Category Archives: East African Community News

EAC plans for communication network for rescuing fishermen in lake Victoria is in the offing

Writes Leo Odera Omolo In Kisumu City

The East African Community has envisaged an ambitious plan of installing communications ring around Lake Victoria aim at improving the response time those under distress and need to be rescued.

The visiting Secretary General of the EAC Ambassador Juma V Mwapachu disclosed here that the planned Maritime Rescue Coordination Center will provide the capacity to process distress calls and coordinate search and rescue activities in Lake Victoria.

“In case of a hazard situation, those in distress will call the nearest ship or canoe, which will then trace the area for rescue,” Mwapachu said.

The Center will be supported by mobile telecommunications companies Zain and Erickson of Sweden.

The equipment, which comprises fully tested computerized software is already in Entebbe, Uganda and will be soon moved to the Tanzanian lakeside town of Mwanza where the earmarked Center’s office will be located.

The Tanzanian government has already given promised for the office facilities before an intended office for the center is constructed in the same town.

“The mobile phone companies have erected towers in the greater part of the lake to be accessible for mobile phone operations.”

The EAC Chief who led a team of top official and experts from the organization’s headquarters in Arusha,Tanzania to Kisumu arrived on Tuesday evening by road. He had earlier addressed members of the public on both sides of the Sirare border point separating Kenya and Tanzania before driving on into Kisumu for a two days of busy schedule visit.

The Secretary General said most of the accident that occur involved the over 500,000 fishermen who operate on the lake within the three countries of Kenya, Tanzania and Uganda which shared the Victoria waters.

This disclosure comes a week after 18 Tanzania children drowned when the allegedly overloaded boat capsized.

Last month, over 50 people died after their boat capsized on the Ugandan side of Lake Victoria.”Some of these tragedies occur because each country has its own rescuing system which is not well organized and lacked proper systems and institutions to manage search and rescue operation,” said Ambassador Mwapachu.

The new move will make the ships and small boats operating in the lake to be safe and secure,” he added.

EAC also has research vessels that navigate the lake to establish where ships operate without any hitch. No navigation of the lake has been done since 1902 to establish the efficiency of transport in the lake.

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leooderaomolo@yahoo.com

EAC told to harmonise procurement professionals

Economic and Business News Leo Odera Omolo

PROCUREMENT policies within the East African Community (EAC) should be harmonise, Benon Basheka, the Institute of Procurement Professionals in Uganda chairman, has said.

He said harmonisation was needed if procurement professionals were benefit from regional integration.

Basheka said it does not make sense for the EAC countries to have different policies and claim to be integrated.
He noted that all countries within the European Union use similar procurement standards and policies.

“It is a matter of getting the current procurement policies from each of the states and harmonise them to come up with one document,” he said. Basheka said the harmonised policy would help to embed a culture of professional and value-driven procurement across the region.

This, he added, will bring transparency and accountability in awarding public contracts.

“It will also help procurement professionals to think beyond their countries, and hence be able to take up opportunities across the common market.

“If you have the skills required for an advertised job in Kenya, why not apply for it,” he said.

Basheka urged procurement professionals within in Uganda to build skills in order to compete for opportunities regionally.

The review of the Public Procurement and Disposal of Public Assets Authority Act of 2003 has been completed, and the draft document is waiting for Cabinet approval.

Kenya is in the lead in EAC region FDI outflows

Economic and Business News By Leo Odera Omolo

KENYA and Rwanda are the only East African Community member states investing outside their countries in the year 2009.

According to the World Investment Report {WIR 2010] , the two countries fell in the category of economies that has invested less than USD 0.1 billion in 2009.They did so for the past three years.

Kenya, according to the latest WIR report, registered an increase almost five percent of foreign direct investment outflows of USD 46 million last year compared with USD 44 million in 2008. While Rwanda outflows stagnated at USD 14 million

Tanzania Investment Center director Emmanuel Ole Nenkio was last week quoted by the influential weekly, the EASTAFRICAN as saying that hi country didn’t feature in the list” as there are more than enough opportunities to invest internally.”

Though the country did not feature in WIR 2009 –Investment in a low-carbon Economy- there are over ten Tanzanian firms that have invested in Zambia, Mozambique, Uganda and Kenya, though WIR 2010 report named the key investors to Tanzania as South Africa, Mozambique and Kenya, regional integration by access to larger markets, also fostered FDI in general. However, the East Africa bloc registered the lowest FDI outward stock in2009 as its only invested USD 0,1 billion out of ISD 102,2 billion of total Africa’s outward stock.

Southern Africa is leading the continent after investing almost over half of total FDI In 2009 followed by North Africa ‘s USD 20.3 billion, West Africa at USD 11.4 billion, Central Africa at USD 0.9 billion.

Outward FDI declined all Kenya foreign direct investment outflows in 2009 up to only USD 44 million in 2008

The regions, except Southern Africa, where African transnational corporations is said to have kept investing in natural resources and service sectors, mainly in other countries within the region.

Fdi inflows into Tanzania in 2009 were as low as USD 645 million, compared with USD 679 million recorded in 2008.

According to the director of foreign investment in the Ministry of Natural Resources and Tourism Maria Mmari, tourism earned the country USD 1.2 billion in 2009 from 714,307 visitors.

Tanzania’s economy chiefly depend on tourism, mining and agriculture, its telecommunications, energy, manufacturing, financial services and transport sectors are also attracting rising of investors attention.

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Uganda: New aviation office opened by EAC at Entebbe

Writes Leo Odera Omolo

As the East African Community (EAC) common market gains momentum, efforts are underway to enhance aviation security standards to boost the industry and trade in the region.

To this effect, the EAC Civil Aviation Safety and Security Oversight Agency (CASSOA) has established offices at the Entebbe International Airport to serve as a focal point for the five states in the regional trading bloc.

Kategaya (right) launches the regional aviation headquarters as Nasasira cheers David Ssempijja

CASSOA is a specialised agency that ensures the development of a safe and secure civil aviation industry in the region.

“Efforts geared towards meeting aviation safety and security will make our airports and airspace safer.

“This will attract more airline operators into the region, hence a booming regional aviation industry,” said the EAC affairs minister Eriya Kategya.

He was launching the regional headquarters at Entebbe last week. He said East Africa had a challenge of meeting the standards of the International Civil Aviation Organisation.

“As you are aware, our region’s airspace is at times regarded as insecure, especially by the western world,” he said. John Nasasira, the transport minister, and regional aviation chiefs attended the function.

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East Africa Comunity: Private sector elite are questioning the rational of free border crossing trades

Economic and Business News By Leo Odera Omolo

Experts say free trade can reduce cross border tariff structures by up to 80%

A GATHERING of Africa’s elite private sector has recommended that all the states across the EAC, SADC, and COMESA centralise issuance of certificates of origin so that they do not have to traverse all the states to get a license.

The private sector also implored governments across the continent to prioritise business ahead of politics to change the continent’s economic fortunes.

“It has been Africa’s history that we have been putting politics ahead of business for so long. Our enterprises must be competitive,” said Eyessus Zafu, president of the Ethiopian Chamber of Commerce and Sectoral Associations, at a top level summit comprising private sectors from the tripartite EAC, SADC, and COMESA at the Kampala Protea Hotel last week.

“We should never put private business in competition with state business; what else is there except fair competition?” asked Zafu.

If the East African Community (EAC), South African Development Cooperation (SADC) and Common Market for East and Southern Africa (COMESA) achieve a free trade zone by 2012 as expected, it will by any standard be one of the most powerful economic blocs with a combined Gross Domestic Product (GDP) of $625b.

Estimates show that exports among the 26 countries in the common market increased from $7b in 2000 to $27b in 2008, and imports grew from $9b in 2000 to $32b in 2008.

Experts from the International Trade Centre say a free trade zone can reduce cross-border tariff structures by up to 80%.

This would also galvanise Africa’s response to outrageous global economic patterns for which many times they are not responsible for but suffer the worst consequences- for instance the recent global economic meltdown.

The businessmen and women gathered in Kampala described the tripartite summit as an important milestone with important positions agreed upon.

Information available indicates that the summit agreed on harmonisation of trading arrangements among the three Regional Economic Communities (RECs), free movement of business persons and joint implementation of inter-regional infrastructure programmes as well as institutional arrangements on the basis of which the three RECs would foster cooperation.

The free trade dream was born in 2008 when the EAC, SADC, COMESA tripartite meeting was held in Kampala and the heads of state resolved that the three blocks that comprise some 530 million people across 26 states must have a free trade zone by 2012.

The dream is to ultimately attain an African Economic Community.
But the search for a free trade zone did not involve the private sector at the beginning. The Protea meeting convened by COMESA business council was, therefore, to involve the private sector.

Currently, COMESA has a customs union, EAC just opened up a common market, while the SADC has a free trade zone.

The private sector also emphasised strengthening Africa’s domestic investments base.

“As a matter of attitude, whenever we have the opportunity, we have to encourage competition in our domestic markets first then in our neighbours’ because then we shall have both the skill and muscle to compete,” said a private sector official

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UGANDA: 35 AFRICAN HEADS OF STATE IN ATTENDANCE AT THE OPENING OF AFRICAN UNION SUMMIT

Reports Leo Odera Omolo

THE African Union (AU) Summit opened yesterday with world leaders condemning the Somalia-based al-Shabaab terrorists.

African heads of state and leaders pose with Museveni (centre) for a picture at Munyonyo

According to the report carried by the semi-official newspaper, the NEWVISION, thirty-five heads of state and government are attending the summit at Munyonyo which is expected to end tomorrow. The leaders called for a united front to kick terrorists out of Africa.

In his address, President Yoweri Museveni urged the AU to “sweep the terrorists out of Africa.”

“Let them go back to Asia and the Middle East where they come from. I reject this new form of colonialism through terrorism.”

Museveni said many of the organisers of the July 11 twin bombings in Kampala, which killed 76 people had been arrested and their interrogation revealed “very good information.”

“In Somalia, they recently attacked the government and the AU forces. But they got the punishment they deserved. AU members should not accept this arrogance. Who are these people who dare attack the AU flag? Whose interest do they represent, where do their loyalties lie? These terrorists can be and will be resisted.

“As you know, I have a long experience in warfare. However, I have great contempt for the authors of terrorism who attack children and unarmed civilians. I am glad that the whole of Africa has condemned them. Let us shoot them out of Africa,” Museveni said.

Foreign affairs Permanent Secretary James Mugume said foreign delegations included four vice-presidents and three prime ministers. The summit is focusing on maternal, infant and child health and development.

Delegates from 49 African countries have been discussing various AU issues since July 18, including a session on peace and security and the private sector

Malawian President Dr. Bingu wa Mutharika, who is the AU chairman, said: “I condemn the attack on the innocent civilians in Kampala, in the strongest terms. That violence against civilians does not advance humanity but disrupts progress.

