From: Leo Odera Omolo
Date: Thu, Oct 1, 2009 at 8:41 AM

Forwarded By Leo Odera Omolo In Kisumu City

Address by the Deputy Secretary General, Projects and Programmes, EAC, Mr. Jean Claude Nsengiyumva to the National Defence College, Nairobi, Kenya, 30 September 2009

Distinguished Lt. General Commandant
Senior Military Officers and Civil Servants
Course Participants
Ladies and Gentlemen

I am honoured to address this distinguished audience on the occasion of the Course for Senior Military Officers and Civil Servants of the EAC region and other sister African countries. On behalf of the East African Community, I thank you for inviting me to address you on the topic of East African integration. I would like to place my address in the context of a reflection on the mission and objectives of the Community and in doing so; I will outline some of the key achievements, challenges and prospects of the EAC.

Ten years of the Treaty

It is opportune that this discussion comes at a moment when the East African Community is marking its first decade since the Signing of the Treaty for the Establishment of the East African Community in November 1999. During this period, the East African Community has realized good progress and has laid a firm foundation for a strong regional economic bloc. Indeed, the first ten years of the implementation of the Treaty have witnessed systematic expansion of the regional programme and competitive positioning of East Africa in the global markets. The EAC has undergone major transformations and establishment of various institutions and mechanisms covering the broad range of social, economic and political areas of cooperation. Various measures undertaken in confidence building and harmonization of Partner States’ policies have provided the basis for a sustainable regional co-operation and development.

The launching of the Customs Union in 2005 and the enlargement of the Community, with the admission of Rwanda and Burundi in 2007, have contributed to great stimulation of investments, trade and overall consolidation of the East African market. Following the establishment of the EAC’s Customs Union, trade and investments in the region have grown, contrary to earlier perceptions that the Customs Union would retard or reverse trade and investment opportunities of some countries. Total intra-EAC trade and total EAC trade with rest of the world have increased by between 20-30% annually. This success of the Customs Union has encouraged and reinforced the commitment of the EAC Partner States to the integration process. At the programmatic level, we continue to witness a rising tide of expectations and deeper appreciation of the EAC’s mission to deliver the concrete benefits of integration to our people.

Global financial crisis and EAC response

Our discourse today, however, also comes against the background of the financial markets crisis that started in the advanced world financial centres but which has also affected our region. Mercifully, there are signs today that this global financial and economic crisis is pulling back and a recovery is in sight. Nevertheless, the global financial and economic crisis has driven the lesson home of the vulnerability of the economies of the developing countries and regions. We need to strengthen our collective resolve to deepen integration as a strategic catalyst to shore up our economies against these global economic woes. We need a new and focused commitment to addressing the emerging global challenges, including global climate change and its attendant severe environmental, and development impacts.

Customs Union

All this notwithstanding , it is gratifying to note that , as it marks its 10th Anniversary, the East African Community is resurgent and confident of facing the challenges ahead. From January 2010, the EAC Customs Union, which was established in 2005, will reach its threshold with all goods traded within the region attracting zero customs duty. This fiscal development shall apply to Rwanda and Burundi following their accession to the EAC Customs Union effective 1st July this year. This major development, of the maturity of the Customs Union, gives confidence in the forward march of East African integration. It is encouraging to note that the negotiations for the establishment of the EAC Common Market, which is the next stage of East African integration after the Customs Union, are drawing to a positive conclusion. Following the final negotiations round in Kampala last week, we now expect the Signing of the Protocol on the Common Market to take place in November this year and launching of the Common Market on schedule in January 2010.

Negotiating as a bloc

Similarly, the Community has sustained activity in the area of trade negotiations. The enactment of the EAC Trade Negotiations Act in 2008 came as a major breakthrough in the longstanding search for the EAC Partner States’ commitment to negotiate as a bloc in the multilateral trade fora. At the broader continental level, the EAC has participated at the forefront of the Tripartite EAC-COMESA-SADC Arrangement, culminating in the hosting of the first Tripartite Summit in Kampala in October 2008. The Tripartite Summit’s resolve to establish a Free Trade Area, and later a Customs Union, of a larger African economic area, of 26 African countries, is being pursued in earnest. This development will further strengthen EAC’s competitiveness in the global markets.

