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By VINCENT OWINO

East African Community (EAC) member states are increasingly trading with one another and with other African countries, while reduce their trade with Europe, Asia, and other parts of the world, shaping the intra-Africa trade dream projected to boost commerce and livelihoods on the continent.

The seven countries in the region (as of last year) increased their trade with the rest of Africa by $584.6 million to $4.3 billion in the fourth quarter of 2023, a 14 percent rise compared with a similar period in 2022, latest data by the EAC Secretariat shows.

Cross-border trade within the region also recorded a 12 percent rise, from the previous year’s $2.6 billion to $2.9 billion in last year’s Quarter 4, an indication of rising trade within the region over the year.

During Quarter 3, intra-EAC trade rose 20 percent to $3.2 billion, the highest level recorded within the region in over two years. Similarly, trade with the rest of Africa crossed the $5 billion mark for the first time in two years.

Read: East Africa weathers storm to record growth in FDI

But the region’s trade with the European Union (EU) countries, which traditionally account for about 10 percent of EAC’s total trade, recorded a drop of 14 percent, from $2.04 billion in the three months to December 2022, to $1.7 billion in the last quarter of 2023.

This is a signal of improving trade integration on the continent, coming at a time when governments are pushing for increased implementation of the African Continental Free Trade Area, which is projected to lift about 65 million Africans from extreme poverty.

Top EAC partners that saw a sharp decline in their dealings with the region is Belgium, whose trade dropped by 45 percent to $188 million in Quarter 4, 2023, from $263 million the previous year.

The United States, which is the tenth leading trade partner with East Africa, recorded a 19 percent drop in its business dealings with the region, from $200 million in the October-December period in 2022 to $161 million last year.

Germany, Italy, and Switzerland saw their trade with the region drop by 12 percent, 2 percent, and 23 percent respectively. The drop pushed Germany out of the rank of the 10 leading trade partners for the region.

In each of these countries, imports and exports registered a general decline, except in the case of Germany, which bought more of East African exports in the period, but sold much less of their own products in the region.

A similar trend was observed in EAC’s trade with leading Asian producers, Pakistan, Malaysia, China, Vietnam, Indonesia, and Korea.

While imports from China – the leading source for East African countries – improved, exports to the Asian powerhouse slowed by 12 percent, an indication that regional businesses are finding markets elsewhere.

Exports to Malaysia, which is the fourth leading market for East African goods, also posted a 17 percent drop in in the period, even though imports from the country rose by 47 percent.

Read: Kenya posts $1.2bn surplus in trade with Africa

Amid the decline in trade with Europe, Asia, and the US, some African countries have emerged as important trade partners for the EAC.

Trade between East Africa and the Economic Community of West African States (Ecowas), for instance, more than tripled to $199.6 million in October-December last year, from $61 million in 2022, raising its share in EAC’s total trade from 0.3 percent to 1 percent.

Similarly, trade with the Southern African Development Community (SADC) saw an improvement in the period, rising by 40 percent to 2.7 billion, improving the share in total EAC trade from 9.8 percent to 12.8 percent.

South Africa is the leading trade partner for EAC countries on the continent, with the trade between them rising by 26 percent to hit $838 million, up from $664 million in the last quarter of 2022.

John Bosco Kalisa, CEO of the East African Business Council, says improvement of EAC’s intra-Africa trade at the expense of Europe, Asia, and the US is a result of improving political will to eliminate trade barriers within the region and trade more within.

“We learnt a lesson from the global shocks; Covid-19, Russia-Ukraine war, and the MidEast disruptions, which have all impacted our trade and investments,” Mr Kalisa told The EastAfrican.

“One shock absorber is to build regional production capabilities, as well as at national levels, under the auspices of Buy East Africa Build East Africa initiative.”

Mr Kalisa, who heads the regional private sector lobby, argues that there are concerted efforts by governments in the region to promote regional value chains, and eliminate barriers to trade with one another in the region and with others across the continent.

Read: NTBs cost region $16m, threatening intra-EAC trade

“That’s why now we can see there is a growth in our trade within the continent, as opposed to our trade with the EU, or China,” he said.

Previously, businesses in the region have been blamed for taking advantage of preferential trade agreements with countries outside the continent than free trade agreements within their local regional trading blocs.

A study done by the United Nations Conference on Trade and Development (UNCTAD) and the Common Market for Eastern and Southern Africa (Comesa) last year found that African countries generally take advantage of PTAs with the US, Canada, EU, and Japan, more than they utilise FTAs within their regional economic communities.

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Dodoma — PRIME Minister Kassim Majaliwa has informed the National Assembly that the tropical cyclone Hidaya that hit the coastal areas of the country last weekend, has claimed the lives of five people, leaving seven others injured and 7, 027 households with 18,862 people affected.

