The Role of the East African Community in Promoting Regional Integration and Economic Development

The East African Community (EAC) is an East African intergovernmental organization which comprises of eight countries namely Kenya, Tanzania, South Sudan, the Democratic Republic of the Congo, Rwanda, Uganda, Burundi and the Federal Republic of Somalia. The EAC was formed in 1967 to promote regional economic growth and strengthen the relations between Kenya, Uganda and Tanzania which were the original members. It also created a common customs tarrif and a common market to enable the citizens of the three countries to trade with as few limitations s possible. The organization collapsed in 1977 due to disagreements between the member states. One of the reasons of the collapse of the EAC was that Kenya demanded more seats than Tanzania and Uganda in the organization’s decision-making bodies. In addition, there was conflict with the Ugandan ruler Idi Amin who demanded that Tanzania must not harbour forces which were seeking to overthrow the government of a fellow member country. Ideological differences also contributed to its collapse as Kenya pursued a capitalist model while Tanzania preferred socialism. The collapse of the EAC was a great tragedy because the three countries lost over 60 years of cooperation and the benefits associated with economies of scale due to the presence of a large common market.

On 30^th November 1993, the presidents of Kenya, Tanzania and Uganda namely Daniel arap Moi, Ali Hassan Mwinyi and Yoweri Kaguta Museveni signed the Treaty for East African Cooperation in Kampala to enable the process of re-integrating the region through cooperation in all sectors of the economic, political and cultural life.  On 30^th November 1999, the treaty for the revival of the EAC was signed and came into force on 7^th July 2000. Since then, the organization has grown as more member states sought to enjoy the benefits associated with the large market and regional integration.

The Growth/Enlargement of the EAC

Rwanda and Burundi

Initially, the EAC only had three member states, Kenya, Uganda and Tanzania who once had an intention of forming an East African Federation but these plans never materialized. As such, the organization agreed to welcome new members after Rwanda and Burundi expressed interest in joining the community. In 2007, the East African Community expanded for the first time by welcoming Burundi and Rwanda in to the regional community. The EAC is particularly important for Rwanda and Burundi because they are landlocked countries which rely on Tanzania and Kenya for access to coastal ports and international markets just like Uganda. The accession of Burundi and Rwanda showed that the EAC was attractive for countries in the region. It also increased the size of the common market thus increasing the opportunities for business men and women in the region leading to an increase in regional investment in the two countries.

South Sudan

In 2011, South Sudan achieved its independence from Sudan and was invited by the presidents of Rwanda and Kenya to join the EAC after the autonomous government of South Sudan expressed interest in joining the organization. Political analysts suggested that South Sudan sought to join the EAC and integrate its infrastructure such as roads, rail links and oil pipelines to countries in the community as part of its pivot away from depending of Sudan and towards the countries in its south. The process of accession of South Sudan was easy as all member states expressed their interest in letting the young country become the newest member. However, some isolated voices in South Sudan expressed concerns that the country would become a dumping ground for products from Kenya, Tanzania and Uganda which had larger and more developed economies. In addition, in 2014, South Sudan requested a delay in joining the organization presumably due to the internal conflict in the country. On 5^th September 2016, the country finally ratified the treaty of accession to the EAC and formally became a member country. Nonetheless, South Sudan does not yet participate in the organization to the same extent as other member states mainly due to the poor infrastructure in the country. However, the country has enjoyed significant investment from companies from member states which want to become key players in the South Sudanese market.

Democratic Republic of the Congo

Tanzania was the first member state to call for the membership of the DRC in the EAC mainly because it is a friendly country with a large market and natural resources which would be of great benefit for the member states. The DRC officially applied to join the regional community in 2019. On 21^st June 2021, a verification mission to determine the suitability of the DRC for accession the community was launched during the EAC Summit. The mission report of the verification team was recommended for consideration by the ministers in charge of East African Community affairs in the member states on 23^rd November 2021. It stated that the DRC has met all qualifications to join the community and recommended that the country should be accepted as a member state. On 29^th March 2022, the DRC was officially admitted as a member country of EAC at a virtual head of state summit held by the then president of Kenya, Uhuru Kenyatta. After it ratifed the treaty of ccession, it officially became a member of the communit on 11^th July 2022. Since then, the DRC has provided a lot of benefits to the community through increased trade and  investment by the member states.

