December 1, 2015

Integrating East Africa: progress, challenges and future prospects

Side panel session organised by TradeMark East Africa at the ICTSD Trade and Development Symposium 2015

The East African Community is the most advanced and ambitious Regional Economic Community in Africa, having made the most linear progress towards a full economic union. It has developed a fully functioning FTA, and has made good progress on establishing a Customs Union. In 2010 it established a Common Market and in 2013 it adopted the EAC Protocol, outlining their plan to launch a monetary union within the next 10 years. Comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, the EAC also serves as a gateway to the EAC-COMESA-SADC Tripartite Free Trade Area, which should come into force in 2017. The political leadership of the EAC Secretariat and Member States and significant investments in trade facilitation and infrastructure along the Northern and Central Corridors are helping drive down trade costs and delivery times for small and medium-sized firms in the entire region and increase intra-regional trade. The United Nations Economic
Commission for Africa (UNECA) reported that between 2000 and 2012 intra-regional exports by destination averaged 19.5% compared to the Southern African Development Community (SADC), which averaged 10.9%, and the Economic Community of West African States (ECOWAS) with 8.7%.

Funded by Belgium, Canada, Denmark, Sweden, Finland, Netherlands, the United Kingdom and the United States, TradeMark East Africa (TMEA) has been an innovative $600 million Aid for Trade initiative, for delivering support to the EAC to achieve their long held goals of regional integration and translate the political will of the member states into concrete results for improving trade facilitation. Focused on increasing physical access to markets, enhancing the trade environment, and improving business competitiveness in the region, TMEA works on reforms to improve border management, product standards, transport and distribution that will bring about vast benefits for East African economies by significantly lowering trade costs. TMEA’s flexible and demand-led approach emphasising national and regional buy-in has meant a $34 return for every $1 invested by the programme.

This side event will explore how the unique blend of regional and national political will and innovative and responsive development finance has been used to drive forward the regional integration agenda in the EAC, and ensure it translates into tangible benefits for all East Africans. It will discuss the progress made, the success and the challenges so far, as well as look forward at the future prospects for the region.

Panelists include:

  • Dr Amb. Richard Sezibera, Secretary General, East African Community (EAC)
  • Dr Mukhisa Kituyi, Secretary General, United Nations Conference on Trade and Development (UNCTAD)
  • Frank Matsaert, CEO, TradeMark East Africa
  • Ali Mufuruki, Board Chair, TradeMark East Africa
  • Amb. Amina Mohamed, Ministry of Foreign Affairs and International Trade, Kenya
  • Amb. Valentine Sendanyoye Rugwabiza, Minister for the Ministry of East African Community (MEAC), Rwanda
  • Marren Akatsa Bukachi, Executive Director, Eastern African Sub Regional Support Initiative for Advancement of Women (EASSI)
  • Steve Felder, Maersk Line Head of East Africa

Moderator:

Julie Gichuru/Jeff Koinange/Aly-Khan Satchu (TBC)

Draft Programme (Date and Time to be confirmed)

16:00 – 16-15: Introductory remarks and welcome

16:15 – 16:45: Opening remarks by panellists

16:45 – 17:30: Moderated discussion

17.30 – 18:00: Q&A with the audience

Panel discussion:

The panel is structured around a set of key questions that discussants will be asked to reflect upon:

  1. How have government agencies, private sector interests and development partners cooperated in driving forward the regional integration agenda in the EAC?
  2. What have been some of the main success stories of the East African regional integration project?
    How have they translated into tangible benefits for all East Africans?
  3. What have been some of the main challenges to regional integration in the EAC?
  4. Within a very short time frame EAC has made enormous progress and has adopted very ambitious timelines for achieving a Common Market and Monetary Union. However implementation at national level has often lagged behind. What mechanisms and support structures can ensure
    implementation keeps up with the EAC Protocol?
  5. How can the EAC sustain the momentum of the past 10 years as it moves towards the launch of a monetary union? How can the EAC ensure that the benefits of regional integration are distributed evenly among its member states and all East Africans? What are likely to be some of the main political, institutional, economic and social challenges moving ahead?
  6. What are the lessons learned and possible models for regional integration in the rest of Sub-Saharan Africa?