The year in pictures - East African Community

IN FOCUS
EAC’s new headquarters
building takes shape
INVESTMENT
Lake Victoria Basin opens
doors to investors
CRASH COURSE
What the EPAs are and
mean for our region
Q&A
The Deputy Registrar on an
eventful year for the EACJ
THE COMMUNITY
THE OFFICIAL MAGAZINE OF THE EAC
ISSUE 11
DECEMBER 2010
ACCREDITATION
Broadening EAC’s diplomatic ties
FOOD SECURITY & CLIMATE CHANGE
Transformation through innovation
+
The year in pictures
ONE PEOPLE. ONE DESTINY
| for enquiries/feedback, please contact us at [email protected] | website: http://www.eac.int/ |
Contents
3. EDITORIAL
•
From the SG’s Desk
Editorial
EDITORIAL TEAM
Owora Othieno
4. AROUND THE COMMUNITY
•
•
•
•
•
President Rallies Region on Illicit Trade
EADB Records $1.8m Profit
EABC Gets $1.8m ACBF Boost
EALS Set for Common Market
IUCEA’s New Executive Secretary
6. COVER STORY
•
Farewell Hunger, Welcome Food Security
8. ACCREDITATION
•
A New Level of Cooperation
10. INVESTMENT
•
Lake Victoria Basin: Ready for Investment
16. IN FOCUS
•
EAC’s New Home Takes Shape
14. PICTORIAL
•
EAC 2010 in Pictures
16. CELEBRATION
•
IUCEA Marks Decade of Revitalisation
17. HOUSE BUSINESS
•
EALA for Regional Accreditation of Universities
18. MEDIA SUMMIT
•
EAC, Media to Renew Nuptials for Next
Decade
19. FINANCE
•
Region for Integrated Payment Systems
20. COMMENTARY
•
Should EAC Regulate Competition?
22. CRASH COURSE
•
EPAs: What They Mean for EAC
24. Q&A
•
Common Market Could Mean More Cases
for Court
25. PARTNERSHIP
•
RISP 2 Starts in January
26. POLICY & STRATEGY
•
EAC Fine-tunes Strategy to Boost Visibility
27. EXTRAS
•
EAC Crossword
ONE PEOPLE. ONE DESTINY
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The cOMMUNITY Ma g azine
| Issue No 11
Steve Machage
Edward Ssekalo
Aileen Mallya
Florian Mutabazi
THE SG’S
DESK
CONTRIBUTORS
A M B . JUMA V. MWAPACHU
EAC SECRETARY GENERAL
Magaga Alot
Godwin Muhwezi
Bobi Odiko
Gerald Ajumbo
Pauline Kathambana
Angelique Umulisa
Charles-Martin Jjuuko
DESIGN & LAYOUT
Steve Machage
PHOTOGRAPHY
Abdul Mukhtar
Justino Liwali
DISCLAIMER
THE OPINIONS EXPRESSED
BY CONTRIBUTORS ARE NOT
NECESSARILY THOSE OF THE
PUBLISHER NOR THE EAST
AFRICAN COMMUNITY.
NO PART OF THIS PUBLICATION MAY BE REPRODUCED
WITHOUT THE WRITTEN
CONSENT OF THE EDITOR.
©2010
The EAC has just completed its first decade since its establishment. The past ten years have seen significant progress in implementing the various objectives underlined
in the Treaty establishing the EAC. The Customs Union
is in its 6th year of operation and already intra-EAC trade
has grown by over 40%. The Customs Union has also
catalysed a great deal of confidence in both regional and
global investors. As a result a number of leading global
companies have now invested in the EAC region.
Equally, the region has seen a beehive of cross border
green field investments as well as mergers and acquisitions. A number of challenges evidently continue to
confront the Customs Union, including the poor state of
physical infrastructure as well as non tariff barriers which
impede efficient trade facilitation. However, the EAC is an
ambitious organisation, supported and driven by a highly
motivated political will of its leadership. These challenges
including the desire to establish a single Customs Territory
will thus be ardently tackled in the short term.
Since 1 July this year, the EAC has become the first and
only Common Market in the whole of Africa. This is a
huge milestone. All the EAC Partner States are well geared
to respond to implementing the four freedoms that the
Common Market Protocol encapsulates. They are presently adjusting their laws and regulatory regimes to fit
the demands of this new social and economic paradigm
of integration.
We all realise that implementing a Common Market is not
a walk in the park. However, there is clear resolve and
commitment on the part of the EAC Partner States to ensure that this higher level of integration will catapult higher investments, new jobs as well as broad improvements
in a whole host of social sector services, importantly education and health.
With the Common Market framework in place, the next
stage of integration, namely the Monetary Union is now
knocking on EAC’s doors. In November last year the EAC
Summit of Heads of State cleared the way for this stage of
integration to be put into high gear. This has been done.
And much as we are now more mindful of the tempo
and speed needed to be taken to establish the Monetary
Union, we are closely observing the developments in the
world economic scene in order to establish our own path
to competiveness in global trade and investments. Thus
despite the setbacks recently experienced in the European
Union’s Euro Area, we in the EAC believe that our Monetary Union can still work in spite of some of the economic
fragilities we face.
Moreover, it is our belief that the speedy evolution and
success of our Common Market crucially hinges on how
we can quickly get the EAC Single Currency going. The EAC
Central Bank Governors are up to this task and I have every confidence that we shall see new strides taking place
in 2011.
On the Political Federation front, the Report of the Team of
Experts that was appointed to critically examine the fears
and concerns about Political Federation and how best the
EAC political leadership can move forward the agenda of
Political Federation has been finalised and will be tabled
before the EAC Summit of Heads of State this December.
We can all anxiously wait to hear the wise pronouncements of our leaders with regard to this lofty goal in our
integration agenda.
Issue No 11 |
The cOMMUNITY Ma g azine
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4
AROUND THE COMMUNITY
Mrs. Vivienne Yeda Apopo, DG, EADB
H.E President Mwai Kibaki of the Republic of Kenya with Amb. Juma V. Mwapachu; EAC Secretary
General
PRESIDENT RALLIES REGION
ON ILLICIT TRADE
President Mwai Kibaki of Kenya has
called for joint regional action to concon
tain illicit trade in the EAC.
the seizure of illicit goods and assets
as well as vessels used in transporting such goods.
Opening a Regional Anti-Illicit Trade
Conference in Nairobi at the beginbegin
ning of October, President Kibaki
noted that illicit trade, which encomencom
passes counterfeits, intellectual propprop
erty rights violations, infringement
on copyrights, smuggling, parallel
imports and undeclared local producproduc
tion, posed a threat to health and
the environment and propped unfair
competition.
He also informed participants the EAC
was preparing legislation focusing
on counterfeits and trade-related aspects of Intellectual Property Rights,
which he said once passed would go
a long way in ensuring that the region
effectively tackled the problem of illicit trade.
He said it was important therefore
that “we all join hands to tackle this
challenge, which has become one of
the leading causes of revenue loss
not just for governments but also for
the private sector”. The region reportreport
edly loses about $500 million in tax
revenues annually as a result of councoun
terfeits.
President Kibaki applauded regional
initiatives that have been instituted to
tackle illicit trade in its various forms.
He cited the East African Community
Customs Management Act which concon
tains provisions for combating illicit
trade within the region with proviprovi
sions that include penalties such as
4|
The cOMMUNITY Ma g azine
The President challenged Conference
participants to design an Action Plan
that would clearly articulate the gaps
identified in the various national and
regional legislations that enable illicit
trade to thrive.
The Conference was organised by the
East African Business Council in collaboration with the EAC and the Government of Kenya. Conference participants were drawn from public and
private sectors.
