Friday, March 16, 2012

Remove trade barriers, Kibaki urges EAC ministers


East Africa Community Musa Sirma (right) and EAC secretary general Richard Sezibera address a news conference at Laico Regency March 16, 2012. President Kibaki urged the EAC ministers to urgently remove barriers that hinder the free movement of people and goods within the region. PHOEBE OKALL

East Africa Community Musa Sirma (right) and EAC secretary general Richard Sezibera address a news conference at Laico Regency March 16, 2012. President Kibaki urged the EAC ministers to urgently remove barriers that hinder the free movement of people and goods within the region. PHOEBE OKALL 
President Kibaki has urged East Africa Community ministers to urgently remove barriers that hinder the free movement of people and goods within the region.
President Kibaki noted that some of the non-tariff barriers were so cumbersome that they inhibited intra-EAC trade.
"We cannot fully boast of regional integration when our people still cannot interact freely and do business without restrictions,” President Kibaki said Friday during a meeting with EAC ministers, who paid him a courtesy call at his Harambee House office.
The Head of State welcomed the decision that Kenyan trucks entering Tanzania will no longer be charged Sh16,000.

Non-bank primary dealers set for June in Uganda

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Mutebile pointed out that demand for bonds and bills was more than twice that recorded in the years 2009 to 2011

By Samuel Sanya
THE central bank has announced a wave of reforms that will see non-bank institutions participate directly in Uganda’s thriving debt market come June this year.
Yields on Uganda’s three year treasury instruments have risen as high as 21% as the Bank of Uganda (BoU) battles high inflation through reducing money in circulation.
“The enhanced Central Securities Depository system is expected to go live by June this year….the debt reforms that will lead to the introduction of non-bank broker/dealers in the debt market are on-going,” said Emanuel Mutebile the BoU governor.
He was speaking at the Primary Dealer of the year award ceremony in Kampala where Stanbic Bank Uganda was pronounced winner for the year 2011. 
Mutebile pointed out that demand for bonds and bills was more than twice that recorded in the years 2009 to 2011 on the primary market with demand on the secondary market growing by 35%.
Uganda currently uses a primary dealer system where six banks are authorized to compete for treasury instruments from the central bank, later reselling the same to the public on the secondary market.
The Central bank intends to introduce a bond calendar to improve predictability and regularize debt issuance, in addition to upgrades of the banks Reuters system, website and Central Securities Depository system.
The changes will see the introduction of e-bidding, automated repo auctions, on-line secondary market trading, to enhance transparency while minimizing price distortions in the market.
Stephen Kaboyo, the BoU director for financial markets said that the reforms will enable investors to plan their cash flows better and diversify their investments.
He noted that brokerage firms, and pension funds have already expressed interest in joining the six banks in the primary dealer system.
Philip Odera, the Stanbic bank boss hailed the changes saying that reforms will widen and deepen participation in Uganda’s debt market, strengthening the economy in all ways.
http://www.newvision.co.ug/news/629499-non-bank-primary-dealers-set-for-june.html

Wednesday, March 14, 2012

Private sector keen on EAC trade

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Workers prepare to load a cargo container on a ferry at Port Bell in Luzira. EAC recently launched a border management project to cut the cost of doing business in the region

By David Ssempijja
WITH the current hindrances to the flow of trade within the East African Community (EAC), there is a need to strengthen partnerships between private and public sectors to improve the region’s investment climate, a regional forum has observed.
A two-day investment forum held last week at Silver Springs Hotel in Kampala to define a regional framework for investment incentives for the EAC, attributed the persistent barriers to trade to the absence of a strong public-private partnership in trade promotion initiatives.
The chairman of the Uganda Allied Chamber of Commerce, Industry and Agriculture (UACCIA), Chris Kyereere, told a press conference that the forum resolved to lobby EAC governments to promote the presence of the private sector arm in dealing with issues of trade facilitation.
Facilitating trade is about streamlining and simplifying international trade procedures to allow easier flow of goods national and international levels.
The private sector contends that there are overwhelming trade related tasks that the EAC governments cannot effectively handle in isolation of the private sector.
“We need to see governments getting more involved in giving fair contracts to private companies, ensuring that firms born within the EAC are prioritised over those from overseas to build the capacity of those locally established,” Kyereere said.
Amos Tindyebwa, an international consultant working with the Trade and Business Development Centre, noted that the private sector development strategy adopted in 2006 by the EAC had not adequately taken the public- private partnership approach into account to improve the region’s investment climate.