12 years of EAC: Uganda reviews its experience

By Gilbert Kidimu
It has been 12 years since the East African Community (EAC) was revived. So many promises of a prosperous economy were made. It would be characterised by a wider market for farmer’s produce, free trade and movement of goods, job creation and an assurance of numerous exciting traits associated with the USA.

The EAC, comprising five countries of Burundi, Kenya, Rwanda, Tanzania and Uganda, agreed to an expanded free trade area including the member states of all.

In 2010, it launched its own common market for goods, labour and capital within the region, with the goal of a common currency and full political federation.

These are the reasons for the East African Community Stakeholders Review Workshop taking place today and tomorrow at Hotel Africana. Organised by the East African Community in collaboration with Trade Mark East Africa, the workshop aims to review EAC integration in Uganda over the past 12 years.

According to James Kintu, Under Secretary Ministry of East African Community Affairs, the theme, “Uganda’s 12 years’ experience in East Africa Integration” focuses on achievements, opportunities, challenges, and way forward towards the progress towards political federation, which is the ultimate goal. It will be graced by diplomats, East African Community Secretariat and its organisations and institutions, Ministers of East African Community Affairs from the five partner states, permanent secretaries of all government ministries, chief executives of government departments and agencies, civil society organisations, institutions of higher learning and on-government organisations, among others

“The meeting seeks to discuss where we have come from, where we are, and addresses the challenges,” he explains adding that the EAC is people-centred integration.

Political Integration is possible

It has been said by not only some but many that political integration in East Africa cannot happen in a million years. Seeing our different political systems, the mere thought of Uganda having a Kenyan president or vice versa is anything but practical. As a result, while many warm up to complete economic integration, there are hardly a few who believe the idea of political integration is within grasp in many years to come.

However, Permanent Secretary, Edith Nsajja Mwanje is optimistic that East African political integration will soon be within reach.

“The treaty which establishes the East African Community encourages one economy, harmonising our laws on trade together, agriculture, health, education curriculums, among others,” she says adding that the boundaries in East Africa are no more. “Once the boarders were opened, East Africa became one Unit.”

EAC she says is aiming at a central decision making kind of organisation, to have one president, a single foreign policy, harmonise security and defence system, although some decisions regarding things such as land remain at state level, like the Americans do with their states. Uganda too makes some decisions independently.

But decisions regarding foreign policy are done as EAC. “We are negotiating economic agreement with the European Union as East Africa. On such things we go as one, which makes it easier for us all.”

She argues that the integration is systematic. One thing leads to another, and before you know it, full political integration will be a walk in the park.

Highlights

“The biggest achievement is we seat on one table and make decisions as one entity, handling matters of the economy,” says Mwanje. “For example we have removed internal taxes; there are zero internal tariffs under the customs Union, if the good has been produced within the region.”

There is also a common customs Management Act, which requires preferential treatment for East Africans. She says because of the removal of internal trade barriers, there is increase of trade within East Africa. “Trade increased by 100% from 2005 to date,” she reveals explaining that it proves that the framework is working.

Just like the Nakumatts (supermarket) and KCBs (Kenya Commercial Bank) from Kenya are here, she says Ugandan goods fill supermarkets in Rwanda, Burundi, Bukoba and Mwanza in Tanzania. Uganda has more students coming in from Burundi and Rwanda while the old-timers from Kenya and Tanzania keep flowing in and the numbers just keep growing

Impediments

While integration has and is registering a number of feats, it also faces a number of tests. Communicating East African Integration to the different sectors is still a challenge. “All Ugandans must understand integration in order to benefit fully from it,” reasons Kintu.

Limited resources are another challenge. People going out there talking about it and letting everyone know, translating information to different languages, reproducing the messages through the different media outlets such as radio and television, requires a lot of money.

The pace of implementation varying from country to country is slow amongst all; at least not fast enough, according to Mwanje. She cites the removal of non-tariff barriers which has taken long to be fully implemented due to unawareness.

