East African Community Secretariat; Arusha, Tanzania; 17 May 2017:
The EAC Secretariat, East African Business Council, the Government of Rwanda and other Partner States are finalizing preparations for the 2nd East African Manufacturing Business Summit and Exhibition (EAMBS) to be held in Kigali, Rwanda from 23rd to 25th May, 2017.
Over 300 top executives in the manufacturing and agri-business sectors, high-ranking policy and decision makers, as well as leading financial institutions from Africa and beyond have already confirmed their participation.
H.E. Paul Kagame, President of the Republic of Rwanda, has been invited to grace the official opening ceremony of the Summit.
Other high level dignitaries expected to attend include: Dr Mukhisa Kituyi, Secretary General of the United Nations Conference on Trade and Development (UNCTAD), Amb. Liberat Mfumukeko, the EAC Secretary General; as well as line Ministers from all EAC Partner States, who shall engage the private sector on critical steps needed to leverage higher levels of investment in manufacturing.
Dr. Reginald Mengi, the Executive Chairman of the IPP Media Group Tanzania (Ltd), Mr. Ali Mufuruki, Chairman & CEO, Infotech Investment Group LTD, Ms. Phyllis Wakiaga, CEO, Kenya Association of Manufacturers are among the private sector heavyweights who have confirmed their participation in the Summit.
Speaking ahead of the Summit, the EAC Deputy Secretary General, in charge of Productive and Social Sectors, Hon. Christophe Bazivamo, said the EAMBS offers an important platform for governments in the region to engage the private sector on critical steps needed to leverage higher levels of investment in manufacturing.
“The private sector, on its part, is expected to use the Summit to advocate for the acceleration of industrial reforms aimed at improving the investment climate in the EAC strategic sectors,” added Hon Bazivamo.
Hon. Bazivamo said that the EAC region has already identified strategic areas for industrial development in the region that bear comparative advantages and where significant private sector investment is needed to unlock potentials.
Hon Bazivamo disclosed that the EAMBS would put a special emphasis on the role of diaspora investors and will come up with special provisions on how they can be attracted to invest in the region.
The 2nd EAMBS will among other comprise the following sessions:
Manufacturing in the EAC Region, Public and Private Sector perspective;
The EAC Treaty and its’ protocols, objectives vis-à-vis reality;
Long-Term and Innovative Financing for the Manufacturing Sector & the Participation of the Diaspora;
The Role of EAC Governments in Promoting Local Content with a focus on Iron, Steel, Mining and Construction Materials;
High level dialogue on the Manufacturing—Trade nexus in the EAC;
Improved Competitiveness through skills and innovation;
Partners Roundtable /Financing to support Industrialization; and
Pharmaceuticals and Cosmetics: “Growing EAC’s nascent pharmaceutical industry.
The EAMBS is being organized by the EAC Secretariat in collaboration with the East African Business Council, the host Government of Rwanda and other EAC Partner States with the support of Development Partners.
Registration
For further Information or Registration Attendance, Exhibition or Sponsorship please contact:
Mrs. Angelika Farhan-Reimpell, Business Development Manager, East Africa Business Council (EABC) afarhan[at]eabc-online.com and manufacturingsummit[at]eabc-online.com)
OR
Ms. Jennifer Gache, Senior Industrial Engineer, EAC Secretariat gache[at]eachq.org
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Community Secretariat; Arusha, Tanzania; 17 May 2017:
The European Union (EU) will continue to offer its assistance, to the best of its abilities, to the East African Community (EAC).
The Head of the EU Delegation to Tanzania and the EAC, Amb. Roeland Van de Geer, said that over the seven year period from 2014 to 2020, the EU and the EAC were addressing key challenges in East Africa by jointly implementing an ambitious development programme through the 85 million Euro 11th European Development Fund.
Amb. Van de Geer further said that, in addition, EU Member states were also making available considerable amounts in development support to the EAC.
“However important aid may be, trade and investment are crucial for a better future for all East Africans,” said the envoy.
