East African Business Week (Kampala)
Kelvin Magwar & Edris Kisambira
27 August 2007
Arusha — A common market and a single currency will now take centre stage as the East African Community (EAC) moves towards a political federation.
This decision has been reached at by the 6th Summit of the Heads of State of the EAC. But the position has been adopted after most Tanzanians rejected the proposal to fast track the EAC political federation.
The decision to put the fast-tracking process on the backburner has also been informed by evidence, which has seemed to suggest over the past 12 months that the political federation process was moving ahead of a common market and a monetary union, crucial ingredients for any kind of union.
The common market would allow the free circulation of goods and movement of the people within the now expanded EAC. To ease movement, one common passport will be used within the five countries.
The summit decided that it was paramount to achieve a common market and a monetary union by 2012 before the fast tracking is given much weight.
Presidents Yoweri Museveni of Uganda, Jakaya Kikwete of Tanzania, Mwai Kibaki of Kenya, Paul Kagame of Rwanda, Amani Abeid Karume of Zanzibar (as an observer), Burundi Vice President Gabriel Ntisezerana and EAC secretary general ambassador Juma Mwapachu.
Ambassador Mwapachu said the postponement should give room to the newly introduced members Rwanda and Burundi ample time to gauge their people's views on the EAC.
Mwapachu said the EAC secretariat ought to explore the possibility of achieving the threshold of the Customs Union before fast tracking was fully relied on.
He said the EAC secretariat should quickly propose an East Africa Industrial and Investment Strategy supported by an institutional decision making authority, with a view to promoting equitable industrial development in the region before the community funds the fast tracking exercise. Sources at the summit said it was necessary for the EAC to amend some provisions in the EAC treaty to facilitate effective participation of Rwanda and Burundi in the process.
The treaty requires the integration to go through four stages: a customs union, a common market, a monetary union and a political union.
The chairman of the council of ministers, Mr. Eriya Kategaya, said negotiations among partner states on the common market starts next month.
The secretary general said the idea of having a federated EAC by 2013 had to be halted to give additional sensitisation to the people of the community so they get to understand the benefits of the EAC.
Mwapachu said the leaders came up with the new position after considering a report on the EAC position on negotiations to bargaining with one voice in the Economic Partnership Agreements (EPAs) with the European Union (EU).
Mwapachu said it was decided so to give room to the five nations of the community to foster economic links first, until the ultimate goal of having a political union is achieved.
Rwanda and Burundi, who were attending the summit for the first time since their admission in June, have been asked to speed up the process of integrating fully in the Customs Union, which came into force on January 1, 2005.
While there has been overwhelming support for a political union, there has been less support from Tanzania because of questions regarding land, employment, security and other natural resources.
Findings show most Tanzanians are still afraid their country risked being infected with ethnicity problems and corruption.
There is also fear of loss of sovereignty.
Tanzanian citizens also fear Kenyans will take advantage to migrate to Tanzania and take up legal rights there.
Summit chairman Museveni allayed those fears saying, "these questions are easy to answer and cannot form an obstacle at all."
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