Category: Africa

EAC still tight-lipped on Kenya’s trade deal with EU

 

The East African Community (EAC) has maintained silence on a recent trade deal by Kenya and the European Union.

Officials of the Secretariat could not comment on the agreement inked this week in Nairobi and witnessed by President William Ruto.

The deal means Kenya has bypassed the fellow EAC member states in implementing the stalled Economic Partnership Agreement (EPA) between the two sides.

An agreement on the same reached by the EAC and the EU in 2014 after years of negotiations was subject to approval by all countries.

It later stalled as other EAC member states declined to endorse it even as Kenya – then the only middle income country – signed and ratified it.

While Tanzania and Uganda declined to approve the agreement for various reasons, Rwanda signed it but did not ratify the EPA.

In the past all the EAC member states were required to sign and ratify the EPA with the EU for it to come into force.

During the inking of the agreement on Monday, Kenya said that it was not bypassing its fellow member states in the bloc this time around.

Kenya was only using a window opened up by the EAC Heads of State during their summit in February 2021.

The summit, held virtually, allowed the partner states to deal bilaterally with the EU and leave room for others to join in future.

Officials of the EAC reached out on Wednesday declined to comment on the matter on grounds that it was a policy needing the attention of the executives.

“We are aware of the deal, but this is a policy issue,” one senior official told The Citizen, referring its journalist to senior executives who, however, could not be reached.

One of them said it has been a while since the EAC-EU-EPA has come up for discussions at the organisation’s high-level meetings.

The issue could not feature in the recently concluded ministerial session of the sectoral council on trade, industry, finance and investments.

By signing the trade deal, Kenya unlocked immediate duty-free, quota-free access for all its exports to the 27 member EU bloc.

At the same time, the East African nation would be compelled to gradually lower import duty for goods from Europe.

A Tanzanian scholar based in the US, Prof Richard Mshomba, said the “go-it-alone” measure taken by Kenya was enough sign of the existing cracks in the EAC.

“It has revealed, very clearly, that the EAC is not a genuine customs union,” he said, noting that Kenya has also reached a bilateral EPA agreement with the UK.

“These bilateral arrangements would not be possible in a real customs union,” said the economics don teaching at La Salle University in the US.

In a customs union, member countries remove trade barriers among themselves and maintain common external tariffs.

Members of a customs union usually first negotiate among themselves to establish a common position before they negotiate with non-members.

On his part, a Tanzanian business consultant based in Germany, Dr Harrison Mwilima, said a move taken by Kenya was not surprising.

“It is not a coincidence that Kenya decided to go it alone. Countries such as Tanzania, Uganda and Burundi did not want to sign due to, among other things, fear that the free trade proposed through EPA would lead to the killing of their local industries.”

For Kenya, being the only country in the region with a middle-income status, not signing EPA meant that its exports to the EU, including mainly tea, coffee and cut flowers, would face tariffs.

However, he was quick to warn that if other EAC member states will not sign regional EPA, Kenyan future trade engagement with the EU will complicate the EAC economic integration.

He cited cases where and when Kenya starts to allow EU products to enter its market with reduced tariffs.

That would mean that European goods have entered an EAC single market and could potentially be exported to other countries.

Speaking during his visit to Brussels, the EU seat last year, EAC secretary-general Peter Mathuki said the bloc was keen to finalize the EPA agreement.

He said since not all the partner states were in a position to sign, ratify and implement the agreement, there would be some flexibility.

“The Partner States who wish to do so should be able to commence engagements with the EU with a view to starting the EU-EAC-EPA implementation under the principle of variable geometry,” he said.

EAC gets over $2m for peace efforts in eastern DR Congo

The AU and the EAC signed a grant agreement of $2 million in facilitating the operation of the EAC-RF at the inaugural Quadripartite Summit held in Luanda, Angola, Tuesday, June 27, 2023.

The first Quadripartite Summit organised over the security crisis in eastern DR Congo took note “with concern the lack of predictable, adequate and sustainable funding” for regional efforts aimed at resolving the crisis.

In this regard, a communique released at the end notes, the Summit directed the AU Commission in coordination with members of the Quadripartite to undertake resource mobilization for the efficient and effective implementation of the Comprehensive Joint Master Plan involving the Luanda roadmap and Nairobi peace process.

The leaders from four regional blocs of the African continent: the EAC, ECCAS, ICGLR and SADC, expressed appreciation to the government Angola for hosting the inaugural Quadripartite Summit.