Amb. Van de Geer said the EU would continue to partner with the EAC in development cooperation and the promotion of peace, security and democracy in the East African region.
He noted that the two blocs had witnessed increased cooperation over the past two decades, adding that the wide ranging cooperation would continue in the political, economic and developmental fields.
Amb. Van de Geer was addressing guests during a cocktail event to mark the Europe Day 2017 at the EAC Headquarters in Arusha, Tanzania.
He acknowledged that despite many years of unprecedented economic growth, Europe today suffers from serious economic difficulties.
“Difficult as the times may be, our Union, built on solidarity and on the strong commitment to peace and development, see these tough times as an opportunity for change, improvement and reform. Our collective European response is a new level of joint economic governance intended to speed up economic recovery, thus contributing to global improvement,” he said, adding that there was a silver lining to these challenges.
“Europe is not turning inwards; on the contrary, the current situation calls for well-coordinated and determined international action and narrow cooperation with our partners worldwide, in Asia, the Americas, Oceania and certainly also in Africa, the continent to which Europe feels so closely connected,” said Amb. Van de Geer.
In his remarks, EAC Secretary General Amb. Liberat Mfumukeko said that the EU provides good lessons to the EAC on the integration journey.
Amb. Mfumukeko said the EAC was particularly keen to learn from the EU on how it had managed crises such as war, poverty and disease over the years.
The event was attended by EAC staff, the business community and members of the diplomatic community in Arusha.
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Community Secretariat; Arusha, Tanzania; 16 May 2017:
The 18th Ordinary East African Community (EAC) Heads of State Summit has been set for the 20th May, 2017, in Dar es Salaam, Tanzania.
Top on the agenda is the consideration of EU-EAC Economic Partnership Agreement (EPA) and Sustainable Financing Mechanism for the Community. The Summit will also consider the status of the EAC Political Federation, the appointment of a Deputy Secretary General from the Tanzania, the appointment of a Judge from South Sudan to the First Instance Division of the East African Court of Justice.
The Summit will also receive a report on the roadmap for the accelerated integration of South Sudan into the EAC, and consider progress report on the implementation framework for the EAC Institutional Review.
Also on the agenda are: a progress report on the verification exercise for the admission of the Republic of Somalia into the EAC; a report on the modalities for promotion of motor vehicle assembly in the region and to reduce the importation of used motor vehicles from outside the Community, and; a report on the review on the textile and leather sector with a view to phasing out importation of used textiles and footwear.
The Summit will consider assenting to Bills passed by the East African Legislative Assembly and will also present awards to the winners of the EAC Students Essay, 2016. The Summit will also declare the transformation of the EAC into a Common Higher Education Area.
The Summit is being preceded by the 34th Extraordinary Meeting of the EAC Council of Ministers that is currently underway at the Dar es Salaam Serena Hotel from today 16th to 18th May, 2017.
Media Alert
All Local and Foreign Journalists intending to cover the 34th Extraordinary Meeting of the EAC Council of Ministers and the 18th Ordinary Summit of the EAC Heads of State are alerted that the Accreditation Process will be done at the Maelezo offices (Tanzania Information Services-TIS) in Dar es Salaam, Tanzania.
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Community Secretariat; Arusha, Tanzania; 15 May 2017:
The Tripartite Task Force Infrastructure Sub-Committee meeting to consider progress of projects and programmes under the Infrastructure Pillar of the Tripartite Free Trade Area (FTA) concluded on 12th May, 2017 in Arusha, Tanzania.
The two-day meeting chaired by the Director of Infrastructure at the EAC Secretariat, Dr Kamugisha Kazaura was attended by the representative from Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) and the host EAC.
Delivering his opening remarks on behalf of the Secretary General, Dr Kazaura, appreciated the support from the EU for funding the Tripartite Transport and Transit Facilitation Project (TTTFP) from the EDF 11 funding cycle for the next five years. The support will go a long way in facilitating harmonization of the transport standards, regulatory frameworks and specifications in the Eastern and Southern African Region.
