EAC Archives - African Leadership Magazine https://www.africanleadershipmagazine.co.uk/tag/eac/ Most Reliable Source for Afro-centric News Tue, 11 Mar 2025 11:30:45 +0000 en hourly 1 https://wordpress.org/?v=6.2.6 https://www.africanleadershipmagazine.co.uk/wp-content/uploads/2019/01/cropped-289x96-32x32.jpg EAC Archives - African Leadership Magazine https://www.africanleadershipmagazine.co.uk/tag/eac/ 32 32 Regional Blocs vs. Nationalism: Balancing Economic Unity and Sovereignty https://www.africanleadershipmagazine.co.uk/regional-blocs-vs-nationalism-balancing-economic-unity-and-sovereignty/ Tue, 11 Mar 2025 11:30:45 +0000 https://www.africanleadershipmagazine.co.uk/?p=65677 With a growing push for deeper regional integration through initiatives like the African Continental Free Trade Area (AfCFTA), and while individual nations remain protective of their sovereignty and economic independence,.

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With a growing push for deeper regional integration through initiatives like the African Continental Free Trade Area (AfCFTA), and while individual nations remain protective of their sovereignty and economic independence, there is a stark dilemma. Should African countries fully embrace economic unity, risking national control over key industries, or should they maintain a nationalist stance, potentially stifling regional economic growth?

 

The stakes are high. Africa’s collective GDP exceeds $3.4 trillion, and AfCFTA aims to create a single market of 1.2 billion people, potentially making it the world’s largest free trade area. If properly implemented, it could boost intra-African trade by over 52% by 2035, creating a powerful economic bloc capable of competing globally. However, the path to integration is complicated by long-standing issues of nationalism, protectionist policies, and economic disparities between member states.

 

READ ALSO: Cultural Diplomacy: Advancing Africa’s Foreign Relations

 

For decades, Africa has struggled with fragmented markets, making intra-African trade dismally low at just 15% of total trade, compared to 68% in Europe and 58% in Asia. This is largely due to colonial-era economic structures that left African nations trading more with former colonial powers than with their neighbours. AfCFTA seeks to break these barriers by eliminating tariffs on 90% of goods, standardising trade regulations, and fostering a unified industrial base that allows African businesses to scale up.

 

According to the World Bank, full implementation of AfCFTA could boost regional income by 7% and add $450 billion to Africa’s economy by 2035, lifting 30 million people out of extreme poverty. Manufacturing, which currently accounts for just 10% of Africa’s exports, is expected to expand, reducing the continent’s dependence on raw material exports. The economic logic is clear: regional integration would enhance African industries’ global competitiveness and attract foreign direct investment (FDI) into sectors such as technology, agriculture, and infrastructure.

 

Nationalism as a Double-Edged Sword

Despite the economic benefits of integration, many African nations remain reluctant to fully commit, citing concerns over national sovereignty and economic control. A major concern is the fear of unfair competition. For instance, Nigeria, Africa’s largest economy, initially hesitated to sign AfCFTA, worried it would flood the country with foreign goods and undermine local industries. Similarly, South Africa, the continent’s second-largest economy, has been cautious about fully opening its labour market, fearing job losses for its citizens.

 

Another significant issue is revenue loss. Many African governments rely heavily on import duties, which account for up to 30% of government earnings in some countries. Eliminating tariffs under AfCFTA means these nations must find alternative revenue sources, a transition not all governments are prepared for.

 

Economic nationalism is also fuelled by a history of unfulfilled trade agreements. The Economic Community of West African States (ECOWAS) has struggled with compliance, as member states frequently impose unilateral trade restrictions despite the bloc’s vision of a common market. The Southern African Development Community (SADC) has faced similar challenges, with nations like South Africa prioritising trade with Europe and China over regional trade. These setbacks make many governments hesitant to surrender control to a broader continental agreement.

 

The Role of Regional Blocs

Africa’s regional economic communities (RECs) have long been seen as the building blocks of continental integration, but their effectiveness has been mixed. The East African Community (EAC) has had some success, reducing trade costs by 30% through improved infrastructure and streamlined customs regulations. In contrast, ECOWAS and SADC have struggled with conflicting policies, leading to inefficiencies and slow progress in trade liberalisation.

