Forwarded to API by Leo Odera Omolo
Address by the Deputy Secretary General (Projects and Programmes), East African Community, Amb. Julius Onen to the Orientation Seminar for Members of the East African Legislative Assembly from Burundi and Rwanda, AICC, Arusha 11 June 2008
Rt. Honourable Speaker of the East African Legislative Assembly
Honourable Members of the Assembly
Distinguished Guests
Ladies and Gentlemen
I am greatly honoured to address this distinguished audience on the occasion of the Orientation Seminar for Members of the East African Legislative Assembly from Rwanda and Burundi. Let me at the outset convey the apologies of the Secretary General, Amb. Juma Mwapachu who had very much looked forward to being here with you today but unfortunately he is indisposed and has assigned me to represent him. On behalf of the Secretariat, I would like to take this opportunity to extend warm welcome to you. We look forward to your valuable contribution to the Community in the discharge of your important responsibilities and assure you of our best co-operation and support.
In making my presentation on an Overview of the EAC I would like to place my address in the context of a reflection on the vision, mission, objectives of the Community, and the expectations of East Africans from the operations of the Community. I will also highlight some of EAC’s achievements, challenges and prospects and conclude with some observations on the important issue of harmonious relations among the Organs and Institutions of the Committee towards efficient performance and achievement of integration and development objectives.
Vision and Mission of the EAC
The main goal for the East African Community, as an economic and political entity, stems from the desire by the governments of the EAC countries to improve the standard of living of the population through increased competitiveness, value-added production, trade and investment. This is aimed at promoting the sustainable development in the region with a view to creating a prosperous, internationally competitive, secure, stable and politically united region. The five EAC Partner States are keenly aware that with pooling their resources and potential, they are in a better position to realize and sustain common development goals more easily than by national efforts alone.
It should be noted that the justifications for many regional integration arrangements are mainly economic. In the case of East Africa however, the common history, language, culture and personal ties invoke a deep-rooted and longstanding commitment by the Partner States to deepen co-operation in a broad range of political, economic, social and cultural programmes. According to the EAC Treaty, the vision of the Community is to be realised in an incremental progression through the stages of a Customs Union; a Common Market; a Monetary Union; and ultimately a Political Federation of the East African States.
Progress/achievements of the EAC
Steady progress has been made since the resumption of regional co-operation/integration in East Africa through the series of the EAC Development Strategies. The first East African Co-operation Development Strategy (1997-2000) focused on the development of the policy framework for regional co-operation. This culminated in the signing of the Treaty for the Establishment of the East African Community.
The Second East African Community Development Strategy (2001-2005) was launched in April 2001. That Strategy focused on the implementation of selected regional projects and programmes; institutional development; and, most significantly, the launching in 2005 of the East African Community Customs Union.
The Third East African Community Development Strategy (2006-2010) was launched in November 2006. This strategy focuses on the consolidation of the Customs Union; establishment of the East African Common Market; deepening infrastructure development, Industrialization , promoting East African agricultural and rural development and the Lake Victoria Basin Development Programme.
Among the significant achievements that have been made since the resumption of regional co-operation in East Africa are those in confidence building and the harmonization of Partner States’ policies and programmes. A primary objective is the construction of a common East African identity within the vision of a fully integrated East Africa, where there shall be guaranteed movement of factors of production.
Steps already taken in this regard include the introduction of the East African Passport and harmonisation of vehicle transit procedures and requirements to ease border crossing. In addition, policies continue to be pursued towards extending national status treatment to East African nationals in any of the Partner States with respect to access to services in the fields of health, education and training, tourism and communications, among others.
Other achievements include the convertibility of East African currencies. Preparations are underway towards the introduction of a Common Market by 2010 and the ongoing revival of regional co-operation in various fields of research, human resources development and science and technology. Co-operation in political affairs involve activities in the areas of legal and judicial affairs, regional defence and security and co-ordination of foreign policy. Similarly, progress has been made in the identification and development of regional infrastructure projects cutting across roads, railways, civil aviation, posts and telecommunications, energy and the Lake Victoria Basin Development Programme.
Expanding Regional programme
The launching in 2007 of the full operations of the Lake Victoria Basin Commission as well as the establishment of new Commissions, notably the East African Science and Technology Commission, East African Health Research Commission, East African Kiswahili Council and the East African Community Civil Aviation Safety and Oversight Agency have phenomenally expanded the regional programme.