“It is important
that we all join
hands to tackle
this challenge”
| Issue No 11
AROUND THE COMMUNITY
5
Ms. Agatha Nderitu, Executive Director, EABC
Mr. Tito Byenkya; CEO, EALS
Prof. Mayunga Habib Hemedi Nkunya
EADB
RECORDS
$1.8M PROFIT
EABC GETS
$1.8M ACBF
BOOST
EALS SET FOR
COMMON
MARKET
IUCEA’S NEW
EXECUTIVE
SECRETARY
The East African Development Bank
(EADB) registered a net profit of $1.85
million, the institution said in a May
announcement of results for 2009. The
Bank attributed the turn in fortunes
to a proactive stance on distressed
projects, including restructuring and
realisation of arrears.
The African Capacity Building Foundation (ACBF) has given a $1.8 million
grant to the East African Business
Council (EABC) to support the body
in delivering its ambitious work program, envisaged to build the private
sector capacity to take full advantage
of regional integration.
Advocates and representatives of the
legal fraternity in the EAC region are
positioning to tap the benefits of the
EAC Common Market, thus the East
African Law Society’s (EALS) choice
of Continuing Legal Education (CLE)
seminars on this important subject
in collaboration with the national bar
associations.
The Inter-University Council for East
Africa (IUCEA) has appointed Prof.
Mayunga Habib Hemedi Nkunya its
new Executive Secretary. He assumed
office on 6 November 2010. Dr. Jean
Bosco Butera, who was appointed
Deputy Executive Secretary, assumed
office 2 October this year.
The announcement further stated that
EADB embarked upon normal debt
collection and recovery from projects
that had been previously written off.
The four-year Grant Agreement signed
23 July 2010 in Dar es Salaam, Tanzania, will strengthen EABC’s human
and institutional capacity to equip
the business community with requisite skills to enhance their competitiveness in the regional and global
markets and to ensure that the EAC
private sector speaks with one voice.
EABC is the umbrella organisation of
the private sector in East Africa.
The theme of the CLEs this year is:
“The East African Common Market
Protocol: Impetus for Harmonising
Standards of Legal Practice in and
around the Region”.
Prof. Mayunga Nkunya, who replaces
Prof. Chacha Nyaigotti-Chacha at the
helm of the Kampala-based EAC instiinsti
tution, served as the Executive SecreSecre
tary of the Tanzania Commission for
Universities prior to his appointment.
Before that, he served as a Chief AcaAca
demic Officer at the University of Dar
es Salaam from October 1999 to DeDe
cember 2006.
The programme, entitled, “Deepening
Private Sector Participation in East Africa’s Economic Integration” will augment the ongoing regional economic
integration efforts and the role this
plays in fostering stronger growth
and alleviating poverty. Under the
programme, EABC will carry out policy
studies and business surveys that will
be the basis of an evidence-based advocacy agenda.
This year’s presentations and discussions centre on salient features of
the Common Market Protocol; legal
issues pertaining to the operationalisation of the EAC Common Market
and the benefits, opportunities and
challenges therein for lawyers; and
the case for harmonisation of codes
of conduct and legal curricula as the
region braces for cross border legal
practice. Seminars have been held in
Zanzibar, Dar es Salaam and Kisumu
with more to be held in Bujumbura,
Kampala and Kigali.
The Bank said it remains committed
to financing projects and programmes
in infrastructure, agriculture and social sectors.
EADB will in particular continue to
support those segments of infrastructure that are amenable to private sector participation, while at the same
time providing support to the public
sector in the development of projects
that are important for the economic
and social development of the Member States.
Meanwhile Member States have also
committed to make further disbursements under a US$ 90 million equity contribution program that commenced in 2009.
Visit http://www.eabc.info/
The CLEs focus on emerging legal issues that are of vital importance to
lawyers, their clients, government
agencies and other stakeholders and
are relevant to the practice of regional and international law in the region.
Dr. Butera was the Director of the AfAf
rica Programme of the United Nations
Affiliated University for Piece (UP(UP
EACE) based in Addis Ababa, Ethiopia
prior to his posting at IUCEA. He has
also worked with the University of
Rwanda as Vice-Rector, Academic AfAf
fairs between 1995 and 2003.
The Executive Secretary serves on a
non-renewable contract of five years
while the Deputy Executive Secretary
serves on a contract of three years
which is renewable once.
Issue No 11 |
The cOMMUNITY Ma g azine
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6
FOOD SECURITY & CLIMATE CHANGE
FAREWELL HUNGER,
WELCOME FOOD
SECURITY
The EAC Agriculture and Rural Development Policy (EAC-ARDP)
recognises the importance of eliminating hunger and ensuring sustainable food security within the region. This subject
holds special significance as a necessary step towards poverty eradication and consequently a stimulus for rational agricultural development and realisation of the aspirations of
the Treaty establishing the EAC.
However, the ability of the Partner States to achieve individual and collective durable food security status has been
elusive. This has been further compounded by the negative
impacts of climate change. These two closely linked subjects
have captured the imagination of the EAC’s supreme organ
– the Summit of Heads of State – and come under scrutiny
at the Heads of State Retreat on Food Security and Climate
Change in Arusha in December 2010, which will precede the
12th Ordinary Summit meeting.
The theme of the Retreat, EAC: Transforming Agriculture
through Innovation, is particularly apt, given that agriculture
contributes 40% of the region’s GDP and provides livelihood
for 80% of East Africans. Writing for this magazine’s April edition, the EAC Secretary General Amb. Juma Mwapachu noted
that the link between climate and livelihood will be more
pronounced, since East Africa depends heavily on rain-fed
agriculture.
He asserted that “climate shifts will impact food and cash
crops production as well as livestock development. With erratic rainfall (drought and floods) also impacting irrigation
schemes, the economic impact could be tremendous”.
That the retreat on Food Security and Climate Change will
discuss both themes concurrently therefore bears unique import, and it is expected that EAC Heads of State will provide
clear direction on practical regional responses to both.
Making EAC food secure
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cOMMUNITY Ma g azine
| Issue No 11
Article 105 of the Treaty for the Establishment of the EAC obligates Partner States
to cooperate in the agriculture sector
to achieve food security and rational
agricultural production including
crops, livestock and fisheries
within the Community.
Further, the EAC-ARDP
aims at attaining food
security through increased agricultural
production, processing, storage and marketing.
The EACA R D P
guides
t h e
de-
velopment
o
f
strate g i e s
and programmes
and projects
for realisation of the
a b o v e
goals of
the EAC.
7
To augment these efforts, an action plan has been developed to guide the implementation and actualisation of a
regional food security objective.
The action plan proposes measures that range from creating harmonised approaches for enhancement of food
security in the region, increasing production, mechanisms
for effectively sourcing food from areas of surplus to areas
of deficit and putting in place structured trading systems
for food commodities and products, among others.
A regional response to Climate Change
The adverse impacts of climate change are
a threat to the livelihoods of people in
almost all sectors of the economy in
the EAC region. Severe droughts,
floods and indeed extreme weather
phenomena are occurring with
greater frequency
and intensity in
the region. Climate
change has thus
become a leading contributor to among
others; food
insecurity,
insufficient
hydropower,
i n creases
in pests
and diseases, water scarcity
and severe
damage to
infrastructure.
With the increase of the
average
global
temperature, as
indicated in the
Inter-Governmental
Panel
on
Climate
Change (IPCC)
Fourth Assessment Report (IPCC, 2007), it is expected that
climate change in the EAC region will be further aggravated, worsening the state of food security and threatening
all the other drivers of economic development.
As part of an integrated, harmonised and multisectoral
framework for responding to climate change in the region,
an EAC Climate Change Policy (EACCCP) has been developed with an overall objective to guide Partner States and
other stakeholders on the preparation and implementation of collective measures to address climate change in
the region while assuring sustainable social and economic
development.
The Policy document proposes each EAC Partner State
developing country specific policies, strategies, plans
of action, legislation and institutional arrangements for
addressing climate change in line with the EAC Climate
Change Policy. Regional projects, programmes and activities emanating from this Climate Change Policy will be
jointly planned and executed by the Partner States and
the relevant EAC Organs and Institutions.
