Category Archives: East African Community News

RE: PRESS RELEASE EU -AFRICAN REGIONAL ORGANIZATIONS LUSAKA DECLARATION

PRESS RELEASE

HIGH-LEVEL AFRICAN REGIONAL ECONOMIC COMMUNITIES MEETING WITH EUROPEAN UNION ADOPTS HISTORIC “LUSAKA DECLARATION” ON AID EFFECTIVENESS AND DELIVERY OF CONCRETE RESULTS

– EU and African regional organizations set brisk pace of implementation of regional integration and development programmes –

From Magaga Alot, Corporate Communications Expert, EAC in Lusaka, Zambia, 15th September, 2009: Five African regional economic communities – East African Community (EAC), Common Market for Eastern and Southern Africa ( COMESA), Indian Ocean Commission (IOC) and the Inter-Governmental Authority for Development (IGAD) – have concluded a two-day meeting (14-15 September, 2009) in Lusaka, Zambia with a bold declaration of commitment to efficient and effective programme management and closer co-ordination among them, reducing costs of doing business in Africa and enhancing good governance to usher a new era of peace, security and development across the region.

Meeting attended by high-level executives and senior officials

The High-Level Meeting of the Inter-Regional Co-ordinating Committee (IRCC) of the Eastern and Southern Africa – Indian Ocean Commission (ESA-IO) Region and the European Union (EU), held under the theme, “Enhancing delivery on the ESA-IO regional integration agenda” was officially opened by H.E. George Kunda, Vice President and Minister of Justice, Zambia and was also addressed by Ministers: Hon Felix Mutati, Minister of Commerce, Trade and Industry, Zambia; Hon. Amos Kimunya, Minister of Trade, Kenya; Hon. Rukiya Chekamondo, Minister of State for Finance in charge of Privatization, Uganda; Hon. Arvin Booleil, Minister of Foreign Affairs, International Trade and Co-operation, Mauritius; and Mr. Erastus Mwencha, Deputy Chairperson of the African Union Commission.

The Meeting, which was co-chaired by Eng. Mahboub Maalim, Executive Secretary of IGAD who is also the Chairman of the IRCC and Mr. Stefano Manservisi, Director General for Development, European Commission, was also attended by Ambassador Juma V. Mwapachu, Secretary General of the East African Community who is also the Chairman of the EAC-COMESA-SADC Tripartite Task Force; Mr. Sindiso Ngwenya, Secretary General of COMESA; Ambassador Callixte d’Offay, Secretary General of IOC; Dr. Tomazo Salomao, Secretary General of SADC; and Senior officials of the EU and African regional organizations.

Zambia Vice President commends EAC-SADC-COMESA Tripartite

The Vice President and Minister of Justice of Zambia, Mr. George Kunda said the ESA-IO has made good progress with the launching in June 2009 of the COMESA Customs Union following the launching of the EAC Customs Union in January, 2005; the progress towards establishment of the EAC Common Market by 2010; and the ongoing preparations towards the establishment of a larger free trade area comprising of a membership of the EAC-SADC and COMESA regional economic communities. He said the EAC-SADC-COMESA Tripartite process would address the challenges of overlapping membership currently faced by the African countries; and provide stimulus to private sector participation in the sustainable development of the region. The private sector would benefit from harmonized rules and procedures and simplification of requirements and guidelines to trade in the region. These developments would dovetail into overall effectiveness of regional integration in Africa. The Vice President said that under the EAC-SADC-COMESA Tripartite arrangement, streamlining of Aid for Trade (AfT) strategies would lead to “ additional resources and more predictability of funds provided” to address Africa’s priority needs in the critical areas of regional infrastructure development and other trade facilitation.

Delegates emphasize effective aid and trade linkage

The Director-General for Development, European Commission, Mr. Stefano Manservisi said there was need to give practical and concrete expression to EU-ESA/IOC co-operation and inclusive search for solutions for the global economic system following the global economic and financial crisis. He said it was within this context that the pursuits of the EAC-COMESA-SADC free trade area and the Economic Partnership Agreements (EPAs) with Europe should be viewed. “We want concrete results to support regional integration, we need road maps to set out what we will do to get results …… we do not need further policy papers, now we need to implement programmes,” he said.

The Vice Chairperson of the African Union Commission, Mr. Erastus Mwencha said that integration in Africa was not an option but a matter of survival, noting that integration called for great sacrifices in the short term which would, however, pay off handsomely in the long term. He said the first stage of African integration, involving the strengthening of institutional frameworks of existing regional economic communities; and the second stage, of co-ordination and harmonization of activities, in particular, the gradual elimination of tariff and non-tariff barriers, have been achieved. He said the stage was set for the third and most definitive phase of the establishment of a continental customs union followed by a common market. In moving forward, the African countries faced both structural and normative challenges, among which were resource constraints, poor state of infrastructure, reluctance to cede nationalism and sovereignty for the common good, inadequate integration of regional and continental initiatives into national development plans as well as peace and security challenges.

The Secretary General of the East African Community, Ambassador Juma V. Mwapachu said regional integration in the ESA-IO region was experiencing major positive transformations, at both the levels of the individual regional economic communities and of the COMESA-EAC-SADC Tripartite arrangement. He said challenges were experienced with regard to the persistent problem of non-tariff barriers to trade among the Member or Partner States of the regional economic communities, in infrastructure deficiencies, especially in roads, railways, energy, and inland waterways transportation which demanded huge outlays. The region also faced Non Tariff Barriers (NTBs) largely anchored on the negative mindsets of public officials and administrative impediments that could be quickly solved without much financial cost. He said EAC is putting emphasis, under its Trade and Transport Facilitation Project supported by the World Bank, ADB and Japan, on the planned introduction of one-stop border posts across the common borders and administrative measures which include recent introduction of 24-hour operations of the port of Mombasa and reduction of weigh bridges and road blocks along the East African highways from the ports of Dar-es-Salaam and Mombasa to the hinterlands of Kigali, Kampala and Bujumbura.

The Secretary General of the Common market for Eastern and Southern Africa Mr Sindiso Ngwenya called for a systematic approach to aid effectiveness to adapt aid delivery mechanisms to specific regional integration needs. Consideration should be given to the inter-linkages of regional integration needs and programmes implemented to shape regional market , boost trade and attract investment. He said the programmes should address deficient infrastructure networks, inefficient financial markets and inadequate support structures to small to medium scale industries. There is need to improve existing delivery instruments as well as design new ones in order to achieve more effective results under the EU-ESA/IOC co-operation. He said lessons should be drawn from the Marshall Aid Plan and some of its relevant features adapted to the EU-ESA/IOC co-operation. He called for setting up of an EU-ESA/IOC Aid Effectiveness Task Force to intensify and structure ongoing work on aid delivery instruments, specifically target regional integration and development , including leveraging the role of the private sector to achieve sustainable development and ultimately provide exit strategy from aid dependency.

Lusaka Declaration sets brisk pace of regional programme delivery

In their Lusaka Declaration, the High Level Meeting of the executives and senior officials of the Eastern and Southern Africa/Indian Ocean Region and the European Commission outline specific and time-lined measures for effective, reliable resource mobilization, efficient utilization and delivery of concrete, quantifiable results of regional integration and development. The Lusaka Declaration stresses aid effectiveness through streamlined procedures, instruments and measures for programming and timely delivery of EU support to regional integration.

The High-Level Meeting discussed at length the Regional Strategy and Indicative Programme (2008-2013) agreed between the EU and the ESA/IO Region in November 2008 in Strasbourg under which the EU pledged EUR 645 million over the five-year period. The issue of aid effectiveness is expected to loom large at the mid term review of the Regional Strategy and Indicative Programme in March next year. The EAC Secretary General, Ambassador Mwapachu told the Lusaka meeting that “quicker funding delivery is critical in implementing projects on time and producing benefits early…. We should avoid the bad experience we went through in the 9th EDF delivery process”.

Similar concerns were expressed by the Kenya Minister of Trade Mr Amos Kimunya who observed that delays in aid disbursements for investment projects led to escalation of costs and significant opportunity costs to the extent it was apparently more prudent to go for commercial loans in financing the projects. “The issue of aid effectiveness should be addressed noting that for aid to be effective, it has to be timely and predictable… delayed aid disbursements is as good as no investment”, Mr Kimunya said.

The Lusaka meeting highlighted the issue of insufficiency of Aid for Trade and ODA and the need to ensure that funding pledges and disbursements represent not only speedy disbursement but also “truly new and additional funds” with respect to ongoing projects as well as response to the emerging challenges of food security, global financial and economic crisis and global climate change.

The Lusaka Declaration indicates steady approach to a common ground between the EU and the African regional organizations on the issues of aid effectiveness with its bold restatement of the commitment under EU Aid for Trade Strategy to achieve a target of EUR 2 billion per year by 2010 and focus on harnessing new resources on a sustainable and predictable basis for development and efficient utilization of assets and resources.

The Lusaka Declaration requires the regional economic communities to intensify the development and harmonization of the Aid for trade (AfT) strategies, ensure coherence and alignment at national and regional levels to cover the wide AfT agenda. The declaration places emphasis on the mobilization of private capital in order to leverage private sector participation to secure additional financing for sustainable infrastructure investments through the regional investment initiatives – the COMESA Infrastructure Fund, EAC Development Fund and the Tripartite Trust Account that are being supported by the EU.

Setting a brisk pace for the implementation of the practical-oriented provisions of the Lusaka Declaration, the High-level Meeting established an IRCC Aid Effectiveness Task Force to intensify and structure the ongoing work on aid and programme delivery. The meeting scheduled a follow-up Resource Seminar for 5th and 6th October, 2009 in Addis Ababa with participation of the regional economic communities to clarify and assess financial needs and resources. The Addis Ababa seminar will be followed up by the regional economic communities presentation to the European Commission by the end of November, 2009 of a concrete and complete schedule of the priority actions to be taken to implement the indicative needs for regional integration and co-operation, including issues related to the conclusion of the Economic Partnership Agreements (EPAs) between EU and the African regional organizations.

Directorate of Corporate Communications and Public Affairs

EAC Secretariat

Arusha

September 2009

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From: Magaga Alot
Subject: RE: PRESS RELEASE EU -AFRICAN REGIONAL ORGANIZATIONS LUSAKA DECLARATION
Date: Tuesday, September 22, 2009, 2:25 AM

sharp differences in monetary policies delaying the creation of EAC Monetary Union

SHARP DIFFERENCES IN MONETARY POLICIES DELAYING THE ESTABLISHMENT OF EAST AFRICAN MONETARY UNION IN THE REGION AS ORIGINALLY PLANNED FOR 2012.

EAC Specialized Feature By Leo Odera Omolo In Kisumu City

The much talked about and planned East African Community [EAC} Monetary Union, where a single currency will be used for all the business transaction in the region is expected to be in place in the year 2012.

However, the economists and experts in East African politics are sending out skeptical signals that this might not be feasible because of the existing differences in macroeconomic policies and the economic structures of the EAC member states.

EAC member states are Kenya, Tanzania, Uganda, Rwanda and Burundi. One of the example given is that for instance; Burundi, which only recently joined the EAC economic bloc does not have a revenue authority to formulate and implement tax policies, like its other partners like Kenya, Tanzania, Uganda and Rwanda.

In a brief opening remarks, during the recently concluded 3rd EAC Media Summit, held in Kampala, Uganda, the EAC Secretary General, Ambassador Juma V Mwapachu told the delegates comprising of media owners, editors, journalists and correspondents that the most difficult task is to establish a Monetary Union.

He said this is because it requires all the partner states to harmonize different macroeconomic policies and come up with a strong monetary union. The success of such a monetary union, he added, hinges critically on member countries pursuing convergent macroeconomic policy.

‘There are still many things that need to be done, because of so many differences in macro economies. Because of these divergent economic policies, we might not have a monetary union by 2012.”

Addressing the same forum, the Director General of Customs Union and Trade in the EAC, Mr. Peter N.Kiguta, predicted that the EAC Customs Union will be in place by January 2010.

Kiguta said this being an integration process of implementation of customs union, is a process not an invent, therefore it is continuous. However there are certain milestone that are to be achieved at given dates.

“The transition period in the elimination of internal tariffs”, he said, “is set to be achieved from Ist January 2010”, adding that “currently, the highest duty paid on affected Kenyan goods entering Tanzania is five per cent, while those entering Uganda attract only two per cent. But from the First January 2010,these duties will go to zero, thereby enabling trade between all EAC partners states to be duty free zone”.

Mr Kiguta further explained that currently, the EAC applies the CET as revised in 2007 to incorporate new international developments. However, tariff rates for some goods have been adjusted in order to accommodate critical policy changes of specific partner states. Such changes are usually temporary for specific periods of times. Carried in the long run ,the CET is expected to gain some stability.

In accordance with the customs union protocol, a review of the highest CET rate of 25 per cent is to be undertaken within five years. The review process has already been initiated and is being carried out by the partner states with back stopping of the EAC secretariat at Arusha,Tanzania.

Mr Kiguta further explained that the policy environment under which the customs union is being established include liberalization of cross border trade, underlies the process of establishment of the customs union. However, he said, some impediments continue to be encountered in the form of non tariff barriers {NTBs}. A mechanism for identifying and monitoring removal of NTBs has been operational.

Similarly, Mr. Koigjta went on saying that the on-going implementation of economic policy reform, mostly under the sponsorship of IMF and World Bank, is geared towards creation of a policy environment ,which is supportive of liberalization of trade and investments, as a catalyst for economic growth. Such fiscal monetary, financial sector and structural economic policy reforms are mainly aimed at stemming macroeconomic imbalances. Since they come with financial packages, it is difficult to discern how partner states could have performed in trade liberalization under regional integration without such financial support.

“And also much of what has been achieved nationally in terms of moving towards economic convergence such as GDP growth rates and low inflation is attributable more to implementation of national reform program, rather than regional policies”, said Mr. Kiguta..

Mr Kiguta explained that EAC member states are also members of other regional economic communities {RECs} namely Common Market for East and Southern Africa [Comesa} and the Southern African Development Community {SADC}. These RECS have their own programs for trade liberalization.

This is to say for example. Kenya, Burundi and Rwanda were already trading duty free under COMESA before the latter two, namely Tanzania and Uganda commenced implementation of the East African Customs Union in January this year and in only their membership of the Comesa FTA eased their implementation of the EAC Customs Union.

Apparently, the governors of Central banks in the region recently called for a comprehensive study to assess the extent of economic variance such as inflationary situation ,interest rates, level of budgetary deficits as well as foreign exchange reserves, basically taking a look at the current preparedness of each partner state for the creation of the EAC Monetary Union..

The study is expected to recommend ways for fast tracking a monetary union for East Africa, and the EAC Secretary General, Ambassador Mwapachu says that the study being undertaken by the European Union Central Bank is expected to be completed in about six weeks from now

Currently, the European Union {EU} is the most integrated economic region in the world with 26 member states, 16 countries of which are in Euro zone or use the European single currency Euro introduced by the union in January 1999.

Ends

leooderaomolo@yahoo.com
– – –
From: Leo Odera Omolo
Date: Tue, Sep 1, 2009 at 10:00 PM
Subject: sharp differences in monetary policies delaying the creation of EAC Monetary Union

Re: Is Tanzania: Slowing Down EAC Integration over Land Concerns?

On Tue, Apr 21, 2009 at 1:00 PM, Lufingo Sadiki wrote:

Wanandugu wa Bidii,

Nimeikuta hii headline hapa http://www.globalexchange.org/countries/africa/tanzania/6030.html na kwauapnde wangu nimeona makala nzima imependelea upande mmoja!

Naomba tujadili ili tusioelewa tujue nini kinaendelea kuhusu hili.

Mubarikiwe!


Lufingo Sadiki

BIBLE SOCIETY OF TANZANIA
Box 175, Dodoma.

The United Republic of Tanzania.

Cell: +255 786 076 565
Tel: +255 26 2324661
+255 26 2324459

Britain and other colonial powers blamed for African disunity at the EAC Media summit

Imperialists and European colonial powers blamed for having balkanized African population for their own selfish economic interests

News Analysis By Leo Odera Omolo In Kampala.