The representative of SADC, Mr. Lovemore Bingandadi, thanked the EAC for convening the meeting and reiterated SADC’s commitment to work with COMESA and EAC to accelerate the implementation of the Tripartite Infrastructure programmes.
On his part, Mr. Bernard Dzawanda from COMESA, pledged to work with the other RECs in the implementation of the Tripartite Infrastructure programmes. He lauded the EAC for enacting regional legislation that made it easier for Partner States to implement regional policies and standards and called for replication of the practice across all Tripartite RECs.
The meeting discussed the progress in the implementation of the Tripartite Infrastructure Projects and Programmes in the areas of Tripartite Transport and Facilitation Programme, Corridors Infrastructure Development, Civil Aviation, Maritime Transport, Ports, ICT and Energy. The Tripartite RECs and Member States have developed Tripartite Transport and Transit Facilitation Programme (TTTFP) which has received funding amounting to 18 million Euros under the 11th EDF.
Implementation of the programme is expected to commence in July 2017. It was noted that the lack of an integrated and liberalized road transport market in the East and Southern African (EA-SA) region poses numerous obstacles to trade by causing severe delays and increased transport costs, as well as challenges to road safety and durability. This programme (which builds on previous REC programs) addresses these challenges through the implementation of harmonized road transport policies, laws, regulations, systems and standards that affect drivers, loads, vehicles and road infrastructure in the countries of the EA-SA region.
All REC’s forming the Tripartite have prioritized the development of corridors to facilitate transit transport and expand trade within and between the respective regions.
In the Civil Aviation Sub Sector, the meeting noted that the Tripartite is currently playing the key role in the full implementation of the Yamoussoukro Decision and establishment of a single African Air Transport Market as adopted by the African Union Assembly in January 2015. The full liberalization in the Tripartite region will lead to the removal of all restrictions on access, price, frequency and capacity in intra-African Air Transport market, free exercise of the first five freedom rights and the reduction of Air Transport Cost.
The report of the Tripartite Task force Infrastructure Sub-Committee meeting will be considered by the Tripartite Sectoral Committee of Ministers of Infrastructure (TSCMI) scheduled in July 2017.
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Community Secretariat; Arusha, Tanzania; 09 May 2017:
East African Community Secretary General Amb. Liberat Mfumukeko has sent a message of condolence to the President of the United Republic of Tanzania, His Excellency John Pombe Magufuli, following the demise of 35 people including 32 students in a road accident near Arusha last Saturday.
In his message, Amb. Mfumukeko on behalf of the EAC and on his own behalf expressed his heartfelt condolences to the President, the bereaved families, relatives and friends of those who perished in the accident, the Government and the people of Tanzania.
Amb. Mfumukeko said it was unfortunate the students and their teachers met their untimely end while in the noble pursuit of knowledge.
The Secretary General said the Community would continue to work together with all Partner States to improve transport infrastructure and road safety throughout the region.
“The entire East African Community and I share with Your Excellency, the bereaved families, the Government and the people of Tanzania, the feelings of great loss at this moment of sorrow. May God rest the souls of the departed in eternal peace.”
The 32 pupils of Lucky Vincent English-Medium School in Arusha, their two teachers and the driver of the bus died when the vehicle crashed into a roadside gorge along the Arusha-Karatu road on Saturday morning.
A national funeral was held for the deceased persons at the Sheikh Abeid Karume Stadium in Arusha on Monday. The government delegation at the funeral was headed by Vice President Samia Suluhu Hassan.
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Community Secretariat; Arusha, Tanzania; 26 April 2017:
The East African Community Secretariat significantly reduced traveling expenses over the 10-months period running from May 2016 – February 2017 compared to a similar period from May 2015 – February 2016.
EAC Travel expenditures fell to US$ 9.1 million in the period ending February 2017 compared to US$ 12.5 million the previous financial year, a drop of US$ 3.4 million.
EAC travel expenditure includes air tickets for EAC Staff, air tickets for Partner States’ delegates and other participants at EAC meetings, and Daily Subsistence Allowance (DSA) for EAC Staff, Partner States delegates and other participants in EAC meetings.
