The collapse of the first East African Community in 1977 killed a dream that had taken more than 15 years to actualize. The breakup of the bloc which was formed in 1967 was occasioned by differing political and economic ideologies. That was then.
Today the world is witnessing the re-emergence of the EAC driven by the Kenya and Tanzania who were blamed for the collapse of the original bloc. But can the two nations succeed where they failed in the past.
From the start, the first East African Community was meant to fail, it was not sculptured to adapt to the changing trends. It is said that the EAC bloc was formed to counter the influence of colonialists who were not ceding power after years of dominance.
After independence individual countries got busy consolidating power, giving affairs of the bloc less prominence. The then President for Kenya Mzee Jomo Kenyatta was intent on making sure that the country stuck to capitalism.
Tanzania on the other hand championed for Ujamaa, a major African socialist policy. A clash of ideologies was imminent. 1977 the EAC was dissolved and Kenya and Tanzania ended diplomatic ties only to re-establish them in 1983.
The next 23 years, Kenya, Uganda and Tanzania would try to revive the bloc. In July 2000, Tanzania and Kenya along with Uganda reestablished the EAC. However, the Kenya and Tanzania tension lingered on even with the new bloc. According to policy analyst Dr. Kerret Mutua, the differences between the two countries was more imagined than real.
Although the two countries have differed on some issues, there has been a lot of behind the scene negotiations to try and bring make their relationship according to economic analyst Ally Khan Saatchu.
Last year, Tanzania became the largest export destination of Kenyan goods within East Africa accounting for goods worth 48 billion shillings, up from 39 billion shillings in 2011.
It is not yet clear how the thawing of relations between Kenya and Tanzania will unsettle the rest of EAC member states. However, Dr Kerrets says that when all EAC member states are in harmony, growth will be accelerated.
The just concluded three-day visit by Tanzanian President Jakaya Kikwete has aroused optimism that finally Kenya and Tanzania can now speak with one voice. However, Ally Khan Satchu says that Tanzania still has some home-work to do to ease cross-border trade.
Another issue that is cropping is the looming change of guard in Tanzania through the general elections slated later this month. Tanzania has largely completed its transition to a liberalized market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining.
Kirubi says that for Tanzania to benefit from the growing regional economy, it will have to make tough choices on trade. The jury is still out on whether Tanzania which is a member of the Southern Africa Development Community will have a softer spot for EAC over SADC.
Source: KBC

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