EAC’ common negotiation strategy is also on track with regard to the negotiations for a comprehensive EPA with the EU. Admittedly, there are several challenges EAC faces in opening up our economies to the EU in the areas of investments and other economic interests. We believe, however, these negotiations are informed of good faith and noble commitment of both sides. The EAC is firm on the resolution of such critical issues, in the areas of market access, trade in services, technical barriers to trade, rules of origin, trade related aspects, agriculture and economic and development co-operation, in a spirit of give and take and fair trade for mutual benefits in any trade arrangement or agreement that would be eventually concluded.

Challenge of competitiveness

The EAC is under no illusion that its economies continue to be encumbered by low competitiveness and is determined to address the challenges systematically and effectively. In this regard, emphasis is currently being placed on infrastructure development, including Railways, Lake Transport (Lake Victoria and Lake Tanganyika), Ports and Harbours, Roads, Civil Aviation and Energy. During the past year, the EAC has engaged high level consultations, from the Permanent Secretaries and Chief Executives of public and private sectors levels to the Ministers levels, to examine in depth the infrastructure deficits and determine how best they can be addressed and redressed. Finally, during the Summit in Kigali in June 2008, the EAC Heads of State resolved on a prioritization and fast track of comprehensive strategic plans in the infrastructure sector.

Roads

The EAC strategic plans on infrastructure prioritization and development have subsequently been advanced to various stages of implementation. Breakthroughs in this regard were made, among others, with the commencement of the construction works on the Arusha-Namanga- Athi River road project and commencement of the Power Interconnection Project between Kenya and Tanzania at the Namanga border point which were officially launched in April 2009. Meanwhile, expedited preparations are underway for commencement of construction works on the Arusha-Moshi- Voi and Malindi-Mombasa- Tanga-Bagamoyo road projects. The implementation of the regional components of the East African Trade and Transportation Facilitation Project which includes the one-stop border posts has commenced at Malaba and Busia and, with it, work is intensified on the harmonization of traffic regulations under the East African Road Transport Agreement.

Railways

Progress has also been made in the East African Railways System. The challenges experienced under the concessioning of the central railway system in Tanzania and the Kenya-Uganda Railway, are being actively addressed to find effective solutions and the way forward. In the meantime, progress is maintained on the East African Railways Master Plan The Master Plan is addressing the issues of interconnection, expansion of network, investments, technology enhancement, management and ownership issues; and extension of original coverage of Kenya, Uganda and Tanzania, to now incorporate the extensions to Rwanda and Burundi.

Civil aviation

With regard to Civil Aviation, the newly established East African Civil Aviation Safety and Security Oversight Agency (CASSOA) has made progress in the harmonization of civil aviation regulations covering aviation safety, aerodromes and security. The Agency has developed regulations covering all the relevant safety and security provisions in the Annexes to the Chicago Convention.

Communications

In the area of communications, the EAC is in the process of implementing e-government strategy embracing cyber laws, e-health, e-immigration and e-education. At the same time, the African Development Bank-funded study on the EAC Broadband Infrastructure Network under the framework of i-connect Summit decision is being implemented. The East African Marine System (TEAMS) and the East African Sub Marine Cable System, (EASSy), both projects that are private sector-led, have been commissioned. The realization of these projects represents important developments for the EAC region in cheaper and more efficient link to international outsourcing markets, e-commerce, virtual learning and global communications, among others.

Energy

In the area of gas and oil pipelines, progress has been made on the extension of the oil pipeline from Kampala to Kigali and Bujumbura. The oil pipeline extension from Eldoret to Kampala is ongoing, including extension to Rwanda and Burundi. The extension and interconnections include: Mbarara-Birembo line linking Uganda and Rwanda; Rwegura-Kigoma linking Tanzania and Burundi; Arusha-Nairobi line; and a second transmission line linking Kenya and Uganda. The extension will also cover the Bulyanhulu-Biharamulo sector within Tanzania to connect Tanzania electricity grid to Rwanda and Burundi.