Related information is accessible from the EAC Agriculture
and Food Security website (http://www.eac.int/agriculture) and the Environment and Natural Resources website
(http://www.eac.int/environment)
FOOD SECURITY & CLIMATE CHANGE:
THE CONNECTION & THE FIGURES
The adverse impacts of climate change are a threat
to the livelihoods of people in almost all sectors of
the economy in the EAC region.
Climate change has thus become a leading contributor to among others; food insecurity, insufficient
hydropower, increases in pests and diseases, water
scarcity and severe damage to infrastructure.
According to the World Wide Fund for Nature, East
Africa will experience changes in temperature ranging from +0.2C to +0.5C.
Rainfall in parts of equatorial East Africa is expected to increase 5-20% (December to February) and
decrease 5-10% (june to August) by 2050.
Issue No 11 |
cOMMUNITY Ma g azine | 7
8
ACCREDITATION
A NEW LEVEL OF COOPERATION
‘Accreditation’ is the buzz word at the EAC Secretariat, with 14 missions appointing representatives to the East African Community between May and
October. The Ministry of Foreign Affairs and International Cooperation of the
United Republic of Tanzania in February this year endorsed the accreditation
of envoys to the EAC, effectively giving ambassadors accredited to Tanzania
the green light to present credentials to EAC Secretary General Ambassador
Juma Mwapachu.
8|
My belief is that with this kind of
formal diplomatic relationship we
can now open up even broader areas for cooperation
Amb. Mwapachu
DEMOCRATIC REPUBLIC OF CONGO:
H.E. Ambassador Juma-Alfani Mpango
ACCREDITATION
9
FINLAND: Ambassador Extraordinary and Plenipotentiary, H.E. Juhani Toivonen
My government is taking yet another step in deepening our already
fruitful and mutually beneficial relationship – Amb. Toivonen
BELGIUM: Ambassador Extraordinary and Plenipotentiary, H.E. Paul Jansen
Belgium views the EAC as an important player especially with regard
to ensuring peace and security in the region – Amb. Jansen
JAPAN: Ambassador Extraordinary and Plenipotentiary, H.E Hiroshi Nakagawa
My Government believes that the idea of the integration
process in the framework of the Tripartite; EAC, SADC and
COMESA, can open a new era of multilateral cooperation
– H.E. Amb. Mpango
It is imperative for the member states to pursue regional integration
to maximise economies of scale –Amb. Nakagawa
With the implementation of the Common Market, there’s
a need to put in place mechanisms to address issues like
peace and security, migration, refugees and EAC could benefit a lot from the UNHCR expertise in these fields
– Amb. Mwapachu
Netherlands attaches great value to a process where East African
countries set on the same road to what we consider prosperity – H.E.
Amb. Dr. Koekoekk
UNHCR
EUROPEAN UNION: Head of Delegation for
Tanzania, Ambassador Tim Clarke
Regional integration guarantees peace, security and better
trade for the East African people.- H.E Tim Clarke
INDIA: High Commissioner,
H.E. Kocheril Velayudhan Bhagirath
The Government of India considers the EAC the fastest
evolving African regional organization and the closest to
India and India sees huge potential in the region –
H.E. Bhagirath
CANADA: High Commissioner,
H.E. Robert Orr
There’s a need to harmonise national development plans
with the broader EAC development strategies – H.E. Orr
FRANCE: Ambassador Extraordinary and
Plenipotentiary, H.E. Jacques Champagne de
Labriolle
NETHERLANDS: H.E. Ambassador Dr. Ad Koekoekk
TURKEY: Ambassador Extraordinary and Plenipotentiary, H.E. Mehmet Kadri Sander Gürbüz
With a young dynamic population, Turkey is well-positioned to enter
into a fruitful, mutually-rewarding relationship with East Africa – H.E.
Amb. Gürbüz
DENMARK: H.E. Ambassador Bjarne Henneberg Sorensen
With the Customs Union and the Common Market Protocol, the blueprint for further political and economic integration of the EAC countries is now in place – H.E. Amb. Sorensen
UNITED STATES: H.E. Ambassador Alfonso E. Lenhardt
This act of accreditation is an expression by the US government of its
confidence in the EAC’s ability to contribute significantly to bettering
the lives of millions of East Africans – H.E. Amb. Lenhardt
BRAZIL: H.E. Ambassador Francisco Carlos Soares Luz
We have a lot to share together for our common prosperity and development – H.E. Amb. Luz
France believes in regional integration as the future of
Africa –
Amb. de Labriolle
The cOMMUNITY Ma g azine
| Issue No 11
Issue No 11 |
The cOMMUNITY Ma g azine
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10
East Africa turns the world’s attention to Mwanza, Tanzania at the
end of this year where the first
Lake Victoria Basin Investment Forum kicks off on 5 December.
tal transboundary resource – the
most important shared resource
of the five East African Community
Partner States for the region and
one which has been designated an
explosive economic growth zone.
The Lake Victoria Basin is estimated to cover over 194,000 square
kilometres with a market potential
of over 40 million people and an
estimated annual GDP of USD 40
billion.
The three-day Forum to run until 8
December 2010 aims to showcase
the investment opportunities that
abound in the Lake Victoria Basin
and is expected to bring together
investors and potential investors
from within and without the reIts wealth of resources of economgion.
ic importance means it compares
The Forum whose theme is “Real- well with the overall EAC with a
ising Socio-Economic Benefits from population of over 130 million and
Investing in the Lake Victoria Ba- a GDP of nearly USD 75 billion.
sin”, is expected to bring together
1000 business and government Yet in spite of the abundance of
leaders from the region and inter- resources, poverty remains high,
and experts agree there’s a need
nationally.
for increased synergies and coopThe December event shines the eration if the Lake Victoria Basin’s
spotlight on the potential of a vi- shared vision of a “prosperous
LAKE VICTORIA
BASIN: READY
FOR INVESTMENT
INVESTMENT
population living in a sustainably
managed environment providing
equitable benefits and opportunities” is to be achieved.
The Forum sets out to strengthen
the bonds of integration among the
communities of the Basin; showcase trade and investment opportunities to the regional, inter-regional, emerging and international
markets and; highlight the goods
and services, and industrial development in the various countries as
an investment opportunity.
Thematic Areas
The Forum will revolve around five
thematic areas, namely; Transport and Communication, Tourism,
Agri-business and Fisheries, Trade
and Industry, and Investment-led
Research and Development.
Transport and communication: will
focus on transport within the lake,
safety of navigation and the support services that can be provided
by other infrastructure, and telecommunication to this industry.
Investment areas to be covered
under this theme will include Passenger and Cargo transport, Shipbuilding, Dredging, navigation and
safety equipment.
Tourism: This theme will be hosted
at the BOT and will have exhibitions by relevant stakeholders and
investors, room for round table
and one-on-one discussions. Field
visits will be arranged to the Old
Port in Nyamikoma, Serengeti National Park and Namali areas.
Agribusiness and Fisheries: The
focus will be on value addition,
and marketing as it contributes to
reduction in food insecurity and
poverty. It will address issues of
provision of marketing information, free movement of
10 |
The cOMMUNITY Ma g azine
| Issue No 11
INVESTMENT
11
THE LAKE VICTORIA BASIN IS
ESTIMATED TO COVER OVER
194,000 SQUARE KILOMETRES
WITH A MARKET POTENTIAL
OF OVER 40 MILLION PEOPLE
AND AN ESTIMATED ANNUAL
GDP OF USD 40 BILLION
EAC Secretary General Amb. Juma Mwapachu handing over EAC flags during a tour
of the Lake Victoria Basin.
goods and services as provided for in the common market
protocol. Site visits may include
visits to fish landing sites and the
fish market.