He said the government will continue providing humanitarian aid to persons who have been affected by the tropical cyclone Hidaya in the areas of Kilwa, Mafia, Rufiji and Ifakara.

According to him, the government’s support has engaged all sectoral ministries, Regional and District Commissioners offices, Disaster Management Committee as well as all key important stakeholders.

The premier issued the statement in the House yesterday, when issuing a statement over the cyclone Hidaya disaster which occurred on May 3rd this year in the areas surrounded by the Indian Ocean.

According to him, some of the steps taken in the Kilwa District included an exercise to rescue Tanzanians, where about 4,080 people have so far been saved in different areas.

“Another step taken is to rehabilitate roads infrastructure around the main Lindi – Dar es Salaam Road whereas the Tanzania National Roads Agency (TANROADS) officials are on the site and continuing with their responsibilities, and efforts are being made to bring back to order the Somanga – Mtama bridge so that vehicles that are currently stuck continue with their journey,” he noted.

The Prime Minister said that further steps taken in Rufiji and Kibiti districts include providing psychological services and treating the posttraumatic stress disorders to 1,941 affected persons (1,501 Kibiti and 440 Rufiji) as well as providing sanitation education, children defence and security protection to 1,023 children (583 Kibiti and 440 Rufiji).

In Mafia District, Mr Majaliwa noted, the steps taken were reuniting families of the affected persons and their neighbours so that they get temporary shelter especially the families whose houses have been surrounded by water.

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In Kilwa District, the premier said that the government had established temporary shelter of the affected families to primary schools, whereas currently citizens were being camped at three different centres of Mchakama, Ruhatwe and Ndende Primary Schools.

“Also, he said, food had been provided to the affected families and that the disaster management team in Kilwa District was being strengthened including forming small sub-committees in efforts to increase efficiency in coordination and supervision of the disaster that occurred,” he said.

In another development, Mr Majaliwa said that rescue missions had been heightened by taking a Fiber Boat via the Fire and Rescue Force, where the affected persons were being ferried to Somanga town.

“They are healthy and services are being provided timely,” he said, adding that in schools that had been surrounded by water, 92 Form Six students had been transferred to another examination centre of FDC. Earlier this week, President Samia Suluhu Hassan directed the National Disaster Management Committee to deliver emergency services to areas affected by tropical Cyclone Hidaya.

On May 3rd this year, the country experienced a cyclone called ‘Hidaya’ due to low pressure (bad system), which was associated with strong winds and heavy rainfall.

In Mtwara Region, people were rendered homeless after their houses were adversely destroyed by the disaster. Until now in Mtwara Municipality, the government is still taking measures to reunite the affected families.

Source: allafrica.com

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By THE CITIZEN

Tanzania’s government on Thursday announced that the death toll has risen to 166 with five more people dead and seven others injured, following Cyclone Hidaya sweeping through the country’s south-eastern coast on the Indian Ocean.

Cyclone Hidaya landed on Tanzania’s coastline on May 4, 2024, adversely affecting Mtwara, Lindi, Coast and Morogoro regions.

The disaster affected 18,862 individuals, destroyed 678 houses, damaged 877 houses and submerged 543 houses, according to Prime Minister Kassim Majaliwa in a statement he issued in parliament on Thursday.

“Effects of the cyclone have been witnessed on infrastructure as some roads and bridges have been swept away by the heavy rains, with electric power poles also destroyed,” he said.

Read: Tanzania calls for precaution over Cyclone Hidaya

“Social service structures such as schools and health facilities have also been destroyed,” he added.

He further said Cyclone Hidaya has brought economic activities such as fishing, farming and businesses to a halt.

Majaliwa said Lindi-Dar es Salaam highway has been disconnected at a 200-metre section in Somanga.

Read: Tanzania closes major highway after floods wash away bridges

“It is estimated that around 2,534 people are stranded. Some passengers and vehicles have returned to Lindi town; others have travelled through the Songea route to Dar es Salaam; while others have returned to Dar es Salaam from Somanga,” said Majaliwa.

Record rain levels

Majaliwa said the weather stations in Kilwa and Mtwara recorded 316 millimetres and 99 millimetres of rain levels respectively, which is are record levels recorded in May, as compared to 96.6 millimetres and 54 millimetres normal rainfall levels.

“Under normal circumstances, the 316 millimetres of rainfall recorded in Kilwa within 36 hours is equivalent to three years’ worth of rainfall for May, specifically for 2024, 2025 and 2026,” he said.

He said the government is assessing the situation, including damaged electrical infrastructure, repairing roads and constructing temporary bridges.

Majaliwa issued eight directives on disasters management to Tanzania National Roads Agency (Tanroads), Tanzania Rural and Urban Roads Agency (Tarura), and Tanzania Electric Supply Company (Tanesco).

He also directed disaster management committees to ensure that aid and humanitarian assistance reach respective disaster victims.

Additional reporting by Xinhua

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