Making the disclosure, EAC Secretary General Amb. Liberat Mfumukeko said that some of the most significant cost reductions were in expenditure on air tickets which dropped by US$ 456,491 and air tickets for Partner States’ delegates and other participants to EAC meetings which declined by US$ 408,273.
The Secretary General said that DSA for EAC Staff from also plunged from US$ 4.5 to million to US$ 3.2 million over the same period, a difference of US$ 1.36 million.
Expenditure on DSA for Delegates to EAC meetings went down from US$ 4.4 million to US$ 3.5 million, a drop of US$ 1.05 million.
Also worth noting is that the EAC overall Travel budget has declined significantly over the past three financial years. The Community’s travel budget was US$ 28.1 million in the 2014/2015 Financial Year; US$ 28.0 million in the 2015/2016 Financial Year, and; declined significantly to US$ 21 million in the 2016/2017 Financial Year.
The Secretariat has since April 2016 been undergoing administrative and institutional reforms aimed at cutting down on costs and reducing wastage in its expenditure.
The ongoing reforms have helped the Community to adapt to the reduction of its travel budget and to the overall financial constraints it has been facing.
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Legislative Assembly; Arusha, Tanzania; 09 May 2017:
EALA Speaker, Rt Hon. Daniel F. Kidega has sent a message of condolence to the President of the United Republic of Tanzania H.E. Dr John Pombe Joseph Magufuli, following the tragic weekend accident in Karatu District, Arusha, that claimed lives of over 30 children.
The pupils and teaching staff from St Lucky Vincent School in Arusha perished on Saturday morning when the minibus they were travelling in, veered off the road and plunged in to a river in Rhotia area, Karatu, under rainy conditions.
In his message, Rt Hon. Kidega, who is away on official duties, termed the tragic accident a national tragedy.
“Death has robbed the United Republic of Tanzania and the region at large of young pupils who had a great and promising future. I am indeed saddened by this national tragedy”, the condolence message read in part.
“The Assembly and I condole with the families and relatives of those who lost their loved ones and pray to the Almighty God to grant all comfort at this hour of grief”, the Speaker said.
The Vice President of the United Republic of Tanzania, H.E Samia Suluhu Hassan, led government, leaders of all walks of life, as well as thousands of Arusha residents to pay last respects to the demised at the Sheikh Amri Abeid Stadium, where the public farewell took place.
- ENDS -
For more information, please contact:
Mr Bobi Odiko Senior Public Relations Officer East African Legislative Assembly Arusha, Tanzania Tel: +255-27-2508240 Fax: +255-27-2503103 Cell: +255-787-870945, +254-733-718036| Email: BOdiko [at] eachq.org Web: www.eala.org
About the East African Legislative Assembly:
The East African Legislative Assembly (EALA) is the Legislative Organ of the Community and has a cardinal function to further EAC objectives, through its Legislative, Representative and Oversight mandate. It was established under Article 9 of the Treaty for the Establishment of the East African Community.
East African Legislative Assembly; Arusha, Tanzania; 25 April 2017:
EALA late last week commenced on its last leg of sensitisation activities for the Financial Year 2016/17 in the Partner States.
The twelve-day activity which started on April 20th, 2017, is premised on the theme; EAC Integration Agenda: Accessing the Gains. The sensitisation phase hopes to bring EAC citizens up to speed on the overall integration process, promote liaison with EAC National Assemblies and key stakeholders and create awareness among the populace on the gains and challenges of integration. It also seeks to enhance mutual relationships between EALA and the citizens of the region. Each EALA Chapter shall engage with different stakeholders in-country. The stakeholders include institutions of learning, Member of Parliaments, civil society and private sector representatives, media and the border communities among others. The Ministry responsible for EAC Affairs in each Partner State is coordinating the activity.
This is the third and last sensitization activity to be carried out by the 3rd Assembly before its tenure ends in June 2017. EALA held two other phases of sensitization in the Partner States in April and June 2016 respectively.
