A strong call has been made to the East African Community (EAC), partner states to prioritize on policies that will attract and promote investment focusing on the development of the people and business community.The integration of the people into the economy is the only way to ensure that growth has a broad effect and is sustainable. “We have to listen to the people and to the businesses and it is only by working together that we will be able to spur economic growth in our region,” The Chairperson of the Summit of East African Community Heads of State, Paul Kagame said over the weekend. Read more. Source | Daily News
Trade among East African Community states has declined by 31.4 per cent, thanks to non-tariff barriers and increasing imports from Asia. A new report by the United Nations Economic Commission for Africa (Uneca) shows that intra-EAC trade fell to $2.4 billion in 2017, from $3.5 billion in 2013, with Kenya and Tanzania being blamed for the decline.The situation may not change soon, as partner states grapple with trade and political tensions between Rwanda and Uganda over the lock down of the Gatuna border post; and Rwanda and Burundi continue to differ over security matters. Read more. Source| The East African
East Africa’s intra-regional trade is falling by the day as trade disputes and non-tariff barriers persist, giving way to the creation of new trade alliances by frustrated partner states. Official data shows that the volume of trade among the East African Community partner states is not high enough, to prevent trading partners such as China and India makin major inroads into the region.
According to the EAC Secretariat, the overall intra-regional trade has been meagre, accounting for a paltry 0.2 per cent of global trade in 2017, compared with 0.3 per cent in 2016. Read more. Source | The East African
Members of the East African Legislative Assembly (EALA) Tanzania Chapter have launched an awareness creation campaign aiming at equipping Tanzanian youth with knowledge and opportunities to be explored in the East African Community (EAC) member countries.
EALA Tanzania Chapter chairperson, Dr Abdullah Ma kame, told the ‘Business Standard’ in Dar es Salaam recently that the campaign is focusing on stimulating the youth mind and make them think regionally. Read more. Source | Daily News
East African Community member states are working on joint rules and regulations to rescue troubled banks, as part of measures to enhance the stability of the sector in the region. The region’s deposit insurers started by sharing information on best practices as a first step to merging the rules and regulations governing the protection of depositors’ cash in the region.
The insurers are considering the possibility of adopting a common framework for addressing the issues facing financially distressed banks to avert further failures. Read more. Source | East African
Customs bodies and the business community across the East African Community (EAC) have praised the positive gains from the single customs territory, saying it has eased business and reduced malpractices that had characterized regional trade.
The initiative was introduced in 2013 to improve efficiency in doing business in the region. It seeks to ease doing business across the bloc by electronically processing goods and releasing them from the country of destination prior to loading and releasing from the port. Read more. Source | New Times
Kenya’s Chamber of Commerce and Industry (KNCCI) and the ministry of EAC and Regional Development are working on educating kenyan businesses and entrepreneurs on the available opportunities for trade in the EAC market. This has been agreed by the KNCCI chairman Mr Kiprono Kittony and the cabinet secretary for EAC and Regional Development Mr Peter Munya at a meeting seeking to have both parties collaborating on sensitization and capacity-building of Kenyan businessmen and entrepreneurs to seize the opportunities provided by the EAC integration for accessing the larger East African market. Read more. Source | The Exchange
EAC COMMON MARKET IMPLEMENTATION Impact of Container Cash Deposit Requirement in Kenya: The Case of Private Sector Firms in Rwanda
To highlight the impact of Mombasa Port container cash charges on regional trade and business, the Hub created the following case study focused on Rwanda private sector firms. The study demonstrates the need for a solution to the cash deposit requirement in order to reduce the cost of doing business. The study reveals long administrative time gaps between claim submission and deposit recovery that impact on business cash flow and adds financial burdens, particularly to smaller freight forwarders. It also leads to an increase in operational costs that are ultimately passed on to consumers. The study further reveals how the utilization of a guarantee scheme has enabled some of the firms to reduce costs.
According to The Global Innovation Index 2017 Innovation Feeding the World, Kenya, Rwanda, Senegal, Uganda, Mozambique, and Malawi stand out for being innovation achievers at least five times in the previous six years. All six East African partner states have a great capacity to create wealth for their citizens by harnessing science to attain industrial development, EAC boss has said. Read more. Source | The Exchange
East African Community has continued to realize significant growth and development even though there have been mixed results, EAC Chairperson of the Council of Ministers has said.
According to the Second Deputy Prime Minister, of Uganda, Dr Ali Kirunda Kivenjija, EAC region maintained its position as the fastest-growing sub-region in Africa, with estimated growth of 4.6 % in 2017, up from 4.4 % in 2016. Read more. Source | The Exchange