agencies at Namanga  One Stop Border Post.

The recommendations were expected to help the bloc adhere to the necessary requirements in a bid to improve the ease of doing business in the region.

13 recommendations to EAC

  • Need to reduce police checks along the routes along Arusha-Namanga – Nairobi route

 

  • Need for URT to allow parking cargo trucks at the Border Post (OSBP) than parking at Longido-

 

  • Need for URT to consider the process of issuing temporary passports at Namanga (entry points) other than going to the Longido district.

 

  • Need for URT/Kenya

The regional business lobby group East African Business Council (EABC) is working with the TradeMark (Trade and Markets) East Africa (TMEA) to evaluate if if EAC agreements and practices ease doing business across borders.

The two bodies have kick started Public-Private Dialogue (PPD) with Trade Facilitation Agencies at the One-Stop Borders across the EAC Partner States to determine this.

According to a statement from EABC, the PPDs focus is on the extent to which Partner States are translating the EAC Common Market and Customs Union Protocols into policies that support the actualization of free movement of goods and people.

The first EABC Public-Private Dialogue with Trade Facilitation Agencies at Namanga  One-Stop Border Post on 12th March 2019, brought together officials from Ministries of EAC Affairs, Immigration, bureaus of standards, plant and animal health, sanitary and phytosanitary (SPS), Revenue Authority, Police, cross border traders, transporters, exporters, importers, business leaders and …