Coupled with this expansion of the regional programme, the encouraging progress of the East African Customs Union, established in 2005, the enlargement of the Community with the Admission of Rwanda and Burundi, the ongoing negotiations of the East African Common Market and the Summit directive that EAC achieves a Monetary Union by 2012, all underscore the serious determination of the East African leadership and citizens to construct a powerful and sustainable East African economic and political bloc.
The region has great potential to turn into an epicentre around which a wider Community could be built. Already, with the admission of Rwanda and Burundi, the resource base of the Community is raised with exciting prospects for rapid progress towards EAC’s transformation into a middle income economy by the year 2020. Today, we speak of a large regional economic bloc with a combined population of 120 million, land area of 1.85 million square kilometres and a combined gross domestic product of $ 41 billion that bears great prospects and potential for socio-economic transformation. Indeed, the East African Community is strategically located to become the economy hub under an Eastern and Central African economic entity.
Trade, Finance, and Investment
In the area of trade, finance and investments, the EAC Customs Union has proceeded very well. The positive impact of the Customs Union on increased intra-EAC trade and growth of revenue is felt and shared in all the Partner States since the establishment of the Customs Union. All the EAC countries have reported increased revenues as well as increased direct foreign investments (DFIs). These developments give confidence and comfort where, at the beginning, there were expressions of fear and diffidence over the introduction of the Customs Union. Consequently, the mood is upbeat as the negotiations proceed to the establishment of the Common Market.
Transport and Communications
There have been similar achievement and progress in the transport and Communications sector. Steady progress has been maintained on the East African Road Network Project, in particular, the Mombasa – Katuna Road (Northern Corridor) and the Dar es Salaam – Mutukula Road (Central Corridor), which have been taken to the implementation stages. Works on these roads are now targeted for completion in the next two years. The construction of the Arusha-Namanga- Athi River road has commenced on the Kenya side to be followed before the end of this year with the commencement of constructions on the Tanzania side. Meanwhile feasibility and design studies continue for the Arusha – Holili – Taveta – Voi; and investment preparations for the Tanga – Horohoro – Malindi road.
On the Railways sub sector, the East African Railways Master Plan Study has been well sustained and its implementation has been prioritized under the ongoing implementation of the 3rd EAC development Strategy (2006-2010).
In the Civil Aviation sub-sector, the East African Community has established the regional agency to oversee the implementation of the International Civil Aviation Organization’s (ICAO) standards and recommended practices towards the enhancement of aviation safety and security. The Partner States have established the EAC Civil Aviation Safety and Security Oversight Agency (CASSOA) the first such regional arrangement in Africa under the ICAO programme.
Agriculture and food security
EAC continues to place emphasis on agriculture and food security. The instruments in the development of Agriculture and attainment of Food Security for the Community, including the Agriculture and Rural Development Policy and the Agriculture and Rural Development Strategy have been adopted. The East African Agriculture and Rural Development Programme is also one of the identified major planks of the 3rd EAC Development Strategy whose implementation has been placed on a high priority.
Energy
In the Energy sector, the East African Power Master Plan is being implemented within a time frame of up to seven years to a full fledged Regional Power System with the creation of a Power Pool as a central feature. The Power Master Plan will cover both power generation and transmission projects at an estimated cost of US$ 1.2 billion and US$ 600 million respectively for generation and transmission projects over the implementation period.
Tourism and Wildlife Management
A major breakthrough has been made in the tourist sector with the launching of joint marketing of East Africa as a single tourist destination. The EAC Partner States now participate in the World Travel Market (WTM) in London and also in the International Tourism Fair in Berlin jointly under one common exhibition area. It is planned that the East African tourist boards will extend such joint promotion and marketing to the Asian, Far Eastern and American markets in the near future.
The Lake Victoria Basin Commission was officially launched on 11 July 2007. The Commission has rolled out the development programmes of the Lake, including safety of navigation, environmental protection and conservation and overall sustainable development of the Lake and its basin with vast investment opportunities identified in the Agriculture, Transport and Communications, Energy, Tourism, Industries, Fishing and Mining and Services sectors among others.
East African Development Bank
The East African Development Bank is pursuing programmes designed to enhance the Bank’s capacity to play a more substantive and sustainable role as a regional development finance institution through issues of bonds, administration of lines of credit and cross-currency swaps. The Bank is currently engaged in discussions with the African Development Bank and the China Development Bank for increased lines of credit. The Bank is also working out with the EAC concrete proposals on how it can transform itself into a lead agency for promoting regional integration projects, particularly in the infrastructure sub-sectors.
Co-operation with Development Partners
A foremost realization is that effective regional integration and development requires the mobilization of vast resources, both within and outside the region. Admittedly, despite its enormous potential, on its own the EAC region cannot raise adequate resources to meet the huge and often capital intensive investments required.
