UNDERSTANDING THE EAST AFRICAN COMMUNITY (EAC)
What you need to know about East Africa Community-Summarized by Gen Museveni
The Protocol establishing the EAC Customs Union was signed in December 2004 and its implementation commenced on 1st January 2005. The Customs Union means that the EAC Partner States have agreed to establish free trade (or zero duty imposed) on goods and services amongst themselves and agreed on a common external tariff (CET), whereby imports from countries outside the EAC zone are subjected to the same tariff when sold to any EAC Partner State. Goods moving freely within the EAC must comply with the EAC Rules of Origin.
The following are some of the achievements we have attained as a Community by implementing the Customs Union:
Implementation of the Single Customs Territory and Simplified Trade Regime: Roll-out of movement of maritime goods on the Single Customs Territory (SCT) has been successfully undertaken. Goods are declared at the port of entry and will move through the community. As a Community were are implementing the Simplified Trade regime where good that meet the rules of origin and below $2000 are freely traded in the Community.
Customs Interconnectivity Programmes: Under the implementation of the Single Customs Territory all the revenue authorities of the region are interconnected.
Electronic Cargo Tracking System: Trucks/Cargo can be tracked electronically within the Community as it moves from point to another.
Resolution of Non-Tariff Barriers: As of April 2022, 65 Non-Tariff Barriers had been resolved
Economic growth: EAC region averaged 5.9 percent in 2021, compared to an average of 2.3 percent in 2020.
Trade Performance: Intra-EAC trade improved from US$ 2.7 billion in 2016 to US$ 2.9 billion in 2017. Intra-trade will further be enhanced by building region value-chain through alignment of investments in the targeted sectors such as textile, leather and pharmaceuticals.
Common External Tariff: The EAC has adopted a 4-band CET nomenclature of 0%, 10%, 25% and of 35%. The four-band structure will promote product capacity, industrialization and value chain development, protect revenue and promote the expansion of regional trade.
Trade facilitation and One Stop Border posts (OSBPs): So far, out of the initially targeted 15 OSBPs for construction, 12 are fully operational and an additional 10 have been earmarked for construction as OSBPs, making a total of 25.
EAC Micro, Small and Medium-sized Enterprises (MSMEs) Trade Fair: EAC held the 21st EAC Micro, Small and Medium-sized Enterprises (MSMEs) Trade Fair in December 2021 in Mwanza, Tanzania and was attended by 1,089 exhibitors (majority were mainly women & youth) from Partner States. Uganda will be hosting the 22nd EAC MSMEs Trade fair in December, 2022.
EAC Achievements under the Common Market
The Common Market is the second pillars of integration of the East African Community (EAC), which has been in force since 2010. To accelerate economic growth and development, EAC Partner States agree to maintain a liberal stance towards the four Freedoms of movement for all the factors of production and two Rights between themselves. These Freedoms and Rights include:
- Free Movement of Goods
- Free Movement of Persons
- Free Movement of Labour / Workers Free Movement of Service
- Free Movement of Capital; and
- Right of Establishment
- Right of Residence
The achievement attained so far in the implementation of Common Market, among others include:
Infrastructure: Various regional roads constructed for example resource mobilization for the construction of the MultinationalTanzania/Uganda road project, Masaka-Mutukula (90 km) in Uganda linking Mutukula-Kyaka and Bugene-KasuloKumunazi Road (163 km) in Tanzania is ongoing, feasibility studies are to commence for the Multinational Kenya-Uganda Road Project: Kisumu-Kisian-Busia and Kakira-Malaba (including Busitema-Busia spur), among others.
Energy: East African Centre for Renewable Energy and Energy Efficiency (EACREEE) has continued to implement the project on Energy Efficient Lighting and Appliances for Eastern and Southern Africa (EELA). Minimum Energy Performance Standards (MEPS) for refrigerators and air conditioners have been prepared and are awaiting adoption. EACREEE has continued with capacity building in solar and micro hydro. Fourteen (14) training sessions in hydro conducted and over 175 people have been trained.
Issuance of the New International EA e-Passport: All Partner States except RSS will have commenced issuance of the International EA e-Passport.
