the community - april 2015 ( official magazine of the east african community)

Issue No 24 | The cOMMUNITY | 1

T H E O F F I C I A L M A G A Z I N E O F T H E E A C

EAC@15: We are on course, but let’s do more

INFRASTRUCTURE: Why better logistics is critical

for Africa’s growth

IN FOCUS: Interest growing in region’s upstream petroleum sector

TRAVEL & TOURISM: East Africa: a true single

tourist destination

APRIL 2015ISSUE 24

15 yEArs LATEr:EAC still going strong

https://www.facebook.com/proudlyeastafrican https://twitter.com/jumuiyaThe opinions expressed by contributors are not necessarily those of the East African Community.

No part of this publication may be reproduced without the permission of the publisher.

Issue No 24 | The cOMMUNITY | 3 2 | The cOMMUNITY | Issue No 24

AROUND THE COMMUNITY

•H.E.JoachimGauckvisitsEAC

Headquarters

•Rt.HonKidegaelected

SpeakerofEALA

• EAC-USTradeInvestments

strengthened

•COMESA-EACinsupportof

peacefulElectionsinBurundi

CONTENTS

EDITORIAL TEAM

MANAGING EdITOr OwOrA OTHIENO

AssOCIATE EdITOr BOBI OdIkO

dEsIGN EdITOr AILEEN MALLyA

PHOTO EdITOr FLOrIAN MuTABAZI

EdITOr AILEEN MALLyA

suB EdITOr dAMArIs wAMBuI NyAGA

CONTrIBuTOrs H.E JAkAyA kIkwETE

MwAI kIBAkI AMB. dr. rICHArd sEZIBErA

AdAM IHuCHA AGNEs AssIMwE

ALICE MArO ANNAH NABAAsA BArry kAsHAMBO

BETTy MAINA BrENdA MuGAMBI

CLEMENT uwIrINGIyIMANA dr. CArLOs LOPEs EA BusINEss TIMEs

EdITH HONAN ELIAs BIryABArEMA FLOrIAN MuTABAZI FrANk MATsAErT

JAMEs kAruHANGA JOsEPH AkwIrI PETEr kINuTHIA

sALMA ALI NAssIr sAMuEL MPAMuGO

PHOTOGrAPHy & ILLusTrATIONs ABduL MukHTAr BOLyAO

dAvE PrOFFEr HEALTHPOvErTyACTION.OrG

JOHN NyAGAH JOJI kANGETHE JusTINO LuwALI

vICTOr vAN GAAsBEEk

CONTENTS

INFRASTRUCTURE 22 Deliveringdevelopment:why

betterlogisticsiscriticalforAfrica’s

growth

IN FOCUS 12 EAPCE’15

demonstratesgrowing

interestinregion’s

upstreampetroleum

sector

INTELLECTUAL CAPITAL 12 WhyEastAfricanintegration

needswiseinvestmentinour

intellectualcapital

EAC@15 14 Weareoncourse,

butlet’sdomore

TRAVEL & TOURISM FEATURE

YOUTH 24 TheEACIwant:oneyouth’s

perspective

REGULARS:

5 FROM THE SGChangingtowardsefficiency

andeffectiveness

44 COMMENTARY

• EACHadaSpirited2014,butWhatDoestheFutureHold?

• EastAfrica’sprosperityGap

• CanAfricamoveawayfromAidtomoretrade?

52 POLICY & STRATEGYASingleCustomsTerritoryto

enhanceregionaltrade

53CRASH COURSEAccessingEACJ

54EA SPEAKSTheYouIdeology:

IfYourBossIsCrazy–It’sOK!

ENVIRONMENT 8 ClimateSmart

Agriculture:WhytheEACis

interested

32 EbolafearsrippleacrosscontinenttohurtEastAfricantourism

34 TreasuresofEastAfrica

36Howexcessivethirstfor

tourists’dollarsiskillingcultural

tourism

37 EastAfrica:atruesingletouristdestination

39 ColorfulBurundi:MostKept

Secrets

back cover photo only elephants Should Wear Ivory

In2013,TheEACHeadsofStatelaunchedaSystemtofacilitateCustomsConnectivityinourRegion.InFebruarythisyear,theylaunchedaTelepresenceVideoConferencingSystemfortheCommunity.WhatIsaidin2013isastrueforthesystemtheylaunchedthen,astheonetheylaunchedthisyear.

OurHeadsofStatedidnotlaunchapieceoftechnology.Afterall,technologicaladvancesinthelastfewyearsareallowingmajorneuro-surgerybydoctorstobeperformedthousandsofkilometersfromtheirpatients.TheseadvancesallowhumanitytoexploretheouterregionsofourUniverse.

No,whattheylaunchedthen,andwhattheylaunchedthisyear,isnottechnology-itisanewwayofdoingbusiness.ItisaboutacceleratingtheEastAfricanintegrationagenda,throughfaster,smarter,morecosteffective,methods.Itisaboutamindsetforthefuture.

And,ouracceleratedintegrationdemandsofusamindsetchange.Thedemandsontimeandresourcesforintegrationwillinevitablyincrease.Wemustlearntodomorewithless-lesstime,lessmoney.

Forexample,TheEACOrgansandInstitutions,andPartnerStatesholdapproximately800meetingsandconsultationsannually,atanestimatedcostofUS$12million.

Thedemandsforconsultationswillonlyincreaseasweintegratemore.Throughtheuseofthisandothertechnolo-gies,a30%reductioninthephysicalmeetingswouldleadtoannualsavingsofUS$3.6million.Iamconvincedwecandoevenbetterthanjust30%.

Ofcoursethe12milliondoesnotincludeontimewastedanddelayssimplytravelingfromplacetoplacegiventheinefficienciesandchallengesofinfrastructureinourregion.Neitherdoesitincludethecostofresourcesnotoptimallyutilizedwhenmeetingsarepostponedduetodifficultiesoftravel,andcriticaldecisionsnottakenand/ordelayed.

Thisneedstochange.However,forchangetohappen,wemustallhaveaviewandadeterminationtodobetter,moreefficiently,withlessresources.

SowhattheEACHeadsofStatelaunchedinFebruaryisnottechnology-butamindsetChange.

IthanktheCouncilofMinistersforacceptingtotakeleadershipinimplementingtheChangetowardsefficiencyandeffectiveness.

IthankourPartner,TradeMarkEastAfrica,whosefinancialsupportmadetheacquisitionofthetechnologypossible.

Dr. Richard Sezibera Ambassador,SecretaryGeneral

FROM THE SG

changing towards efficiency and effectiveness

https://www.facebook.com/proudlyeastafrican https://twitter.com/jumuiya


h.e. Joachim Gauck visits eac headquarters

rt. hon kidega elected Speaker of eaLa

eac-US trade Investments strengthened

coMeSa - eac in support of peaceful elections in

burundi


AROUNDTHECOMMUNITY AROUNDTHECOMMUNITY

The President of the Federal Republic of Germany His

Excellency Joachim Gauck expressed his extreme happiness

being at the EAC Headquarters premises, a building he

describedas“wherethecommitmenttopeaceandfreedom,

todemocracyandtheruleoflaw,andtohumandignityand

humanityhasfoundahome”.

During his working visit to the EAC Headquarters, the

President cautioned the EAC to guard against setbacks,

skepticism,self-doubt,andpubliccriticismthatcouldderail

theintegrationprocessandurgedtheEACPartnerStatesto

borrowaleaffromtheEuropeanUnion’s(EU)book,saying

severalareasofthetwoblocswereincommon.

The German President called on the EAC Partner States to

considerfocusingonyouthwhowerebeneficiariesofmostof

theinitiativesanddecisionsbeingmadetoday.However,he

cautionedtheyouththatallianceoftheircountriesthough

good,theprocesswouldtaketimeandeffort,forsolutions

hadtobediscussed,negotiatedandachievedoverandover.

He said conflicts between countries ought to be resolved

peacefullyandthatreliablerulesfordealingwitheachother

ontheinternationalleveloughttobeinplace.“Humanrights

violations must not be tolerated. And those who violate

humanrightsmustbeheldtoaccount,”hesaid,stressing

thathumanrightsbelonged toeveryperson, regardlessof

origin,religion,orsocialormaterialstatus.

H.EGauckheldprivate jointdiscussionswiththeSecretary

General of the East African Community, Amb. Dr. Sezibera,

theSpeakeroftheEastAfricanLegislativeAssembly,Rt.Hon

DanielKidega;HisLordshiptheJudgePresidentoftheEast

AfricanCourtofJustice,Dr.EmmanuelUgirashebuja;andthe

Executiveandseniorstaffof theSecretariatandOrgansof

theCommunity.

On 19 December 2014, Rt. Hon Dan Fred Kidega became

thefourthSpeakeroftheEastAfricanLegislativeAssembly

(EALA).

RtHonKidega,41,isservingasaMemberofParliamentof

EastAfricanLegislationAssemblyforasecondstinthaving

beenaMemberinthe2ndEALA(2007-2012).

Hehasprior,beenaMemberofParliamentinUgandafora

periodoffive(5)years(2001-2006)representingtheyouth.

Rt. HonKidegahasbeenactive in theNational Resistance

Movement (NRM) –Ugandapolitics andwas amember of

President Yoweri Kaguta Museveni’s national campaign

taskforce in 2001, and the Party’s National Executive

Committee(NEC)member.

Rt.HonKidegahasalsoworkedasaPrivateSecretarytothe

Vice President of the Republic of Uganda. Prior to joining

legislativework,hewasayouth leaderatdifferent levels;

including being Chairman of the National Youth Council

(NYC),NationalRepresentativetotheCommonwealthYouth

Forum(AfricanRegion).Rt.HonKidegaisrememberedinhis

daysinschoolasastrongstudentactivist.

The Speaker is an entrepreneur and has been engaged in

thestruggleagainstHIV/AIDSandWomenEmpowermentin

Uganda.

Inhisacceptancespeech,Rt.Hon.Kidegapledgedtouphold

thedignityoftheHouseatalltimesandtoapplytheRules

withoutfearorfavour.“Ihavenodoubtweshalldeliver.I

willpickupfromwheremypredecessorsleftandcontinue

topromotethegoodidealsofourmandateofwideningand

deepeningtheintegrationprocess.Indoingso,Iwillgivethe

majoritytheirwaybutrespectandprotecttherightsofthe

minoritiesatalltimes”Rt.HonKidegasaid.

The East African Community (EAC) and the CommonMarketforEasternandSouthernAfrica(COMESA)havejointlylaunched Round-Tables for Consolidating Regional StabilitythroughPeacefulElectionsintheRepublicofBurundi.

Themed Peaceful Elections in Burundi for RegionalIntegration,theCOMESA-EACRoundtablesarejointdialogueinitiatives/activities geared towards promoting a peacefulenvironment forelections,preventelections-relatedviolentconflictandsupportasmoothtransitionduringandafterthe2015electionsinBurundi.

TheRound-TablesareinresponsetotheGovernmentofBu-rundi’srequesttotheEastAfricanCommunityandCOMESAtosendalongtermObserverMissiontothecountry.ItisinthisregardthatbothCOMESAandEACintendtoengagewiththepeopleofBurundithroughaseriesofactivitiesincludingRoundtablesDialoguesgeared towardssupportingpeacefulelectionsinBurundiin2015

The EAC-COMESA Roundtables initiative has gatheredrepresentatives from Government, Political Parties, CivilSociety Organizations, Religious Leaders, Media, YouthGroups,WomenandChildren.EminentPersonsfromaroundthe African Continent will have an opportunity to shareexperiencesfromtheirownjurisdictions.

The dialogue is an open forum for free discussion to par-ticipants. Someof the eminent persons taking part in theRoundtablesare:Dr.SpeciozaWandiraKazibwe,FormerVicePresidentoftheRepublicofUgandaandnowamemberoftheAfricanUnionPaneloftheWise;JusticeJosephWarioba,Former PrimeMinister of the United Republic of Tanzania;Amb.BethuelKiplagat,FormerSeniorDiplomatandPerma-nentSecretaryMinistryofForeignAffairsoftheRepublicofKenya;andHon.AmanyaMushenga,FormerSecretaryGen-eraloftheEastAfricanCommunity.

MinistersfromtheEastAfricanCommunity(EAC)havesignedaCooperationAgreementonTradeFacilitation,SanitaryandPhytosanitary (SPS) Measures, and Technical Barriers toTrade(TBT)withtheU.S.TradeRepresentative,AmbassadorMichaelFroman.

The Cooperation Agreement will increase trade-relatedcapacity in the East African region, aswell asdeepen theeconomictiesbetweentheEACandtheU.S.ThispartnershipwillbuildontotheEAC’sworkoncustomsreforms,whichhavealreadyresultedinsubstantialreductionsinthetimeand costs ofmoving goods across borderswithin the EACPartnerStates.

While a majority of the region’s people are involved inagricultural production or processing, the exportpotentialoftheseproductsarecurrentlylimited.WiththisnewAgreement in place, the EAC can now meet internationalstandardsbybringinginU.S.technologicalexpertisetofullyimplementtheWorldTradeOrganization(WTO)TradeFacili-tationAgreementon Sanitary andPhytosanitaryMeasures,thushelpingEACPartnerStatestoincreasefoodsecurityandcreateadditionalexportopportunitiesforproductsproducedintheregion.

By training East African standard officials and developingelectronic systemsonnewproposed technical regulations,EAC Partner States will also increase their ability to meetinternationalqualityandsafetystandardsbyimprovingim-plementationoftheWTOAgreementonTechnicalBarrierstoTrade.

Tremendous efforts and reforms have been taken tofacilitate trade in the region, including improving customsprocedures, enforcement and modernization as well astechnicalstandardsandregulations.TogetherwiththeactionplansonSPSandTBT,itisanticipatedthatimportantbenefitswillbeachievedthroughthiscooperation.


ENVIRONMENT ENVIRONMENT

The East African sub-region is among themost vulnerableregionstoclimatechange intheworld.Rural livelihoods intheregionareparticularlyvulnerablebecauseofhighdepen-dence on rain-fed agriculture. Developing the resilience ofagriculturalsystemstoadverseweathereventsandclimatechangeisfundamentaltoachievingfoodsecurityinthere-gion.

There is sufficient evidence that practices such as conser-vation agriculture (CA) and other climate-smart agriculture(CSA)practicesforexampleagroforestryandintegratedpestmanagement,aresomeofthepromisingoptionsthat,overtimecansustainablyincreasetheproductivityofsmallholderfarmers.

TheseCSAsystemsarehowevernotwidelyusedinEastAfricapartlybecause there is limitedawareness, capacity, knowl-edgeandpolicysupportforthewidespreaduseofthetech-nologies.

The concept of Climate Smart Agriculture, initiated by theFoodandAgriculturalOrganisationoftheUnitedNations(FAO)addressestheinterlinkedchallengesoffoodsecurityandcli-matechange,andwiththeobjectivetoincreaseagricultural

productivity, adapt and build resilience of agricultural andfoodsecuritysystemstoclimatechangeandreducegreen-housegasemissionsfromagriculture.

