EAC leaders highlight investment potentials

East African Presidential Summit opened on Thursday in Kigali with calls for the community to be much more practical and meaningful if the region is to develop economically. The summit also coincided with the equally glamorous East African Business Conference, the conference brought together leaders of EAC’ leading traders and corporate organisations to discuss the issues that the private sectors in the region can present to the leaders of the block. Heads of state from Burundi, Rwanda, Kenya, Tanzania and Uganda attended the summit along with their respective ministers of the EAC. While opening the East African Business council, President Paul Kagame called upon other leaders in the region to increase public service delivery efficiency especially in commercial activities such that more small and large scale investments can be encouraged or attracted to the region. Kagame also received the mantle of the chairmanship of the East African Community from Ugandas President Yoweri Museveni for 2008/9. The Auditor General continues to reveal that corruption intolerance, Rwanda’s long held ‘unique selling position’ in marketing terms is also slowly becoming instinct. The disease, like a bean weevil is slowly eating away Rwandas public finance coffers, numerous calls of attention from Kamagaju withstanding! Fighting corruption has long been the trade mark of Rwanda in the region, the image of President Paul Kagame, because of that record would certainly not be misplaced in a campaign advert against fighting the public and private service scourge. However in a recent twist of Evelyn Kamagajus report is that Frw 3 billion was unaccounted for. Talking finance in the same week was Rwanda Revenue Authority which revealed that Frw 300m was missing in action. This money according to reports is spent on a myriad consultancy individuals and firms in the country whose incomes are not taxed by RRA. This would be a normal story if it was not recently revealed by Rwanda Private Sector Development boss, Robert Bayigamba that Rwanda government spends a mind blowing Frw 80 billion on consultancy fees annually and 73 percent of that figure is taken by consultants from donor countries according to RPSFs Bayigamba. Now reports are emerging that this particular service sector is not taxed because the consultants from outside countries claim to be paying taxes in their home countries and therefore should not be taxed in Rwanda. However, the senior Revenue official that was addressing accountants’ workshop at La Pallisse Hotel Nyandungu was informed by the accountants attending the workshop that they did not understand the new Tax Policy, and therefore did not know yet, whom to tax and whom not to. The pun is intended! Consultancy services and their related fees were very much in the news after the East African Legislatve Assembly sitting in Arusha earlier in the week had passed the budget for 2008-9 financial year of the East African Community affairs, upon which Rwandas fast tracking in joining the block are high on agenda. The regional legislators were concerned about the amount of money the EAC secretariat spends on consultancy services, yet it also employed permanent expert staff. The EAC secretariats spend 43 percent of its funds to consultancy services revealed the representatives. This year alone, the EAC secretariat is estimated to use USD 7,348,643. The East African Community also expressed a desire to launch a marketing campaign for the community by re-branding the image of the group, so that it can be appreciated by ordinary East Africans like you. In the Presidential summit many leaders also expressed commitment towards establishing a regional infrastructural programme to include a network of roads, railways and airports. In Zimbabwe, political situation is still tense and the country is giving humanity and political experts sleepless nights figuring out what exactly old Robert Mugabe is up to. Also in the news; Rwanda’s Constitution ammended for the third time since its inception in 2003. Ends