EAC COMMON MARKET PROTOCOL: IS IT A MIRAGE?
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In 1967, a regional integration body was created within the east African region. The body that fostered unity among the three former british colonies came to unite them for a better future. it was the sole union of the 3 countries who were formerly using same currency- the East African Currency which was phased out in 1966 as of kenya. And was successifully edged out of circulation in 1969.
What
led to the collapse of the east African corporation in 1977 are more
policy issues than the cessation of resources. Kenya wanted more slots
in the decision making organs while Uganda was struggling under Iddi
Amin, and Tanzania was under the failing Ujamaa system which was rather
socialism like. The collapse of the first corporation created a bad
attitude to the Tanzanian faction as they lost so much in the collapse
of the region.
In 30 November, 1999 - the treaty establishing the East African community is signed and it came to force on 7th July 2000. Today we are in the future of the 1999 treaty which re established the EAC and changed its name from East African Corporation to East African Community which has ever since drew membership of two tiny former central African nations of Rwanda and Burundi. 12 years on, the EAC seems to be sailing against the tides of the past mistakes.
In my article I will major on the issues and goals of the current EAC which has been framed into four main targets. That is customs union, common market, monetary union and the yet to be discussed political federation. Today we as east Africans seem to be developing a culture of sharing workmanship and despite the challenges that face the regional integration; the entire region is slowly coming up.
The EAC Commitment
The issues concerning the EAC commitments seem to exist only on paper especially in Tanzania who seem to be undecided since they have a perception of the bad intentions of the partner states. The issue of contempt might end up affecting the remaining 2 phases of the region. Under the strategy , east Africa like the EU should be working towards the attainment of a single monetary union which will edge out the Burundian francs , Rwandese francs, Kenyan shillings, Tanzanian shillings and the much inflated Ugandan shilling
The main question lies here, will Kenya accept a currency which is lesser in terms of value than its own? Just incase the new African nation south Sudan joins the union, will they accept the anticipated currency of the east of Africa community? In the region the Sudanese pound is far much ahead of any other currency. Within the EAC the failing Kenya shilling seem to be the most preferred especially in the neighboring Uganda where Kenyans have made investments.
The leader of opposition Kizza Besigye has from time to time attributed to already failed currency to the fact that the NRM government misappropriation of public funds during the last years general election. Uganda under the new currency will ensure that it is able to move its economy and create trust within its citizen. Uganda has the weakest currency followed closely Tanzanian currency then Burundi, Rwanda and then Kenya shilling.
Kenya which has been seen as the economic leader in the region though has largely been affected by general elections and internal conflicts. The two east African countries Kenya and Uganda join strategy in the promotion of a free trade area as set out within the common protocol the economic development of the region. The free market and labour movement is more vivid between Kenya and Uganda. The recent D evelopments have uganda breaching the common market protocol as it is slowly closing its borders and the common market protocol seems to be close to be dead.
My efforts to speak with the ugandan Prime minister Amama Mbabazi were fruitless as he directed me to the uganda revenue authority (URA) who are yet to answer me on the development of the harrasing of business people crossing the border for better pastures.
Today Kenya’s businessmen and entrepreneurs have taken up the challenge of taking services in other east African countries with Rwanda and Uganda being classified as the most appropriate landing zones. According Prof Mahmood Mamdani, Director, Makerere Institute of Research said "The vast majority of East Africans are peasants. The question that concerns peasants is that of land. Without secure access to land, there is no secure livelihood."
Land ownership will still be subject to the governing laws of each country; it slows down the integration process. Under the Bujumbura delegates the Common Market Protocol provided for the right with reservations that were recorded by Tanzania, for further consultations, the delegates provided in the draft Protocol that, among others, a national of a Partner State shall be enabled to “acquire/ access and use land and buildings situated in the territory of another Partner State for purposes of establishment”. The reason of reservations took the EAC so long to come to a consensus especially Tanzania’s disputing the term acquiring. Other capitalist countries such as Uganda, and Rwanda signed. Later, the specific issue of “acquiring/accessing” land and buildings was referred for further deliberations in the ongoing negotiation process. Tanzania maintained the position that the “acquiring/accessing” clause in the Article is deleted completely, arguing that “it is not a Common Market issue”; and this now remains among the matters (bracketed) for further consultations and resolution by the negotiating parties.
Today for many Tanzanians the common market protocol exists only in paper and not in reality. although Uganda seems to be moving to the direction of Tanzania and closing of the borders might be slowly crippling of the regional integration.The commitment strategy and labour movement within the country Tanzania is doing badly. Professionals from Kenya and Uganda were complaining about the high requirements set by Tanzania especially for teachers where it only said that it needed teachers with masters in education and not to work in Zanzibar. According to an insider in the ministry of EAC (Kenya) importing labour if you set up an educational institution in Tanzania is highly discouraged.
With the current trends of the common market protocol the entire goal of the treaty might lead to a crisis as it should be implemented to the later by all EAC member states and not in part. Therefore, we need a comprehesive strategy and get working solutions for the region if we will attain meaningful progress towards the last 2 phases of having a common currency and the East African Federation.
In 1967, a regional integration body was created within the east African region. The body that fostered unity among the three former british colonies came to unite them for a better future. it was the sole union of the 3 countries who were formerly using same currency- the East African Currency which was phased out in 1966 as of kenya. And was successifully edged out of circulation in 1969.
