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PUBLISHED ON March 9th, 2020

EAC boss: Journey to federation has started

The re-launched East African Community celebrated its 20th anniversary in November last year. The EAC Secretary-General Liberat Mfumukeko spoke to Luke Anami about the bloc’s journey over the past two decades.

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What are priority areas for the EAC?

Priority areas include consolidation of the Single Customs Territory and promotion of intra and extra-EAC trade; development of regional infrastructure; enhancement of free movement of persons, labour and capital as envisaged under the Common Market; enhancement of regional industrial development, agricultural value addition, skills development, technological advancement and innovation; Implementation of the roadmap towards the EAC Monetary Union; Promotion of regional peace, security and good governance, and constitution-making for the EAC Political Confederation and improvement of performance management at the EAC institutions.

What is the status of Partner States’ contributions to the bloc’s budget?

As at February 12, 57 per cent of the contributions towards the main Budget for the 2019/2020 financial year have been disbursed with Uganda having paid 100 per cent, Kenya 98 per cent, Rwanda 86 per cent and Tanzania 61 per cent.

Burundi and South Sudan are still settling arrears for the past financial year before contributing to the current. Total contributions so far by the six partner states for the 2019/2020 financial year stand at $56,232,258.

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What challenges is the Secretariat facing following delayed disbursements from partner states?

Sovereign states do not fail in their financial obligations, hence a possibility for the Secretariat to enjoy a credit facility from its suppliers of goods and services.

In very few instances, meetings have been postponed, but held within the following month. The execution of approved budgets has also been enabled by measures put in place to ensure efficiency, effectiveness and economy in all the operations.

The EAC is yet to implement majority of its administrative and policy decisions on its four pillars namely the Customs Union, Monetary Union and Political Federation.

The EAC has recorded numerous achievements.

The Customs Union Protocol has since been transformed into a Single Customs Territory, which has revolutionised cross-border trade and eased the region’s trade with the outside world.

The Common Market Protocol has brought about increased movement across national borders, signing of Mutual Recognition Agreements among various professions and boosted cross-border investment.

Major infrastructure projects such as railways, roads and One Stop Border Posts have either been completed or are currently underway to facilitate intra-regional trade and open up the region for investment.

In the health sector, EAC Partner States have expanded the capacity for delivery of high quality health services, training and research through Regional Centres of Excellence (RCoE).

Under the Monetary Union Protocol, the relevant institutions are being set up to ensure the region transitions to a single currency in four years’ time. The East African Legislative Assembly passed the East African Statistic Bureau Bill and the East African Monetary Institute Bill, both of which have been assented to by the Heads of State.

In May 2019, the Council of Ministers approved the EAC Domestic Tax Harmonisation Policy. Proper implementation of this policy will promote cross-border trade and more investments in the region. The Community has embarked on a constitution-making process for the EAC Political Confederation.

The EAC Treaty, which seeks consensus and demands that each Head of State must be physically present for a full Summit, has been blamed for delaying decision making. Are there plans to review some of these requirements?

It is up to partner states to determine if decision making by consensus needs to be revisited. The Treaty provides that if a member of the Summit is unable to attend and it is not convenient to postpone the meeting, that member may, after consultation with other members of the Summit, appoint a government minister to attend the meeting.

What is the current status of the EAC Common Market Protocol?

Implementation of the Protocol is progressive. Partner states are in the processes of approximating their national laws and harmonising national policies and systems for implementing the Protocol.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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