Trade and Industry: Under this
sector focus will be on providing
information on cleaner production technologies, compliance by
industry, and showcasing alternative energy solutions. Site visit
and side events will be discussed
in more detail by the committee.
Investment-led Research and Development: This theme will focus
on the relationship between investment and Research and Development. Workshops, discussions
and exhibitions will centre on how
research provides an enabling environment for investment, and informs policy that in turn affects
investment. It also provides investors with the information required
for strategic decision-making. The
theme will also help to showcase
innovations and appropriate technology, providing an opportunity
for investment in the sector.
Outputs
Increased investments in the Lake
Victoria Basin for job creation and
income generation; joint ventures
and partnerships between the local business community and international businesses; stronger
regional ties as a result of cross
border and inter-regional business
partnerships and; stronger relationships between East Africa and
emerging markets are some of the
expected outcomes of the conference.
The Venue
The Malaika Beach Resort is the
venue for the Forum which is jointly organised by the EAC Secretariat, the Lake Victoria Basic Commission, the host Partner State (United
Republic of Tanzania), national investment promotion agencies and
the tourism promotion authorities
of the Partner States, and the East
African business community.
THE HOST CITY
Mwanza is Tanzania’s second largest city and economic heart of the
Lake Region. The city is located in
the extreme northern part of Tanzania mainland dominated by Africa’s
largest lake - Lake Victoria.
The town overlooks the lake, with
dramatic views of the Bismarck
Rock – a massive outcrop of granite rocks. Mwanza is accessible by
road, rail water and air.
Mwanza Airport located 10 km from
the city centre has daily domestic flights provided by Precision
Air and Air Tanzania and boasts a
network that connects the town to
Nairobi, Comoros, Entebbe (Uganda), Johannesburg (South Africa)
among others.
For more information or to register
for the Forum online, visit: http://
www.lvbinvestmentforum.eac.int/
Issue No 11 |
The cOMMUNITY Ma g azine
| 11
12
IN FOCUS
IN FOCUS
13
“The Eastern
wing, the section
that will host
the East African
Court of Justice
once the building
is complete, was
already at top
floor level when
The Community
team visited
in October”
EAC’S NEW
HOME TAKES
SHAPE
A year ago, it was nothing more
than a vast swathe of land; uninhabited and unremarkable. Then
five heads of state came to town,
and Plot 12 Block III Sekei area was
transformed from a quiet backyard
that once served as a parking lot
into a hive of activity. In about 9
months, the makeover should be
complete.
EAC a permanent home adjacent
to the Arusha International Conference Center, which currently hosts
the EAC Secretariat and East African Legislative Assembly (EALA).
What stood in the marquee hosting
the ceremony that day was a striking artist’s impression of what lay
in store. In its place today stands
an edifice that has steadily taken
shape over the last one year, existing in the midst of an unrelenting
din generated by an army of committed workmen who barely allow
their tools a minute of rest.
The presidents of the five EAC
member states of Burundi, Kenya,
Rwanda, Tanzania and Uganda on
20 November 2009 jointly unveiled
the foundation stone for the Community headquarters building as
part of the EAC’s 10th Anniversary Actual construction work only becelebrations, officially setting in gan end of January this year, but
motion the project that will give no one that pays a visit to the
12 | The cOMMUNITY Ma g azine | Issue No 11
building site could doubt work is
well on course. The Eastern Wing,
the section that will host the East
African Court of Justice once the
building is complete, was already
at top floor level when The Community team visited in October,
and the Project Liaison Officer at
the EAC Secretariat / EAC Senior Estates Management Officer Mr Phil
Kleruu (picture above) says work
progress is on schedule.
will be greeted by a rattle of metalwork at the site; the building has
to be ready before the end of August 2011.
FACTS, FIGURES, FEATURES
• The project is estimated to cost about 14 million euros
The complex will have three main
wings of four storeys each, resting
on a specially designed combined
raft and pile foundation. The main
contractor for the project is M/S
African Real Estate Company Ltd;
supervising 6 sub-contractors.
• The EAC headquarters building sits on 9.85 acres of land
And it has to be, if you consider
that EAC has set an ambitious
timeframe – of 18 months – within which the contracted consortium ought to have completed the
structure. Little wonder a visitor,
no matter the timing of their visit,
For now, the walls might still be
some way from their first coat of
paint, but the incessant rumble of
tipper trucks and concrete mixers
is reassuring proof of one thing:
we can’t be too far off from a place
to call home.
• The Federal Republic of Germany is financing the project
• The four-storey complex will house three wings for the Court,
Secretariat and Legislative Assembly; and includes state-of-the-art
facilities such as conference rooms of various sizes, VIP rooms,
committee rooms, court rooms, media center, a plenary hall and a
library among others
• The building will also have an international restaurant, banking, postal and shopping facilities
• Construction work commenced 28 January this year and the
complex is expected to be complete by 18 August 2011
• The complex will save the EAC at least $600,000 in annual rent
fees
Issue No 11 |
The cOMMUNITY Ma g azine
| 13
< AUGUST >
President Mwai Kibaki displays a
copy of Kenya’s new constitution
following its promulgation at the
Uhuru Park grounds in Nairobi.
MARCH
Tanzania and Rwanda agree on
the joint development of the
Rusumo one-stop border post
President Paul Kagame is sworn in
for his 2nd term at the Amahoro
National Stadium in Kigali, Rwanda
V
AUGUST >
< APRIL
SEPTEMBER
His Excellency Pierre Nkurunziza is
sworn in as Burundi’s President in
Bujumbura, Burundi.
President Yoweri Museveni
makes the case for better
infrastructure in the region at the
3rd EAC Investment Conference in
Kampala, Uganda
Professor Hellen Sambili, Minister for
EAC (Kenya) swears in as a Member
of the East African Legislative
Assembly in Bujumbura, Burundi.
V
< NOVEMBER
< MAY
H.E Dr Mohamed Shein takes his
Oath of Allegiance following his
election as Zanzibar President.
President Kikwete arrives at the
Kenya National Assembly to deliver
the State of EAC Address at the EALA
5th Meeting of the 3rd Session
Hon. Dr Diodorus Kamala poses for
the cameras before reading the EAC
Budget speech to the EALA.
JULY >
NOVEMBER >
Tanzania Chief Justice Augustino
Ramadhani shows off a copy of the
EACJ Strategic Plan after its launch.
Applauding are Justice Harold
Nsekela and Dr Julius Rotich (right)
and Prof Evans Aosa (left).
President Jakaya Kikwete pledges to
faithfully serve the United Republic
of Tanzania for another term.
14 |
cOMMUNITY Ma g azine
| Issue No 11
One People. One Destiny
Issue No 11 |
cOMMUNITY Ma g azine | 15
16 CELEBRATION
HOUSE BUSINESS
17
IUCEA MARKS
DECADE OF
REVITALISATION
THE I N TER UNIV ERSITY COUNCIL FOR E AS T AF RI C A S EE K S TO
FACILITATE C ONTACT AND ACADEMIC C O L L B O R AT I O N A M O N G S T
UN I VERSI TI ES IN TH E REGION.
P RO F. N YA I G OT T I - C HA CH A ,
FORMER EXECUTIVE SECRETARY
(IUCEA)
The Inter-University Council for East
Africa (IUCEA) made 10 years this
year since its revitalisation, and to
celebrate the milestone organised a
three-day conference in conjunction
with the Ministry of EAC in Kampala,
Uganda. The 10th anniversary conference, themed “Higher Education Fostering East African Integration”, was
held at the Imperial Royale Hotel 1921 October.
The conference sought to explore the
potential of IUCEA and higher education institutions in enhancing their
effectiveness in promoting higher
education as a tool for development
knowledge and technology and consequently livelihoods and economies
of the East African countries.