Delegates attending this year’s East African Community Media Summit, which was held in the Ugandan capital, Kampala at the weekend, were treated to a special lecturer, which the majority would like to forget as fast as possible and not to hear again.

While making his presentation, the veteran Tanzanian controversial journalist. Mr Generali Ulimwengu, hit at the imperialists and colonial powers who converged in Berlin in 1884-85 and resolved to partition the African continent to suit their own commercial and economic interests.

Mr. Generali Ulimwengu presented his paper soon after the opening remarks By the EAC’s Secretary General, Ambassador Juma Mwapachu. His paper was on “One people, One destiny; The role of the media in uniting the people of East Africa”.

In his key note address, the First Deputy Prime Minister of Uganda, Eriya Kategaya, who is also his country’s Minster for East African Community Affairs, said the 3rd East Africa media Summit follows the inaugural meeting, which was held in the Kenyan capital, Nairobi in 2007 and the second one held in Dar Es Salaam in2008.

The Minister noted the importance these media summits have had on advancing the visibility of the EAC and better regional understanding of the regional issues. The good attendance of this year’s Media Summit, further confirm the media interests in the affairs of the EAC and determination to sustain the commitment to advance the cause of regional integration and development.

The Minister said the 3rd EAC media summit was taking place at a significant moment in the establishment of the common market next year, and reflect a high state of maturity attained by the EAC. Moreover, from January 2010,the customs union will be completely customs and duty free.

Kategaya said the EAC today embraces a larger, and robust market of a combined population of 125 million people, land area of 1.8 million square kilometers, and a combined GDP of USD 70 billion, according to the World Bank statistics of 2008. This endowment in land size, which has huge potential for agricultural development, in a big size population and growing opportunity is destined to become an envious economic hub in Africa.

The media summit is taking place at a time when the EAC is about to mark ten years since its establishment following the signing of the Treaty for the establishment of the EAC on November 30th 1999.

With the theme “EAC’s Ten Years of Progress;The Media as Partner in Promoting Integration”, the Summit is timely, the Minister observed adding, “It is my sincere hope that the challenges of consolidating the achievement made and the aspiration of deeper integration will occupy the center stage at the summit.”

Mr Kategaya said that following the exercise of groupings, he views the people on fast tracking the political federation that was conducted in 2007, and a consensus emerging to accelerate deeper integration through the stages at a common market by 2010, to be followed by Monetary Union {One Currency} by 2012.

This consensus, Mr.Kategaya said, has become the strategies driver for the EAC’s pragmatic activities. This is a significant progress of the common market protocol, which should be signed by the EAC Heads of State in November this year.

Perhaps apparently agitated by the theme of this year’s media summit, Mr, Generali Ulimwengu ,who is the owner of several media houses in Tanzania and a very controversial journalist, stunned the delegates when he re-visited the century old colonial history in Africa. He remarked, “Geographers, and cartographers-who met in wintry Berlin in 1884-85 and huddled over maps and sketches of the portion of Arica over which they haggled like vendors at a wholesale fish stall, in effect sealed the fate of our continent in ways that even they themselves could not have envisaged”.

He argued, while their protracted negotiations over who should have what piece of the African “cake”, each representing the economic and strategic appetites of his country, they brought together peoples and ethnic groups that had never had much to do with each other. They also drove wedges across peoples and groups that had considered themselves as belonging together for centuries.

He said as he presented his paper, ”We are not one people, at lest not yet. We are still Burundians, Kenyans,Rwandese, Tanzanians and Ugandans, desperate,often competing economic pursuits”.

Mr Generali Ulimwengu said, not necessarily surprising, seeing as our very identities were fashioned by people they were lumping together, in hugger-mugger fashion into entities they demarcated as their properties.

In this particular case of East Africa. It thus came to pass that on the one hand the Wasukuma found themselves lumped together with Wagoni, the Kambas with the Kipsigis and the Baganda with the Acholis. But on the other hand, the Luo, the Maasai, the Makonde, the Kuria, the Wadigo, the Banyarwanda, the Abaluhyia etc, found themselves in two, three four and even five different territories, eventually giving rise to the interesting phenomenon of the Aworis in both Kenya and Uganda.

The Awori’s issue is a study case, Moody Awori has represented rural Funyula constituency in Kenya Parliament for close to twenty years. He rose to become the second most powerful man on the land when he was made the Vice President, whereas his cousin in Uganda even challenged President Yoweri Museveni in the last presidential election and wanted to become the President of Uganda.

“Of course, this curving and parceling up our people was not done at the behest of some lofty altruistic instinct on the part of some philanthropic do-gooder in Europe, though at the time of the Wilhelmastrasse conference, it was convenient to marry off the “3 Cs- Commerce, Christianity and Civilization.

“The fact of the matter”, said Mr. Generali Ulimwengu, “is that we were divided for the construction of the Lunatic Express from Mombasa to Uganda, which it is also useful to understand that in the case of British East Africa-Kenya and Uganda- the real impetus for the construction of the Lunatic Express railway line from Mombasa to Uganda may have come, not from a desire to safeguard Kenya or Uganda, rather out of Whitehall’s to safe guard the Nile, strengthen Britain’s sovereignty over Egypt, to protect the Suez passage, overriding imperative to the jewel in Queen Victoria’s crown, the Indian Raj in the face of stiff competition from France, Germany Belgium and other imperialists powers”.

Generali Ulimwengu went on to say, “Sidekick or not, at independence the three East African countries were firmly under British colonial rule, whose appetite for continued possession had fueled the Mau Mau uprising in Kenya,with all the attendant that we are all familiar with”.

“We take cognizance of the fact that we were brought together in order to serve British strategic and economic interests. There is no doubt that the formation of the defunct East African High Commission in 1948 was part of this logical inter-territorial coordination mechanism for a more efficient exploitation of the resources of our countries in the service of British imperialism”, he ended.

Ends

leooderaomolo@yahoo,com

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From: Leo Odera Omolo
Date: Sun, Aug 23, 2009 at 8:30 PM
Subject: Britain and other colonial powers blamed for African disunity at the EAC Media summit

US IMPOSED FINANCIAL SANCTIONS ON IRAN ARE HURTING TEA EXPORTERS IN E.AFRICA

THE FINANCIAL SANCTIONS IMPOSED ON IRAN BY THE US GOVERNMENT COULD ADVERSELY AFFECT THE EXPORTATION OF TEA FROM EAST AFRICAN COUNTRIES TO TEHRAN.

Trade News By Leo Odera Omolo In Kisumu City

TEA exporters from East Africa are currently feeling the heat and impact of the United States sanctions imposed on world-wide financial institutions dealing with Iran, says analysts and stakeholders.

These come on top of the Islamic state’s already stringent regulation in place on foodstuff imports. Its effect is likely to have adverse economic impact on tea producers in Eastern African region, namely Kenya, Tanzania, Uganda and Rwanda who depend on the foreign exchange for their agro-based economies.

As the results of the sanctions, the exporters now have to find ways to navigate Iran’s new food importation policies, besides finding ways of circumventing the US sanctions.

Kenya’s Ambassador to Iran, Mr Ali Abbas Ali, was last week quoted by the EASTAFRICAN, a Nairobi weekly publication as saying that the two issues are the biggest stumbling block for East Africa tea exporters, who want to make inroads into the lucrative market , which is currently dominated by Sri Lanka and India.

Washington’s financial sanctions on Iran also affect remittances to the exporters. The US has barred banks from the rest of the world from trading with Iran, especially in American dollars.

And this is mainly in a bid to pressure Tehran Islamic regime to give up its nuclear programme.

The US government aims at restricting Iran’s ability to acquire nuclear know-how and materials.

And fearing Washington displeasure, several European and African financial institutions have severed ties with their Iranian counterparts or corresponding banks.

The financial squeeze has discouraged many investors from doing business with Iran.

“This presents a big challenge to traders who want to sell their products in Iran,” said Mr Ali.

“As things stand, Kenyan banks do not accept Iranian currency because their roots are in the US dollar”, the Kenyan envoy Ali, was further quoted as saying, adding that, “unless the governments in East African intervene, the US squeeze on Iran could lock out local tea exporters from the region”.

Currently, trade index shows that Sri Lanka supplies up to 58 per cent of the black tea imported by Iran . It is followed closely by India, at 39 percent, and East Africa at a mere 2 per cent.

There has been renewed interest by Kenyan and Iranian stakeholders, as well as government officials in increasing the volume of tea entering Iran.

Buyers at the Mombasa tea Trade Association say such a system should be free of tariff and non-tariff barriers, or be at par with the tariffs used by Sri Lanka and India.

“Some exporters have acquired Good Manufacturing Practices Certifications, but cannot make much headway into Iran because of the remittance problems”, said a member of the tea buyers association.

Such hurdles have led several Kenyan traders to visit Iran, and vice versa, to try to boost trade between the regions.

Already several tea producers in Kenya have acquired the Iranian Ministry of Health and Medical Education and Good Manufacturing and producers certificates.

They include the Kenya Tea Development Agency [KTDA] ,which manages close to 62 tea factories countrywide and four other private ones, according to Ghasmal Ashrtee, the Assistant Director general in the department of control of foodstuff, beverages, cosmetics and hygiene in the Iranian Ministry of health, treatment and medical education.

Many traders hope that the Mombasa based tea auction, which is conducted in US dollar, will embrace other currencies like the Euros, whose members countries have not fully embraced the US sanction on Iran. Many traders have also started to use telegraphic swift money transfer.

The system is executed confidentially through the Belgium-based Society for Worldwide International [swift} Financial Telecommunication as an alternative to letters of credit.

But the insiders says the sanction is really biting hard.

Ends

leooderaomolo@yahoo.com

– – –
From: Leo Odera Omolo
Date: Mon, Aug 17, 2009 at 11:07 PM
Subject: US IMPOSED FINANCIAL SANCTIONS ON IRAN ARE HURTING TEA EXPORTERS IN E.AFRICA

EALA PASSES CASSOA BILL

-President Kikwete expected to address the EALA Assembly today-
By Leo Odera Omolo In Kisumu City
The 1st Meeting, 3rd Session, 2nd Assembly of the East African legislative Assembly (EALA) on 6th August 2009 passed the Civil Aviation Safety and Security Oversight Agency (CASSOA) Bill, 2008 after adopting the report presented to it by the Committee on Communications, Trade and Investments Chaired by Hon. Catherine Kimura of the EALA.

Article 92 of the Treaty for the establishment of the East African Community, requires the EAC Partner States to harmonize their policies on Civil Aviation in order to promote the development of safe, reliable, efficient and economically viable Civil Aviation with a view to developing appropriate infrastructure, aeronautical skills and technology, as well as the role of civil aviation in support of other economic activities.

The Protocol on the establishment of the East African Community Civil Aviation Safety and Security Oversight Agency was signed by the three founding member states (Uganda, Kenya and Tanzania) on 18th April 2007.

The CASSOA Bill therefore aims at consolidating the provisions of the Protocol to establish and empower a regional body that will streamline and ensure that the highest international standards are maintained in the aviation industry.

The Bill is now awaiting Presidential Assent before it becomes an act of the community that will regulate matters of air safety and security oversight in the Aviation Industry within the EAC region.

Meanwhile, H.E Jakaya Mrisho Kikwete, President of the republic of Tanzania is expected to officially address the EALA and official open the 1st Meeting of the 3rd Session today 7 th August 2009 at 2:30 PM at the National Assembly-Old Chambers (Karimjee Hall), Dar-es-Salaam, Tanzania.

Background

The EALA is the legislative arm of the Community, which came into being on 29th November 2001 with representatives from the three Partner States of Uganda, Kenya and Tanzania. The Membership expanded in July 2007 with the admission of two sister Republics of Burundi and Rwanda. The MPs from the two Partner States took oath on 13th May, 2008 and have since then continued to make their valuable contribution to the EAC integration agenda.

The EALA comprises of a total of 52 Members, 45 elected Members (9 from each Partner State) and 7 Ex-Officio Members comprising five Ministers responsible for EAC affairs, the Secretary General of the Community and the Counsel to the Community. The legislative lifespan of the Assembly is 5 years having commenced on 5th June 2007.

It is important to note that the laws enacted by the EAC have the full force of law and take precedent over similar laws in the Partner States on matters related to the Community. In addition to passing legislation, the Assembly has adopted several resolutions and reports relating to the developments in the Community.

The Assembly is keen on the integration process and will seek to provide the required legislative framework and oversight to ensure that the integration agenda remains on track.

Ends
leooderaomolo@yahom.com

– – –
From: Leo Odera Omolo
Date: Fri, Aug 7, 2009 at 11:10 AM
Subject: EALA PASSES CASSOA BILL

PRESIDENT JAKAYA KIKWETE OPENS THE EAST AFRICAN LEGISLAIVE ASEMBLY IN DAR

SPEECH BY H.E. JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA, TO THE FIRST MEETING OF THE THIRD SESSION OF THE EALA, DAR-ES-SALAAM,

7TH AUGUST, 2009

By Leo Odera Omolo In Kisumu city

It gives me great pleasure to be back to the floors of the East African Legislative Assembly this afternoon. I thank you Honourable Speaker for inviting me and for affording me the opportunity to address this august Assembly.

At the outset, allow me to welcome you to Tanzania and Dar-es-Salaam in particular. I understand this is the first time the EALA is sitting in Dar es Salaam, the commercial hub of Tanzania. I trust that you will find the haven of peace befitting its name and that you will transact your business in a comfortable and hospitable environment.

Honourable Speaker and Distinguished Member:

As most of you know, I was an ex-officio member of this legislature since its inception until I became President of my country in December 2005. I continue to hold dear my role as a member to this esteemed body. I recall with fond memories our work in this Assembly during the challenging formative period when the EALA was trying to establish its feet on the ground.

I am happy to note that, since its establishment in 2001, the EALA has lived up to the expectations of the East African people. Back then, when we were discussing the establishment of this Assembly, there were some “doubting Thomases” who predicted its failure. They were saying that, time was not ripe for the EAC to establish a legislature with the mandate and authority encapsulated in the Treaty establishing the Community. Those sentiments of apprehension have been proven wrong. Indeed, and in a very fundamental way, those sentiments smacked of a gross misconception about the nature and character of our regional integration endeavour.

Honourable Speaker;

It was the vision of the Founding Fathers that the EAC shall be a people-centred regional organisation. An organisation owned by the people of East Africa, responsible to them and responsive to their needs and aspirations. They envisioned that the East African integration process would be driven by the ideals of democracy underpinned by consensual decision making. It is in this respect that the EALA was established as an organ of the EAC to give expression to these democratic ideals in the Community. Therefore, with its representativeness as well as the mandate and authority this Assembly carries, makes it a true embodiment of these ideals and, indeed, an important and principled instrument in our integration process.

Deliberately the East African Legislative Assembly was given legislative and oversight roles which has made this Assembly a proper functioning Regional Parliament. To this extent, the East African Community is unique on the Continent.

Honourable Speaker and Distinguished Members;

I can dare say without hesitation or reservation that, the EALA has done well as far as the discharge of its mandate and authority is concerned. You have done a commendable job in the oversight role with regards to EAC’s programmes and activities. In many ways this has helped to ensure that the Community effectively fulfils the mandate vested on it, and that it is also accountable for its work. Also, the EALA has acquainted itself admirably in the legislative function thus giving legal effect to several EAC policy decisions. As we deepen our integration the EALA would necessarily experience an increase not only in the complexity of the issues to be handled but also in the magnitude of your legislative activities. Given your achievements so far, I am confident that you are prepared to meet those challenges.

Equally, EALA’s outreach programmes, even in the face of limited budget resources, have also contributed, in no small measure, to the sensitisation and education of the broad East African masses on our integration agenda, its achievements and challenges. I wish to take this opportunity to commend you, Mr. Speaker and all the Members of this House, for your leadership and your commitment to EAC goals and ideals.

Honourable Speaker;

In November this year, the East African Community will be celebrating its 10th Anniversary. Ten years, in the life of an institution that is involved in complex regional integration issues, is too short a time to make an objective assessment of its performance. But still, we are obliged to reflect on where we have come from, where we are now and what remains to be done in the light of our vision and mission.

It is my hope that, in November, my colleagues, the other EAC Heads of State and I, will have the opportunity to address the East African people on these broad issues. However, since I have the opportunity today of addressing this august House, I feel the urge to kick start a reflection on some of these issues of critical importance to the success of our regional integration.