TheEACtogetherwithCOMESAandSADCareimplementingaprogrammeonclimatechangetobringsignificantlivelihoodandfoodsecuritybenefitstoatleast1.2millionsmall-scalefarmersthroughtheapplicationofwell-tested,ClimateSmartAgriculturethatcombinescropproductionwithagro-forestryandlivestockmanagement.

In2010 these threeRegionalEconomicCommunities (RECs)agreed to jointly implement a Climate Change programmecovering26Africancountries.

Regionaleffortsunderway tosupportclimate-smartagricul-ture include the Africa Climate-Smart Agriculture Alliance,which aims to help 25 million farming households acrossAfrica practice climate smart agriculture by 2025 as agreedby the first Africa Congress on Conservation Agriculture inMarch2014inLusaka,Zambia.

Agnes is a Communications Officer with the Deptartment of Environment at the EAC Secretariat

agnes asiimwe

Climate Smart Agriculture: Why the EAC is interested

Copy

right

©

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EEk

The 7th EastAfricanPetroleumConferenceandExhibition

2015(EAPCE’15)openeditsdoorsonthe4thMarch,2015at

theKigaliSerenaHotelusheringinthreedaysofdiscussions

onmattersupstreampetroleum.TheConferenceattracted

640 participants drawn from government, private sector,

civilsocietyandotherstakeholdersfromtheworldover.

The importance the EAC Partner States have attached to

thisconferenceasanavenueofpromoting theregion for

investment in the petroleum sector was evident in their

participation and more so by the country presentations.

One of the highlights of the Conference, country presen-

tationsshowcaseeachPartnerState’spetroleumpotential

andtheopportunitiesforinvestmentinthesector.

PartnerStatesputtheirbestfootforwardandasthemade

their case among investors with a realistic chance of

securing investments or initiating discussions that could

leadtosome.TheRepublicofUgandatooktheopportunity

to announce her first competitive licensing roundwith a

statementfromtheGovernment.

EAPCE’15 attracted Presidents, Vice-Presidents and Senior

Executivesof internationaloilandservicecompanieswho

found it necessary to come in person to participate in

theconference. Thecountry roomsprovided forPartner

Statesbecameabeehiveofactivitiesascompaniessought

appointmentswithseniorgovernmentofficialstoestablish

contactandfurtherdiscussinvestmentopportunities.

TellinglyitwastheinterestbyEastAfricansthatwasmost

evident.WhenEAPCE’15wasannouncedwitharegistration

feeofUS$500forEastAfricancitizens,manywereskepti-

cal,notingthatnocitizenoftheregionwoulddigthatdeep

intotheirpockettoattendaconference.Theywerewrong.

EastAfricansturnedupinlargenumbers.Theinterestof

EastAfricansinthedevelopmentoftheemergingupstream

petroleumindustryinveryencouragingastheirparticipa-

tioniscriticalforthesuccessoftheindustry.

ParticipationattheEastAfricanPetroleumConferenceand

ExhibitionisonewayofbringingEastAfricansintodiscus-

sionwiththeirgovernmentsandotherstakeholdersinthe

petroleum industry. Oneof theobjectivesofEAPCE is to

accord East Africans that opportunity. The local content

session,havingattractedalotofinterestfromEastAfricans,

highlightedemergingissuesincludingtheframeworksthat

PartnerStatesareputtinginplacetoenableEastAfricans

toplayamorecriticalroleintheindustrybyprovidingrel-

evantservicesanddevelopingcapacitytoundertakemore

services.

EvenasordinaryEastAfricansdemonstratedinterestbyat-

tending the conference, players in the oil industry were

impressedbythelevelofunderstandingthatEastAfricans

working in the sector nowhave. Majority of the techni-

calpresentationsmadeatEAPCE’15werebyEastAfricans

workinginthesector,whoshowedin-depthunderstanding

ofawidespectrumofissuesintheindustrythroughtheir

wellresearchedandarticulatelypresentedpapers.

ItisnoteworthythatpapersatEAPCEhavesince2011been

soughtthroughacompetitivecallforpaperswhichareeval-

uatedbyatechnicalcommitteebeforetheyareacceptedfor

presentation.Althoughalotofcapacityisstillrequired,it

isgratifyingthattheavailablecapacityiswellhorned.

TheEACiskeentodeveloprequisitecapacitiesinthesector

byencouragingyoungpeopletochoosecareersinthesec-

tor.TheConferencesponsorstwouniversitystudentsfrom

each Partner State to attend the conference and present

technicalposters.Thepostersareevaluatedbyatechnical

committeecomprisingofacademia,governmentandindus-

try.Inanindustrythatismaledominated,itwasgratifying

thattwoofthetopthreestudentsatEAPCE’15werefemale.

When the East African Petroleum Conferences started in

2003,therewaslimitedinformationontheregion’spetro-

leum potential and little exploration activity. The region

wasperceivedasafrontierwiththeonlydiscoveriesatthe

timebeingnaturalgas inSongoSongoandMnaziBay in

Tanzania.Therewaslittleinterestbothfortheregionand

theconference,whichonlyattracted150participants.

Things changed dramatically after the second conference

held in Entebbe in 2005with the discovery of oil in the

AlbertineGrabeninUgandain2006.Bythethirdconference

inArusha in2007, thenumberofparticipantshadgrown

toover500andinterestintheregionwasgrowing.During

thefourtheditionoftheconferenceinMombasain2009,

interestintheconferencehadgrownextensively,rendering

itnecessaryto introduceparallelsessions-a featurethe

conferencehasmaintainedsince. Itwasalsoduring the

Mombasa conference that a significant interest in exhibi-

tionwasrealized,somuchthatitwasmadeafully-fledged

componentinthesubsequentconferences.Thenamewas

thenofficiallychangedfromEastAfricanPetroleumConfer-

ence(EAPC)toEastAfricanPetroleumConference&Exhibi-

tion(EAPCE).

EAPCE’15 closed its doors on 6 March 2015, after three

daysofdiscussionson the theme,“East African Region - Proven Destination for investment in petroleum resources for regional energy sufficiency and lasting socio-economic development”.Itwasclearthatthereisasenseofantici-

pationastheregionpreparestomovefromexplorationto

commercializationofthediscoveredresources.ππ

INFOCUS INFOCUS


PETER kinuthia & THE COMMUNITY TEAM

eapce’15 demonstrates growing interest in region’s upstream petroleum sector

ππ One production license has been awarded in Uganda

and others are in the pipeline. Commencement of the

developmentofarefineryinUgandaisinsight.Although

the refinery is in Uganda, it is a regional PPP (Public-

Private-Partnership) project in which other EAC Partner

States’governmentswillownastake.Associatedinfrastruc-

turetosupporttherefineryincludingpipelinenetworksand

storage facilities paint an encouraging picture. The near

completionoftheMtwara-DaresSalaamgaspipelinecomes

as a welcome sign that the region is well on its way to

utilizingitsresourceswithaprioritytothedomesticmarket

overexport.ThedeliveryofgasinDaresSalaamwillboost

powergenerationatKinyerezipowerstationstosignificantly

raisethecontributionofnaturalgas,whichisacleanand

reliablesource,totheenergymix.

The conference helped to demonstrate to stakeholders

thattherealizationofthefullvaluechainofthepetroleum

industry is costly and painstaking. This reality check is

important to ensure that right measures are taken,

policies,institutionsandlegalframeworksareputinplaceto

support the industry. The policy, legal, institutional and

regulatory framework under which the discoveries were

made was designed for the exploration phase since the

region’s focuswasonexploration. Following thediscover-

ies, there isneed for reviewand restructuring to support

commercialization of the resources. This process, by its

nature,istimeconsuming.

Although there has been much excitement in the region

aboutdiscoveriesmade,EAPCE’15remindedtheregionthat

onlyasmallpartofthepotentialbasinshavebeenexplored.

It is still relevant to promote the region for exploration.

More data and information on the region’s sedimentary

basins is now available and the discoveries have

contributed to improving the perception of risk in the

region. The Partner States are, therefore, embracing

competitivelicensingoftheirexplorationblocks.

TheEAPCEisasuitablelaunchingpadforalicensinground

that Partner States intend to use. Uganda has tested the

watersbyusingEAPCE’15toannounceherfirstcompetitive

licensinground.Thebidswillattesttoitseffectiveness.

EAPCE’15 demonstrated growing interest in the region’s

upstreampetroleumsector.Itisanaccumulationofstep-

wisecontributionsmadebyprecedingEAPCEconferences.

EAPCE’15passesthebatontoEAPCE’17tofurtherbuildon

theseexperiences.

Peter is a Senior Energy Officer at the EAC Secretariat


ENERGY ENERGY

6.5 Billion Barrels

Commercial pertoreulm reserves in Uganda

600 Million Barrels

Commercial pertoreulm reserves in Kenya

53 Trillion Cubic Feet (tcf)

Natural Gas reserves in Tanzania

Licensing Round

Uganda announces First Licensing Round at EAPCE’15

Regional PPP Project

Framework in place allowing Partner States to own stake in Refinary in Uganda

EAPCE’15 Highlights:

Sector Higlights:

640

Delegates from East Africa & around the world

52 Technical Presentations

10 Poster Presentations

30 Regional & International Exhibitors


INTELLECTUALCAPITAL INTELLECTUALCAPITAL

The journey to a cohesive and economically vibrant East

African Community has been long and eventful. Enormous

resourceshavebeencommittedtothispursuit.

However, the intellectualcapitalavailabletotheregionhas

notbeenfullyharnessedtodeliverastronger,wealthierand

moreunifiedregionalbloc.

The term “intellectual capital” refers to the resources

available to humankind that, once properly harnessed,

determinetheextentandspeedofthetransformationofso-

cieties.

Since its emergence in the 20th century, intellectualism as

a notion has been widely debated. Noam Chomsky, in his

seminal1967essaytitled“The Responsibility of Intellectuals,”paintsintellectualsinnotveryflatteringterms.Hedescribed

themaspawns,apologistsandpropagandistsofstatepower.

Morepositivecommentators,however,categoriseintellectual

capitalintermsofitsinfluenceonsociety.Onesuchliberal

view identifies three categories of intellectuals: Loyalist in-

tellectuals,whoareprimarilycommittedtomaintainingthe

statusquo;reformistintellectuals,keenoneggingonchange;

andradical intellectuals,whodonotfearmakingproposals

thatrubauthoritiesthewrongway.

Itcanproveworthwhiletolistentotheviewsofreformistand

radical intellectuals if through them thepublic imagination

maybenudgedintoactionthatpresageschange.

Integrationofcommunitiesandinterests,meanwhile,isim-

perativetoprogress,besidesbeingcrucialinperpetuatingthe

survivalofthehumanraceitself.

Ironically,thetendencytopullapartamongcommunitiesis

asoldashumankind.Thistendencyworsensinthefaceof

weakinstitutionsthatcannotprotectmarketsorprovidethem

roomtogrow.

Globally,therationalebehindthecreationofsynergiesamong

participatingstatesisthesearchforthegreatercommongood

ofhumankind.Indeed,nothingcanbetterrefutethemisguided

mentalitythat“islandnations”havemorepotentialforpros-

peritythanasmoothlyfunctioningregionalcommunity.

Naturally,universities,Makerereincluded,areabodesofexcel-

lenceinwhichideasgerminate,intheprocessofcreatingpos-

sibilitiesforprosperity.

Inthemeantime,winnowingtheavailablebodyof ideasand

trawlingtheseaofoptionsforthetransformationofEastAfrica

issquarelyintheprovinceofintellectuals.BetweenMwalimu

Nyerere,JomoKenyattaandMiltonOboteandProfAliMazrui,

ProfWangariMaathai, Okot P’Bitek, ProfMahmoodMamdani

andNgugiwaThiong’o,wehavealotofprecedentstoenthuse

ourimagination.

In1921,whileTanzania,KenyaandUgandawereundercolonial

rule,theEastAfricanAssociation,formerlytheYoungBuganda

Association,wasformed.ItsmissionwastopushforIndepen-

denceforallthreestates.

Asithappened,between1921and1969,thethreeoriginalEast

Africannationssharedacommoncurrency—theEastAfrican

shilling.Andin1963,MakerereUniversitybecametheUniver-

sityofEastAfrica,withtheUniversityofNairobiandUniversity

ofDaresSalaamasconstituentcolleges.Giventhishistory,the

integrationofEastAfricaisanintuitiveprocessthatneedslittle

urgingalong.

Elsewhere,herdsofwildebeestandzebrasengage inanan-

nualpilgrimagetoKenyaandbacktoTanzaniaunconstrained

by travel rulesordocuments.TheMaasai, theKuriaand the

Teso crisscross Tanzania, Kenya and Uganda unperturbed by

theboundariesthatexist.

Thankfully, the East African Legislative Assembly is now an

entity patronised by able representatives from the five

member states capable of mobilising sufficient intellectual

capitaltofosterwealthcreationacrosstheregion.

TheEastAfricanCommunityCustomsManagementAct,2004,

hasbeeninplaceforadecadenow.Surelytheremustbegifted

personswhocannowguidetheautomationoftheremittance

ofrevenuescollectedatportsofentrydirectlytotherevenue

authoritiesofthecountriesclearedgoodsaredestinedfor.

Perhaps the Inter-UniversityCouncil for EastAfrica, itself, an

instrumentoftheEastAfricanCommunity,canassistincreat-

ingareservoirofourregion’sintellectualcapital.Atthispoint

I amcompelled to inquire:Doanyofouruniversities in the

regionhaveamultidisciplinary courseby thenameof “East

AfricanStudies”?

Lestweforget,Tanzania,Rwanda,Burundi,UgandaandKenya

wereacolonial idea,eachofthemintendedtobenefitother

parties,notus.

Our intellectual capital should lead the way to East Africa’s

industrialdevelopment.Cultureandtheartsareapetsubject

ofintellectuals.Nevertheless,wehavenotrepackagedourcul-

turalresourcesandexploitedtheirfullpotential.

It is time our intellectuals dealt conclusively with the

dissonance that presently exists between ideas and action.

Ignoring our intellectual capital is, in effect, locking out the

dividendsoffullregionalintegration.

Though the creation of narratives that can temper thought

processesatthemasslevelandopennewvistasofpossibility

andaction is theworkof intellectuals, intellectualism for its

ownsakeisaluxuryAfricacannotaffordrightnow.

Our intellectuals should help our region overcome artificial

barriers that encourage the confinement of individual East

Africanstatesinsterilepigeonholes.

This article derived from the keynote lecture delivered by Mwai Kibaki, the third president of Kenya and an alumnus of

Makerere University, on the occasion of the launch of the Mwai Kibaki Presidential Library, the Mwai Kibaki Endowed Chair in Economics and the East African Mwai Kibaki Centre for Leadership, Public Finance and Policy, in February 2015 at Makerere University grounds. The article first appeared in the

East African Newspaper.

