The EAC is a potential precursor to the establishment of the East African Federation, a proposed federation of its members into a single sovereign state.[7] In 2010, the EAC launched its own common market for goods, labour, and capital within the region, with the goal of creating a common currency and eventually a full political federation.[8] In 2013, a protocol was signed outlining their plans for launching a monetary union within 10 years.[9] In September 2018, a committee was formed to begin the process of drafting a regional constitution.[10]
History
Formation and re-formation
From left to right: President Yoweri Museveni of Uganda, President Mwai Kibaki of Kenya, and President Jakaya Kikwete of Tanzania during the eighth EAC summit in Arusha, November 2006.
Kenya, Tanzania, and Uganda have cooperated with each other since the early 20th century. The East African Currency Board provided a common currency from 1919 to 1966. The customs union between Kenya and Uganda in 1917, which Tanganyika joined in 1927, was followed by the East African High Commission (EAHC) from 1948 to 1961, the East African Common Services Organization (EACSO) from 1961 to 1967, and the EAC[11] from 1967 to 1977. Burundi and Rwanda joined the EAC on 6 July 2009.[12]
Inter-territorial co-operation between the Kenya Colony, the Uganda Protectorate, and the Tanganyika Territory was formalised in 1948 by the EAHC. This provided a customs union, a common external tariff, currency, and postage. It also dealt with common services in transport and communications, research, and education. Following independence, these integrated activities were reconstituted and the EAHC was replaced by the EACSO, which many observers thought would lead to a political federation between the three territories. The new organisation ran into difficulties because of the lack of joint planning and fiscal policy, separate political policies, and Kenya's dominant economic position. In 1967, the EACSO was superseded by the EAC. This body aimed to strengthen the ties between the members through a common market, a common customs tariff, and a range of public services to achieve balanced economic growth within the region.[13]
In 1977, the EAC collapsed. The causes of the collapse included demands by Kenya for more seats than Uganda and Tanzania in decision-making organs,[14] disagreements with Ugandan dictator Idi Amin who demanded that Tanzania as a member state of the EAC should not harbour forces fighting to topple the government of another member state, and the disparate economic systems of socialism in Tanzania and capitalism in Kenya.[15] The three member states lost over sixty years of co-operation and the benefits of economies of scale, although some Kenyan government officials celebrated the collapse with champagne.[16]
Presidents Daniel arap Moi of Kenya, Ali Hassan Mwinyi of Tanzania, and Yoweri Kaguta Museveni of Uganda signed the Treaty for East African Co-operation in Kampala on 30 November 1993 and established a Tri-partite Commission for Co-operation.[17] A process of re-integration was embarked on involving tripartite programmes of co-operation in political, economic, social and cultural fields, research and technology, defence, security, and legal and judicial affairs.
The EAC was revived on 30 November 1999, when the treaty for its re-establishment was signed. It came into force on 7 July 2000, 23 years after the collapse of the previous community and its organs. A customs union was signed in March 2004, which commenced on 1 January 2005. Kenya, the region's largest exporter, continued to pay duties on goods entering the other four countries on a declining scale until 2010. A common system of tariffs will apply to goods imported from third-party countries.[18] On 30 November 2016 it was declared that the immediate aim would be confederation rather than federation.[19]
South Sudan's accession
The presidents of Kenya and Rwanda invited the Autonomous Government of Southern Sudan to apply for membership upon the independence of South Sudan in 2011,[20][21] and South Sudan was reportedly an applicant country as of mid-July 2011.[20][22] Analysts suggested that South Sudan's early efforts to integrate infrastructure, including rail links and oil pipelines,[23] with systems in Kenya and Uganda indicated intention on the part of Juba to pivot away from dependence on Sudan and toward the EAC. Reuters considers South Sudan the likeliest candidate for EAC expansion in the short term,[24] and an article in Tanzanian daily The Citizen that reported East African Legislative Assembly Speaker Abdirahin Haithar Abdi said South Sudan was "free to join the EAC" asserted that analysts believe the country will soon become a full member of the regional body.[25]
On 17 September 2011, the Daily Nation quoted a South Sudanese MP as saying that while his government was eager to join the EAC, it would likely delay its membership over concerns that its economy was not sufficiently developed to compete with EAC member states and could become a "dumping ground" for Kenyan, Tanzanian, and Ugandan exports.[26] This was contradicted by President Salva Kiir, who announced South Sudan had begun the application process one month later.[27] The application was deferred by the EAC in December 2012,[28] however incidents with Ugandan boda-boda operators in South Sudan have created political tension and may delay the process.[29]
In December 2012, Tanzania agreed to South Sudan's bid to join the EAC, clearing the way for the world's newest state to become the regional bloc's sixth member.[30] In May 2013 the EAC set aside US$82,000 for the admission of South Sudan into the bloc even though admission may not happen until 2016. The process, to start after the EAC Council of Ministers meeting in August 2013, was projected to take at least four years. At the 14th Ordinary Summit held in Nairobi in 2012, EAC heads of state approved the verification report that was presented by the Council of Ministers, then directed it to start the negotiation process with South Sudan.[31]
A team was formed to assess South Sudan's bid; however, in April 2014, the nation requested a delay in the admissions process, presumably due to ongoing internal conflict.[32][33]
South Sudan's Minister of Foreign Affairs, Barnaba Marial Benjamin, claimed publicly in October 2015 that, following evaluations and meetings of a special technical committee in May, June, August, September and October, the committee has recommended that South Sudan be allowed to join the East African Community. Those recommendations, however, had not been released to the public. It was reported that South Sudan could be admitted as early as November 2015 when the heads of East African States had their summit meeting.[34]
South Sudan was eventually approved for membership to the bloc in March 2016,[35] and signed a treaty of accession in April 2016.[36] It had six months to ratify the agreement, which it did on 5 September, at which point it formally acceded to the community.[37][38] It does not yet participate to the same extent as the other members.[19][timeframe?]