Mr. Speaker and Honourable Members,

As you are aware, regional integration efforts in East Africa have a long history. There is the pre-colonial part of this history where the seeds of integration were sewed. And, there is the post colonial part where there was a chequered history: consolidation, break-up and reinvention. I would like to limit myself to the post-colonial period where as independent nation states we share responsibility for the success and failure of the integration process. As you may recall, at independence the three East African countries of Kenya, Uganda and Tanganyika inherited the East African Common Services Organization (1961 – 1967). This was a successor organisation to the East African High Commission the initial regional integration arrangement established by the colonial Governors of our three countries.

In 1967 the three independent states decided to transform the East African Common Services Organisation into the East African Community. The East African Community could not survive for long due to challenges posed by divergent and conflicting nation-building projects pursued independently by member states. Also, because of inherent weaknesses imbedded in East African Community structures and operational modalities and mechanisms. It painfully collapsed in 1977 a mere decade after inception. We all share responsibility for that bitter memory. However, bitter memory as it is, we should not allow it to be a source of weakness, but of our courage, strength and commitment toward realizing our integration goals under the current arrangements. That is what the founding fathers of the current Community did.

Mr. Speaker, Honourable Members;

It took sixteen years before President Ali Hassan Mwinyi (Tanzania), President Daniel Arap Moi (Kenya) and Yoweri Kaguta Museveni (Uganda) signed the Treaty to revive the East African Co-operation. The three Heads of State signed the Treaty for the East African Co-operation in Arusha, Tanzania, on November 30, 1993 and in March, 1996 established the Secretariat and Tri-partite Commission to set in motion the integration process we are currently experiencing.

Since then, a lot of work was done with remarkable success, on building cooperation on the core areas as agreed in the 1993 Treaty. Several Protocols were signed to give effect to the cooperation agenda. These achievements are the ones which paved way for the re-establishment of the East African Community (EAC) through a Treaty which was signed by the EAC Heads of State on 30th November, 1999 and came into force on 7th July, 2000. The Treaty identified the Customs Union as the entry point for the East African integration process. This would be followed by a Common Market and a Monetary Union and a Political Federation would be the ultimate goal.

Indeed, the EAC Customs Union commenced on 1st January, 2005 with five years transition period to give effect to the principle of asymmetry. Under the Customs Union, internal tariffs and non-tariff barriers on intra-EAC trade were removed and a Common External Tariff was introduced for goods from outside the Community. A Common Customs Management Law was enacted by this Assembly to that effect. The process of integrating the economies of the EAC Partner States began and the transition period is coming to an end by this year end. By January 1st , 2010, the East African Customs Union will be fully fledged.

It is heartwarming indeed, that as we are about to complete the transition period of the Customs Union, our negotiations for the establishment of the Common Market are on track. This is a very healthy sign that we are making steady progress in our integration process. It is important however, for the EAC Partner States to make an evaluation of the EAC Customs Union to assess its impact, strengths and weaknesses. Use the outcome to consolidate the strengths and rectify the shortcomings for the benefits of the Partner States. Such an assessment, also would enable us to determine if there has been a change in the structure and direction of intra-EAC trade. The structure of intra- EAC trade prior to the commencement of the Customs Union was dominated by commodities from abroad, and the direction of trade was skewed towards non-EAC Countries implying that we were trading more with the rest of the world than among ourselves. It is therefore important to determine if there has been an improvement in these areas.

Honourable Speaker;

As we work toward the conclusion of the negotiations of the Common Market Protocol by November, 2009, if all goes according to plan, we should understand that the Protocol is expected to deepen our integration and widen the scope of cooperation and usher in new opportunities and challenges. Some of the opportunities and challenges are going to be crosscutting while others are going to be country specific. We should always bear in mind that nations and peoples engage in regional integration groupings with the hope of benefitting equitably. Each expects to maximise benefits while the others benefit too. In fact this is the essence of regional integration and designers and negotiators should always keep this in mind. Failure to do so defeats the purpose and keeps the foundation weak and vulnerable.

For example, Common Market will add more areas of cooperation including labour and capital mobility; the facilitation of the movement of persons; right of establishment; cooperation and harmonization of policies and strategies on social-economic, cultural and scientific fields, macro-economic stability and financial management. These additions are going to affect each country differently. For example, a poorly managed liberalisation of the intra-regional labour market may lead to increased unemployment in some partner states and cause resentment in these nations. Similarly, if we are not careful in the liberalisation of the capital markets we might face capital flight and balance of payments problems. These fears and worries of people of East Africa were clearly captured by the Wako Committee Report.

Mr. Speaker and Honourable Members;

As you are aware the East African Heads of State at the Nairobi Summit of 28th August, 2004 agreed to establish a committee (the Wako Committee) “to examine ways and means to expedite and compress the process of integration, so that the ultimate goal of a Political Federation is achieved through a fast track mechanism.” The Committee submitted its report to the Heads of State at the November 26th, 2004, Summit in Arusha. The Committee recommended that the East African integration process be fast tracked and the transition to political federation should start by 2010. The Committee also underscored the centrality of ensuring that each country benefits equitably and that the concerns of individual member states are given due attention.

With regard to Tanzania, the Committee’s report stated clearly that the people of Tanzania have serious reservations about the issue of free movement of labour and land becoming an East African property. The Wangwe Committee, which was our internal process which searched for Tanzanians’ opinion on fast tracking the East African Federation, came out with similar findings. It revealed that 96.7 percent of Tanzanians, indeed an overwhelming majority, said Yes to the idea of establishing a political Federation. So, in essence, almost all Tanzanians are in favour of the Federation. But when it came to fast-tracking the Federation, 75 percent of Tanzanians did not think it was a good idea. The same is true with Kenya and Uganda. ……..percent of Kenyans and…..percent of Ugandans favoured the Federation but the majority in both countries………percent in Uganda and ……..percent in Kenya did not favour fast-tracking the Federation.

Tanzanians also expressed fears on issues of land and free movement of labour.

Unfortunately, the views expressed by the people of Tanzania have widely been misunderstood to mean that they are against East African Federation. This is not the case. In fact, more Tanzanians supported the Federation than any of the three East African countries then. But fewer Tanzanians supported fast tracking than their brothers and sisters in Kenya and Uganda. They are cautious about hurried integration. Since the fears are real, they should not be downplayed, ridiculed or ignored. They should be taken regard of and ways allaying them should be sought. Tackling fears and concerns of member states is one important lesson to draw from the failures of the defund East African Community.

It is important, therefore, that the worries and concerns of peoples of each country be taken into serious consideration as we negotiate the Common Market Protocol without being baffled in propaganda. Enemies of our course are too anxious to downplay our EAC achievements, exaggerate our differences to an extent of becoming suspicions and hostilities. We should be on guard and remain focused on our integration priorities. We must not allow such distractions to derail us from our noble course.

Mr. Speaker, Honourable Members;

I mentioned earlier on that the collapse of the former East African Community has had serious implications during the negotiations of the Treaty for the new Community of 1999. Of particular interest then where the lessons of the past so as to avoid the mistakes made then. The idea was to avoid those mistakes so as to create a viable, sustainable and everlasting regional integration grouping. Besides, the issue of making the new EAC people centred rather leader centred the other issues taken into consideration included:

First, the 1999 Treaty took into account some of the weaknesses which were embodied in the institutions and processes of the former East African Community. The principle of asymmetry became one of the guiding pillars of our integration and it has proven to work well. Articles 77 and 78 of the East African Community Treaty, for example, provide measures and safeguard to address imbalance and serious economic injuries to member states emerging from the establishment of a Customs Union and a Common Market. These provisions are critical for the creation of win-win situation which is the very essence of regional integration.

Honourable Speaker;

It is in this spirit that when the East African Customs Union came into force those provisions were applied. The East African Customs Union negotiations were concluded in 2004. In the agreement, goods produced were divided into category A and B. While category A commodities from Tanzania, Kenya and Uganda entering the EAC market were eligible for immediate duty free treatment, those in category B coming from Kenya entering into Tanzania and Uganda were eligible to pay tariff for period of five years. The tariffs are gradually being phased out. So far, things have worked so well and according to schedule. As mentioned earlier, from January 2010 all goods from Kenya will start enjoying the same treatment as goods from Tanzania and Uganda do at the moment. Rwanda and Burundi who joined only a year a go will benefit like all other countries. We should congratulate ourselves for these achievements.

Second, the experience of the former EAC indicates that one of the contributing factors to its collapse was inadequate provision for participation of the private sector and other stakeholders in shaping the Community. The current EAC Treaty (1999) has drawn from this experience and has therefore placed greater emphasis on fostering regional development that is private sector driven and internationally competitive. The Treaty thus places Private Sector Development at the heart of the EAC strategy for accelerating regional growth, creating wealth, reducing poverty and enhancing international competitiveness. Business Council representative have permanent observer status within the decision making organs of the community. The fruits of this emphasis are widely being felt.

Honourable Speaker;

In this respect, it is important to emphasize that the thrust in promoting and developing the private sector should be through improved business environment, institutional and human capacity building that spurs increased trade and investment on one hand, and production and productivity of private sector firms. These issues should be on top of the Common Market Agenda.

Third, the spirit of the Treaty toward realization of its goals is progressive or incremental in spirit. The progressive and incremental integration approach as enshrined in the Treaty is intended to strengthen and regulate cooperation in a harmonious and balanced manner. Each stage of cooperation reinforces the next stage of integration and hence leads to a sustainable regional integration process. The founding fathers seem to have realized this as Article 76 (2) of the Treaty on Common Market testifies “the establishment of the Common Market shall be progressive and in accordance with schedules approved by the Council.” This approach has worked very well in some of the re-known regional integration organisations including the European Union which is one of the most stable and progressive economic integration scheme.

All these lessons which have been embodied in the current Treaty have contributed immensely to the achievements the EAC is experiencing now. As we appreciate these achievements let us not lose sight of these lessons. In fact, they are so important now than ever before as the deepening of the EAC integration process is taking place at a time of immense global financial melt-down which is already affecting our economy negatively. The impressive growth rates of our economies witnessed in the last decade are projected to decrease. This situation implies that some of the goals that we set ourselves will not be attained according to the original schedules. Nonetheless, this means Partner States would have to work harder in order to compensate the loss in the gains that we had accumulated in the last decade and attain the pre-crisis development trajectory. Your contribution in this endeavour is critical and would be highly appreciated.

Honourable Speaker;

Allow me to use this opportunity to reiterate our readiness to face the challenges of the envisaged EAC Common Market. We believe that the collective efforts of the Partner States and continued commitment to the EAC integration agenda would lead to more prosperity for the region because of the immense opportunities associated with a Common Market.

As I conclude my speech allow me to reiterate the fact that integration process is an ongoing process. There are many challenges ahead of us, many issues to negotiate, including the Common Market. And these negotiations are a process in both statecraft and diplomacy. And diplomacy derives its legitimacy and morality from patience, understanding, courtesy, empathy, civility and tolerance. It is important that our negotiation process – and indeed our journey towards our ultimate goal – be guided by these virtues and lessons learned from our past experience on integration process. All of the Partner States have signed on in this project voluntarily and with clear belief that the EAC objectives will serve the interests of their people. No one wants integration more than the other; no one wants integration less than the other. We are all in this together. I urge other entities in our region, particularly the media in our respective countries, to help inform and educate our people about these issues and not to stoke emotions and create a storm in a tea cup.

The major challenge for all of us remains how to strike a balance between regional and national interests in the negotiation process.

Mr. Speaker, Honourable Members, Invited Guest;

Allow me to end my remarks by once again thanking you for holding your session in Dar-es-Salaam and for giving me this honour to address you. I hope you will find time out of your tight schedule to explore the beauty of Dar es Salaam and hospitality of the Tanzanian people.

I wish you fruitful deliberations and a pleasant stay in Tanzania.

leooderaomolo@yahoo.com

– – –
From: Leo Odera Omolo
Date: Fri, Aug 7, 2009 at 11:25 AM
Subject: PRESIDENT JAKAYA KIKWETE OPENS THE EAST AFRICAN LEGISLAIVE ASEMBLY IN DAR

PRESS RELEASE ROUNDUOP OF 2ND EAC INVESTMENT CONFERENCE

From: Magaga Alot
Subject: PRESS RELEASE ROUNDUOP OF 2ND EAC INVESTMENT CONFERENCE
Date: Tuesday, August 4, 2009, 1:34 AM

TO ALL CORRESPONDENTS/NEWS EDITORS

Please find as attached herewith Press Release Roundup of the just concluded 2nd EAC Investment Conference that was held in Nairobi , Kenya on 28th-31st July 2009 for your kind attention and publicity as appropriate.

Thank you
Magaga Alot

Corporate Communications Expert, EAC

PRESS RELEASE

COME AND INVEST, EAC TELLS WORLD

– As the 2nd EAC Investment Conference concludes on upbeat note, President Kagame, Chair of the EAC Summit , says Conference sounds clear message of emerging, vibrant single market and investment area in East Africa –

ROUNDUP OF THE 2ND EAC INVESTMENT CONFERENCE, KENYATTA INTERNATIONAL CONFERENCE CENTRE, NAIROBI, KENYA, 29TH- 31ST JULY 2009

EAC Headquarters, Arusha, 1st August 2009: The 2nd EAC Investment Conference was held at the Kenyatta International Conference Centre in Nairobi, Kenya from 29th to 31st July 2009, under theme Invest in EAC where Challenges are Opportunities. The Conference, which was organized by the EAC Secretariat in collaboration the East African Business Council and the Investment Promotion Agencies (IPAs) of the East African Community Partner States, ended with a rallying call for a strong public private sector partnership to turn the EAC region into a new hub of global trade and investment destination of choice.

The EAC Investment Conference is an annual event held in rotation in the EAC Partner States since the inaugural one that was held in Kigali, Rwanda in June 2008. It is the premier forum for the EAC and the Partner States to promote the region as a single market and investment area.

The Opening Ceremony of the 2nd EAC Investment Conference on 28th July 2009 was attended by H.E. Paul Kagame, President of Rwanda and Chairperson of the Summit of the East African Community, H.E. Mwai Kibaki, President of Kenya, H.E. Pierre Nkurunziza, President of Burundi, H.E. Dr Amani Abeid Karume, President of Zanzibar and Chairman of the Revolutionary Council, Rt. Honourable Raila Odinga, Prime Minister of Kenya; H.E. Kalonzo Musyoka, Vice President of Kenya; Rt. Hon. Eriya Kategaya, First Deputy Prime Minister, and Minister for EAC Affairs, Uganda; and Hon. Uhuru Kenyatta, Deputy Prime Minister and Minister for Finance, Kenya. Also in attendance at the Opening Ceremony were the Ministers responsible for EAC Affairs of the five EAC Partner States and other Ministers from the EAC Partner States responsible for various areas of EAC Cooperation; Rt. Hon. Abdirahin Haithar Abdi, Speaker of the East African Legislative Assembly; Amb. Juma Mwapachu, Secretary General of the East African Community; Deputies Secretary General of the East African Community; Senior Government officials , top business leaders and other dignitaries.

The 2nd EAC Investment Conference brought together over 1,800 participants including policy makers, business leaders and the regional and international investment community to the event which reviewed the investment outlook of the EAC region, discussed investment opportunities and showcased the EAC region’s economic potentials and opportunities.

In his welcoming remarks, H E Mwai Kibaki, President of Kenya said the conference had come at a time when the region needed to address the challenges posed by the global financial crisis. Retrenchment of aid and investments threatened to erode the gains which the African economies have realized in the past. The President said it was necessary for the EAC region to strengthen investments and trade promotion noting that Africa was not attracting its fair share of investments inflows and only accounted for 3% of world trade. He said the East African Standards Law, Competition Act and Joint Negotiation Act which have been enacted by the Partner States recently were important interventions which would leverage EAC’s competitiveness in international trade. He said the harmonization of capital markets and securities had resulted in cross-listing of stocks, demonstrating that there was a great potential to raise regional capital from local savings for infrastructure projects. The promotion of large scale businesses had given rise to mergers and acquisitions in the region. However, challenges remained in the areas of infrastructure including roads, ports, rail, ICT, energy and financial resources. He stressed the need for private sector support for infrastructure development to address the sector in partnership with the governments of the region.