The Assembly in August 2016 debated and adopted the sensitization report of the last activity. The Sensitisation report presented by Hon Patricia Hajabakiga, Chair of EALA Rwanda Chapter, was a culmination of outreach and sensitisation activities carried out in the Partner States by the various country Chapters of EALA in June 2016.
EALA’s Sensitisation activities, emanate from the policy guidance by the Summit of EAC Heads of State and the decision by the Assembly’s Commission to reach out to the people of East Africa as part of its mandate on representation, on the one side. On the other, the move is in accordance with EALA’s Strategic Plan (2013-2018) that is based on a people-centered approach.
The Assembly is of the view that the region would totally benefit if the Common Market Protocol is fully embraced. Members have further underscored the importance of sensitisation saying if the citizens are informed, then full integration is bound to be achieved.
The legislators have urged the House to ensure sensitisation is institutionalised in the calendar of activities of EALA and rooted for use of Kiswahili as a key language that bonds and enables citizens of the region to communicate effectively and efficiently.
At the same time, the Assembly has also recommended that the EAC Anthem and the flag should go hand in hand with respective national ones (flags) at all times.
- ENDS -
For more information, please contact:
Mr Bobi Odiko Senior Public Relations Officer East African Legislative Assembly Arusha, Tanzania Tel: +255-27-2508240 Fax: +255-27-2503103 Cell: +255-787-870945, +254-733-718036 Email: BOdiko [at] eachq.org Web: www.eala.org
About the East African Legislative Assembly:
The East African Legislative Assembly (EALA) is the Legislative Organ of the Community and has a cardinal function to further EAC objectives, through its Legislative, Representative and Oversight mandate. It was established under Article 9 of the Treaty for the Establishment of the East African Community.
East African Community Secretariat; Arusha, Tanzania; 21 April 2017:
The 6th Meeting of the EAC Chiefs of Prisons/Correctional Services, was held on 20th April 2017 in Port Louis, Mauritius, pursuant to the EAC Calendar of activities for the period January to June 2017.
The meeting was held back to back with the 2nd Eastern and Southern Africa (ESA)-Indian Ocean (IO) Chiefs of Prisons and Correctional Services which was hosted and Chaired by the Republic of Mauritius under the stewardship of the Commissioner of Mauritius Prisons Service Mr Premananda Appadoo.
The meeting reviewed the Status of Implementation of Previous Decisions which included Cooperation agreement for the sub sector, Peace Support Operations: Progress on Development of Pre-Deployment Curriculum, Harmonization of Training Curricular, Implementation of Confidence Building Measures(Report of Benchmark Visit to the Prisons in the Republic of Uganda; Report of Mentorship Visit to Mauritius Prisons Service; Report of Benchmark Visit to the Republic of Kenya Probation and Aftercare Services)
The meeting also considered status report on the overdue establishment of a Prisons/Correctional Services Liaison Office at the EAC Secretariat.
The meeting was succeeded by the 2nd ESA-IO Prisons and Correctional Services Chiefs which provided a forum for the various participating states to share information and best practices on various correctional aspects.
The meeting underscored the need for emphasis on promotion of an entire correctional continuum approach that would relieve Prisons of bustling populations and give convicts an opportunity to pay back to society through community service and rehabilitation. The meeting further reaffirmed the need to pay attention to the phenomenon of Children in Conflict with the Law.
The Meetings thanked the EU for financial support towards supporting the implementation of the ESA-IO Maritime Security Strategy through which a special community of practice is being promoted through networking, within a south- south cooperation context.
The meeting highlighted the increasing challenges being occasioned to the penal system by crimes committed in the sea and underscored the need for burden sharing in this process. The Representation from the Indian Ocean Commission also participated in the ESA-IO component and highlighted the ESA-IO Partnership between the EU on the one hand and the EAC ,COMESA,IOC and IGAD on the other in promoting through a multi-dimensional approach, Maritime Safety and Security in the Indian Ocean, critical to the economies of both littoral and inland states. The Outcomes directly contribute to the achievement of the Africa Integrated Maritime Strategy.