Democratic Republic of the Congo's accession
In 2010, Tanzanian officials expressed interest in inviting the DR Congo to join the East African Community. The DRC applied for admission to the EAC in June 2019.[39] In June 2021, the EAC Summit launched a verification mission to assess the suitability of the DRC for admission to the Community, and has since drafted a report on their findings which is ready for submission to the EAC Council of Ministers.[40] On 23 November 2021: Ministers in charge of East African Community (EAC) Affairs have recommended for consideration by the EAC Heads of States the report of the verification team on the application by The Democratic Republic of Congo (DRC) to join the Community.[41] In February 2022, the EAC Council of Ministers recommended that the DRC be admitted as a new member state of the EAC.[42] On 18 March 2022, the EAC Secretary-General Peter Mathuki confirmed that the Heads of State would approve the admission on 29 March 2022.[43] The Democratic Republic of the Congo was admitted as a member of the EAC on 29 March 2022, at a virtual Head of State summit chaired by Uhuru Kenyatta of Kenya,[44] and officially became a member of the East African Community on 11 July 2022 after depositing the instrument of ratification with the EAC Secretary General at the bloc's headquarters in Arusha, Tanzania. The accession of the DRC gives the EAC its first port on the West African coast.
Somalia's accession
Representatives of Somalia applied for membership in the EAC in March 2012.[45] The application was considered by the EAC Heads of State in December 2012, which requested that the EAC Council work with Somalia to verify their application.[46] In February 2015, the EAC again deliberated on the matter but deferred a decision as verification had not yet started nor had preparations with the Somalian government been finalized.[47] During the 22nd Ordinary EAC Heads of State Summit on 22 July 2022, the EAC Heads of State, noted that the verification process for Somalia to join the community needs to be completed expeditiously.[48] In 2023, East African Community (EAC) Secretary-General Peter Mathuki said Somalia had made a critical step towards becoming the eighth member of the bloc, with negotiations on admission set to last from 22 August to 5 September.[49] Somalia was formally admitted on 24 November 2023 during the 23rd ordinary summit of the heads of state, following a five-hour closed-door meeting.[50][51] The treaty of accession was signed on 15 December 2023 at the presidential residence in Kampala, Uganda, with Somalia having 6 months to complete its ratification of the treaty.[52][53] Membership will be official after ratification has been completed.[54] On February 10, 2024, The Parliament endorsed the treaty of accession.[55] Somalia deposited its instruments of ratification on 4 March 2024, thus becoming the eighth member of the organisation.[56]
Somaliland is an independent autonomous zone within the borders of Somalia. With Somalia’s accession into the EAC, Somaliland released a statement stating that the “decision is a clear violation of Somaliland's sovereignty and territorial integrity,” and called for the EAC, the African Union, and the United Nations to recognize their statehood.[57]
Partner states
Overview of partner states in the East African Community
In 2019, President Lourenço mediated the re-opening of the borders and ending hostilities between EAC neighbours Rwanda and Uganda. Historically, Angola has been closely involved politically with the DRC with a focus on peace and stability in the DRC. Angola is currently leading the Luanda process for stability in the eastern DRC under the ICGLR with EAC Partner States – Uganda and Rwanda.[58][59]
Central African Republic
EAC partner states Burundi, DR Congo, Rwanda, and Tanzania have been involved in peace keeping missions in the Central African Republic. President Touadera has applauded Rwanda's support in securing peace in the country. With DRC in the EAC, and infrastructure developments from Pointe-Noire in the Republic of Congo to Bangui, the capital of the CAR, as well as inclusion of the country into the LAPSSET project from Lamu-Juba-Bangui-Douala, this could see the mineral and resource rich country realize economic benefits.[60][61]
Comoros
In July 2023 Kenyan President William Ruto raised the idea of Comoros joining the EAC while signing an agreement for deeper bilateral cooperation between Kenya and Comoros. Comoros and existing member Tanzania have a maritime border.[62]
Republic of the Congo
The Republic of the Congo enjoys strong historical political, economic and cultural ties with DR Congo. The Republic of Congo is involved, under the International Conference on the Great Lakes Region (ICGLR), in the peace and stability efforts in eastern DR Congo together with Angola. Rwandan and Ugandan leaders have been meeting in Luanda with President Sassou Nguesso to support these peace efforts.[59][63]
Djibouti
With Somalia set to join the group in October 2023, Secretary General Peter Mathuki stated, “The vision of our leaders is to have a market of 800 million people. And that will be possible if we integrate all the countries in the horn of Africa and make one huge market,” hinting of the possible accession of Djibouti and Ethiopia.[64]
Ethiopia