Somalia

Somalia initially applied for EAC membership in March 2012. The Heads of State in the community reviewed the application and recommended that the EAC council should work with Somalia in the verification of the application. The EAC again held deliberations on Somalia’s application in February 2015 but decied to defer a decision because the Somalian government had not finalized its prepartions and the process of verification had not yet began. In July 2022, the Heads of States decided that the verification process for Somalia’s membership should be expedited during the 22^nd Ordinary Heads of States Summit. On 24^th November 2023, Somalia was formally invited to join the regional organization during the Heads of States Summit. The signing of the treaty of accession took place on 15^th December 2023 and Somalia’s parliament endorsed and ratified the treaty of accession on 10^th February 2024. As such, Somalia became the 8^th member of the EAC. It is noteworthy that Somalia has had multiple challenges due to the wars and political  instability in the country which may have played a part in delaying the country’s accession to the EAC. In addition, the country does not have well-developed infrastructure which is necessary to facilitate trade between it and the member states. In the future, it is hoped that the EAC will play a crucial part in the economic development of the Somalia.

Regional Institutions

The EAC has multiple institutions which work to encourage cooperation between the member states, regulate trade and solve conflicts which may emerge between the member states. These institutions were created to ensure that the integration of the region is well coordinated and that member states can raise complaints and solve conflicts without destroying their friendly relations. One of these institutions is the East African Legislative Assembly (EALA) which the community’s legislative arm. It consists of 27 members who are elected by the parliaments of the member countries. Its function is to provide oversight on all issues pertaining the community. It also debates the EAC’s budget and makes recommendations to the EAC council in cooperation with the local Parliaments. Additionally, it passes bills on issues regarding regional/international trade and plays a role in the regulation of transport in Lake Victoria.

The other important institution is the Secretariat which acts as the EAC’s executive organ. Its role is to implement the decisions made by the Summit as well as the council. Additionally, it researches on the best methods which can be used in the achievement of the community’s treaty goals, investigates EAC affairs and manages some funds. The East African Court of Justice is also an important institution because it has jurisdiction over cases that involve the application and interpretation of the treaty. It also solves issues/conflicts that may arise when member states consider that a member country of the community has failed to fulfill their obligations under the treaty. Moreover, it plays a role in solving disputes that may arise between the EAC and its employees. The court facilitates regional integration by ensuring that member states can solve their disputes in a formal and amicable manner while maintaining healthy relations.

The Summit is also an important platform in the EAC. It consists of the present Heads of States of the member states. The Summit’s responsibility is to give strategic direction aimed at realizing the objectives as well as goals of the Community. It is convened once a year but can have additional meetings upon request of a member of the Summit. The Summit makes its decisions based on consensus. The Chairperson position rotates among member states and its tenure is one year. The Summit also admits observer and new member states, appoints the judges in the East African Court of Justice. In addition, it assents to bills passed in the EALA. Another important institution is the Council which consists of the ministers responsible for EAC affairs of each member country. Its responsibility is to implement the decisions made by the summit. It can also introduce bills to the assembly and make regulations or recommendations to some organs in the EAC.

Achievements of the EAC

There is absolutely no doubt that the East African Community has been one of the most successful regional organizations in Africa and the Global South in the promotion of regional integration and  economic cooperation as well as development. One of the achievements of the EAC is that it has facilitated the harmonization of fiscal and monetary policies among its member states. This includes the harmonization of banking regulations/rules and ensuring the convertibility of the currencies of the member states. The community also shares information on budgets regularly and reads budget statements on the same day. This simplifies commerce as well as trade in the region and removes unnecessary red tape.

Moreover, the EAC has had tremendous achievements in the transport and communication sector. These include the facilitation of interstate transport via reduced documentation for vehicles and crews at the border crossing. It has also harmonized the the immigration, customs and operation licensing regulations. This has enabled the traders from different member states to trade in a seamless manner. The EAC has also standardized the regulations on road constructions and is in the process of developing infrastructure such as the standard gauge railways, pipelines an and refineries. In addition, the community has succeeded in establishing the One Network Area (ONA) for data as well as calls through the removal of roaming charges throughout the region making it easier for people to communicate and exchange information. Over and above that, the EAC has enabled the improvement of education standards as well as the development of human resources and skilled labour. The community has variety of centers of excellence that provide high quality training and education aimed at providing the skills necessary to run the integrated economies. Additionally, it provides free visas for students from member states to pursue their education in any university in the EAC.The East African Community member states also cooperate in promoting the community as a single tourist destination. The protocols signed aim at ensuring that tourists can tour multiple countries during their trips without having to pay extra costs.

Most importantly, the community has enabled the growth of the economies in the region as traders can sell their goods in all member states. This is particularly important because local markets are not sufficient for people who may wish to expand their businesses and access more customers. The EAC established the Customs Union in 2005 and initiated the new era of the regional integration process. In 2010, the Customs Union Protocol became fully operational. The main aim of the protocol is to liberalize the regional trade in goods based on mutually beneficial trade agreements among member states. It also aimed at promoting the efficiency of production in the region and enhance cross-border, domestic as well as foreign investment in the community.

