Arusha. The way has been cleared for the full integration of the Democratic Republic of the Congo (DRC) into the East African Community (EAC).
This follows a recently held capacity-building exercise for officials of one of the new entrants into the bloc on various legal frameworks for integration.
The frameworks include the Customs Union, a key pillar that established zero duty on goods and services traded within the region.
The Customs Union also agreed on Common External Tariff (CET), whereby imports from outside the bloc are subjected to the same tariff when sold to any EAC partner state.
Under the Customs Union, which has been in force since 2005, goods moving freely within the EAC must comply with the EAC Rules of Origin.
According to the EAC secretariat, sensitization of the DRC officials in Kampala also focused on the One Stop Border Post (OSBP) legal framework and procedures.
“The main objective of the capacity-building workshop is to sensitise the DRC officials on EAC regional integration,” the organ said in a statement.
The DRC, a giant country in the heart of Africa, was admitted as a seventh member of the bloc on March 29th, 2022.
The sensitization stint of the senior officials was preceded by a training of 32 DRC border officials at the upcoming Mahagi/Goli (OSBP) between the DRC and Uganda.
The five-day workshop was facilitated by Trade Mark Africa under the funding of the USAID-Economic Recovery and Reform Activity (ERRA) programme.
The training targeted DRC government officials from the ministries of Trade, EAC Affairs, Agriculture, Bureau of Standards, Immigration and Customs Administration.
Speaking during the workshop, a customs officer in charge of trade facilitation at the EAC secretariat, Evariste Munyampundu, underscored the importance of regional integration.
He specifically emphasised the role of OSBPs, saying they were key in setting business linkages that are crucial in enhancing intra-EAC trade.
He urged the DR Congo officials to familiarise themselves with the EAC instruments, including the EAC Treaty and the Customs Union Protocol.
Others are the Customs Management Act, the OSBP Act,the Non-Tariff Barriers (NBS) Act, and the EAC Standardisation, Quality Assurance, Metrology and Testing (SQMT) Act.
The latter Act ensured that products produced in the region were of the required quality so as to facilitate industrial development and trade.
The legal framework also aims to enhance consumer confidence and limit consumer exploitation by increasing the number of products that conform to established standards.
The SQMT Act is also intended to harmonise national and East African standards with international standards to reduce costs, enhance compliance, and develop trade opportunities.
This will, in the long run, increase opportunities for companies within the EAC to participate in international technology transfer and, in so doing, facilitate regional and international trade.
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Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