Lake Victoria Development Programme

With regard to the Lake Victoria Development Programme, the Lake Victoria Basin Commission (LVBC) launched the implementation of its Operational Strategy (2007-2010) around its three key pillars to unlock the vast potentials in the Lake Victoria Basin. The idea is to maximize the utilization of natural resources; reduction of poverty and improvement in the quality of life; and environmental sustainability.

The key project is the Lake Victoria Environmental Programme Phase II (LVEMP II) , which initially involving Kenya, Uganda and Tanzania will be extended to embrace Rwanda and Burundi. The second programme is the Mt. Elgon Regional Ecosystem Conservation Programme (MERECP). This Programme, which has been under implementation on the Mt Elgon side in Kenya and Uganda, has now been reconfigured to focus on the sustainable livelihoods of the mountain communities. This will enhance the interest of the local communities in conservation of this trans-boundary resource. Climate change adaptation, which is a global concern, has been included in the programme.

The Lake Victoria Basin Commission is also in the process of operationalizing the Lake Victoria Transport Act (2007). Hydro-graphic surveys of the access to Ports of Mwanza, Kisumu and Port Bell are now complete with funding from LVEMP and will be extended to cover the rest of the Lake. This activity will include the installation of aids to navigation and putting in place search and rescue systems. With the collaboration of UN Habitat and the African Development Bank, the LVBC is pursuing a programme for the supply of water and sanitation infrastructure and facilities to key towns around the Lake basin. Also, in collaboration with African Medical Research Foundation( AMREF) , LVBC is implementing a US dollars 6 million HIV and AIDs project for the populations within the Lake Basin.

Agricultural development and food security

With the current situation of high food prices, providing assistance to the most poor and hungry as well as re-launching agriculture and revitalizing rural communities are key elements to reduce hunger and ensure a secure EAC food situation. EAC is placing emphasis on agriculture and food security, under the East African Agriculture and Rural Development Programme, which is one of the identified major planks of the 3rd EAC Development Strategy whose implementation would be placed on a high priority in the period ahead. The agreements in the development of Agriculture and attainment of Food Security for the Community, including the Agriculture and Rural Development Policy and the Agriculture and Rural Development Strategy have been adopted. The EAC Action Plan to address food security issues, covering the period 2010 – 2030 has been developed and is ready for implementation. The interventions under the Action Plan are geared towards realization of effective investments in agricultural development and food security within a span of 2012-2015 time frames.

Investments and trade promotion

A great premium has been placed on the promotion of investments and trade as a result of which the East African scene is definitely changing, becoming highly dynamic; and competitive posture is emerging. In this regard, the East African private sector, led by the East African Business Council is deeply involved in the activities of consolidation of the Customs Union and the establishment of the Common Market. The holding of the 1st East African Investment Conference in Kigali in June 2008 and the 2nd EAC Investment in Nairobi in July this year have demonstrated the commitment of the economic players to make the region more competitive. Coupled with the Investment Conference is the East African Jua Kali (small to medium scale industries) Exhibition which has been regularly held since 1999 the investment promotions have contributed immensely to highlighting and promoting the important role of the informal and micro enterprises sector in the regional economy.

Tourism promotion

The programme of marketing and promotion of East Africa as a single tourist destination is similarly well advanced with focus being put on the improvement of standards and expansion of facilities in the region’s hospitality industry. A robust joint marketing of East Africa’s tourist potential in the leading travel and tourist source markets in Europe, namely the Berlin International Tourism Fair and the London World Travel Market is well sustained. In recognition of EAC’s great tourist potential and the industry’s significant multiplier effects on the region’s economies, the EAC‘s National Tourist Boards have resolved to extend the joint marketing of East Africa to Asia, Far East, Australia and America. Supporting these initiatives is a Protocol on the establishment of an East African Tourism and Wildlife Management Coordination Agency, which has been adopted. The EAC is also working on the modalities to fast-track the introduction of Single Tourist Visa to facilitate free movement of tourists in the region in the effort to make the region more attractive and competitive in the tourism sector.