Keynote papers relating to IUCEA’s
decade of revitalisation (20002010) broadly examined the role
of higher education in fostering
socio-economic transformation, the
challenges and prospects of higher
education in the 21st century and
the employability and job creation
capacity of EAC graduates.
Conference participants included:
policy makers, universities’ staff
and students, officials from ministries responsible for higher education, science and technology and
other higher education stakeholders, research organisations, development partners, the private sector
and civil society.
ABOUT IUCEA
The IUCEA, which seeks to facilitate
contact and academic collaboration
amongst the universities in East Africa, also used the conference to take
stock of the key achievements and
challenges in promoting the strategic development of higher education
in East Africa, share experiences and
assess, consolidate and strengthen
partnerships, among others.
16 |
The cOMMUNITY Ma g azine
The Inter-University Council for East
Africa (IUCEA) was established in
1980 by the three Governments of
Kenya, Tanzania and Uganda with
the objective of facilitating contact
between the universities of East Africa, providing a forum for discussion on a wide range of academic
| Issue No 11
and other matters relating to higher
education, and helping maintain high
and comparable academic standards.
It is a successor to the former InterUniversity Committee (IUC) which
was created in 1970 under the East
African Community (EAC) to facilitate
continued collaboration among the
then three national universities – the
University of Nairobi, the University of
Dar es Salaam and Makerere University which had become autonomous in
relation to affiliation to the University
of East Africa.
Following the collapse of the East African Community in 1977, an MOU for
the IUCEA was signed to maintain the
spirit and benefits of the IUC. The IUC/
IUCEA survived under major financial
and managerial difficulties, until the
revival of the East African Community
in 1999. In the Treaty for the Establishment of EAC, the IUCEA is recognised
as one of the surviving institutions of
the East African Community.
EALA at its 5th Meeting of the 3rd Session in Mombasa, May 2010
EALA FOR REGIONAL
ACCREDITATION OF
UNIVERSITIES
The East African Community should expand the mandate of
the Inter-University Council for East Africa (IUCEA) to cover
accreditation for higher education institutions and universities to enable them function regionally, a member of
the East African Legislative Assembly (EALA) has proposed.
A Private Member’s Bill tabled by Hon. Daniel Wandera Ogalo
during the 1st Meeting of the 4th Session of the Second Assembly held in Bujumbura, Burundi and entitled “The InterUniversity Council for East Africa (Amendment) Bill, 2010”
seeks to revise the Inter-University Council for East Africa
Act, 2008 and confer upon the EAC institution power and responsibility to conduct EAC-wide university accreditation.
Two key issues outlined in the proposed amendment of
Section 6 of the IUCEA Act are; facilitation of foreign universities in the Community by granting them accreditation
to operate in any Partner State without going through national accreditation processes, and, facilitating the establishment of any member (East African) university which
may apply to operate in another Partner State by granting
it the necessary regional accreditation. Section 6 of the
Act delineates the functions of the inter-university body.
Debate
on
the
Bill,
however,
is
only
expect-
ed to commence during the next session of
the EALA, due December in Kampala, Uganda.
Hon. Ogalo’s argument in advocating a review of the IUCEA’s remit is that regional accreditation of higher education institutions and universities within the Community
will spur higher university enrolment, cause increased
investment in tertiary education and reduce duplication while improving coordination among universities.
In a memorandum attached to the proposed amendment the EALA Member further asserts that regional accreditation will attract high quality national and foreign
universities to establish regional campuses or partnerships with EAC education institutions which he says
would afford students better quality training and ultimately enhance their prospects for employment.
The former Executive Secretary of IUCEA Prof. Chacha Nyaigotti-Chacha welcomed the Bill while speaking at a media briefing at the EAC Secretariat headquarters in Arusha in October, but pointed out such
a move could be hampered by the absence of harmonised accreditation criteria because at the moment
each Partner State has its own accreditation body.
Issue No 11 |
The cOMMUNITY Ma g azine
| 17
18
REGION FOR
INTEGRATED
PAYMENT
SYSTEMS
INTEGRATION OF PAYMENTS
AND SETTLEMENT SYSTEMS
IS CRUCIAL FOR THE EAC
REGION AS THE PROPOSED
EAST AFRICAN MONETARY
Integration of payments and settlement systems is crucial for the EAC
region as the proposed East African
Monetary Union (EAMU), with an
eventual objective of a single currency, will require the implementation of monetary policy on a regional
basis, which in turn has implications
for the organisation of wholesale
money markets and high value payment systems on a regional basis.
UNION (EAMU) WILL REQUIRE
THE IMPLEMENTATION OF
MONETARY POLICY ON A
REGIONAL BASIS
The East Africa Community in its
quest for a monetary union will turn
its focus on actions that can be taken
by governments, central banks and
regulators to support innovation,
development and integration of the
payment and settlement system in
the region at a conference labelled
Making Finance Work for East Africa
due January 2011 in Kigali, Rwanda.
The conference whose theme is “Payment and Settlement Systems Development and Integration in the
East African Community” is organised by the African Development
Bank in collaboration with USAID
and other Development Partners, under the auspices of Making Finance
Work for Africa Partnership (MFW4A).
18 |
The cOMMUNITY Ma g azine
In addition, the logical consequence of a single currency is
the creation of a common integrated retail payments market.
Finance experts at the EAC Secretariat
affirm that payment and settlement
systems make up the backbone of
the financial system in any country and that an efficient payment
and settlement system is critical
to ensuring that payment obligations are processed and settled in
a timely manner and with certainty,
thus minimising potential systemic
instability from failed settlements.
Efficient systems also ensure flexibility and facilitate innovative development while managing risk, and
also support the integration of national economies into regional and
international payments systems.
The conference will address critical components of payment and
settlement systems such as infra-
| Issue No 11
FINANCE
MEDIA SUMMIT
19
Hear From
Amb. Juma V. Mwapachu; Rt.Hon. Abdirahin H. Abdi
structure issues, regulatory frameworks and institutions and markets,
and discuss emerging issues, such
as technological influences on payments and settlements systems.
Discussions on infrastructure issues
are expected to center on implementing a regional Real Time Gross Settlement (RTGS) system, which would
be necessary for the implementation of monetary policy by a regional
central bank in a monetary union.
EAC Secretary General
Speaker/EALA
The two-day event organised by the EAC Secretariat and the East
African Business Council will also provide the stage for the first ever
EAC-EABC Media Awards.
Mr. Owora Othieno
Mr. Faustine Mbundu
Ag. Head, EAC
Chair EABC
Corporate
Communica-
tions and Public Affairs
Other key infrastructure issues include
linking national payment, clearing and
settlement systems, and the integration of capital market systems while
regulatory issues will revolve around
harmonisation of national payments
system regulations, modernisation
and harmonisation of regulations for
nnovative payment instruments (such
as mobile money transfers, e-commerce and cross-border remittances).
A place at the heart of the East African media space is what the EAC
aspires to in the new decade, and the 2011 edition of the Media
Summit will provide a platform to reaffirm this objective with a rich
variety of discussion topics that will sell the EAC as an agenda for
the next decade, and analyse the role of the media in delivering this
agenda.
The conference which is expected to bring together more than 100
media owners, managers and journalists from all the five EAC Partner
States also promises lively debate on the benefits of the EAC integration to the mwananchi as well as an examination of the strategic
drivers for achieving the Common Market, whose Protocol signed last
year in November came into effect on 1 July this year.
Mrs. Olive Kigongo
Mr. Linus Gitahi
Uganda National Cham-
CEO/Nation Media Group
ber of Commerce and
Industry
The event will draw on the experience of other regional integration
initiatives and how they have dealt
with challenges in this area. It will
also consider the role that the private sector can play, whether entities such as mobile network operators (MNOs), independent technology
companies, private switches, or other
independent service providers.