The Rt. Hon. Raila Odinga, Prime Minister, Kenya, noted that the holding of the conference as an annual event on a rotational basis would enhance regional integration as a way of securing synergy between governments and the private sector in promoting economic growth. He stressed the role of governments in creating e conducive environments and opportunities for the private sector to invest. He said Kenya has embraced regular roundtables between the government and the private sector which have promoted consultations and interactions leading to trade facilitation measures being pursued, including the removal of excessive police road blocks along the transit highways and the introduction of 24-hour operations at ports and borders to facilitate faster clearance of cargo.

Hon. Uhuru Kenyatta, Deputy Prime Minister and Minister for Finance, Kenya as in charge of the host Ministry for the Investment Conference gave an overview of the conference theme stating that it was well selected in view of the challenges emerging from the global economic and financial crisis, drought and climate changes which have resulted in, among others, high energy costs for the region and reduced economic growth. He said that after robust growths in the previous years, the economies of Uganda and Tanzania were expected to grow at only 5% in 2009 while Kenya would register an even lower rate of 3%. However, the growth momentum could be sustained through investment and expenditure in infrastructure and agriculture, sectors that held great stimulus for growth of the regional economy.

Hon. Monique Mukaruliza, Minister for East African Community, Rwanda and Chairperson of the EAC Council of Ministers, said the conference had come at a time when the Partner States were intensifying their efforts to widen and deepen their cooperation. Hon Mukaruliza cited the ongoing negotiations towards a Common Market as a clear manifestation of this endeavor and a reflection of the political will to create one strong regional economic bloc. She said the region needed to strengthen ties with emerging markets, notably China, India, Brazil and others in order to benefit from experiences of those countries and also exploit the huge markets for the region’s products.

Amb. Juma Mwapachu, Secretary General of the East African Community said the central focus of the conference was to transform challenges posed by both the economic meltdown and regional encumbrances to a more competitive business environment. The conference reflected growing confidence in the region’s attractiveness to investment flows from abroad as well as higher growth of the investments from regional economic players. He said the conference demonstrates the bold spirit and resolve to overcome challenges and steer the region on a robust path of growth and development. The EAC countries have good prospects to achieve GDP growth rates of 7%-10% by 2010-2015 , from the current average of 5%, he said.

The Official Opening ceremony was also addressed by H.E. Pierre Nkurunziza of Burundi, H.E. President Abeid Amani Karume of Zanzibar and Rt. Honourable Eriya Kategaya, First Deputy Prime Minister and Minister for EAC Affairs, Uganda who in their statements expressed strong support for regional integration noting that it was the way to go and the path to take towards a new era of growth and prosperity for the EAC region.

In the Keynote address to the Conference, H.E. Paul Kagame, President of Rwanda, and Chairperson of the EAC Summit, said that following the Kigali Meeting last year, the 2nd EAC Investment Conference would reinforce the shared purpose between East African public and private sectors. The President urged a spirit of moral purpose, self determination and entrepreneurship to spur initiative, foster progressive human values, make the Community stronger and negate the characterization of Africa as an aid-dependent, impoverished accessory to major trading and investing nations. EAC should position itself as part of the global system, and not its victim and actively engage in seeking solutions that leverage the region’s abilities and experiences to innovate and meet high and rising goals. The 2nd Investment Conference should critically assess the implementation of what was resolved in Kigali, and take stock of the concrete results in order to take further corrective measures. The President noted that many efforts had got underway including the movement towards establishing the East African Common Market, scheduled for January 2010 and the efforts in the development of efficient and reliable regional infrastructure. He said the Nairobi Conference should sound a loud and clear message to the world of a single, articulate common market emerging in East Africa.

CONFERENCE FOCUS AND FORMAT

The Conference focused on major areas, topical issues and sectors of growth opportunity in banking and finance, manufacturing, agriculture and agro-processing, ICT, tourism and other hospitality industries; infrastructure and energy, especially hydro, geothermal, methane and natural gas; roads and railways.

Major topics were addressed in investment environment, the challenges of the global liquidity and credit crunch, corporate finance in challenging conditions; achieving regional competitiveness, fighting counterfeits, investing in food security and exports through improved agricultural practices, and achievements of the EAC economic integration agenda.

An international exhibition of products and services was held parallel to the plenary sessions. EAC Partner States and other country delegates exhibited their products and services showcasing priority sectors. The last day of the Conference (31st July 2009) was devoted to networking opportunities.

CONFERENCE DELIBERATIONS AND RECOMMENDATIONS

Achieving Regional Competitiveness
The Conference heard strong appeals for setting up institutions and promoting policies to enhance productivity in the EAC region. These should aim at solving various problems including poverty, poor economic growth, reliance on subsistence agriculture and unemployment. The region should be able to cope with the ever changing local and international competition through removal of trade barriers and facilitation of trade and investments.

For competitiveness to be successful it has to be well coordinated and all the key players need fully cooperate with each other. Of utmost importance is the need for a viable partnership between Government and the private sector. The Conference identified the following main pillars of a competitive regional economy:

Conducive Institutional Environment, providing a framework within which the governments and private sector interact to generate wealth and income
Efficient, Reliable, Infrastructure
Macroeconomic stability, with controlled inflation, ensuring firms would make informed decisions and governments would provide efficient services
Health and primary education, a healthy workforce is vital to a region’s productivity and hence competitiveness.
Higher education and training, vital for economies that want to move up the value chain beyond simple production processes and products
Goods market efficiency, producing the right mix of products and services given supply and demand conditions
Labour market efficiency, critical for ensuring that workers are allocated to their most efficient use in the economy
Financial market sophistication, important for the functioning of national economies and are necessary for proper allocation of resources
Technological sophistication, providing the agility with which an economy adopts existing technologies to enhance productivity of its industries
Market size, affects productivity because large markets allow firms to exploit economies of scale
Business sophistication, conducive to higher efficiency in the production of goods and services
Innovation, Technological innovation is particularly important for economies as they approach frontiers of knowledge.
Avoiding complacence, noting that even with a fair level of competitiveness, it is nevertheless important to avoid complacency which can result in running the risk of being overtaken by others.

Fighting Counterfeits within the EAC Region
The Conference heard presentations on the problem and serious effects of counterfeits and piracy on the regional economies and international trade. It noted that counterfeits account for US$ 630 billion annually around the world, in the form of lost revenues to companies producing genuine products, and when added to lost tax revenues to governments, the figure almost doubles. In the EAC region, about US$ 0.5 billion is lost annually in unpaid tax.

The effects of counterfeit products not only affected revenues but also the well being of whole populations. For example, use of counterfeit electrical conductors and cables which catch fire, fertilizers which could result in total loss of crops, batteries which explode or leak, personal care products which can cause skin and mouth irritation as well as food products and medicine which have exposed EAC populations to great health risks. Of major concern was that 30% of pharmaceutical products in the region were fake products with some having actually expired. The existence of counterfeits hurt entrepreneurs the most because their products were sold alongside the cheap counterfeits to the detriment of their sales figures.

The issues of counterfeits would not be effectively tackled nationally for a variety of reasons, including outdated, non-existent or inadequate national laws and lack of capacity of individual governments to cope with detailed investigations required to mount a prosecution (as exemplified in the music and film industries). Therefore, there was need to have a common legislation (preferably regional) to tackle the issues which were normally cross-border in nature. In cognizance of this requirement, the EAC with support of the Investment Climate Facility (IFC) has reached an advanced stage in finalizing a policy tool defines the nature of the problem as well as developing a legislation that would effectively deal with the problem. It is expected that the legislation should be ready for tabling before the East African Legislative Assembly in November this year.

Investing in Food Security and Agriculture Development
The Conference discussed the key thematic areas on Food Security situation in the EAC region; factors prohibiting food security in the region; government; policies investment opportunities in agricultural sector; and marketing destinations for agricultural exports.

The Conference noted that while agriculture remains the backbone of the region’s economy and contributes largely to employment levels and exports, EAC region remains food insecure, despite availability of sufficient arable land and a large labour force. Among the factors inhibiting food security in the region were climate change – frequent dry spells, unpredictable rainfall patterns and floods; reduced soil fertility and soil erosion; land ownership structure – prevents production on large scale; lack of sufficient incentive mechanism for agricultural production – limited access to credit, high cost of inputs, slow infrastructure development; Inadequate capacity building along the value chain; and low uptake of technology, research and development in promotion of agricultural production.

The Conference noted that the EAC Partner States were addressing the challenges in the agricultural sector through, among others, putting in place policies to improve water harnessing and management – irrigation schemes and dams expansion of credit provision to the agricultural sector; land reforms to address the current challenges in land use and ownership; and development of food and nutritional policies, agricultural development strategies and clearly outlined plans of action.

The Conference noted that opportunities were available through development of value chains along the agricultural sector; value addition and product diversification – production of semi finished and finished products for exports – food processing, dairy processing etc; Infrastructure development to open up the hinterland to the markets; power generation; Importation and distribution of fertilizer and other farm inputs – Plans for manufacturing of the same within the EAC countries are underway; Trade in agricultural commodities Tourism opportunities – aquaculture parks and sport fishing.

The Conference concluded that the food security situation in the EAC region is serious and needs collective action to address it appropriately. It is important for countries to invest in value addition processes for all agricultural exports so as to increase quality, gain a competitive edge and generate more revenues out of increased sales and competitiveness.

The Conference recommended that, towards attaining food security in the region there is need for the EAC Partner States to encourage partnerships and harmonization of agricultural policies – through production and commercialization; establish appropriate mechanisms and incentives to encourage private sector participation in food production; enhance surveillance for food and animal diseases in the region; Development of the “last-mile infrastructure”. This would enhance delivery of inputs to the actual user and catalyze the production process; Establishment of centers of excellence for conservation and transformation of agricultural products; and investment in research and development to address disease and other factors affecting crop and animal production.

Investments in ICT and Business Process Outsourcing (BPO) in the EAC
The Conference heard presentations by the Partner States on the aspect of BPO development in the development in the respective countries; policy, legal and regulatory environment; infrastructure; capacity building; and promotion of ICT as a key investment opportunity.

The Conference noted that the governments need to do more in providing a better enabling environment for ICT investments through policies and legal and regulatory framework. It emerged that not much is known about the impact of the national and submarine cable networks being rolled out.

The landing of two fibre optic cables and expected arrival of two others has created a number of challenges, particularly with regard to training/local content development as well as promoting investment in the sector to utilize available bandwidth. There is need to clarify when and how the effects of the landed submarine cable network would be felt by the consumer in terms of cost reduction and better services.

The Conference recommended that national fibre networks being rolled out by the governments should be open to the private sector. Governments should ensure to be key consumers of BPO services to stimulate the development of BPO. The conference further noted that linkage between ICT and economic growth has been demonstrated in such economies as Silicon Valley (California) and Finland. The same may be replicated in the EAC. Capacity development including incorporation of ICT curriculum in the primary educational system and tertiary ICT education should be regulated. Development of incentives targeting local entrepreneurs in software development and software maintenance e.g. preferential treatment in Govt. ICT projects should be encouraged. There is need to promote incentives for BPOs outside major urban areas so as to reduce rural-urban migration.

Investing in Alternative Sources of Energy
The conference noted that each of the EAC Partner States has strength in energy generation resources as follows:
Rwanda – methane gas
Kenya – geothermal
Uganda – hydro
Tanzania – gas
Burundi – hydro and peat

The Conference noted that each of the countries has shortages of power; however, they are not interconnected. There is need to interconnect immediately to enable power sharing and complementarities in the region. Existence of interconnections could stimulate development of large generation projects beyond the capacity of an individual Partner State.

The Conference further noted that the all the countries rely on biomass 85-90%; which is destructive to the environment if development of other forms of energy is not accelerated. Reliance on resources from the development partners has contributed to slow development of energy sector projects. The EAC Partner States should give priority to development of energy projects and allocate significant local resources for them.

Over-dependence on hydropower generation, has contributed to power shortages experienced in the region. All the EAC Partner States are making efforts to diversify from hydro generation. However, hydropower generation will continue to be an important resource in the region’s generation mix.

Each country has strength in electricity generation resources. These resources should be developed in a complementary manner for the benefit of the Region. Solar and Wind are emerging as important energy resources in the region that should promoted.

EAC Partner States should diversify the generation mix to reduce over-dependence on hydro generation. Private sector should take advantage of the low access levels, existing opportunities in mini hydro, wind and solar energy to invest in the Region.
MAIN RECOMMENDATIONS OF THE CONFERENCE

Fighting Counterfeits in EAC
There is need to have a common legislation (preferably regional) to tackle the issues which are cross-border in nature. The adoption of regional policies and laws should be supported at the highest political level, the Summit of Heads of State, in order that their implementation is fast-tracked for the sake of the regional economy. The East African Legislative Assembly should have a big responsibility in this regard of enacting the necessary legislation.

Food Security and Improved Agricultural Practices
Towards attaining food security in the region there is need for the Partner States to encourage partnerships and harmonization of agricultural policies – through production and commercialization. Appropriate mechanisms and incentives should be put in place to encourage private sector participation in food production. It is necessary to enhance surveillance for food and animal diseases in the region. These enhancement measures should target delivery of inputs to the actual user and catalyses the production process. Centers of excellence should be established for conservation and transformation of agricultural products; and investment in research and development to address disease and other factors affecting crop and animal production.

Investment in ICT
National fibre networks being rolled out by the governments should be open to the private sector. Governments should be encouraged to be key consumers of BPO services to stimulate the development of BPO. Governments should support incubator centers for software development. Capacity development – ICT curriculum should be incorporated earlier in the educational system and Tertiary ICT education. Need to develop incentives for BPOs outside major urban areas so as to reduce rural-urban migration.

Investing in alternative sources of Energy
EAC Partner States should diversify the generation mix to reduce over dependence on hydro generation. The EAC Partner States should allocate significant local resources towards the development of energy projects and reduce reliance on development partners for the development of their energy expansion programmes. These energy resources in the region should be developed in a complementary manner for the benefit of the entire Region. Private Sector should take advantage of the low access levels, existing opportunities in mini hydro, wind and solar energy to invest in the Region. The EAC Partner States should work towards full interconnection of their transmission networks.

Experience of doing business in the EAC
The challenge of counterfeiting and pirating of goods should be addressed at the regional and national level. The governments should partner with the private sector in the fight of this menace. The laws being developed by EAC should spell out severe punitive measures against the offenders and Partner States should comply and adhere to the anti-counterfeiting and anti-piracy policy and law once adopted. Partner States should act decisively against corruption. Exposure of corrupt officials and prompt action against the perpetrators is an effective way of fighting the vice. Rwanda has applied such measures which have ensured strict discipline and Partner States should draw lessons and apply such measures.

Discriminatory treatment of Burundi nationals when entering Tanzania should be addressed particularly requirement of visas and yellow cards. Secretary General should follow up on such matters with the EAC Ministries. Transmittal of policy decisions made in Arusha to the border stations and other operational areas for implementation should be enhanced in order to make the Customs Union and Common Market a reality. The Ministries of EAC should ensure all policy decisions are cascaded to the lowest level of implementation in Partner States.

Development and establishment of an EAC Stock Exchange is a positive step which should be expedited to promote capital flows among the Partner State. Tanzania should be urged to liberalize the capital account in order to enable its national participate in the stock markets of other Partner States.

The monopoly contract of the Dry port in Tororo in Uganda is contrary to the policy of trade liberalization and against the spirit of free movement of goods in the region which should be reviewed. Transit licensing of trucks in the Partner states is being addressed through an amendment of the EAC Customs Management Act due for enactment in a week’s time by EALA.

Extractive Industries
Access to affordable finance should be made easier for the medium sized players. Infrastructure (especially roads and rail) to mining areas should be developed. Squatters – and the related compensation costs should be given priority prior to any major investment. Lack of local skilled manpower (especially Oil exploitation) should be addressed through investment in centres of excellence. Tax holiday for value added exporters should be encouraged in the region. The region must embrace transparent public procurement procedures with international bidding. Import duty exemptions on mining equipment should be legislated in.

