2008, EAC’s year of great economic strides

2008 has been a year of ups and downs in many aspects. However, I am sure I will not be proved wrong to say that there have been more ups than the downs. In economics, it’s a well known principle that scarcity coupled with demand leads to a rise in price. This was proved with the skyrocketing of fuel prices and fuel shortages caused as a result of the violence in Kenya and cut off of the supply routes. It was a great relief when Raila Odinga and Mwai Kibaki worked out a solution and agreed to work together for the good of the Kenyan people and indirectly for the rest of the East Africans. This year can also be called the year of the EAC. Rwanda joined the EAC in 2007 and already her positive presence is being felt. The first one surely is the enlargement of the EAC market by many millions. Rwanda and Burundi’s joining of the EAC made the market grow to over a 100 million people. The market gets even bigger when one looks at the EAC neighbours whom the EAC will supply goods and definitely import from as well. However, I will look at three breakthroughs that have always been championed by our very own President Paul Kagame; the need to reduce trade barriers among member states. The barriers included the numerous weighbridges, border hours, work permits and many more. The first good news was when the Kenyan Minister of State for Provincial Administration and Internal Security was directed to reduce the number of weighbridges along the Mombasa-Busia road from 13 to two by the end of this year. President Paul Kagame had on several occasions called for the reduction of the number of weighbridges along this road which links Rwanda, Uganda, Burundi and the eastern Democratic Republic of Congo to the Indian Ocean. He said the many unnecessary roadblocks contribute to corruption in the region. It was therefore great relief for the business community when Kenya further ordered the reduction of weighbridges from 47 to 15. This will ease the region’s access to the global market and encourage business in the region, something 2009 will surely explore. The decision by the Kenyan government will not only favour the hinterland since an increase in the use of their port will accelerate her gains from the port. After sorting the weighbridge issue, in September, Rwanda announced a 24-hour border operation at all her border customs posts with the East African Community partner states and the Democratic Republic of Congo. By so doing, Rwanda became the third country after Kenya and Uganda to start 24 hour customs operations within the EAC bloc as a measure to hasten trade and improve movement of goods and persons across the region. Kenya’s President Mwai Kibaki had earlier directed the implementation of a 24 hour, seven days a week delivery, at the port of Mombasa and border entry at Lunga Lunga, Taveta, Namanga, Isabenia and Malaba. The move would see the clearance of cargo at the port of Mombasa reduced from 48 hours to a maximum of 24 hours. These moves were definitely milestones in as far as driving the EAC towards the economic prosperity it is striving for. However, the icing on the cake was the waiver of work permits by both Kenya and Rwanda for each other’s nationals. This brings with it a myriad of economic advantages. With free movement nationals will be able to explore their potential to the maximum. A person will not be moving with apprehension in fear of being arrested over a work permit. This will create competition and improved quality service and products for the consumer. Given the increased market share and the planned tax harmonisation, the shrewd entrepreneur is bound to reap big. This also means that those tied in old traditions of waking up at 8a.m, having two hour lunch breaks and closing shop by 6p.m will lose out on the intention of all these initiatives. The East African Community leaders under the Chairmanship of President Paul Kagame played their role in 2008 and it’s up to us to play our in 2009. Or else, we let the sleeping dogs lie. Ends