Political stability key to EAC free market

In a month’s time, the much anticipated East African Community Common Market Protocol comes into effect and with it amalgamation of the five-member states’ markets into one for mutual economic benefit.

This will be an exciting but critical phase of the growth of the revived East African Community because it allows the free movement of people, goods and services and capital in a market of 127 million inhabitants and a GDP of close to Sh6 trillion.

When the then presidents Daniel Moi (Kenya) and Benjamin Mkapa (Tanzania) and President Yoweri Museveni of Uganda revived the EAC, it was envisioned that the community would develop to the point where the three countries would not only achieve economic but also political integration. It has been a long journey since then and great strides have been made. The admission of Rwanda and Burundi into the community enlarged the East African market and took yet another step in the breaking down of the colonial boundaries that were drawn by European imperialists during the scramble for Africa.

The benefits of EAC common market protocol that comes into effect on July 1 cannot be gainsaid. It will open a whole world of opportunity for the citizens of the five member countries — Kenya, Uganda, Tanzania, Rwanda and Burundi. The members states would do well to utilise the remaining one month to do the ground work that will ensure the smooth transition into the new economic regime.

First and foremost, citizens of the five countries need to be sensitised on the benefits of the common market. This is critical because the opening up of the borders to the free movement of people, goods and services is meant to benefit the people and improve their livelihoods. They would, however, only reap the benefits if they are aware of its benefits and how they can exploit this new opportunity afforded them.

In sensitising their people, every country would also be reducing the risk of xenophobia to avoid situations where businesspeople from other member states are viewed by local people as intruders.

Member states must also ensure civil servants understand and embrace the spirit of the community to avoid unnecessary hiccups. Special attention should be given to customs officials and police officers so that they may play the role of enabler rather than become a stumbling block.

Secondly, all the member states must fast track the amendment of the relevant laws and statutes to accommodate the new economic regime. Although most countries are at an advanced stage of passing new laws for the enactment of the protocol, there is a lot to be done to take care of other laws touching on customs and taxation.

Thirdly, and probably most importantly, for the protocol to work well and for a long time to come, it is paramount that member states nurture good governance and political stability.

The new economic regime will inevitably intertwine the five economies and any instability in any of the states would have a ripple effect on other just like the recent financial woes in Greece were felt across the European Union.

While addressing the third session of the East African Legislative Assembly members in Nairobi this week, Tanzania’s President Jakaya Kikwete called on the member states to embrace free and fair elections to ensure smooth integration. The call couldn’t have been more timely because whereas Kenya faces a referendum in August, Burundi, Rwanda, Uganda and Tanzania are about to hold their general elections.

It is paramount that these electoral processes be conducted in a free and fair manner that not only satisfies international standards but also meets the expectations of the people. This calls for the strengthening of institutions of democracy.

Lastly, member states must ensure transparency in their resource systems. They should also use their fiscal and social policy instruments to promote equitable distribution of wealth aimed at bridging the gap between the rich and the poor. If they don’t, the resultant economic growth will be unevenly distributed, leaving out the majority poor.