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East Africa: Eac Regional Market Set to Expand

Joseph Bonyo

14 November 2009

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Nairobi — The quest for a common market for the five member states of the East African Community comes to a reality on Friday. The heads of states will put pen to paper to the protocol giving life to a common market at a ceremony to be held in Arusha, Tanzania.

And with the move, regional traders and companies will have a wider zone to operate given the increased number of potential customers that they will be able to target to market their products.

Turning point

According to the secretariat, arrangements for the occasion that will mark a turning point for the East Africa Customs Union are complete. The protocol comes into effect on the 1st of January next year. Member states will, however, have six months to ratify it after signing which makes July 1st the earliest date by which East Africans can enjoy the fruits of the common market.

"The secretariat is expected to send the signed protocol to national governments for ratification according to their national laws," PS David Nalo told journalists earlier in the week.

Selling bloc

Talks on the common market protocol began two years ago and its realisation has been hailed as the gateway to a global economy for the region. This has also seen several initiatives put in place by member states aimed at selling the area as a bloc market.

However the road to the protocol has not been smooth as several demands by member states had to be either met or harmonised. Among the issues that cropped up at the last stages were on rights of permanent residency, land and identity cards.

Of significance was Tanzania's feeling that the initial clauses contained in the draft protocol were not in its favour and called for renegotiation. This resulted into the delaying of the signing. The issues have, however, been dealt with.

The EAC Customs Union initiative started in January 2005 with three partner states, Tanzania, Uganda and Kenya. Burundi and Rwanda joined the bloc in 2007 but started implementing the customs union in July 2009.

Been successful

The East African Community collapsed 32 years ago in 1977 following differences among the three governments. But 10 years ago the new outfit was established and has been successful in creating an enabling social and economic environment for its citizens. This has spanned a number of areas including education, business and infrastructure development.

But even as the member states move into the common market, the status of infrastructure development in the EAC region remains in focus. This has been pegged on key areas such as energy, transport, water and communication.

An assessment by the heads of governments during an investment forum in Nairobi noted that the region had achieved a limited level of development leaving huge potential for investments.

Realised benefits

Even though the implementation of the various instruments of Customs Union faced a number of challenges during the transitional period, the region has realised benefits in terms of increased revenue, rise in intra-trade and new investments.

Recently, private sector players under the aegis of the East African Business Council gave their audit on the steps towards the integration. According to the council, the partner states should expedite the process of harmonising the customs enforcement regulations.

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