The agreement was signed on the sidelines of the Quadripartite Summit by EAC Secretary General Peter Mathuki and the AU Commissioner for Political Affairs, Peace and Security, Bankole Adeoye.

The leaders also welcomed the announcement by the government of Gabon of $500,000 as part of contributions towards peace efforts in eastern DR Congo; and appealed “to AU Member States to voluntarily contribute financially to peace processes in Africa.”

The leaders applauded Angola and Senegal for their financial support of Euros 1 million, each, to the EAC-led Nairobi Process.

The leaders decided to institutionalize the Quadripartite Summit, as a platform for harmonization and consultations and welcomed the offer by the government of Burundi to host the second Quadripartite Summit in Bujumbura, Burundi. No date was immediately given.

The EAC regional force, or EAC-RF, comprising troops from Kenya, Burundi, Uganda and South Sudan, was deployed to eastern DR Congo in November 2022, with a mandate of supporting peace efforts, especially securing withdrawal of the M23 rebel group.

It occupied various positions vacated by the M23 rebels in North Kivu province. Eastern DR Congo has remained volatile for nearly three decades.

The vast region is home to more than 130 local and foreign armed groups accused of various atrocities and human rights violations.

In the past, multiple interventions especially by the UN’s largest peacekeeping missions failed to end the decades of violence.

In April 2022, Congolese armed groups that participated in the first phase of dialogues in Kenya’s capital, Nairobi, noted that the presence and operations of foreign militia forces was a threat to peace in the region. They were referring to, among others, the FDLR-FOCA, an UN-sanctioned genocidal group based in eastern DR Congo for close to three decades.

The FDLR was formed by the masterminds of the 1994 Genocide against the Tutsi in Rwanda. It is, together with its splinter groups, at the heart of the insecurity affecting eastern DR Congo and the region. The Rwandan genocidal militia, is now reportedly openly incorporated into the Congolese national army, and has bases in North Kivu and South Kivu provinces.

Mauritius ranks top among most economically free countries in Africa

Economic freedom is the fundamental right of every human to control their labour and property. In economically free societies, individuals are free to work, produce, consume, and invest in any way they please.

These countries have implemented pro-business policies, have diverse economies, and stable political environments, but still face challenges such as high levels of debt, corruption, and political instability.

Here are the top 10 African countries for economic freedom in 2023:

Mauritius: Mauritius ranks first in Africa with an overall score of 70.6 out of 100. Mauritius has implemented various measures to promote economic freedom, including having a well-developed financial sector and making significant efforts to diversify its economy. Mauritius’s stable political environment makes it an attractive destination for foreign investors.

Botswana: Botswana ranks second in Africa with an overall score of 65.5 out of 100. Botswana has a well-established legal system and a stable political environment, which has contributed to its high economic freedom score. Botswana’s economy is heavily reliant on the diamond industry, but the government has made efforts to diversify the economy in recent years.

Côte d’Ivoire: With an overall score of 60.4 out of 100, Côte d’Ivoire ranks 81st globally and third in Africa. The country has made significant strides towards economic freedom, with a diversified economy and a stable political environment. The government has implemented pro-business policies, which have attracted foreign investment.

Tanzania: Tanzania has an overall score of 60.0 out of 100, ranking 84th globally and fourth in Africa. Tanzania has a diverse economy, with agriculture and tourism being the main contributors. The government has implemented various measures to attract foreign investment and promote economic growth.

Benin: With an overall score of 59.8 out of 100, Benin ranks 87th globally and fifth in Africa. Benin has made significant progress towards economic freedom, with a stable political environment and a diversified economy. The government has implemented pro-business policies, attracting foreign investment and promoting economic growth.

Seychelles: Seychelles ranks 91st globally and sixth in Africa, with an overall score of 59.5 out of 100. Seychelles has a well-developed tourism industry and a stable political environment, making it an attractive destination for foreign investors. The government has implemented various measures to promote economic growth and attract foreign investment.

Madagascar: Madagascar ranks 97th globally and seventh in Africa, with an overall score of 58.9 out of 100.

Madagascar has a diverse economy, with agriculture being the main contributor. The government has implemented various measures to promote economic growth and attract foreign investment.