Tourism
Establishment of Conference and Convention Centres in the business cities like Kigali, Arusha, Jinja, Mombasa, Bujumbura, Dar-es Salaam etc. Investment in Amusement Parks should be encouraged. Establishment of Specialized Modern Colleges for Hotels and Tourism Management. Investment in historical museum to preserve historical values of east Africa. Development of three to five star hotels to accommodate business persons and Tourists visiting commercial cities within East Africa, e.g. Mombasa, Kampala, Nairobi, Dar es Salaam, Kigali, Bujumbura, and Zanzibar. Establishment of specialized cuisine restaurants to serve Thai, Chinese, French, Japanese, Tanzanian foods etc.

Infrastructure
Governments in the region supported by the development partners should mobilize sufficient resources to rapidly develop to bankable pipeline of regional infrastructure projects in particular targeting roads, railways and energy sub sectors. The Community should take the lead in the development of a regional framework to support the establishment of an EAC infrastructure development fund and an effective public private partnership strategy.

The matter of regional licensing for infrastructure service providers should be incorporated within the provisions of the Common Market Protocol to ensure that EAC benefits from capacities available in the region for expansion of and access to infrastructure. The ongoing harmonization of policies in the infrastructure sub sectors should be fast tracked and governments should ensure the implementation of these harmonized policies at national levels are expedited.

Governance issues, including corruption, weak project management, and institutional arrangements in the infrastructure sub sectors must be addressed in order for the countries to be able to attract long term capital for infrastructure development. Governments must ensure that impacts on environment and social disruptions during expansion and development of infrastructure must be kept at a minimum and must be addressed during project design and implementation planning covering mitigation plans, resettlement, designs, supervision, among others; and Governments must urgently address the weak infrastructure maintenance and rehabilitation programming and infrastructure utilisation oversight strategies to ensure that infrastructure facilities survive up to their design life.

Impact of Climate Change on Investment
Measures allowing for adaptation and mitigation of climate change. Other recommended actions are: Set up an Investment Promotion Agency (Burundi). Adopt strategies for access to international financial mechanism. Development of legal and regulatory framework to address climate change. Take into account the climate change in all investment schemes. Adopt regional and national resources protection (CDM and REDD Programs). Take into account the climate change while developing economic policies. Strengthen regional cooperation and cross border approaches. Develop common positions in international negotiations; and t track and finalize the implementation of the master plan and other ongoing strategies to address the problem of climate change and investment within the EAC region.

Challenges of the Global Economic Meltdown on EAC
Partnerships – governments should make resources available – from local and international sources. Domestic resource mobilization strategies – support production e.g. infrastructure bond. Strengthen institutions and capacity of those institutions – coordinated framework across regulators. Stay the path of reforms – build capacity for future growth – development budget should not be cut. Aid delivery modalities in times of crisis – quick disbursements to allow countries to ride over shocks quickly. Look at reform of the global financial architecture. Need for concerted policy statements and actions on a regional level. Value addition. Promotion of trade and investment within EAC. Promotion of regional and domestic tourism. Financial supervisory skills and regular reports. Sustained macro-economic stability and management.

2nd EAC INVESTMENT CONFERENCE: BACKGROUND

The 2nd EAC Investment Conference followed the first one which was held in Kigali, Rwanda in June 2008. It was at the Kigali Conference that the EAC Investment Conference was launched as an annual event to be held on rotation in the EAC capitals. The inaugural event was itself very successful. The Kigali Conference was attended by all the five EAC Heads of State. It brought together over 1200 participants from the region and the international community. It attracted 15 countries from outside the region. A lot of business was transacted during the conference and important business contacts were made. Reports from the national IPAs indicate that a sizeable number of projects have been registered arising from the 1st EAC Investment Conference.

The 2nd EAC Investment Conference was therefore held against the favourable background of the encouraging success and achievement of the inaugural Conference. It incorporated improvements in organization and levels of participation and impact.

State of play in investments promotion in the EAC Region
The EAC Partner States have established statutory agencies that promote and facilitate investments in the region. The agencies are Investment Authority (KenInvest), Tanzania Investment Centre (TIC), Zanzibar Investment Promotion Authority (ZIPA), Uganda Investment Authority (UIA), and the Rwanda Development Board (RDB). In Burundi, investment activities are coordinated by the National Investment Commission under the Ministry of Planning. Currently, Burundi is in the process of establishing an Investment Promotion Agency which is expected to be operational in 2009. These investment promotion agencies (IPAs) were established by respective Acts of Parliament in each Partner State and follow similar basic requirements for promotion of investments.

The role of the IPAs is to promote and facilitate investment activities. Facilitation is carried out by providing a set of incentives as provided for in the countries’ respective investment codes. The incentives provided range from waiver of customs duties and VAT on imported capital goods related to the submitted investment proposals, the facilitation for obtaining of administrative formalities to corporate taxes reduction.

Since the re-launching of the EAC in 1999 and the setting up of the EAC Secretariat, harmonization of investment policies, incentives and laws of the Partner States has been going on under the auspices of the EAC Secretariat. Some aspects have been harmonized and include investment approval requirements, export processing zones and free zones regulations, corporation tax and other incentives.

However, there still exist some variations on the minimum capital threshold requirement among the Partner States. For instance, in Kenya, the minimum threshold is US$100,000 for foreign investors and US$12,800 for domestic investor. For Tanzania the minimum threshold is US$300,000 for foreign investors and US$100,000 for domestic investors; while in Uganda the minimum threshold is US$100,000 for foreign investors and US$50,000 for domestic investors.

On the other hand, Zanzibar maintains a different approach that focuses on sectoral thresholds for investment capital per project. For example, investment in hotels requires a minimum of capital US$4 million for foreign investors and US$300,000 for local investors. In Rwanda, the minimum threshold for foreign investors is US$250,000 while for local and COMESA investors it is US$100,000. These and other variations related to offered incentives are being identified and further harmonized to bring about a more favourable investment climate in the EAC region.

Since 2001, most EAC countries have established and implemented the One Stop Centre concept which consists of providing almost all needed facilitation under one roof. The One Stop Shop Concept is an investment facilitation strategy where relevant government agencies are brought to one location, coordinated and streamlined to provide prompt, efficient and transparent services to investors. It is aimed at simplifying and shortening of procedures and guidelines for issuance of business approvals, permits and authorizations thereby removing bottlenecks faced by investors in establishing and running businesses. The One Stop Shop concept is based on four principles namely: Convenience, Efficiency, Simplicity, Speed and Transparency.

The type of services offered under One Stop Shop include: business incorporation and registration; instant granting of approvals in principles, permits and licenses; provision of investment information. The One Stop Shop concept is good for both the investor and the government in that it:

? Substantially reduces the cost of doing business.

? Ensures that FDI, DDI are properly tracked.

? Ensures close and professional working relationship among
government agencies to meet the needs of investors.

? Triggers and fast tracks public sector reform which would
ultimately result in structurally more attractive investment
environment.

Global Context
The 2nd EAC Investment Conference also came at a time when the global economy is undergoing a major downturn. Giants of the business world are going into recession and turning to governments for bailouts or stimulus packages. In the face of these challenges, the EAC is maintaining a strategic posture towards stronger political and economic business environments to weather the storm. The EAC countries remain on a rapid growth path and, with a number of other African countries, are in the middle of the strongest economic recovery in the past 40 years.

The IMF predicts an overall 1.3% decline in global economic activity in 2010 particularly of the economies of the industrialized countries, while some of the EAC countries, and a number of African countries are projected to grow by between 5% and 7%. It is indeed a rare moment as they come in global development trends, however into the scenario, the EAC is determined to stake a claim and foster a strong economy and competitive business environment.

EAC is buoyed by the great interest and positive appreciation it is attracting among an international trade and investment community that is turning to East Africa where they perceive that a new, vibrant investments and trade platform is emerging. In August 2006, just over one year after the launch of the EAC Customs Union in January 2005, the EU delegation at the WTO meeting in Geneva declared that the EAC was “the most successful illustration of regional integration on the African continent”.

DIRECTORATE OF CORPORATE COMMUNICATIONS
EAC SECRETARIAT
ARUSHA
AUGUST 2009

EAC SPECIAL FEATURE FOR BUDGET AND COMMON MARKET

EAC BUDGET FOR FY 2009/2010 COMES AT RISING MOMENT OF EA INTEGRATION AND ESTABLISHMENT OF THE COMMON MARKET

EAC Special Feature By Leo Odera Omolo

The EAC Budget for Financial Year 2009/2010 which was presented to the East African Legislative Assembly at its sitting in Bujumbura on 21 May 2009 came at a significant moment when the EAC is marking the 10th Anniversary of its establishment in 1999.

Unlike its predecessor, the first EAC (1967-1977), which had collapsed in its tenth year, the present Community is arriving at its tenth year in a resurgent and celebratory mood. It boasts a combined GDP that has risen to $ 51 billion, up from $ 20 billion in 1999; and a membership that has expanded from the original three members, Kenya Uganda and Tanzania, to the current five that includes Rwanda and Burundi which joined in 2007.

Among the feel good factors that buoyed the presentation of the record $ 54.3 million EAC Budget, under the theme, Strategic Priorities to deepen EAC integration, towards Common Market and Monetary Union, is the good progress of the Customs Union. In its fifth year of operation, since its establishment in 2005, the EAC Customs Union is approaching its maturity. The Customs Union’s 5-year phase down to zero tariff and full fledged Customs Union by 2010 is today on course in tandem with preparations towards the establishment of the EAC Common Market.

Following a directive of the EAC Heads of State, the Partner States are putting emphasis on regional infrastructure development and joint promotion of investments and trade. The Budget presentation could not have come at a time when the regional organization was in better shape.

For a large part of its ten years of existence, EAC had agonized over the need to have its available resources matched with its prescribed lofty ideals and objectives. This moment came in May 2008 during the presentation and debate of the EAC Budget for Financial Year 2008/2009 at the EALA budget sitting in Nairobi in May 2008. The EAC Budget for Financial Year 2008/2009 rose to the $ 40 million mark, up from $ 28.3 million of the previous Financial Year. With that dramatic leap of resource allocation, the EAC was launched on a new trajectory of growth and development.

When presenting the EAC Budget for FY 2009/2010, the Chairperson of the EAC Council of Ministers, Rwanda’s Minister for East African Community, Ms Monique Mukaruliza, was emphatic in observing that the EAC has advanced and internalized a results-based performance and management system, supported by an elaborate Monitoring and Evaluation system. She proceeded to present a Budget performance and projections that was crisp and clear on linkages between strategic organizational objectives, resources and outcomes.

The EAC Budget 2009/2010 marks a watershed of the EAC integration process between the past, (first) decade (1999-2009), of mainly laying the foundation ; and the next, (second) decade, (2010-2020) of focus on concretizing the Community and delivering tangible benefits of regional integration.

The Budget is reassuring on many achievements that the EAC has made during the Financial Year 2008/2009 in the priority areas that were identified, including consolidating the Customs Union; Common Market negotiations; laying the ground work for the Monetary Union; programmes of infrastructure development; and promotion of investments, trade and industrial development.

The Budget is reassuring not only on the progress of the EAC Customs Union but also the advanced stage reached in the negotiation of the EAC Common Market Protocol. The large body of the proposed Common Market Protocol has been agreed. The pending issues now relate to land, use of identity cards; and the right of establishment and permanent residency. The EAC Summit has directed that the pending issues be resolved in time for the Protocol to be ready for signing in November 2009.

Minister Mukaruliza’s report card reflects high scores in the area of EAC investments and trade promotion. Working closely with the East African Business Council, EAC has covered large ground in addressing the critical issue of non-tariff barriers under the ongoing consultations on capacity building and development of mechanisms on non-tariff barriers; and the operationalization in February 2009 of the EAC Competition Act 2006.

The enactment of the EAC Trade Negotiations Act in 2008 was a major breakthrough in the longstanding search for the EAC Partner States’ commitment to negotiate as a bloc in the multilateral trade fora. The EAC’s frontline participation in the Tripartite EAC-COMESA-SADC Arrangement which culminated in the hosting of the first Tripartite Summit in Kampala in October 2008 also earned the EAC many marks. Following the decisions of the Tripartite Summit, the three regional economic communities are already working on the modalities for the establishment of the enlarged Free Trade Area.

The process towards the establishment of Monetary Union and single currency for the EAC region is similarly on course. There is every indication that the process towards EAC single currency and Monetary Union is on course by the appointed date of 2012.

From the Minister’s Budget, one discerns that the focus of the EAC in the period ahead will be essentially two-pronged; on the development of regional infrastructure; and promotion of investments and trade. The first shots in this concretization phase of the Community have been fired with the commencement of the construction of Arusha – Namanga – Athi River road, linking Tanzania and Kenya which is now due for completion in 2011.

The Minister’s budget speech gave indication that new urgency will be placed on sorting out the problems that beset the regional railways network. The railway network is in bad shape despite the concessioning, some two years ago, of the Kenya-Uganda Railways to Rift Valley Railways and the central railway line on Tanzania to RITES of India. On a positive note, an East African Railways Investors’ Conference is planned towards the end of this year to give a push start to the East African Railways Master Plan that seeks to upgrade (and extend) the entire East African railway network.

The Minister, however, held out good prospects for the development of civil aviation following the ratification of the Protocol for the establishment of the EAC Civil Aviation Safety and Security Oversight Agency (CASSOA). This has set the stage for operationalization of CASSOA. Similarly, in the communications sub-sector, concrete achievements could be expected in the medium term when the East African Marine System (TEAMS) and the East African Sub Marine Cable System (EASSy), both projects which are private sector-led, are rolled out in 2009 and 2010, respectively.

Developments under the East African Power Master Plan are also giving positive signs. Energy development and interconnection projects are at various stages of implementation on the ground following the commissioning of the Namanga Cross- border (Kenya-Tanzania) Electrification Project on 28 April 2009. The 4th East African Petroleum Conference on Petroleum Potential and Investment Opportunities was held in Mombasa in March this year and gave further boost to the ongoing oil and gas exploration and development in the region.

Minister Mukaruliza’s budget also gave hints of new areas of priority and emphasis in the period ahead. These include emphasis on Agriculture and Food Security which will involve the launching of the EAC agricultural and rural development strategies and programmes. Emphasis will be placed on addressing food security in the region and also take into account promotion of sustainable utilization and management of natural resources with addressing, as well, the new emerging issues of global climate change.

With regard to the Lake Victoria Development Programme, the Lake Victoria Basin Commission (LVBC) has launched the implementation of its Operational Strategy (2007-2010) around its three key pillars, namely unlocking the vast potentials in the Lake Victoria Basin by maximizing the utilization of natural resources; reduction of poverty and improvement in the quality of life; and environmental sustainability. Lake Victoria is the single most important shared resource of the EAC with a potential gross domestic product in the order $ 5 billion that presents great prospects for growth and development in the region.

The budget is strategic and focused on the emphasis that will be placed on co-operation in the social sectors and political affairs. The Minister made a bold statement that, “the ultimate goal of regional integration is human development. Apart from the practical orientation in pursuing economic growth of our region, we need to develop a conducive environment in which the people of our region would enjoy greater prosperity in greater freedom, liberty and security. This calls for the need to pay closer attention to the aspects of Political co-operation inasmuch as we should do on the Economic and Social co-operation aspects that we are pursuing”.

Finally, the Minister announced that preparations are ongoing for the Observance of the 10th Anniversary of the November 1999 signing of the EAC Treaty. Among the activities of the observance will be the preparation of EAC Vision 2020 that will provide an opportunity for the EAC to set clear integration goals as it launches into the next ten years. Related to this, the EAC Budget has provided for further organizational restructuring, including review of some provisions of the EAC Treaty with a view to making the EAC, as the Minister said, “confident enough, competent enough and decisive enough” to implement regional projects and programmes.

Ends

Leooderaomoloyahoo.com
– – –
Date: Thu, 11 Jun 2009 08:35:40 -0700 (PDT)
From: Leo Odera Omolo
Subject: EAC SPECIAL FEATURE FOR BUDGET AND COMMON MARKET

THE SIGNING OF THE EAST AFRICAN TREATY ON COMMON MARKET PROTOCOL DEFERRED AFTER DISAGREEMENT ON THREE KEY ISSUES.