Intellectual capital is key to east africa’s progress

Mwai Kibaki

It is time our intellectuals dealt conclusively with

the dissonance that presently exists between

ideas and action. Ignoring our intellectual

capital is, in effect, locking out the dividends

of full regional integration.”

ILLU

STRA

TION |

JOHN N

YAGAH

|

NAT

ION M

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EAC@15 EAC@15

Letmestateattheoutsetthatwhenonelooksbackthrough

thetunnelofhistoryoneclearlyappreciatesthemomentous

achievementsmadebytheEastAfricanCommunitytodate.

Alotofprogresshasbeenmadebothinbuildingtheinsti-

tutionsof theCommunityand in integratingtheregion.No

doubttheEastAfricanCommunityhasbecomeaverystrong

institutionbothintermsofitsorganizationalandinstitutional

setupandinthefunctioningofitsvariousorgansandinstitu-

tions.Withregardtotheintegrationprocess,alotofground

hasbeencoveredandsuccessfullyso.

Regional Trade

IntheCharterestablishingtheEastAfricanCommunity,itwas

agreedthattheentrypointinourintegrationprocesswillbe

theCustomsUnion, followedby theCommonMarket, later

theMonetaryUnionandultimately thePolitical Federation.

TheCustomsUnionwhichstartedin2000involvedtwothings.

Firstly, the free movement of goods produced in any EAC

memberstateandsecondly,aCommonExternalTariff.Goods

aresupposedtomovefreelyacrossthebordersofmember

countrieswithouttariffsbeingchargedandnotencumbered

byNonTariffBarriers.

It isheartwarming; indeed, tonote that implementationof

theCustomsUnionwhichstartedin2000upto2005hasbeen

asuccess.Indeed,goodswhichmeetthecriteriaofRuleof

Originhavebeenmovingacrossborderswithoutpayingtaxes

however,nontariffsbarriersremainachallenge.Progresshas

beenmadebutthematterhasnotbeenresolvedfullyyet.

Thesechallengesnotwithstanding,intraEACtradehasregis-

teredphenomenonincreaseinthisshortperiodof10to15

years.Tradeisnowat23percent,overandabovetheintra

Africantradefigureof12percent.Therehasbeena300per-

centincreaseinthevalueoftradefrom,US$2billionin2005

toUS$6billion in2014. Thesenumbers,coupledwith the

combinedEACGDPofUS$110.3billionwithanaverageannual

rate growth, of 2.6 percentmakes our region a formidable

tradeandeconomicblockinAfrica.

At the same time government revenues have recorded an

increaseyearafteryear from89.55percentof thetarget in

2010to96.86percentofthetargetin2013.Duringthediscus-

sionsontheestablishmentoftheCustomsUnion,thelossof

governmentrevenueswasamongthe leading fears. Ithas

turnedoutdifferent.Onecan,indeedbrag,theEACisnextto

noneontheAfricancontinent.

WeenvisagemoreincreasedrevenueswhentheSingleCus-

tomsTerritorybecomesfullyoperationalinthenearfuture.So

far,thepilotingexercisesareprogressingwellinallmember

states.Indeed,ithasprovenhelpfulinreducingencumbranc-

estoimportersandindiscouragingdumpinganddiversionof

transitgoods.Ultimately,itwillbeaneffectivetoolofpromot-

ingtradeandcurbingrevenuelosstogovernments.

Non Tariff Barriers

Itisincumbentuponus,therefore,toensurethatallremain-

ingnon-tariffbarrierstotradeareremovedintheEastAfrican

region.Wealladmitthatwehavedoneverywellineliminat-

ingtariffrelatedbarriers,wemustresolvetodoawaywith

theremainingnon-tariffbarriers.

Commendableworkhasbeenandcontinues tobedone to

addressthetransportrelatedonessuchasroadblocks,weigh

bridgesandothercheckpointsontheroadsaswellascus-

tomsred-tapeatportsandexitpoints.

Theprogressmadesofar,attheportsofMombasaandDar

esSalaamand,ontheNorthernCorridorwithregardtoroad

blocksshowsthatitispossibletoeliminatethesenon-tariff

barriers.Measuresarebeingtakeninearnesttoreduceroad

blocksontheTanzaniasideoftheCentralCorridor.Iamsure

inthenextfewmonthswewillnoticeahugeimprovement.

We are on coUrSe, but let’s do more

H.E JAKAYA KIKWETE

IamhappytoinformourreadersthatPolicecheckpointshave

been reduced from15points to 6point.Our aim to reduce

them to none except when need arises. Tanzania Revenue

Authoritychecksfrom3to0.Weighbridgeshaveremained8

butourplanistoreducethemto3.Weareintroducingweigh-

in-motiontechnology.OneisalreadydoneatVigwaza,twoare

ontheirwayforManyoniandNyakahura.

Withtheseimprovementsalone,foracontainertomovefrom

theportofDaresSalaamtoKigalitakes3daysfromtheprevi-

ous8days.IttakesthreeandahalfdaystoBujumburafrom

theprevious8days.

Ipledgedduring the16thSummit thatduringmy timeasa

ChairoftheEACIwillgivedueattentiontoeliminationofNon

TariffBarriersintheEastAfricanCommunity.Iintendtofollow

uponthispledge.WemustmaketheEACregionthebestplace

todobusiness.

Regional Infrastructure

Wemustdoeverythingwithinourpowertoreduceinfrastruc-

ture related costs at the shortest possible time. These are

responsible,inabigway,tothehighcostofdoingbusinessin

ourregion.Itisestimatedthat,costoftransportinourregion

are4to5timeshighercomparedtothedevelopedcountries.It

isestimatedthatitaccountsforabout30to40percentofthe

priceofgoodsinthelandlockedcountries.Investinginbetter

andefficientports,railways,roads,aviationservices,energy

andtelecommunicationarethingswemustcontinuetodo.

The2ndEACHeadsofStateRetreatonInfrastructureDevelop-

ment and Financing held in Nairobi in November, 2012, we

undertooktoclosetheinfrastructuregapby2020.Inotewith

adeepsenseof satisfaction, theongoingwork,both in the

NorthernCorridorandtheCentralCorridorinthisregard.

Common Market

As stipulated in the Treaty establishing the East African

Community, theCommonMarket is thenext stageafter the

CustomsUnion.Asyoumayrecall,theCommonMarketProto-

colwassignedin2009andcameintoforcein2010.ThisCom-

monMarketiswhatanswerstheveryquestionaboutmove-

mentofpeople,capitalandserviceswithintheregion.

ThefeedbackfromtheEACCommonMarketScoreCard2014

showsthatprogressisnotgoodenough.Forexample,with

regardtotheFreeMovementofServices,63measuresoutof

500keysectoral lawsandregulationsofPartnerStateswere

identifiedtobeinconsistentwiththeCommonMarketProto-

col.73percentoftheseareexclusivelyrelatedtoprofessional

services.ππ


ππ Withregardtomovementofgoods,alothasbeendone

apartfromnon-tariffbarriersrelatedtosanitaryandphytos-

anitarymeasures.

Intermsofmovementofcapital,only2outof20capitalop-

erationsarefreeofrestrictionsinallPartnerStates.Thesetwo

arerelatedtoexternalborrowingandrepatriationofproceeds

fromsaleofassets.

The score card reminds us that Partner States are behind

schedule inreviewingandamendingnational lawsinaccor-

dancewiththeCommonMarketProtocol.Itimpedesprogress

in the implementation of the Protocol and the East African

integrationprocess.

Weagreedat the recentNairobi Summit thatweshoulddo

moreinourrespectivememberstatesontheimplementation

ofthefindingsandrecommendationsofthescore-card.

IappreciatethefactthatthereareBillsbeforetheEastAfrican

LegislativeAssemblythatwillhelpadvancetheimplementa-

tionoftheCommonMarket.TheseincludetheEACCrossBor-

derLegalPracticeBill(2014);theEACElectronicTransactions

Bill2014;andtheEACCompetition(Amendment)Bill(2015).

Peace, Security and Stability

Ours isa regional integrationundertakingderived fromhis-

toricallessonsofthedefunctEastAfricanCommunity(1967–

1977),also,fromthegainsmadebytheTripartiteCommission

onEastAfricanCooperation(1996-1999). Weallknowwhat

contributedtothedemiseofthepreviousEAC.Itisnotmy

intensiontodwellonthenarrationorthereasonsandcircum-

stancesofitscollapse.

WhenconceivingthenewCommunity;weallagreedthatwe

shouldnotrepeatthemistakesofhistory,neitherbeprisoners

ofit.Wealsoagreedtomovecautiouslymakingeverystep

wetakethebuildingblockofthenext.Indeed,westartedwith

theTripartiteCommissiononEastAfricanCooperationin1996

andlaterin1999graduatedintotheEastAfricanCommunity.

The principle of growth by stages is well enshrined in the

TreatyestablishingtheEastAfricanCommunity.Wehavere-

mained faithful to this principle.We started as 3members

wearenow5,withprovisionforotherstojoiniftheymeet

thetermsandconditions.Amongthetermsincludesharinga

commonborderwithamemberoftheEastAfricanCommunity

andsubscribingtotheidealsoftheEastAfricanCommunity.

Sofar,SouthSudanandSomaliahaveappliedtojointheEast

EAC@15 EAC@15

AfricanCommunity.

Subscribingtotheidealsofthedemocracy,goodgovernance,

human rights and rule of law are critical tenets of the East

AfricanCommunity.Weallagreethatbettergovernedmember

statescontributetoaprosperousregion. It isalsotruethat

badly governedmember states frustrate the integrationpro-

cess. It impedestrade,cooperation,aswellasmovementof

people,goods,servicesandcapital.Moreover,itdetersinvest-

ment andmakes the region anunfavourabledestination for

investmentandtrade.

Peace,securityandstabilitymustandshouldcontinuetobe

highonouragenda.Iamhappyourregionispeaceful,secure

andstable.Democraticvaluesandinstitutionscontinuetotake

rootandshapeinourcountries.Thisyearwewillbehaving

electionsinBurundi,andaReferendumonproposedConstitu-

tionandGeneralElectionsinTanzania.

ThepeopleofEastAfricashouldjoinhandsinwishingthese

two countries success in these important undertakings. Let

theelectionsbecredible,freeandfairwhichabideandrespect

theconstitutionsandtherelevantlawsofthesecountries.Let

themcomeoutoftheseprocesses,peacefulandunitedasa

nationandapeople.

Our region isnotwithout security challenges. The fact that

wearesurroundedbyothercountriesandregionsinconflict,

posesasecuritychallengetoourregion.Therefore,wecannot

avoidkeepingoureyesonthemandbeingofassistancewhen

needarises.Itisinthisregard,ourregionisinvolvedinthe

DRC,SouthSudanandSomalia. Wemustcontinue toassist

thesenations. It is inourbest interest todososinceallof

themarepotentialfuturemembersoftheCommunity.

Terrorismandtransnationalcrimesaresecuritychallengesfac-

ingourregionwhichrequirearegionalresponseforeffective

control and success. I am glad that efforts are ongoing at

regionalleveltoaddressthesechallenges.Thereiscloserco-

operationbetweenthedefenseandsecurityorgansofourre-

spectivecountries.Theyshareintelligenceandundertakejoint

or coordinated actions. This is very much welcome and we

shouldencourage it. It is important that our region remains

seizedwiththepeaceandsecurityagenda,foritdetermines

thesustainabilityandfutureoftheEAC.

Role of EALA

TheEastAfricanlegislativeAssemblyisoneoftheimportant

pillarsofourCommunity.ItistheOrganthatcarriesthevoice

andaspirationsofourpeople.Thisiswherepeople’sinterests

areraised,aggregatedandtranslatedintolaws.ππ


EAC@15 EAC@15

ππ Since ours is a people centred integration, then the

Assemblyisattheheartofourintegrationendeavors.

IcommendthegoodworkbeingdonetheAssembly.TheBills

passedbytheHousegivelifeandmeaningtoourintegration

aspirations.ItcouldnotbepossiblefortheEACtoachieveso

muchwithin thisshortperiodof itsexistenceorwithout the

goodworkbeingdonebytheEALA.Manyof theBillspassed

byEALAandResolutionsadoptedhavecontributedimmensely

towardsadvancingtheEACintegrationprocess.

TheAssemblymustcontinuetobethepeople’sAssemblyand

their first point of call. The Assemblymust continue to de-

liberateonissuesofconcerntothepeopleofEastAfricaand

not otherwise. Theymust give prominence to issues which

areregional incharacter rather thantrivialnational interests.

WemustseethatEastAfricanessspiritintheAssembly.Iap-

preciatetheeffortsoftheAssemblyinreachingouttoNational

Parliaments, governments and various interest groups in the

PartnerStates.

East Africa Court of Justice

Another historic milestone has been laid with regard to the

functionsofEastAfricanCourtofJustice.Atthe16thSummit

ofHeadsofStateoftheEastAfricanCommunityheldinNairobi

on 20th February, 2015,we adopted and signed the Protocol

tooperationalizetheExtended Jurisdictionof theEastAfrican

CourtofJustice.

Theextendedjurisdictioncoverstradeandinvestmentmatters,

as well as issues associated with the East African Monetary

Union.ThisisyetanotherimportantavenueforEastAfricans

toaccessjusticeandreapmorebenefitsfromtheirCommunity.

Itconsolidatestheintegrationprocess.

Way Forward

Integrationisnotaoneoffevent. It ismultifaceted. Ittakes

time.Assuch,patienceandunderstandingisabsolutelyimpor-

tant.Otherwise,wemayendupmakingmistakeswhichcould

beavoided.Wemustremainsteadfastandfocusedondeepen-

ingandwideningEastAfricanintegration.

Trade indicators and statistics confirm that this is happening

steadily.However,wemustnotbecomplacent.Inmyviewwe

needtodomoreinmanyways.Allowmetomentiontwothings

ofinterest.

One,wemustincreasethepaceoftheimplementationofdeci-

sionsandagreementsofthevariousorgansoftheCommunity.

Recent report shows that, implementation of these decisions

andagreementsstandsat75.8percent forKenya,Rwandaat

75.7percent, Tanzaniaat66percent,Burundiat56.5percent

andUgandaat48.1percent.AtthelastSummitweagreedto

urgeourselves toensurespeedy implementationof thedeci-

sionswemakeandagreementswesign.Wealsoapplaudedthe

ideatoinstitutionalizemechanismsoftrackingtheimplementa-

tionofdecisionsandagreementsreached.

Second,wemustpromoteownershipoftheintegrationprocess

bythepeopleofEastAfrica.Asamatteroffact,thefutureand

sustainabilityoftheCommunityverymuchdependsuponhow

farwesucceedinmakingpeopleofEastAfricafeelthatthey

benefitfromtheEastAfricanCommunity.TheStateofEastAf-

ricaReport–2013bySocietyofInternationalDevelopment(SID)

providesuswithsomeimportantinsights.

