Benjamin Franklin once put it ‘no nation was ever ruined by trade.’ Economic history at that moment proved him right.

I am introducing  the beginning of a series of forums around the regions capitals between me and CEOs of regional businesses which I am sure will leverage our engagement to the next level by discussing key challenges faced by businessmen in the region and suggest recommendations that the EAC under my leadership will give priority as we implements the 4th Development strategy.

The 4th and current Development Strategy for the East Africa Community postulates among its priority areas, to include improving regional/global competitiveness for faster and sustainable economic growth and move closer to the status of the newly industrialized region while establishing a robust legal and administrative framework that facilitates regional economy to generate income and wealth.

I am glad that the EAC Council of Ministers has already considered a framework for structured dialogue between the EAC, Private Sector Organizations, Civil Society and other interest groups within the requirements of the Treaty. This Framework will be dynamic and capable of adapting to key principles forming the Charter of Good Practice for Public- Private dialogue. We are also about to conclude a Public-Private Partnership Framework for the EAC, which will also go a long way in enhancing private sector participation in public enterprises.

Our countries have many business skills and competencies that complement each other very well, the backbone of our success in doing businesses to East Africa is clearly highlighted in the “Doing Business 2012” report that I recently launched in Bujumbura Burundi, in concert with the World Bank that authored the publication. One of the key findings of the Report is that the EAC is one of the fastest reforming regions in the world posting Rwanda, Kenya, Uganda, Tanzania, and Burundi respectively as key reformers in the Community.
The report is very positive on the progress made by the EAC Partner States in making the business environment better over the past 5 years. Rwanda improved its business regulatory environment the most in the 5 years, followed by Uganda, Tanzania, Burundi and Kenya.

Most business regulatory reforms in East Africa over the 5 years focused on simplifying procedures for starting businesses, registering property and dealing with customs. Reforms in business registration especially, reduced the average time required to start a business in East Africa from 37 days in 2005 to 24 days in 2010.

However, this same pace of reforms shows some signs of slackening. We as a Community count on you to address any challenges together and exchange the best practices at the regional level that will improve the scenario leading to a better rating for the years to come and boosting confidence of interested investors in the spirit of the Common Market and the One Investment. One Destination principle. 

The success of these efforts can be seen through the performance of EAC trade and investments which registered average annual growth rates of 20-30% for all the EAC Partner States.

EAC international trade and foreign direct investments continued to grow accumulating to over 60% for the years 2008-2011. EAC intra-region trade also rose to 23% of total value of exports, the highest of all the African regional economic communities.

The benefits of regional integration were cemented, as the EAC economies were able to overcome the shocks of the global economy and held their position among the fastest growing regions of the world.
In 2011, EAC countries sustained on average 5% GDP growth against the world average of 3%. All performance indicators depicted significant growth trends, including Foreign Direct Investment inflows, which increased from USD 683 million in 2005 to USD 1.7 billion in 2011.

The ratification, launch and implementation of the Common Market Protocol in 2010 triggered a new momentum in the process towards the establishment of the East African Monetary Union and the Political Federation of the East African States.

The attainment of Monetary Union and Single Currency, on the basis of transparency, equitable development, fiscal discipline and prudent management of macroeconomic factors; and taking advantage of the economies of scale, would further strengthen the operations of the EAC Common Market.

Equally strategic was EAC’s participation at the forefront of the bold initiative under the EAC-COMESA-SADC Tripartite arrangement towards establishing a Grand Free Trade Area (GFTA) of the three major African RECs.

The realization of the GFTA, comprising 28 African countries, with a combined population of 527 million, GDP of USD 624 billion would further boost EAC’s market advantage and strength.

I know the above achievements will make each of us proud but I must admit that, lot of challenges still do exist and quite some work needs to be done. Mitigating existing challenges will requires some individual effort by each of us present here today.

The EAC region is endowed with vast and varied resources including minerals, forestry, wildlife and other resources offering great scope for agriculture, industrial and tourism development and expansion through regional cooperation. The region’s most important resource however remains its people.

While this potential is recognized, there is still need to take decisive action to turn this potential into gains through rigorous implementation of the agreed regional projects, programmes and mechanisms.

Unfortunately, there still exists a gap between the promise and the performance.  Factors such as the prevalence of NTBs due to Corruption, despite the establishment of a Customs Union since 2005, have slowed the progress. The best means to counter this natural tendency –apart from formation of conscience and exercise of virtue - are accountability and transparency.

Political cooperation with the objective of improved and harmonized good governance structures, including the rule of law, human rights, anti-corruption, transparency and accountability is ongoing. There is a need for more political and corporate transparency, as well as a need to deal with corruption, which is a major concern. I am sure we are all definitely aware of the definite link between corruption and poverty. 

The ancient Romans understood this. The question “quis custodiet ipsos custodes?” – “who guards the guards themselves?” – sums up the issue.

Whether we discuss trade, economic cooperation or financial markets, development policy, climate change or security issues: none of these areas are of a sole national or bilateral nature - all of them have to be tackled at a regional level. There is no substitute. The world is our destiny. "We are part of it."

By Amb. Dr. Richard Sezibera,

EAC Secretary General, at the Regional Private Sector CEO Breakfast Forum.