EAC, MEDIA
TO RENEW
NUPTIALS
FOR NEXT
DECADE
The 4th East African Media Summit has been confirmed for 28-29
January 2011 at the
Hilton Hotel in Nairobi, Kenya. And
as the first Summit
being held in the
new decade, the
conference theme;
Claiming The Next
Decade - An Agenda For The Future,
couldn’t have been
more apt.
Winners of the EAC Media Awards Competition 2010 will be announced
and the 2011 competition launched at the EAC-EABC Media Awards
Gala Dinner to be held at the end of the first day of the Summit. The
Awards seek to recognise East African journalists who have consistently and exceptionally covered the story of EAC’s integration.
The EAC’s relationship with the media fraternity is as old as the regional bloc, and this engagement was granted a formal standing in
2007 with the launch of the East African Media Summit in Nairobi.
Mr. Reginald Mengi
Mr. Jenerali Ulimwengu
Chair IPP Media
Media Expert and
Activist
Subsequent editions were then held in Dar es Salaam and Kampala
in Tanzania and Uganda respectively. The return to Nairobi in 2011
offers an opportunity for a renewal of vows in a marriage that grows
stronger by the year.
For event information visit http://www.eac.int/mediasummit
Issue No 11 |
The cOMMUNITY Ma g azine
| 19
20
COMMENTARY
SHOULD EAC
REGULATE
COMPETITION?
The EAC entered into a Customs Union in 2005 and started
the implementation of the Common Market Protocol in
July 2010. As a direct result of the Customs Union competition in the EAC has intensified. With the advent of the
Common Market, the intensity of competition is predicted
to double.
As competition intensifies, and more players enter the
market, firms have a natural tendency to conspire,
scheme, collude, and form cartels in order to fix prices,
allocate markets and make it difficult for other companies to enter the market. From this basic understanding
stems the need to regulate competition to ensure that
firms don’t abuse their powers.
Why EAC must regulate competition
It is often stated that
tween firms is a prenomic development.
promotes innovation,
increases the qual
qualserable
competition
bebe
cursor to eco
ecoCompetition
lowers prices and
ity and choice of
products and
vices avail
availto con
con-
sumers. However, not all forms of competition are beneficial to the EAC economy.
A competition culture that is characterised by high levels
of cartelisation, heavy handed government intervention,
overregulation, high barriers of entry for SMEs, and monopolies abusing their positions of dominance are counterproductive forms of competition. As the EAC begins the
implementation of the Common Market, one is pushed to
wonder, which kind of competition do we currently have
in the East African Community? Is it the kind of competition that constantly pushes companies to innovate and
reduce prices? Does it increase the choice of products and
services available to EAC consumers? Or, is it the type
of competition that is defined by companies colluding to
hijack the market?
The answer lies somewhere in the middle but one thing
is certain, with the intensification of competition in the
EAC there will be frictions between companies across the
region as they seek to gain advantage over their competitors. There shall also be instances where companies
in one EAC country behave in such a way that firms in
another EAC country are affected. Because national laws
do not have regional reach, in the absence of a regional
competition law there wouldn’t be any legal framework to
combat such practices.
To address cases where competition goes awry, the
EAC Competition Act was assented to by the
Summit in 2006. Its objective is to create
the sort of environment that protects
and promotes free and
M R A LLO Y S M U TA B I N G W A ,
EAC DEPUTY SECRETARY GENERAL
(PLANNING AND INFRASTRUCTURE)
20 |
The cOMMUNITY Ma g azine
| Issue No 11
COMMENTARY
21
fair competition. It establishes the EAC Competition
Authority to enforce the Act.
The Act prohibits a number of anti-competitive practices
in the region. Some of them include predatory pricing, and
cartels.
Consumers in the EAC region continue to lament the fact
that despite their entry into the EAC Customs Union,
whereby goods wholly produced in Partner States attract
zero tariff rates, prices of goods have not reduced accordingly. In some cases, there have been media reports
that retail prices of products such as sugar and flour had
increased. How could it be?
The fact that prices of key commodities have stagnated/
increased despite the EAC’s entry into the Customs Union
suggests that some sectors within the EAC are highly cartelised. There is a strong possibility that in the retail sector, prices are artificially made and not market driven.
State of Play, Challenges and Way Forward
The Council directed the Secretariat to prepare an Amendment Bill on Article 38 of the Competition Act, 2006 in
order to provide for the appointment of a Commissioner
from each Partner State (5 instead of 3) in the composition
of the Competition Authority; urge the Republic of Uganda,
the Republic of Rwanda and the Republic of Burundi to establish competent national authorities on competition for
purposes of the implementation of the EAC Competition
Act; and to begin the preliminary arrangements including the establishment and seating of the EAC Competition
Authority.
The implementation of the Council’s directives is well underway. The Amendment Bill on Article 38 of the Competition Act, 2006 only awaits assent by the Summit, while the
EAC Directorate of Trade has been mooted as a temporary
secretariat for the EAC Competition Authority while funds
are sourced for a permanent home.
Anti-competitive pracTo date, three out
TH E E A C C O MP E TITIO N A C T, 2006 W IL L H E L P P R OTE C T SME S
tices that are prohibof five Partner
FR O M TH E VA G A R IE S A ND G R E E D O F L A R G E R C O M PA NI E S
ited under the EAC
States (Burundi,
IN TH E R E G IO N. IT W IL L H E L P U NL O C K TH E P OTE NTIAL F OR
Competition Act, 2006
Tanzania and KeS M E S TO BL O S S O M
are numerous and all
nya) have compecannot possibly be extition laws while
pounded on here. But
they include among others bid the same process is underway
in Uganda and
rigging, market sharing, abuse of dominance, geographical Rwanda. Of those three countries, Kenya and Tanzania
allocation and limiting supply.
have established institutions to enforce competition laws.
Burundi is in the process of establishing a Competition
Regardless, however, of the shape or form that anti-com- Commission. There is a need to support/expedite the propetitive practices take, the impact is mostly felt by SMEs cess enacting competition laws in the other two Partner
and consumers. If competition is not regulated in the Cus- States.
toms Union and Common Market, small enterprises will
continue to feel the brunt of anti-competitive practices Challenges such as awareness and political will remain, so
through their inability to enter and fairly compete in the there is a need to sensitise key stakeholders at national
market. For consumers, it will simply translate into an in- and regional levels on the benefits of the Competition Act,
crease in prices and a reduction in their choices of goods particularly within the context of the Customs Union and
and services.
Common Market. Competition policy and law could help
alleviate some of the fears some Partner States have of
The EAC Competition Act, 2006 will help protect SMEs from a possible market takeover by big firms in the region.
the vagaries and greed of larger companies in the region.
It will help unlock the potential for SMEs to blossom and This is an abridged version of a paper by Mr Alloys Mutabingwa, EAC Deputy Secretary General (Planning and Inin the process benefit EAC consumers.
frastructure)
When it comes into force, the basic objectives of the EAC
Competition Authority will be to: control restrictive agree- Visit http://www.eac.int/news to read or download this
ments/arrangements; curb anti-competitive practices; commentary in its entirety
control mergers and acquisitions; control abuse of dominance and ensure consumer welfare.
Issue No 11 |
The cOMMUNITY Ma g azine
| 21
22 CRASH COURSE
CRASH COURSE
23
EPAS: WHAT THEY MEAN FOR EAC
No trade-related discussion in the EAC
is complete today without the mention of ‘EPAs’ or Economic Partnership
Agreements. But what are they? And
what do they mean for our region?
EPAs to provide a bridge until the conclusion of the full EPAs. The interim/
framework EPAs contain a WTO-compatible market access offer as well as
a commitment to negotiate outstanding issues in the EPA.
A Brief History
EC Market Access Offer
The EAC Partner States are among the
African, Caribbean and Pacific (ACP)
group of countries that entertain a
special relationship with the European Union, started in 1957.