 

One of the biggest hurdles is the overlapping memberships of African countries in multiple regional blocs, creating regulatory confusion. A country like Kenya, for example, belongs to both the EAC and the Common Market for Eastern and Southern Africa (COMESA), which have different trade rules. This fragmentation dilutes the effectiveness of economic agreements and slows down integration efforts.

 

Can Africa Integrate Without Losing Sovereignty?

A realistic approach to economic integration must acknowledge national interests while finding common ground for regional cooperation. A “flexible integration” model, where countries adopt AfCFTA provisions at their own pace, could help ease the transition. Instead of enforcing blanket policies, member states could prioritise sectors that align with their economic strengths while protecting vulnerable industries.

 

Strategic industrial policies will also be key. Only 10% of Africa’s exports are manufactured goods, compared to 70% in Europe, highlighting the need for coordinated industrialisation efforts. Rather than competing, African countries should focus on complementing each other’s strengths. For instance, Ethiopia’s strong textile industry could supply raw materials for garment factories in West Africa, creating a regional supply chain.

 

Reducing trade barriers is another critical step. Africa’s average import cost of $2,492 per container is nearly triple that of East Asia due to bureaucratic customs procedures. Simplifying trade regulations and improving port efficiency would drastically lower costs and make intra-African trade more competitive.

 

Investment in infrastructure is also crucial. The continent faces an annual infrastructure funding gap of $68 billion to $108 billion, making transportation and logistics expensive. Improved road networks, railways, and energy supply would reduce costs and enhance trade within Africa.

 

The Future of African Economic Unity

Africa’s economic future depends on its ability to balance regional integration with national sovereignty. While nationalism serves a protective function, excessive economic isolationism could leave African economies vulnerable to external pressures from global economic giants like China, the US, and the EU. AfCFTA offers an opportunity to create a self-sustaining economic ecosystem that reduces reliance on foreign markets.

 

The journey towards economic unity will be challenging, but Africa must decide whether to continue as a collection of fragmented economies or rise as a formidable economic powerhouse. The potential reward is massive—$4 trillion in consumer and business spending is at stake.

 

Economic unity is like weaving a grand African tapestry. Each nation contributes its unique thread, ensuring the fabric is strong and vibrant. But if some threads refuse to intertwine, the fabric weakens. The challenge is not whether Africa should integrate, but how to do so while preserving its unique identities. If leaders can strike the right balance, Africa could become a global economic force, shaping its own destiny instead of being shaped by others.

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Can Africa Unite Beyond Trade Agreements? https://www.africanleadershipmagazine.co.uk/can-africa-unite-beyond-trade-agreements/ Thu, 27 Feb 2025 08:13:29 +0000 https://www.africanleadershipmagazine.co.uk/?p=65567 Africa is more connected now than ever through commerce, yet politically and socially, it remains deeply fragmented. The dream of a united Africa is as old as the independence movements.

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Africa is more connected now than ever through commerce, yet politically and socially, it remains deeply fragmented. The dream of a united Africa is as old as the independence movements that swept across the continent. With questions of it ever becoming a reality beyond economic agreements. There’s an opportunity for Africa to reawaken to a political and cultural reality. The African Continental Free Trade Area (AfCFTA) has been heralded as a game-changer, but there are concerns that Africa’s unity is being reduced to trade corridors and financial gains. Whether it can transcend commerce to forge a true Pan-African identity.

 

The Roots of Pan-Africanism

Pan-Africanism has deep historical roots, originating in the intellectual ferment of the late 19th and early 20th centuries. Visionaries like W.E.B. Du Bois, Marcus Garvey, and later Kwame Nkrumah ignited a movement aimed at unifying Africans and their descendants worldwide. The first Pan-African Congress in 1900 laid the ideological foundation, while post-colonial Africa saw the rise of leaders who aspired to a continent free from external domination and self-sufficient in governance and economy.

 

READ ALSO: A Call for Unity and Progress through Pan-Africanism

 

The formation of the Organisation of African Unity (OAU) in 1963 was a monumental step, driven by leaders like Nkrumah, Jomo Kenyatta, and Julius Nyerere, who believed Africa’s salvation lay in unity. However, political differences, ideological rifts, and external influences hampered progress. By 2002, the OAU transformed into the African Union (AU), promising a more integrated approach to governance and economic prosperity.