Free Movement of Persons and Workers: The EAC Common Market Protocol guarantees free movement of persons across the borders without restrictions.
Mutual Recognition Agreements: So far, four Mutual Recognition Agreements (MRAs) have been signed and are under implementation for the following professionals: Accountants; Engineers; Architects and Veterinarians.
Competition: The East African Community Competition Authority (EACA) is reviewing the EAC Competition Act which will facilitate the smooth implementation and enforcement of regional competition policy and law in line with international best practices.
Achievements in the Agricultural Sector: Key achievements in the agriculture sector are: development of a draft regional seed Bill and Regulations; adoption of Harmonized Pesticides Management Guidelines; Approval of nine sets of Policy Briefs on Aflatoxin management; and Adoption of the Mutual Recognition Procedure in order to harmonize registration procedures of Immunological Veterinary Products in the Community.
Achievements under the Monetary Union
The East African Monetary Union (EAMU) is the third stage in the process of East African Community (EAC) Regional Integration. The EAMU Protocol was adopted in accordance with the EAC Treaty and signed on 30th November 2013; it lays groundwork for a monetary union within 10 years and allows the EAC Partner States to progressively converge their currencies into a single currency in the Community.
EAC Partner States are now working on harmonizing monetary and fiscal policies; h financial, payment and settlement systems; financial 7 accounting and reporting practices; policies and standards on statistical information. The achievements in this Pillar include:
Establishment of EAMU Institutions: The Council is the process of stabling the Institutions that will support the Monetary Union these are; East African Monetary Institute (to transform into the EAC Central Bank), EAC Financial Services Commission; EAC Surveillance, Compliance and Enforcement Commission, and; EAC Statistics Commission.
Streamlining of EADB into the EAC Main Structure: A Regional Technical Working Group (RTWG) has been constituted and Terms of Reference to guide it have been developed.
EAC Open Data Portal: EAC tool for regional statistics was put in place and will have data on priority sectoral datasets of Merchandise Trade Statistics and Harmonized Consumer Price Indices. The overall objective is to make available regionally comparable data for monitoring the progress towards achieving the macroeconomic convergence criteria as set out in the East African Monetary Union (EAMU) Protocol.
Achievements under the Political Federation
The Political Federation is the ultimate goal of the EAC Regional Integration. The EAC Heads of State adopted the Political Confederation as a transitional model of the East African Political Federation. So far the following are achieved:
Constitution-Making Process for the Confederation: A regional team of constitutional experts is drafting the EAC Political Confederation Constitutional and now are at the state of stakeholder consultations in Partner States.
Election Observation: The EAC has continued to Monitor and observe elections in all Partner States.
EAC Early Warning Mechanism: Operationalization of National Early Warning Centres have been put in place.
Engagement of Women and Youth: EAC has a structured engagement of women and youth in peace and security initiatives in line with EAC Youth and Gender Policies and providing space for civil society to participate in Peace building efforts.
Cooperation in Defence: A major EAC Armed Forces Integrated Field Training Exercise is conducted annually with the aim of enhancing Partner States’ Defence Forces’ capabilities in jointly combatting complex security challenges faced in the region.
Opportunities ahead: there are more opportunities ahead;
- The increasing and expanded membership will provide a big market for the community;
- Existence of Political will among the Summit Members to foster and drive Integration;
- Adoption of the new Common External Tariff that will increase protection local industries and thus create employment; and
- Increased investment in trans-boundary infrastructure development will bring to greater connectivity.
The East African Community (EAC) is a regional intergovernmental organization of 7 Partner States: The Democratic Republic of the Congo, the Republics of Burundi, Kenya, Rwanda, South Sudan, Uganda, and the United Republic of Tanzania, with its headquarters in Arusha, Tanzania. The EAC is home to an estimated 300 million citizens, of which over 22% is urban population. With a land area of 4.8 million square kilometres and a combined Gross Domestic Product of US$ 240 billion (EAC Statistics for 2019), its realization bears great strategic and geopolitical significance and prospects for the renewed and reinvigorated EAC.