Kenyan President Uhuru Kenyatta proposed expanding the EAC to include Central, Northern, and Southern African states, such as Ethiopia.[65] The potential joining of Ethiopia into the EAC would bring the population to approximately 460 million.[3] Speaking at the opening of the One Stop Border post in Moyale in 2020, Prime Minister Abiy Ahmed of Ethiopia affirmed his commitment to regional integration saying that the east African people are one people and economic integration is a key goal for the region to achieve so as to unlock its potential.[66][67] With other horn of Africa countries like Somalia joining the EAC and the opening up of Ethiopia's sectors such as banking and telecommunications to the private sector, being part of the EAC could soon become a priority to accelerate economic gains.[68] With Somalia set to join the group in October 2023, Secretary General Peter Mathuki stated that the vision of the leaders is to have one market comprised of 800 million people through integration of the Horn of Africa into the EAC.[64] On 8 April 2024, Ministry of EAC Arid and Semi-arid Lands and Regional Development Cabinet Secretary Peninah Malonza revealed that the EAC and Ethiopia were in the final stages of negotiation for admission into the bloc, meaning Ethiopia is due to become the 9th member state of the EAC within the next few months.[69]
Malawi
In 2010, Tanzanian officials expressed interest in inviting Malawi to join the EAC. Malawian Foreign Affairs Minister Etta Banda said, however, that there were no formal negotiations taking place concerning Malawian membership.[70]
Mozambique
Ugandan President Yoweri Museveni in May 2022, hinted at the possibility of deploying an East African regional force to Mozambique to counter insurgency in the Northern Provinces. Rwanda, at the request of Mozambique, in July 2021 had sent a strong contingent to Cabo Delgado. Mozambique shares cultural and historical ties with EAC Partner States. There is a significant Kiswahili speaking population in the country.[71][72]
Sudan
Sudan applied to join the EAC in 2011, with Burundi, Kenya, and Rwanda supporting membership, while Tanzania and Uganda were opposed to it. They contended that because of the Sudan's lack of a direct border with the EAC at the time, its allegedly discriminatory actions toward black Africans, its record of human rights violations, and its history of hostilities with both South Sudan and Uganda, Sudan was ineligible to join and their application was rejected in December 2012.[73][74]
EAC Organs
The Treaty for the Establishment of the East African Community established seven EAC Organs to perform the functions of the community.
The Summit consists of the heads of state of each individual member country. The Summit gives "strategic direction towards the realization of the goal and objectives of the Community," and convenes once per year, with additional meetings at request of any member of the Summit. The Summit's decisions are arrived at by consensus.[75] The Chairperson of the Summit's tenure is one year and is in rotation from among the partner states. At Summit meetings, the Summit reviews annual progress reports and other reports from the Council. The summit appoints East African Court of Justice judges, assents to bills, and admits new member or observer states. The Summit may delegate many but not all of its powers to lower organs at the discretion of the Summit. The President of South Sudan, Salva Kiir Mayardit, serves as the current EAC Summit Chairperson.[76]
The Council
The Council consists of the Minister responsible for EAC affairs of each member State, any other Minister of the member state the member state elects; and the Attorney General of each Partner State. The Council meets twice a year, one time directly after the Summit and once later in the year.[75] The Council can also meet at the request of the Council Chairperson or member state. The Council main function is to implement decisions made by the Summit. The Council initiates and submits Bills to the Assembly, gives directions to the Partner States, and makes regulations, issues directives, and makes recommendations to all other organs (except the Summit, the Court, and the Assembly).[75] The Council also can establish Sectoral Committees from amongst its members to implement specific directives. Deng Alor Kuol, the Minister for East African Community Affairs in South Sudan, is the current Chairperson of the EAC Council of Ministers.[39] This position of Lead Council Chairperson is elected by the Head of State, and is replaced annually.[75]
The Coordination Committee
The Co-ordination Committee consists of the Permanent Secretaries of EAC affairs in each member state and any other Permanent Secretaries as determined by the member state. The Coordination Committee meets at least twice a year preceding the meetings of the Council. The Coordination Committee implements the directives decided by the Council and recommends the creation of Sectoral Committees to the Council.[75] The current acting Principal Secretary of the Coordinating Committee is Dr. Kevit Desai of Kenya.[77]