The ACP-EU trading relationship is
based on a preferential access of
products from the ACP group members to the European market. During
the period between 2002 and the end
of 2007, the EU agreed to provide nonreciprocal, duty free market access to
ACP countries, under the terms and
conditions of the Cotonou Partnership
Agreement.
WHY THE EPAs?
Following the expiration of the Cotonou Agreement, Parties agreed to
conclude new WTO-compatible trading
arrangements, progressively removing barriers to trade between them
and enhancing cooperation in all areas relevant to trade. These trade
arrangements are what are referred
to as the Economic Partnership Agreements (EPAs).
FROM FEPA TO EPA
The European Commission proposed
the initialing of (interim) Framework
22 |
The cOMMUNITY Ma g azine
Duty free and quota free access for all
EAC exports to EU, except for arms.
EAC Market Access Offer
Liberalisation of 82.6% of imports
from the EU over a 23 year transition
period (2010-2033).
Contentious Issues
Upon initialing the Framework EPA on
27 November 2007, the EAC Partner
States and the European Commission
reviewed various articles of the FEPA.
Most of these articles, known as the
“contentious” issues, have been the
subject of extensive debate between
both Parties and remain outstanding.
These issues include:
(i)
Export TTaxes
The EAC’s concern with this article is
the impact that this restriction will
have on its policy space in the use of
export taxes as a trade policy instrument. The EAC Customs Management
Act, 2004 provides for prohibited and
restricted goods and it is to this effect
that export of certain goods may be
prohibited or restricted under the Act.
Currently, some EAC Partner States
| Issue No 11
apply export taxes.
(ii)
ment
Most Favoured Nation Treat-
EAC’s concern is that the current provision would have an impact on EAC
Partner States’ possible bilateral negotiations, since any preference EAC
gives to a developed country, or regional entity accounting for over 1.5%
of world merchandise trade would
be automatically extended to the EU.
WTO rules however allow for bilateral preferences between developing
countries.
(iii)
Economic & Development
Cooperation
The EPAs contain development cooperation provisions in recognition of
the fact that changes to the trade regime will entail certain costs for the
EAC in the short to medium term.
The EAC Partner States would like to
ensure that additional resources are
made available to assist them in taking advantage of opportunities stemming from implementation of the
agreement.
STATUS OF THE EAC-EC-EPA
The outstanding issues in the FEPA
could not be resolved at a meeting
between Ministers from the EAC Partner States and the Commissioner for
Trade from the European Commission
held in Dar es Salaam on 9 June 2010.
Hence, it was not feasible to sign the
Framework Agreement (FEPA) as had
been expected. As a way forward,
both Parties agreed to finalize the
Comprehensive EPA Negotiations by
end of November 2010.
Negotiations for the comprehensive
EPA are to cover: Customs and Trade
Facilitation; Rules of Origin; Technical
Barriers to Trade, Sanitary and Phytosanitary Measures; Trade in Services;
Trade Related Issues – i) Competition
policy, ii) Investment and private sector development, iii) Trade, environment and sustainable development,
iv) Intellectual Property Rights, and v)
Transparency in Public Procurement;
Agriculture; Dispute Settlement Mechanism; Economic and Development
Co-operation; and any other areas
that the parties find necessary.
What if the deadline is not met?
Until the Parties meet to review the
status of negotiations, the implications cannot be deduced at this point
because there are issues which remain unresolved.
(ii)
What’s in it for the private
sector:
sult of a transparent and predictable
trade regime
•
100% duty free, quota free access to EU markets – already operational
•
Simplified
rules of origin
(iii)
•
Aid for Trade is an added support mechanism
•
Private sector development is
taken care of in the EPA text as the
Parties agree to work together to foster competitiveness and value addition among others.
•
Consolidating the EU market
for EAC’s exports
•
A more predictable regime
than just a unilateral arrangement,
even, for countries covered under the
Everything But Arms (EBA) initiative
•
Increase FDI inflows as a re-
(user-friendly)
Impact on tariff revenues:
•
EAC Partner States are liberalising based on the EAC common external tariff
•
65.4% of the value of imports
from the EC already at zero tariff under the EAC common external tariff.
17.6% of the value of imports from the
EC is excluded as sensitive products.
In effect therefore, the EAC is liberalising only 17% of its imports from the
EU over the course of 23 years from
2010 to 2033
•
EAC countries have 5 years
to prepare for expected tariff revenue
losses.
VITAL FIGURES
IMPLICATIONS OF THE EPA
(i)
tion:
Deepening regional integra-
•
EPA Supports EAC regional integration. Apart from SADC, EAC is the
only existing regional economic community to have initialed one unified
EPA schedule. The legal obligations of
being a member of the EAC Customs
Union mandate that EAC members
must have a common external trade
policy.
•
The EU is EAC’s largest trading partner accounting for 19.9 percent
of trade in 2009 compared with 18.4 percent recorded in 2008.
•
EAC’s main exports to EU are agricultural (coffee, tea, spices, plants
& flowers, fish & fish products, & horticultural products accounted for
72% of EAC total exports to EU in 2008).
•
EAC’s main imports from EU: machinery – mechanical and electrical, pharmaceuticals, vehicles – 60% in 2008
For details go to: http://www.eac.int/trade
Issue No 11 |
The cOMMUNITY Ma g azine
| 23
24
‘COMMON
MARKET COULD
MEAN MORE
CASES FOR
COURT’
A: We received around nine cases and
this has made the Court very busy for
the first half of the current financial
year, and when Judges and Court staff
are engaged in handling these cases
they not only serve the Community
and its people but they also gain a
lot of experience because every single case comes with its specialty and
challenges, most of which are educative to everybody that handles them.
The Court also concluded and
launched its five-year Strategic Plan.
This was a very big, actually remarkable achievement for it is this ‘tool’
that will guide the direction of the
Court in the next five years.
24 |
The cOMMUNITY Ma g azine
three cases have been filed.
Q: Court launched a Strategic Plan this
year. How far have you gone with its
implementation?
A: Nearly all the activities of the Court
as planned for the first half of the
current financial year (for example
raising visibility of the EACJ by holding
Court sessions in the Partner States
where both parties come from the
same Partner State) have been implemented.
Q: EACJ still receives few references
from the Partner States of Rwanda
and Burundi. Why is that so?
The East African Court of Justice
comes off an eventful 2010. In July,
the Court launched its five-year Strategic Plan (2010-2015) while in August
it determined a case outside its seat
in Arusha for the first time, in Nairobi.
THE COMMUNITY magazine sought the
views of Deputy Registrar, Geraldine
Umugwaneza, on these and other developments. Excerpts below:
Q: It has been an eventful year. Tell us
what you view as the highlights of the
Court for 2010?
Q&A
GERA L D I N E U M U G W A N E Z A ,
DEPUT Y REG I ST RA R, EA ST
AFRI C A N C O U RT O F J U ST I C E
Q: We’ve seen the EACJ getting more
cases referred to it this year. Any specific reasons for that?
A: This has been a result of the Court
making efforts to publicise itself and
making itself known to the EAC people. The Court conducted awareness
workshops in the five capitals of the
Partner States on its jurisdiction in
general but in particular its arbitration jurisdiction.
The Court has also gone an extra mile
and started hearing cases from capitals of Partner States. Since this year
[in] August when a ruling in one of
the cases was delivered in Nairobi
| Issue No 11
A: We do not know why there are not
many cases yet from Rwanda and Burundi. What we can say is that these
are new members of the East African Community. It will therefore take
quite some time for people particularly from these Partner States to know
about the Court and the Community
as a whole.
Q: How do you plan to scale up usage
in these countries?
A: The hope and strategy we have to
scale up usage is the establishment
of EACJ Sub-Registries and carrying
out continued awareness activities in
each of the five Partner States.
Q: What would you say were the biggest challenges the Court faced this
year?
