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i Regional Integration Lecturer : Dr. Christiane Hardenberg Report on group exercise Preparation of Group Presentation on: East African Community Volkan Emre 0534436 Berlin, January 2012

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i

Regional Integration Lecturer : Dr. Christiane Hardenberg

Report on group exercise

Preparation of Group Presentation on:

East African Community

Volkan Emre 0534436

Berlin, January 2012

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TABLE OF CONTENTS

Page

1.Introduction 04

2.Background of the EAC 05

3.Main drivers for integration 06

4.1 Economic drivers 07

4.2 Political drivers 07

4.3 Social drivers 08

4.Achievements in main integration areas 08

4.1 Achievements in GDP & GDP per capita 08

4.2 Achievements in trade & trade patterns & intra-regional trade 09

4.3 Achievements in doing business 11

4.4. Achievements in tariff reduction & common external tariff 12

4.5 Achievements in capital movements 13

4.6 Achievements in Common Markets – Labor 13

4.7 Achievements in the attempts towards East African Monetary Union (EAMU) 13

4.8 Achievements in political / defense pact 14

5.Current integration debates 15

6. Main challenges 15

4.1 Trade related challenges 16

4.2 Non trade related challenges 16

7. Opportunities 17

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LIST OF TABLES & CHARTS

Table 1 Time Table and Progress of the EAC towards Political Federation 01

Table 2.1 EAC Members in Figures, 2010 06

Table 2.2 EAC, EU and US in Figures, 2010 06

Table 4.1.1 Changes in GDP 08

Table 4.1.2 EAC in Figures, 2010 09

Table 4.2.1 Growth of the Intra-Regional Trade in the EAC Countries 11

Table 4.2.2 Shares of EAC members in intra-regional trade, 2009 11

Table 4.4.1 Tariff Reductions in the EAC between 2005 and 2010 12

Table 4.7 Achievements in OCA criteria 14

Chart 4.2.1 Trade Volume (Exports+Imports) of EAC Countries between 2003 and 2008 09

Chart 4.2.2 Trade Balance (Exports-Imports) of EAC Countries between 2003 and 2008 10

ABBREVIATIONS / ACRONYMS

EAC East African Community

EAMU East African Monetary Union

EU European Union

ECOWAS Economic Community of West African State

SADC Southern African Development Community

OCA Optimum Currency Area

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1.INTRODUCTION

The East African Community can be classified in line with the south- south integration concepts.

What makes EAC more interesting than other south – south integration examples is that the member

countries of the EAC could have establish a common market and almost achieved their aim to have a

monetary union on their way to the political federation. There is a remarkable commitment backed

with a strong ambition behind the current integration in the East African Region.

The Treaty establishing the East African Community (EAC) was signed on 30 November 1999 and

entered into force 7 July 2000. Its original members were Kenya, Tanzania and Uganda. Burundi and

Rwanda became members in 2007. The goal of the EAC is to ‘widen and deepen economic, political,

social and cultural integration in order to improve the quality of life of the people of East Africa

through increased competitiveness, value added production, trade and investment1. The EAC Treaty

aims to establish an export-oriented economy that will enable the ‘free movement of goods, persons,

labor, services, capital [and] information technology’, as an important objective2.

The establishment treaty aimed to follow four different steps of the regional integration among its East

African members. Those steps are respectively: customs union, common market, monetary union and

political federation. Planned time frames of the different integration steps which are set in the treaty

and their actual introduction dates are shown on the table below.

Table 1 : Time Table and Progress of the EAC towards Political Federation

Timetable

EAC Customs Union EAC Common Market

· Operationalised on 1st July 2005 as agreed in

the treatment · The protocol on the establishment of the

EAC common market was being

negotiated as of 18 June 2009 · Operationalised on 1st July 2010

EAC Monetary Union EAC Political Federation

· No time frame set in the treaty · No time frame set in the treaty · Scheduled to 1st June 2012 · Unofficially aimed to be reached by 2015

1 EAC Development Strategy 2006- 2010, Executive Summary, available at http://www.eac.int/index.php 2 Treaty Establishing the East African Community, Art. 7(c), available at www.eac.int.

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Headquarters of the EAC is located in Arusha, Tanzania, which has been an important international

diplomatic hub in the past for East Africa and the continent. Arusha’s strategical location allows the

EAC member to have easy access to the city for all member countries.

Organizational structure of the EAC is quite complex as expected. The core organs can be stated as

follows: The summit, the council of ministers, the co-coordinating committee, sectoral committees, the

EAC court of justice, the EAC legislative assembly and the secretariat.

2.Background of the EAC

History of the EAC goes back to the early 20th century. Construction of the Mombassa – Kasese

Railway between 1897 and 1901 and the significant increase in the economic activities in the region

led Kenya and Uganda to establish a customs union in 1917. Tanzania joined the customs union in

1927. Both parties established the East African High Commission in 1948 which was replaced by East

African Common Services Organization in 1966. Finally the first East African Community was

founded in 1967 by Uganda, Kenya and Tanzania. But it could last only for ten years and collapsed in

1977. The main reason behind the collapse of the first EAC was political rather than economic. Cause

of that collapse was mainly depending on Kenya’s demand on having more seats than the other

participants.

