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Zawya
a day ago
- Business
- Zawya
Africa loses $120bln to graft
Africa loses up to $120 billion each year to corruption, a crisis that continues to undermine the continent's economic independence and development ambitions. According to the African Union Advisory Board Against Corruption (AUABC), these losses are particularly devastating given that a large portion of the funds lost to corruption are borrowed from international lenders to support development and stabilise fragile economies. AUABC vice-chairperson Yvonne Mutepuka said: 'The irony is painful, because we borrow heavily to finance development, only for that money to be lost through corruption. This vicious cycle keeps African nations dependent and underdeveloped.'Despite ongoing anti-corruption campaigns in African countries, Mutepuka noted that the challenge remains entrenched, requiring renewed commitment, stronger institutions and political will. She was addressing the AUABC 49th Ordinary Session in Arusha on Tuesday. The session also marked the swearing-in of a new board. Her remarks were echoed by findings from the United Nations Office on Drugs and Crime (UNODC), which show that corruption is the leading obstacle to Africa's economic and social development, consuming nearly 25 percent of the continent's GDP annually. The fight against corruption on the continent is guided by the African Union Convention on Preventing and Combating Corruption (AUCPCC), which provides a legal framework for member states. Of the 54 African Union (AU) member states, 50 have signed the convention, and 49 have ratified it. But only 12 countries have undergone national anti-corruption reviews. Mutepuka urged the new board to intensify peer review and engage the four countries that have yet to sign the convention.'There is no time to waste, these reviews are crucial in helping countries identify gaps in their legal systems and take corrective action,' she said. 'Go out and inform governments that enormous gains await those who fully embrace the AU Convention. But, above all, we need governments that are genuinely committed to building robust anti-corruption institutions.'Outgoing chairperson Seynabou Diakhate warned that declaring 'total victory' might be ambitious, 'but that is our goal.' Donald Deya, CEO of the Pan African Lawyers Union, stated that internal revenues would be sufficient for Africa's development needs if not for corruption.'Without corruption, African countries wouldn't need to borrow anything, but we lose so much to graft that we are forced to seek loans, which only fuels dependency,' he said. The African Development Bank (AfDB) in 2024 reported that Africa's external debt grew from $1.12 trillion in 2022 to $1.152 trillion by the end of 2023. In 2024 alone, the continent spent $102.59 billion on debt repayments, according to a report by the ONE Campaign, an international NGO advocating for an end to extreme poverty. The report warns that this growing debt burden severely threatens Africa's ability to achieve the Sustainable Development Goals (SDGs), particularly in sectors like health, education, and infrastructure.
Zawya
12-06-2025
- Business
- Zawya
EAC ministers order probe on products requiring special tax treatment
East African Community (EAC) ministers have directed the Secretariat to institute measures aimed at abolishing special tax treatment for certain goods in the region in the next 12 months. The EAC Sectoral Council of the Ministers of Trade, Industry, Finance and Investment (SCTIFI) wants an investigation to ascertain the availability of these products in the region and the justification for the special treatment. They say applications for preferential tax treatment by member states must be backed by comprehensive and valid justification. This is in the latest attempt by the regional ministers to deal with persistent stays of application requests by member states, which are believed to be watering down the objectives of common external tariff (CET), including enhancing regional competitiveness and industrialisation. In a meeting held in Arusha May 26-30, the Council directed partner states to submit a list of not more than five products each, which are prone to preferential tax treatment and are available in sufficient quantities in the region by June 30, 2025. Read: EAC ministers suspend new levies on high-risk products pending reviewThe EAC Secretariat and the partner states are expected to undertake a regional study to establish the availability of the products manufactured within the region by the end of June 2026.'The meeting emphasised the need for justification for the requested stays prior to approval,' says according to the report of the meeting. The meeting noted that, despite the comprehensive review of the EAC Common External Tariff in May 2022 aimed at enhancing regional industrialisation, value addition and competitiveness, partner states have continued to submit numerous requests for stays of application on the same tariff lines.'This persistent trend suggests that national interests are still taking precedence over the agreed regional objectives, thereby undermining the uniform application and effectiveness of the revised CET,' says the report. Currently, there are 1,956 tariff lines under stays (22 percent of CET), with potential increase to over 2,000 lines (30 percent of CET).'This upward trajectory raises concerns and undermines the EAC CET,' the Council warns. They noted that some stays of applications were found to have minimal traffic, with transactions as low as $200. The EAC Council of Ministers, in April 2014, decided to do away with stays of applications and directed that a phase out proposal be developed, which was