“People still smuggle goods to avoid taxes that don’t exist,” she reveals. “If goods are below 100 dollars, you don’t have to pay any taxes as long as they have been produced within the region,” she explains adding that the roadblocks which are placed for security matters inhibit the free movement.

Poor infrastructure is another challenge to trade within the union is facing. The lack of rail transportation and bad roads make the transportation process slow and expensive, which defeats the purpose of the benefits of free trade.

The future looks bright

Member states are fundraising to put up infrastructure for railways, roads, and improve air transport.

“We are working with the Ministry of Finance to make sure other ministries embed and prioritise EAC matters in their budgets,” she says adding, “We read our budgets on the same day, which shows harmony between us.”

“We want to share our resources basing on our strength so that there is no wasting caused by too much supply.”

By Gilbert Kidimu

Ugandans should exploit EAC

When news broke that the East African Community would finally come to pass, and boarders would be open for free trade and movement of labour; amid excitement was apprehension to our aggressive Kenyan counterparts. Kenyans are fast and work harder than carpenters, hence take up jobs as managers in banks, hotels, supermarkets, and etcetera.

That’s not all. The fact that farmers can very easily move their produce to our neighbours to get better prices would send food prices soaring back here. To justify these misgivings, part of the reason food prices soared in 2011 was blamed on availability of a ready market in Southern Sudan and Kenya.

However, a lot of rice consumed in Uganda is from Tanzania. Fruits and vegetables such as apples, mangoes, and carrots come from Kenya.

“It is not only Uganda which provides food for other countries in the region, although we have the potential to feed the entire region and have enough for ourselves,” details James Kintu, Under Secretary Ministry of East African Community Affairs.

He says the EAC is nothing but a blessing for Ugandans, reasoning that since agriculture is our niche, all we need are serious commercial farmers. The presence of a regional market should be good news because Uganda has the most potential. “All we have to do is poise ourselves for mass production, deliberately producing for the East African Market.” “Ugandan farmers will benefit a lot,” he reassures.

He reminds us that while Kenya has a lot of industries and the population known to be very aggressive, Ugandans need to take advantage of what we have. As mentioned before, no one beats us at fertile soils, and our education system cruises passed the rest. “Let us build and improve on those and we shall have a lot to gain.”

This framework looks at where you have an advantage. In every business, every individual has a niche, Kenya might have a niche in services (the fact many Ugandan corporates are afraid of) but Uganda too has its strength as pre-empted.

‘These inequalities will soon level out,” reasons Kintu. “Competition breeds hard work and learning, we shouldn’t be apprehensive; we should take up this opportunity.”

He says Uganda is positioning itself to actively participate sector by sector. We have to make sure we add value onto the maize, increase shelf life of your produce, improve on our roads and push for the railway to be put in place.

Also, the transport sector in the East African Community could be boosted if the new East African common markets protocol is enacted.

Investors especially in Uganda who depend on road transport to get goods from Mombasa and Dar es Salaam have for long complained about the high costs incurred due to the strict regulations concerning transportation of goods.

A farmer in Masaka, south western Uganda, sprays his maize crop. Farmers will benefit from the EAC market

For Uganda, however, overall statistics indicate that intra-regional trade has greatly risen, which means instead of over reliance on far away trading partners, the EAC has turned to itself and is benefitting from closer trade collaboration.

Uganda’s central location and land-linked position in the heart of the five states has benefitted the country and seen it emerge as a major supplier of the other states.

Fredrick Jjemba responds to New Vision’s online story on common market under test, saying the aim of economic integration is not to just compete but to use comparative advantage in those areas where one enjoys monopoly.

“For instance had Uganda developed her hydro-electric power fully, she would have enjoyed by exporting to Kenya and Tanzania which have ports but few HEP stations,” he argues saying it is not late to identify those areas where we have an advantage and maximise production. “Surely a bigger market is better than a small one.”

“Kenya had a head-start in industrialisation and we cannot compete with them. We can’t compete with KQ (Kenya Airways) and tourism, which they have combined with horticultural exports to EU countries.”

“But there are other areas our leaders should have identified by now, or else mere participation in the EAC meetings would be a waste of time,” reasons Jjemba.

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