 

AfCFTA and the Pursuit of Unity

In 2018, the AfCFTA was established, hailed as the largest trade bloc since the formation of the World Trade Organization. With a combined GDP of over $3.4 trillion and a market of 1.3 billion people, the AfCFTA seeks to boost intra-African trade, which remains at a dismal 16%, compared to 60% in Europe and 40% in Asia. The agreement, fully ratified by 47 out of 54 signatory countries, aims to eliminate tariffs on 90% of goods, bolster industrialisation, and create millions of jobs.

 

Yet, while AfCFTA is a financial beacon, critics argue that trade alone cannot foster true unity. The continent remains divided by over 1,500 languages, differing legal systems, and varying levels of infrastructure development. Africa’s physical disconnection, exemplified by weak transport networks and cumbersome border regulations, poses a challenge to the seamless flow of goods and people.

 

Political and Institutional Fragmentation

Political will remains Africa’s Achilles’ heel. While economic agreements are easier to negotiate, political integration faces staunch resistance. The AU has struggled to exert real influence in resolving conflicts such as the Tigray war in Ethiopia and the jihadist insurgency in the Sahel. Regional blocs like ECOWAS, SADC, and EAC often act independently, highlighting a deep-seated reluctance to cede national sovereignty to a supranational African government.

 

Despite the 2013 AU Agenda 2063, which envisions a politically united Africa, efforts toward a common passport, a single African currency, or a Pan-African military force remain elusive. Africa’s geopolitical alignments also play a role, with nations balancing interests between China, the U.S., Russia, and former colonial powers. This external dependence weakens Africa’s ability to speak with one voice on global platforms.

 

The Missing Link: Cultural and Social Unity

Beyond trade and politics, Pan-Africanism must address cultural and social unity. The African identity remains fractured, with many young Africans identifying more with Western or Arab influences than their own heritage. Nollywood, Afrobeats, and the renaissance of African fashion have sparked global interest, but cultural integration across the continent remains slow. A united Africa must invest in education reforms that prioritise African history, languages, and shared values to foster a sense of belonging beyond borders.

 

Migration policies also highlight contradictions in African unity. While European passports allow free movement across multiple countries, Africans still face visa restrictions between their own nations. For instance, a Nigerian needs a visa to enter 34 out of 54 African countries (African Development Bank, 2023). Until free movement is a reality, true Pan-Africanism remains an illusion.

 

The Road Ahead: A Blueprint for True African Unity

If Africa is to move beyond trade agreements and into the realm of full-scale unity, it must take deliberate steps. Strengthening regional cooperation beyond economic policies is crucial. Political stability must be prioritised through a robust African Peace and Security Architecture (APSA) that actively mediates and prevents conflicts.

 

Investments in infrastructure must extend beyond ports and railways to digital connectivity and financial integration. The adoption of a single African digital currency could reduce reliance on Western financial systems and encourage intra-African trade. According to the AU, implementing a single currency could increase Africa’s trade volume by 50% within a decade (AU Economic Report, 2024).

 

Lastly, a cultural renaissance must be at the heart of Pan-Africanism. The AU should spearhead a continent-wide education initiative that makes African history and languages compulsory subjects in schools. This would create a generation that sees itself first as African before national affiliations.

 

The road to a truly united Africa is long and winding, fraught with political, economic, and social hurdles. However, the foundations of Pan-Africanism remain alive, albeit in need of revival beyond boardroom discussions. Trade agreements like AfCFTA are only the beginning; they must be accompanied by political commitment, cultural unification, and a shift in mindset among African citizens.

 

Can Africa unite beyond trade agreements? The answer lies not in economic figures alone but in the collective will of its people and leaders to transcend colonial legacies and redefine what it means to be African. The continent stands at a crossroads; whether it chooses integration or fragmentation will determine its place in global affairs in the decades to come.