The EAC is undertaking activities at the global level through agreements and arrangements such as EU-ACP, AGOA, WTO, NEPAD and the International Conference on the Great Lakes (IC/GLR) with a view to tapping the opportunities available in such arrangements and striving to access other markets. These activities include enhancement of the region’s negotiation capabilities on trade issues and, on the whole, advancing internal research and development capacity as well as mobilization of resources and adaptation of knowledge and expertise from other areas of the world.
Negotiating as a bloc
Equally crucial, is the need to promote and articulate the interests of the EAC as a bloc and negotiate in that context. A commitment was made by the EAC Partner States in 2002 to act collectively in global trade issues. This commitment has now been rendered more urgent by the EU-ACP structures as regards the negotiations of EPAs and the fulfillment of WTO requirements. This commitment has also come under pressure given the dual membership of the Partner States in COMESA and SADC. A challenge is therefore presented which the EAC Partner States are confronting with courage and objectivity. In particular, the EAC is participating actively in the tripartite forum with COMESA and SADC to forge a close alliance in minimizing the dysfunctions of our dual or multiple memberships in regional economic organizations. Already, a major step has been taken in this regard with the EAC Partner States currently negotiating the Economic Partnership Agreement (EPA) with the European Union as an EAC bloc.
Business and Investment climate/opportunities
Like most parts of Africa and the developing world, the EAC region experiences severe effects of the imbalances in the global trading and economic system. EAC’s main challenge is therefore to work towards the improvement of the terms of trade and to boost the region’s productivity through promotion of investments, industries and trade.
The region has rich and varied natural resource base of vast fertile lands, mineral, water, energy, forestry and wildlife resources offering great scope for agricultural, industrial, tourism and trade development and expansion. The EAC countries uphold good governance, free market economy and rule of law as the prerequisites for regional development and global partnership.
Coupled with the need for suitable policies is the challenge to provide reliable and adequate economic infrastructure, which link production to markets, both the regional and the external markets. The ongoing regional infrastructure projects in roads, railways, energy and communications are intended to attract and retain serious investment and providing least cost of doing business in the region. Human resource and science and technology development is considered key to regional integration and development; and it is with this in mind that the EAC has established the East African Science and Technology Commission among other new Commissions targeting key sectors.
Together with these, the Customs Union in place and with the progress towards the establishment of the Common Market, many aspects of which are in fact already being implemented, EAC has established a conducive environment for increased intra-EAC trade and investments in the region. Indeed, the EAC already has on stream a substantial complement of measures , projects and programmes, including the EAC private Sector Development Strategy, EAC Model Investment Code, EAC Joint Export and Investment Promotion Strategy; and the EAC Competition Law and Policy – all which, with diligent application by the relevant authorities as well as the entrepreneurs, should vastly ease trade and investments flow within the East African region.
In addition, the EAC has, over the years, constantly undertaken major investments promotion activities, both in the region and abroad; and to this extent worked in collaboration with, among others, the East African Business Council and the Commonwealth Business Council. These activities will be intensified in the period ahead following the recent establishment of a desk at the EAC Secretariat dedicated to handle matters of investments promotion and private sector development in the Community.
East Africa is thus positioned as a competitive and attractive, new investment and market area with vast investment opportunities in the agro-processing, mining, tourism and fishing industries, manufacturing and services as well as investments in regional infrastructure, including roads, railways, telecommunications, energy and the Lake Victoria Development Programme.
Regional Defence and Security
The realization of a large regional economic bloc bears great strategic and geopolitical significance, imposing on the EAC Partner States enormous responsibility for regional defence and security. To this extent, the EAC Partner States pursue a Memorandum of Understanding for Co-operation in Defence Matters within an elaborate programme of activities, largely of confidence building among the defence forces. These activities include military training, joint operations, technical assistance, visits, information exchange, sports and cultural activities and regular meetings of defence chiefs and other cadre of the defence forces.
However, it is important to note that the EAC Treaty takes a holistic approach in the quest of regional peace and security, having regard to the imperative to address the root causes of conflicts. Rivalry for resources and struggle for power are often the causes of conflicts. Therefore, through its broad range of areas of cooperation, EAC seeks to entrench systems of good governance in guaranteeing equal opportunities and equal participation of all sections of the population in the allocation and management of political and economic resources. Effective mechanisms are brought to bear on the redistribution of resources, both among and within the Partner States, in a manner that would reduce tensions and eliminate conflicts.
