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Strategic Plan for the East African Business Council (EABC)
2006-2010

SPEECH BY HON. S. AMOS WAKO, S.C., M. P, CHAIRMAN, EAC COMMITTEE ON FAST TRACKING THE EAST AFRICAN FEDERATION ON THE OCCASION OF HANDING OVER OF THE COMMITTEE'S REPORT TO THE HEADS OF STATE AND GOVERNMENT OF THE PARTNER STATES OF EAST AFRICA AT THEIR 6 TH SUMMIT ON FRIDAY 26 TH NOVEMBER 2004 AT THE ARUSHA INTERNATIONAL CONFERENCE CENTRE

H.E. YOWERI KAGUTA MUSEVENI
PRESIDENT OF THE REPUBLIC OF UGANDA
 

H.E. EMILIO MWAI KIBAKI
PRESIDENT OF THE REPUBLIC OF KENYA
 

H.E. BENKAMIN WILLIAM MKAPA
PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA
 

H.E. PAUL KAGAME
PRESIDENT OF RWANDA
 

H.E. DOMITIEN NDAYIZEYE
PRESIDENT OF THE REPUBLIC OF BURUNDI

On behalf of each Member and Associate Member of the EAC Committee on fast Tracing the East African Federation, and on my own behalf, let me express our outmost appreciation for the confidence, you, the Heads of State and Government of the Partner States of the East African Community, expressed in us by appointing to this important Committee mandated to make recommendations on the matter which is in the minds and hearts of the people of East Africa – the East African Federation.

When we were appointed we were all of one purpose - to ensure that we discharged our mandate objectively, professionally and expeditiously within the limited time that was availed to us. I am pleased to report that although we were of different nationalities, background and temperament, and although, at the beginning our views were not the same, in the course of our working together, we became of one mind. The recommendations contained in this Report were arrived at unanimously.

Our programme of work included visits to all the 3 Partner States from 21 st October to 9 th November 2004. The visits included capital cities and other areas to inter-act with Ministers and Senior Officials in Government, Members of Parliament, Civic Leaders, representatives of the Business Community, professional bodies and Civil Society etc. In all these meetings, we sought views on the key issues related to our mandate which we had identified. The Committee also established a website which constantly updated the public on the activities of the Committee and invited the public to contribute their views.

After the visits the Committee had extremely useful brainstorming sessions on critical issues related to our mandate with senior officials who dealt with these matters in their countries and selected experts. The representation of those who participated in the sessions was balanced between the three Partner States. In all we had eight brainstorming sessions on the identified key issues – approximately a day per issue. The Committee was pleasantly surprised at the broad unanimity on what should be done between the senior Officials and the experts on all the issues. The broad agreement on the views received, the unanimity at these brainstorming sessions and in the discussions within the Committee which led to these recommendations make the Committee conclude:

First, that the recommendations contained in this Report, although ambitious, are realistic and implementable, and can if accepted and implemented, will achieve the objective of having the East African Federation within the time frame stipulated in this Report.

Secondly if we all, particularly the political class and the bureaucrats, focus on the vision of realizing the Eat African Federation in the near future, there will be less of the conflicts, the contradictions and the wrangling that inevitably arise, as they have done in the past, when we are discussing issues from the standpoint of narrow national interests.

The Report is composed of Seven (7) Chapters and each Chapter constitutes a building block to the next one. Chapter I gives the history of regional integration in East Africa, Chapter II portrays the current Integration efforts in a historical context, showing the ever-increasing need for economic and Political Federation; Chapter III contains our assessment of the Status of Implementation of the EAC decision and Treaty; Chapter IV, presents critical findings from consultations with stakeholders including perceived of real fears and concerns that should be explained or addressed and issues that are crucial in identifying the best option for expediting the process towards Political Federation; Chapter V describes and assesses possible options for fast tracking Political Federation and what the Committee considers to be the best option to achieve that objective; in Chapter VI we recommend some Key Strategic interventions needed to operationalize the proposed option while Chapter VII presents concluding remarks along with a Road Map to guide implementation of various recommendations.

Our mandate was to examine ways and means of expediting, accelerating and compressing the process of integration of the East African Community with the aim of achieving a Political federation in the shortest possible time. We therefore had to consider how the various stages of economic integration contained in the EAC Treaty – the Customs Union, the Common Market, the Monetary Union can be attained quickly (compressed) or whether the stages run simultaneously or parallel or be dovetailed.