“Terror has no place in Africa and no place in humanity. Those involved should find other ways of addressing their differences rather than waste human life,” he said before calling for two minutes of silence in respect to the deceased.

African Union Commission chairman Jean Ping said the security situation in Somalia remained worrying.

He said the transitional government was trying to reach out to some of the fighting groups for peace talks.
Earlier, he said the strength of the peacekeeping troops in the war-torn Somalia was about to double when the African Union deploys another 6,000 soldiers.

Two battalions, one from Guinea and another from Djibouti and 2,000 more soldiers from the IGAD countries will soon be deployed. “Very quickly we are increasing from the 6,100 contributed by Burundi and Uganda. There are countries that are ready and are waiting for our green light. We shall go beyond the authorised strength of 8,000 troops,” he said.

Ping revealed that a military team from Guinea was being briefed in Addis Ababa, before it moves to Mogadishu to assess the conditions before the country deploys its troops.

Goodluck Jonathan, the President of Nigeria, also condemned the terrorist killings in Kampala two weeks ago
He noted that such acts of violence on innocent people cannot solve any problems but only create new ones. He regretted that while Africa was celebrating the successful hosting of the World Cup in Africa, Uganda was mourning victims of terror.

“Nigeria unreservedly condemns the bomb attacks and expresses solidarity with President Yoweri Museveni and my dear brothers and sisters in Uganda,” he said.

The Nigerian leader thanked African leaders for their words of empathy and personal visits following the death of former Nigerian president, Umaru Musa Yar’Adua. He described Yar’Adua as a champion of the rule of law, accountability and transparency.

Palestinian President Mahmoud Abbas extended his condolences over the attacks and thanked Uganda for supporting Somalia, which he said was suffering from the burden of terrorism expansion.

Mexican President Felipe Calderon and the Prime Minister of St. Vincent and the Granadines, Ralph Goncalves, said the terrorist attacks caused a lot of anguish in the world.

“It was with much pain and anger that we learnt about the murderous acts against the innocent people. Our gathering here is to tell the terrorists, ‘You can fight us, you can scare us but you can never win.’ We are with President Museveni on this,” said Goncalves, who spoke on behalf of the Caribbean leaders.

S.E.M. Moussa, the secretary general of the Arab League, said terrorism is intended to threaten people’s security.

“Our position on terrorism is one, rejection and fighting it.” He thanked the AU for prioritising stabilising Somalia and promised that the Arab League would work with the continental body to put an end to the Somali crisis.

He recommended that a ministerial committee comprising members from AU, Organisation of Islamic Conference, Arab League and UN be set up to tackle the instability, terrorism and piracy in Somalia.

The UN Deputy Secretary General, Asha Rose Migiro, said the Kampala bombings showed that no country is immune to terrorists.

She called for the implementation of the UN Counter-Terrorism Strategy – with a global response.

“The attacks also show that the Somali crisis has a direct impact on regional and global security. We must strengthen our resolve to do more in our search for stability in that country. That means supporting the transitional federal government there, both in its reconciliation efforts and in its fight against extremism,” Migiro advised.

She paid special tribute to the AU Mission in Somalia and to Uganda and Burundi for contributing troops to the war-ravaged country.

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Tanzania & Kenya: LAKE VICTORIA BASIN LAUNCHES UNIVERSITIES’ RESEARCH FUND FOR MARA RIVER BASIN

By Agwanda Powerman

The Lake Victoria Basin Commission (LVBC) today signed a Memorandum of Understanding with three Universities; Ardhi University (Tanzania, Egerton University (Kenya) and Maseno University (Kenya) to support critical studies in natural resources and landscape conservation in the Mara River Basin.

The ceremony which took place in Kisumu will allow collaboration between the Commission and the Universities on applied research on Biodiversity Conservation in the Mara River Basin and the Environmental Flows Assessments of the Mara River.

The research will also include wildlife habitat conservation ,conservation enterprise and capacity building and leadership with an initial amount of US dollars 60,000 with 20,000 going to each of the three Universities under partnership.

“This new collaboration is part of broader initiatives being implemented under the “Trans boundary Water for Biodiversity and Human Health in the Mara River Basin Project” supported by USAID /East Africa and implemented by the LVBC” the organizations’ Executive Secretary General Dr.Tom Okurut said.

He added that under the recently -concluded Biodiversity Strategy Action Plan (BSAP) for the Mara Basin ,the measures to be undertaken will target improving policy,legislation and institutions,economics,investments,applied research ,communication ,education and awareness -raising.

“The LVBC is an institution of the East Africa Community responsible for coordinating the sustainable development agenda for the Lake Victoria Basin,the Mara Basin is one of the basins of the Lake Victoria Basin and is essential for the survival of wildlife anchoring Kenyan and Tanzanian tourism” Okurut further said.

He added that the survival of the Eco system depends on the flow of the Mara River and the collaboration between the Commission and the Universities will play an essential role of supporting a long term capacity development for science based management system of the ecosystem.

Uganda: Kampala hotels booked to capacity a the AU delegates arrives for the summit in style

Reports Leo Odera Omolo In Kisumu City

ALL Kampala hotels are booked up, thanks to the African Union Summit which started yesterday. The boom is comparable to the Commonwealth Heads of State Government Meeting (CHOGM) held in 2007, according to a survey.

Some guests had to change hotels from the city outskirts for security reasons. Suicide bombers last Sunday killed at least 76 people watching the final match of the World Cup in two venues in Kampala.

Despite this, the Uganda Hotel Owners Association said the occupancy levels are very high.

“Most of the rooms are busy in the vicinity of Kampala and a few hotels in Entebbe and Jinja,” said Ismail Sekandi, the executive director of the association.

The 15th ordinary session of the assembly is expected to attract a big number of leaders from Africa and the Caribbeans. Some guests came from as far as Trinidad and Tobago.

Kutesa (centre) chatting with the African Union chairman, Jean Ping, and official Isaac Munlo at the conference in Munyonyo yesterday

Joyce Wangui, the Kampala Serena Hotel sales manager, said 70% of the bookings had gone to the summit, and the rest to corporate clients. “We are fully-booked for the next 10 days, Wangui said.

She said Serena has 152 rooms, 12 of them suites. Of these, 108 rooms cost $240 a night (about sh550,000) each.

The hotel could make about sh1b from all the rooms, meals and other services.
A staff member at the Kampala Sheraton Hotel said the hotel is also fully-booked. “We are sold out fully,” the source said.

During CHOGM, about 5,000 guests descended on Uganda. While the occupancy for the AU summit is slightly lower, it has kept the country’s quickly rising reputation as a conferencing destination alive.

Reports also indicate that during government budgeting processes for the AU summit, about 2,000 guests were expected.

A single average hotel room goes for $80 and an executive one goes for about $250 in a five-star hotel. Taking an average of $170 per room for a single day, hotels hosting about 1,000 guests could rake in about sh580m for just bed and breakfast.

There are about 50 hotels within Kampala and the neighbouring Entebbe and Jinja towns.

Sekandi disclosed that the Government had gone out of its way to provide state security for all the hotels that are hosting guests for the summit.

“We have been emphasising safety even before the events that happened recently. This will be tested by the end of this summit whether we have done it,” said Sekandi.

Sekandi also runs Rwizi Arch Hotel, Mbarara, which has also benefited from the summit.

But some hotels in Kampala missed out on the summit boom because of poor facilities.

“People became desperate but it is the product that you put in the market,” said

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East Africa: IGAD is considering sending 2000 fresh troops to Somalia to deal with the terrorists

Security News By Leo Odera Omolo In Kisumu City

MEMBER states of the Inter-Governmental Authority on Development {IGAD} are reportedly in the process of adopting a hard-line stance towards the Somali based al-Shabaab, which bombed the Ugandan capital Kampala on July 11, killing 7u6 people.

Top security chiefs from the member states this morning {Monday 20thjuly 2010} started a three days crucial security meeting in the Ethiopia capital, Addis Ababa. The meeting is to decide as to which countries will be contributing the troops.

Apart from increasing troops, members of the African Union Commission, which is in charge of the AMISOM has been under heavy pressure to change the mandate from peace-keeping to become peace enforcement, a move that would allow full scale engagement of the AMISOM troops.

After the two bombs exploded in a crowded public joint in Kampala and left 74 people lying dead and scores fatally injured, the Alqaeda backed al-Shabaab Islamist militia in Somalia claimed the responsibility. Two other victims succumbed to their injuries and later died at the Mulago Hospital where they were rushed for treatment, bringing the number of the toll to 76.

In response to the attacks, the IGAD member states which comprises of Uganda, Sudan, Eretria, Kenya, Djibouti, and Ethiopia agreed that 2000 extra peace-keepers should be dispatched immediately to Mogadishu in order to beef up the 6,100 AMISOM troops already on the ground. This will bring the total number of AU soldiers in the horn of Africa nation, which has remained ungovernable for decades to a total 8,100.

“This act of terrorism against innocent Ugandan citizens has only strengthen IGAD member countries resolve to deal with Somalia problem by increasing the number of troops to be stationed there,” IGAD’s Executive Secretary Mahboud Maalim in a telephone interview.

The additional troops will increase the number of IGAD member states soldiers serving under AMISOM to 8,100by the end of next month {August 2010}.

However, the proposed change of the AU peace keeping force to a reinforcement troops in Somalia faces some technical hitch. It requires that the change of the mandate of the AU Commission to seek permission of the UN Security Council, since the AU mission is under the UN and as such any move to have the AMISOM mandate change must get the UN permission.

I a recent interview with the region’s most influential weekly, the EASTAFRICAN, the Amisom’s overall Commander Maj-General Nathan Mugisha maintained that the AU peace keepers I Somalia have succeeded in securing key installations such as the Mogadishu Airport and the Seaport, which are now fully operational as normally as before, and that the force main mission is not to engage in military combat.

“Our job is to create an environment for negotiation and reconciliation. The solution to the Somali problem must be a political one and not military,” Said Gen Mugisha. However, after the attacks in Kampala, pressure to change the AU peace keeping forces mandate is likely to intensify in the near future.

Meanwhile information emerging from the Kenya capital, Nairobi revealed that East Africa’s Defense Chiefs met there last moth and recommended the UN’s ban Somalia’s immediate neighbors from sending peacekeeping troops to that country be lifted.

The UN Resolution 1725 does not allow Somalia’s neighbors like Ethiopia, Djibouti and Kenya to contribute peace keeping force to beef up the mission. Though for example Djibouti had requested to be allowed to send 450 soldiers to Amisom forces in January this year. It was forced to stop doing so by the UN.