News Analysis By Leo Odera Omolo

The summit of the heads of stat of the East African Community members states held in the northern Tanzanian town of Arushafailed to see through the signing of theommon arket Protocol and the regional integration process.

The thre contentiouis issues, which prevented the signing of the protocol for the second time include;access to land, thew right of establishment and permanent residence and the use of the nationmal identity cards as the official tavel documents.

Sharp differences had emerged pitting Kenya, Uganda, Rwanda and Burundi on one hand , and Tanzania on the other, overe the three key provisions of the Common Market Protocol.

The Arusha Summit which was held on April 29 had directed that the pending issues in the Common Market protocol be agreed on as soon as possible so that thr pact can be signed in November.

According to the integration process calendar, the Common Market, which is the second phase of regional integration after the Customs Union,will come into force by January next year.

However,the signing of the ommon arket protocol has had to be postponed twice due to delays in negotiation,. Initially, the signing was originally planned for November last year.This was later pushed to last month {April 2009}, which also never materialised.

At the end of the heads of state summit in Arusha last month,the Secretary General,Ambassador Juma Mwapachu,alluded to the community’s possible application of variable geometry.”if there is no consensus on the other pending issues by November,chances are high that the EAC secretariat might invoke the variable geometry principle, leading to the signing of the porootocol,”he added.

But legal experts, led by tyhe East African Law Society, have wqarned that such flexibility, which is mainly used as apolitical tool, should be applied with great care so that, it does not end up being counter-productive.

Earlier the East African Court of Justice has delivered judgement saying that there is nothing wrong with some member countries moving faster than others on regional integration.

This means that the EAC Common Market might come into force much earlier than anticipated, without “pending issues” necessarily being resolved first.

In a ruling on application by the East African Community’s Council of Ministers through the Community’s counsel, the First Instance Division of the Council said such flexibility is coinsistent with the Treaty on the establishment of the EAC.

The Council comprises member countrry Ministers iuncharge of the East African Affdairs from Kenya, Rwanda,Tanzania,Uganda and Burundi.

It had formerly sought the court’s opinion on whether the operational princpole of variable geometry, which is provided for in the Treaty on the Establishment of the EAC, countries the requirement that decision of the EAC organs should be by consensus.

Variable geometry is a principle in regional integration whereby some community members can move faster than other on some matters.

Inb an opinion delivered the principal judge of the First instance Division,Justice Johnsoin Busengye of Rwanda,the East African Coiurt of Justice said the operational principle of variable geometry is in harmony with the requirement of consensus in decision making.

The court also said the princple of variable geometry can guide the regional integration process, the requirement of coinsensus in decision making noitwith standing.

The court said in part,”consensus is simply a decision-making mechanism, whilke variable geometry is a strategy for implementation.”

They, however, warned ther partner states thsat variable geometry should be the exception rather thsan the rule.

The court’s ruling come at a time when there are differences, between Kenya, Uganda,Rwanda and Burundi on one hand, and Tanzania on the other, over three key provisions of the Common Market protocol.

These are access to land, the right of establishment and permanent residence and the use of the nationmal identity cards as travel documents withiun the EAC member states.

ends
leooderaomolo@yahoo.com

– – –
Date: Fri, 15 May 2009 07:20:36 -0700 [05/15/2009 09:20:36 AM CDT]
From: Leo Odera Omolo
Subject: News Analysis By Leo Odera Omolo

The summit of the heads of stat of the East African Community members states held in the northern Tanzanian town of Arushafailed to see through the signing of theommon arket Protocol and the regional integration process.

The thre contentiouis issues, which prevented the signing of the protocol for the second time include;access to land, thew right of establishment and permanent residence and the use of the nationmal identity cards as the official tavel documents.

Sharp differences had emerged pitting Kenya, Uganda, Rwanda and Burundi on one hand , and Tanzania on the other, overe the three key provisions of the Common Market Protocol.

The Arusha Summit which was held on April 29 had directed that the pending issues in the Common Market protocol be agreed on as soon as possible so that thr pact can be signed in November.

According to the integration process calendar, the Common Market, which is the second phase of regional integration after the Customs Union,will come into force by January next year.

However,the signing of the ommon arket protocol has had to be postponed twice due to delays in negotiation,. Initially, the signing was originally planned for November last year.This was later pushed to last month {April 2009}, which also never materialised.

At the end of the heads of state summit in Arusha last month,the Secretary General,Ambassador Juma Mwapachu,alluded to the community’s possible application of variable geometry.”if there is no consensus on the other pending issues by November,chances are high that the EAC secretariat might invoke the variable geometry principle, leading to the signing of the porootocol,”he added.

But legal experts, led by tyhe East African Law Society, have wqarned that such flexibility, which is mainly used as apolitical tool, should be applied with great care so that, it does not end up being counter-productive.

Earlier the East African Court of Justice has delivered judgement saying that there is nothing wrong with some member countries moving faster than others on regional integration.

This means that the EAC Common Market might come into force much earlier than anticipated, without “pending issues” necessarily being resolved first.

In a ruling on application by the East African Community’s Council of Ministers through the Community’s counsel, the First Instance Division of the Council said such flexibility is coinsistent with the Treaty on the establishment of the EAC.

The Council comprises member countrry Ministers iuncharge of the East African Affdairs from Kenya, Rwanda,Tanzania,Uganda and Burundi.

It had formerly sought the court’s opinion on whether the operational princpole of variable geometry, which is provided for in the Treaty on the Establishment of the EAC, countries the requirement that decision of the EAC organs should be by consensus.

Variable geometry is a principle in regional integration whereby some community members can move faster than other on some matters.

Inb an opinion delivered the principal judge of the First instance Division,Justice Johnsoin Busengye of Rwanda,the East African Coiurt of Justice said the operational principle of variable geometry is in harmony with the requirement of consensus in decision making.

The court also said the princple of variable geometry can guide the regional integration process, the requirement of coinsensus in decision making noitwith standing.

The court said in part,”consensus is simply a decision-making mechanism, whilke variable geometry is a strategy for implementation.”

They, however, warned ther partner states thsat variable geometry should be the exception rather thsan the rule.

The court’s ruling come at a time when there are differences, between Kenya, Uganda,Rwanda and Burundi on one hand, and Tanzania on the other, over three key provisions of the Common Market protocol.

These are access to land, the right of establishment and permanent residence and the use of the nationmal identity cards as travel documents withiun the EAC member states.

ends
leooderaomolo@yahoo.com
.
– – –
Date: Fri, 15 May 2009 07:20:36 -0700 [05/15/2009 09:20:36 AM CDT]
From: Leo Odera Omolo
Subject: THE SIGNING OF THE EAST AFRICAN TREATY ON COMMON MARKET PROTOCOL DEFERRED AFTER DISAGREEMENT ON THREE KEY ISSUES.

Fw: RE: CONDOLENCE MESSAGE TO H.E. JAKAYA KIKWETE ON THE DAR BOMB EXPLOSIONS

Date: Mon, 4 May 2009 09:58:12 -0700 [11:58:12 AM CDT]
From: Leo Odera Omolo
Subject: Fw: RE: CONDOLENCE MESSAGE TO H.E. JAKAYA KIKWETE ON THE DAR BOMB EXPLOSIONS

— On Sun, 5/3/09, Magaga Alot <> wrote:

From: Magaga Alot
Subject: RE: CONDOLENCE MESSAGE TO H.E. JAKAYA KIKWETE ON THE DAR BOMB EXPLOSIONS
Date: Sunday, May 3, 2009, 2:58 AM
Subject: CONDOLENCE MESSAGE TO H.E. PRESIDENT JAKAYA KIKWETE ON THE DAR ES SALAAM BOMB EXPLOSIONS

Please find as attached herewith Condolence Message
by the EAC Secretary General to H.E. President Jakaya Kikwete
on the Bomb explosions in Dar es

Magaga
Alot

Corporate
Communications Expert, EAC

read or d/l document
CONDOLENCES – (1) DAR BOMB EXPLOSIONS 010509.doc [application/msword] 269 KB

EAST AFRICAN COMMUNITY NOW MOVES AHEAD TO IMPROVE TRADE AMONG MEMBERS COUNTRIES

Report by Leo Odera Omolo

Last week events at the East African community meeting in the Ugandan capital ,Kampala show that Uganda was willing to propose a comprise that allows partner states to continue applying national cases over land issues rights so that the issue does not bring down progress in the integration agenda.

The minister also had to field common ground on the other theory issues such as safeguard measures and subject of trade imbalance.

The EAC’s Deputy Secretary General Julius Onen, who is in charge of Special Programme and Projects, says that the bloc can handle these practically considering that the region was a beneficiary of USD 102.2 million compensation Fund under the 9th European Development Fund to steady the operationalisation of the common market for East and Southern Africa’s Free Trade Area and the EAC customs union.

However, no country has so far accessed their funds because no partner states has provided proof of any negative impact on their economies in event that any EAC partner states suffered shocks due to the common market, the secretariat can call in such compensation measures.
.
But more significantly ,The Kampala meeting agreed on a road map that will put in place the required instruments as the region moves to establish free movement of factors of production by January next year.

The council of Ministers also agreed on all the fair freedoms – movement of
Goods, persons and capital, as well as aspects of the right to establishment and residence

The adopted roadman as the date by which implementation instruments must be in place a though it deters others to December 2010 and 2011.

Critical instruments on free movement of goods and persons sections under free
movement of labour and right of establishment free movement of services, capital and even safeguard measures are among those that must be in place by October this year.
.
Disagreement aside the common market protocol concludes the second stage of east Africa’s integration process after the customs union that was launched in 2005 in its pioneer partner states Kenya, Tanzania and Uganda..
.
The regional bloc has since opened up to include Rwanda and Burundi admitted in 2007 to create a single market of 120 million people across the region..

While the customs union allows the region to trade easily ,it is arranged that a common market protocol is the single document for the people of East Africa since it would ideally grant access the right to hand ,to residence and employment any where within the bloc one dynamic market.
.
“Our people have been moving, residing and marrying freely across the borders .We should not allow legal niceties contradictions to deter us from the aspirations of the ordinary East Africans who are looking forward to an easier and freedom as citizens of the community.”
After the common market the next stage of integration is the monetary union and finally a political federation by 2013.

It remains to be seen though whether disagreements in these early phases would set the stage for a full political concern or ruin it

Ends
leooderaomolo@yahoo.com

– – –
Date: Wed, 15 Apr 2009 05:03:04 -0700 [04/15/2009 07:03:04 AM CDT]
From: Leo Odera Omolo
Subject: EAST AFRICAN COMMUNITY NOW MOVES AHEAD TO IMPROVE TRADE AMONG MEMBERS COUNTRIES

INTRAREGIONAL TRADE AMONG THE EAST AFRICAN COMMUNITY COUNTRIES UP BY SIX PER CENT IN 2007 ON A PROMISING NOTE TO FURTHER UPWARD TREND.

Regional Economic News By Leo Odera Omolo
DESPITE of petty squabbles her and there on some issues which looked rather trivial, trade between East African Community’s five member countries is steadily increasing paving the way for quicker formation of a common market.
According to statistics recently released by the Arusha based EAC secretariat show that the region proposal of investment and job creation is projected to increase.
Overall, the EAC recorded an average of real growth of 6.8 per cent in 2007 and an average per capita income of USD 424.
Kenya which is the economic powerhouse of the region registered USD 725.5,Uganda USD 473,Tanzania USD 440,Rwanda USD 365 and Burundi USD 119.
Total growth for the region was USD 491 million in 2007, compared with USD 52,328 million in 2006.The figures for the year 2008 are yet to be made public.
The average annual underlying inflation rate increased to 7.6 per cent in 2007, from 5.4 per cent in 2006.The highest increase was in food prices. On average EAC’s fiscal deficit, excluding grants, as a ration of GDP, rose from 9.4 per cent in 2006 to 11.1 per cent in 2007.
These figures are likely to drop to subsequent years because of the on-going global economic recssi0on.
In 2003,tourism grew an average 12.5 per cent down from 13 per cent in 2006.Coffee production in the region has been on the decline since 2003, while tea production has risen tremendously.
In 2003-2007, there was a decline in hydropower generation as a proportion of total generation.
The decline has been offset by a gradual rise in thermal power generation in the region, while investment in mineral exploration declined from USD 72 million in 2005 to USD 13.7 million in 2007.
The survey by the EAC secretariat forecasts deeper integration of the region. Total intra-EAC trade has grown from USD 1,526 million in 2004 to USD 1,973 million in 2007.
Uganda’s exports to Kenya have increased from USD 14 million in 2004 to USD 110 in 2005.Tanzania’s exports to Kenya in the same period under review grew from USD 27 million to USD 127 million in 2007.
Uganda and Kenya had registered a revenue growth of 32 per cent Tanzania 35 per cent.
According to data on inward investment from EAC shows that from 2005 to 2006 ,the total investment flows among partner states increased in number and value of projects.
Cross border investment indicates predictability of policy and confidence among the five countries, especially when customs tariff on imports and exports are completely removed.
East African leaders say deeper integration will be enhanced by political will globalization, strengthening of small economies and expansion of markets to avoid marginalization.
Integration will be beneficial since it will create trade and improve welfare and industrial development.
Infra-EAC trade is still long way to go, despite growing from 6.5 per cent in 2005 to 41.3 per cent in 2007. For instance, Tanzania sources between 5.6 per cent and 5.7 per cent of its imports from the region. It sourced 1.3 per cent and 1.5 per cent of its imports from EAC in 2007, of which 97 per cent are f rom Kenya.
Kenya is the least depended to imports from the region. It sourced 1.3 per cent and 1.5 per cent of its imports from EAC in 2007.
Uganda sourced 15 and 37 per cent of its imports from EAC, 97 per cent of it from Kenya.
Ends
leooderaomolo@yahoo.com

– – –
Date: Wed, 1 Apr 2009 07:37:31 -0700 [04/01/2009 09:37:31 AM CDT]
From: Leo Odera Omolo
Subject: INTRAREGIONAL TRADE AMONG THE EAST AFRICAN COMMUNITY COUNTRIES UP BY SIX PER CENT IN 2007 ON A PROMISING NOTE TO FURTHER UPWARD TREND.

EAST AFRICA’S STANDBY MILITARY FORCE LIKELY TO BE OPERATIONAL BY NOVEMBER TO RESOLVE CONFLICTS IN MEMBER STATES

New Analysis by Leo Odera Omolo

Countries in East Africa and the Horn will in the near future be obligated to intervene in trouble spots like Somali and Darfur, instead of relying on military help from the entire continent or peace keeper from the United Nations.

The East African Standby Brigade Coordinating Mechanism (EASBCOM) is expected to become a reality next year after the brigade meets the requirement set by the African Union (AU).

The planned force, according to sources in Nairobi will complete its field training in November 2009 thereafter which it will be certified as fully operational ready to intervene and resolve numerous conflicts within the regions.

EASBCOM’s coordinator Dr. Simon Mulongo was recently quoted as saying that the Brigade which was involve specially trained troops from eleven countries can only undertake peace support operation from early next year.

According to Mr. Mulongo. EASBCOM role is to ensure the brigade has common equipment needed for any peace keeping force support operation.

Initially, the East African brigade was originally meant to have 13 countries, namely Tanzania, union of Comoro, Kenya, Eritrea, Ethiopia, Somalia, Sudan, Rwanda, Seychelles, Madagascar and Maritimes.

But it has now emerged that the East African Brigade force will only involve 10 active members with Tanzania, Madagascar and Mauritius having joined SADCC still, however, Tanzania recently reveled it was still interested in the force and is considering participating in the group as an observers.

Mr. Mulongo said the priority areas of intervention will depend on three factors. The most deserving conflict situation; the voting by the AU peace and security architecture, which requires the five regions of Africa to develop their own standby brigades

The East North, west, Central and Southern Africa regions are expected to develop their own brigades that will ultimately form an African Standby force equipped to intervene in conflict, meaning the continent will no longer have to depend on the United Nations every time a conflict breaks out.

Military commander from the Horn of Africa and the Great Lakes region met in the Kenya capital, Nairobi early this month for a one-week that analyzed conflict and disasters in the region. The generates came from Kenya, Uganda, Somalia Eritrea, Ethiopia, Sudan, Djibouti and Rwanda.