The East African Court of Justice is the judicial arm of the community and consists of the First Instance Division and an Appellate Division. The Judges are appointed by the Summit from candidates recommended by the member states provided there are no more than two judges of a member state on the First Instance Division and no more than one judge of a member state on the Appellate Division.[75] The court is composed of a maximum of fifteen judges with no more than ten of the First Instance Division and no more than five of the Appellate Division. Each Judge may serve for no more than seven years and holds office until that period expires, death, reaching seventy years-of-age, or removal for misconduct by the Summit after deliberation from a tribunal, bankruptcy, or conviction.[75] Upon suspension, the judge's member state recommends a qualified candidate for appointment to temporary judge. If a judge has a conflict-of-interest, they are to report to their higher-up for deliberation on their ability to fairly judge.[75] The court has jurisdiction over cases involving interpretation and application of the treaty, other jurisdiction as designated by the Summit, member states that consider another member state or EAC Organ to have failed obligations under the treaty, and disputes between the EAC and its employees.[75] The Summit, the Council, or a Partner State may also request the Court to give an advisory opinion on an issue regarding the Treaty.
The East African Legislative Assembly (EALA) is the legislative arm of the community. The EALA has 27 members who are all elected by the National Assemblies or Parliaments of the member states of the community.[75] The EALA has oversight functions on all matters that fall within the community's work and its functions include debating and approving the budget of the community, discussing all matters pertaining to the community and making recommendations to the council as it may deem necessary for the implementation of the treaty, liaising with National Assemblies or Parliaments on matters pertaining to the community and establishing committees for such purposes as it deems necessary.[75] The Assemblypersons have a term of five years and a term limit of two. The EALA meets at least once a year and since being inaugurated in 2001, the EALA has had several sittings as a plenum in Arusha, Kampala, and Nairobi. Any member may introduce a bill and upon a simple majority vote, the bill proceeds to the Heads of State in which if any Head of State declines to assent within three months, the bill heads back to the EALA for editing.[75]
The Speaker of the Assembly is Dan Kidega from Uganda who replaced Margaret Zziwa also from Uganda, after being impeached; she had succeeded Abdirahin Haithar H. Abdi from Kenya. The assembly has been credited with crucial bills, particularly those regarding regional and international trade, including EAC's stand on issues such as the World Trade Organization and transport on Lake Victoria.[78]
The Secretariat is the executive organ of the EAC. The highest office of the Secretariat is the Secretary General. The Secretary General is appointed by the summit upon nomination by the current rotational head of state and serves one five-year fixed term.[75] The Secretariat also contains the offices of the Deputy Secretaries General appointed by the Summit and under the purview of the Secretary General. The Secretariat's principle function is the implementation of the decisions of the Summit and the Council with other functions including research on best methods to achieve the EAC treaty's goals, management of funds, and investigation of EAC affairs.[75]Veronica Nduva is the current Secretary General of the EAC,[76] having been appointed 7 June 2024 following Kenya's recall of former EAC Secretary-General Peter Mathuki for alleged misallocation of six million in funds from the Peace Fund at the Secretariat.[79]
EAC Institutions
There are eight current Heads of EAC Institutions. Vivienne Yeda Apopo of Zambia is the current acting Director-General of East African Economic Development and has had this position since 2009.[80] Dr. Novat Twungubumwe of Burundi is the current acting Attorney General and Executive Secretary East African Health Research Commission.[81] Dr. Sylvance Okeyo Okoth is the Executive Secretary of the East African Science and Technology Commission (EASTECO).[82] Dr. Caroline Asiimwe of Uganda is the serving Executive Secretary of the East African Kiswahili Commission.[77] Prof. Gaspard Banyankimbona of Uganda is the serving Executive Secretary of the Inter-University Council for East Africa.[77] Eng. Richard Gatete of Rwanda is the serving executive director of the Civil Aviation Safety and Security Oversight Agency.[77] Lilian K. Mukoronia of Kenya is the acting Registrar of the East African Community Competition Authority.[77] Dr. Masinde K. Bwire is the serving Executive Secretary
Lake Victoria Basin Commission.[77]
Surveying of Tanzania in 2012 revealed that 70% of Tanzanians approved of free movement of people, goods, and services.[83] Meanwhile, 55% of Tanzanians approve the customs union and 54% approve of the proposed monetary union.[83] On all three issues, share of people answering "Don't Know" has more than halved since 2008 indicating higher rates of civic engagement on EAC issues.[83] Approval of a joint army went from 26% in 2008 to 38% in 2012, with the majority (53%) still disapproving.[83] In Kenya, approval for the free movement of people, goods, and services was at 52% as of 2021.[84] Support for the monetary union sat at 49%, with 44% disapproving.[84] 65% of those with no lived poverty approved of the free movement policy while only 44% of those with high lived poverty supported it.[84] 61% of the 18-25 demographic supported free movement while 43% of the 46-55 demographic supported it.[84] The group with highest support was those with post-secondary education, with 73% supporting.[84] Awareness of EAC Organs in Kenya is low; 43% had heard nothing of the EALA, with only 29% hearing "some" or "a great deal".[84] 47% of Kenyans said that their EALA representatives should be elected directly instead of elected by the Kenyan Parliament.[84] Surveying in May 2015 in Uganda found that 69% support free movement across borders in the region.[85] In Burundi, 64% supported free movement among the region.[85] A combined 56% of Ugandans thought the EAC "helps a lot", "helps somewhat", or "helps a little" in their country.[85] 71% of Kenyans thought the EAC helps in some capacity while 57% of Tanzanians thought the EAC helps in some capacity.[85][note 1]