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The Role of African Languages in Promoting Intra-Continental Communication https://www.africanleadershipmagazine.co.uk/the-role-of-african-languages-in-promoting-intra-continental-communication/ Wed, 11 Sep 2024 08:39:56 +0000 https://www.africanleadershipmagazine.co.uk/?p=63012 Globalisation has significantly enhanced communication and understanding across the world, and its impact on Africa is profound. The continent boasts a rich diversity of languages and cultures, which creates a.

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Globalisation has significantly enhanced communication and understanding across the world, and its impact on Africa is profound. The continent boasts a rich diversity of languages and cultures, which creates a complex landscape for indigenous languages and their role in fostering intra-African communication.

 

The use of native languages is a powerful tool for bridging gaps and fostering connections across African borders. With over 2,000 languages, Africa’s linguistic diversity mirrors the continent’s intricate historical, cultural, and social dynamics. Each language encapsulates a unique cultural heritage, history, and worldview.

 

However, this linguistic diversity complicates intra-continental communication, often hindering interaction between neighbouring countries. In many African nations, colonial languages such as English, French, and Portuguese serve as official languages, but these are frequently not the everyday languages of the majority. As a result, indigenous African languages play a crucial role in facilitating communication at the grassroots level.

 

The African Union and other regional organisations have taken steps to integrate African languages as a means of promoting local participation. These languages are often more accessible and relatable to the average citizen than colonial tongues. For instance, the East African Community (EAC) has adopted Swahili as its lingua franca, facilitating communication among member states and fostering unity across nations such as Kenya, Tanzania, and Uganda.

 

African languages are more than just tools for communication; they are also carriers of cultural values and norms. Promoting their use helps preserve the cultural heritage of African societies and leverages language as a form of soft power. Supporting language education and cultural exchange programmes creates an environment where Africa’s diverse cultures can flourish and engage positively with each other.

 

The use of local languages can also enhance educational outcomes and contribute to improved literacy rates. Research shows that children who are educated in their mother tongue learn more quickly, perform better academically, and develop stronger cognitive skills. This, in turn, contributes to the creation of a skilled and educated workforce capable of engaging more effectively in regional economic activities.

 

Furthermore, the ability to operate in multiple African languages creates opportunities for cross-border trade and investment. Entrepreneurs and businesses that can communicate across linguistic barriers are better positioned to access diverse markets and forge strong relationships with local communities. This linguistic versatility is key to enhancing economic integration and cooperation across the continent.

 

Despite these advantages, the promotion of African languages faces significant challenges. The dominance of colonial languages in official and educational settings has marginalised indigenous languages, leading to their gradual decline. Additionally, the sheer number of languages and dialects within Africa has made it difficult to promote and standardise local languages across regional economic communities.

 

Nevertheless, globalisation and digitalisation have also provided opportunities to preserve and promote African languages. Language learning apps, online media, and social networks offer innovative platforms for this purpose. Initiatives like the African Language Academy are addressing these challenges by fostering linguistic diversity and encouraging regional collaboration.

 

Preserving African languages is not merely about maintaining communication tools but safeguarding the social identity and cultural fabric of the continent. Embracing and promoting indigenous languages can enhance intra-continental communication, strengthen regional integration, and protect Africa’s rich cultural heritage for future generations.

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Dogged President of Kenya re-echo calls to end trade barrier in East Africa. https://www.africanleadershipmagazine.co.uk/kenyan-president-calls-to-end-trade-barrier-in-east-africa/ Mon, 23 Jan 2023 10:09:45 +0000 https://www.africanleadershipmagazine.co.uk/?p=55115 The call to end trade barriers in Africa has been on the front burner for the economic managers in the African continent and this call has been re-echoed by the.

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The call to end trade barriers in Africa has been on the front burner for the economic managers in the African continent and this call has been re-echoed by the newly elected President of Kenya, William Ruto.

President William Ruto

President Ruto who is rallying his fellow East African regional leaders, says that it will require joint forces to end the current trade and investment bottlenecks in the region.

President Ruto was speaking to the East Africa Community (EAC) council of ministers, a meeting he hosted in Nairobi, Kenya.
Rwanda’s Minister of State at the Ministry of Foreign Affairs was also part of the group led by its Chairman Ambassador Ezechiel Nibigira.

Also in attendance were Kenya’s Deputy President Rigathi Gachagua and the EAC and Regional Development Cabinet Secretary Rebecca Miano.