Expanding markets

With its economy centrally linked to the wider Eastern and Central African market, encompassing the Great Lakes Region, including the vast Democratic Republic of Congo and South Sudan, the East African region has potential to grow and expand into a significant centre of regional integration and development in Africa. Based on this realization, EAC is steering a steady course to broaden its world outreach and outlook beyond the traditional European and Asian markets. This posture is exemplified by the conclusion of the Trade and Investment Framework Agreement (TIFA) between the EAC and the USA in August 2008. The EAC-USA TIFA will cover issues relating to the African Growth and Opportunity Act (AGOA), the World Trade Organization Doha Round Trade Talks. It will also provide opportunities for full blown economic engagement with the world’s largest economy in multi-variety areas of economic partnership. Building on this model, the EAC is exploring strengthened relations with other strategic partners in the world markets, among which a TIFA with India is at an advanced stage of negotiation.

Whilst appreciating the achievements being made in the promotion of trade and investments in the region, the EAC is also seized of the challenges the EAC faces. While trade levels have grown, the rate of growth is not high enough commensurate with the resource abundance in the region. Thus, a key challenge is how the EAC region can improve productive capacities. Currently, trading between Partner States is mainly on primary agricultural produce. There is little value addition on these commodities in the form of manufactured goods. This kind of trade reflects the low levels of industrialization in the region. The EAC recognizes the need to act quickly to address this shortcoming and is now in the process of instituting measures to operationalize industrialization strategy to leverage the region’s global markets thrust.

The challenge of industrialization has close connection with the menace that is undermining EAC industries in the form of counterfeits and piracy. In this context, EAC is at an advanced stage of developing a policy on anti-counterfeits and anti-piracy which will inform the enactment of legislation on counterfeits and anti-piracy. Also central to the issue of the present state of low trade performance in the region, are the non tariff barriers. EAC is making all efforts to tackle this challenge. National and regional monitoring committees have been established to streamline borders and corridors surveillances to boost capacities and linkages which are critical for promoting market access to both regional and international markets and generally lower the cost of doing business in the region.

Co-operation in Political Affairs

The ultimate goal of the Community is the establishment of the Political Federation of the East African States. This is a unique commitment of the EAC among the African regional economic communities and is based on the EAC’s unique attributes of a common heritage and commitment to the pursuit of a common destiny. To this extent, I am pleased to note that the process of wide consultations and sensitization of the East African people on Political Federation is making great headway. The EAC’s Department of Political Affairs continues to conduct sensitisation and consultations with key stakeholders to mobilise greater political will for deepening EAC integration and. at any rate, coordinate cooperation among national statutory bodies and regional organisations to enhance cooperation in Political Affairs.

Good governance

In line with the principles of good governance, including adherence to the rule of law, democracy, transparency, accountability and protection of human rights, efforts towards promoting good governance in the EAC integration, a number of programmatic and policy initiatives have commenced. The development and negotiation of an EAC regional framework on good governance is at an advanced stage. Noting that the region has continued to attract negative publicity on commitments to fight corruption, the national agencies on combating corruption decided on development of an EAC policy on preventing and combating corruption in the EAC region. The draft Protocol on good governance and the related issues is now programmed for stakeholder validation before adoption by the policy organs of the Community.

Human rights

Other collaborative efforts in the sector include cooperation among National Human Rights Commissions which are implementing the East African Community Plan of Action on Protection and Promotion of Human Rights. Meetings and collaborative activities by National Electoral Commissions have been incorporated into the EAC institutional framework and an EAC Forum of National Electoral Commissions was established. This is envisaged to engender regional best practices in running free, fair and credible elections. The initiatives in this sector are intended to harmonise policies, strategies, practices with a view to establishing best practices in the region and serve to lay the foundation for political integration and the eventual establishment of the EAC Political Federation.