In 2006,Ethiopia with the support of the United States of America, sent troops to Mogadishu to back up the interim government and drive out hardliner Islamists from power. It is this intervention which sparked off insurgency that gave birth to Al-Shabaab after the Ethiopian soldiers pulled out in 2009.

IGAD, which comprises Kenya, Djibouti, Eritrea, Somalia, Sudan and Uganda, is also reportedly planning to push for an increase of troops to Somalia to 20,000,by lobbying African Union members to provide the troops and foreign donors, the necessary funds. The regional body argues it is the only way to stabilize Somalia.

Reports says, some non-IGAD countries have offered to provide troops to AMISOM, but the only problem being availability of funds to sustain the extra troops in Somalia.

At the moment, our plan is to get additional troops comprising ethnic Somalia trained by neighboring countries, IGAD member states and East African Community members states” ,says the executive secretary.

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Uganda: Bombing of Kampala last week has sent shock waves and great panicking in East Africa

News Analysis by Leo Odera Omolo In Kisumu City

The terrorists bombing of the Ugandan capital, Kampala a week ago in which close to 76 people lost their lives has sent shock-waves and great panicking in the entire Eastern African region.

The incident occurred when the African Unity {AU} Summit of the African Heads of State and governments in only a week away. The Summit is scheduled to be held in Kampala on July 25, and as far as the security situation, many presidents and prime ministers of African governments expected attendance of the summit could be put into jeopardy

Many dignitaries, foreign ministers and top government officials could skip the summit on security ground, although a number of African diplomats in Nairobi were rather optimistic that the summit will go on as planned and dozens of presidents and prime minister would be in attendance as they do normally.

This year’s AU summit whose theme of “maternal and child healthcare is highly likely overshadowed by the events of last Sunday terror attack on football fans watching the World up final in a Kampala suburb of Lugogo’s restaurant.

The Al-Qaeda sponsored Al-Shabab Somali Islamist militia group has since claimed the responsibility for the deadly bomb attack. This has prompted several governments in the neighboring countries Kenya and Tanzania included to take stringent security precautions against any possible terrorists attacks.

This is because days after the al-Shabaab twin bombing attacks in Kampala claimed more than 76 lives, nationals of Western countries living and working in neighboring countries like Kenya and Tanzania have been asked to restrict their movements amid fear of similar attack in the region, especially in Kenya.

The expatriates in Kenya have been advised area frequented by Western nationals or maximize their time spent in such areas which include leading shopping malls, clubs, or popular coffee houses.

The largest concentration of foreigners and UN agencies make the Kenyan capital, Nairobi a new target for extremists organizations that have political or economic grievances with Western governments.

Frequent statements by the Kenya government regarding political support for the Transitional Federal Somali Government in Mogadishu {FTG} also put the country at the risk of similar attacks.

The areas which have been singled out as possible danger spots include the shopping malls, expatriate bars and clubs, most of these facilities are located in Westland suburbs of the Nairobi and also popular public joint and coffee houses in the City center frequented by foreigners.

The al-Shabaab terrorist had in May this year issued a stern warning to the governments of Uganda and Burundi, which are the main contributors of peace keeping troops in Somalia, known as AMISOM that it will strike deep in Kampala and Bujumbura and cause the two governments and their people to cry for a long time.

The Ugandan government, which has close to 4300 troops in Mogadishu responded by ordering the registration of all Somalis living in the country and the issuing of special identification cards to the refugees and those Somalis conducting business in all parts of Uganda. The Somali residents concurred with the government and appealed to their people to comply with the hew security arrangement initiated by the Ugandan government.

The belligerent Ugandan President Yoweri Museveni reacted angrily by warning the al-Shabaab militia in Somali of a dire consequences should they dare to attack any important public and economic installation in the country. Museveni said he would hunt down the terrorist in all their hideouts

The Ugandan and Burundian troops numbering a total of 6,300 men are mainly guarding the installation and important key building under the Transitional Federal Somali government, which is recognized by both AU and Un as the legitimate government of that country..

The FTG is also recognized by some Western countries led by the United States. And fears persist that the AY summit of the heads of state and government which is scheduled to be held in Kampala on July 25,2010 might flop due to unpredictable security situation in that country.

“in the face what happened last week, it would be inappropriate either to the terrorist even to us. Let us leave it at that. We have intelligence and we are using it and the perpetrators must know that no one will sit back and watch them cause mayhem at will.” Those were the words of Kenya’s Minister for Foreign Affairs Moses Wetangula.

Endsleooderaomolo@yahoo.com

EAC community plea for good road network for quicker economic growth

Economic and Business News by Leo Odera Omolo in Kisumu City.

POOR infrastructure may derail the immediate realization of the recently launched East African Common Market Protocol, according to the sentiments expressed by the Secretary General of the East African Community, Ambassador Juma V Mwapachu.

He said trade facilitation which accounts for 60 per cent of the costs of doing business in the region must be sorted out if the full benefits of the common market are be realized.

Mwapachu made these remarks while receiving a delegation from the Japan Bank for Investment Cooperation. He told the visiting Japanese delegation that the common market has specific trade and development dimension which must be exploited.

The current cumbersome procedures and inadequacies of infrastructure along the trade facilitation chain would have to be squarely addressed in order to unlock the region’s full development and growth potential.

Several studies have revealed the extent of the financial requirements of the rail, roads and energy needs of the region. But questions remain on where the region will get the requir5ed funding.

Experts believe that if the region overcame infrastructure challenges, East Africa’s GDP would raise beyond the current USD 75 billion.

Ambassador Mwapachu said globalization has made it necessary for African countries to pursue regional integration to maximize the economic of scale and prudent utilization of scarce resources.

With the coming online of the common market two weeks ago, East African Community has moved another step towards full integration and agricultural development and food security, regional industrialization, and harmonization of educational curricular, among other key project and programmes in order to realize a strong and truly regionally integrated economy and cohesive society.

The EAC has identified the East African Railways Master Plan and the East African Road Network to extend comprehensive network of modern rail, road, inland waterways and telecommunication systems that would effectively connect centers of production and market throughout the EAC region and the neighboring countries in particular Southern Sudan and Ethiopia and the Democratic Republic of Congo.

Meanwhile reports appearing in the local media insist the Kenyan Port of Mombasa is facing stiff competition from Dar Es Salaam port as a hub for imported refined fuel destined for the land locked countries of Rwanda, Burundi, Uganda and Burundi bringing in over 90 and 60 per cent of oil products respectively through Tanzania.

This is loosely translates that Kenya is fast losing business payment penalties {demurrage charges} to tankers owners due to delays in off-loading oil products in Mombasa and constr4aints in pipeline pumping capacity of refined fuel inland among other reasons are to blame for the shift.

According to Petroleum Institute of East Africa {PIEA}, there is need to review adequacy of handling facilities including jetties and storage facilities to ensure Kenya remains a competitive entry-point of fuel. The institute’s chairman David Ohana was quoted by the SUNDAY NATION as saying that the industry players and the government should come up with joint efforts in developing sufficient infrastructure to meet rising local and regional demand.

“Such an effort will ensure that Kenya remains the preferred entry hub for landlocked neighboring markets. Recently, we have witnessed a big shift to the Dar Es Salaam port.” He said.

Oil products, however, remains a critical driver for attainment of economic and social goals of Kenya’s Vision 2030 of industrialization with refined fuel contributing the highest percentage of primary energy demand.

It is being moderately estimated that Kenya losses USD 4.3 million {Kshs 3.4 billion} every year as demurrage charges paid by oil firms to tanker owners when ships fail to off-load fuel in good time with marketers passing the burden to consumers.

Demurrage is caused by lack of adequate {storage space at Mombasa and due to low pipeline pumping cycle. And while the construction of a parallel Nairobi-Eldoret fuel pipeline will raise flow rate to Western Kenya, demurrage calls for investment in new storage facilities in Mombasa and inland.

Kenya pipeline Company is normally forced to stop pumping due to slow uptake of fuel from Nairobi depots by marketers when the terminals are full. The company’s operations manager Phillip KIMELU said Nairobi’s congestion is attributable to Western Kenya pipeline system capacity constraints. He said this is being addressed by the building of a parallel line. Western Kenya being served by eight inch diameter pipeline from Nairobi to Burnt Forest where it narrows to six inch to Eldoret and six inch pipeline also branches at Sinendet to Kisumu,” he added.

A parallel Nairobi-Eldoret pipeline will pump 390 cubic meters of fuel per hour alongside existing line of 210 cubic meters. This will save marketers money since they incur extra costs transporting oil products by road from Mombasa.

According to to Metro Petroleum, Burundi and Rwanda give tax rates for the petroleum products passing through Tanzania, while Uganda’s shift to Dar Es Salaam is for reasons strategic to ensure continued supply.”Tax rates of imports are given to partly offset cost of road transport. Uganda shifted part of imports to void recurrence of disruption due to 2008 post-election violence in Kenya,”said metro’s manage Bill Rotich.

He further stated KPC/s Kisumu and Eldoret depots lack enough fuel for local and export market forcing landlocked countries to opt for road transport from Dar Es Salaam despite the distance.

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leooderaomolo@yahoo.com

East Africa Community: Not much changes visible in EAC trade pattern despite the arrival of the common market

Economic and Business News By Leo Odera Omolo In Kisumu City

The coming into effect of the East African Community Common Market Protocol on July 1st,2010 has made no significant change in the region’s trading pattern.

In fact, the common market protocol has been greeted with both applause and skepticism and both sides of the divide have some very valid points of argument.

The development of regional co-operation, however, is viewed as being in the best interests of all Eastern African people and their friends as well as the international partners.

Integration is also viewed by stakeholders as a key factor for the establishing of political stability, security and economic prosperity in the region.

A number of critical areas therefore need to be looked into quickly and carefully in order for the people of the region to reap maximum fruits of the co-operation. There are contentious issues such as trade, energy, communications technology, transport, security, justice, political system and governance.

Though regional cooperation, a business environment will be created that will provide for foreign and national direct investments creating of the much needed job opportunities and encourage individual initiatives and improve the living standards of the people, regional trade should therefore be treated as being particularly important in the region’s economic development and political stability.

Infrastructure development is of vital importance for developing the economies of East Africa for it is an initial and indispensable requirement for an increase in economic growth. Infrastructure must be perceived and conceived in a holistic manner. However, infrastructure development without the requisite reforms necessary to strengthen institutions that will provide sound development policies cannot provide economic growth by way of regional and cross-border integration.

Investors in the energy sector in the region too, must provide reforms to reduce cost of production and improve security of supply, while integrating the region into the common energy market. These are some of the bottlenecks which need to be ironed out as quickly as possible if at all genuine and meaningful regional integration is to be realized within the foreseeable future.