A: Financial. Funds take some months
to be submitted after the beginning
of each financial year. This [affects] a
number of Court’s activities and the
Court does not as necessary operate
on the planned schedule due to limited funds.
PARTNERSHIP
25
Q: There have been suggestions that
the Court should be one of the Organs
hosted in a different Partner State. Do
you feel that would be beneficial?
A: The Court is a creature of the Treaty
establishing the EAC. It is therefore
the Partner States to determine where
it will be hosted. It will be the Summit that will determine what is beneficial to the Community people not
the Court as an Organ as it weighs
where to establish and host it.
Q: What are the Court’s prospects for
2011?
A: First, Immediate term implementation of the proposed working on full
time and residence of Judge President
in Arusha, and addition of some staff
will be a great turning point in the
daily operations of the Court. Then
with the implementation of the Common Market Protocol we hope that
more cases and references will be
made to the Court.
Also, with the establishment of SubRegistries more cases may also be
filed since the Court will have opened
up more to its stakeholders.
RISP 2 STARTS IN JANUARY
The Regional Integration Support
Programme (RISP 2) continuation
programme gets underway in January 2011 following the signing of a
Contribution Agreement (CA) between COMESA and the European
Union (EU).
The programme which amounts to
50 Million Euros has the Common
Market for Eastern and Southern
Africa (COMESA), East African Community (EAC), Indian Ocean Commission (IOC) and Inter Governmental Authority on Development (IGAD)
as its primary beneficiaries. It is to
be implemented over a period of
36 months. Ten Million Euros of the
total sum has been earmarked for
infrastructure.
The overall objective of RISP is to
contribute to the integration agenda
of the Eastern, Southern Africa and
Indian Ocean (ESA-IO) region as a
means to enhance economic growth
of the countries of the region and
raise standards of living of their respective blocs.
the implementation of the regional
economic integration mandates and
agenda
(ii) Design and/or adjustment of
trade development, trade facilitation instruments and strategic, regulatory and technical preparatory
works of trade related infrastructure
(iii) Establishment and strengthening of regional institutions to implement and monitor policies and regulations, including institutions that
service private sector at regional
level
DR JA ME S NJA G U,
PR INCIPA L R E S OUR CE
MOB IL IS ATION OF F ICE R
signed with COMESA. The EAC, which
will receive 11 of the 50 Million
Euros, signed its Implementation
Agreement with COMESA in November this year.
The RISP 2 continuation programme
(Phase 1) was established under the
10th European Development Fund
(EDF). Its focal area is economic integration.
(v) Enhanced Member States capacity to address trade related issues
and to implement their trade liberalisation and regional integration
commitments
(vi) Enhanced capacity of the region
to negotiate and implement multilateral trade agreements.
KEY RESULT AREAS:
The programme is implemented
through Implementation Agreements (IA) that EAC, IGAD and IOC
(iv) Improvement of management
capacities of the regional organisations to meet international recognized standards of governance
(i) Design and/or adjustment of regional policies and regulations for
Issue No 11 |
The cOMMUNITY Ma g azine
| 25
26
POLICY & STRATEGY
27
EXTRAS
EAC CROSSWORD
EAC FINE-TUNES
STRATEGY TO
BOOST VISIBILITY
The EAC is getting closer to realising
a Communications Strategy. Consultants tasked with refining the draft
EAC Information and Communications
Policy and Strategy presented the document to senior EAC staff in October.
The five-year Strategy (2010-2015)
defines the EAC’s path to achieving greater visibility within the Partner States with key goals that include creating wider awareness of
the regional organisation and nurturing positive attitudes towards
it in the five Partner States of Burundi, Kenya, Rwanda, Uganda and
the United Republic of Tanzania.
THE NEED FOR THE
STRATEGY IS BORNE OF
The cOMMUNITY Ma g azine
3
4
6
7
8
9
Visit: East African
Petroleum
Conference and
Exhibition 2011 http://
www.eac.int/eapce/
10
11
12
13
15
16
14
17
18
PARTICIPATORY NATURE
19
20
OF THE EAC, AND THE
IMPORTANCE OF STRONG
21
INFORMATION, EDUCATION
AND COMMUNICATIONS
of the recognition of the participatory nature of the EAC, and the
importance of strong information, education and communications schemes in achieving it.
During their Extraordinary Summit
held in Dar es Salaam on 29-30 May
2005, the EAC Heads of State reaffirmed the primacy of popular awareness and participation as the solid
A five-day workshop held in Moshi in foundation on which the regional inApril with representatives from all the tegration process would be anchored.
five Partner States as well as the EAC
Secretariat provided a forum for pre- The Council of Ministers subsequently
liminary deliberations on the Commu- resolved to allocate adequate resourcnity’s information and communica- es to establish an effective mechations needs. These broad discussions nism for public communications
provided some of the inputs for the about the EAC. The EAC Information
first draft of the Strategy document. and Communications Strategy is expected to be forwarded to Council for
The need for the Strategy is borne approval before the end of the year.
26 |
2
5
THE RECOGNITION OF THE
SCHEMES IN ACHIEVING IT
The broad aims of the Communications Strategy include branding the
EAC as a dynamic, people-centred ideal, identity, process and institution for
achieving a prosperous, secure and
united East Africa, and to ensure that
all citizens of the Partner States, their
legislative representatives and policy
makers, and external (to the region)
stakeholders are aware of this brand,
have a positive attitude towards it.
1
| Issue No 11
Visit: 4th East African
Media Summit
http://www.eac.int/
mediasummit/
Visit: Lake Victoria
Basin Investment
Forum
http://www.eac.int/
lvbinvestmentforum
KINANA EADB SAMBILI BUJUMBURA THREE SABINE RWANDA
MUTHAURA MONETARY FOUR COUNCIL CASSOA KAAHWA MOMBASA
MWAPACHU DAR IUCEA FOUR VICTORIA JULY PIERRE KIRASO EACJ
Across
Down
1. First name of the President of Burundi
3. Judicial organ of the EAC abbreviated
6. Policy making organ of the Community
8. Current chair of EAC-COMESA-SADC Tripartite
15. Executive Secretary of the revived East African
Cooperation
17. This city hosted East African Media Summit in
2008
18. Freedoms of the EAC Common Market
Protocol
19. East African country that held general elections
in August this year
20. New Kenyan Minister for EAC
21. EAC expected to move into this stage of
integration in 2012
2. EAC institution that marked 10 years of its
revitalisation this year
4. Month in which the EAC Common Market
Protocol came into force
5. Host City of 1st Meeting of Fourth Session of the
EALA
7. EAC aviation body calls Entebbe home
9. EAC Deputy Secretary General in charge of fast
tracking the Political Federation
10. Natural resource shared by all EAC Partner
States
11. Last name of Counsel to the Community
12. City in which EACʼs 2010/11 Budget was tabled
13. EAC institution mandated to finance regional
development projects
14. Former EALA Member now Cabinet Minister in
Burundi
16. Number of wings in the EAC headquarters
under construction
18. Number of Deputy Secretaries General
appointed by EAC
Issue No 11 |
The cOMMUNITY Ma g azine
| 27
EVENT
VENUE
5-17 Dec 2010
EALA 2nd Meeting of the 4th Session
Kampala, Uganda
5-8 Dec 2010
Lake Victoria Basin Investment Forum
Mwanza, Tanzania
4th East African Media Summit
Nairobi, Kenya
EA Petroleum Conference and Exhibition
Kampala, Uganda
28-29 Jan 2011
2-4 Feb 2011
The Community is published by the
Corporate Communications and Public Affairs Department,
East African Community (EAC)
Arusha International Conference Centre,
Ngorongoro Wing, 2nd Floor P.O. Box 1096, Arusha ,Tanzania.
Tel:255-27-2504253/8 Fax: 255-27-2504255 e-mail: [email protected]
web: www.eac.int
One People. One Destiny
Destination
Destin
ation East Africa
DATE