“We have a common destiny as East Africans. We must, therefore, work together towards eliminating impediments to trade and investment within the region for the prosperity of the people,” President Ruto said in a tweet.

The debate on the benefits of trade has dominated this decade, and Africa has cast its vote for more and better trade with itself. In March 2018, African countries signed a landmark trade agreement, the African Continental Free Trade Area Agreement (AfCFTA), which commits countries to remove tariffs on 90 percent of goods, progressively liberalize trade in services and address a host of other non-tariff barriers. If successfully implemented, the agreement will create a single African market of over a billion consumers with a total GDP of over $3 trillion.

This will make Africa the largest free trade area in the world. The AfCFTA as a result should stimulate demand for intra-African food imports, supporting the much-needed corporate and individual prosperity in the continent.

On this issue, it is expected that the President of Kenya will get all the needed support and cooperation from his counterparts in the region for a free flow of local goods and services between them to boost the regional economy and subsequently, that of the continent.

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Kenya, Tanzania Plan to End Trade Barriers https://www.africanleadershipmagazine.co.uk/kenya-tanzania-plan-to-end-trade-barriers/ Thu, 13 Oct 2022 13:20:26 +0000 https://www.africanleadershipmagazine.co.uk/?p=53531 The Kenyan President, William Ruto, and Tanzanian President, Samia Suluhu Hassan have agreed to work out a formula that will help in eradicating trade barriers between their countries. Ruto disclosed.

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The Kenyan President, William Ruto, and Tanzanian President, Samia Suluhu Hassan have agreed to work out a formula that will help in eradicating trade barriers between their countries.

Ruto disclosed this development after a closed-door meeting with Suluhu at Dar es Salaam State House.

He said, “The two countries are ready to improve their relations.

“A borderless East Africa Community (EAC) will allow free movement of goods and services among member countries, thus unlocking numerous business opportunities for the people.

“56 trade barriers between Kenya and Tanzania have so far been resolved, I am confident that the remaining 14 outstanding would soon be resolved.

“Once Kenya’s Cabinet Secretaries are approved by Parliament, those concerned with EAC matters will meet their Tanzania counterparts to work on the modalities of resolving the outstanding trade barriers to pave way for improved business activities.

“There is a need for our respective teams to convene and resolve the outstanding trade barriers before the end of December, this year.”

“In the years 2020 and 2021, Kenya’s exports to Tanzania increased to Ksh 45.6 billion while imports from Tanzania nearly doubled to Ksh 50.1 in 2021 from Ksh 27.2. This is a clear indication that trade is in favour of Tanzania.

“Opening up of EAC would benefit all its member states.”

The two African leaders said the concerned ministers would meet and ensure the outstanding trade barriers between the two countries are resolved before the end of the year.

Also, Suluhu said, “The two countries have agreed on the need to ease the transportation of key energy resources, noting that measures have been put in place for the implementation of the project.

“Our countries are only separated by boundaries but we must build on our close cultural and historic ties to ensure our citizens benefit from interactions.

“Our two countries are connected by a common culture, language, and heritage. We are not only neighbors but we are brothers and sisters.”

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Somalia renews push to join East African Community https://www.africanleadershipmagazine.co.uk/somalia-renews-push-to-join-east-african-community/ Tue, 26 Jul 2022 10:05:21 +0000 https://www.africanleadershipmagazine.co.uk/?p=51809 Somalia has renewed interest in joining the East African Community (EAC), cementing the desire of President Hassan Sheikh Mohamud to stabilise ties with neighbours. President Mohamud, who won the presidential.

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Somalia has renewed interest in joining the East African Community (EAC), cementing the desire of President Hassan Sheikh Mohamud to stabilise ties with neighbours.

President Mohamud, who won the presidential polls in May, was expected in Arusha on Thursday as a special guest to attend the 21st Ordinary Summit of the EAC Heads of State. And Villa Somalia, his official residence, said his trip would also be about renewing his push to join the regional bloc.

“President Hassan Sheikh Mohamud is leaving tomorrow (Thursday) for Arusha in Tanzania to seek support for to join the East African Community (EAC), which if possible will benefit the Somali people,” his office said on Wednesday.