It suggests that the futureof the regionwilldependonhow

wemakegrowthinclusiveandonnarrowingtheinequalitygap

withinnationsandintheregion.Certainly,theanswerlaysin

the deepening of integration and increasing investment and

tradewhich have proven to be good catalysts for promoting

prosperityandimprovingwelfareofthepeople.Integrationis

thebestwayforward,fornoonecountrycanovercomethese

challengesalone.

Weareallwitnessestothefactthatalotofprogresshasbeen

madeinourintegrationprocess.Whatwehavebeenableto

achieveinthisshortperiodoftimeistrulyamazingtousand

theworldatlarge.Thepaceanddepthofourintegrationpro-

cess has been phenomenon. We have demonstrated to the

world that integration process can actually happen in Africa.

Therefore,theEastAfricanFederationandUnitedStatesofAf-

ricaarenotamirageordistantdreams.Theyarepossibleand

doable.

ForusTanzania,with50yearsexperienceoftheUnionbetween

thethenTanganyikaandZanzibar,weknowitispossibleand

doable.Webelieveinit,wearelivingitandwelookforward

toliveasEastAfricansintheEastAfricaFederationand,ulti-

mately,asAfricancitizensintheUnitedStatesofAfrica.

Letusremaincommittedandsteadfastinpursuitofthesenoble

ideals.Nothingisimpossible.Itcanbedoneifweallplayour

part.

This article is an edited version of the 2015 State of EAC Address by H.E Jakaya Kiwete, President of the United

Republic of Tanzania and Chairperson of the Summit of EAC Heads of State, delivered at the 5th Meeting of the 3rd Session of the

3rd East African Legislative Assembly in March 2015 in Bujumbura, Burundi.

The East African Civil Aviation Academy (EACAA) was

established in Soroti, Uganda by a Treaty of Cooperation of

the then East AfricanCommunity in 1971 to train Pilots and

Aircraft Maintenance Engineers from Kenya, Uganda and

Tanzania. One of the major purposes for the establishment

was to provide the much needed Technical Personnel

forEastAfricanAirways.

Technical assistance was provided by United Nations

Development Programme (UNDP) and the International

CivilAviationOrganisation(ICAO)throughprovisionoftraining

programmes, instructors, aircraft, aircraft maintenance

personnel,maintenance,equipmentandsparessupport.

The Academy operated as an Institution of EAC until the

collapse of the Community in 1977 and has since been

managedunder theMinistry responsible for Air Transport of

theRepublicofUganda.However,theAcademylacksrelevant

legalframeworktooperateasanautonomousinstitutionandis

generallystilldeemedanInstitutionoftheCommunity.

The Academy’s Vision and Mission are “To be a centre of

excellence in providing training in civil aviation and

related disciplines” and “To provide timely, qualitative and

costeffectivetraininginaviation”respectively.

The EACAA has been identified by the East African Commu-

nityasoneoftheCentresofExcellenceinAviationTrainingin

supportofthedevelopmentandfastgrowingaviationindustry

andintegrationobjectivesofEAC.

Despite themany challenges the Academy has experienced,

theinfrastructureandequipmentatSoroticontinuestobethe

bestsuitedforthepurposeoftrainingofPilotsandEngineers

intheEACRegionandbeyond.

For a period of over 25 years, since inception in 1971, the

Academy popularly referred to as the Soroti Flying SchoolwasrecognizedandrespectedasthehighestratedApproved

Training Organisation (ATO) on the African continent,

graduating many Pilots and Engineers who have been

providing significant technical expertise to the Aviation

industrywithinEastAfricaandbeyond.

ThepleaoftheAviationfraternityistoletthegloryofEACAA

riseandshineagain!!

The Author is the Executive Director of the Civil Aviation Safety and Security Oversight Agency (CASSOA), an Institution of the

EAC

barry kashambo

Soroti Flying School: a forgotten center of excellence


FLorian mutabazi

EAC@15 EAC@15

15 years later, EAC still going strong

The East African Community integration process is in high gear. This is reflected by the encouraging progress and remarkable strides taken with regard to the implementation of the East African Customs Union, the implementation of the EAC Common Market, the signing of the East African Monetary Union Protocol and efforts in fast-tracking the process towards an East African Political Federation.

These underscore the determination of the East African leadership and citizens to develop a powerful and sustainable East African economic and political bloc.

The accession of the Republics of Burundi and Rwanda to the EAC Treaty raised the resource base of the regional bloc with exciting prospects for rapid progress towards EAC’s transformation into a middle income economy by the year 2020. Indeed, the East African Community is strategically located and has the potential to become the economic hub in Eastern and Central Africa.

As EAC the turned fifteen in November last year, Florian Mutabazi, Media Centre Coodinator at the EAC Secretairt looks at some of the bloc’s milestones recorded to date.

trade, Finance & Investment

There is significant leveraging of the

regional programme in the promotion

of trade and investment as well as

developmentof regional infrastructure.

The CustomsUnion, launched in 2005,

has taken on a life of its own. The

Customs Union’s positive impact on

increasedintra-EACtradeandgrowthof

revenueisfeltandsharedinallPartner

States. All the EAC countries have

reported increased revenues since the

operations of the EAC Customs Union

werelaunched.

Thesedevelopmentsgiveconfidenceand

comfortwhere, in thebeginning, there

wereexpressionsoffearanddiffidence

over the introduction of the Customs

Union. Consequently, the mood was

upbeatastheregionproceededtothe

establishment of the Common Market

and now the East African Monetary

Union.

IntroductionoftheEACSingleCustoms

Territory(SCT)isoneofthekeytangible

achievements recorded in 2014 as

a result of the Customs Union. The

frameworkforoperationalizationofthe

EACSCTwasfinalizedandadoptedbythe

EACHeads of State inNovember 2013,

with operationalization commencing in

January2014.

According to the EAC Director General

ofCustomsandTrade,Mr.PeterKiguta,

transformationoftheEACintoaSingle

CustomsTerritoryiswhatisrequiredto

spur liberalized trade, as goodswould

circulatefreelythroughouttheterritory.

To work effectively, a Single Customs

Territory requires, among others, a

common legal framework; circulation

of goods with minimal or no border

controls;harmonizationofstandardsfor

goodsmoved through the Territory; an

interconnected payment system; and

collectionofCustomsdutiesatthefirst

pointofentry.

The introduction of SCT has led to a

cost reduction per container from US$

3,375 to US$1,731 for Kampala bound

cargoandfromUS$4,990toUS$3,387

forKigaliboundcargoonaverage,with

MombasaPortasthepointofentry.

Intra-regional trade in the EAC rose to

17%ofthetotalvalueofexportsin2013,

againasaresultof thesigningoftwo

protocols-CustomsUnionandCommon

Market.TheaverageannualGDPgrowth

rate of the region stands at 5% with

eachcountryperformingwithinaband

of4%to7%.

AddressingtheMembersofEastAfrican

Legislative Assembly in Bujumbura,

BurundiinMarchthisyear,Chairperson

of the EAC Summit and President of

UnitedRepublicofTanzania,H.EJakaya

Kikwete,said tradewasnow23%over

and above intra African trade. This

translates to a 300% increase in the

valueoftradefrom,US$2billionin2005

toUS$6billionin2014.

TheHeadofStateremarkedthatthese

numbers, coupled with the combined

EAC GDP of US$ 110.3 billion and an

average annual economic rate growth

of2.6%makestheregionaformidable

tradeandeconomicblocinAfrica∑

transport & communications

In the Infrastructure sub-sector,

steady progress is maintained on the

East African Road Network Project,

in particular the Mombasa - Katuna

road (Northern Corridor) and the Dar

es Salaam - Mutukula road (Central

Corridor),whichhavebeentakentothe

implementationstages.

Thecompletionofthere-constructionof

theArusha-Namanga-AthiRiverroad

demonstrates the commitment of the

Partner States in developing regional

infrastruture. Feasibility and design

studiescontinuefortheArusha-Holili

- Taveta - Voi road; and investment

preparationsfortheTanga-Horohoro-

Malindiroad.

In 2007, the East African Community

establishedtheCivilAviationSafetyand

Security Oversight Agency (CASSOA),

a regional agency to oversee the

implementationoftheInternationalCivil

AviationOrganization’s(ICAO)standards

and recommended practices towards

theenhancementofaviationsafetyand

securityintheregion.

Railway lines remain a critical factor

in socio-economic development the

worldover.TheEastAfricanregionhas

continued devoting utmost attention

tothesub-sector.AttheirSummitheld

inNairobi2012,theEACHeadsofState

gaveanupperhandtoplanstorevamp

andexpandtheregion’srailwaysystem.

Among projects the Summit approved

were the development of the Dar-es-

Salaam-Tabora -Mwanza railway link

andrehabilitationoftheVoi-Tavetaline

thatwilllinkKenyaandTanzania.Others

were rehabilitationandupgradeof the

Mombasa - Nairobi - Kampala railway

linetoStandardGauge;constructionof

theLamu-Isiolo-Moyale-AddisAbaba;

Isiolo - Nadapal - Juba and Nairobi -

IsioloStandardGaugerailwaylines∑

tourism & Wildlife Management

A major breakthrough for the region

hasbeeninthetourismsectorwiththe

launchof jointmarketing initiativesof

EastAfricaasaSingleTouristDestination.

EACparticipatedforthefirsttimeinthe

WorldTravelMarket(WTM)inLondonin

November 2006 and the Internationale

Tourismus-Börse Berlin (ITB) in Berlin

in March 2007. During each visit, EAC

Partner States held joint promotion of

theregionunderacommonexhibition

area.Sincethen,theeventshavebeen

held annually in London andBerlin in

NovemberandMarchrespectively.

The launch of the EAC Single Tourist

Visa inFebraury2014wasyetanother

milestonefortheCommunity.Thevisa

allows multiple entries into Kenya,

Rwanda and Uganda for 90 days at

US$100. A holder can visit the three

countries without added costs or

associated bureaucracy. While the

Single Tourist Visa is currently being

implemented by 3 Partner States,

the United Republic of Tanzania and

the Republic of Burundi are also

working towards adopting the visa.

This is envisioned to provide more

opportunities for tourists to explore

therichheritage,floraandfaunaofthe

region hencemultiplied effects to the

regionaleconomy.

Harmonisation of Policies and Laws in

the Tourism and Wildlife Management

sectorhasbeeninitiatedandongoing;

thisshallprovideaharmonisedground

foroperationsinthesector,withinthe

regionandintheinternationalarena.

In addition, a uniform criteria for

classification of accommodation and

restaurantsestablishmentsintheregion

is being implemented. This initiative

aims to establish global standards in

thehospitalityindustry∑ππ


EAC@15

political Federation

ThePeopleofEastAfricahaveenjoyed

close historical, political, social,

economic, cultural, lingual and other

ties for generations and acknowledge

thenecessitytomovebeyondeconomic

integrationtodeeperintegrationdriven

byaPoliticalFederation.

Irrespective of the individual national

identities, history and diversity, the

people of East Africa realize that

deeper integration would promote a

commonidentityanddeepenthespirit

of eastafricanness and offer the best

chanceofpursuingacommondestiny

andsurvivalforfuturegenerations.

Base on the historical integration

between EAC Partner States, the 12th

ExtraOrdinarySummitoftheEACHeads

of State directed the EAC Secretariat

to initiate the process of drafting a

ConstitutionforthePoliticalFederation

and develop a roadmap on what the

Constitution making process would

involve.

While efforts to fast track the Political

Federation are ongoing, the EAC is

implementingotherstrategiesaimedat

layingasolidfoundationforthePolitical

Federation. These strategies include

implementation of the programme on

GoodGovernancewiththeobjectiveof

strengtheningdemocraticgovernancein

theregion∑

SIGHTS&SCENES

expansion of the community

Afterthesuccessfulenlargementofthe

CommunitywiththeentryofRwandaand

Burundiin2007,theRepublicofSouthSudan

officiallysubmittedherapplicationtojoin

theEastAfricanCommunityinJune2011.

Subsequently,aVerificationCommitteefrom

theEACvisitedtheRepublicofSouthSudan

inJuly2012withtheaimofestablishing

herlevelofconformitywiththecriteriafor

AdmissionofForeignCountriesintotheEast

AfricanCommunityasprovidedunderArticle

3oftheTreatyEstablishingtheEAC.

Established in 2013 by the EAC Council of

Ministers,aHighLevelNegotiationhasstarted

the negotiationswith the Republic of South

SudanonHerapplication.Similarly,President

oftheRepublicofSouthSudan,HisExcellency

Salva Kiir Mayardit appointed a High Level

Committee in March 2014 to oversee South

Sudan’saccessiontotheEAC.

The Federal Republic of Somalia officially

submitted an application to join the EAC in

February 2012. The EAC has established a

Verification Committee and preparations

by the Government of Somalia for the EAC

VerificationMissionareongoing.

ππ


TRADE QUICKFACTS

◊ When?

InMarch2014,theEastAfricanCommunitySecretariat,inpart-nershipwiththeAfricanDevelopmentBank(AfDB)launchedtheEACPayment and Settlement Systems IntegrationProject (PS-SIP).

◊ Why?

PSSIPwasdevelopedtoboostthemodernization,regionalinte-grationofpaymentandsettlementsystemswithin theregionaswellastostrengthenharmonizedlegislativeandregulatoryfinancialsector;and,buildingcapacitiesinthePartnerStates.

◊ What you need to know about EAC-PSSIP

The23MillionUSDEAC-PSSIPprojectfundedbytheAfricanDe-velopmentBank(AfDB)isanintegralpartoftheEACFinancialSectorDevelopmentandRegionalizationProject’s(FSDRP)high-erobjectiveofbroadeninganddeepeningthefinancialsector.

Thiscameasasecondmajorattempttointegratetheregion’sfi-nancialservicesfollowingtheintegrationofEastAfricanPartnerStates’ (Kenya Uganda and Tanzania) Commercial Banks RealTime Gross Settlement (RTGS) system; reducing cheque clear-ancetimefrom22daystojustoneday.

TheEAC-PSSIPprojectwillseeBurundiacquireaRTGSsinceitdidnothaveoneatthetime(atacostof$USD1.8million).Conse-quently,itwillbeconnected,togetherwithRwanda,totherestoftheregion’spaymentandsettlementsystembyendoftheimplementationperiod.

It is aimed at complementing the integration of the regionalfinancialmarket infrastructure to facilitate theundertakingofcrossborderfundstransferinsupportoftheeconomiesoftheregionasawhole.

Theproject is a requirement for thedevelopmentand imple-mentationofsecure,efficient,reliableandintegratedpaymentand settlement systems to ensure efficient flow of financialtransactionswithintheMonetaryUnion.

Trainingprogrammesforbankemployeeswerecarriedoutwith-inthePartnerStatestoenablethemtransitionandadoptthenewpaymentmode.

π PSSIP Structure

Component1-IntegrationofFinancialMarketInfrastructure

Component2-HarmonizationofFinancialLawsandRegulations

Component3-CapacityBuilding

π Benefits of the EAC-PSSIP Project to East Africans

Δ Itwillenabletradersreceivecross-borderpaymentsseam-lesslyandwithouthavingtoincurthecostofcurrencyconver-sion.