subsequently adopted by the Sectoral Council of the Ministers of Trade, Industry, Finance and Investment in May that year. But the directive is yet to be implemented, as countries still pursue this window of stays of applications and tax exemptions on various sensitive goods. It is argued that the excessive protection granted to sensitive goods should be removed and the products opened to competition, as most member states have abused this window. The EAC Council had agreed that the removal of stays of applications and duty remission inform the comprehensive review of tariffs. According to the ministers, the special tax treatment accorded to sensitive items is not anchored in the EAC Customs law and is stifling intra-regional trade. The ministers have proposed harmonisation of specific duty rates between partner states and verification of products where countries have sufficient production. In last year's budget, EAC ministers of finance agreed on duty remissions on raw materials and inputs used by local manufacturers to facilitate domestic production. Kenya was granted an extension of the current stay of application to import rice at a duty rate 35 percent or $200 per metric tonne, whichever is higher, for one year, instead of the EAC rate of 75 percent or $345 per metric tonne, whichever is higher, in order to meet local demand and enhance food security. It was also allowed to import wheat at a duty rate of 10 percent, instead of 35 percent for one year under the EAC Duty Remission Scheme. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
10-06-2025
- Business
- Zawya
Uganda Consulate Arusha Takes Kili Fair 2025 by Storm
The vast grounds of the Magereza grounds in Arusha, shook to the beat of Uganda's Crane performers at the Kilifair 2025, an international tourism trade fair, held annually at the foot of Mt. Kilimanjaro, as the Uganda Consulate in Arusha marked its debut participation in the presitigious event with a 'Uganda Day' under the theme 'Unveiling the Hidden Pearl of Africa. 'The Uganda Day, was organized in association with the Uganda High Commission, Tanzania the Ministry of Tourism, Wildlife and Antiquities, the Uganda Wildlife Authority, Uganda Airlines and the Tusker Lite Rwenzori Marathon. Kilifair has established itself as a key tourism industry gathering in East Africa. The fair brings together providers from a wide range of sectors, such as safari companies, hotels, lodges, airlines, transport businesses, technology service providers, as well as cultural and artisanal stakeholders. The Uganda Day boasted an immersive experience of the 5 senses with the Consulate offering the excited crowd, rousing drum beats of the Crane Performers dynamic entertainment with Cultural Ugandan Music and dance, a taste of Ugandan Coffee, the iconic Uganda Waragi and crispy fresh Rolex wraps prepared on site. Entertainment included a fire-eating sensation and Mountain Gorilla Mascots dancing to catchy Ugandan tunes. Addressing the gathering of excited revelers, Consul-General Amb. Anne Katusiime Kageye emphasized the Government's commitment to promoting Uganda's rich and diverse tourism potential to our brothers and sisters in Tanzania and the broader East African region. 'We aim not only to showcase Uganda's unique offerings but also to champion the idea of complementarity—recognizing that together, Uganda and Tanzania can offer a seamless and world-class tourism experience to global travellers,' she said. Amb. Kageye took the opportunity to invite the participants to register for the Rwenzori Activation Run, scheduled 8th June 2025, as a build-up to the 4th Edition of the Tusker Lite Rwenzori Marathon, set to take place on 23rd August in Kasese, Uganda. The Ministry of Foreign Affairs is a strategic partner of the Rwenzori Marathon, leveraging its Missions abroad to attract runners to participate and build an international identity for this internationally certified route. Head of the Regional Economic Cooperation Amb. Richard Kabonero hailed the East African Community Countries for agreeing to host a pavilion together in the spirit of Regional Cooperation. He encouraged tour operators to network and design add-ons to their packages to ensure that visitors explore the entire region and experience what it has to offer. Rwenzori Marathon group chairman and Great Lakes Safaris CEO Amos Wekesa expressed gratitude to both the Uganda High Commission in Dar-Es-Salaam and the Consulate in Arusha for their aggressive promotion of the Rwenzori Marathon. Recognizing the invaluable contribution of Uganda's Embassies in showcasing Uganda's beauty to the world. 'The commitment by Uganda's Embassies to market our country is unmatched,' declared Wekesa. Uganda Airlines Country Manager Ms. Lucy Ismail held a stimulating quiz about the Airline's routes in Tanzania and beyond with lucky winners walking away with promotional gifts by the Airline and 2 nd Queen Little Miss Wildlife and Little Hands Go Green Ambassador Talia Birungi thrilled the crowd with a rousing speech about wildlife sustainability. The highlight of the morning event was a Raffle draw, which offered four winners Gorilla and Chimpanzee Trekking Permits courtesy of the UWA. In addition to trekking permits, Ms. Caroline Wairimu Mwai and Ms. Ruth Wakio Nyamasyo won complimentary accommodation at Crystal Lodge-Nkuringo, Ms. Nuru Abubakar Mohdar. who won complimentary accommodation from Nkuringo Gorilla Lodges in Bwindi and Ms. Rachel Daud Kazimoto who won a stay at Crater Safari Lodge, Bwindi The day was crowned by a networking gala dinner hosted at the Uganda Consulate in Arusha. File Attachment Uganda takes Arusha by (123.77 KB) Distributed by APO Group on behalf of The Republic of Uganda - Ministry of Foreign Affairs.
