EAST AFRICA COMMUNITY: Private sector consults on EA Political federation

Participants were optimistic that the EAC customs union and common market coupled with a common currency will certainly improve trade in this huge market of over 120million people On Tuesday November 05, 2008, a half-day consultative meeting was held at the Private Sector Forum (PSF) headquarters to generate views from Rwanda’s private sector, on the creation of an East African, Political Federation. The meeting was attended by, among others, heads of private sector chambers and associations, and the PSF leadership. While the East African Community (EAC), adopts the Customs Union that advocates for a Common External Tariff (CET), individual member states have formed national consultative committees to fast track the East Africa Political Federation. It is in this vein that the 12-member Rwanda National Consultative Committee made up of representatives of relevant institutions in both the public and private sector was formed to generate views on the EA Political Federation. The committee representatives are now generating views and ideas that will be incorporated into the EA Political Federation framework. Participants were optimistic that the EAC customs union and common market coupled with a common currency will certainly improve trade in this huge market of over 120million people. Rwanda and Burundi acceded to the EAC in June last year. They were allowed until June next year to subscribe to the EAC Customs Union and by 2010 a Common Market will become effective. According to the PSF Secretary General, Mr. Emmanuel Hategeka, who is also a member to the committee, this will address the most pressing businessman’s concerns, which are; free movement of goods, services, capital and people. He asked the business leaders to give independent thoughts and assured them that their views will be considered in crafting the Political Federation framework. The EA Political Federation is expected to be in place by 2013 advocates for creating a unitary government for all the five member states. Integration being a completely new development in Rwanda’s economic history, the business people sought clarification on various aspects, which include; concerns on insecurity and corruption that is rampant in some other member states that may spread to a safer and corrupt-free Rwanda. On worries that bigger economies of Kenya, Uganda and Tanzania, are likely to squash young economies of Rwanda and Burundi, the PSF SG said all member states were given a chance to develop a list of sensitive goods that would be protected. And that the RRA in partnership with PSF develop with this list that will be adopted in the EAC Common Market framework. Generally, the business people are concerned about the timeframe all these (Customs Union, Common Market and EA Political Federation) will be implemented, that it is quite short. It was suggested that the EAC comes up with a clear and more realistic strategy for realising all these developments. Ends

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EAST AFRICA COMMUNITY: Private sector consults on EA Political federation