Δ TheprojectwillpositiontheregionontherightroadtowardsattainingaMonetaryUnion.

Δ ByDecember2016,theprojectwillresultinawell-functioningregionalRTGS,acommonretailpaymentandsettlementsystem,acentralsecuritiesdepositoryandacorebankingplatform.

eac payment and Settlement Systems Integration project

THE COMMUNITY TEAM

eac journey raises hope for

industryLookingatthejourneythatwasandstillis,alotofgreatefforthasgoneintothe integrationprocessfortheregion.TheTreatyfortheEstablish-mentoftheEastAfricanCommunitywassignedonNovember30,1999.

ItsetavisionfortheeventualunificationoftheEACPartnerStatesandoutlinesa comprehensive systemof co-operationamongPartner Statesin trade, investments and industrial development,monetary and fiscalpolicy,infrastructureandservices,humanresources,scienceandtechnol-ogy,freemovementoffactorsofproduction,agricultureandfoodsecu-rity,environmentandnaturalresourcesmanagement,tourismandwildlifemanagement.

ThefirststageoftheEACintegrationcamewithenforcementoftheEACCustomsUnionProtocolinJanuary2005whichhadfiveyearstransitionalperiodforeliminationofinternaltariffs.

ThebenefitsoftheCustomsUniontothebusinessesarelevelplayingfielddue to implementation of CommonExternal Tariff against imports fromthirdcountriesenteringEAC,increasedutilisationofproductioncapacitiesduetolargerEACmarketthatwastosomeextentprotectedbytheCom-monExternalTariff(CET)andincreasedmarketopportunitiesintheEAC.

Economies of scale

Businesseshavebeenabletoincreasetheircompetitivenessduetoecon-omiesofscaleandproductionefficiency.

BenefitsaboundbutchallengesareintherightofresidenceframeworkinthatthecitizenofaPartnerStatecanonlyresideintheterritoryofanotherPartnerstateifhe/orsheisengagedineconomicactivityandwhenonestaysforalongtime,oneisnotguaranteedpermanentresidence.

Intheareaoffreemovementofservices,PartnerStatesagreedtostartwith seven sectors mainly professional and business, communication,distribution,educationservices,financialservices,tourism,travelrelatedservicesandtransport.

Kenyaopenedup its services sector since 2010 toother Partner Statesadoptedaprogressiveliberalisationbetween2010and2015.

Thereisaneedtohavestrongregionallawandpoliciesgoverningtradeinservices.ManufacturersappealtoPartnerStatestofastenre-aligningtheirnationallawswiththeCommonMarketProtocolinorderfortheregiontoreapfullbenefits.

The author is the Chief Executive of Kenya Association of Manufacturers.

BETTY MAINA

26 | The cOMMUNITY | Issue No 24

M-Pesa payments between Tanzania and

Kenya

Vodafone M-Pesa -

the mobile money t

ransfer and

payment service

that has transfor

med the lives of

millions of people in e

merging markets

- in March 2015

launched its

first interna

tional money t

ransfer cor

ridor

between Tanzan

ia and Kenya.

Individuals w

ill benefit fro

m

the low-cost of M-Pesa ag

ainst existing

internationa

l

remittance serv

ices between th

e two countries.

M-Pesa customers fr

om East Africa’s

two biggest

economies ca

n now use t

heir mobile phones f

or simple,

safe and sec

ure money t

ransfers be

tween the two

countries via

an establish

ed, combined

network of

180,000 agents.


Three little boys in Kigali are sharing a lollipop. They lick itin turns. The lollipop is imported, so 45% of its cost is dueto transport and allied costs. It might have been made inKenyaorTanzaniaorevenfurtherafield,andithastravelledthousandsofkilometresandseveralborders.Sowhicheveroftheboysboughtthattreat,he’spayingpartofthefreightclear-ancecharges,handlingcharges,insurance,fuelcostsandthesalaryofthetruckerwhogotittotheRwandancapital.

Logistics is a critical yet easily neglected component of eco-nomicdevelopment.Investmentinagricultureisfutileifthereisnosupplychaininplacetogetproducetomarket.Essentialmedicationisrenderedineffectiveif itcannotbetransportedintheappropriateconditions.Consumergoodscannotimprovepeople’slivesifthecostofimportingthemmeanstheyaretooexpensiveforpeopletoaccess.Yetindiscussionsof“sustain-abledevelopmentgoals”or“povertyreduction”,thereistoooftenatendencytofocusonheadlinetargetsandforgetaboutthemechanicsofdelivery.

InEastAfrica,transportandfreightcostsareamongthehighestintheworld,withfreightlogisticsexpendituremorethan50%higherperkilometrethaninEuropeortheUnitedStates.Thisextracost iscausedbya ‘logisticsgap’:a lackof infrastruc-ture,technologyandexpertiseaffectingeverythingfromroadnetworks, topaymentsystemsandwarehousing facilities. InlandlockedcountrieslikeRwandaandBurundi,thisgapisevenmorepronounced:transportcoststherecanreachashighas75%ofthevalueofexports.

TransittimesarealsohighinEastAfrica.The1600kmjourneyfromMombasa (Kenya) to Kigali (Rwanda) takes on average422hours – nearly 18days. Trucksmust stop at twoborderpostsandarelikelytoencounter45roadblocks,eachofwhichinvolvesdelaysandcosts,aswellaspotentiallydamagingthegoodsbeing transited. Incontrast,a truckcoveringasimilardistanceinEurope–drivingfrom,say,Rotterdam(TheNether-lands)toBudapest(Hungry)–wouldbeabletocompletetherouteinlessthanaday.

These high costs have a significant impact on the lives ofpeoplelivingintheregion.Transportationexpensesarepassedon to small businesses and consumers – indeed, the WorldBankestimatesthatlogisticscostsaccountfor40%ofconsum-erpricesinEastAfrica.Concretely,thatis145millionpeople,manyofwhomarealready living inseverepoverty,whoarepayingmoreforfood,householdgoodsandhealthcareprod-ucts.Added to thisare the largenumbersof smallbusinessownersunable togrow their companiesbecauseof thehighoverheadsconnectedwithdistributingorsourcingtheirgoods.

In order for East Africa’s exports to compete in the globalmarketplace,businessesoperatingintheregionneedtohavereliableflowsofinventoriessuchasrawmaterialsorfinishedgoods,withoutwhichbusinessesneed tocarryhigher levelsofinventorytodealwithuncertainty.Thisraisescosts,erodesefficiencyandresults inpoorcompetitivenessandhighpric-es.Incontrast,firmsthatcanrelyonefficientlogistics,mod-ernsupplychainsandjust-in-timedeliverysystemsaremore

efficient and cash generative and, therefore, more competi-tiveandmorereadilyintegratedintoregionalandinternationalglobalsupplychains.

This applies just as much to international companiesoperatingintheregionastolocalplayers.DHL,forexample,hasover3300servicepointsacrossAfrica–anetworkwhichithasdevelopedbyformingpartnershipswithsmallbusinesses,fuel retailers and supermarkets. The company has grown asuccessfulbusinessinAfricabyadaptingtolocalcircumstanc-es:theinformaleconomy,ruralpopulationandlargenumberofSMEs.BolloréAfricaLogisticsalsohasasignificantpresenceonthecontinent,investinginmodernisingportsinbothWestandEastAfricatoequipthemtohandlelargervessels.

For many companies, however, the prospect of entering amarketwithsomanychallengesisdaunting.Since2008,freightvolumesthroughEastAfrica’smajorports,MombasaandDaresSalaam,havegrownat8%and13%perannumrespectively.Withthisgrowthcomemajortransportandlogisticsinvestmentopportunities,tohandletheincreasedfreightvolumes.ButinordertoovercomethelogisticsgapinAfrica,weneedtotakean innovativeapproachthatdrawsonexistingprivatesectorexpertise.

It is innovation which has driven improvements in globallogisticsover thepastdecades. Electronicpayment systems,real-time tracking software, shared services for SMEs andimprovementstofleetvehiclesareallwaysinwhichthecosts– in both time and money – of transporting goods can bereduced. Tapping into this innovation and encouragingbusinesses to invest in pioneering solutions to logisticschallenges will have a major impact on the lives of peopleacrossAfrica,andwillmakedeliveringotherdevelopmentgoals–likehealthcareandfoodsecurity–mucheasier.

One example of an innovative approach to supportinternationalentrants toAfrica is theLogistics Innovation forTradeFund(LIFT).LIFTaimstoreducetheriskof investmentby providing a matching grant to international/local privatesector partnerships with transformative technologies orimprovedpractice thatwill have a significant impact on theefficiency of the transport and logistics sector across EastAfrica.Itwillco-investwiththeprivatesectorinprojectsthatmaybetooriskytoundertakewithoutsuchsupport–withthegoalofchallengingbusinesstodevelopandtestnewideastoreducethecostoftransportsandlogistics.

TradeMark East Africa has held several briefing sessionswith the East African and European logistics leaders on theLogistics Innovation for Trade Fund (LIFT) platform. Thesemeetingsbroughttogetherkeyplayersintheindustry–boththose interested in entering the region and those alreadyactive, including heads of major corporations – to discusspushing the boundaries of innovation in newdirections andimprovingtransportandlogisticsefficienciestoandfromtheEAC.

Frank Matsaert is the Chief Executive Officer of TradeMark East Africa

INFRASTRUCTURE INFRASTRUCTURE

FRANK MATSAERT

DeLIverInG DeveLopMent: why better logistics is

critical for africa’s growth


YOUTH YOUTH

Salma Ali Nassir

Regional Integration is not a new phenomenon, commu-

nication and trade existed way back in the ancient times,

during the famous travels of Marco Polo several centuries

ago,wheneconomicintegrationwasfirstexperienced.Since

thenthroughtrade,production factorsmovementandcom-

municationofeconomicallyusefulknowledgeandtechnology

hasbeengenerallyrising,makingglobaleconomicintegration

inevitable.

TherecentdevelopmentsbytheEastAfricanCommunity(EAC)

tointegratetheregionaleconomycouldnothavecomeatthe

righttime.Astechnologyaccelerates,wenowexistinhighly

integratedglobal,inter-regionaleconomies.

Thereareeconomicaswellaspoliticalreasonswhynations

pursueeconomicandpoliticalintegration.TheIMFreporton

theCapitalMarkets inEastAfricaexplains;whereas foreign

investors’transactionsoccupyfairamountsoftotalturnovers,

available statistics, though the coverage is restricted, indi-

cate that non-resident holdings of securities stand at sub-

stantiallylowlevelsintheEACcomparedtotheaggregateof

sub-SaharanAfrica.

Factors driving the regional integration

Generally there are three fundamental factors that have

influencedeconomicintegrationinitsentiredimensioninthe

region;throughhumanmigration,tradeingoodsandservices

and finally throughmovement of capital and integration of

financialmarkets.

Declining communication costs and technology are

transforming the arena for regional trade in services.

Improved technology of transportation and communication

have reduced the costsof transporting goods, services and

factors of production and of communicating economically

useful knowledge and technology. The tastes of individu-

als and societies have generally, regionally and universally

favored taking advantage of the opportunities provided by

decliningcostsoftransportationandcommunicationthrough

increasing economic integration. Public policies have also

influencedsignificantly thecharacterandpaceofeconomic

integrationalthoughnotalwaysinthedirectionofeconomic

integration

Making integration process a success

All member states should agree on a formula for sharing

jointrevenues(customduties,licensing)asthisstrengthens

economictrustandinthelongrunpoliticalunity.Theability

tomakejointdecisionsbasedoneconomicandpoliticalinter-

estsofallPartnerStatesasstakeholdersiskeytothesuccess

ofregionalintegrationefforts.

There must be a willingness to develop a coherent policy

system that supports permanent development of economic

unionsintheinterestofallstakeholderstates.Ensureimple-

mentationofthesepolicies-inordertospeeduptheprocess

ofeconomicandpoliticalunification.

Engaging citizens in EAC Integration process

The EAC has established different forums through which

various members of society are given an opportunity to

activelyparticipateintheintrationprocess.

Theyouthforinstanceactivelyparticipatethroughsocialme-

diasuchasFacebook,twitterandvariousblogs,andvarious

programmessuchastheYouthAmbassadorsprogrammeand

theuniversityStudents’Debate.

Civic engagement right from the grassroots should be

encouragedthroughcommunityandreligiousleadersaswell

asinstitutionsofhigherlearning.

Salma is a Travel Manager at Alive Safaris Limited in Entebbe, Uganda she is also a Freelance Journalist for the

Informer East Africa.

the eac I want:one youth’s perspective

32 33 eac In pIctUreS


PICTORIALPICTORIAL

KEEPING UP WITH TECHNOLOGY: (L-R) EAC Secretary General, Amb. Dr. Richard Sezibera; Republican Senator Mike Rounds and EAC Deputy Secretary General, Dr. Enos Bukuku share a light moment during a visit by a Congressional Delegation from the United States to the EAC Headquarters.

THANK YOU: Vice President of the Judges and Magistrates Vetting Board, Ms. Roseline Odode presents the Board’s Annual Report to EACJ Judge President, Hon. Justice Dr. Emmanuel Ugirashebuja.

SMILEY FACES:Former EAC Deputy Secretary General, Ambassador Dr.

Kigeyo Cheluget (c) spares a moment for the camera with EAC Staff Neema Mnzava (l) and Olive

Joy Tibenderana (r).

TOGETHER WE STAND:Flags at the EAC Headquarters fly at half mast in solidarity with our Kenyan brothers and sisters over the contemptible terrorist attack at Garissa University College.

WELCOME BACK WAZIRI: EALA Speaker, Rt. Hon. Dan Kidega congratulates Tanzania Minister of EAC Affairs, Hon. Dr. Harrison Mwakyembe, after he was sworn in as an Ex-Offico Member of EALA.


TRAVEL&TOURISM TRAVEL&TOURISM


TRAVEL&TOURISM


TRAVEL&TOURISM

EastAfrica’sSerengetiandMaasaiMarasafariparksareas

farifnotfurtherfromtheEbolaoutbreakinthewestofthe

continentthanmuchofEuropewhichsuppliesthetourists,

butyou’dhardlyguessthatfromtheslumpinbookings.

In Tanzania andKenya, tour operators say tented camps

and luxury lodgeswhere lion and elephant saunter past

aresurvivingonvisitorswhohavenotyetwrittenoffthe

wholecontinentbecauseofanoutbreakthatstruck5,000

kmaway.

“Theprobabilityofdyingfromatreefallingonyourheadis

probablyhigherthangoingonasafariintheSerengetiand

catchingEbola,”said JohnCorseofNomadTanzania,one

ofwhosecampsoverlooksplainswherewildebeestmake

the annual GreatMigration, oftendescribed as anatural

WonderoftheWorld.

Tanzania - which relies heavily on tourist dollars from

visitstogamereserves,MountKilimanjaroorIndianOcean

beaches -wasaiming for a recordyear to top themore

than1millionvisitorswhocamein2013.Thatnowlooks

apipedream.