Another important area is the increased participation of the civil society organizations in the regional integration.

The quality of democratic system applied, political stability and regional socio-economic development. The involvement of civil societies into the regional integration and various reforms undertaken in the governance of respective countries will contribute to the quality of integration process as well as sustain public support for regional co-operation and integration.

It is indeed heartening that East African countries of Kenya, Uganda, Tanzania, Rwanda and Burundi have now realized that they have a responsibility towards each other, and that they have many challenges in common ,some of them are of cross-border nature.

These countries now see considerable benefits of the close regional cooperation, political understanding, economic and social prosperity. This new resolve to address issues of common relevance in a cooperative manner is reflected in concrete progress being made on the ground.

It is now up to their international trading partners in particular and the international community in general to show its political goodwill and provide these regional governments with the necessary logistics and financial assistance to enable them achieve their goals.

With the in5trnatinal nature of crime and terrorism, regional co-operation is instrumental in addressing the security challenges facing the region such as piracy against merchants ships in Indian Ocean ferrying commercial cargoes and goods to he region.C0mplex and urgent issues such as regional crime and corruption or integrated border management, and illegal migration can be effectively addressed only by a trans-border approach.

The EASTAFRICAN, a Kenyan weekly dedicated exclusively to the news and features coverage of EAC’s events said in its latest edition that a “concerted efforts and action here is indispensable, not just as an end in itself but also a signal to the rest of the wider region.”The rule of law is a key priority which needs to be addressed by the countries concerned.”

In areas of justice and home affairs the countries need to accelerate internal democratic reforms to enhance and strengthen regional co-operation to achieve results on the same level, “Screamed the EAST AFRICAN.

Observers and pundits maintains that political will and commitment by the countries of the region are key to promoting regional co-operation in its various forms, whether in the field of economic infrastructure or justice and home affairs. Other areas that require attention include public procurement and privatization, judiciary, financing of political systems and transparency in public administration and government.

Well drafted legislation and effective implementation are needed in areas such public public procurement, intellectual, property rights, financial control, audit and the fight against fraud.

Ends

leooderaomolo@yahoo.com

Kenya & Uganda: Trucks pile up at the border as impact of free common market not yet felt

Writes Leo idera Omolo In Busia Biorder Point

HUNDREDS of cargo trucks from Malaba and Busia border posts are stranded at Busitema in the eastern district of Tororo due to the slow weight verification exercise reintroduced by the works ministry on July 1.

The trucks, some from Mombasa port, Kenya and eastern Uganda, yesterday created a massive traffic jam stretching several kilometres long. The crisis caused fears that it could disrupt supplies of fuel and revenue collection.

Three long queues had formed by yesterday evening. One stretched from Busitema check-point to Busitema University. Another from Busia border to the checkpoint and a third from the check point towards Muwayo.

The works ministry, through the roads authority, UNRA, established a weigh-bridge check-point at Busitema on the Iganga-Bugiri-Busia highway. All the cargo vehicles are expected not to exceed 56 tonnes per truck.

However, because small bridges were being used, the clearance process hit a crisis with trucks blocking either side of the main routes to and from Busia and Malaba border posts.

Juma Mukasa, a taxi driver who operates on the Kampala-Malaba route, said by morning heavy trucks had blocked the entire road. He said the diversion route in nearby villages was impassable and vehicles got stuck in the mud.

The traffic Police restored order later in the day by instructing the drivers to make one queue on the side of the road. Some drivers blamed the crisis on the system being used by UNRA officials at the Busitema weigh-bridge. The New Vision learnt that it takes 45 minutes to weigh a truck.

A Uganda Revenue Authority official said unlike in the past, UNRA was using a smaller mobile weigh-bridge unsuited for heavy duty. The small weigh-bridges are meant for spot-checks. The big ones used previously are non-functional, sources said.
The truck drivers said Kenya uses big weigh-bridges, making the process faster.

Julius Ssemakula, a truck driver, who was transporting industrial materials from Mombasa to Kampala, said Kenyan authorities take only three minutes to clear a truck.

The drivers also complained that the delays posed a big risk to them. William Kosgei, a truck driver, said he was carrying sensitive and expensive cargo.
“This slow exercise has disrupted the cargo flow. There is no security. We are at risk of being attacked,” said Kosgei.

David Kipsiro, another heavy truck driver, said he reached Busitema at dawn yesterday yet his vehicle had not yet been checked by 6:00pm.

William Kakaire, another driver, feared a fire outbreak, given the many fuel tankers stuck in the long queues.

UNRA officials declined to comment on the situation. Sources, however, said the officials had seized 28 cargo trucks found exceeding the maximum load of 56 tonnes per truck. Whoever breaches the rule is liable to a fine of sh6m or two years in jail.

Peter Kaujju, a URA official, said the tax authority was concerned about the problem at the weigh-bridge. He said the delays could affect revenue collection.
“We have received reports that some Kenyan drivers have refused to cross into Uganda until the long queues are cleared,” he said.

The slow fuel supply across Uganda was also starting to push prices up, he added.

“This is an inconvenience. We are not able to clear the trucks as and when they come,” Kaujju explained.
He said a big number of trucks in the queues were in transit to Rwanda and the DR Congo. He was happy, however, that no problems had been reported at other stations.

Works minister John Nasasira last October suspended the operations of six weigh-bridges over corruption after an investigation unearthed gross irregularities in their management. The service only resumed last week.

The weigh-bridges are based in Sironko, Busia, Busitema, Lukaya, Mbarara and Mubende. Another six mobile ones are used across the country.

Ends

EAC: OVERVIEW OF THE EAC COMMON MARKET PROTOCOL WHICH COME INTO FORCE TODAY ON JULY 1ST 2010.

Report By Leo Odera Omolo In Kisumu City

: The Protocol on the Establishment of the East African Community Common Market of the EAC Partner States, Tanzania, Burundi, Kenya, Rwanda and Uganda, is a 65-page document containing 56 Articles on the details of the establishment of the Common Market, its principles and operations.

The Annexes, six (6) in all at the moment, are part and parcel of the Protocol and run into several hundred pages more. The Annexes are crucial and are mainly the Schedules elaborating the terms, conditions and time frames of the progressive implementation of the Common Market.

Introduction and general

The Protocol for the Establishment of the EAC Common Market was signed in Arusha, Tanzania, on 20th November 2009 by H.E. Jakaya Mrisho Kikwete, President of the United Republic of Tanzania, H.E. Pierre Nkurunziza, President of the Republic of Burundi, H.E. Mwai Kibaki, President of the Republic of Kenya , H.E. Paul Kagame, President of the Republic of Rwanda and H.E. Yoweri Kaguta Museveni, President of the Republic of Uganda.

The Protocol was rapidly ratified by all the five EAC Partner States and the Instruments of Ratification deposited with the Secretary General of the East African Community, Amb. Juma Mwapachu, in time for the launching tomorrow, 1st July 2010, of the operations of the Common Market.

The Protocol for the Establishment of the EAC Common Market is the culmination of 4 years of highly inclusive negotiations launched in 2006. Due to the intervening negotiations of the admission of Rwanda and Burundi into the Community, and other pre-occupations, the negotiations of the Common Market proceeded in earnest beginning 2008. The negotiations underlined the importance the EAC Partner States attach to regional integration as a means to their faster economic growth and development. The negotiations of the Common market Protocol were conducted under an atmosphere of a positive orientation and the give and take attitude that prevailed throughout the process. There was a commonly shared sense of need to realize Common Market at a time when the EAC integration process has been intensifying.

Milestone in the EAC integration process

The Common Market is however not a new phenomenon for East Africa. The East African region operated a Common Market under the former East African Community (1967-1977) which was very successful and collapsed only on account of misunderstandings that arose among the Member States but which should be avoided this time round to ensure that the new Common Market is a better, stronger and sustainable process that will meet the challenges of a new complex and fast evolving world economic and social order.

The Protocol is a statement of intention, strong, solemn intention, by the Partner States to build a solid regional economic bloc that will be buttressed by the Customs Union arrangement already in place since 2005, the Monetary Union which the Partner States intend to put in place in 2012 and thereafter Political Federation of the East African States. As the Secretary General of the East African Community has stated, “the launching of the Common Market is a milestone that epitomizes strong political will and firm commitment by all EAC stakeholders to deepening and widening integration”.

The Partner States recognize that that they have much to gain through co-operation among them in the enlarged and integrated EAC market. EAC today has a population of 130 million with a combined Gross Domestic Product (GDP) of $ 70 billion. In addition, the EAC Partner States are endowed with abundant natural resources which they are aware they can maximize on prudently and effectively through joint development than through the pursuit of separate development. The Common Market is considered a critical stage in the integration process, the essence and centrepiece of the Community itself. Indeed, with the launch on 1st July 2010, the East African Community is now strictly speaking the East African Common Market. The Customs Union, already realized and the Monetary Union and Political Federation that are being pursued as well as other programmes in the development of infrastructure and other productive and social sectors will only serve to reinforce the East African Common Market.

Preamble of the EAC Common Market Protocol

The Protocol for the Establishment of the EAC Common Market declares in the Preamble that the EAC Partner States Tanzania, Burundi, Kenya, Rwanda and Uganda, having established a Customs Union (in 2005), now intend to establish a Common Market with the objective of accelerating economic growth and development. This will be pursued in the context of widening and deepening cooperation among the Partner States in the economic and social fields. Under the Common Market the Partner States will realize free movement of goods, persons, labour, services and capital; and the rights of establishment and residence. The Partner States also reaffirm the importance of the development of the social dimensions in the Community and desire to ensure economic and social development in promoting employment and improving the standards of living and working conditions of the people of East Africa.

Objectives of the Common Market

The objectives of the Common Market are set out in Article 4 of the Protocol. These are to accelerate economic growth and development of the Partner States through the free movement of goods, persons and labour, the rights of establishment and residence and the free movement of services and capital. The Partner States will also strengthen, coordinate and regulate the economic and trade relations among them in order to promote accelerated, harmonious and balanced development within the Community; expand and integrate economic activities and realize equitable distribution of the benefits among the Partner States; promote common understanding and cooperation among the nationals of the Partner States for their economic and social development; and enhance research and technological advancement to accelerate economic and social development.

The Freedoms and Rights

The Protocol for the Establishment of the Common Market provides basic freedoms and rights to be exercised by East African citizens within the territory of the Common Market Area. The EAC Common Market Protocol enumerates these freedoms and rights as free movement of goods; free movement of persons; free movement of workers; right of establishment; right of residence; free movement of services; and free movement of capital. The Exercise of these freedoms and rights shall be progressive over a course of time beginning 1st July 2010 when the Common Market Protocol becomes operational. The progressive implementation of the Common Market will be defined in the relevant Schedules which have been provided as Annexes to the Protocol and are integral part of the Protocol that will be managed in accordance with the relevant laws of the Community, including domestication of the laws by the EAC Partner States.