A detailed analysis of the various options is contained in Chapter 5 of the Report. Out of these various options, our recommended option is one which:

•  Leaves the time frame for the Customs Union intact (i.e. 5 years from 1 st January 2005)

•  Ensures that the basic minimum requirements of for the common Market and the Monetary Union necessary for the Federation are compressed and run parallel within the 5 years period from 1 st January 2005.

To this end, it is recommended that the discussions on:

•  The Protocol on Free Movement of Person, Labour, Services and Right of Establishment and Residence start in January 2005 with a view of concluding the Protocol by June 2006.

•  The Protocol on the Common Market in January 2005 with a view of concluding the Protocol by December 2007

•  The Monetary policy co-ordinating Committee of the Central Bank of the Partner States start immediately working on a detailed strategic plan and Road Map to ensure one currency for East Africa by December 2009. The plan should be approved by the Heads of State at their Summit meeting in November/December 2005.

The visionary purpose for the establishment of the East African Federation is the accelerated economic development for all to enable the East African to move away from the Least Developed Region to a Developed Region in the shortest possible time. It is therefore recommended that a Task Force on the East African Development strategy be appointed.

No country has ever developed without focusing centrally on Education Science and Technology. The Asian Tigers have demonstrated that this is the way forward for countries such ours. It is therefore recommended that a Task Force on Education Science and Technology be set up to recommend the necessary policies in this regard.

The Federation of East Africa must have a Constitution. It is being recommended that a Constitutional Commission be appointed by July 2005 to draft a preliminary Draft Constitution for the Federation by December 2007. During 2008, a Constitutional Forum consisting of the representatives of the National Assemblies of Partner States and Members of the East African Legislative Assembly to debate and approve the Preliminary Draft with or without amendments. Arising out of the Constitutional Forum, the Draft Constitution be finalized.

In the first half of 2009 the Constitutional should be approved by the National Assemblies of the Partner States followed by a Referendum in September 2009.

A Referendum is being recommended because in the course of our work as a Committee we found that the people whilst highly appreciating the decision of the Heads of State to fast Track the East African Federation, nevertheless want to be at the centre of the process establishing the Federation. For them to play this role, they need to know more about the Federation. We have therefore recommended a strong Communication and Marketing Strategy so that the activities of the East African Community, the process of fast tracking to the East African Federation and issues related to the Federation itself are known, understood, accepted and embraced by the people of East Africa.

Even with the political will in place, the suggested programme will not be implemented diligently and timeously if the Secretariat is constrained in terms of human and financial resources. The staffs are already overstretched and the Secretariat is characterized by one person Department. Already the Projects and many of the decisions of the organs of the East African Community remain unimplemented. With added responsibilities because of the fast tracking of the Federation, the programme could be implemented at a snails pace and therefore defeat the very purpose of fast tracking for Federation. There is therefore urgent need for the Secretariat to be restructured and strengthened both quantitatively and qualitatively during the preparatory phase for the Transition Period to Federation. There is a Report of the Structural Review of the East African Community by Eminent persons. It is therefore possible for the Secretariat to have been strengthened and restructured by the beginning of July 2005.

It is further recommended that the Partner States appoint Ministers responsible only for East African Affairs. The Ministers should take residence in Arusha by June 2005 and be assigned specific portfolios. The suggested Portfolios are: Financed, Administration, Common Market, Planning and Development.

If this report is accepted, there will be a beehive of activities from now on until the time the East African Federation is launched. The period between December 2004 to December 2005 is in essence the Preparatory Phase for the Transition Period to Federation. It is suggested that a Committee be appointed to work with the Secretariat, the Council and the Summit during the Preliminary Phase for the Transition Period.

When the Preparatory Phase is over in December 2005, the Transition Programme would be ready to proceed full steam to the Federation. It is recommended that a high level East African Federation Advisory Council, chaired by a very senior and prominent East African Statesman should be appointed to advice the Summit from time to time on issues related to the implementation for the process leading to East African Federation so that the Programme is kept on course.

