EAC intra-trade increases two-fold

Intra-trade among member states of the East African Community (EAC) doubled over a five-year period, from $2.2 billion in 2005 to $4.1bn in 2010, a new report indicates.A survey whose report was released, yesterday, in Nairobi was conducted by the Society for International Development (SID) in conjunction with Trade Mark East Africa.The State of East Africa 2012 report was officially launched by the Secretary General of East African Community, Dr Richard Sezibera.It says the region is “globalising” rapidly and the value of its total trade with the world doubled from $17.5 billion in 2005 to $37 billion in 2010.It showed that the world is paying close attention to East Africa and engaging it with increasing intensity.This comes as the latest statistics show that Rwanda’s exports to her EAC partner states increased by 68.3 per cent, from $14.38 million in the fourth quarter of 2010 to $24.19 million in the same quarter in 2011Figures from the National Institute of Statistics of Rwanda (NISR) indicate that the overall exports to the region increased by 39.2 per cent, to $76.8 million in 2011, compared to $55.2 million in 2010.The EAC report further indicated that the region’s population grew by 24 million between 2005 and 2010 to 133 million, and it is estimated to reach 237 million by 2030.With an increased population and higher population density, the pressures on the region’s natural resources will intensify further, the report predicts.However, although the integration is on track, the new findings indicate that poverty is still a chronic challenge in the region.In response to this, George William Kayonga, the Permanent Secretary in the Ministry of EAC told The New Times that Rwanda has posted impressive results in reducing poverty levels.“Our experience over the years has shown that targeted policies, for example, through increased agricultural productivity, skills development to create off-farm jobs, rural electrification, feeder roads and urbanisation, can lead to reduced poverty” he said.A recent report launched earlier this year indicated that poverty levels reduced by 12 per cent from 2006 to 2011. “At the regional level, simplified cross border trade has improved the livelihood of border communities and can continue to grow through improved infrastructure,” Kayonga said.In an interview, John Bosco Kalisa, the country programmes manager TMEA, said that although the region was economically developing, there was a need for the member countries to focus on the private sector to solve some of the problems that still impede the region.“You have seen in the report that there are still challenges in the region, for example, Malnutrition in the region and cost of production is high…partner states must ensure business climate is conducive for the private sector,” he said.Speaking before the release of the report, Ambassador Juma V. Mwapachu, President of SID International, said that the report would provide information to all partners on current state of EAC. ‘Regional integration is a complicated but evolving process that starts and ends with the citizenry…one of the major goals of the report is to provide policy makers, civil society and the private sector with information and analysis that they can use to advocate their concerns and interests with respect to regional integration,” said Mwapachu, who is also the immediate former Secretary General of the EAC. The report says that East Africans are now more wired than ever before with the majority connecting to the Internet through their mobile phones. Meanwhile, the report also says Tanzania maintains the highest form of bureaucratic bottlenecks to the movement of goods and services in the East African Community, while Kenya, Uganda and Burundi follow in that order in imposing administrative and technical requirements that act as obstacles to trade.Rwanda has no complaint reported against it from the region in a survey that says integration of EAC has deepened although the challenges facing the bloc are increasing.The Society for International Development (SID) is a global network of individuals and institutions concerned with development which is participative, pluralistic and sustainable.