EAC tables sh379b budget for 2018/19

The EAC has presented for consideration budget estimates for the financial year 2018/19, totalling $99,770,716 (about sh379b) to the East African Legislative Assembly (EALA).

The chairperson of the EAC council of ministers, and Uganda's 2^nd Deputy Prime Minister, Ali Kirunda Kivenjija, presented the budget to the assembly in Arusha Tanzania.

The 2018/19 budget is a step-down from the $110,130,184 presented to the House in the previous financial year, a statement issued yesterday said.

According to Kivejinja, priority Interventions for 2018/19 will focus on enhanced free movement of goods in the region and further liberalization of free movement of labour and services; improved cross-border infrastructure to ease cost of doing business in the region; and enhanced regional agricultural productivity.

Other priority interventions include enhanced industrial development through investment in key priority sectors including leather and textile; skills development, technological advancement and innovation to stimulate economic development. The implementation of the roadmap for the attainment of the EAC Monetary Union; strengthened Peace, Security and Good Governance and Institutional Framework for EAC Political Confederation are also set for consideration.

The 2018/2019 Budget is allocated to the Organs and Institutions of the EAC as follows; East African Community Secretariat ($46,693,056), East African Legislative Assembly ($17,885,852) and the East African Court of Justice ($3,982,446). The Inter-University Council for East Africa shall receive ($6,847,969), Lake Victoria Basin Commission ($13,357,673) while $ 2, 518,137 is earmarked for the Lake Victoria Fisheries Organization.

On their part, the East African Science and Technology Commission shall receive ($ 1,661,779), East African Kiswahili Commission ($ 1,605,353) and the East African Health Research Commission ($ 4,204,032). The East African Competition Authority is to benefit from $1,014,418 in the Financial Year 2018/19. The 2018/2019 Budget is to be financed by Partner State contributions through the Ministries of EAC Affairs ($50,227,920); Ministries responsible for Education - ($ 4,466,210) and Ministries responsible for Fisheries ($ 1,551,032). Development Partners will support the Community to the tune of ($42,925,613) while Member Universities will inject in to the kitty $ 333,970. The miscellaneous revenue is pegged at $ 265,971.

Other key areas, Kivenjija said, include further consolidation of the Single Customs Territory (SCT) to enhance intra-EAC trade, leading to reduction in the cost of doing business in the region and the development of regional infrastructure, thereby reducing transport costs, and easing cross-border movement of people, goods and services. The funds are also earmarked to enhance implementation of the EAC Common Market Protocol, with particular emphasis on free movement of skilled labour across the Partner States.

Promotion of peace, democracy and security across the Partner States as well as efforts towards full participation of the Republic of South Sudan in the activities of EAC are other areas of priority for the Community in the coming Financial Year.

The EAC is further expected to streamline and further consolidate its operational systems to achieve the desired level of efficiency, accountability, and value for money.

Last Financial Year, the august House approved a Budget of USD110, 130,184. The said amount was earmarked for among others; consolidation of the Single Customs Territory (SCT) to cover all imports and intra-EAC traded goods; Infrastructural development in the region and liberalization of free movement of skilled labour across the Partner States.

The second Deputy Prime Minister cited a number of assumptions on which this year's budget is pegged on to include the continued and consolidated political support of the EAC integration and the availability of adequate financial resources and remittances. Political stability and good governance as well as safe and stable security across the region are other areas of consideration.

Kivenjija said the region had continued to realise significant growth and development even though there were mixed results. "The EAC region maintained its position as the fastest-growing sub-region in Africa, with estimated growth of 4.6 % in 2017, up from 4.4 % in 2016", the Chair said.

Strong growth was widespread in the region, with Kenya, Rwanda, Tanzania and Uganda growing at more than 5%. Kivenjija said the Council of Ministers is to further initiate Bills that support the establishment of the East African Monetary Union. In particular, the Council shall initiate the East African Surveillance Compliance and Enforcement Commission Bill 2018 and the EAC Financial Commission Bill, 2018, in compliance with the Protocol on the Establishment of the East African Monetary Union.

The Chair of Council of Ministers further lauded the Assembly for the speed with which it is carrying out with its mandate.

On Infrastructure, the Minister informed the House of the completion of the Taveta - Mwatate road, which is part of the multinational Arusha - Holili/Taveta - Voi road and its commissioning in July, 2017. On the side of the United Republic of Tanzania, the dual construction of the14 Km long Sakina - Tengeru section, was completed while the construction of the 42-km long Arusha Bypass is in progress. The Minister further informed the House of the completion of the Mombasa-Nairobi standard gauge railway (SGR) line in Kenya and stated the phase II from Nairobi to Naivasha was ongoing and expected to be completed by 2019.

On Civil aviation and airport matters, the House was informed the EAC Secretariat had completed the draft regulations to guide the Partner States in quest to fully liberalize their Air Transport Services. The rationale for this, the Minister said is in order to achieve improved efficiency, enhancement in capacities and eventually lowering the cost of air transport in the Region.

I am pleased to inform you that the EAC is strongly committed to support implementation of the June 2014, African Heads of State Malabo Declaration on Agriculture Growth and Transformation in Africa. In June 2017 Ministers responsible for Agriculture in the EAC Partner States and other key regional stakeholders signed the EAC Comprehensive African Agricultural Development Programme (CAADP) pact. Further, the EAC Regional Agriculture Investment Plan (RAIP), which will be a key instrument in rallying financial and technical support to spur agricultural transformation was developed and is now awaiting consideration and adoption by the 11thSectoral Council on Agriculture and Food Security.

The House will debate the budget proposals.