Zawya
09-06-2025
- Business
- Zawya
EAC ministers suspend new levies on high-risk products pending review
East African Community finance ministers have suspended the implementation of new levies on lubricating oils, aluminium bars and active yeast, which are considered high-risk products, and referred the taxation proposal to the regional sectoral committee on customs for further analysis. The committee on customs is expected to report back to the finance ministers during the next pre-budget consultations meeting in May next year, according to the resolutions of the meeting by the EAC Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) held in Arusha, Tanzania, from 26-30 May. Read: EAC adopts new levies on 'high risk' products to curb unscrupulous tradersThe new rates had been planned to take effect from July 1 this year.'It was agreed that the matter be referred to the Sectoral Committee on Customs for further technical analysis and that the proposed specific duties be deferred pending the outcome of this review,' the report of the meeting states. During its 45th meeting held in November last year, SCTIFI adopted $0.46 per litre as a specific duty rate on lubricating oils so that the rate will be 25 percent or the $0.46, whichever is higher, and $700 per tonne as a specific duty rate on active yeast so that the rate will be 25 percent or the $700, whichever is higher. It also adopted $690 per tonne as a specific duty rate on aluminium bars, rods and profiles so that the rate will be 25 percent or the $ 690, whichever is higher. These duties followed a directive by the ministers of finance during the pre-budget consultations in May 2023 that required member states and the EAC Secretariat to identify high-risk products and assign a specific duty rate to address issues related to under-invoicing and undervaluation. The suspension of the proposed rates is expected to allow Tanzania more time to complete consultations with the relevant stakeholders on the proposed rates. It is also expected to allow the sectoral committee on customs to relook at additional factors such as whether the products are imported from the same country or countries of export and whether the imports occur at or about the same period. Read: Slow progress on harmonising standards affecting EAC tradeDuring the pre-budget consultations last month, Tanzania said that national consultations with relevant stakeholders had been concluded and highlighted the need to address a few outstanding issues before adoption of the proposed specific duty rates. The meeting agreed that a re-analysis should be undertaken to determine the identical nature of the products based on a number of parameters, such as the percentage of aluminium content relative to other metals in the alloy, the proportion of base oil relative to other additives or constituents (lubricating oils) and the material composition of the product (Active yeast). The finance ministers also noted that additional factors such as whether the products are imported from the same country of export and whether the imports occur at or about the same period should be considered. Customs valuation is a major feature and concern of modern customs tariff systems since it is important for assessment of customs duties for purposes of generating revenues or as a means of encouraging and protecting domestic industries. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. ( James Anyanzwa
Zawya
05-06-2025
- Business
- Zawya
Eala gets $660,690 loan, convenes virtually to debate budget
The East African Legislative Assembly (Eala) has resumed its sittings — but this time virtually — to discuss the supplementary budget for the financial year 2024/25 and the draft budget estimates for the 2025/26 fiscal year. Eala traditionally convenes at the East African Community (EAC) headquarters in Arusha, but has opted for virtual sessions due to financial constraints. This was made possible through a loan of $660,690, sourced from EAC institutions and affiliated agencies. Both Bills were forwarded to the General Purpose Committee for detailed scrutiny. Ms Askul tabled two other Bills — the EAC Seed and Plant Varieties Bill, 2025 and the EAC Customs Management (Amendment) Bill, 2025. These were referred to the Committee on Agriculture, Tourism and Natural Resources and the Committee on Communication, Trade and Investment, respectively. The reconvening of the assembly under such challenging circumstances was hailed as a significant institutional achievement, given the severe financial difficulties facing the bloc. On April 29, 2025, Eala members agreed to suspend all budgetary deliberations until the Council of Ministers convened and released the necessary funds for the budget's review and approval. This prompted the council to hold an emergency session on May 29, 2025, to address the assembly's resolutions. In that meeting, the council invoked Rule 10(5a) allowing the assembly to hold virtual sittings, and resolved to borrow $660,690 to support the budget approval process. Cash crunchThe financial crisis within the EAC is largely blamed on delayed or non-payment of financial contributions by some partner states. Each of the eight-member states is expected to contribute $7 million annually toward the community's operational budget. As of April 2025, only the founding members, Uganda, Tanzania and Kenya, had fully met their financial obligations. Rwanda had paid 75 percent, Somalia 50 percent, Burundi 19 percent, DR Congo 14 percent, and South Sudan seven percent. The EAC's total budget for the financial year 2024/25 stands at $112.98 million, of which $67.79 million (61 percent) is expected from member states and internal revenue, while the remaining $43.94 million is projected to come from development partners. EACJ president Justice Nestor Kayobera said that budget constraints have severely hampered the court's operations, which are essential for upholding the rule of law and resolving disputes within the bloc.'We have more than 260 pending cases, largely due to the unavailability of judges on a full time basis,' he said. 'They serve under short-term contracts, which have resulted in significant case backlogs. This is a major challenge.' © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