Scope of Co-operation

The scope of co-operation under the Common Market is wide as provided in Article 5 of the Protocol to apply to any activity undertaken in cooperation by the Partner States to achieve the free movement of goods, persons, labour, services and capital and to ensure the enjoyment of the rights of establishment and residence of their nationals within the Community. The Partner States agree to eliminate tariff, non-tariff and technical barriers to trade; harmonize and mutually recognize standards and implement a common trade policy for the Community; and ease cross-border movement of persons and adopt an integrated border management system.

The Partner States also undertake to remove restrictions on movement of labour. To this extent, they will harmonize their labour policies, programs, legislation, social services and provide for social security benefits as well as establish common standards and measures for association of workers and employers. Not necessarily immediately, but the Partner States will work towards establishment of employment promotion centres and eventually adopt a common employment policy. They will also remove restrictions on the right of establishment and residence of nationals of other Partner States in their territory in accordance with the provisions of the Protocol. Under this strategy they will also remove all restrictions to movement of services and service suppliers and harmonize standards to ensure acceptability of the services traded. The Partner States also commit under the Protocol to eliminate restrictions on free movement of capital as well as ensure convertibility of currencies and, at any rate, promote investments in capital markets (stock exchange) , eventually leading to an integrated financial system for the East African region.

The Partner States undertake, among others, to ensure protection of cross border investments; co-ordinate and harmonize their economic, monetary and financial policies; ensure fair competition and promote consumer welfare; co-ordinate their trade relations to govern international trade and trade relations between the Community and third parties. They will also co-ordinate and harmonize their transport policies and develop their transport infrastructure modes; co-ordinate and harmonise their social policies; integrate environmental and natural resources management principles in the activities relating to the Common Market. Further, the Partner States undertake to ensure the availability of relevant, timely and reliable statistical data for purposes of the Common Market; promote research and technological development within the Community; co-operate in the promotion and protection of intellectual property rights; promote industrial development for the attainment of sustainable growth and development in the Community; and to develop and promote agriculture and ensure food security in the Community.

Free Movement of Goods

The free movement of goods between the Partner States as provided in Article 6 shall be governed by the Customs Law of the Community as specified in Article 39 of the Protocol on the Establishment of the East African Community Customs Union. Also providing legal basis of the operations of the Common Market are the East African Community Protocol on Standardisation, Quality Assurance, Metrology and Testing; the East African Community Standardisation, Quality Assurance, Metrology and Testing Act, 2006 which have been enacted and are in operation. The provisions of the Common Market Protocol also permit the incorporation of the protocols that may be concluded in the areas of cooperation on sanitary and phyto-sanitary and technical barriers to trade; and, as in the inimitable lingo of the drafters of the Protocol, “any other instruments relevant to the free movement of goods”.

Free Movement of Persons

Under Protocol, Article 7, the Partner States guarantee the free movement within their territories of persons who are citizens of the other Partner States. The Partner States undertake to ensure non-discrimination of the citizens of the other Partner States based on their nationalities. Hence, the entry of citizens of an East African Partner State into the territory of another Partner State shall be exercised without a visa requirement. With such entry, the citizens of East Africa will enjoy free movement of persons and will be allowed to stay in the territory and to exit (at will) without restrictions.

To facilitate such entries and exits, Partner States undertake on reciprocal basis to keep opened and manned their border posts for 24 hours, that is on 24/7 basis. The Partner States shall also, (but only) in accordance with their national laws, guarantee the protection of the citizens of the other Partner States while in their territories. Hence, the free movement of persons shall not exempt from prosecution or extradition, a national of a Partner State who commits a crime in another Partner State. All in all, the free movement of persons shall be subject to limitations imposed by the host Partner State on grounds of public policy, public security or public health and subject to necessary notifications between the concerned Partner States. The movement of refugees within the Community shall be governed by the relevant international conventions.

Standard Identification and Travel Documents

East African citizens’ identification and standard travel documents as provided under Articles 8 and 9 grant that the Partner States shall establish a common standard system of issuing national identification documents to their nationals which shall be the basis for identifying the citizens of the Partner States within the Community. A citizen of a Partner State who wishes to travel to another Partner State shall use a valid common standard travel document. The Partner States which have agreed to use machine – readable and electronic national identity cards as travel documents may ( immediately or continue to) do so; while progress is made towards eventual convergence to a common standard identity and travel document for East African citizens.

Free Movement of Workers

Under Article 10, the Protocol guarantees the free movement of workers, who are citizens of the other Partner States, within their territories. The Protocol provides that discrimination of the workers of one Partner State or another based on their nationalities, in relation to employment, remuneration and other conditions of work and employment is not permitted. The Free Movement of Workers entitles a worker to: apply for employment and accept offers of employment actually made; move freely within the territories of the Partner States for the purpose of employment; conclude contracts and take up employment in accordance with the contracts, national laws and administrative actions, without any discrimination; stay in the territory of a Partner State for the purpose of employment in accordance with the national laws and administrative procedures governing the employment of workers of that Partner State; enjoy the freedom of association and collective bargaining for better working conditions in accordance with the national laws of the host Partner State; and enjoy the rights and benefits of social security as accorded to the workers of the host Partner State.

Further, such a worker shall have the right to be accompanied by a spouse and a child. A spouse who accompanies the worker shall be entitled to be employed as a worker or to engage in any economic activity as a self employed person in the territory of that Partner State. A child who accompanies the worker shall be entitled to be employed as a worker or to engage in any economic activity as a self employed person in the territory of that Partner State subject to the national laws of that Partner State. The freedom is also extended to dependents of the worker. Indeed the Protocol accommodates beyond child and dependent qualifications by providing that the Partner States shall facilitate a citizen of another Partner State who seeks employment in the territory of that Partner State to receive the same assistance as would be accorded to a citizen of that Partner State who seeks employment. To this extent, the Partner States shall, “within the framework of a joint programme, encourage the exchange of young workers amongst the Partner States”.

Also related, under Article 11, the Protocol provides that in ensuring free movement of labour, the Partner States undertake to: mutually recognise the academic and professional qualifications granted, experience obtained, requirements met, licences or certifications granted, in other Partner States; and harmonize their curricula, examinations, standards, certification and accreditation of educational and training institutions; and Article 12 they will harmonize their labour policies, national laws and programmes to facilitate the free movement of labour within the Community. To this extent, they harmonize their national social security policies, laws and systems to provide for social security for self-employed persons who are citizens of other Partner States.

Most significantly, however, the Protocol emphasizes that the provision on free movement of labour and services shall not apply to employment in the public service unless the national laws and regulations of a host Partner State so permit. Also, the free movement of workers shall be subject to limitations imposed by the host Partner State on grounds of public policy, public security or public health.

Right of Establishment

The Right of Establishment is guaranteed under Article 13 of the Protocol where it is provided that nationals of the other Partner States, will in exercise of right of establishment without discrimination on the basis of their nationalities be entitled to take up and pursue economic activities as a self employed person. Such nationals are also permitted to set up and manage economic undertakings, in the territory of another Partner State; and within the provisions that apply to spouse, child and dependent to join a social security scheme of that Partner State in accordance with the national laws of that Partner State. These rights shall also apply as they generally relate to companies and firms.

The Partner States shall ensure that all restrictions on the right of establishment based on the nationality of companies, firms and self employed persons of the Partner States are removed, and shall not introduce any new restrictions on the right of establishment in their territories, save as otherwise provided in this Protocol. Companies and firms established in accordance with the national laws of a Partner State and having their registered office, central administration or principal place of business and which undertake substantial economic activities in the Partner State shall, for purposes of establishment, be accorded non discriminatory treatment in other Partner States. The right of establishment shall be subject to limitations imposed by the host Partner State on grounds of public policy, public security or public health.

However, it is emphasized in the Protocol that the provisions on right of establishment shall not prejudice the application of national laws and administrative procedures and practices providing for special treatment for third parties accorded by individual Partner States on grounds of public policy, public security or public health. The Partner States shall remove the administrative procedures and practices, resulting from national laws or from agreements previously concluded between the Partner States, that form an obstacle to the right of establishment; and progressively remove any administrative procedures and practices resulting from national laws that restrict the right of establishment, in respect of the conditions for: setting up agencies, branches or subsidiaries of companies or firms in their territories; and the entry of personnel of the companies or firms registered in another Partner State into managerial or supervisory positions in agencies, branches or subsidiaries in that Partner State;

Right of Residence

Under Article 14, the Partner States guarantee the right of residence to the citizens of the other Partner States who have been admitted in their territories in accordance with the provisions of the Protocol. Hence, the Partner States shall issue residence permits to citizens of other Partner States who qualify in accordance with the provisions of the Protocol, with proviso that the right of residence shall be subject to limitations imposed by the host Partner State on grounds of public policy, public security or public health. Also, matters relating to permanent residence shall be governed by the national policies and laws of the Partner States. On the contentious issue of access to and use of land premises, the Protocol provides, under Article 15 that access to and use of land and premises shall be governed by the national policies and laws of the Partner States.

Free Movement of Services

Under the Protocol, Article 16, the Partner States guarantee the free movement of services supplied by nationals of Partner States and the free movement of service suppliers who are nationals of the Partner States within the Community. The Partner States undertake to take such measures to ensure the observance of the measures by local governments and local authorities and non governmental bodies within the Partner States. The measures include any laws and administrative actions taken by: national governments, local governments or local authorities; and non-governmental bodies in the exercise of powers delegated by national governments, local governments or local authorities.

The Partner States shall progressively remove existing restrictions and shall not introduce any new restrictions on the provision of services in the Partner States, by nationals of other Partner States except as otherwise provided in the Protocol. Without prejudice to any other provisions of the Protocol, a person providing a service may, in order to provide the service, temporarily engage in activities related to the service in the Partner State, where the service is to be supplied, under the same conditions as are applicable to the nationals of the Partner State.

The Protocol clarifies that services includes services in any sector except services supplied in the exercise of governmental authority which are not provided on a commercial basis or in competition with one or more service suppliers; and services normally provided for remuneration, in so far as they are not governed by the provisions relating to free movement of goods, capital and persons which will be accorded national treatment. Indeed, each Partner State shall upon the coming into force of this Protocol, accord unconditionally, to services and service suppliers of the other Partner States, treatment no less favourable than that it accords to like services and service suppliers of other Partner States or any third party or a customs territory (National Treatment and Most Favoured National Treatment).