The work of the EAC is guided by its Treaty which established the Community. It was signed on 30 November 1999 and entered into force on 7 July 2000 following its ratification by the original three Partner States – Kenya, Tanzania and Uganda. The Republic of Rwanda and the Republic of Burundi acceded to the EAC Treaty on 18 June 2007 and became full Members of the Community with effect from 1 July 2007, while the Republic of South Sudan acceded to the Treaty on 15 April 2016 and become a full Member on 15 August 2016. The Community’s newest member, the Democratic Republic of the Congo acceded to the EAC Treaty on 8 April, 2022.
As one of the fastest growing regional economic blocs in the world, the EAC is widening and deepening co-operation among the Partner States in various key spheres for their mutual benefit. These spheres include political, economic and social.
At the moment, the regional integration process is in full swing as reflected by the encouraging progress of the East African Customs Union, the establishment of the Common Market in 2010 and the implementation of the East African Monetary Union Protocol.
The process towards an East African Federation is being fast tracked, underscoring the serious determination of the East African leadership and citizens to construct a powerful and sustainable East African economic and political bloc.
The EAC is home to 150 million citizens, of which 22% is urban population. With a land area of 1.82 million square kilometres and a combined Gross Domestic Product of US$ 146 billion (EAC Statistics for 2016), its realisation bears great strategic and geopolitical significance and prospects for the renewed and reinvigorated EAC.
Vision: The vision of EAC is to be a prosperous, competitive, secure, stable and politically united East Africa.
Our Mission: The mission of the Community is to widen and deepen economic, political, social and cultural integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments.
Our Values
Underpinning the EAC is our commitment to our values:
- Professionalism
- Accountability
- Transparency
- Teamwork
- Unity in Diversity
- Allegiance to EAC Ideals
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Quick Facts about EAC
Area (incl. water): | 4.8 million sq. km |
Population: | 177 million (2019) |
GDP (current market prices): | US$ 240 billion (2019) |
EAC Headquarters: | Arusha, Tanzania |
First established: | 1967 |
Re-established: | 7 July 2000 |
Official language: | English |
Summit Chairperson: | H.E. Uhuru Kenyatta |
Council Chairperson: | Hon. Betty Maina |
Secretary-General: | Hon. Dr. Peter M. Mathuki |
KEY EAC DATES
1967: EAC first established
1977: EAC dissolved
30 November 1993: Signing of Agreement for the Establishment of the Permanent Tripartite Commission for East African Co-operation
14 March 1996: Secretariat of the Permanent Tripartite Commission launched, full co-operation operations begin
30 November 1999: Treaty for the Establishment of the East African Community signed
7 July 2000: Treaty for the Establishment of the East African Community enters into force
18 June 2007:The Republic of Rwanda and the Republic of Burundi accede to the EAC Treaty
1 July 2007: Rwanda and Burundi become full members of the EAC
20 November 2009: Protocol for the Establishment of the EAC Common Market signed
30 November 2013: Protocol for the Establishment of the EAC Monetary Union signed
15 April 2016: The Republic of South Sudan accedes to the EAC Treaty
5 September 2016: The Republic of South Sudan becomes a full member of the EAC
20 May 2017: EAC Heads of State adopt the Political Confederation as a transitional model of the East African Political Federation.
8 April 2022: The Democratic Republic of the Congo accedes to the EAC Treaty
EAC Partner States: The EAC comprises 7 Partner States:
- Democratic Republic of the Congo
- Republic of Burundi
- Republic of Kenya
- Republic of Rwanda
- Republic of South Sudan
- Republic of Uganda, and
- United Republic of Tanzania
All Partner States prescribe to the principles and values outlined in the Treaty for Establishment of the East African Community.
Leaders of the Partner States – typically Heads of State or Government – give general directions and impetus to the development and achievement of Community objectives through an apex EAC Organ known as The Summit.
Every year, a Summit is a meeting of Heads of State or Government of EAC Partner States that is held to set key priorities at the highest, regional political level and discuss business submitted to it by the Council of Ministers.Admission to the Community is guided by criteria spelt out in Article 3 of the EAC Treaty.
EAC Organs: The main Organs of the EAC are the Summit, the Council of Ministers, the Co-ordinating Committee, the Sectoral Committees, the East African Court of Justice, the East African Legislative Assembly and the Secretariat.
