Implement plans to revamp trade in EAC, say investors

Arusha, Tanzania

The private sector is running out of patience due to delays in implementation of key recommendations meant to revamp business in the region.

Speaking during the annual general meeting of the East African Business Council (EABC), the current chairman, Mr Vimal Shah, urged the East African Community (EAC) secretariat and member states to enforce the recommendations.

“A lot of studies have been done; we know what needs to be done. What is remaining is implementation,” said Mr Shah.

According to the chairman, the services sector is the fastest growing industry in the region and needs to be given a shot in the arm by partner states to accelerate integration.

“But implementation has been stalled by negotiations. Negotiations for how long? If we face challenges, we will face them as a region not individually,” he added.

Mr Shah became the chairman of EABC last year and set his goals. Among them is to advocate for a conducive business environment in the bloc by harmonising domestic taxes, realise implementation of the EAC agreement on avoidance of double taxation by all partner states as well as elimination of non-tarrif barriers.

“Others include introduction of an EAC single tourist visa, the harmonisation of work permit and domestication of the EAC air space,” said Mr Shah.

However, not all the objectives have been realised. Recently it urged Kenya to eliminate the railway development levy imposed on imports. The charge was eventually lifted for EAC member states.

According to Mr Shah, opening up of the borders will allow free movement of goods and services. He also noted that agribusiness has a big potential of creating jobs as well as boosting of the economy.

As a bloc, Mr Shah noted, EAC has now become an attractive destination for foreign investors.

“Our GDP is about Sh7.6 trillion ($90 billion), but we need to go beyond the $100 billion mark to ensure sustainable growth compared to other regional blocs,” he noted adding that there is need to market EAC as one investment destination. Currently, countries are marketing themselves individually.

Speaking at the same forum, the deputy secretary-general in charge of political federation in the EAC, Mr Charles Njoroge, said that implementation of the single customs territory will enable free movement of goods.

“As we start the implementation of the monetary union which has a 10-year road map, we still encourage EAC member states to fast track the implementation of both customs union and common union,” said Mr Njoroge.

According to him, it will become very difficult to attain a functional monetary union unless the bloc fully implements customs union and common market commitments.