TheHotelsAssociationofTanzania,representing195sites

nationwide, said business is down 30 to 40 percent on

theyearandadvancedbookings,mostly for2015,are50

percentlower.

Next door Kenyahasbeenhurt too. Its tourism industry

wasalready reeling fromaspateofattacksby Islamists,

including2013’sattackontheupscaleWestgatemalland

more recent incidents on the coast. Ebola added to the

pain,makingdollarsmorescarceintheforeignexchange

marketandweakeningtheshilling.

Safarisarevitaltobothnations,whoseothermainexports

are agricultural produce, because they tend to draw

wealthier visitors, ready to splash out on luxuries, like

sundownersafteragamedriveatsiteskilometersfromthe

nextsettlement.

“A safari holiday behaves like a form of luxury goods:

peopleconsumemoreofitwhenthey’refeelingsafeand

wealthy,” saidCorse,whosepackagescombiningaweek

or so in the bush followed by a few days on Zanzibar’s

beachescost$8,000to$15,000aperson.


Ebola-Free so far

Particularly galling to some is that neither Kenya nor

Tanzania,norindeedanyotherEastAfricannation,hashad

asinglecaseoftheEbolavirus,whichhaskilledthousands,

thevastmajorityinLiberia,SierraLeoneandGuineaonthe

oppositesideofthecontinent.

The United States and Spain,meanwhile, have had cases

ofinfectionontheirsoilandalsodeathsfromthedisease.

Madrid stands less than 4,000 km from Liberia’s capital

Monrovia, a shorter distance than the game reserves of

KenyaandTanzania.

Several East African nations have imposed restrictions on

travelerscomingfromafflictedareas.

Kenya Airways halted flights in August 2014 to Monrovia

andFreetownafterKenyawasdeclareda“high-risk”zone

because Nairobi is one of Africa’s transport hubs. Some

EuropeanairlinesstillflytoafflictednationsofWestAfrica.

When nine Kenyans returned to Nairobi from Liberia in

October2014,theywereisolatedforhoursandtestedbefore

being allowed to go home, even though they showed no

feverorotherEbolasymptoms.

“Our problems started with insecurity long before Ebola

became an issue, but Ebola of course has worsened it,”

saidSamIkwayeof theKenyaAssociationofHotelkeepers

andCaterers, referring to 2013’sdeadly attackby Islamist

gunmen on a Nairobi shopping mall followed by other

assaultselsewhere.

“Ourmembershavereportedthattouristsareveryconcerned

andhavekeptaskingandseekingassurancesthatKenyais

Ebola-free,”hesaid.

The SerenaHotels,which runshigh-end safari lodges and

beach resorts in East Africa, said bookingsweredownby

as much as 30 percent in 2014, from the last good year

of2012. In2013,worriesaboutelectionviolenceinKenya,

whichprovedunfounded,alsodeterredvisitors.

Debunking Rumors

ProblemsforKenyaandTanzaniahaveknock-oneffectson

nearbyUgandaandRwanda,whicharealsopartoftheEast

AfricanCommunitybloc.

Rwanda, whose tourist industry in particular relies on

expensivetrekstoseeraremountaingorillas,deniedentry

totravelerswhohadbeentothethreeWestAfricannations

intheprevious22days.Ebola’sincubationperiodisthree

weeks.

Tanzania,wheremostvisitorscomefromBritain,Germany,

the United States and Italy, launched a website in early

NovembertoeducatevisitorsaboutEbolaanddebunkany

rumors.

“WesympathizewithourbrothersandsistersinWestAfrica.

Butwedon’thave itandwearedoingeverythingwecan

toensureTanzaniaremainsEbola-free,”saidLathifaSykes,

chiefexecutiveoftheHotelsAssociationofTanzania.

“Africaisnotonecountry.Africaisacontinent,”shesaid,

voicingthefrustrationsofmanyAfricanswhosaypeoplein

theWestoftenforgetAfrica’sdiversityandvastsize.

Still, not all tourists are staying away. At the Sarova

WhitesandsBeachResort,nearMombasa,44-year-oldWilbur

AprilfromLondonshruggedofftheworries.

“OfcourseweaskedaboutKenyabeforewecamebecause

therewasbadpublicityaboutthecountrybackhomeand

wewantedtobesure,”hesaidfromhissun-bedsippinga

glassofredwine.

“Recentlyitwasterrorism,”hesaid.“NowitisEbola,andit

isnotevennearKenya.”

Additional reporting by Joseph Akwiri in Mombasa, Elias Biryabarema in Kampala, Clement Uwiringiyimana in Kigali;

this article was first published by www.reuters.com

Ebola fears ripple across continent to hurt East

African tourismEDITH HONAN



38 | The cOMMUNITY | Issue No 23 Issue No 23 | The cOMMUNITY | 39

TheEastAfricanCommunitymemberstates(Burundi,Kenya,

Rwanda,TanzaniaandUganda)viewtourismdevelopment

notonlyasakeypillarfornationaldevelopment,butmost

importantlyasamechanismtoalleviatepoverty,generate

foreign revenue for the government, and contribute to

wildlifeconservation.

With exception of Kenya and Tanzania, which also have

awell-developedcoastaltourismsegment,theremaining

East African Community countries are landlocked, with

nature and wildlife remaining as the only core tourism

assets.Yet,theystillregardtourismasakeycontributorto

transformingtheireconomiesintheyearstocome.While

this sounds like a honorable aspiration, most tourism

revenues have been generated through narrow tourism

products,suchaswildlifeandnationalparks,basedona

fewspecies(i.e.thebigfiveandthemountaingorillas).

Other challenges affecting the potential for tourism

to flourish include political stability and governance,

infrastructuredevelopment,servicestandards,andhuman

capacityjusttonameafew.

This article briefly looks at the current top tourism

destinationswithinEastAfrica.

Current developments within the Tourism Sector in East Africa

ThreePartnerStatesoftheEastAfricanCommunity(EAC)

namely;Kenya,RwandaandUganda,under theNorthern

CorridorIntegrationProjectsinitiative,waivedvisafeesfor

foreignresidentslivingwithinthe3countriesinorderto

allowthemeasieraccesstotheregion’sdiverseoffering.

The waiver agreement is part of the Joint Communiqué

thatPresidentsUhuruKenyattaofKenya,PaulKagameof

Rwanda, and Yoweri Museveni of Uganda signed at the

8thNorthernCorridorIntegrationSummitheldinNairobiin

Decemberlastyear.

Known as the East Africa Tourist Visa (EATV), foreign

residentsnolongerhavetopaythe$100feefortheVisa

thatisvalidforninetydayseffectivefrom15thDecember,

2014. The single tourist visa will provide an amazing

opportunityforresidentsstayinginthethreePartnerStates

toexplore the immensediversityofwildlife, landscapes,

cultures,andheritage,amongotherrenownedattractions

eitherforweekendgateways,corporateretreatsorannual

familyholidays.

Damaris is a Media Programme Assistant at the EAC Secretariat

DAMARIS WANBUI NYAGA

treasures of east africa

The Maasai Mara

Kenya

If you want to see the ‘big five’ in one morning,

Maasai Mara in Kenya is the place to be. During the

dry season from July to October the wildlife

spectacle is unparalleled. Nowhere else can you watch

the annual migration of over a million wildebeest

from a hot-air balloon. The ‘Mara’ is as close to

“Out of Africa” as you can get.

Virunga Mountains (Tracking Gorillas)

in Uganda and Rwanda

With only about 700 mountain gorillas left in the

world, seeing them in the wild is something only

a few people will ever have the chance to experience.

About 300 mountain gorillas inhabit an extinct

volcanic region called the Virunga Range along the

borders of Rwanda, Uganda, and the DRC in East

Africa. The time you are allowed to spend observing

the gorillas is limited, but I can guarantee the hour

spent sitting and watching these incredible animals

will be one of the best you’ve ever had.

Beaches along Lake Tanganyika

Compared to the rest of the East African region (Kenya, Uganda, Tanzania and Rwanda), Burundi has tropical climate all year round, bird lakes which are homes to various birds’ species and are well distributed, especially on the north of the country. In addition to this, culture is a valued heritage that has been well preserved for many generations. Last but not least, the beaches along the famous Lake Tanganyika are the main eye-catchers of Burundi.

Ngorongoro Conservation Area

Tanzania

The Ngorongoro Conservation area in Tanzania

includes the world’s largest crater, which acts as a

natural enclosure for almost every species of wildlife

found in East Africa. The Maasai still live within

the conservation area, and it’s also home to Oldupai

(Olduvai), where some of man’s earliest remains have

been found.


TRAVEL&TOURISM


TRAVEL&TOURISM


Dressed inabright red shukawith strandsof equally colorfulbeadsaroundhisneck,Peter Lesongoyo,27, standsalong theroad leading to Engaresero village in northern Tanzania, des-peratelywaiting for tourists. Unexpectedly, the tall and lankyMaasaimoranitogetherwith20orsopeersaresilent,withnostrengthtoshoutorperformthetraditionalMaasaidanceinthesavannahscenery.

Eachhasanunpleasantstorytotell.Lifeisunbearable.Touristshavesuddenlygiventheirvillagethecoldshoulder;forreasonsneitherLesongoyonorhispeersknow.“I’mgreatlyworriednotonly formyself, but also for the entire community because iftouristnumberskeeponfalling,wewillperishofhunger”saysLesongoyo.

Indeed, as you travel fromArusha to the LakeNatronor LakeEyasisprawlingbasins,youenteraworldofprivatehorror,whereindigenous communities struggle to survive and cope with amodernlifestyle.

Hadzabe,MaasaiandTatogaethnicgroups, thesurviving rem-nantsoftherelicofthehunter-gatherersandnomadicpastoral-istsonearth,primarilyliveonwhatnatureprovides.Theirstaplefoodsarewildfruits,honey,bushmeat,andmilk.

OwingtoClimateChangeandothermoderndevelopments-suchas commercial agriculture and mining - which have depletedthickvegetation,theindigenouscommunitieshavebeenforcedtoabandontheirtraditionalwaysinordertosurvive.

In theirefforts toadapt, thecommunitieshavebeenengaginginanewtrade-CulturalTourism,analternativeeconomicactiv-ity,tokeeptheirlivesgoing.Theyselltraditionalitemssuchasbeadjewelryandtraditionaloutfits.Untilrecently,thisnewtradeenabledendstomeet.But,thenewbusinessthatbroughtraysofhopeisnotwithoutstorms.

Nuisance fees

TouriststravellingtoLakeNatronandOldonyoLengaihavesince2012 been subjected to a $40 transit fee. Similarly, Monduli,LongidoandNgorongorodistrictcouncilshaveimposedvariousunspecifiedchargesoneachforeignvisitor.Touristspay$10atEngarukagateinMonduliDistrictCouncil,another$10atOldon-yoLengaiforLongidoDistrictCouncil,whileNgorongoroDistrictCouncilcollectsashighas$20atEngaraserobarrier.

AlexisCronin,aforeigntouristdoesn’tunderstandwhyheshouldpay$40asatransitfeeinadditionto$25entryfee.“Itdoesn’tmakesenseformetopay$40fornothing,justontransit,Idon’tknow,butformethisisunfair.Iwouldn’tmindifIwouldpaythesemoneydirectlytothecommunity”MrCroninsays.

Asaresult,touroperatorshavesinceMarch1,2013,unanimous-lyexcludedtherouteontheiritinerariestoprotestagainstthelocalauthorities’fees.

Final blow

CoordinatorofculturaltourismatMtowaMbu,WesleyKileosaysthelocalauthorities’decisionisafinalblowtotheindigenouscommunitieswhoselivelihooddependonculturaltourism.

MrKileosaystheculturaltourismcreatedemploymenttonearly600youthintheformoftourguidesaswellasworkersatvariouscampsitesandlodgessurroundingLakeNatron,EngarukaruinsandOldonyoLengaiMountain.“Thisarea isdry,withnoothermeaningful economic undertaking other than cultural tourism.Theintroductionofnumerousfeesisthefinalblowtothesein-digenouspeoplelivingalongtheroute,”hesays.

WithClimateChangeanditsrippleeffectshittinghardnorthernTanzania,indigenousyouthsinthevillagesaroundtheseattrac-tions teamedup into groups and took up Cultural Tourism asa trade. Each touristwishing tokill ahalfor fulldayvisitingthewaterfalls,EmbaluluCrater,theRiftValleyescarpment,LakeNatronshore,Orpurbabooncaves,thefootprints,andathehotspringswouldpay$25asanentryfee.

Sadly, tourists have unexpectedly given the village the coldshoulder,astheirnumberskeepondecliningeachdayduetothemyriadof fees.AhighrankingofficialwithEngareseroculturaltourismproject LazaroNdirimasaysvehicles taking tourists tothesesiteshavefallenfrom15toamere6perweekonaverage,a60percentdecline.“in2013wegot1,800touristsearningus$45,000,in2014wedidnotgetto1,000becausetouristsjustdidnotcome,”MrNdirimaexplains.

Lake Eyasi Cultural project coordinator JosephNyamsagori hasthesamestory, saying in2014 theyprojected to receive2,500tourists’vehicles,butmerelyhitthe1,000mark.

Pro-poor

Thepro-poorculturaltourisminitiativeshandlejust30percentof the 1.2million touristswho visit Tanzania’swildlife-rich-at-tractions annually. Thismeans the segment is responsible fornearly360,000tourists,directlyearningthecommonTanzaniansroughly$32.4millionannually;howeverexpertsseethisamountinsignificantcomparedtoitspotential.

Lookingbeyondthenumbers,expertssaythatthisisatypicalexampleofasuccessfulmodel,inwhichtourcompaniescouldborrowaleaftotransferthetouristdollarstothepoorpeopleintheregion.

Culturaltourismifwelldevelopedcanattractmillionsoftour-iststoEastAfricangiventheculturaldiversitytheregionboasts.CountriessuchasFrance,EgyptandMoroccorelyonculturaltourismsolelyandhaveattractedmillionsoftourists.In2013alone,Frenchculturaltourismattracted87.3millioninternation-altourists,Egypt9.1millionandMorocco10million,generatingamulti-billion-dollarindustry.

How excessive thirst for tourists’ dollars is killing

cultural tourism ADAM IHUCHA



East Africa: a true single tourist destination

BRENDAMUGAMBI

Thepromotionof theEACasaSingleTourismDestination isanongoing task

andinnovativestrategiesarealwayssoughttoachievethisobjective.TheEast

African Community Partner States of Burundi, Kenya, Rwanda, Uganda and

Tanzania have together set a pace in achieving fundamental stages of

regionalintegrationinthetourismandwildlifemanagementsectors.Promotingthe

Region as a single tourist destination is a task addressed from within and

beyondtheRegion.ThewondersandopportunitiestheRegionoffersaretobe

enjoyedbyvisitorsandcitizensalike.ππ




ππ In this respect theoperation-

alization of the Common Market

Protocol for example, will facilitate

thefreemovementofpeople,skills,

goodsandservicesandwillbeakey

anchortoencouragingintra-regional

tourism.Anadditionalmilestone is

trade andmovement of goods and

services especially favoured in the

hospitalityandtravelindustryisen-

hancedbytheremovalofnon-tariff

barriersandthereforetheexpansion

ofafreetradearea.