The Summit: The Summit comprising of Heads of Government of Partner States gives strategic direction towards the realisation of the goal and objectives of the Community.
The Council of Ministers
The Council of Ministers (or simply, the Council) is the central decision-making and governing Organ of the EAC. Its membership constitutes Ministers or Cabinet Secretaries from the Partner States whose dockets are responsible for regional co-operation.
Every year, the Council meets twice, one meeting of which is held immediately preceding a meeting of the Summit. The Council meetings assist in maintaining a link between the political decisions taken at the Summits and the day-to-day functioning of the Community. Regulations, directives and decisions taken or given by the Council are binding to the Partner States and to all other Organs and Institutions of the Community other than the Summit, the Court and the Assembly.
The Council, each year, elects a Chairperson by rotation to serve a one-year term to the office of Chairperson of the Council of Ministers.
The Coordinating Committee
Under the Council, the Coordinating Committee has the primary responsibility for regional co-operation and co-ordinates the activities of the Sectoral Committees. It also recommends to the Council about the establishment, composition and functions of such Sectoral Committees. It draws its membership from Permanent / Principal Secretaries responsible for regional co-operation from the Partner States.Subject to any directions given by the Council, the Coordinating Committee meets twice a year preceding the meetings of the Council. Moreover, it may hold extraordinary meetings at the request of the Chairperson of the Coordinating Committee.
Sectoral Committees: Sectoral Committees conceptualise programmes and monitor their implementation. The Council establishes such Sectoral Committees on recommendation of the Coordinating Committee.The Sectoral Committees meet as often as necessary for the proper discharge of their functions.
The East African Court of Justice: The East African Court of Justice (or simply, the Court) is the principal judicial Organ of the Community and ensures adherence to the law in the interpretation and application of compliance with the EAC Treaty. It was established under Article 9 of the Treaty for the Establishment of the East African Community.Arusha, Tanzania is the temporary seat of the Court until the Summit determines its permanent seat. The Court established its Sub-registries in the Partner States, which are located in the premises of the National Courts.
The Court is currently composed of ten judges, appointed by the Summit from among sitting judges of any Partner State court of judicature or from jurists of recognised competence, and the Registrar who is appointed by the Council of Ministers.The Court has two divisions: an Appellate division and a First Instance division.
The East African Legislative Assembly (EALA)
The East African Legislative Assembly (EALA) is the Legislative Organ of the Community and has a cardinal function to further EAC objectives, through its Legislative, Representative and Oversight mandate. It was established under Article 9 of the Treaty for the Establishment of the East African Community.The Assembly has a membership comprising of 54 elected Members (nine from each Partner State), and 7 ex-officio Members consisting of the Minister or Cabinet Secretary responsible for EAC Affairs from each Partner State, the Secretary-General and the Counsel to the Community totalling 62 Members.
The Assembly draws the authority to establish its Standing Committees from its Rules of Procedure. It currently has 6 Standing Committees to execute its mandate:
- the Accounts Committee;
- the Committee on Legal, Rules, and Privileges;
- the Committee on Agriculture, Tourism and Natural Resources;
- the Committee on Regional Affairs and Conflict Resolution;
- the Committee on Communication, Trade and Investment, and
- the Committee on General Purpose.
The EALA Commission which oversees the management of the Assembly is established following the enactment of the Administration of the EALA Act 2012.
The Secretariat: The Secretariat is the executive Organ of the Community. As the guardian of the Treaty, it ensures that regulations and directives adopted by the Council are properly implemented. In service of the Community, the Secretariat comprises the Secretary-General, 4 Deputy Secretaries-General, the Counsel to the Community and hundreds of EAC staff members who carry out the day-to-day work of the EAC as mandated by the Council. The Secretary-General is the principal executive and accounting officer of the Community, the head of the Secretariat and the Secretary of the Summit; he/she is appointed by the Summit for a fixed five-year, non-renewable term.
The Deputy Secretaries-General are appointed by the Summit on recommendations of the Council and on a rotational basis. They deputise the Secretary-General and each serves a three-year term, renewable once.The Counsel to the Community is the principal legal adviser to the Community.