The meetings concluded with benchmark visits to the various categories of Prisons in Mauritius which have achieved ISO Certification.
The Republic of Uganda, current chair of the African Correctional Services Association, (ACSA), invited all participating states as well as the EAC Secretariat to the upcoming 4th Biennial Conference to be hosted by the Republic of Rwanda as from 15th to 18th May 2017 in Kigali, Rwanda.
The meeting noted this as a key ingredient in promoting a contextualized community of practice in Africa as a Region.
The meeting Chaired by the Deputy Commissioner General of the Uganda Prison Service, Mr. James Mwanje, was attended by Director General of Burundi Penitentiary Administration, Mr Gervais Hajayandi; the Assistant Commissioner General of Kenya Prison Service, Ms Wanini Kireri; the Commissioner General Rwanda Correctional Service, Mr.George Rwigamba; and the Deputy Director General/Finance and Administration, South Sudan Prison Service, Lt Gen Andrew Monybeeng. The United Republic of Tanzania did not send representation.
The meeting was also attended by Senior Officials from the EAC Coordination Ministries, Probation/Aftercare and Children’s Services.
- ENDS -
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania| Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
East African Community Secretariat; Arusha, Tanzania; 21 April 2017:
The East African Community Partner States have undertaken a number of reforms over the past four years to facilitate implementation of the EAC Common Market Protocol, this is according to the East African Common Market Scorecard (CMS 2016).
The Scorecard, which is published by the World Bank, says that Partner States have implemented significant reforms in the free movement of Capital, Goods and Services that are enshrined in the Common Market Protocol (CMP).
The CMS 2016, however, notes that there is still cause for concern as numerous barriers remain in all the three areas. Also worrying, according to the Scorecard is the fact that new measures have been implemented that hinder regional trade and investment.
The Scorecard indicates that in the case of free movement of goods, Non-tariff Barriers (NTBs) which often emerge when tariffs have been eliminated – have been addressed more quickly during the 2016 reference period than during the 2014 period falling from an average of 34 to eight (8) months per NTB.
With respect to the free movement of capital, three Partner States – Kenya, Tanzania and Uganda – have undertaken a total of 11 reforms including measures that enhance the region’s securities capacities by adding a framework for trading in derivatives in Kenya and Uganda.
The findings were revealed during a two-day dissemination workshop on EAC Common Scorecard 2016 that was held at the EAC Headquarters in Arusha, Tanzania. The World Bank team was led by Ms. Jean Lubega-Kyazze, Senior Private Sector Specialist, while the Director of Planning, Mr. Wilberforce Mariki, represented the EAC Secretary General.
The report observes that Kenya undertook three reforms but added one restriction; Tanzania and Rwanda each eliminated one Non-conforming Measure (NCM). It adds that Uganda also had one reform but added one restriction.
Under the CMP, Partner States committed to liberalize 20 capital market operations. However, at the end of December 2015, the reference period for CMS 2016, only two (2) of these 20 operations were free in all Partner States showing no improvement since 2014.
Eleven (11) reforms have been undertaken since the publication of CMS 2014, all in the securities area, notes the report.
Since the publication of the 2014 CMS, both Kenya and Uganda adopted a regulatory framework for derivatives and thus removed two of the restrictions recorded in 2014.
“In the CMS 2016 results, Kenya has met the threshold of no restrictions on the 14 operations measures relating to securities. Uganda also enacted reforms affecting two of the operations but continues to have residency restrictions on the local purchase of shares or other securities and of bonds and other debt instruments by charging non-residents withholding tax rate of 15% on dividends from listed companies while residents are charged 10%,” notes the report.
“In terms of credit operations, Kenya, Rwanda and Uganda continue to be open to both borrowing and lending abroad by residents. Burundi and Tanzania both restricted lending abroad by residents in 2014,” it adds.
