The East African

Community
.
East African Community (EAC)
First initiated as a post independence organization
between the 3 East African Countries of; Uganda,
Kenya and Tanzania (1967)
Had grown to the level of the Economic Community
with a single currency the East African shilling when it
was disbanded in 1977
Revived in the late 1990s, the EAC Treaty was signed in
November 1999
Came into force in July 2000 (3) and then (2) in 2007 :
Rwanda and Burundi, (1) in 2016 and (1) in 2022
 The EAC
In 2005, the Customs Union became effective and the
process was creating it was completed in January 2010

In November 2009, Protocol on the Establishment of

the East African Community Common Market, took
effect in July, 2010
The Secretariat is an executive organ of the
community headed by the Secretary General
Headquarters are in Arusha, Tanzania
 The EAC Economic Indicators
 EAC estimated population of 283 million people, GDP US$ 305.3 billion,2021

 In the year 2021,

 Kenya had GDP per capita of US$ 2081,
 The United Republic of Tanzania US$ 1,099
 Rwanda US$ 822
 Uganda US$ 883
 Burundi US$ 221.
 DRC US$ 577
 South Sudan UD$ 418
 EAC is considered the most successful regional grouping within the Africa
Continent
 Agriculture contributes 25% -40% of the EAC Partner States’ GDP and employees
over 80% of the population in the region.
The EAC Economic Indicators
Burundi is poorest economy in the region. Has been
characterized by civil war. 400,000 of its citizens are
registered as refugees outside Burundi

Rwanda steadily recovered from the genocide of 1994.

Has the best institutional capacity in the EAC, second
in Africa after Mauritius
Tanzania is politically stable for a long period. Relies
heavily on minerals that are affected by fluctuations in
world prices
EAC Economic Indicators…
Uganda has been growing faster than many in the
region
A fastest growing population
 What are the Trade Barriers in the East
Africa Community?
Customs Procedures
Customs Documentation
Un-harmonized standards
Police Road Blocks
Lack of Citizenship Identification
Unclear Rules of Origin
Informal Cross-border Trade (ICBT) due to porous
borders
EAC: What has been Achieved?
Territorial Enlargement, from 3 to 6 and now 7.
Signs of potential enlargements: talks about Somalia
joining the EAC
Creation of the East Africa Legislative Assembly
(EALA)
Creation of the East African Court of Justice
Harmonized system, E.g, Education student pass fees
Removal of work permit fees
Improved Citizenship Identification with many
countries adopting National IDs
Customs union
Major milestone and critical foundation of EAC and
has been in force since 2005.
It means that EAC partner states have agreed to
establish free trade (Zero duty imposed) on goods and
services amongst themselves and agreed on common
external tariff structure.
Goods moving freely within the EAC must comply
with the rules of origin and with certain provisions of
the protocol for the establishment of the EAC customs
union
Common market
This is the second Regional Integration milestone of
the East African Community which has been in force
since 2010
It means that the EAC partner states maintain a liberal
stance towards the four freedoms movement for all the
factors of production include, free movement of
goods, persons, services and capital. Sectors covered
include
culture, customs, energy, education and
immigration and labor.
What has been Achieved?
Initiation of joint projects; the SGR, the Oil Pipeline
The Adoption of East African Monetary Union
(EAMU) Protocol
The Adoption of the Political Confederation on
20th May, 2017 as a transitional model of the East
African Political Federation.
 There are early plans for the creation of the East
African Defense Forces
Implementation of the Single Customs Territory (SCT)
Elimination of Up to 41 Non-Tariff Barriers
contn
 Removal of NTBs,
such NTBs manifest themselves in-form of prolonged clearance
procedures, delays at port of entry/exit, numerous roadblocks,
delays in ferrying cargo by transit vehicles, testing products among
others.
 One stop border posts (OSBPS)
Before its introduction, the cross border movement was
characterized by lengthy clearance transactions, duplication of
entry and exit procedures and in the long run increasing the cost of
doing business
The OSBPs have made it possible for cargo, vehicles and passengers
to stop once to process crossing formalities to exit and enter
partner states borders.
Challenges of EAC
Overlapping membership
Members of EAC are involved in other regional
economic organizations such as COMESA, SADC,
IGAD, These overlapping memberships have created
situations of shallow memberships in the continent,
failure by member countries to honor their
commitments and has resulted into competition.
Slow implementation of CET
Challenges-contn
Poor infrastructure
Production of similar products
Conflicts between member states
External influence, FTA between USA and Kenya
Limited involvement of the private sector
Fear to lose tariff revenue
Political instabilities in the region
Slow implementation of Common Market