Mr Mohamud had attempted joining the EAC in his first term between 2012 and 2017, but the bloc initially refused the application, citing sporadic conflict and weak institutions in Somalia. But Mogadishu got back its hope after an equally troubled South Sudan was admitted in 2016.

In 2019, then President Mohamed Farmaajo reapplied alongside the Democratic Republic of Congo. Last February, the bloc decided to begin admitting Kinshasa but delayed a decision on Mogadishu, pending verification by a team of experts to determine Somalia’s readiness.

“The summit noted that the verification exercise for the admission of the Federal Republic of Somalia into the East Africa Community had not been undertaken and directed the Council to follow up on the exercise,” the EAC said after a summit last year.

If the bloc begins to verify Somalia’s status, Mogadishu may not be admitted at least until a year later, going by the previous admission procedures.

The EAC partner states are Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan and DR Congo. The countries become members of the bloc when they meet certain conditions set out in the 1999 Treaty for the Establishment of the East African Community. Those conditions include respect for universal principles of good governance, democracy, the rule of law, respect for human rights and other civil liberties.

Some of the latest entrants, however, have been weak on these fronts, and officials have argued that they were admitted to influence them towards better governance instead of leaving them dead. Somalia is already a member of the Common Market for Eastern and Southern Africa (Comesa), a trading bloc of 21 countries in the north, east, central and southern Africa, which includes most of the EAC members today.

With its long coastline, Somalia could provide added access to the sea, and Somalis could benefit from free movement within the bloc as opposed to the situation where they need a visa today. However, Somalia’s security problems, including a resurgent Al-Shabaab, means the bloc could also be taking in a common problem.

(The EastAfrican)

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DR Congo officially becomes a member state of East African Community https://www.africanleadershipmagazine.co.uk/dr-congo-officially-becomes-a-member-state-of-east-african-community/ Sat, 16 Jul 2022 09:10:41 +0000 https://www.africanleadershipmagazine.co.uk/?p=51640 The Democratic Republic of Congo (DRC) is now an official member of the East African Community (EAC) after depositing instruments of ratification on the accession of the EAC Treaty with.

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The Democratic Republic of Congo (DRC) is now an official member of the East African Community (EAC) after depositing instruments of ratification on the accession of the EAC Treaty with the bloc’s secretariat.

At a function held at the EAC headquarters in Arusha, Tanzania, on Monday, the DR Congo delegation led by its Vice Prime Minister and Minister for Foreign Affairs, Christophe Lutundula Apala Pen’ Apala, completed its final step in joining the regional bloc.

“This is a formalisation of a situation that has always been in existence. Somehow we can say the DRC joined their people,” said Mr Apala Pen’ Apala.

“In the name of the DRC, all the institutions and the people of Congo, we totally trust the EAC.”

He reaffirmed his country’s commitment to being part of the community and joining the various areas of cooperation in all the sectors, programmes and activities that promote the four pillars of regional integration — the Customs Union, Common Market Protocol, Monetary Union and the Political Federation.

“Today marks the completion by the DRC of the processes and procedures towards becoming a full member of the EAC,” said Dr Peter Mathuki, EAC secretary-general.

“Article 11 of the Treaty of Accession by the DRC to the EAC Treaty provides that the Accession Treaty shall enter into force on the date the DRC deposits the instrument of ratification with the Secretary-General of the EAC. So, I am very happy to declare that, today, 11th July 2022, the DRC has become the 7th Partner State of the EAC.”

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Private sector calls for tax uniformity across EAC https://www.africanleadershipmagazine.co.uk/private-sector-calls-for-tax-uniformity-across-eac/ Thu, 26 May 2022 15:08:08 +0000 https://www.africanleadershipmagazine.co.uk/?p=50890 The private sector in the East African Community has proposed the harmonisation of several taxes including value-added tax, income tax and excise duty in the 2022/2023 budget, arguing this will.

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The private sector in the East African Community has proposed the harmonisation of several taxes including value-added tax, income tax and excise duty in the 2022/2023 budget, arguing this will ease the cost of doing business in the region.