By the same token, the EAC is not oblivious to the international dimensions and dynamics in peace and security, particularly the existence of an elaborate and all-powerful alliance of the armaments industry, international arms merchants and governments that use or support arms trade which fuel regional and global conflicts. Moreover, the East African countries have a compelling and strategic mission in establishing wider areas of peace and security beyond the confines of their own borders. This explains EAC’s contribution to the International Conference on the Great Lakes Process culminating in the signing in 2006 of the Pact of Security, Stability and Development of the Great Lakes Region.
Co-operation in Foreign Policy Co-ordination
The EAC Partner States are implementing a Memorandum of Understanding on Foreign Policy Co-ordination which was signed in 1999. Under the Memorandum of Understanding, the Partner States’ Diplomatic Missions co-ordinate their positions and hold joint briefings and presentations on matters, activities and other initiatives of interest or concern to the Community as well as joint promotion of EAC regional projects.
These joint activities are emphasized especially at the Partner States’ Diplomatic Missions in multilateral stations whereby they hold regular consultations to harmonize positions in multilateral organizations; consult and harmonize positions as well as undertake joint lobbying exercises in multilateral meetings; and co-ordinate positions where appropriate and present joint statements in the multilateral fora as well as other joint promotional activities in, among other areas, trade, investment, tourism and culture to market the Community within the region and abroad.
Strategic regional integration
East African regional integration is viewed as strategic and important from both a regional and continental perspective. To this extent, the EAC is set to accelerate the integration process towards the Political Federation of the East African States. During the exercise that was undertaken last year to find out the views of the East Africans on the Political Federation, the Regional Consultative Process delivered a verdict of broad public support for the idea of Federation among the majority of the East African people that were consulted.
There were however divergences of opinion on the timing and form of such a Federation. Indeed, there were many discordant voices on the question of fast tracking the Federation in relation to the logical stages established in the EAC Treaty, of a Customs Union first, followed by a Common Market, a Monetary Union and finally Political Federation. Be that as it may, the issue was finally settled within the consensus framework to expedite the establishment of a Common Market by 2010 and a Monetary Union by 2012 as we move on to Political Federation.
Organs and Institutions of the Community
In order to fulfil the objectives of the Community and ensure the delivery of the expectations of the people, the Treaty establishes the following Organs: Summit of Heads of State and or Government; Council of Ministers; Co-ordination Committee; Sectoral Committees; East African Court of Justice, East African Legislative Assembly; and Secretariat. The Treaty also provides for Autonomous Institutions of the Community which at the moment are the East African Development Bank, Lake Victoria Fisheries Organisation and the Inter-University Council for East Africa.
Furthermore the Treaty sets out clearly the roles and functions of these organs and institutions of the Community, with the underlying principle of the operations of the Community being the complementarity of the roles and functions of the Organs of the Community towards the realization of the regional integration and development objectives. Whereas the Summit of Heads of State gives general direction and impetus to the development of the Community, it is the Council of Ministers that is the main decision making body with responsibility to ensure the proper functioning of the Community.
Similarly, the East African Legislative Assembly and the East African Court of Justice play important roles – the Assembly in articulating the will of the people of East Africa and making appropriate legislation for regional unity and development; and the Court in embodying the rule of law and good governance as the hallmarks of the East African Community.
The thrust of the Treaty for the Establishment of the East African Community (1999) is the efficacy and sustainability of regional integration. To this extent, the Treaty was negotiated with great attention to the lessons learnt from the collapse of the former Community (1967-1977). For instance, in vesting the main decision making authority in the Council of Ministers rather than the Summit of Heads of State, the Treaty is influenced by the historical experience.
The former Community had collapsed, among others, due to the breakdown of communications at the apex of the regional organization. The new Treaty therefore vests the responsibility for the proper functioning and development of the Community in the Council of Ministers. The approach gives room to maneuver as disagreements or deadlocks that might arise at the Ministers’ level are referred to the higher counsels and good offices of the Summit of Heads of State. A less centralized structure of the Community is deemed a more realistic and viable option, taking into account the perceived weaknesses and potentially disruptive attributes of the largely centralized structure of the former Community. It is instructive to note, however, that with the eventual realization of a Political Federation of the East African States, as enshrined in the Treaty, centralized structures and institutions of the projected Federation would logically emerge.
By and large, it is the principle of subsidiarity that defines the relations between the Organs and Institutions of the Community on the one hand and the ranking and prioritization of the regional programme on the other. What can be best done at regional level is handled at the regional level and, likewise, what can be best done at the national level is implemented at the national level. The operations and development of the Community are therefore placed on a process mode towards the realization of the defined strategic objectives. So long as momentum is maintained in the process, the institutional defects or shortcomings that may be evident at the earlier stages are progressively shed off as the integration process climbs higher up the matrix of the set strategic goals.
