Blocked borders, failed treaties define East Africa regional integration in 2018

President Uhuru Kenyatta and the regional heads of States, Rwanda President Paul Kagame, South Sudan President Silva Kirr and Uganda President Yoweri Musaveni in Kigali, Rwanda. File
President Uhuru Kenyatta and the regional heads of States, Rwanda President Paul Kagame, South Sudan President Silva Kirr and Uganda President Yoweri Musaveni in Kigali, Rwanda. File

Eighteen years after agreeing to seamlessly trade and allow free movement of people in its borders, EAC partner states still remain poor in implementing its own deals.

The states include Tanzania, Uganda, Kenya, Burundi, Rwanda and South Sudan.

Within the last 12 months, lack of commitment on the part of some of the six states has seen intra-regional regional trade decline significantly , raising questions about the integration agenda.

According to a report released last month by the United Nations Economic Commission for Africa, the trade disputes have seen the bloc trading at just half of its potential.

Latest trading balance data from Central Bank of Kenya shows that Kenyas export to Uganda dropped by Sh1.11 billion to Sh35.55 billion in the period ending July 2018.

This is more than half the value of imports to Kampala which stood at Sh18.22 billion down from Sh34.06 billion in 2017.

BORDER THREATS

Early this year, the trade disputes saw Tanzania and Uganda refuse to allow Kenyan confectioneries from accessing its markets over sourcing of industrial sugar by Kenyan factories.

This led to Tanzania imposing a 25 per cent import duty levy on the products.

The move saw Kenya threaten to block Tanzania goods even as Tanzanian authorities visited Kenya for the first time in June to verify the source of the Sugar.

However, five months later, Tanzania is proposing the matter be taken back for fresh consideration to Tanzania and Kenya revenue authorities as they seek permission to carry out a second verification mission.

This is despite confirming in June that Kenya confectionery producing firms did not benefit from sugar imported under zero duty. Findings of the first verification exercise confirmed the same.

Kenya has since rejected the request through the EAC Sectoral Council on Trade, Industry, Finance and Investment.

Trade balance data between Tanzania and Kenya for the period ending July 2018 shows that Arusha made exports valued at Sh17.25 billion to Kenya while only imported goods valued at Sh10.224 billion.

Its import value from Kenya between July 2017 and July 2018 dropped by Sh989 million.

Also headlining the year, is an announcement by Kenya to charging a business visa fee of Sh25,000 for Tanzanian nationals coming to Kenya for business purposes.

The fee, currently imposed by Tanzania to all East Africa Community partner states residents, is meant for the issuance of a certificate of temporary assignment.

The move, viewed by the six EAC partner states as a non-tariff barrier is a hit back on Tanzania for consistently imposing the fee to other EAC residents.

More to this, South Sudan citizens are also asked to pay Sh 5000 for an entry VISA to Kenya and Uganda two years after joining the EAC. Ironically, they are not asked to pay the same at the point of entry in Tanzania ,Burundi and Rwanda.

BILATERAL TALKS

In efforts to boost integration, bilateral talks between Tanzania and Uganda have severally hit the wall after Tanzania failed to respond to the requests by Uganda for a meeting.

Among the issues affecting the two countries include the levy on road user fees, which require Ugandan exporters to pay for using Tanzania roads.

Others are retesting products that have already been certified by Uganda National Bureau of Standards, and interfering with the free movement of Uganda people.

During the joint permanent Commission meeting held in Kampala in August, Uganda and Tanzania signed an agreement to allow Kampala export Sugar to Tanzania. However, the treaty is yet to be implemented.

Burundi and Rwanda have also formed part of the Non-tarrif barrier spat after Burundi blocked the movement of Rwanda goods and passengers vehicles across the border.

Speaking to the press in August this year, Rwanda State Minister for Foreign Affairs, Olivier Nduhungirehe said his country will not engage in a tussle with Burundi but its prepared to defend its territory and people.

Burundi has also filed multiple reports to the EAC, the United Nations and the African Union, accusing Rwanda of supporting rebels opposed to President Pierre Nkurunziza’s government.

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