Bageine presents $130m EAC budget to Assembly

May 31, 2013

Uganda’s state minister for East African Affairs, Shem Bageine, Thursday presented budget estimates for 2013/2014 totaling $130,429,394 to the East African Legislative Assembly sitting in Kampala.

By Vision Reporter

Uganda’s state minister for East African Affairs who is the chairperson of the EAC Council of Ministers Shem Bageine Thursday presented Budget estimates for the Financial Year 2013/2014 totaling $130,429,394 to the East African Legislative Assembly sitting in Kampala.
 

The 2013/2014 Budget down from $140million in the previous Financial Year, prioritizes consolidating the Common Market; completion of negotiations and movement towards the East African Monetary Union Protocol; investment promotion and private sector development; co-operation in cross-border infrastructure; enhancing the extractive and processing industries; implementation of the critical activities of EAC Food Security and the mainstreaming of policies, programmes and projects related to gender.

Bageine highlighted a number of achievements registered in the FY 2012/2013, notably the successful finalization and adoption of the requisite customs legal and operational requirements coming into play of customs transit information (RADDEx 2) and the passing of key legislation strengthening integration.  
 
Other areas of achievements, the minister noted, included the completion and commissioning of the rehabilitated Arusha-Namanga-Athi River road, the relocation of the EAC into the new Headquarter and enhanced sensitization and outreach programmes.   
On energy, the Chair of the Council of Ministers affirmed the region’s commitment towards ensuring sustained and efficient energy use.  In this regard, Bageine informed the House that the EAC had signed an MoU with the UN International Renewable Energy Agency to realize the objective and that work was in progress.  

 The EAC, Bageine added had further promoted the region as an emerging destination in oil and gas exploration, development and production.  
 
On the Common Market, the Minister enumerated the achievements and gains realized. ‘The most significant development during the period under review is that the Republic of Rwanda enacted a new immigration law (No 19/2011) which encompasses all provisions of the Common Market Protocol with regard to the free movement of persons and labour.
 
 The Republic of Kenya also repealed the following laws that were inhibiting free movement of persons; Immigration Act (Cap 172), Alien Restriction Act (Cap 173) and Visa Regulations. These laws were replaced by the following new laws: Kenya Citizenship and Immigration Act No. 12 of 2011 and Kenya Citizens and Foreign Nationals Management Act No.31 of 2011. Uganda too enacted a new law on insolvency in 2011 that conforms to the Common Market Protocol’, the Minister remarked.
 
The minister stated that the region had maintained real GDP at 5.5% against a harsh economic environment.  The minister however, reported of a significant drop in inflation from 20.1% to 8.5% aided by monetary policy tightening and lower food prices associated with a recovery in local food production.
 
 “Global prospects for 2013 have improved but the road to recovery in the advanced economies will remain a bumpy one. The Sub-Saharan Africa region’s economic growth is projected to remain constant at 5.3 percent in 2013. In the EAC, however, economic growth is projected to expand by 6.1 percent,” Bageine stated.

 “The generally strong performance is to a significant extent expected to accrue from ongoing investment in infrastructure and productive capacity and continuing robust domestic consumption in the region. Consumer prices are projected to ease from 8.5 in 2012 to 7.4 percent in 2013 while the current account deficit as percentage of GDP is expected to improve marginally to about 10.6 percent”, he added.
 
Presenting the Budget estimates, the Council Chairperson noted that among the identified priority areas, were the interventions in the Customs Union leading to establishment of a single customs territory.  Bageine observed that the single customs territory “will crystallize the gains of integration characterized by minimal internal border controls and a more efficient institutional mechanism in clearing goods”
On implementation of the Common Market Protocol, the emphasis will be on operationalization of the free movement of labor provisions, as well as the integration of the regional financial markets to allow for free movement of capital.

 
Co-operation in cross-border infrastructure development will see the commencement of construction of the rehabilitation of the Kayonza-Rusumo (Rwanda) and Rusumo-Rusahanga road (United Republic of Tanzania), upgrading of the Nyakanazi –Kasulu-Kidahwe- Manyovu section (United Republic of Tanzania), rehabilitation of the Nyanza Lac – Rutunga (Burundi) and the assessment to profile the Kitale-Endebess –Suam in Kenya to Suam in Uganda.
 
 
The African Development Bank (AfDB) is further expected to support the execution of priority studies under the EAC Railways Master Plan with the Studies expected to commence in September 2013 according to the Minister.
 
On co-operation in political affairs, the Minister remarked that the EAC would conduct national consultations on the model of the structure of the EAC Political Federation.  The consultations process is expected to be held in the coming months with a report on the progress made at the 15th Summit of EAC Heads of State in November 2013.
 
 
Other areas of priority for the 2013/2014 budget include the implementation of the Free Trade Area under the Tripartite EAC-COMESA-SADC initiative, implementation of the EAC Food Security and Climate Change Master Plan, enhancing the EAC Industrialisation Strategy and the support for the critical activities of Lake Victoria Basin Commission.
 
The Budget is allocated to the Organs and Institutions of the EAC as follows; East African Community Secretariat ($69,787,824), East African Legislative Assembly ($13,089,982) and the East African Court of Justice ($4,279,489). The Inter-University Council for East Africa shall receive $ 9,692,785 while $ 3,203,042 is earmarked for the Lake Victoria Fisheries Organisation.

 
The FY 2013/2014 Budget is to be financed by Partner State contributions through the Ministries of EAC ($37,297,442); Partner States through other agencies ($7,249,252); Development Partners support ($85,676,850); and other income ($205,850).
 

 

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