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EAC unveils sh410b budget to advance digital integration agenda

The financial plan, themed “Deepening Commitment and Realising Objectives and Benefits of Regional Integration,” signals the start of implementation of the 7th EAC Development Strategy (2026/27–2030/31), which will guide the bloc’s integration agenda over the next five years.

Minister Rebecca Kadaga poses for a group photo during the tabling of the EAC Budget Estimates before the East African Legislative Assembly (EALA) on Tuesday, June 23, 2026, at the EAC Headquarters in Arusha, Tanzania. (Courtesy Photo)
By: Aloysious Kasoma, Journalist @New Vision

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The East African Community has prioritised digital integration in its 2026/2027 budget, allocating $110.9m (over sh410b) to accelerate regional programmes, especially the Eastern Africa Regional Digital Integration Project (EARDIP) initiative.

The budget was presented by the Chairperson of the EAC Council of Ministers and Uganda’s Minister for East African Community Affairs, Rt. Hon. Rebecca Alitwala Kadaga, during the tabling of the EAC Budget Estimates before the East African Legislative Assembly (EALA) on 23 June 2026 at the EAC Headquarters in Arusha, Tanzania.

The financial plan, themed “Deepening Commitment and Realising Objectives and Benefits of Regional Integration,” signals the start of implementation of the 7th EAC Development Strategy (2026/27–2030/31), which will guide the bloc’s integration agenda over the next five years.

A significant feature of the 2026/2027 budget is its strong focus on institutional strengthening and trade-driven integration. Of the total allocation, $70.5m has been earmarked for institutional capacity and coordination across EAC organs and institutions, making it the largest single expenditure item.

Trade facilitation and value chain development received $11.1m, reflecting the bloc’s ambition to expand intra- and inter-regional trade. Social integration and services were allocated $10.7m, while industrialisation and productivity enhancement received $7.2m.

Further allocations include $4.1m for the East African Monetary Union roadmap, $4m for regional infrastructure development, and $3.4m for governance, peace and security initiatives.

EAC officials say the budget is designed to strengthen institutions while also accelerating economic transformation, with digital integration emerging as a key enabler of trade, connectivity and service delivery.

EARDIP central to digital transformation agenda

At the heart of the EAC’s digital ambitions is the Eastern Africa Regional Digital Integration Project (EARDIP), which continues to anchor efforts to build a seamless digital ecosystem across Partner States.

Presenting the budget, Rt. Hon. Kadaga reaffirmed that EARDIP is central to achieving the EAC Single Digital Market, where citizens, businesses and governments can access services across borders without barriers.

“The EARDIP seeks to accelerate the development of the EAC Single Digital Market by expanding affordable broadband connectivity, strengthening regional digital infrastructure, enhancing cross-border digital services, interoperable digital payment platforms and promoting digital innovation and inclusion across the Partner States,” she said.

Kadaga noted that the project has already delivered measurable progress during the 2025/2026 financial year, particularly in policy harmonisation and regulatory reforms.

Among the key achievements was the completion of a regional study on roaming services. The study informed draft regulations aimed at creating a more integrated regional roaming framework covering data and SMS services, alongside proposals to reduce caps on voice call charges within the region.

These reforms are expected to significantly reduce communication costs for citizens travelling across East Africa and improve regional connectivity.

“This will make it more affordable for citizens to travel and to call back home countries without changing SIM cards,” she added.

Digital governance and regulatory strengthening

Beyond infrastructure and connectivity, EARDIP has also supported efforts to strengthen digital governance and build trust in cross-border digital systems.

During the 2025/2026 financial year, the project implemented capacity-building programmes targeting Data Protection and Privacy Commissioners, ICT policymakers, regulators, technical experts, Members of the East African Legislative Assembly, and Judges of the East African Court of Justice.

According to Kadaga, these interventions significantly strengthened regional expertise in data governance, cybersecurity, privacy protection and digital financial systems regulation.

“These interventions strengthened regional competencies in data governance, privacy protection, cyber security, and digital payments,” she noted.

The strengthened regulatory environment is expected to support a safer, more harmonised digital space that encourages cross-border innovation, investment and service delivery.

Driving inclusive digital and economic growth

EARDIP also plays a critical role in promoting inclusive economic growth through digital transformation. The project supports expansion of affordable internet access, interoperability of digital systems, and improved efficiency in cross-border trade and public services.

A key component of the programme is digital financial inclusion, supported through interoperable payment systems that allow easier and faster transactions across Partner States. This is expected to reduce costs for businesses and improve access to regional markets.

The project further invests in digital skills development and innovation ecosystems, with a strong focus on youth and small and medium-sized enterprises (SMEs), which form the backbone of East Africa’s economy.

As implementation of the 7th Development Strategy begins, digital integration is increasingly being viewed as a core driver of economic transformation, trade expansion and job creation across the region.

Towards a fully connected digital market

EARDIP is widely regarded as a foundational pillar in the creation of the EAC Single Digital Market, a long-term vision aimed at enabling seamless movement of digital services, data, payments and commerce across East Africa.

By reducing transaction costs, improving digital infrastructure and harmonising regulatory frameworks, the initiative is expected to boost regional competitiveness and unlock new opportunities for businesses and citizens.

With the new budget cycle now underway, policymakers say digital transformation will play a decisive role in shaping the future of East Africa’s integration agenda, positioning the region as a more connected, competitive and digitally empowered economic bloc.

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