There will, however, be general exception to trade in services and according to Article 21, subject to the requirement that measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between Partner States where like conditions prevail, or a disguised restriction on trade in services. Nothing in the Protocol will be construed to prevent the adoption or enforcement by any Partner State of measures: necessary to protect public morals or to maintain public order; necessary to protect human, animal or plant life or health; necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Part including those relating to: the prevention of deceptive and fraudulent practices or which deal with the effects of a default on services contracts; the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts; and safety.

There will also be Security Exceptions on Trade in Services according to Article 22 such that trade in services shall not require any Partner State to furnish any information, the disclosure of which it considers contrary to its essential security interests; and to prevent any Partner State from taking any action which it considers necessary for the protection of its essential security interests.

On the whole, the implementation of Article 16 of the Protocol granting Free Movement of Services shall be progressive and in accordance with the Schedule on the Progressive Liberalisation of Services, specified in Annex V to the Protocol. The Partner States, undertake to make additional commitments on the elimination of restrictions on the service sectors and sub sectors that are not specified in Annex V of this Protocol, after entry into force of the Protocol.

Free Movement of Capital

The Partner States in accordance with Article 24 will : remove restrictions between the Partner States, on the movement of capital belonging to persons resident in the Community; remove any discrimination based on the nationality or on the place of residence of the persons or on the place where the capital is invested; remove any existing restrictions and shall not introduce any new restrictions on the movement of capital and payments connected with such movement and on current payments and transfers, or apply more restrictive regulations. The Partner States will also remove restrictions relating to current payments connected with the movement of goods, persons, services or capital between Partner States in accordance with the provisions of this Protocol. There will be general exceptions and restrictions relating to free movement of capital upon justified reasons related to: prudential supervision; public policy considerations; money laundering; and financial sanctions agreed to by the Partner States. Also, where the movement of capital leads to disturbances in the functioning of the financial markets in a Partner State, the Partner State concerned may take safeguard measures subject to the conditions indicated in the Protocol.

These will occur in cases, e.g. where a competent authority of a Partner State makes an intervention in the foreign exchange market, which seriously distorts the conditions of competition, the other Partner States may take, for a strictly limited period, the necessary measures in order to counter the consequences of the intervention; or a Partner State may take safeguard measures, where the Partner State is in difficulties or is seriously threatened with difficulties, as regards its balance of payments. Under Article 27, conditions are laid out for the application of the Safeguard Measures. Under Article 28, Capital and Related Payments and Transfers are permitted including direct investment; equity and portfolio investments; bank and credit transactions; payment of interest on loans and amortisation; dividends and other income on investments; repatriation of proceeds from the sale of assets; and other transfers and payments relating to investment flows.

Protection of Cross-Border Investments

The Partner States under Article 29 undertake to ensure: protection and security of cross border investments of investors of other Partner States; non- discrimination of the investors of the other Partner States, by according, to these investors treatment no less favourable than that accorded in like circumstances to the nationals of that Partner State or to third parties. In case of expropriation, any measures taken will be for a public purpose, non-discriminatory, and in accordance with due process of law, accompanied by prompt payment of reasonable and effective compensation. The Protocol affirms that the Partner States shall within two years after coming into force of the Protocol take measures to secure the protection of cross border investments within the Community. It is not clear how this provision will be exercisable by the investors in the period intervening before the Partner States have taken the required measures but, like any other lacunas that may arise, these are expected to be resolved in the process of implementation of the Protocol within the prevailing spirit of good faith to make the Common Market work and deliver.

Economic, Monetary and Fiscal Policy Co-ordination

Under Article 30, the Protocol reaffirms the continuation of Economic and Monetary Co-ordination which the EAC has pursued since its inception. The Protocol declares that co-operation in economic and monetary policy is desirable for the proper functioning of the Common Market, provides that the Partner States shall co-ordinate and harmonize their economic and monetary policies to ensure macroeconomic stability, sustainable economic growth and balanced development.

Related to this area of Economic and Monetary Co-ordination which also includes Fiscal Policy interventions and co-ordination, the Protocol under Article 31 provides that the Partner States shall co-ordinate and harmonize their financial sector policies and regulatory frameworks to ensure the efficiency and stability of their financial systems as well as the smooth operations of the payment systems; ensure and maintain convertibility of their national currencies and promote the use of national currencies in the settlement of payments for all transactions within the Community. Article 32 provides that the Partner States shall progressively harmonize their tax policies and laws to remove tax distortions in order to facilitate the free movement of goods, services and capital and to promote investment within the Community.

Fair Competition, Prohibited Business Practices and Consumer Protection

Under Article 33, the Protocol, probably with the issues that sparked disputes under the Common Marker of the former East African Community which collapsed in 1977 in mind , addresses the issue of prohibition of any practices that (may) adversely affect free trade ( and Common Market operations). Specifically the Protocol prohibits all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Partner States and which have as their objective or effect the prevention, restriction or distortion of competition within the Community; concentrations which create or strengthen a dominant position and as a result of which effective competition would be significantly impeded within the Community or in a substantial part of the Community; and any abuse by one or more undertakings of a dominant position within the Community or in a substantial part of the Community.

However, the Protocol leaves room for manoeuvre of business competition nature by encouraging, or at any rate permitting competitive business practices which improve production or distribution of goods, promotes technical or economic development or which has the effect of promoting consumer welfare and does not impose restrictions inconsistent with the attainment of the objectives of the Common Market or has the effect of eliminating competition in respect of a substantial part of a product. Also related, under Article 34, the Protocol prohibits the Partner States from granting subsidy through resources in any form, which distorts or threatens to distort effective competition by favouring an undertaking, in so far as it affects trade between the Partner States, but providing also that this probation shall not apply where a subsidy granted is authorised by the Treaty or by Acts or policies of the Community or decisions of the Council of Ministers.

Indeed, under Article 35, the Protocol roots for fair competition by providing that the Partner States shall not discriminate against suppliers, products or services originating from other Partner States, for purposes of achieving the benefits of free competition in the field of public procurement; under Article 36, providing that the Partner States shall promote the interests of the consumers in the Community by appropriate measures that ensure the protection of life, health and safety of consumers; and encourage fair and effective competition in order to provide consumers with greater choice among goods and services at the lowest cost.

Co-ordination of Trade Relations

Under Article 37, the Protocol reaffirms the continuation and intensification of collaboration and co-ordination of trade relations which the EAC has pursued since its inception. The Protocol declares that co-ordination of trade relations is desirable for promotion of international trade and trade relations between the Community and third parties; and provides that the Partner States shall adopt common principles in particular in relation to harmonization of their investments incentives and co-ordination of their (joint) export and investments promotion. To this extent, the Council of Ministers shall establish a mechanism for the co-ordination of trade relations with third parties and shall: adopt common negotiating positions in the development of mutually beneficial trade agreements with third parties; and promote participation and joint representation in international trade negotiations.

Co-ordination of Transport Policies

Under Article 38, the Protocol reaffirms the continuation and intensification of collaboration and co-ordination in the Transport sector. The Protocol declares that the co-ordination of transport policies is desirable for the development and consolidation of the Common Market. To this extent, the Partner States shall evolve coordinated and harmonized transport policies to provide for adequate, reliable, safe and internationally competitive transport infrastructure modes and services. These will include logistics and transport by road, rail, inland waterways, maritime, pipeline and air and facilities such as ports, airports and inland dry ports. The Protocol provides further that the Council of Ministers shall within three years upon entry into force of the Protocol, make regulations applicable to: railway transport; maritime transport and port operations; pipeline transport; air transport; non – motorized transport; and multimodal transport and logistics.

Harmonization of Social Policies

Under Article 39, the Protocol provides that the Partner States undertake to coordinate and harmonise their social policies to promote and protect decent work and improve the living conditions of the citizens of the Partner States for the development of the Common Market. To this extent the Partner States shall coordinate and harmonise their social policies relating to: good governance, the rule of law and social justice; promotion and protection of human and peoples’ rights; promotion of equal opportunities and gender equality; promotion and protection of the rights of marginalised and vulnerable groups; promotion of African moral values, social values and ethics; and promotion of unity and cohesion among the people in the Community.

They will undertake programmes to: promote employment creation; strengthen labour laws and improve working conditions; eliminate compulsory and forced labour; promote occupational safety and health at the work places; abolish child labour in particular the worst forms of child labour; promote formal education to advance social development; promote vocational and technical training; expand and improve social protection; promote social dialogue between the social partners and other stakeholders; promote the right of persons with disabilities; promote sports; prevent and manage HIV and AIDS, malaria and tuberculosis; prevent and manage the outbreak of epidemics and other diseases in order to improve the general hygiene and health of the people; prevent social vices such as alcoholism, drug abuse or substance abuse and perverse behaviour; eliminate human smuggling and trafficking; and eliminate ignorance, diseases and poverty; promote, preserve and mainstream cultural activities and heritage in development initiatives; and adopt measures and programmes aimed at promoting the welfare of the vulnerable groups.

Environmental Management

Under Article 40, the Partner States undertake to ensure sound environmental and natural resources management principles for the proper functioning of the Common Market, through prevention of activities that are detrimental to the environment. The Partner States shall manage the environment in accordance with: the East African Community Protocol on Environment and Natural Resources Management; the East African Community Protocol for Sustainable Development of Lake Victoria Basin; the Lake Victoria Transport Act, 2008; he Protocol on the Establishment of the East African Community Customs Union ; the East African Community Customs Management Act, 2004; the relevant provisions of this Protocol; and any other relevant laws of the Community. The Partner States shall respect the principles of international environmental law and honour their commitments in respect of international agreements which relate to environmental management; and also develop common policies in responding to emerging issues on the environment.

Cooperation in Statistics

Under Article 41, the Protocol provides that the Partner States shall cooperate to ensure the availability of relevant, timely and reliable statistical data for: describing, monitoring and evaluating all aspects of the Common Market; and sound decision making and effective service delivery in the Common Market. To this extent the Partner States undertake to develop and adopt harmonized statistical methods, concepts, definitions and classifications for organizing statistical work while duly observing internationally accepted best practices. The Partner States shall collect, compile, store and disseminate relevant, reliable, timely, consistent and comparable statistical information.

Research, Technological Development and Protection of Intellectual Property Rights

Under Article 42, the Partner States undertake to promote research and technological development through market-led research, technological development and the adaptation of technologies in the Community, to support the sustainable production of goods and services and enhance international competitiveness; and undertake measures , including encourage researchers and participation of the private sector and international organizations in the promotion of research , dissemination and development; promotion or research, science and technology institutions and the East African Science and Technology Commission and other institutions on research, science and technology. Intellectual property rights will be protected, including development, protection and commercialising indigenous knowledge.