As the Common Market Protocol sup-

portsEastAfricanCitizens,collaboration

in the tourism sector includes harmo-

nizing hospitality services, policies and

lawsintheregiontosustainablyutilize

our resources. Harmonization of hospi-

talityservicesincludesafocusonquality

ratherthanquantity,whiletheharmoni-

zationofpoliciesandlawswilldevelop

mechanismsonthemovementofpeople

andskillsinthisvibrantindustrytoen-

surethestandardsofqualityinhospital-

ityaremetandthepromotionofaSingle

TouristDestinationisachieved.

It is thus important tonote thataswe

worktowardsopeninguptheRegionand

naturallyincreasingtheopportunitiesin

thesector,wealsoneed tostrike

the delicate balance between de-

veloping creative “products” that

willcontinuouslyattractvisitorsto

theregionandsustainingthenatu-

ralresourceswehavebeenblessed

with. This requiresmeasures that

will ensure the conservation and

sustainableutilizationoftheflora,

fauna and other tourist sites in

the region by harmonizing poli-

ciesfortheconservationofwildlife

within and outside protected ar-

eas, adopting common policies on

wildlifemanagementanddevelop-

ment, joint efforts in controlling

andmonitoringencroachmentand

poachingactivities,commonuseof

trainingandresearchfacilities,and

lastlydevelopingcommonmanage-

ment plans for trans-border pro-

tectedareas.

A clear example that affirmsPart-

nerStates’commitmenttosustain-

able utilization and conservation

is theeffortsbeingmadetowards

harmonizingandstrengtheningre-

gional wildlife legislations toward

the fight against the illegal trade

in wildlife and wildlife products.

Imposing tougher penalties, en-

hancing ranger’s capacity and welfare,

protecting the migration corridors from

human settlement and developing com-

munity based programmes have been

addressed as they would contribute to

ensuringthattheEastAfricanCommunity

remainsthelastfrontierofwildlifeliving

in its natural state. Furthermore, there

areincreasedcross-bordereffortsforex-

ampleintheMara–Serengetieco-system

between Tanzania and Kenya that has

seenanincreaseoftheelephantpopula-

tion.Butmoreso,allPartnerStatesare

committedtoimplementinginternational

agreements to protect wildlife for the

benefitofmankind.

Safetyandsecurity in the regionaffects

thetourismsectordirectly.Takingnoteof

therecentterroristattacksinpartsofour

Community,theMinistersresponsiblefor

tourismagreedthatPartnerStatesshould

jointly address the negative image por-

trayed and subsequent negative travel

advisoriesissued.

The strategies agreed when addressing

negativetraveladvisoriesareto:

1. adopt a proactive approach to pre-

empt the issuing of such negative

travel advisories suchas consulting

safety and security aspects in each

country by giving relevant updates

on travel information within East

Africa and to the interna-

tionaltravellers;

2. endeavour to report hon-

estlyandusetheisolation

strategy,toassurethepeo-

pleoftheCommunityand

theirvisitorsthatadequate

securityisprovided;and

3. addressanynegativetrav-

el advisory (travel warn-

ings) jointly as a Com-

munity through a general

statement issued by the

East African Community Secretariat

throughtheSecretaryGeneralto:

a) Whoever has issued the nega-

tiveadvisories;

b) PartnerStatesMissionsAbroad;

and

c) Anyglobaltourismforum/event

thatwillbeabletocommunicatethe

messageeffectively.

4. encourage Tourism Trade Associa-

tionstoensurecontinuousdialogue

with all Commonwealth member

countries and to advise Common-

wealth member countries to notify

theSecretariatbeforepublishingany

travelwarnings.

With this, the tourism sector shows

promise for greater returns if jointly

and collaborativelymanaged at regional

level.Thenaturallyprovidedproductdi-

versityisstillpopularlysought,however,

the need to develop “other non- tradi-

tional”productssuchasourrichcultural

diversity,wellnessandlifestyleproducts

isaproposedwayforward.

East Africa is indeed a Destination of

WondersandOpportunities.

Many might be discovered but much

manymorelayundiscovered…and prob-ably in plain sight.

The author is a Tourism and Wildlife Programme Assistant at the EAC Secretariat



TRAVEL&TOURISM

MyrrhofcriesfromthebitterpastovershadowtheKibimba

Memorial site in Gitega, Burundi where, in 1993, 75 high

schoolTutsistudentswereabductedfromanearbysecond-

ary school, locked in a gas station and burnt alive. As I

enteredthenarrowdoor,Iwastransportedthroughamo-

tionpicturedepictingimagesoftheinnocentvictimstightly

clinchedtogetherinacirclewithpetrifiedfacialexpressions

thatruminatesthemagnitudeofthegenocideencroaching

ontheirfinalbreaths.

Feelingalittlebitsuffocatedmyself,Iquicklymakemyway

backoutsideforfreshair.JustasIamcatchingmybalance,

myeyes lookup to the skiesandmake contactwith the

words“PlusJamisCa!(NeverAgain!),”inbrightgreenblock

lettersthataremountedatthefrontofthebuilding.Aftera

two-minutedownpouroftearsrunningdownmyface,Iwipe

myeyesandheadback into the car tomakea two-hour

journeybacktoBujumbura.

Colorful Burundi: most kept secrets

Cultural Norms

Burundi,ahiddengemfullofscenictreasures,liesinthe

centralcorridorofEastAfrica.Bestknownforitsrichflo-

raandfauna, this famousAfricandestinationhas lotsof

adrenalinefilledactivitiesfornatureloversandadventure

seekers.WiththeveinsofLakeTanganyikasnakingthrough

itsvalleys,thecanvasbackdropofthesurroundingmoun-

tainsandtheevergrowingspeciesofcoloredcichlidfishes,

marinesnailsandgastropodsonlyemanatesthebeautyin

itsseemingly-undulatingcoastalplains.

TherichcultureofBurundiisdeeplyrootedinitsowntra-

dition though the influence of the neighboring countries

cannotgounnoticed.Familybonding,music,dance,poetry

aremore than justan integralpartof the livesofmany

Burundis.Fromthewidecollectionofthemusical instru-

ments,weapons, and statuespreserved inhermuseum,

onewillgetarealfeeloftheBurundicultureandtradition.

Breathtaking Tranquility

KibiraNationalParkistheperfectgatewaytothecountry’s

sceniclandscapes.TheKibiraforestinBurundiisbustling

withsomeuniquewildlifespecies; theredcolobusmon-

keys,baboons, chimpanzeesand the crestedMangabeys

aresomeoftheamazingcreaturesjustwaitingtoreceive

youattheirdoorstep.

Themountainchainsurroundingtheparkhidestheawe-

someviewof the thermalsprings,butwhileheading to-

wardsthepark,theteaplantationsofTezaandRweguraof-

fersomeofthebestscenicattractions.Thepreservationof

theKibiraNationalParkismainlydoneforeco-tourismasit

isthesinglemountainousforestintheentireBurundiarea.

BururiNaturalReserveliesontheextremesouthernedgeof

Congo-NiledivideandisoneofthepopularBurunditourist

attractions.BururiForestNaturalReserveisatinypatchof

forestlandthatliesonthewesternportionofBururitown.

Thereservestretchestoabout3,300haoflandandtherest

oftheareaiscoveredbythesemi-evergreenforest.

Nestled in the northwest of Bujumbura, Rusizi National

Parkiscommonlyknownas“ParcNationaldelaRusizi.”

Theparkisdividedintotwoparts;thelargerpartlieson

theeasternbankofRusiziRiverwhereasthesmallerpart

forms the delta of Rusizi at the entrance point of Lake

Tanganyika.

WildlifespeciesinRusiziNationalParkincludehippopota-

mus,antelopesandmonkeysalongwithnumerousspecies

ofcolorfulbirds.Amongallthepopulartouristattractions

ofBurundi,theSagaBeachisthemostfamousoneandthe

adjacentresortmakesitallthemoreinviting.

ThesereneandtranquilatmosphereontheSagabeachis

extremelyrelaxingandrefreshingandisidealafteralong,

tiresomeday.Ashowerintheheavenlywaterofthesenat-

uralwaterfallsactsasarefreshingtreattothebody.The

adventuroustravelerwillfallinlovewiththeuniqueness

ofthiscountrylesstravelled.

Alice is a Communications Expert with the EAC-GIZ Programme

TRAVEL&TOURISM

ALICE MARO

Copy

right

© dA

vE P

rOFF

Er


Yes, there was a discouraging wrangle in the East AfricanLegislativeAssembly(Assembly)andyes,al-ShabaabattacksagainraisedconcernsoverKenya’saswellasthewiderEastAfrican Community’s security. But the Community’s overall2014performancehadsomepositiveswhoseendproductim-pactsonthefutureofthefive-memberregionalbloc.

The12monthsof2014sawnoviolentinter-stateconflictand,in away, the EAC is open for business in 2015.Minus al-Shabaab’s terror in Kenya, the relative peace and stabilityremainscriticalinattractinginvestmentstotheregion.

Quality Assurance

InFebruary2014,theEACissuedregulationstoenhancetheoperationalizationoftheEACstandardization,qualityassur-ance,metrologyandtestingAct(SQMT),tofacilitateregionaltrade.Theregulations,amongothers,willprovideconsumerconfidenceofproductstradedintheregion.

Common Market Scorecard

Thatsamemonth,anewtool,aScorecard,toassessprogresstowarddevelopingtheEACCommonMarketwaslaunched.It

measuresPartnerStates’compliancetothefreemovementofcapital,servicesandgoods.At its launchinArusha,EACSecretaryGeneral,Amb.Seziberasaid:“Thescorecardisnotabout pointing fingers, or apportioning blame. It is aboutidentifyingareaswherewearedoingwellandstrengtheningthem”.In2015andbeyond,theScorecardwillhelpidentifyareas where reforms are required tomeet expectations inthe bloc’s integration agenda. It is expected to also fosterpeerlearningandfacilitatetheadoptionofbestpracticeintheregion,thushelpingfortifytheregionalmarket,growtheprivatesectoranddeliverbenefitstoconsumers.

Travel and tourism

Also,tourismofficialsfromKenya,TanzaniaandUganda,mettomulloverthornyissuesthatafflictedthesectorsince2010.That the meeting happened was in itself an achievement.Outstanding among the issues that the ministers haggledoverwasthatcountriesweredenyingentryoftouristvehi-clesregisteredinothers’;crossbordercooperationinwildlifelawenforcement;andharassmentofdriverguidesatbordercrossings;aswellasdisparitiesinfeescharged.Ironingouttheseissueswillimpactonthebloc’stourismsectorin2015andfurther.


Sustainable financing

The urgency and importance of cutting donor dependencewasreiteratedin2014.Ofthe$117.5million2013/2014bud-get,EACcountriescontributed$37.2millionanddonors,$79.8million.InMarch,Amb.SeziberaurgedtheSummittoadoptthealternative financingmechanismof1%ofcustomsrev-enueasearlierproposedsoastoprovideforfinancialsolidar-ityandequity,keytenetsoftheintegrationprocess.

Some countries arenowmobilizingdomestic resources, ei-ther through infrastructure levies, or through setting asidemonies from their ownbudgets,” said Sezibera. “Secondly,becauseofgoodmacro-economicmanagement,ourcountriesareabletoborrowfromcapitalmarkets.Rwandahasissuedbonds.KenyadidthesameandTanzaniawilldothesame”.

Payments and settlements

Furthermore, theMarch launchingof theEACPaymentandSettlementSystemsIntegrationProject(EAC-PSSIP),animpor-tantproject in lightof theproposedEastAfricanMonetaryUnion(EAMU),thethirdstageofEACintegration,wasimpor-tant. The US$23million EAC-PSSIP project aims to enhanceconvergenceandregionalintegrationofpaymentandsettle-mentsystems;strengthenaharmonizedlegislativeandregu-latoryfinancialsector;andbuildcapacitiesinEACcountries.

The project, said Dr. Enos Bukuku, EAC’s Deputy SecretaryGeneral (Planning and Infrastructure), is a requirement forthe development and implementation of secure, efficient,reliable and integrated payment and settlement system toensureefficientflowoffinancialtransactionswithintheMon-etaryUnion.

EPAs

ThenegotiationsonEconomicPartnershipAgreements(EPAs)with the EU that started in 2007were concluded. It is thefirsttimethattheCommunitynegotiatedtermsoftradewithEurope and the deal is better than nothing. Even thoughtherealbenefitstoEACwillhavetobeseenratherthanex-pected,concludingthedealwassignificantasitendedthelong-drawn-outandwearisomeprocessofnegotiations.Thedeal, it ishoped,will eventuallyprovide legal certainty forbusinesses and open a long-term perspective for free andunlimitedaccesstotheEUmarketforproductsfromtheEAC.

Trade and Investment Hub

InNovember, theEastAfricanTradeand InvestmentHub,aregionalprogrammeintendedto increasefoodsecurityandrampuptradeandinvestmentbetweentheUSandEastAf-rica was launched. The Hub, it is hoped, will assist EAC’sprivatesector toengagewithgovernment in findingpracti-calsolutionstoconstraintstotradeandinvestment,aswellasbuildawarenessaroundopportunitiesforAfricanandU.S.firms to increase trade,expandbusinesspartnerships,andinvestineastAfrica.

The Bad News

Yes, the bloc largely stood on the weak side during 2014.For one, the ill of corruption remained a nagging burden.EACcountriesgenerally continued toperformpoorly in thefightagainstcorruptionwithnonesurpassingthe50percentthresholdinthelatestglobalcorruptionperceptionindexby

TransparencyInternational(TI).TheWorldBank’sDoingBusi-ness2014reportalsopaintsadamningpictureoftheregionalbusinessclimate,withtheexceptionofRwanda.

Akeyobstruction in the regional fightagainstgraft is thatregional anti-corruption agencies held opposing views onwhethertogiveprosecutorialpowerstotheirrespectiveanti-corruptionagencies.ThesigningoftheEACProtocolonPre-venting and Combating Corruption was hampered by suchdifferences.

Beyond2014,tocreatejobs,thePartnerStateswillneedtojointlytakefurtherstepstotacklecorruption,simplifybusi-nessregulationandcreateavibrantregionalcommonmar-ket,amongothers.

Frosty relations

It remainsunclearhowtheheartof inter-EAC relationswillbeatafterTanzaniaandBurundiholdtheirrespectivepresi-dentialelections,thisyear.Butitisclearthatregionallead-ers’ relations and camaraderie matter for the integrationagendatothrive.Withouttheleaders’amity,ascenarioakinto thatwhich led to theEAC’s1977collapsewould, regret-tably,beinevitable.