From July 1 2022, the EAC Common External Tariff (CET) came into effect under four bands of: 35% tariff on imported finished products available regionally, 10% for intermediate goods unavailable in the region, 0% for capital goods and raw materials and 25% for intermediate goods available regionally. The other notable achievements of the Customs Union include the improvement of the business environment in the region as well as the reduction of non-tariff barriers. For instance, the community introduced the Electronic Single Window System (ESWS) which has contributed in the reduction of the time needed to clear goods by a number of days. Moreover, the Single Customs Territory ensured that goods are cleared at their point of first entry in the EAC, the weigh bridges were removed, the custom as well as police checks were reduced, electronic cargo tracking systems were introduced and computerized clearance put in place. As such, the community managed to reduce the transit time from Mombasa to Kigali from 21 to 5 days. Meanwhile, the cost of hiring a truck to transport cargo from Mombasa to Kigali was lowered from $5200 in 2010 to $4200 in 2014.

Challenges Facing the EAC

Budget Deficit

One of the biggest issues facing the EAC is that it is critically underfunded because of persistent defaults by member states. For example as of July 2024, the Democratic Republic of the Congo had not made any contributions to the EAC and currently has a debt of $14.7 million. Similarly, South Sudan owes $8.6 million and Burundi $11.2 million. Kenya is currently one of the two states that does not have a debt to the community as Uganda owes $200,203, Rwanda $920,869 and Tanzania $122,6894. Interestingly, Somalia which is the newest member has contributed $7.8 million meaning that it is more cooperative than the DRC. The arrears/debt amounted to over $35 million in the 2023-2024 fiscal year. There are two reasons for the existence of these arrears. One of these is that member states are required to make equal contributions in spite of their varying GDPs and sizes. The other reason is the failure of member states to enforce contributions through sanctions as outlined in the treaty.

It is noteworthy that the equal-share model was put in place when the EAC consisted of three countries Uganda, Kenya and Tanzania. Member states have stated that this model is not sustainable and an alternative model has been recommended in which 65$ of the budget is payed equally whereas the remaining 35% is contributed to based on the member countries’ GDP in the past 5 years. The EALA has also recommended sanctions for member states which fail to pay. However, these measures have not been adopted meaning that the equal pay model will continue to be used in the 2024/2025 financial year.

Rwanda-DRC Tensions

            The tensions between Rwanda and the DRC are one of the most serious problems facing the EAC. In 1996, Rwanda and Uganda invaded the DRC to overthrow its government, fight militia groups in the country and return the refugees who had been displaced after the 1990-1994 war in Rwanda. Since 1996, Rwanda has not acted as a good faith neighbour to the DRC as it has participated in the arming or rebel groups with the aim of controlling the vast natural resources in eastern DRC. As a result, the eastern part of the DRC has been through continuous cycles of violence and wars as the country seeks to regain control of its sovereign territory from Rwandan-backed militias and proxies. The relations between the two countries are very poor as Rwanda says that the DRC seeks to implement regime change by overthrowing the current Kagame dominated government. On the other hand, the DRC accuses Rwanda of stealing its mineral wealth and selling it to the international markets. This is backed by evidence because for example, Rwanda is one of the largest exporters of coltan even though it does not have coltan mines in its territory.

The Integration of Somalia

One of the most significant achievements of the EAC is its enlargement and acceptance of new member states including the Federal Republic of Somalia. Unfortunately, as of July 2024, Somalia continues to be in an active civil war. The main armed group fighting the government forces in the country is Al Shabaab which is based in Somalia but is infamous for carrying out terrorist attacks in Uganda and Kenya. Since 2007, some EAC member states such as Burundi, Uganda and Kenya have sent troops to Somalia to help fight the insurgents and stabilize the country. Somalia also faces the problem of separatism in Somaliland which considers itself to be an independent country in spite of the strong opposition from Mogadishu. Moreover, the federal government often has conflicts with regional governments such as Puntland which often refuse to accept the authority of the federal/central government. As such, political instability in Somalia will continue to be a major problem facing the East African Community in the foreseeable future. 

Rwanda Burundi Conflict

The other major challenge facing the EAC is the conflict between Rwanda and Burundi. In 2015, Burundi accused Rwanda of planning a coup to overthrow its legitimately elected government. It also accuses Rwanda of providing shelter to those who plotted the coup. Since then, the border between Rwanda and Burundi has been closed meaning that there is virtually no trade between the two countries. It is noteworthy that Burundi has accused Rwanda of arming rebel groups such as the Mai Mai to attack and destabilize it. It is undeniable that Rwanda is a very destabilizing country in the region. Unfortunately, the EAC has not taken any steps to hold Rwanda to account which has allowed it to continue disregarding the sovereignty of the DRC and Burundi. Although some regional countries have tried to mediate the conflict between Burundi and Rwanda, the animosity between the two countries has continued to grow and challenge the purpose of the existence of the EAC.