Inter-Organ relationship
It is in this context that the Organs of the Community play their various roles in providing the impetus and sustaining the political will behind the regional integration process. Most crucial is the realization of popular participation in the activities of the Community. Indeed, the participation of the people is factored into the regional integration process as its motive force. And the regional Assembly, by virtue of its election by the Parliaments of the Partner States has a leading role in this people centered process.
Also, the Treaty emphasizes a synergetic approach to the management of the affairs of the Community. A few examples of this would illustrate the point:
1. The Treaty deliberately establishes that the Members of the Assembly are not directly elected but that they derive their legitimacy from the (organic) link and association with the directly elected National Assemblies of the Partner States;
2. While the Secretariat initiates the Budget process and submits the Budget proposals to the Council of Ministers for consideration, the Council submits the Budget estimates to the East African Legislative Assembly for debate and approval.
3. The Treaty provides for an independent Secretariat that is headed by the Secretary General who is also the “principal executive Officer of the Community”. But the Secretary General is appointed by the Summit; and the Secretariat itself comes under the direct supervision of the Council of Ministers as well as submits to the oversight role of the Assembly;
4. Although the Treaty specifically mandates the Secretariat to conduct the general promotion and dissemination of information on the Community to the stakeholders, the general public and the international public, the Council of Ministers, the Members of the Assembly as well have important role to play in this important activity. It is in this context that the outreach programme conducted by the Members of the Assembly is significant in strengthening the bond between the people and the organs and institutions of the Community.
5. For its part, the Executive arm of the governments of the EAC Partner States is represented in the regional Legislature through the five ex-officio Members of the Assembly, i.e. the Ministers responsible for regional integration and the Secretariat ex-Officio Members of the Assembly. Thus the Council introduces Bills which are passed by the Assembly and which become Acts of the Community once assented to by the Heads of State; and
6. The interests and role of other stakeholders in the Community are safeguarded under the Treaty as enshrined in the provisions of Article 127 which provides for an enabling environment for the private sector and civil society participation in the regional integration process, right from the decision making to the implementation stages.
All this goes to emphasize that the EAC organs, acting as a collective, provide leadership, direction and control of the regional integration process. They focus attention on the regional integration agenda and ensure the ownership of the agenda among the people, right from the grassroots and constituency levels to the highest decision making levels. The organs and institutions therefore need to stay close to the people. They have to operate close to the reality of the lives of the people thus be in a position to cause a positive transformation in their lives.
Conclusions
The Community is a bold enterprise aimed at the eventual full unification of East Africa. Harmonious operations of the various organs are crucial to the effective and rapid delivery of the expectations of the people in regional integration and development.
It is with this commitment and orientation – each Organ or Institution respecting the role and mandate of the other and applying the advantages of synergies – that the Organs and Institutions of the Community have managed the steady progress of the Community over the past 15 years of the resumption of regional co-operation in East Africa as I have narrated at the outset of my presentation.
The challenge ahead is for the continued collaboration of all the Organs and Institutions of the Community in moving forward with the new realignment towards regional integration perspective and approach to solutions and management of social and economic development issues.
Discharging their various roles, the Organs and Institutions of the Community must aim at one thing: the strengthening of the Community as the engine of regional integration, unity and development. The evolvement of strong institutions of the Community – an enabling Executive, a vigilant Legislature, an effective Court of Justice and a well equipped Secretariat – is a prerequisite for successful regional integration and development. Genuine, collective response and judicious application of synergies to the challenges of regional integration and development is what is called for.
More and more, the people of East Africa should be attuned to facing their challenges collectively as a family through the established institutions, laws and protocols of the Community. This can be achieved only through the progressive strengthening of the authority and mandates of the regional institutions. All the actors, in their various stations and roles should consider that collective approach to solutions is more effective; and that positive resolutions of issues at the regional level inevitably impact on national solutions. The demonstration of this spirit should start with the Organs of the Community themselves and permeate all sectors of life in East Africa.
To the extent that the Organs and Institutions of the Community make an impact on the positive trend towards a new direction of the collective management of the affairs of the region, those who serve in these Organs and Institutions will have deserved and earned the high trust which the East African people have placed in them.
With these remarks, I thank you for your attention and wish you happiness and success in your service of the East African Community.
Thank You
EAC SECRETARIAT
ARUSHA
JUNE 2008
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API
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