External shocks

Besidesotherunpredictablesocio-economicexternalorglob-alshocks,thewaveofviolenceandinstabilityinthebloc’sshakyneighbors,especiallytheDRCongo,SouthSudanandSomalia,isanothercauseforconcernin2015andafar.Peaceand stability in these neighborswould by the same tokenimplysocio-economicgainsfortheEAC,andvice-versa.

Thetwo-yearoldtit-for-tatviolenceintheworld’syoungeststatewhich seceded from Sudan in 2011, for example, didnotonly claim thousandsof lives,displace thousandsoth-ersandwreckthenascentoileconomybutalsodirectlyhittheeconomiesofUgandaandKenya,someofSouthSudan’sbiggesttradingpartners.Apartfromtheeffectoncross-bor-der trade,Ugandasent troopstoassistPresidentSalvaKiiragainstrebelsledbyhissackedvice-president,RiekMachar,forcingthecountry intowarspendingwhichdefinitelyeatsintoitsdevelopmentbudget.

Ontheotherside,sincetheOperationLindaNchibegan in2011, Al-Shabaab vowed retaliation against Kenya. Burundi,whichhasprovidedthesecondlargestcontingenttotheAf-ricanUnionMissioninSomalia(AMISOM),hasalsoreceivedthreatsfromthemilitants.Somalia’sinsecurityhasnotonlyaffected itshopeof joining theEAC. IthampersEAC’seco-nomic progresswhen the bloc is forced to reinforce secu-rityat theexpenseofentirely focusingandpursuingmuchneededeconomicdevelopment.

Analysts say that only deepening security cooperation ineliminatingAl-ShabaabandothersecuritythreatscandeliveranenormouspeacedividendbenefitingnotonlyKenyaandSomalia,butalsotheentireEACin2015andbeyond.

James is a seasoned Journalist based in Kigali. This article was first published by the News Times

JAMESKARUHANGA

eac had a Spirited 2014, but What Does the Future hold?

COMMENTARY COMMENTARY


COMMENTARY COMMENTARY

East Africa’s prosperity Gap

East Africa appears to be doing well. Annual economic growth rates are averaging around 6 percent, and trade and foreign investment are rising. Some countries, such as Uganda and Tanzania, have large energy-resource endowments. In Kenya, the region’s largest economy, finance and new consumer service industries are propelling growth – an important economic evolution.

Look deeper, and it is difficult not to worry. Across the region, the richest are the overwhelming beneficiaries of economic growth, while the poorest are falling further behind.

Numbers tell part of the story. The richest 10 percent of East Africans have an average annual income of US$ 2,100. They tend to live in cities, work in industry or professional services, and send their children to private schools.

By contrast, the bottom 40 percent of East Africans make US$ 225 a year – significantly below the threshold of US$1.25 a day that development experts use to define extreme poverty. These poorest of the poor, are mostly in rural areas. They live without basic utilities such as power, clean water and sanitation. Their children have a 40-80 percent higher change of dying before their fifth birthday.

Some problems cut across the extreme-poverty divide. Childhood stunting is on the rise everywhere, affecting 42 percent of the region’s 24 million under-five children. All East African countries have achieved 100 percent primary school enrollment, but only 28 percent of primary school students in Uganda, and 49 percent in Kenya, go on to secondary education. In Rwanda and Uganda, 88 percent of secondary school students pass their national exams; in Tanzania and Kenya, the proportion in less than 30 percent.

10%

East African populance considered the richest

24mil The number of children under five years old in the region

40%

East Africans at the botton of the pyramid

28% Students joining secondary school in Uganda

49% Students joining secondary school in Kenya

255US$ Average annual income of the poor in East Africa

40-80% The chance of the children of the poor to die below the age of five

24%

Stunted children under five years in the region

2100US$ Average annual income of the richest in East Africa

This Analysis was first published by the East African Business Times


violent conflicts in the forest regions of Africa are tied to

“lootable”commoditiessuchaspreciousmetalsandrough

diamonds that canbeused to fuel conflict.Revenue from

forestryareusedbybelligerentstopurchasearmsandother

materials.

Clearly,todealwiththeproblemsofconflictinAfrica,itis

imperativetocurtailillicitfinancialflowsandfightcorruption

and the institution of tax havens. Better taxation provide

additionalrevenuetofundGovernmentbudgets.Inlinewith

this,Africaneedsstrongfindingsonmechanisms,strategies,

and peer research to distinctly show the impacts of illicit

financialflowsonthedifferentsectorsofeconomicactivity.

Indeed,curtailingillicitfinancialflowscouldbecomeakey

deliverymechanismforsustainabledevelopment.

Concertedeffortsbycountriesoforiginanddestinationare

needed.Thelegalandfinancialapproachmustbetransparent

andtheinternationalassetrecoveryregimeintegratedinan

efforttocurbtheseoutflowsandunlockthemuch-needed

resources.

The better use of ODA nowadays should be to create the

support mechanisms that would allow Africans to benefit

fromtheirownwealth,ratherthanprovidingaid.

Dr. Carlos Lopes is the Executive Secretary of the United Nations Economic Commission for Africa (UNECA)

COMMENTARY

Can Africa move away from Aid to more trade?

What should Africa do to attract more private equity and

how can it convert the illicit financial flows to funds for

domesticresourcemobilization,climatechangeandconflict

resolution - these are pertinent issues which affect the

longtermdevelopmentoftheAfricaneconomies.Financing

developmental efforts in Africa has proved difficult in the

past. Over reliance on overseas development assistance

(ODA)wasseenasthesolution.Nowweknowbetter.

Lessons learned from the Millennium Development Goals

(MDGs)havepromptedafreshwaveofthinking.Africaneeds

atransformativedevelopmentalframework.

However,astructuraltransformationagendawillrequirean

adequate,predictable,sustainableandintegratedfinancing

mechanism geared towards financing developmental

goals. The continent must also embark on reforms to

capturecurrentlyunexploredorpoorlymanagedresources.

This includes curtailing illicit financial flows and rather

transformingthosefundsintoapowerfultoolforenhancing

domestic resourcemobilization,asawayof furtheringthe

continent’sdevelopment.

According to recent studies, from1970 to 2008, Africa lost

US$854 billion to US$1.8 trillion in illicit financial flows.

The latest progress report of theHigh-level Panel on Illicit

FinancialFlows(IFFs),whereIdeputizeforPresidentMbeki,

revealedthattheannualaveragewasbetweenUS$50billion

andUS$148billionayear(ECA,2013).Commercialmoneysuch

as tax evasion and trade and servicesmispricing through

multinationalcompanies,constitute the largestcomponent

followed by proceeds from criminal activities and public

sectorcorruption.

This loss undermines revenue generation and reduces

the benefits from economic activities, particularly in the

extractive sector. It is possible to redirect IFFs to increase

domestic resource mobilization, finance the adaptation

costsofclimatechange,andtackleconflicts intheregion.

IFFs undermine Africa’s fiscal and policy space and deny

its financial systems and Governments the opportunity to

usedomestic resourcemobilization schemes. Taxevasion

is a significant component of illicit financial flows as is

aggressivetaxavoidanceandtrademispricing.Othermeans

areunequalagreementsandcontractsbywhich resources

aretransferredfromAfrica.

Examples include poorly negotiated resource extraction

contracts, investmentanddouble taxationagreements.For

example somemultinational companies take advantage of

different double taxation treaties to shift profits from one

country to another, exploiting the treatieswith the lowest

withholdingtaxrates.Curbingillicitfinancialflowstofinance

theadaptationcostsofclimatechangeillicitfinancialflows

diminishresourcecapacityinthemostvulnerablecontinent

totheimpactofclimatechange.

Adaptation will cost African countries billions of dollars

a year, increasing pressure on development budgets.

Innovative domestic climate finance opportunities such as

resource savings from curbing illicit financial flows could

helpinfinancingresilientpolicies.

Understanding illicit financial flows and conflict in Africa

Illicitfinancialflowsposeathreattothestabilityandsecurity

undermine institutions and democracy, and jeopardize

sustainabledevelopmentandtheruleof law.Manyof the

DR. CARLOS LOPES

COMMENTARY


Graphic©HealthPovertyAction.org

TheEastAfricanCourtofJusticeisanorganoftheCommunity

under Article 9 of the Treaty for the establishment of the

EastAfricanCommunity. TheCourt is a judicial body tasked

with ensuring the adherence to law in the interpretation

andapplicationofandcompliancewith theTreaty.EACJhas

jurisdiction over the interpretation and application of the

Treaty.

∑ Who can file a case at EACJ?

Δ The Partner States

π Where a Partner State considers another Partner State,

OrganorInstitutionoftheCommunityhasfailedtofulfillan

obligation under the Treaty or has

infringed a provision of the Treaty,

mayreferthemattertotheCourtfor

adjudication.

π A Partner State may refer for

determination by the Court, the

legality of any Act , regulation,

directive, decision or action on the

ground that it is ultravires, unlawful

oraninfringementoftheprovisionsof

theTreatyoranyruleoflawrelatingtotheTreaty’sapplication

oramountstoamisuseorabuseofpower.

Δ The Secretary General

π Where the Secretary General considers that a Partner

StatehasfailedtofulfillanobligationundertheTreatyorhas

infringedaprovisionoftheTreaty,

Δ The Legal and Natural Persons

πAnypersonwhoisaresidentinaPartnerStatemayreferfor

determinationbytheCourt,thelegalityofanyAct,regulation,

directive, decisionor actionof a Partner State or Institution

of theCommunityon thegrounds thatsuchAct, regulation,

directive,decisionoractionisunlawfulorisaninfringement

oftheprovisionsoftheTreaty.

∑ Can the Court address disputes between the Community and its Employees?

EACJhasjurisdictiontohearanddeterminedisputesbetween

theCommunityanditsemployeesthatariseoutoftheterms

and conditions of employment of the employees of the

Communityor theapplicationand interpretationof thestaff

rulesandregulationsandtermsandconditionsofserviceof

theCommunity.

∑Who can appear and represent a party at EACJ?

The East AfricanCourt of JusticeRules of Procedureprovide

whocanappearbeforethecourt:

Δ A party to any proceedings in the Court may appear

in person or by an agent andmay be represented by an

advocate.

ΔTheCounseltotheCommunitymayappearandrepresent

theCommunityoranyofitsInstitutions

Δ A corporation or company may either appear by its

director,managerorsecretary,whoisappointedbyresolution

underthesealofthecorporationorthecompany,ormaybe

representedbyanadvocate.

ΔApersonunderlegaldisabilitymayappearbyguardian

ad litem or next friend as the casemay be andmay be

representedbyanadvocate.

π TheadvocateforapartyshallfilewiththeRegistraracertificatethatheorsheisentitledtoappearbeforeasuperiorcourtofaPartnerState.

π A representative of aparty other than an advocateshallforpurposesofthisfilewiththeRegistrarproofofhisorherappointmentassuchrepresentative.

∑What are the filing fees?

EACJabolishedCourtfilingfeeswhichwaspreviouslyrequired

for the litigants to file a case. The amount of 500 USDwas

considered too steep for litigants and became a stumbling

blocktoseekingjusticeattheEACJ.TheremovalofCourtfiling

feescametoeffect11thApril2013.

Anna Nabaasa is a Programme Assistant at the East African Court of Justice (EACJ)

CRASHCOURSEPOLICY&STRATEGY

Unlocking the region’s potential through industry

Belinda Wera accessing eacJ

ANNAHNABAASA

Issue No 20 | The cOMMUNITY | 57 56 | The cOMMUNITY | Issue No 19 Issue No 24 | The cOMMUNITY | 57 56 | The cOMMUNITY | Issue No 24

POLICY&STRATEGY

a Single customs territory to enhance regional trade

Attainment of the EAC Single Customs Territory (SCT) ispremisedontheneedtoconsolidatetheimplementationof the Customs Union in accordance with the TreatyEstablishingtheEastAfricanCommunityandtheProtocolontheEstablishmentoftheCustomsUnion.

ThemainobjectiveoftheSCTistolowerthecostofdoingbusiness and enhance intra EAC trade by integratingCustomsclearanceprocessesandreducinginternalbordercontrols.AttheHeadsofStateSummitheldinApril2012,theCouncilwasdirectedtodevelopamechanismfortheoperationalizationofaSCT.

In 2013, a framework was developed and adopted. TheEACSCT frameworkspellsout the followingthreepillars:Free circulation of goods, Revenue Management andLegal and Institutional Framework. Implementation ofthis framework is supported by operational instrumentsoutliningprocessesinCustomsandotheragencies.

On March 26th this year, EALA passed the East AfricanCommunityCustoms(Amendment)Bill,2015inamovetoensurethesmoothoperationalizationoftheSCTandboosttradeintheregion.

TheBillistoamendstheEastAfricanCustomsManagementAct, 2004 to facilitate the discharge of the functions ofthe Directorate of Customs and Trade as provided for intheActaswellastofacilitatesmoothimplementationoftheAct,particularlyontheproceduresthat facilitatetheimplementationoftheEACSCT.

What’s in it for East Africans?

RealizationofaSCTisbeneficiarytotheEACcitizenry inthatitwillconsequentlyenhancetradewithintheregionby: reducing the cost of doing business by eliminatingduplication of processes, reducing administrative costsand regulatory requirements, enhancing capacity of theprivateandpublicsectoragencies,creatingamechanismforpreventionof smugglingata regional level, reducingrisks associated with non-compliance on transit goods,enhancing application of Information Technology (IT)and data collection at the regional level and realizingeconomies of scale and optimal use of resources inclearanceofgoodsintheEAC.

Damaris is a Media Programme Assistant at the EAC Secretariat

damaris wambui nyaga


CRASHCOURSE

59 EASPEAKS


BRAINBASHERS

Leaders can be weird. Who they are often overlaps with what they do. Therein lies the conflict because people are affected by the leader’s person. On this note, it’s easy for people to hate their unpleasant boss.

A leader’s weakness is almost unexpected, especially when they’re highly influential. The days when leaders were believed to be descendants of the gods are over. Now, your boss is a person just like you with added responsibility.

I know leaders who still give the impression that they have no weaknesses. These guys paint an unreal image of who they are, even to their inner circle. This approach is not sustainable; fault lines cannot be hidden forever.

The conventional thinking suggests that leaders should focus on their strengths and not their weaknesses. I beg to differ.

My take: know, own and manage your weaknesses. You may outgrow some, while others may never go away. However, it’s wise to put a weakness management system in place to keep you functional.

Your faults are elements, they don’t define the whole. You can be crazy and still lead well.

Samuel Mpamugo theyouideology.com

EASPEAKS

If Your Boss Is Crazy – It’s OK! #147


Dest

ination

East

Africa

One People, One Destiny

The Community is published by the Corporate Communications and Public Affairs Department,

East African Community Secretariat P.O. Box 1096, Arusha ,Tanzania.

Tel:255-27-2162100/8 Fax: 255-27-2162120 e-mail: [email protected]

web: www.eac.intISSN: 0856-7808

the community - april 2015 ( official magazine of the east african community)

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