The Community will also promote and facilitate technology transfer, acquisition and dissemination in order to achieve increased production and productivity and, on the whole, establish and develop a technology innovation system for the productive sector of the economy of the Community. The Partner States also undertake to establish a Research and Technological Development Fund for purposes of implementing this provision of the Protocol. Also related, Article 43 provides for cooperation in the field of intellectual property rights in the promotion and protection of creativity and innovation for economic, technological, social and cultural development in the Community; and enhancement of the protection of intellectual property rights in a variety of fields.

Co-operation in Industrial Development

Under Article 44, the Partner States undertake to cooperate in the area of industrial development in the activities related to the production of goods and services in the Common Market, for the attainment of sustainable growth and development in the Community. To this extent, the Partner States shall adopt common principles and implement strategies , among others, to: promote linkages among industries and other economic sectors within the Community; promote value addition and product diversification to improve resource utilization; promote industrial research and development, transfer, acquisitions, adaptation and development of modern technology; promote sustainable and balanced industrialisation in the Community to cater for the least industrialized Partner States; promote industrial productivity and competitiveness of industries at national, Community and international levels; and on the whole the promotion of an East African Industrial Development Strategy with involvement of regional Public-Private Partnership and Civil Society dialogue and contribution.

Co-operation in Agriculture and Food Security

Under Article 45, the Partner States undertake to: develop and promote Agriculture with regard to crops, livestock, fish, forestry and their products; and ensure food security in the Community through access to quality and sufficient food. To this extent, the Partner States undertake to promote agriculture and ensure food security in the Common Market, hence increase agricultural production and productivity and achieve food and nutrition security; promote investments in agriculture and food security; develop effective agricultural markets and marketing systems in the Community; and promote agro processing and value addition to agricultural products; cooperate in agricultural research and development; and, in particular, establishing an East African Agricultural Development Fund for this purpose.

General provisions

Under Articles 46 – 56, the Protocol enshrines general provisions that apply to general principles and crosscutting issues in the implementation of the Protocol, including Institutional framework. Hence, Article 46 provides that the Council of Ministers may establish and confer powers and authority upon such institutions as it may deem necessary to administer the Common Market; Article 47 on Approximation and Harmonisation of Policies, Laws and Systems provides that the Partner States undertake to approximate their national laws and to harmonize their policies and systems, for purposes of implementing the Protocol; and Article 48 on Safeguard Measures, provides , among others, that the Partner States shall apply safeguard measures in the event of serious injury or of a threat of serious injury occurring to the economy of a Partner State, following the application of the relevant provisions of the Protocol.

Article 49 on Measures to Address Imbalances provides that the Council of Ministers shall approve measures to address imbalances that may arise from the implementation of the Protocol; and Article 50 on Monitoring and Evaluation of Implementation of the Common Market, provides that the Council of Ministers shall establish a framework for monitoring and evaluating the implementation of the Protocol and ensuring, among others, that the operations of the Common Market conform to the intents and purpose of the Protocol.

The others are the Article 51 on Regulations, Directives and Decisions, providing that the Council shall from time to time make regulations, issue directives and make decisions as may be necessary for the effective implementation of the provisions of this Protocol; Article 52 on the Annexes to the Protocol providing that the Partner States shall conclude such Annexes to the Protocol as shall be deemed necessary and that such Annexes shall form an integral part of the Protocol; Article 53 on Amendment of the Protocol, providing that with the approval of the Summit, review the Annexes to the Protocol and make such modifications as it deems necessary; and Article 54 on Settlement of Disputes, providing that disputes between the Partner States or any person whose rights and liberties as recognised by the Protocol or infringed arising from the interpretation or application of the Protocol shall be settled in accordance with the provisions of the East African Community

Treaty; and that the competent judicial, administrative or legislative authority or any other competent authority, shall rule on the rights of the person who is seeking redress.

Article 55 on Entry into Force of the Protocol , provides that the Protocol shall enter into force upon ratification and deposit of instruments of ratification with the Secretary General by all the Partner States; and finally, Article 56 on Depository and Registration, provides that the Protocol and all instruments of ratification shall be deposited with the Secretary General of the EAC who shall transmit certified true copies of the Protocol and instruments of ratification to all the Partner States; and register the Protocol with the African Union, the United Nations, the World Trade Organisation and such other organisations as the Council of Ministers may determine.

ENDS

leooderaomolo@yahoo.com

Tanzania: Nation scores the top marks as a peaceful country in the EAC region

Writes leo Odera Omolo In Kisumu City

The United Republic of Tanzania has been ranked the most peaceful member states of the East African Community {EAC} in a recently published survey.

The survey, the Global Peace Index 2010, ranks the East African country ahead of EAC, peers with a peace index of 1, 832.However,in overall ranking ,Tanzania is at position 55 out of 149 states surveyed.

The study was done by the Australian-based Institute for Economic and Peace focusing on indicators such as internal peace relations with neighboring countries and military spending.

Second in the region is Rwanda with a peace index of 2,012 and at position 75 overall. The higher index score, the least peaceful a nation is.

In overall ranking, Uganda took position 100, Kenya 120 and Burundi 131 follow in that order with index of 2,369 and 2,577 respectively.

The finding may be of significance to investors as peace and stability are crucial characteristics of a prospective investment destination.

In the ranking, Kenya and Burundi find themselves among the bottom 20 per cent of the countries that were surveyed alongside Sudan, Somalia, Iraq, Democratic Republic of Congo, Zimbabwe, Burundi and Ethiopia among others.

Kenya’s position is only 28 places above that of Iraq, which Burundi is even worse 18 places above Iraq, Somalia.

Kenya’s war-torn neighbor is the second least peaceful nation, with an index of 3,390.

The finding, seem close to a recent World Bank survey which found that Rwanda was the EAC region least best business destination.

However, the Bank survey, which also indicated Burundi as the least conducive place for business and was based mainly on economic indicators, such as how easy it was to register a business and tax regimes.

Sub-Saharan Africa, according to the report, is the least peaceful with an average peace index of 2.23.

For war-torn countries Somalia, Sudan, Chad and Democratic Republic of Congo continue to occupy the lowest 10 positions in the index and each experienced deterioration in their scores,“ it says.

Botswana fares best in Sub-Saharan Africa, at position 33.The report attributes this to a reduction in the proportion of its population in jail.

“The country’s military capability is limited, as it is free of internal conflict, and low scores for most measures of safety and security point to a relatively harmonious society, although the homicide rate is high.”

In Africa, Tanzania took the top position with a peace index of 1678,it ranked 37 overall of all countries surveyed.

Globally, the report says, New Zealand is ranked as the country most at peace for the second consecutive year, followed by Ireland sand Japan, while Iraq is last for the fourth year running.

The report acknowledged that “This concept of peace is notoriously difficult to define”. However, the survey considered a measurement of peace as the “absence of violence.”

It thus sought to determine what cultural attributes and institutions are associated with states of peace and relied on 23 indicators.

The survey, which focused on an going domestic and international conflict, safety and security in society and militarization, also says that the world has become slightly less peaceful in the past year.

The survey registered “overall increases in several indicators, including the likelihood of violent demonstrations and perceptions and of criminality.”In some nations, an intensification of conflicts and growing instability appears to be linked to the global economic downturn in late 2008 and early 2009,”says the reports.

Ends

leooderaomolo@yahoo.com

East African Community: REGIONAL GOVERNMENTS ARE SEEKING SECURITY THE PACT TO SAFEGUARD INDIAN OCEAN KEY ROUTES AGAINST PIRACY.

Business and Economic News
By Leo Odera Omolo Inn Kisumu City

The East African Community member states have been pushing for an agreement on cooperation in preventing and suppressing acts of piracy and armed robbery against merchant ships plying the Indian Ocean.

Regional Communication Ministers who attended last week meeting of the 7th Sect oral Council of Ministers responsible for Transport and Communication and Meteorology {TCM} held in Arusha,Tanzania, noted and discussed the serious economic and transportation impact for the region of the containing piracy off the Somali coast.

The Rwandan Minister for Infrastructure, Vincent Karega who chaired the m, directed the EAC secretariat to v agreement on cooperation in preventing and suppressing anti piracy and armed robbery against commercial and, merchant ships in line with recommendations of the International Maritime Organization..

The Council further directed the secretariat to develop proposal on the establishment of a regional maritime patrol unit in order to pool resources together and tap into the international goodwill currently available for funding such a unit.

Although EAC partner states regard the Indian Ocean and specifically the East African coastal waters as strategically important economic lifeline of the region, both in terms of providing the gateway for imports and exports as well because of the natural resources located in these areas, there is currently no harmonized position or strategy on the piracy menace.

Pirates captured in the act in this region have hitherto apprehended and prosecuted in Kenya courts.

The country has separately agreed with the US, EU, Britain, Canada, Denmark and China to accept Somali pirates. However, since March this year, Kenya refused to anymore pirates arrested in high seas, arguing that the burden should be shared out by the international community.

Fears and suspicion persist that arraign in these pirates in Kenyan courts could possibly attract international terrorists group to carry out revenging attack on Kenya’s key economic installations and other targets since some of the pirates are connected to the Islamic terrorists groups.

Again Kenya’s judicial system is notoriously slow and its prisons already overcrowded. The government officials have asked for additional support to ease the strain, but have not yet specified what is needed most.

The EU said recently that it would support the formation of an East African team that will review measures to tackle piracy in the Horn of Africa

The regional governments face a myriad challenges ranging from overloaded judicial system, lack of space to house the suspected pirates and language barrier in interpreting court proceedings.

Ends

leooderaomolo@yahoo.com

EAC & KENYA: MESSAGE TO KIBAKI FROM THE EAC CHIEF EXECUTIVE ON UHURU PARK BOMB BLAST

From: Leo Odera Omolo

H.E. President Mwai Kibaki, CGH, MP
President of the Republic of Kenya
State House, NAIROBI

Your Excellency

RE: UHURU PARK BLAST TRAGEDY

It is with great shock and sadness that I have received the tragic news of the blast at Uhuru Park , Nairobi on 13 June during a prayer meeting of the Kenya Constitution Referendum campaign in which 5 people have lost their lives and many others have been seriously injured.

On behalf of the East African Community, and on my own behalf, I convey heartfelt condolences and deep sympathies to the bereaved families, relatives and friends of those who lost their lives in the tragic incident; and wish the injured quick recovery.

The East African Community is deeply concerned by the tragic incident and condemns the heinous act in the strongest terms. By their dastardly act the perpetrators of this wicked and criminal deed have attempted to disrupt the peace and tranquility of Kenya at a time when the nation was recovering from its post-election violence of 2008 and seeking national reconciliation and reform.