Article 14 of the all constituencies act provides that member states establish Regional mechanism for conflict prevention and management as part of the overall securely architecture of the African Union

But as the region moves to strengthen its capacity to respond to conflict before they escalate, the new arrangements will not have it smooth.

One area to concern remains the political dynamics and ideology of member countries which would lead to some not being willingly to contribute or accept troop[s from countries with which they are in dispute or on the basis of religious difference.

However, could easily be resolved. There is the provision that the country force can only be deployed at the request of the country with conflict in it.

In January last year the Kenya government rejected suggestions of foreign military intervention, even though the post election violence had overwhelmed in its security forces.

The regulation governing the EASBCOM stipulates that each region must move to strengthen its capacity to respond to conflicts before they escalate.

Each member country must set aside especially trained and well equipped force within their arm units that can be called upon at a moment’s notice to respond to a conflict situation.

Conflict is considered the leading single internal factor behind socio-economic decline on the continent and the suffering civilians.

Resent estimates show that conflicts are costing the Africans continent approximately USD 8 billion a year in terms of peace-keeping, humanitarian assistance, logistics and loss of property and human life

Between 1995 and 2005, the war of conflicts on the entire African Continent amounted to a staggering USD 18 billion.

Ends
leooderaomolo@yahoo.com
– – –
Date: Thu, 26 Mar 2009 08:52:36 -0700 [10:52:36 AM CDT]
From: Leo Odera Omolo
Subject: EAST AFRICA’S STANDBY MILITARY FORCE LIKELY TO BE OPERATIONAL BY NOVEMBER TO RESOLVE CONFLICTS IN MEMBER STATES

Fw: PRESS STATEMENT – CLARIFICATION EAC FINANCIAL POSITION

— On Tue, 2/24/09, Magaga Alot wrote:

From: Magaga Alot
Subject: PRESS STATEMENT – CLARIFICATION EAC FINANCIAL POSITION

Cc: “Magaga Alot”
Date: Tuesday, February 24, 2009, 2:04 AM
PRESS STATEMENT

CLARIFICATION ON THE EAC FINANCIAL POSITION

EAC Headquarters, Arusha, 24 February 2009:
Our attention has been drawn to the barrage of publicity in some sections of the region’s Media during the past week about a “Financial Crisis” in the EAC. We wish to clarify that there is no financial crisis in the EAC and there is no cause for alarm. In particular, all the programmes of the EAC are proceeding as planned and at no time has any of them been interrupted. The EAC is meeting all its financial obligations to suppliers and to staff. The EAC is not “cash-strapped”, or in any “dire financial straits” and funds have not “dried up” at the EAC as is being touted in some sections of the Media.

It is important to appreciate the following facts about the EAC’s Financial Management:-

1. Partner States’ contribution to the EAC Budget: In accordance with the Treaty for the Establishment of the East African Community, the Budget of the East African Community is made up of equal contributions by each of the five EAC Partner States, viz Kenya, Uganda, Tanzania, Rwanda and Burundi. Since the establishment of the East African Community in 1999, the Partner States have consistently honoured their Budget obligations and maintained a default free budget contribution performance. Over the period, EAC has stood out, among the regional or international organizations, with a default-free record. The EAC financial management has been exemplary and without reproach. EAC has consistently balanced its books and received a clean audit report from the independent audits every year.

2. Commitment to full remittance of funds: During the current FY 2008/09 which is the subject of the barrage of speculative publicity, it is true that the Partner States had fallen behind in their contributions and as at 19 February 2009 the records showed that they had remitted only 45% of the assessed Budget to total $ 10.5 million against the Budget of 23.4 million. However, the Partner States at the same time made a commitment that the outstanding balance shall be cleared before the end of the Financial Year. Indeed, at the same time as this whole issue of the presumed financial crisis in the EAC was raging in the Media, the Partner States made further payments of their contributions that had the effect of substantial reduction of the outstanding balance.

Magaga Alot

Head of Corporate Communications and Public Affairs, EAC

– – –
Date: Wed, 25 Feb 2009 02:34:49 -0800 [02/25/2009 04:34:49 AM CST]
From: Leo Odera Omolo
Subject: Fw: PRESS STATEMENT – CLARIFICATION EAC FINANCIAL POSITION

MUHORONI SUGAR CANE FARMERS IN THREAT TO BOYCOTT DELIVERY OF RAW MATERIALS TO THE FACTORY WITH EFFECT FROM 1ST MARCH AND ACCUSED RAILA ODING OF GROSS INTERFERENCE IN RECEIVERS APPOINTMENT

Report By Leo Odera Omolo.

Sugar cane farmers in Nyando cane growing zones have resolved to stop row cane delivery to the Muoroni Sugar Factory with effort from March 1st 2009 unless the government revoke the contracts of the two joint receiver managers.

The farmers want the KENYA Sugar Board allowed to pick up the most suitable receiver managers, and not a relative of Raila Odinga, who they accused of incompetence, inefficiency and non-performing

The resolution to this effect unanimously passed at the well attended meeting of farmers held at KIipsitet market in Ainamoi constituency Kericho District last Saturday.

Muhoroni sugar factory is situated in Nyando District but it is also catering for cane farmers from other cane growing zones extended to Ainamoi and Belgut constituencies in Kericho, Koru, Fort Tennan and part of south Nandi Districts.

Muhoroni Sugar Factory is currently under the official receivership and the farmers are protesting against the recent the renewal of the contracts of the joint receiver manager Eng. Martin Owiti and Mr. Kipng’etich Bett

The two have served as the joint receiver managers for both Muhoroni and Miwani Sugar Companies, for the last four years, but the farmers have accused then for failing to turn around the ailing sugar company.

In a letter dated February 17,2009 and addressed to the Public Pocurement Apeal Board of Receivers for both Muhoroni are Miwani Sugar Companies and copied to the Kenya Anti corruption commission (KASS) the farmers bitterly complained of what they farmed as the gross interference in the award are subsequent appointment of receiver manager for both Muhororni and Miwani Sugar Companies.

The letter is signed by Jeremiah Kitur Chairman of Nandi Sugar belt co-operative Union ltd Mr. Bill Adero a director of Muhoroni sugar

Outgrowers Company Ltd, Eng Gilbert Ondis a farmer in Miwani area and Mr, Samuel Korir representative of Soin Cane growing zone in Kericho..
The letter states as follows; “On 23 Octo0ber 2008 the Kenya Sugar Board(KSB) had advertised and called for application the post of receiver managers for both Muhoroni and Miwani sugar companies in anticipation of the expiry of the terms of the two joint official receiver managers on FEBRUARY 9, 2009.

On 2ist January 2009, the first interview which was scheduled to take place following the short listing of five applicants was abruptly cancelled and called off by the KSB at the last minute as candidates waited for what is believed to have been a ”gross interference by the Office of the Prime Minister Raila Odinga.

Subsequently the matter came up as a question in Parliament, which was deferred for a later date in the future clarification..

Later on another interview was called and held on 10th FEBRUAY 2009 in which the board directors sat and interviewed a number of candidates. It was then resolved that the current receiver managers be replaced.

The letter went on “As farmers we believe that the decision of the KSB take into account the poor performance of Messrs Belt and Owiti as joint receiver managers in the following area.

Payment for the cane delivered by the farmers is in arrears of 3 months. Accidentally burn canes is being paid for at 2000 per ton instead at KSHS.2500 per ton.

There is widespread inefficiency at the Muhoroni Sugar factory. For example it takes three to four days for a tractor to off load its cargo of raw cane from the farms at the company’s cane yard.

The letter further stated that there is shameless selective harvesting of cane in favor of the members of managerial staff and workers in stead of cane from the field owned by the out grower farmers.
.
It further accused the joint receiver managers for the misuse of the money from the Sugar Development Fund(SDF which was allocated for boiler No 4 amounting to to abut Kshs 250 million) and alleged that the same boiler is non-performing as at per present time. It is dead and not working despite having consumed millions.

Farmers money was used in the Purchase an overhead crane at the factory, which currently not performing as way expected.

The Suagr recovery extracted from the raw is at present below than the required standard which means the factory is not efficient and need overhauling and major repair
.
In spite of all the foregoing ,we understand that the Prime Minister office has directed the Permanent Secretary in the Ministry of Agriculture to extend the tenure of the current non performing receiver manager in total disregard for the resolution of the KSB that they be replaced.

In view of the above and having a direct interest in the operation of the two sugar companies the farmer of Muhoroni and Miwani Sugar companies now appeal to your good office as follows;

1. The resolution of the KCB in respect to the appointment of new receiver manager be uphold so that the farmer can benefit from their sweat
2. That the Prime Minister Raila Odinga be restrained from gross interferences in the procurement process. “We understand the Spectre International, a company associated with the Odinga family was a bidder for the purchase of Miwani Sugar company limited.(currently under the official receivership})and that one of the rejected receiver managers that Mr. Odinga is insisting on being retained is believed to be a member of his family from Sakwa Bondo.

By copy of this letter, we wish to bring this matter to the attention of all relevant arms of government for appropriate action.

Bur contacted on of the joint receiver managers Eng Martn Owiti scoffed at the farmers threat of boycotting can delivery for the factory sugar the matter use a government decision.

He accused the directors of one of the sugar factories within the locality of having spent a fortune trying hard to destabilize Muhoroni Sugar Company by sponsoring all these sorts of unwarranted agitation, The factory in question is also situated within the Nyando sugarbelt .Its bosses are corruptively dishing out money to undermine Muhoroni suagr Company.

Document available to us indicated that the KSB board had selected the firm of Enmg J Pete and B. Bosire to be hired at KSHS 1.8million per month instead of Eng M.Owiti and K .Bett for KSHS2 per month, Others companies which had been short listed include W P. Kahi who asked for Kshs.700,000 per month. Wachira KSHS.850,000 per month and Mwangi and associates who asked for Kshs 400,00 per month.

End
leooderaomolo@yahoo.com

– – –
Date: Mon, 23 Feb 2009 05:51:32 -0800 [07:51:32 AM CST]
From: Leo Odera Omolo
Subject: MUHORONI SUGAR CANE FARMERS IN THREAT TO BOYCOTT DELIVERY OF RAW MATERIALS TO THE FACTORY WITH EFFECT FROM 1ST MARCH AND ACCUSED RAILA ODING OF GROSS INTERFERENCE IN RECEIVERS APPOINTMENT

SUMMIT CHAIR CONVENES HISTORIC MEETING TO USHER “NEW LOOK” EAC

by leo odera omollo

A Strategy Retreat for Key Organs and Institutions of the East African Community was held in Kigali , Rwanda at the Serena Hotel on 9-10 February 2009. The Retreat, the first of its kind brought together the top leadership, Ministers, Permanent Secretaries, Heads and Senior Officials of Government, EAC Organs and Institutions; and representatives of the business community and civil society. The Retreat was convened by H.E. President Paul Kagame of Rwanda and Chairman of the Summit of Heads of State of the East African Community who officially opened the Retreat on 9 February.

The Retreat was held against the background of deepening EAC integration with the ongoing operation of the Customs Union, which was established in 2005, and the advanced progress towards the establishment of the Common Market, which is expected to be in place by January 2010. The EAC recognizes the need to constantly keep a step ahead in maintaining harmonious working relations among its organs and institutions to meet the new challenges and expectations of regional integration within the fast evolving world economic and social order.

Over 100 participants attended the Retreat, including Ministers, Members of the EAC Council of Ministers, the Speaker and Members of the East African Legislative Assembly, Judge President, Principal Judge, Registrar and Senior Officers of the East African Court of Justice; the Secretary General and Deputies Secretary General of the East African Community, Heads of the EAC Institutions ( Inter-University Council for East Africa, Lake Victoria Basin Commission, East African Development Bank, Lake Victoria Fisheries Organization and the Civil Aviation Safety and Security Oversight Agency) , Senior Government and EAC officials; representatives of the business community and civil society; and the Deputy Secretary General of the Commonwealth.

The Strategy Retreat with the theme “Collaborative Work Culture in the EAC organs and institutions for a Stronger East Africa”, focused on a review of the current operations of the EAC organs and institutions, sharing of views and insights on their effectiveness against their mandates under the EAC Treaty, which was signed in 1999; and drawing of lessons from other regional efforts in terms of collaborative work ethic among the EAC organs and institutions and between them and the Partner States.

President Kagame calls for unified, shared sense of purpose and commitment

In his Keynote Address to the Retreat, H.E. President Kagame said the vision of regional integration was a voluntary and dedicated political partnership based on pragmatic building blocks and time-bound milestones and targets. He said the organs and institutions of the Community should strive to improve their collaboration and strengthen their sense of shared purpose to perform better, individually and collectively, in order to realize the benefits of regional integration. He said that among the benefits of regional integration were larger markets, economies of scale, larger pools of human, financial, and physical capital. East Africa , he said, had the advantages of a rich legacy of socioeconomic, political and cultural interactions. He said these advantages should be consolidated by strong, first rate formal institutions embracing a learning attitude, continuously internalizing new knowledge, innovation and good practices to drive the East African integration process.

President Kagame said the EAC should build on the demonstrated strengths and successes of its established organs and institutions, seeking joint solutions to persistent challenges, and working closely with their multiple stakeholders and constituencies among the business community and civil society towards enhanced integration, removal of barriers to trade, increased investments promotion, movement of people, goods and labour, and bolstering employment opportunities.

He said the EAC organs and institutions , their leaders and staff – especially the Secretariat, the East African Legislative Assembly, and the East African Court of Justice – should adopt and operate with a broader regional viewpoint and ambition, projecting a truly East African character as opposed to being extensions of individual Partner States’ bureaucracies and vested interests. He said it was fundamental for the EAC to adopt a culture of self-assessment and stocktaking as the basis for investment in human capital, processes and systems for building assets, talents, and competencies required to drive the integration agenda effectively. He stressed the role of the private sector in the integration process stating that the EAC organs and institutions should adopt business friendly attitudes and practices – each providing its respective competency to promote wealth-creation and realization of a viable integration process based on a dynamic and well-functioning economic market.

Secretary General pitches for competitive regional economy

The Secretary General of the East African Community, Ambassador Juma Mwapachu said the Retreat offered a rare and unique opportunity to begin a crucial conversation on how best to forge coalitions of purpose that would galvanize efforts in promoting deeper EAC integration. He said the Retreat was being held at a time when the global financial and economic climate was at best gloomy and worrisome, challenging the regional integration framework to become, more than ever before, the bulwark in promoting greater competitiveness and shoring the economies of the region against the deleterious effects of a globalization that had turned awry. EAC needed to respond to these challenges of making the EAC national economies as well as the regional economy more vibrant and robust. He said the Retreat was driven by the notion that the transformation of EAC’s organizational work culture as well as the development of better clarified roles and relationships of and between EAC organs and institutions could leverage EAC’s performance leading to the realization of higher gains in the integration agenda.

Delegates offer candid reflection on EAC performance and need to step up collaborative commitment

Hon. Amason Kingi, Minister for East African Community, Kenya said it was a time to be open and candid in recognizing and accepting the challenges facing the Community and resolving to do something about it. He said it was becoming increasingly apparent that the EAC engine was not moving smoothly as it should, hence the convening of the Retreat to see where things were not going right and determining to remedy the situation. He said the founding fathers had intended the EAC organs and institutions to work together with the single and undivided purpose to midwife the integration process. He said EAC needed to come up with a culture of collaboration and team spirit to realize its goals for the benefit of the people of East Africa . The organs and institutions of the Community should project the face of the Community. They should see things as East Africans and not turn themselves into advocates or defenders of national interests at the expence of the greater regional interest. He said that from the top political and executive leadership of the EAC organs and institutions to the professional cadres and bureaucrats engaged in the EAC project, there was no option but to champion the EAC cause and realization of the Vision of the EAC Treaty through the stages of the Customs Union, already established, a Common Market, currently being negotiated, subsequently a Monetary Union and ultimately Political Federation.