Politics
The "Committee on Fast Tracking East African Federation" was created in 2004, a result of longstanding pressure by President Museveni for further integration. It recommended creating a federation with a single elected president by 2013. National committee in the then-five members to study the issue operated from 2007 to 2009. Except for Tanzania, these committees found that the majority of their populations were in favour of further integration. Nonetheless, while appointed committees continued to study integration until 2012, enthusiasm for the idea waned.[86]: 13.9–13.10 The full implementation of the customs union established in 2005 was repeatedly delayed.[86]: 13.12 The Common Market remains hampered by national restrictions.[86]: 13.13
Some have questioned the extent to which the visions of a political union are shared outside the elite and the relatively elderly, arguing that the youthful mass of the population is not well informed about the process in any of the countries.[87] Others have pointed to an enhanced sense of East African identity developing from modern communications.[87] For these, the shared vision for a politically united East Africa is commendable and a potential driver for change.[88] Commitment to the formal EAC idea is relatively narrow, in both social and generational terms, and thus many have questioned the timetable for the project. Fast-tracking political union was first discussed in 2004 and enjoyed a consensus among the three presidents of Kenya, Tanzania, and Uganda.[87] Thus, a high-level committee headed by Amos Wako of Kenya was commissioned to investigate the possibility of speeding integration so as to achieve political federation sooner than previously visualised.[87] Yet, there have been concerns that rapid changes would allow popular reactionary politics against the project.[87] There has been an argument, however, that there are high costs that would be required at the beginning and that fast-tracking the project would allow the benefits to be seen earlier.[87] The East African Community appointed South Sudan President Salva Kiir Mayardit as its chairperson in November 2023. However, this decision has been criticized by some regional observers. For example, Duop Chak Wuol, an influential South Sudanese analyst, authored a scathing article, "Justifying Dictatorship in South Sudan: A Case Against the East African Community," in December 2023. In the piece, he criticizes the East African Community's decision to appoint Kiir as its chairperson, pointing out that the EAC failed to uphold its moral obligations and accuses the bloc of ignoring what he described as Salva Kiir's tyranny.
There remain significant political differences between the states. Museveni's success in obtaining his third-term amendment raised doubts in the other countries.[87] The single-party dominance in the Tanzanian and Ugandan parliaments is unattractive to Kenyans, while Kenya's ethnic-politics remains absent in Tanzania.[87] Rwanda has a distinctive political culture with a political elite committed to building a developmental state.[87] It has been argued, however, that the commonalities go far deeper. Many of the national elites old enough to remember the former EAC often share memories and a sharp sense of loss at its eventual dissolution.[87] More cynically, others have argued that this historical ambition provides politicians with the ability to present themselves as statesmen and representatives of a greater regional interest.[87] Furthermore, EAC institutions bring significant new powers to dispose and depose to those who serve in them.[87]
Other problems involve states being reluctant to relinquish involvement in other regional groups, e.g., Tanzania's withdrawal from COMESA but staying within the SADC bloc for the Economic Partnership Agreement negotiations with the European Union.[87] Many Tanzanians are also concerned because creating a common market means removing obstacles to the free movement of labour and capital.[87] Free movement of labour may be perceived as highly desirable in Uganda and Kenya, and have important developmental benefits in Tanzania; however, in Tanzania there is widespread resistance to the idea of ceding land rights to foreigners, including citizens of Kenya and Uganda.[87]
A "Coalition of the Willing", made up of Kenya, Rwanda, and Uganda, began a number of initiatives amongst themselves including joint railway and oil pipeline projects, a joint tourist visa, and a defence and security pact, to get around reluctance from other members.[86]: 13.14 However, even within this grouping, progress on projects has been delayed. Bilateral friction between members, a lack of enthusiasm, and political instability have been the primary reasons behind the delaying and weakening of integration efforts.[86]: 13.15 New members are expected to adjust their laws to meet EAC requirements following their accession, but this is impeded by domestic politics. South Sudan, the first member outside of the original five, remains out of step with Common Market laws.[89]
a Common External Tariff (CET) on imports from third countries;
duty-free trade between the member states; and
common customs procedures.