The East African Community wishes to reiterate its support for a peaceful and democratic conduct and determination of the Constitution Referendum based on the informed and free choice of the people of Kenya . Every effort should be made to hunt down and bring the perpetrators of this heinous act to justice and put Kenya firmly on the path of a peaceful, united and prosperous society.

Accept, Your Excellency, the assurance of my highest regard.

Amb. Juma V. Mwapachu
SECRETARY GENERAL

CC: Rt. Hon Raila Odinga, EGH, MP
Prime Minister, Republic of Kenya
Treasury Building , NAIROBI

Kenya, Tanzania and Uganda: East African states have decided to levy fee on all the fishermen and fish traders operating in Lake Victoria

Business and Economic News By Leo Odera Omolo In Kisumu CITY

THE three governments of Kenya, Tanzania and Uganda have agreed to impose levy charges on fishermen and fish traders operating in Lake Victoria in the near future.

This was agreed at the Council of Ministers in charge of fisheries from the three countries at a meeting held in the Ugandan capital, Kampala last week. The proposal is contained in a joint ministerial statement issued last Friday after the meeting.

It is indeed one of the various raft of measures aimed at raising funds to run and manage this fisheries sector.

“All the three countries will have to ensure that the fish landing site users fee is legislated as a funding mechanism for Beach Management Unit, “reads the joint statement.

It was signed by the Ugandan Minister for Agriculture, Culture, Animal Husbandry and Fisheries Hope Mwesigye, Kenya’s Fisheries Minister Dr.Paul Nyongesa Otuma. Tanzania’s High Commissioner to Uganda Rajab Gamal signed for his country’s Minister for Fisheries.

The move came in the wake of the reported move by the European Union {EU} which has been supporting most of the Beach Management Units and infrastructure development had announced it would be pulling out by August this year.

To-date, the EU has finance the Beach Management Units within the three territories to the tune of Kshs 3 billion. The phased out EU support aimed at fighting illegal fishing, building office blocks, research and vessels, among other activities.

And among the options the three Ministers discussed was the possibility of increasing states contributions to the regional kitty managed by the Lake Victoria Fisheries Organization, whose administrative headquarters is based in Uganda.

Presently, every country provides an equivalent amount of money to the tune of Kshs 9 billion [USD 120 million} and Kshs 24 million {USD320,000}

The Council of Minister, however, is exploring the possibility of setting up a fish levy trust to help in the implementation of the programs.

Dr Otuoma was quoted by the press as saying that the running of the water body can no longer be done by every state individually.

Among the challenges faced include deterioration of water quality due to pollution, over fishing and use of illegal harvesting methods..Stocks of the biggest income earner, the Nile Perch, have been on the decline, pushing high its price in the local and international market.

Available statistic released in February this year by LVFO shows show that 360,000tons of Nile perch had been harvested cumulatively b the three countries. This compared badly with the 1,932,000 tons last year.

The decline in many fish species in Lake Victoria is also attributed the poor quality of water which is excessively polluted by industrial residues discharged from various towns and u country industries.

Numerous Non-Governmental Organizations {NGOs} have sprung up in recent year and went over drive in raising funds from foreign governments, mostly in Western Europe purporting to be working towards the preservation of Lake Victoria waters and fighting its environmental degradation, but only converted the donor money into wealth making.

These NGO are found within the three countries of Tanzania Uganda and Kenya. They usually approach the donor agencies with elaborate plans earmarked for fighting pollution and other environmental degradation in the water mass, but all the funds got siphoned and ended up lining the pockets of the NGO bosses, but strangely enough thy still able to continue conning the donor nations of millions of dollars of taxpayers money in those countries.

The sweet talking bosses of these NGO have become excessively wealthy and jet set flying to every capital of the world, especially within the EU nations attracting donor fund, and yet the quality of water in Lake Victoria has deteriorated so much that it is no longer even fit not only for fish breeding, but even for human consumption.

Millions of dollars raised from the generous donor agencies most of it is squandered in funding the purchase of the latest state of the art vehicles, mostly the four wheel drive Japanese fuel guzzling cars private posh houses in the cities, business enterprises premises and other valuable properties while Victoria is on its deathbed!!.

Lake Victoria has changed its color and the water looked dirty and contaminated due to human errors and pollution by industrial wastes.

Ends

leooderaomolo@yahoo.com

TANZANIA: NYERERE’S VISION STILL LIVES WITH US

Colleagues Home & Abroad Regional News

BY JOSEPH ADERO NGALA
ARUSHA-TANZANIA

Former South Africa President Nelson Mandela acknowledges that even after former President of the Republic of Tanzania and founder Julius Kambarage Nyerere had stepped down from public office in his own country, we still benefit from his leadership and wise counsel, in pursuit of development, peace and justice not only in our countries, our region and our continent, but throughout the world.

As the Africa wise men say, when elders sit under a tree there must be a new good thing coming on the way. This happened recently in Arusha, Tanzania when a team of experts gathered for a workshop that brought a number of renowned writers, professors, lecturers and human right activists from Rwanda, Kenya Burundi, Uganda and Tanzania.

The deliberation took three days from May 6 -8 at Kibo hotel place. The workshop was convened pursuant to the East Africa Calendar of Activities covering January-June 2010. The purpose of the workshop was to develop a research Agenda for the Centre through a consultative and collaborative approach.

The think tank discussed and generated consensus amongst the participants on the general direction of the policy-oriented research; determine research topic /focal areas under three thematic areas; and determine a set of research questions for the different research topics.

The Deputy Secretary General Political Federation Hon Beatrice Kiraso in her opening remarks welcomed the participants drowned from the East African countries. In her maiden speech she informed the workshops participants that the vision of East Africa Community is to have a peaceful, secure and politically united East Africa.

She noted further that the Treaty underscores peace and security as pre-requisites to social and economic development within East Africa community and vital to the achievement of the objective of the community.

She underlined the importance and relevance of peace and stability to all the four stages of integration and emphasized that without peace and stability, all the remarkable achievements of regional integration cannot be sustained.

Kiraso informed the workshop that the overall objective of Nyerere centre for Peace Research (NCPR) is to provide the East African Community with relevant and timely research, training and information that contribute to deepening and widening of integration in areas of Peace and security, good Governance and foreign policy coordination.

She made it very clear that the centre will carry out its mandate through empirical and policy-oriented research and capacity building in key areas that will enhance deepening and widening of the East Africa Community integration in general and peace and security, good governance and common foreign policy pursuits in particular.

The author was one of the experts attending the workshops. During the discussion there were a number of debates that generated issues raised from cattle’s rustling, transport, child soldiers, prostitution, war lords, constitution reviews.

Present were among eminent professor Makumi Mwagiru, the guru of peace and security from the University of Nairobi, Professor Beregu from St Augustine University, and a well known Kenyan Professor Gilbert Khadiagala who chaired the meeting.

The Nyerere Centre for Peace Research started as a joint effort of the East African Community (EAC) and Arcadia University that provides an academic resource to the member states of EAC. Engaging in policy research and analysis, data collection and training, the centre supports decision makers, civil society organizations and the community whose aim is to build capacity and promote the peaceful settlement of conflict in the region.

The Nyerere Centre for Peace Research is located at the site of the EAC Headquarters in Arusha. Housed in the Princes Margaret of the former State House Compound (barara ya afrika Masharitiki) the centre will preserve and celebrate the heritage of this site and draw on the distinct cultures of Eastern Africa as a means to promote peace.

Julius Kabarage Nyerere was born on April 13, 1922 in Butiama, Tanganyika, to local Zanaki Chief. Nyerere Burito. At age of 12 he began his education at the Government Primary School in Musoma, walking 26 miles each day to attend classes.

He completed his schooling in a year early. He was then transferred to the Tabora Boys government Secondary School in 1943 he moved on to Makerere university for certificate in education, and then returned to Tabora to teach at St Mary’s Mission school. In 1949 he became the first Tanganyika to study in Britain when he obtained a Masters of Arts in history and economics at the University of Edinburgh.

On his return to Tanganyika, he took a teaching position at St Francis College in Dar-es-salaam, where in 1954 he developed the Tanganyika Africa national union (TANU) which grouped together nationalist factions towards an agenda of independence and self-reliance for the country.

Nyerere then entered the colonial legislative council in 1958 and in 1961.Tanganyika was granted self-governance and Nyerere was elected its Prime minister. When Tanganyika received full independence in 1962, Nyerere was elected president, a post he held until his retirement in 1985.

During his political career, Nyerere grew to become one of the most respected and beloved African leaders through his messages of peace, Unity and liberation for the Africa people. He was instrumental in the creation of the organization of Africa unity (OAU) and acted as the keystone of several liberation moments across the continent as well as the union between Zanzibar and Tanganyika to form the united republic of Tanzania. His work continued beyond his retirement, acting as the chair of the intergovernmental south centre and a mediator in Burundi. He died on October 14, 1999, in London.

The workshop was organized by Pamela Atakunda and Ethel Sirengo. At the end of the workshop the way forward was reached -that East Africa community to strengthen the human resource capacity of NCPR in order to be able to undertake the proposed research activities; resource mobilization to effectively implement the research activities; have a timeframe for the research activities and updates the existing database of research institutions and individual researchers.

People for Peace in Africa (PPA)
P O Box 14877
Nairobi
00800, Westlands
Kenya

E-Mail news@ppa.or.ke
Tel 254-20-4441372
Website : www.peopleforpeaceafrica.org

Kenya: Citizen Moi verses the Dictator Moi.

If you hear citizen Moi talking about KATIBA, the way he explains how we must get a good Katiba to be peaceful, you would be forgiven for imagining this has been a crusader of human rights and social democracy all his life.

It would never cross your mind for a minute if you are a visitor in Kenya for the first time and never heard of Moi that this is the very demagogue who presided over the erosion of our democracy and social fabric, the man in whose hands social injustice crept into Kenya through his very inept leadership.

Moi, you would not fathom, is the father of corruption, impunity and degradation of our institution,( the godfather of psychophancy that some politicians have never been cured of) to the extent that we are now reshaping our constitution to build the very institutions he broke down over his 24 years of presiding over human rights abuses, torture, maiming, murder and wanton theft of public resources.He eroded the very constitution we are embarking on changing by his road side declarations, systematic deconstruction of the Judiciary and Parliament to the extent that these became irrelevant in Kenya until recently(at least for Parliament, Judiciary has never recovered).

For such a man to be even heard in public “advising” what he had 24 years to achieve and only succeeded in incarcerating those who fought for what he claims to be fighting for now is an irony that even the devil incarnate cannot understand.

Citizen Moi needs to shut up, he has no fragment of any morality to even open his mouth where discussions veer to topics such as good leadership, good governance and human rights.Otherwise, the government may be tempted to deal with Dictator Moi the way all dictators are dealt with.

Otieno Sungu.
Juba-Southern Sudan