Foreign policy co-ordination

The Community underscores the development of partnership arrangements with regional and international organizations in fulfilment of statutory obligations and other international instruments as one of the strategic objectives of EAC integration. The joint pursuit of EAC Partner States’ foreign policy objectives therefore remains one of the top priorities the Community. To this end, the process of upgrading the existing Memorandum on Foreign Policy Coordination into a Protocol is in the advanced stages. The Protocol will provide a better and well defined framework within which the Community will to pursue the strengthening of its relations with other organizations enhance the Community’s competitiveness and increase EAC’s leverage in this era of globalization, including strengthening the capacity and deeper involvement of our Partner States’ Diplomatic Missions.

Co-operation in defence matters

Co-operation in defence remains a centrepiece of EAC co-operation and during the period under review this co-operation continued to be taken to higher levels. This is in recognition of the primacy of peace, security and stability to the pursuit of regional integration and development. Under the Memorandum of Understanding on Defence Cooperation that was signed in 1998, the Armed Forces of the EAC Partner States undertook joint activities of confidence building and common defence preparedness. This MoU is now set to be upgraded into a Protocol that will holistically address cross-cutting security challenges that affect the EAC region.

Inter- State Security

A number of measures have been taken to enhance existing cooperation in Inter State Security. Among these are the establishment of a Sectoral Council on Inter State Security to enhance the pace of decision making within the sector and the establishment of a Directorate of Peace and Security, which is at an advanced stage, to spearhead the implementation of the EAC Regional Strategy on Peace and Security. In addition to the ongoing collective efforts towards addressing cattle rustling, proliferation of Small Arms and Light weapons, narcotic and human trafficking, theft of motor vehicles and other cross border crimes, linkages with the AU and other Regional Economic Communities have also been enhanced as part of a larger process of implementing the AU Continental Peace and Security Architecture. In this regard, completion of a Regional Early Conflict Early Warning system is at an advanced stage while a Regional Framework for Conflict Prevention is under development.

Co-operation in the social sectors

Over the past three years, the EAC has placed emphasis on the activities of co-operation in the social sectors which is intensifying and making increasing impact on the deepening of regional integration. In 2007, an EAC Forum for Ministers responsible for Social Development was established in order to provide a platform for East African Ministers of Social Development to share experience and harmonize policies and approaches in management of cross-cutting social concerns, such as poverty eradication and overall management of Millennium Development Goals (MDGs). The Forum has been responsible for elaborate preparations of national and regional approaches addressing identified challenges for social development and harmonizing the development of social policies in the region. Cooperative efforts have been given a further boost by the adoption of the EAC Regional Strategic Plan for HIV & AIDS (2008-2012) and the EAC Regional Gender and Community Development Framework and, on the whole, harnessing the energies and force of civil societies behind the EAC’s broad range of areas of co-operation in the economic and political spheres.

Review and Amendment of the Treaty

The hallmarks of the EAC integration process are partly defined by the methodical and systematic co-operation of the different organs and institutions of the Community. Structured Inter- EAC Organs and Institutions consultations have been going on for some time to find ways and means to make the EAC a more efficient and effective organization in realizing its mandate. With the cumulative experience and achievements of the Community during the past ten years, and as the region seeks to consolidate the integration process, there is a logical and imperative need to review the provisions of the Treaty with a view to amending it to fit the lessons of experience. The era that the EAC is moving into requires streamlining and revamping the decision making process in the EAC by addressing the issues of sovereignty of the Partner States and the necessary level of authority that should be granted or ceded to the EAC to make the regional organization confident enough, competent enough and decisive enough to implement regional projects and programmes.

Conclusion

In conclusion, let me reiterate that the EAC is today positioned to overcome many of the challenges that confront it and decisively move to a higher stage of integration. Integration is a costly venture and it requires optimum political will to make it a success. I believe that there is adequate political will in our region. With the support of the key EAC Organs and Institutions, and the broad spectrum of EAC stakeholders, the EAC should be able to steer a robust course towards the realization of is noble goals of unity and development. Once again, I thank you for your interest in the Community and wish you success in all your endeavours and continued support.

Thank you.
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Subject: Meeting of the East African Army Generals in Nairobi

EAC – PROJECTS AND PROGRAMMES, ACHIEVEMENTS, CHALLENGES AND PROSPECTS