The report observes that on personal capital operations, all EAC Partner States – except Tanzania – require that all amounts above $10,000 should be declared on exit or entry. However, Partner States do not restrict the operation.
“Tanzania places a $10,000 limit for residents traveling abroad with foreign currency, including to EAC Partner States. Tanzania also provides that funds due from assurance policies taken outside Tanzania may only be transferred into or from Tanzania is servicing such policies is done using externally generated funds.”
CMS 2016 notes that only two (2) out of the 20 capital operations are free in all Partner States, namely external borrowing by residents and repatriation of proceeds from sale of assets. All other 18 operations have at least one Partner State restricting the operation.
The Scorecard, among other things, recommends that to release regional capital for private sector growth, the EAC should prioritize the rollback of laws, regulations and investment codes that impede investment.
On the Free Movement of Services, the CMS 2016 notes that although Partner States have committed to liberalization in a number of service sectors, they followed a positive list approach, scheduling only those sub-sectors they were willing to open up.
“Non-conforming Measures (NCMs) have increased in the telecommunications sector – largely because telecommunications commitments did not take effect until 2015, so all countries were rated as having zero NCMs. The vast majority – about two thirds – of NCMs are in professional services,” says the report.
The report notes that for the EAC to achieve the accelerated economic growth and development envisaged in the CMP, an efficient services sector is key, given its centrality to the proper functioning of every other sector. It recommends the amendment of the relevant provisions on trade in services under the CMP, noting that this will not only deepen integration in services in the EAC, but also greatly boost and attract investment within and into the EAC region.
On the Free Movement of Goods, the report points out that as was the case in 2014, all Partner States have eliminated tariffs on goods originating from within the EAC. All Partner States therefore score full marks in CMS 2016 for compliance with the Rules of Origin (RoO) following the revised RoO.
“Despite this legal compliance, the CMS 2016 results point to the continued use of tariff equivalent measures primarily arising from the non-recognition of RoO certificates among EAC Partner States, thus triggering application of tariffs on goods that would have otherwise not attracted import duties and the application of charges of tariff equivalence,” says the report.
The report observes that Partner States continue to apply charges on each other’s goods that are equivalent to the tariffs that were removed to facilitate free movement of goods.
“These charges include charges levied on imports by various government agencies and local authorities or county governments, road user charges, charges associated with all cases of non-recognition of Certificates of Origin. In total, there were 35 such charges, 28 new charges which were imposed in the CMS 2016 review period and seven (7) charges carried from the CMS 2014.”
The report, among other things, calls for the: elimination of Tariffs and charges with equivalent effect; elimination of NTBs, and; harmonization and mutual recognition of Sanitary and Phyto-sanitary Standards (SPS) and Technical Barriers to Trade (TBT).
- ENDS -
Notes to Editor:
The East African Community Common Market Scorecard was developed as a tool for the EAC Partner States to track their progress in fulfilling their commitments under liberalization under the Common Market Protocol. It thus examines selected commitments made by Partner States, outlines progress in removing legislative and regulatory restrictions to the Protocol, and recommends reform measures. In doing so, it allows Partner States, along with the EAC Secretariat and development partners, to identify key areas for improvement and to chart a path to eliminate remaining barriers to creating an integrated Common Market.
The first EAC Common Market Scorecard was published in 2014 and tracked reforms in three (3) freedoms – Capital, Goods and Services. The 2014 Scorecard assessed de jure compliance in the three freedoms and found several bottlenecks to the Common Market in the laws and regulations of the EAC Partner States.
The second EAC Common Market Scorecard (CMS 2016) builds on the success of the 2014 Scorecard and maintains the focus on the three freedoms. Fundamentals behind non-compliance with conformity measures are identified and appropriate measures recommended for spurring the region’s move towards full implementation of the commitments in the three freedoms.
For more information, please contact:
Mr Owora Richard Othieno Head, Corporate Communications and Public Affairs Department EAC Secretariat Arusha, Tanzania Tel: +255 784 835021 Email: OOthieno [at] eachq.org
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.