“Tax harmonisation is extremely important for all of use as East Africans. Tax matters impact businesses and most importantly impact our people,” said Simon Kaheru, the East African Business Council (EABC) chairperson, Uganda chapter.

“What matters for us is to see a pro-people budget in all of East Africa in the 2022/23 financial year.”

Kenya has already unveiled its budget due to the upcoming elections in August. But Tanzania, Rwanda and Uganda will unveil theirs in June. Burundi is yet to align their budget same as South Sudan and the latest entrant DR Congo.

However, the budgets will all be effective starting July 1.

“We want to see harmonised taxes so that we have positive effects on the rights and freedoms of people and businesses in East Africa. This will enhance the integration of the East Africa region,” said Mr Kaheru.

He added that the harmonisation of domestic tax rates will enable partner states to move ahead together as a bloc.

Each partner state is expected to charge the same VAT percentage on goods.

As far as excise duty in the EAC region is concerned, the EABC wants to see rates that will lower the cost of doing business.

Tanzania charges excise duty on fewer services compared with the rest of the region. Indeed, excise duty is applicable to telecommunications as well as to financial institutions.

For telecommunication firms, there are two different duties that are applicable. A duty of 17 per cent is applicable on data and airtime making it expensive for telephone calls from out of Tanzania.

In Uganda, excise duty is 12 per cent for data and airtime while in Kenya the rate applicable is 20 per cent. Rwanda is 10 per cent.

When it comes to money transfer, Tanzania charges excise duty at the rate of 10 per cent, Uganda is at 15 per cent for money transfer as well as an additional 0.5 per cent on the value of the transaction at the time of withdrawing the money.

For Kenya, money transfer attracts an excise duty of 12 while Rwanda at 10 per cent.
In Uganda, there is an additional rate of 0.9 per cent per dollar per minute that applies to all incoming calls.

The EABC wants excise duty curbed at 10 per cent in all the EAC partner states.

“A good tax regime is one that has the following components; convenience, flexibility, equity and optimal economy. These should guide the reforms in terms of harmonisation of domestic tax in the East African region,” said John Kalisa, CEO, EABC.

“The private sector wants the excise duty harmonised in the region to allow for cheaper telephone calls and lower charges on communication.”

On banks, Tanzania charges excise duty at 10 per cent (fees and commission), Uganda at 15 per cent, Kenya at 20 per cent and Rwanda does not charge any.

(The EastAfrican)

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Uganda Issues its First Electronic Passports to Citizens https://www.africanleadershipmagazine.co.uk/uganda-issues-its-first-electronic-passports-to-citizens/ Wed, 25 May 2022 15:19:23 +0000 https://www.africanleadershipmagazine.co.uk/?p=50872 Uganda has become the first country in East Africa to issue electronic passports to its residents. After the government phased out the old document readers, those who have not yet.

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Uganda has become the first country in East Africa to issue electronic passports to its residents. After the government phased out the old document readers, those who have not yet obtained an e-passport cannot travel outside of Uganda.

The EAC agreements superseded Uganda’s old passports. In April of this year, Uganda replaced the old travel documents.

Six years ago, after the EAC heads of state summit in Arusha, Tanzania, the decision to phase out the old passports was made.

Kenya is scheduled to switch to e-passports in November, after the December 2021 deadline has passed.

All EAC countries that have not yet adopted the e-passport must do so following the regional bloc’s directives, according to EAC Secretary-General Peter Mathuki.

According to a communiqué from Rwanda’s Directorate General of Immigration and Emigration, the new passports will be available by June 27, 2022.

Kenyan nationals now have access to a new chip-embedded passport, which is intended to combat widespread counterfeiting and impersonation. The new characteristics make forgery or duplication of a Kenyan passport impossible.

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AU, UN backs new regional peace bid in DR Congo https://www.africanleadershipmagazine.co.uk/au-un-backs-new-regional-peace-bid-in-dr-congo/ Wed, 27 Apr 2022 13:06:57 +0000 https://www.africanleadershipmagazine.co.uk/?p=50368 The African Union, AU, and the United Nations have backed an eastern Africa initiative to bring peace to the Democratic Republic of Congo (DRC), boosting chances for a local solution.