Morocco: Morocco ranks 99th globally and eighth in Africa, with an overall score of 58.4 out of 100. Morocco has a well-developed financial sector and a diversified economy. The government has implemented pro-business policies, attracting foreign investment and promoting economic growth.

Ghana: Ghana ranks 101st globally and ninth in Africa, with an overall score of 58.0 out of 100. Ghana has a diverse economy, with agriculture and mining being the main contributors. The government has implemented various measures to promote economic growth and attract foreign investment.

The Gambia: The Gambia ranks 106th globally and tenth in Africa, with an overall score of 57.4 out of 100. The Gambia has a diverse economy, with agriculture and tourism being the main contributors. The government has implemented various measures to promote economic growth and attract foreign investment.

What EAC’s plan to ditch dollar means for Kenya

    THE East African Community (EAC) has stepped up the push for member states to adopt local currencies in trading with one another, in the latest push to drop the bullish US dollar that is hurting economies in the region.

    David Ole Sankok, a Kenyan member of the East African Legislative Assembly (Eala), has tabled a resolution recommending the EAC use local currencies to boost cross-border trade.

    The legislator’s recommendation to the EAC’s council of ministers and partner states adds to the push by emerging and frontier economies to dump the use of dollars in settling cross-border trade, in what is known as de-dollariszation.

    “Now therefore, may be it resolved by the Assembly as follows: That in accordance with Article 49(2)(d) of the Treaty, the Assembly recommends to the council of ministers and the partner states to operationalize the use of the local currencies of the partners in all transactions in the Community in order to facilitate intra-regional trade,” said Mr Sankok.

    The EAC, according to a study by the African Development Bank, is the most integrated regional economic community on the continent, which explains the fluidity of trade across the borders of the member states.

    Dr Kennedy Manyala, an economist who has worked at the EAC, says that the dollar has only been used where it can be obtained with ease.

    “There is no country that does not want to stock dollars,” he said.

    Dr Manyala said that the Kenya shilling has been very competitive against the dollar in the EAC when it comes to trading and investment.

    This means that you can actually settle your accounts in all the EAC member states in Kenyan shilling.

    The proposal comes at a time when the Kenyan currency is weakening against the regional currencies, in a trend that has seen Tanzania and Uganda narrow their gap.

    In the last three years, the Kenya shilling had has lost 21.7 percent of its value against the Tanzanian shilling, fetching 17.07 units of the Tanzanian currency. On its part, the Kenyan Shilling fetched 31.16 units of the Ugandan shilling, a drop of 24.9 percent three years ago.

    James Njoroge, chairman of China-Dubai Traders Group, said citizens of the EAC have been trading along Busia, Malaba and other border points for a long time and that adopting regional currencies should not be an issue.

    Mr Njoroge noted that even if the countries were to get rid of the US currency, the exchange rates would still be dictated by the greenback.

    The US dollar, he said, is a “super currency” that determines the value of all other currencies and how they exchange between each other.

    “We can therefore call it an inter-country exchange matrix or tool,” said Mr Njoroge.

    Mr Sankok’s proposal echoes recent remarks by President William Ruto in address to the Djibouti Parliament urging African countries to consider settling cross-border transactions in their respective currencies instead of the dollar.

    “Why is it necessary for us to buy things from Djibouti and pay in dollars? Why? There is no reason. And we are not against the US dollar, we just want to trade much more freely. Let us pay in US dollars what we are buying from the US,” said Dr Ruto.

    As countries have found themselves short of dollars, the global reserve currency, many of them have pushed for ways of bypassing the greenback in their cross-border trade.

    In Kenya, traders who buy maize from Uganda and Tanzania have not used the dollar to buy the staple in the past five months, said a source at a regional body that deals with cereals.

    For a long time, a Kenyan buyer would buy maize from a Ugandan seller in dollars. The Ugandan seller would then convert the currency into Ugandan shillings. This exposed the trader to the risk of exchange rate losses.

    “Everything—from transport, trading to invoice—used to be denominated in dollars,” said Gerald Masila, the CEO East African Grain Council.

    Cereal traders have now resorted to direct translation where, for example, a Kenyan trader buys Ugandan shillings in Kenya to pay a seller in Uganda.

 

Namibia engaging UK on visa rules

There have been no reports to the Namibian government of the country’s expatriates, particularly the Ovaherero, being harassed, stigmatized, or criminalized as trespassers and delinquents in the United Kingdom (UK).