Hon Mohammed Aboud, Deputy Minister for East African Co-operation, Tanzania observed that the financial crisis currently engulfing the developed countries would soon be felt in the East African region. With the decline of EAC’s traditional markets and the attendant reduced demand, retrenchment of direct foreign investments and tourist activity from the traditional sources, the pinch was slowly biting. This would further compound the global food and fuel crisis and galloping inflation recently experienced. The creeping world economic crisis would affect the implementation of critical regional projects such as infrastructure. He said the region faced a serious crisis and it was important to change the ways of doing things and take the necessary steps to mitigate the effects of the looming crisis.

The Vice Chairman of the East African Business Council Mr. Keli Kiilu said there was urgent need to involve the EABC deeper in the integration process as an organ or institution of the Community beyond the “Observer” status it has occupied since 1996 in the EAC. He said that the lesson from the current global financial crisis was to place the private sector at the forefront of the regional integration process. He said with the ongoing consolidation of the EAC Customs Union and the advanced process towards the establishment of the Common Market, the role of the private sector should become more pronounced and deeper entrenched. There should be more communications flow between the EAC and EABC and harmonization of their operations, work culture, ethics and vision of the EAC. He said EAC bureaucrats and senior officials of the Partner States assigned to the EAC project should be working in the Community, not to advance national interests but to promote the integration process. They should not be seen to be blocking the integration process but promoting integration. He said quite often decisions reached at the regional level were not communicated down to the operational levels and departments of the Partner States thus impinging on the progress of integration, in particular, he mentioned decisions concerning relaxation of border controls. Mr. Kiilu lamented the over-reliance on external investors at the expense of promotion of East African productivity, manufacturing and export. EAC, he said, should do more to promote local manufacture and investments to create export capacity as well as promote intra-regional trade by facilitating free movement of factors of production and , on the whole, reduce the costs of doing business in the region .

Conclusions and recommendations: towards a “new era” for EAC

At the conclusion of the Retreat, the delegates made far reaching observations and recommendations under what they dubbed the “Kigali Spirit” that would guide the operations of the EAC organs and institutions to a more rapidly achieving regional organization in the new era.

In their recommendations, the delegates emphasized the need for a re-affirmation of commitment to the spirit of regional integration requiring deliberate efforts by the EAC Partner States , organs and institutions as well as civil society and business community to prioritize the regional integration agenda within their respective national agendas.

The delegates called for a professional and ethical re-orientation of the EAC establishment to build an East African spirit among the staff of the East African Community. The delegates proposed the establishment of an EAC Public Service Commission, EAC Parliamentary Service Commission and EAC Judicial Service Commission. They proposed the introduction of standard terms of service for staff of all the organs and institutions of the Community and institution of a system of motivation and rigorous performance evaluation of staff on the basis of undivided loyalty to the Community and contribution to the realization of its vision and mission.

The delegates called for streamlining and strengthening of internal and external communications of the EAC to involve systematic, continuous consultations among the Heads of the organs and institutions of the Community and structured regular meetings to plan, review, monitor, and coordinate their programmes and exchange views on the implementation of the regional projects and programmes. They proposed the establishment of a strengthened central public information and communications office at the EAC Secretariat that would coordinate dynamic public information flow from the organs and institutions of the Community, utilizing advanced communication media, including print and electronic media and the Internet.

The delegates proposed measures to ensure effective implementation of EAC decisions and to this extent the need to set up regional mechanism for monitoring and evaluation of the implementation of EAC Council of Ministers decisions at the regional and national levels; monitoring and evaluation of implementation of EAC Acts passed by EALA at the national levels; and establishment of clear political leadership and responsibility for regional projects and programmes by clarifying the role of the Council of Ministers , including assigning specific portfolios to the Members of the EAC Council of Ministers.

On Budget issues, the delegates proposed urgent review from the current system whereby of equal contribution by Partner States and over-reliance on external funding of regional projects to a more sustainable and self reliant sourcing of funds for regional projects and programmes.

The delegates resolved to sustain the “Spirit of Kigali” and, to this extent, proposed that the EAC Strategy Retreat be institutionalized into an annual event and include holding of quarterly meetings of the Heads of EAC organs and institutions, biannual meetings of the Heads of the organs and institutions of the Community with the Chairperson of the Summit; and establishment of a Task Force to follow up the implementation of the recommendations of the Kigali Retreat. The full report and recommendations of the Kigali Retreat will be submitted to the Council of Ministers and Summit of Heads of State for consideration and decisions.

ends

leooderaomolo@yahoo.com

– – –
Date: Mon, 16 Feb 2009 03:15:23 -0800 [02/16/2009 05:15:23 AM CST]
From: Leo Odera Omolo
Subject: SUMMIT CHAIR CONVENES HISTORIC MEETING TO USHER “NEW LOOK” EAC

Re: Africa: Anti-Christian Gaddafi Takes Over as AU Chair

Date: Wed, 4 Feb 2009 18:56:34 +0300 [09:56:34 AM CST]
From: Robert Alai
Subject: Re: Africa: Anti-Christian Gaddafi Takes Over as AU Chair

George

Gaddaffi has been so insulting to Chhristians of late.

Check all these links

Uganda: Gadaffi’s Insults Unite Christians

http://allafrica.com/stories/200803240012.html

Ugandan president teaches Muammar Gaddafi about Christianity

http://www.catholicnewsagency.com/new.php?n=12151

Gadaffi: “Bible a Forgery Because it Doesn’t Mention Prophet Mohammed”

http://www.weaselzippers.net/blog/2008/03/gadaffi-bible-a.html

On Wed, Feb 4, 2009 at 6:33 PM, ndebele okoth wrote:

This a mere divisive propaganda for continuality to loot Africa recourses and manpower.

Is this not typical divide a rule tactics of the west? When Christians endorsed Obama the same group call him a Muslim, knowing very well he is a committed Christian, even at times they were calling Kenyans PM Raila a friend of radical Islamic, it seems the writer is from the same school of thought, she need to read the Gadaffi Green Book to understand who this man is.

Was is not Gadaffi who fought a alongside Fidel Castro to liberate South Africa from the so called Christians Apartheid of Boers of government, when ex-dictator Moi was torturing and Killing indiscriminately, it was comrade Gadaffi who stood with Kenyans dissidents .

I am Christian democrats and I have never heard Gadaffi mixing his political ideology with religion. The prejudice must stop, Africa needs to unity to developed, and Africa has enough resources to feed his hungry mouths.

United State of Africa dream is possible, as long as it can bring an end to the senseless wars and hunger.

— On Wed, 2/4/09, edwin mwaura wrote:

From: edwin mwaura
Subject: Africa: Anti-Christian Gaddafi Takes Over as AU Chair
Date: Wednesday, February 4, 2009, 4:36 PM

Africa: Anti-Christian Gaddafi Takes Over as AU Chair
3 February 2009

—————————-

opinion
President Muammar Gaddafi whose public statements have had the potential of worsening the delicate Muslim-Christian relations in Africa was on Monday elected chairman of the African Union (AU).
The Libyan leader replaces Tanzania’s Jakaya Kikwete in the one-year-term position that is held on a rotational basis by a head of state from Africa’s four regions. His pet subject is greater African unity.
“I shall continue to insist that our sovereign countries work to achieve the United States of Africa,” Gaddafi said in his inaugural speech, but admitted that African leaders were “not near to a settlement” on the issue.
Gaddafi, on his 40th year in power, has for the past decade pushed the unity agenda, but without sensitivity to the continent’s religious reality. Christianity and Islam are Africa’s main religions.
The man who has previously dismissed the Bible as a forgery and Christianity as a religion not meant for Africans will for the next year be the spokesman for a continent where religious tensions have sometimes erupted into violent confrontations.
On the other hand, Christian minorities, especially in North Africa, do not enjoy freedom of worship and continue to suffer official discrimination.
In the past two years, Gaddafi has used celebrations to mark the birthday of Prophet Mohammed to disparage Christianity. Last year while visiting Uganda, he delivered a tirade against the Bible, dismissing it as a forgery.
“The Bible we have now is not the one that was revealed to Issa [Jesus], and the Old Testament is not the one that was revealed to Musa. Mohammed is mentioned in both (original versions), but in the Torah and Bible we have now, there is no mention of him,” he said.
“It means that it (Bible) has been forged. Prophet Mohammed was sent to mankind. Allah wanted mankind to have one religion. The Koran that we have is the only book that was sent by Allah.”
In 2007, the Libyan leader said it was a mistake to believe that Jesus had been crucified and killed. “It is not correct to say that. Another man resembling Jesus was crucified in his place,” Gaddafi told a mass prayer meeting in Niger to mark the birth of Prophet Mohammed.
Christianity, he added, was not a universal faith alongside Islam. “There are serious mistakes – among them the one saying that Jesus came as a messenger for other people other than the sons of Israel,” he said.
“Christianity is not a faith for people in Africa, Asia, Europe and the Americas. Other people who are not sons of Israel have nothing to do with that religion.”
“All those believers who do not follow Islam are losers,” Gaddafi said. “We are here to correct the mistakes in the light of the teachings of the Koran.”
The Libyan leader seized power in a military coup d’état in 1969, deposing the monarchy and imposing socialism and Islamic orthodoxy on the country.

Forward Ever (by any means necessary)!
Karen C. Aboiralor

UGANDA TO SCRAP EAST AFRICAN PASSPORTS WORTH BILLION OF SHILLINGS

By Leo Odera Omolo

Uganda has declared it will destroy passport worth Ushs 4 billion (USD 710,000) designed for the East African Community before Rwanda and Burundi join the regional bloc

The document will be redesigned to include the two new BAS members, although the printing of the earlier passport was stopped primarily because the equipment broke down two years ago.

The immigration department which planned to issue the passports to 70,000 Ugandans says the detective printer used outdated technology that relied on lamination at the applicant’s photograph into the travel document.

Although immigration departments across the region have sense introduced new technology to curb passport forgeries, EAC passports have not been upgrades because of the need for consensus by member countries

That site, Uganda had a huge crock of printed passport books that causes not be issued using the new technology, which involves scanning and embedding the photographs in the passports.

News emerging from Kampala qualified officials as saying that the Ugandan government pursing machine supplied by UK firm De ha Rue in 1995 is now in serviceable; although it can still capture data and do laminating work, it cannot do the final printing.

De ha Rue experts had inspected the machine and continued that there are neither spore parts for the neither old machine nor new machine of the same make because the opted for new technologies.

Mr. Wilberforce Ngonde, the Uganda ’s Assistant Commissioner for immigration weekly as saying that DeLa Rue has advised the government to buy a new machine, whose lost, is yet to the determined.

“To sort out the problem, we will have to buy a new machine and destroy the unused stock of old passport book, which lost USD 710,000. The government said forced to incur the lost because the old machine cannot be serviced. It is a scrap,” said the Minister of State Internal Affairs, Maria Kasaija.

It has been established that in spite of failing to print the passport in the past two years, the immigration Department continues to reject new applications for the EAC passports

The official says demand for the passport has shot up with the coming on board of Rwanda and Burundi.

Uganda says it will put off issuing of the passport initial a redesign is endorsed by the region. They further stated that the Each African immigration chiefs with new features that would be contained in the new passports then pass them to the Council of Ministers of the EAC for approval.

It major issue for discussion during the design is the logo for the passports as the current document does not reflect the new member presence in the community old EAC passports.

East African passport are supposed to ease movement of East Africans across the boarder of the member countries. For example holders such passports do not need to have the stamped each time they cross regions as boarders. A stamp is valid for at least six months

Ends

leooderaomolo@yahoo.com

– – –
Date: Wed, 21 Jan 2009 06:21:12 -0800 [08:21:12 AM CST]
From: Leo Odera Omolo
Subject: UGANDA TO SCRAP EAST AFRICAN PASSPORTS WORTH BILLION OF SHILLINGS

Fw: PRESS RELEASE – EAC PROSPECTS FOR 2009

Forwarded By Leo Odera Omolo

— On Thu, 1/8/09, Magaga Alot wrote:

From: Magaga Alot
Subject: PRESS RELEASE – EAC PROSPECTS FOR 2009
Date: Thursday, January 8, 2009, 1:37 AM

PRESS RELEASE

EAC SET TO MARK 10TH ANNIVERSARY DURING 2009

– Secretary General sees bright prospects for regional organization, says 2009 will mark “ high point ” of EAC achievement and visibility –

EAC Headquarters, Arusha, Wednesday 7 January 2009: The Secretary General of the East African Community, Ambassador Juma Mwapachu has said that 2009 would be a momentous year that would mark a high point of EAC achievement and visibility.

2008: EAC entered definitive phase of deepening integration

Addressing EAC staff during a special general meeting to launch the activities for the New Year, Ambassador Mwapachu reviewed EAC’s performance during the past year, 2008. He said that during the year, the EAC entered the definitive phase of deepening integration, noting that the EAC focus was on the negotiations of the Protocol on the Establishment of the EAC Common Market; and the negotiations of the Economic Partnership Agreement (EPA) with the European Union. He said the enactment of legislation on EAC Trade Negotiation was a major breakthrough in the longstanding search for the EAC Partner States to negotiate as a bloc in the multilateral trade fora.

The EAC participated actively in the Tripartite EAC-COMESA-SADC initiative finally hosting the first Tripartite Summit in Kampala in October. The Tripartite Summit resolved to establish a Free Trade Area, Customs Union, Common Market and eventual merger of the three regional economic communities as a major building block of the African Economic Community that is being promoted by the African Union.

The Secretary General observed that during 2008, the EAC put emphasis on regional infrastructure development. The Partner States adopted comprehensive strategic plans in the infrastructure sector, cutting across roads, railways, inland waterways, ports and harbours, energy and civil aviation. He said the strategic plans were advanced to various stages of implementation during the year, noting that construction works commenced on the Arusha- Namanga- Athi River road project as well as the Power Interconnection Project between Kenya and Tanzania at the Namanga border point.

The Secretary General said there was intensification of the private sector participation in the regional integration process during the period. The East African Business Council (EABC) demonstrated active involvement at the forefront of the operations of the EAC Customs Union and the negotiations of the Common Market. The EAC and EABC jointly held the 2nd East African Media Seminar in Dar es Salaam in April and the 1st East African Investment Conference in Kigali in June in a collaborative effort to promote East African investments and trade.

2009: holds great promise and prospects for EAC

The Secretary General said 2009 would be a year of great promise and challenges for the EAC with the significant prospects of the conclusion of the Protocol on the Establishment of the Common Market and advancing the process towards the establishment of the Monetary Union.

The Secretary General said 2009 would be a year of increased EAC visibility with the planned 10th Anniversary celebrations; and launching of the study and implementation of the five-year EAC Marketing and Publicity Strategy under the EAC Re-Branding Project. A Steering Committee has been set up to manage the Anniversary Celebrations. Preparatory work has begun for the activities, which will be spread across the region throughout the year. The activities would culminate in the concentration of weeklong events leading up to the climax of the Anniversary observance that will be staged in Arusha on 30th November 2009.

Meanwhile, some of the planned major events during 2009 are the Second EAC Investment Conference in Nairobi in June, the 3rd EAC Media Summit, the 4th EAC Petroleum Conference in Mombasa in March; the EAC/EABC Energy Conference; and the commencement of the construction works of the new EAC Headquarters building in Arusha in April.

A high Level EAC Strategy Retreat for EAC Organs and Institutions will be held in Kigali in February to identify the opportunities, challenges and prospects of the Community under the theme, “Making EAC a more Effective Institution”. The EAC would also carry out comprehensive audit of past performance, to identify implementation gaps and bottlenecks and lead to the institution of mechanism for effective co-ordination and implementation of regional projects and programmes.

The process of review of the EAC Treaty would be launched at the Meeting of the Sectoral Council on Legal and Judicial Affairs that will be held in Mombasa on 19-24 January 2009.

At the programmatic level, ongoing projects and programmes in infrastructure development, Lake Victoria development, promotion of East Africa as a single market, investment area and tourist destination as well as projects and programmes in the social sectors would be intensified within a renewed commitment to realize and demonstrate tangible benefits of regional integration.

DIRECTORATE OF CORPORATE COMMUNICATIONS AND PUBLIC AFFAIRS
EAC SECRETARIAT
ARUSHA
7 JANUARY 2009

– – –
Date: Thu, 8 Jan 2009 08:38:19 -0800 [01/08/2009 10:38:19 AM CST]
From: Leo Odera Omolo
Subject: Fw: PRESS RELEASE – EAC PROSPECTS FOR 2009