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The African Union, AU, and the United Nations have backed an eastern Africa initiative to bring peace to the Democratic Republic of Congo (DRC), boosting chances for a local solution to the conflict.

Both the continental body (AU) and the UN say they support the latest bid by the East African Community (EAC) to bring armed groups to dialogue with the Government in Kinshasa, as well as the formation of a regional force to counter rebel groups who will refuse to negotiate for a political solution.

Moussa Faki Mahamat, the Chairperson of the AU Commission, said on Tuesday he supports the initiative that came out of the Second Heads of State Conclave on the Democratic Republic of Congo (DRC) in Nairobi, “particularly the decision to immediately deploy a regional force to restore peace and stability in the DRC.”

“Furthermore, the Chairperson welcomes the convened 1078th meeting of the AU Peace and Security Council of 19 April 2022 on the outcome of the 10th Regional Oversight Mechanism Summit held in February 2022 in Kinshasa.

“And reaffirms AU’s continued commitment, to the full implementation of the Peace, Security and Cooperation Framework Agreement for the DRC and the Region, as one of the Agreement’s guarantors,” he said.

The agreement is a 2013 document signed by DRC and all its neighbours—Angola, Burundi, Central African Republic, Congo, Rwanda, South Africa, South Sudan, Tanzania, Uganda, and Zambia. They vowed to support institutional rebuilding in the DRC, including a decentralised but consolidated state authority and a promise not to harbour rebel groups and war crimes suspects involved in conflicts in the DRC.

Most of that agreement has not been implemented. But last week, Kenya’s President Uhuru Kenyatta, the current chairman of the EAC, hosted a meeting with leaders who vowed to “immediately” create a regional force to deal with all armed groups who refuse dialogue.

The actual troop contributors were not immediately named.

But first, the meeting—attended by Presidents Kenyatta of Kenya, Yoweri Museveni of Uganda, Felix Tshisekedi of DRC and Evariste Ndayishimiye of Burundi, and Rwandan Foreign Minister Vincent Biruta who represented President Paul Kagame—agreed to have armed groups hold dialogue with the Government of DRC. Kenya offered to facilitate the travel and stay of the armed groups’ representatives in Nairobi.

“Towards this end, the meeting directed that planning for such a force commence with immediate effect with the full consultation of relevant authorities in the region,” said a joint communique issued after their meeting in Nairobi on Thursday.

“All armed groups in the DRC participate unconditionally in the political process to resolve their grievances. Failure to do so, all Congolese armed groups would be considered negative forces and handled militarily by the region,” the communique said.

On Saturday, Antonio Guterres, the UN Secretary-General, said the UN “fully supports the initiative by the East African Countries to bring peace in the eastern Democratic Republic of the Congo and the neighbouring countries.” He spoke following a phone call with President Kenyatta last week.

Although both sides began talks on Saturday in Nairobi, there were clashes between a faction of the M23 group and government forces (FARDC), leading the Government to refuse dialogue with the group until they cease violence.

A dispatch from the meeting said the Government accused the M-23 rebels based in Uganda of launching attacks in Bukasa, North Kivu.

“Consequently, the delegation revealed to the meeting that they have instructions to withdraw from any dialogue with the M-23 (Uganda).

“He nevertheless clarified the readiness to continue with the dialogue attended by other armed groups, other than the M-23 group based in Uganda. The allegations were quickly rebuffed by the representative of M-23 based in Uganda who in turn accused the Government of provocation,” a dispatch said on Saturday.

Since last Friday, at least 15 armed groups have been in dialogue with the Government. They include Gumino, Raia Mutomboki, FPDC, Twiraneho, UPSP and the three factions of the M23 group, which had earlier signed a peace deal with the Government but which claimed the agreement was never honoured.

Nonetheless, the Kenyan Government says gathering alone is a good step.

“The goodwill and enthusiasm demonstrated during today’s deliberations will be given further impetus by the arrival of nine (9) more groups on 25 April 2022,” said Macharia Kamau, Kenya’s Principal Secretary in the Foreign Affairs Ministry.

“There is big optimism that the parties to the dialogue will contour with proven dedication and commitment, guaranteeing progress towards a durable solution.”

The post AU, UN backs new regional peace bid in DR Congo appeared first on African Leadership Magazine.

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