The CET's default rate is 25%.[90] The CET for goods can range from 0% to 100% in the case of sugar.[91] For the most part, goods do not exceed a CET of 35% except for "sensitive items" which include dairy products, maize, rice, and woven fabrics.[91] Recently, the Council of Ministers has agreed to duty remission for raw materials needed to stimulate EAC domestic production.[90] Kenya was also granted a temporary exception to the CET to import grain at a lower tariff to meet local demand and increase food security.[90] The customs union is not yet exercised in the full extent of the promise. For instance, Kenya still holds excise duties on many products, raising excise duty rates in 2023.[92] And although Kenya recently loosened certain duties, they still haven't enacted full free movement of goods.[90] This also means that countries outside of the EAC must still navigate local tax and duties opposed to a singular tax policy, simplifying the process of investing in EAC member states. For EAC internal trade in the third quarter of 2023, Tanzania was the biggest exporter with US$798.12 million, Uganda was the biggest importer with US$649.3 million, and Rwanda had the highest internal EAC in trade deficit of US$375.23 million.[93] Intra-regional trade currently stands at 15% of EAC trade according to Summit Chairman Salva Kiir, which was deemed unsatisfactory.[76]
Emerging business trends
Business leaders are far more positive than economists about the benefits of EAC integration, its customs union as a step in the process, as well as the wider integration under COMESA.[87] The larger economic players perceive long-term benefits in a progressively expanding regional market.[87] Patterns of regional development are already emerging, including:[87]
Kenyan firms have successfully aligned to the lower protection afforded by the EAC CET and fears that firms would not adjust to a 25% maximum CET, or would relocate to Tanzania or Uganda have not been realised.
An intraregional division of labour is developing, which results in basic import-processing relocating to the coast to supply the hinterland. The final stages of import-processing (especially those bulky finished goods that involve high transportation costs) and natural-resource based activities are moving up-country and up-region, either within value chains of large companies or different segments located by firms in different countries.
Trade in goods and services has already increased as service provision to Kenyans and Tanzanians is already important for Uganda (in education and in health). Kenya exports financial services, for example via the Kenya Commercial Bank and purchase and upgrading of local operators in Tanzania, Uganda and Sudan. Uganda hopes integration will help support its tourism potential through integration with established regional circuits.
There are signs of a business culture oriented to making profits through economies of scale and not on protectionism.
On 16 July 2008, the United States and the EAC signed a Trade and Investment Framework Agreement, strengthening United States-EAC trade.[94] The U.S. exported $1.1 billion and imported $1.3 billion from the EAC in 2022. This shifted the net goods traded from a total trade deficit of $211 million in 2021 to a trade surplus of $135 million in 2022.[94] In Q4 2024, the EAC exported US$6.3 Billion.[93] Out of trade partners, the top five were China, the United Arab Emirates, India, South Africa, and Malaysia. The top importer of EAC goods was the UAE and the top source of inputed goods was China.[93] Trade with COMESA accounted for 11.5% of total EAC Trade while trade with SADC accounted for 12.9.[93]
Poverty reduction
EAC that have economies have large informal sectors, unintegrated with the formal economy and large business.[87] The concerns of large-scale manufacturing and agro-processing concerns are not broadly shared by the bulk of available labour.[87] Research suggest the promised investments on the conditions of life of the region's overwhelmingly rural poor will be slight, with the significant exception of agro-industrial firms with out-grower schemes or that otherwise contribute to the co-ordination of smallholder production and trade.[87]
It is informal trade across borders that is most often important to rural livelihoods and a customs union is unlikely to significantly impact the barriers that this faces and taxes are still being fixed separately by countries.[87] However, the introduction of one-stop border posts being introduced and the reduction in tariff barriers are coming down progressively.[87]
The establishment of a common market will create both winners (numerous food producers and consumers on both sides of all borders) and losers (smugglers and the customs, police and local government officers who currently benefit from bribery at and around the borders) in the border areas.[87] More substantial impact could be attained by a new generation of investments in world-market production based on the region's comparative advantages in natural resources (especially mining and agriculture) and the new tariff structure creates marginally better conditions for world-market exporters, by cheapening inputs and by reducing upward pressures on the exchange rate.[87]
On 1 July 2010, Kenyan President Mwai Kibaki launched the East African Common Market Protocol, an expansion of the bloc's existing customs union that entered into effect in 2005.[95] The protocol will leads the free movement of labour, capital, goods and services within the EAC.[95] Member states will have to change their national laws to allow the full implementation of some aspects of the Common Market such as immigration and customs.[8] This legislation may take up to five years for each of the countries to enact fully but official recognition of the common market took place on 1 July.[96] Kenya expects that its citizens will begin to enjoy freedom of movement in the EAC within two months.[97] Kenya, Rwanda and Burundi have already agreed to waive work permit fees for EAC citizens.[97] The Common Market is seen as a step towards the implementation of a common currency by 2024 and full political federation afterwards.[7] Kenyan businesses complain that the benefits of the Common Market only exist on paper by 2011, and that all the work remains to be done. Arbitrary rules and delays continue to make trade between Kenya and Tanzania expensive and difficult.[98]