The EAC Institutions: The Community has a number of semi-autonomous institutions that help it implement its mandate. These EAC institutions include:
- The Civil Aviation Safety and Security Oversight Agency (CASSOA); The Civil Aviation Safety and Security Oversight Agency works in the civil aviation sector towards air transport services that are safe, efficient and profitable as well as adoption of common policies and harmonization of civil aviation rules and regulations.
- The East African Competition Authority (EACA); The East African Community Competition Authority (EACA), which is an institution of EAC is mandated to promote and protect fair trade and to ensure consumer welfare in the community pursuant to EAC Competition Act, 2006.Specifically, the Act is aimed at enhancing the welfare of the people of the Community by:
- Protecting all market participants freedom to compete by prohibiting anticompetitive practices
- Protecting the opening of partner states markets against creation of barriers to interstate trade and economic transactions by market participants
- Guaranteeing equal opportunities for market participants in the Community – SMEs
- Guaranteeing a level playing field –eliminating any discrimination by partner states on the basis of nationality or residence
- Providing consumers access o products and services at competitive prices and better quality
- Providing incentives to producers – improvement of production and products through technical and organizational innovation
- Promoting economic integration and development in the community by creating a conducive environment for investment in the community and bringing the EAC competition policy and law in line with international best practice.
- The East African Development Bank (EADB); The East African Development Bank is a development finance institution with the objective of promoting development in the member countries of the East African Community. At 50 years old, the East African Development Bank has out-lived most of the population of its member states (Kenya, Rwanda, Tanzania and Uganda). Indeed, given the median age of the population in EADB’s member states is below 30, the East African Development Bank was born in the same generation as many of East Africa’s grandparents today. Like East Africa’s grandparents, the East African Development Bank has seen the region’s vibrant history, including the immediate aftermath of independence from British colonial rule, regional and civil wars, droughts, regional and international economic crises, but also the evolution of democracy, regional economic diversification and the discovery of natural resources in all EADB member states.
- TheEast African Health Research Commission (EAHRC); The East African Health Research Commission coordinates and maps out a regional agenda on health research as well as the translation of its results into policy and practice within the Partner States
- The East African Kiswahili Commission (EAKC); The East African Kiswahili Commission coordinates and provides advice to the Partner States on all matters related to Kiswahili research, teaching, learning and development as the lingua francaof the Partner States.
- The East African Science and Technology Commission (EASTECO); The East African Science and Technology Commission governs the Partner States co-operation in the development and implementation of Science and Technology
- TheInter-University Council for East Africa (IUCEA); The Inter-University Council for East Africa coordinates harmonization of higher education and training systems in East Africa, facilitates their strategic development and promotes internationally comparable standards and systems.
- The Lake Victoria Basin Commission (LVBC); The Lake Victoria Basin Commission focusses on coordinating the various interventions on the Lake and its Basin.
- TheLake Victoria Fisheries Organization (LVFO). The Lake Victoria Fisheries Organization (LVFO) is a specialized institution of the East African Community (EAC) whose mandate is to coordinate the management and development of fisheries and aquaculture resources in the EAC region. The LVFO was established by a Convention in 1994 and registered as a regional fisheries management organization under the UN Charter of the Food and Agriculture Organization (CAP 102).
The idea of having an institution to coordinate the management of fisheries resources in the EAC region was conceived way back in 1928 and centered on the riparian states of Lake Victoria (Kenya, Uganda and the United Republic of Tanzania). This idea gave rise to the establishment of the Lake Victoria Fisheries Service and later the East African Fresh Water Fisheries Research Organization from 1947 until 1977 when the old East African Community collapsed. The FAO sub-Committee of Inland Fisheries and Aquaculture then took over the coordination of the Lake Victoria fisheries, leading to the formation of the LVFO in 1994.The Convention establishing the LVFO was reviewed in 2016, and expanded the scope and mandate of the organization to include Burundi and Rwanda to the original three countries; extended its focus beyond Lake Victoria into covering all water bodies in the EAC region; and gave aquaculture more prominence as a priority area of focus in addition to capture fisheries.