Exciting times unfolding for East African Community

By Phyllis Kandie

A milestone in the integration process of the East African Community (EAC) was achieved recently when regional heads of state appended their signatures to the single monetary union protocol.

This means our economies are getting even more connected and we are on the path to a single currency within the next 10  years. It means we can do business with each other a lot more easily and borders are becoming less relevant. It is a pointer that prosperity will flow a lot quicker from one corner of the region to another, so too will products, services and talent.

These are exciting times. The monetary union is a commitment with heady consequences. It is also culmination of years of hard work, commitment and engagement. This moment has been preceded by meticulous planning and development of institutions and protocols. It will need to be succeeded by more of the same but at this point we can pause and reflect on how far we have come.

A national currency and management of the economy, including strategies for growth, are an integral part of a nation’s sovereignty. This is why people elect governments and why leadership is not an easy proposition. People expect governments to expand opportunities and steer a course of prosperity.

This is part of meeting the task for the EAC member states. In our world, nations trade with others and bigger nations have a bigger reach than smaller ones. Because EAC member states have signaled their intention to integrate their economies, the world must stand up and take notice.

The EAC countries have economies with huge potential, which have been growing steadily over the years. This is a new dynamic that directly affects how the world trades with us and, more importantly, how we create opportunities and economic progress. It’s the equivalent of an automatic reset in the region’s economic relationships with the world.

 When the same community of nations backs this economic bond with strong ties in political, cultural, social, commercial and academic facets then something grand is in the offing.

The monetary union will lower the cost of transacting business across the region and will impact numerous businesses and institutions that are represented across the region. Businesses will also be better protected from foreign exchange distortion by a theoretically more stable currency.

Having a monetary union would also enhance free movement of goods and people as well as increase the investment opportunities in the region.

The idea underpinning the East African integration process remains sound, which is why over a decade later is yet to attract any meaningful opposition.

The idea that we are better and stronger together than as individual countries and that we have a better chance in the world market as a community resonates across the region and has found favour in the citizens of EAC member states and beyond. It explains why more countries want to join the regional grouping.

We have previously signed protocols on a common market and customs union and are already implementing them. The monetary union augments the impact of these protocols and solidifies the economic coming together across all countries.

The institutions of EAC have been invaluable to this achievement. The East African Legislative Assembly has grown into a key shepherd of this progress.

The East African Community Secretariat has been central to every protocol, every meeting and every development. The success so far achieved has largely been built on the efforts and dedication of the staff of the secretariat.

Even we as we celebrate the single monetary union we know it’s time to start bringing people on board the community in a massive way. The people need to feel they own the process and to be part of the achievements so far attained. East Africans need to realise what EAC is doing all about them and for them

This makes sensitisation for total acceptance the next challenge. We need people across all states to internalise the regional dimension regardless of who they are or where they are from.

We need students, traders, entertainers and artists to incorporate regional themes and tilts in processing everything they do. Economic integration will aid in the development of this consciousness.

Partner states in the East African Community have also set next month as the deadline for the adoption of a single customs system in a bid to increase efficiency in trade logistics within the bloc.

The Presidents from the member nations directed that the Single Customs Territory be adopted in January 2014. Under the single customs regime, revenue authorities would co-ordinate business at points of entry into the region.

When the heads of state of the EAC put pen to paper and appended their signatures to the East African Common Monetary Union Protocol we made a big stride in regional integration. We sent out a powerful message: We truly aspire to be one people with a single destiny. 

The writer is Cabinet Secretary for East African Affairs, Commerce and Tourism.