The free movement of people in the EAC is set to be improved with the introduction of "third generation" ID cards. These cards will identify the holder as a dual citizen of their home country and of "East Africa".[99] Third generation cards are already in use in Rwanda with Kenya set to introduce them in July 2010 and the other countries following afterwards.[100] Mutual recognition and accreditation of higher education institutions is also being worked towards as is the harmonisation of social security benefits across the EAC.[100]
The full adoption of the common market has been undermined by continued protectionism between member states, with decisions driven by political pressures on national leaders slowing down the implementation of commitments to integration, even within founding members. Bilateral political tensions have led to border controls in some periods, further undermining the shared labour market. Corruption has led to some integration initiatives being underfunded.[101]
East African Passport
The East African passport was launched on 1 April 1999.[102] The East African passport has been introduced as a travel document to ease border crossing for EAC residents.[103][104] It is valid for travel within the EAC countries only and will entitle the holder to a multi-entry stay of renewable six months' validity in any of the countries.[103] The passport is issued in three of the EAC member states (Kenya, Uganda and Tanzania). The passports are available at the headquarters of the respective Immigration Departments in Nairobi, Kampala and Dar es Salaam. Only East African nationals may apply to be issued with the passports.[103][104] The passport costs US$10 or the equivalent in EAC currencies.[104] Processing of applications for the passports will normally take two to three weeks. Although the passport is only valid within the EAC, modalities of internationalising the East African passport were being discussed with the aim towards having a common travel document for EAC residents by 2006.[103]
Other measures meant to ease border crossing for East African Community residents include the issuance of interstate passes (which commenced on 1 July 2003), a single immigration Departure/Entry card (adopted by all three member states), the finalisation of harmonised procedures of work permits and the classification process, and the compilation of studies on the Harmonization of Labour Laws and Employment Policies (now in its final stages).[103]
The new treaty was proposed with plans drawn up in 2004 to introduce a monetary union with a common currency some time between 2012 and 2015. There were also plans for a political union, the East African Federation, with a common President (initially on a rotation basis) and a common parliament by 2010. However, some experts, like those based in the public think tank Kenya Institute for Public Policy Research and Analysis (KIPPRA), noted that the plans were too ambitious to be met by 2010 because a number of political, social and economic challenges are yet to be addressed. The proposal was the subject of National Consultative discussions, and a final decision was to be taken by the EAC Heads of State in mid-2007.[105] In 2013, a protocol was signed outlining their plans for launching a monetary union within 10 years.[9]
Given the infrastructure problems that persist in the fledgling country since South Sudanese President Salva Kiir cut off oil commerce with Sudan, the state has decided to invest in constructing pipelines that circumvent Sudan's, which it had been using until that time. These new pipelines would extend through Ethiopia to the ports of Djibouti, as well as to the southeast to the coast of Kenya.[106]
In September 2018, a committee was formed to begin the process of drafting a regional constitution.[10]
In January 2023, the East African Community plans to issue a single currency within the next four years. The Council of Ministers of the organization must decide on the location of the East African Monetary Institute and the establishment of a roadmap for the issuance of the single currency.[107]
Single tourist visa
It had been hoped that an East African Single Tourist Visa may have been ready for November 2006, if it was approved by the relevant sectoral authorities under the EAC's integration programme. Had it been approved, the visa would have been valid for all three current member states of the EAC (Kenya, Tanzania and Uganda). Under the proposal for the visa, any new EAC single visa could be issued by any member state's embassy. The visa proposal followed an appeal by the tourist boards of the partner states for a common visa to accelerate promotion of the region as a single tourist destination and the EAC Secretariat wanted it approved before November's World Travel Fair (or World Travel Market) in London.[108] When approved by the EAC's council of ministers, tourists could apply for one country's entry visa which would then be applicable in all regional member states as a single entry requirement initiative.[109]
A single East African Tourist Visa for the EAC countries of Kenya, Rwanda, and Uganda has been available since 2014.[110]
The geographical region encompassed by the EAC covers an area of 5,449,717 km2 (2,104,147 sq mi). The EAC spans the continent from the Indian Ocean to the Atlantic Ocean, with a population of 343,328,958 as of 2024.[3] The DRC has plentiful mining operations, in particular the mining of Cobalt. The mining sector of the EAC contributes around 2.3% of the GDP. Mining is one of the leading components in generating foreign exchange earnings within the non-traditional exports. Gold was the second highest exported product following petroleum in the fourth quarter of 2023.[93]
Largest population centres of the East African Community
The EAC contains 15 cities with populations of over one million (half of which are in Democratic Republic of the Congo alone), the largest being Kinshasa. Kampala is the largest urban centre located on Lake Victoria, the second largest freshwater lake in the world and Mwanza coming in second and Kisumu third.
