Paul Kagame Photo courtesy

Since Kigali, intensified efforts have been made to address these issues and significant progress has been made. Rwanda and Burundi acceded to the Customs Union early this month. With this development, the EAC Customs Union, now in its fifth year of operation, has reached its threshold.  The stage  is set  for a  full fledged Customs Union  by January 2010 when  the phase  down  to zero tariff  for all goods traded  in the region will be achieved.

 

The success of the Customs Union has had a knock on effect as manifested by the strong commitment of the Partner States to the integration process towards the establishment of the Common Market, now a virtual certainty by January 2010.

 

The final stage attained in negotiating an EAC Common Market Protocol will allow free movement of capital, labour and people. The Protocol shall provide more guarantees to cross-border investment among the Partner States. This is a big boost to the private sector endeavour. Already we note that the inflow of foreign direct investment continues to increase across the five Partner States.

 

Efficient, reliable infrastructure

 

The second issue that comes out of Kigali is the regional infrastructure problem.  Since Kigali, EAC has placed emphasis on the development of infrastructure.

 

Our commitment during the past year was on transitioning from baseline studies to the implementation on the ground of improved infrastructure that would play a strategic role in enhancing our united goals.

 

In this regard,  I am pleased  to mention specifically  the ongoing  construction  works  on the upgrading  of the  Arusha-Namanga-Athi River road  and the rolling out  of the power inter-connection  between  Kenya and Tanzania.

 

Similarly, works have  proceeded on revamping  the operations  of   East Africa’s  major  ports  of  Mombasa  and Dar es Salaam as well as easing and  streamlining road transit procedures  across the region. These works are proceeding along with other launching of infrastructure improvement projects in the various sub-sectors of railways, communications, ICT development and civil aviation.

 

Private-public sector participation framework is on course with encouragement of private sector investment particularly in infrastructure development.  Of most recent and significant achievement is the East African Marine Systems (TEAMS) and the East African Marine Cable System (EASSY), both projects being private sector led that are now at the stage of launching into commercial service by the end of this year.

 

Eliminating barriers to trade/reducing costs of doing business

 

The third issue relates to the high cost of doing business in the region.  Again, since Kigali, the EAC has engaged robust activity in addressing regulatory and broad governance issues.  These are aimed at ensuring a stable and peaceful environment for the free movement, interaction and transaction of business within the region.

 

Coupled with this is addressing the Non Tariff Barriers (NTBs), specifically, NTBs that relate to facilitating rather than hindering the integration activities. The interventions in addressing NTBs involve the important issue of developing a policy and law on counterfeit and anti-piracy. I am pleased to note that this conference will devote ample attention to these matters.

 

Unfavourable terms of trade

 

Within the competitive global economy, EAC has adopted a two-pronged approach to addressing this problem.  We are doing this through strengthening negotiating capacity in international trade; and leveraging joint promotion of investments in the region.

 

Apart from putting in place an export promotion strategy and operationalizing the EAC Competition Act, the EAC has enacted the EAC Trade Negotiations Act. This is a major breakthrough in the regional body’s long search for agreement to negotiate as a bloc in the multilateral fora.

 

The East African private sector, led by the East African Business Council and our regional investments promotion agencies (IPAs), has stepped up co-operation programmes.  The big picture currently being pursued is branding the EAC market as a viable and competitive single market and investment area.  With regard to promotion of tourism in the region, the process is engaged towards introduction of a single tourist visa for East Africa by the end of this year.

 

These activities are being reinforced by the institutionalization of EAC investment promotion.  The private sector is increasingly engaged in the decision making process. The recent establishment of the Sectoral Committee on Trade and Investment within the EAC framework that puts together the region’s Investment Promotion Agencies (IPAs) is a case in point.

 

Major investments promotion activities by our trade and investments promotion actors have involved energy, tourism and other sectors promotion to Europe, Canada and India.  Negotiation of trade and investment agreements with strategic markets has been pursued, including the Trade and Investment Framework Agreement (TIFA) that EAC signed with USA in August last year. 

 

Way forward

 

On the whole, a veritable pubic-private sector participation (PPP) is emerging. There is a clear focus of our purpose and mission. Good follow-up has been made to the recommendations of the inaugural Investment Conference in Kigali. EAC has risen to the occasion with a collective resolve to deepen integration as a strategic catalyst to shore up its economies against global challenges that impinge on regional development. 

 

There is realization that, in the current global economic meltdown, the EAC should take the lead in providing permanent and viable solutions on real time basis. Let me, in this regard, appeal to the investor community to take more interest in our continued effort to revolutionize the agrarian sector. We should do more investment in the use of technology to add value to our products and services.

 

We need highly skilled regional manpower. Our people are our number one resource. Let us invest in education for mutual benefits. It is with such a commitment that we would be able to propel our region on a rapid path of growth and development through trade and investments.

 

H.E. Paul Kagame

President of the Republic of Rwanda

Chairperson of the Summit of the East African Community