Financial constraints have been a major cause of delayed implementation. The financial constraints are caused mainly by the late payment of the Annual Subscriptions by Partner States. There is therefore merit in changing the system of remitting the subscriptions. It is recommended that in the transitional Phase, each Partner States should contribute either 1% of her Customs Revenue of 0.0025 (one quarter of 1%) of her External Imports to the East African Community. This should generate adequate funds to cover all the current expenses of the EAC Secretariat and the additional expenses occasioned by implementing the fast tracking mechanism. It is further recommended that the Revenue Authorities of the Partner States should remit directly the said amount to the EAC Bank Account as they collected the said revenue on a weekly or monthly basis.

In our visits, the people wanted the movement of the people of East Africa within East Africa to be eased if not made free. This to them will be an indicator or the litmus test to show that we are now serious in moving towards the Federation. The Committee is of opinion that it is within the administrative capacities of the Partner States to immediately effect the following in January 2005.

  • The holders of East African Passports should be exempted from immigration requirements when traveling within East Africa.

  • The Partner States should publish their identification documents acceptable to them, which will be recognized at common borders to allow or facilitate free movement of the citizens of the Partner States.

  • The administrative structures to be in place to enable the citizens living along the common borders of the three Members States of EAC to move freely across the common borders.

  • Establish clearing channels at entry points for citizens of the Member States of the EAC.

  • The fishing in Lake Victoria should take place without undue restriction to national boundaries but should take into account the environment and sustainability of the Lake and its Eco-system.

  • By July 2005, harmonized procedures on the issuance of Entry/Work Permits to citizens of the Partner States should be in place.

  • By August 2005, East Africa should be a single air space. This should result in reduction of air fares and travel time within East Africa.

The major obstacle to free movement of East Africans in East Africa is lack of Identity Cards. To fundamentally ease the travel of the people of East Africa within East Africa, it is strongly recommended, that on a priority basis, the Partner States should take steps to ensure that East African Identity Cards identifying the citizen of the Partner States should be issued by December 2006.

From what I have stated it will be manifest to a discerning listener that the Committee recommends January 2010 as the time when Federation of East Africa will be launched and the Federal President and his/her Cabinet, Members of the Federal Parliament and the Chief Justice and Judges of the Federal Supreme Court sworn into office.

It is suggested that the period between 2010-2012 be considered as the Consolidation Phase of the Federation of East Africa. During this period it is recommended that the Presidency rotates between the sitting Presidents of the Partner States. It is further suggested that an enlarged Federal Parliament be elected along the lines of the method used in electing the current East African Legislative Assembly or as may be recommended by the Constitutional Commission.

From 2010-2012 the Electrical Commission and other institutions provided for under the Federal Constitution should be put in place. Federal Constituencies should also be delineated.

Between January to March 2013, elections for the President and the Federal Parliament should be held.

This Road Map is indicative. It should be emphasized that with political will and resources the time frame provided for in this Road Map can be compressed to enable East African Federation to be realized much earlier.

In conclusion, let me quote what Brutus, a character in the Shakespearian Play “Julius Cesar” said:

“There is a tide in the affairs of men

Which, taken at the flood, leads on to fortune

Omitted, all the voyage of their life

Is bound in shallows and in miseries

On such a full sea are we now afloat,

And we must take the current when it serves

Or lose our ventures”

East Africa is now afloat at sea and the tide is for the political and economic unity for East Africa. The time is now for various seasons amongst which are:

•  The people of East Africa have been yearning for the Federation for a long time. They know that under it the chances of successfully fighting poverty are higher and they are likely to live better and fuller lives.

•  The challenge posed by Globalization which can be more successfully met under the Federation otherwise we shall forever be balkanized and marginalized politically, economically and socially.

•  We have in the current Presidents of East Africa; persons who became committed East Africans during their formative period. They were growing up when East Africa was like one country. They received their university education was away from their home country but within East Africa. They have a track record of their commitment to political and economical integration of East Africa. One can reasonably infer that as the generation which grew up at the time East Africa was like one country disappears the vision for East Africa may, as one East African Statesman has said, “…wane progressively unless we seize the hour”.

By appointing this Committee and giving the Committee audience at which they explained at length their views and commitment to the Political Federation, the three Presidents have raised the hopes of the people of East Africa, that at long last their dream of the Federation of East Africa will be realized within their life time.

He challenge now, is to the 3 Presidents of Partner States who constitute the Summit to provide the necessary enlightened, visionary and innovative leadership so that East African successfully match towards the destination which is the formation of the East African Federation. The Committee was honoured and privileged to have been given the opportunity to provide a possible road map to the Federation of East Africa.

THANK YOU.