The population of the constituent parts of the EAC is composed of 65% under 30-year-olds.[111] This youth bulge is anticipated to grow to 75% of the population under the age of 25 in this region by 2030.[111]
The East African Community's current urban population stands at about 20%.[citation needed]
Democratic Republic of the Congo: Other Christian 36.5%, Roman Catholic 29.9%, Protestantism 26.7%, Kimbanguist 2.8%, Muslin 1.3%, none 1.3%, other 1.2%, unspecified .2% (2014 CIA est.)
Kenya: Christian 85.5% (Protestant 33.4%, Catholic 20.6%, Evangelical 20.4%, African Instituted Churches 7%, other Christian 4.1%), Muslim 10.9%, other 1.8%, none 1.6%, don't know/no answer 0.2% (2019 census)
Rwanda: Protestant 57.7% (includes Adventist 12.6%), Roman Catholic 38.2%, Muslim 2.1%, none 1.1%, other 1% (includes traditional, Jehovah's Witness) (2019-20 CIA est.)
South Sudan: Christianity 60.5%, Islam 6.2%, Folk religions 32.9%, Others 0.5%. (2020 Pew research est.) Note: Last conducted census is a 2008 Sudanese census.
Tanzania: Christian 63.1%, Muslim 34.1%, folk religion 1.1%, other 0.1%, unaffiliated 1.6% (2020 Pew research est.)
Uganda: Protestant 45.1% (Anglican 32.0%, Pentecostal/Born Again/Evangelical 11.1%, Seventh-day Adventist 1.7%, Baptist .3%), Roman Catholic 39.3%, Muslim 13.7%, other 1.6%, none 0.2%. (2014 census)
Somalia: Islam 99.8%, Other or Unaffiliated 0.2% (2022 census)
East African Community: Christianity 79.80%, Islam 15.97%, Folk religions 2.48%, Unaffiliated 1.49%, Other (Hinduism, Buddhism, etc.) 0.27%. (2020 Pew Research est.)
Languages
Kiswahili, English and French are designated as the official languages of the EAC, with Swahili designated for development as the lingua franca of the community.[1] Within the EAC, there are three countries whose official language is French: the Democratic Republic of the Congo, Rwanda and Burundi. Numerous local languages are also spoken: for example, there are 56 local languages spoken in Uganda,[114] 125 in Tanzania, 72 in South Sudan and 67 local languages in Kenya. Kinyarwanda is spoken in Rwanda and Uganda.[115] There are over 200 local languages spoken in the DRC. Lingala is widely spoken in the western Democratic Republic of Congo, with about 15 million speakers and Kiswahili with 23 million speakers across the country.[116]
Comparison with other regional blocs
This section needs to be updated. Please help update this article to reflect recent events or newly available information.(November 2023)
2: Proposed for pillar REC, but objecting participation.
3: Non-African members of GAFTA are excluded from figures.
a: The area 446,550 km2 used for Morocco excludes all disputed territories, while 710,850 km2 would include the Moroccan-claimed and partially-controlled parts of Western Sahara (claimed as the Sahrawi Arab Democratic Republic by the Polisario Front). Morocco also claims Ceuta and Melilla, making up about 22.8 km2 (8.8 sq mi) more claimed territory.
^"EAC Update E-newsletter". eac.int. Directorate of Corporate Communications and Public Affairs. Archived from the original on 26 April 2012. Retrieved 10 December 2011.
^Aloo, Leonard Obura (2017), Ugirashebuja, Emmanuel; Ruhangisa, John Eudes; Ottervanger, Tom; Cuyvers, Armin (eds.), "Free Movement of Goods in the EAC", East African Community Law, Institutional, Substantive and Comparative EU Aspects, Brill, pp. 303–325, JSTOR10.1163/j.ctt1w76vj2.23, retrieved 21 February 2022
^Bruce Byiers; Poorva Karkare; Frederick Golooba-Mutebi; Bossissi Nkuba; Christelle Balegamire Karuta (April 2023), Security through market integration? The political economy of the DRC's accession to the EAC, The centre for Africa-Europe relations, p. 23
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