However, international relations minister Netumbo Nandi-Ndaitwah said the ministry was only made aware of the potential of Namibian asylum seekers facing deportation from the UK.

Nandi-Ndaitwah told parliament last week her ministry has been engaging the British High Commission on the matter of the Namibian asylum seekers.

She said they are in the process of “negotiating the most amicable process that is in line with Namibian rules and regulations, as well as international instruments on the handling of asylum seekers”.

Nandi-Ndaitwah, who is also the deputy prime minister, was replying to queries from Landless People’s Movement (LPM) parliamentarian Bernadus Swartbooi.

Swartbooi asked whether the ministry is aware of cases of mistreatment and whether there have been talks to resolve threats of deportation of Namibians from the UK.

Swartbooi also enquired about reports that UK visa laws will change, requiring Namibians to possess visas as a prerequisite for entry into the UK.

Nandi-Ndatiwah said she met with British high commissioner Charles Moore in February, when he confirmed that the British Home Office reviews its visa regime every six months.

“To this end, several countries, including Namibia, that were previously exempt from visas will henceforth be required to have visas prior to arrival in the UK and Great Britain.

“He further informed me that the date of effect will be communicated once his parliament has taken a decision,” Nandi-Ndaitwah said.

She said a virtual meeting with her British counterpart, scheduled for 7 March, was postponed.

“Up to now, as I am talking to you, they have not come back to us. Nevertheless, on our side, we keep engaging them to understand and inform them that, as members of the United Nations, they are obliged to comply with the international instruments that govern asylum seekers,” she said.

Also, the Ministry of International Relations and Cooperation has not been officially informed whether the bill has indeed been passed in the British parliament.

Swartbooi questioned the decision to change British visa requirements, particularly given that Namibia is a member of the Commonwealth.

The LPM leader queried whether the Namibian government has equally contemplated implementing visa requirements for British citizens entering Namibia.

According to Nandi-Ndaitwah, the British were concerned about the influx of asylum seekers, some of whom abused their stay in the country.

“They have their own immigration laws. Even in Namibia, we have our own immigration laws. And if a situation occurs where any citizen of any country violates that immigration law, we also do the same,” she said.

After learning about the plans to change visa regulations, Nandi-Ndaitwah said the government formed a committee that would travel to the UK if the government decided to deport Namibians.

She said the aim of the committee was to “fully understand what the conditions were that led them to take such a decision”.

Last month, Moore expressed concern over the large number of asylum seekers attempting to enter the UK.

He had said his office was working with the Namibian government to try to find a solution to the matter.

“No decision has been taken yet, but we are still quite concerned by the number of asylum-seeking opportunities to the UK,” he said.

UN warns of press freedom crackdown in Tunisia

The United Nations voiced deep concern Friday that the crackdown on freedoms in Tunisia was now targeting journalists, as it urged the Tunisian authorities to change course.

UN human rights chief Volker Turk said vague legislation was being used to criminalise independent journalism and stifle criticism of the authorities.

“It is troubling to see Tunisia, a country that once held so much hope, regressing and losing the human rights gains of the last decade,” he said in a statement.

“The crackdown earlier this year against judges, politicians, labour leaders, businesspeople and civil society actors has now spread to target independent journalists, who are increasingly being harassed and stopped from doing their work.

“I urge Tunisia to change course.”

A spokeswoman said Tunis has accepted in principle Turk’s request for a visit to the north African country, but a date has yet to be arranged.

Over the last three months, the Tunisian authorities have on five occasions used vaguely-worded legislation to question, arrest and convict six journalists, Turk’s OHCHR office said.

Since July 2021, the UN Human Rights Office in Tunisia has documented 21 cases of alleged human rights violations against journalists, including prosecutions before civilian and military courts.

“There are grounds to believe that these prosecutions were initiated to counter public criticism against the president of the republic or the authorities,” an OHCHR spokeswoman said.

Zied El Heni, 59, a Tunisian journalist arrested after criticising a law that criminalises insulting the head of state was released on Thursday.

Non-governmental organisations have reported a decline in press freedom in Tunisia since President Kais Saied launched a power grab in July 2021.

In May, journalists staged a protest to denounce the Tunisian government’s “repressive” policy, which they say uses the judicial system to intimidate and subjugate the media.

Turk urged the Tunisian authorities to respect due process and fair trial standards in all proceedings, stop trying civilians before military courts, and release all those detained for exercising their right to seek, receive and impart information.

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