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| Presidents Yoweri Kaguta Museveni, Mwai kibaki and Jakaya Kikwete during the kampala treaty establishing the common market protocol of 2009 | agencies |
Presidents
Kenyatta, Mwalimu Nyerere and Dr. Milton Apollo Obote joined hands and
signed the famous east African treaty of 1967. This treaty emphasized on
collective development of the east African region and more so the
economic empowerment which created a uniform human resource and service
delivery of the entire region. The treaty created a uniform block in
transport, industrialization, manufacturing, labour, communication and
the asset building capacity which characterized the 10 years of EAC
community (1967-1977). Some analysts say that the region has been
integrated since 1905 after the arrival of the Kenya Uganda railways in
Kampala in 1901.
Kenya and Uganda has seen the regional economic
dependence sailed through decades owing to the fact that the latter is
land locked and has to transport its basic imports...In 1948 the region
had a single high commission making it important for the future EAC.
In 30 November, 1999 - the treaty establishing the East African community is signed and it came to force on 7th July 2000. Today we are in the future of the 1999 treaty which re established the EAC and changed its name from East African Corporation to East African Community which has ever since drew membership of two tiny former central African nations of Rwanda and Burundi. 12 years on, the EAC seems to be sailing against the tides of the past mistakes.
In my article I will major on the issues and goals of the current EAC which has been framed into four main targets. That is customs union, common market, monetary union and the yet to be discussed political federation. Today we as east Africans seem to be developing a culture of sharing workmanship and despite the challenges that face the regional integration; the entire region is slowly coming up.
The EAC Commitment
The issues concerning the EAC commitments seem to exist only on paper especially in Tanzania who seem to be undecided since they have a perception of the bad intentions of the partner states. The issue of contempt might end up affecting the remaining 2 phases of the region. Under the strategy , east Africa like the EU should be working towards the attainment of a single monetary union which will edge out the Burundian francs , Rwandese francs, Kenyan shillings, Tanzanian shillings and the much inflated Ugandan shilling
The main question lies here, will Kenya accept a currency which is lesser in terms of value than its own? Just incase the new African nation south Sudan joins the union, will they accept the anticipated currency of the east of Africa community? In the region the Sudanese pound is far much ahead of any other currency. Within the EAC the failing Kenya shilling seem to be the most preferred especially in the neighboring Uganda where Kenyans have made investments.
The leader of opposition Kizza Besigye has from time to time attributed to already failed currency to the fact that the NRM government misappropriation of public funds during the last years general election. Uganda under the new currency will ensure that it is able to move its economy and create trust within its citizen. Uganda has the weakest currency followed closely Tanzanian currency then Burundi, Rwanda and then Kenya shilling.
Kenya which has been seen as the economic leader in the region though has largely been affected by general elections and internal conflicts. The two east African countries Kenya and Uganda join strategy in the promotion of a free trade area as set out within the common protocol the economic development of the region. The free market and labour movement is more vivid between Kenya and Uganda. The recent D evelopments have uganda breaching the common market protocol as it is slowly closing its borders and the common market protocol seems to be close to be dead.
My efforts to speak with the ugandan Prime minister Amama Mbabazi were fruitless as he directed me to the uganda revenue authority (URA) who are yet to answer me on the development of the harrasing of business people crossing the border for better pastures.
Today Kenya’s businessmen and entrepreneurs have taken up the challenge of taking services in other east African countries with Rwanda and Uganda being classified as the most appropriate landing zones. According Prof Mahmood Mamdani, Director, Makerere Institute of Research said "The vast majority of East Africans are peasants. The question that concerns peasants is that of land. Without secure access to land, there is no secure livelihood."
Land ownership will still be subject to the governing laws of each country; it slows down the integration process. Under the Bujumbura delegates the Common Market Protocol provided for the right with reservations that were recorded by Tanzania, for further consultations, the delegates provided in the draft Protocol that, among others, a national of a Partner State shall be enabled to “acquire/ access and use land and buildings situated in the territory of another Partner State for purposes of establishment”. The reason of reservations took the EAC so long to come to a consensus especially Tanzania’s disputing the term acquiring. Other capitalist countries such as Uganda, and Rwanda signed. Later, the specific issue of “acquiring/accessing” land and buildings was referred for further deliberations in the ongoing negotiation process. Tanzania maintained the position that the “acquiring/accessing” clause in the Article is deleted completely, arguing that “it is not a Common Market issue”; and this now remains among the matters (bracketed) for further consultations and resolution by the negotiating parties.
Today for many Tanzanians the common market protocol exists only in paper and not in reality. although Uganda seems to be moving to the direction of Tanzania and closing of the borders might be slowly crippling of the regional integration.The commitment strategy and labour movement within the country Tanzania is doing badly. Professionals from Kenya and Uganda were complaining about the high requirements set by Tanzania especially for teachers where it only said that it needed teachers with masters in education and not to work in Zanzibar. According to an insider in the ministry of EAC (Kenya) importing labour if you set up an educational institution in Tanzania is highly discouraged.
With the current trends of the common market protocol the entire goal of the treaty might lead to a crisis as it should be implemented to the later by all EAC member states and not in part. Therefore, we need a comprehesive strategy and get working solutions for the region if we will attain meaningful progress towards the last 2 phases of having a common currency and the East African Federation.
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