In year 1993, old EAC members came together again in Arusha and signed the Treaty for East

African Co-operation which might be considered as the basis of the new community. East African Co-

operation was replaced by the new East African Community Treaty which was signed in 1999 again

by Kenya, Uganda and Tanzania. In 2007 the EAC had its final shape by adding Brundi and Rwanda

as new partner states to the community.

Both Sudan and South Sudan made their interest public in joining to the EAC. Since the geographical

proximity is one of the admission requirements to join to the EAC, Sudan’s candidacy is still not

possible. In addition to that, Tanzania, Uganda and Kenya are strongly opposed to Sudan’s entry to the

community because of Sudan’s racist actions towards non –Muslim black Africans. On the other hand

South Sudan has been warming up to the idea of joining to the EAC in the short term future. South

Sudan is a candidate country since July 2011 and has been working hard to be the 5th member of the

EAC.

Some figures might give better insights about the member states of the EAC in order to understand

the regions balances. Looking at the Table 2.1 , one can easily find out that Kenya is the leading

country of the region with the highest GDP and GDP per capita numbers. On the other hand Burundi

is slightly lacking behind all of the EAC member countries which might bring the question to the

front: Is EAC really a south – south integration from Burundi’s point of view?

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Table 2.1 : EAC Members in Figures, 2010

Population GDP GDP per capita

( Millions of people) ( US$

Billions) (PPP Current $)

Kenya 40,5 66,2 1635 Tanzania 44,8 62,23 1423 Uganda 33,4 42,21 1263 Rwanda 10,6 12,27 1155 Burundi 8,4 3,4 405

Source: World Bank Development Indicators, 2011, Own calculations

In order to answer such a question we should also look at EAC’s position in comparison with the other

major regional integration blocs. Considering the figures which can be captured on the Table 2.2.

below, we can argue that EAC is significantly lacking behind EU and US in terms of GDP and GDP

per capita. The picture is pretty much clear that any integration attempt under the EAC can be

classified as south – south integration. However we think that looking from Burundi’s perspective it

might be indeed a North –South integration in a south – south context. Some additional information

and data on the regional disparities within EAC can be in the upcoming sections which can put more

light on our question and answer.

Table 2.2 : EAC, EU and US in Figures, 2010

Source: WTO, World Trade Report 2010, EAC, EAC Facts & Figures Report 2011,World Bank

Developmet Indicators , Central Intelligence Agency, own calculations

3.Main Drivers for Integration

Every member state has its own political, economic and social dimensions behind regional integration

attempts within the EAC. But there are also common main drivers for integration which can be

EAC EU US

Population (2010) 138 million people 309 million people 502 million people

Surface Area 1.82 million sq.km 4.32 million sq.km 9.83 million sq.km

GDP (Current) $ 78.7 billion $16.2 trillion $14.6 trillion -2010

GDP per capita (Current,PPP)

$ 1176 $ 31,676 $ 47,182

-2010

GINI (%) 43.2 % 30% 41%

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evaluated in three different dimensions. Those dimensions are respectively: Economic, political and

social drivers for integration

3.1 Economic drivers for integration

Changes in world trading regime heavily influenced by WTO rules is playing important role in the

regional integration attempts in the world and as well as in East Africa. Therefore the changing nature

of the worlds trade is a dominant driver behind the integration attempts to have a better access to the

world markets. Additionally, limited and weak intra-regional trade does not allow the EAC members

to strengthen their weak domestic markets. The nature of the regional integration offers to the EAC

members to change that picture in their domestic markets just the other way around by liberalization of

the intra regional trade.

In addition to the trade side we should look at the production side too. EAC member states are also

expecting to benefit from the economies of scale and attract more FDI in a more integrated economic

environment. Mobility of the cheap labor within the region is expected to decrease the production

costs.

Establishing well framed intra-sectoral linkages among member states is an another economic driver

for integration. Enlargement of the markets and intra-sectoral linkages within the EAC take place

through regionalism due to their political economic background.

3.2 Political drivers for integration

Political drivers for integration can be evaluated in two groups. First group is the external political

influence which is mostly from the EU, that is openly supporting regional integration communities in

Africa with Cotonou Partnership Agreement. Besides the EU ,the biggest trade blocs and WTO are

encouraging regional integration attempts in Africa with their special trade preferences.

Second group of political drivers behind integration is domestic ones. Almost all of the EAC member

countries do have the historical ambition to increase the regional representation of the East Africa on

the old continents political platform. Other integration blocs within Africa like ECOWAS and

COMESA are generally seen as rivals in getting the benefits of the opportunities abroad.

Security concerns also do play role in the integration attempts. The EAC Treaty openly includes

cooperation in defiance, regional peace and security3

Additionally, the aim of promotion of the good governance which is set by EAC Treaty might be also

evaluated under political drivers for integration.

3 EAC Treaty, Chapter 23 , Article 123, 124 ,125

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Yet again, We can claim that the political drivers influence the integration process in line with the

regionalism concept.

3.3 Social drivers for integration

Social drivers are very much related to the social interactions of the region’s population and

immigration. Those issues are heavily linked with the regional disparities within the EAC.

Immigration is from poor (e.g Burundi, Rwanda) to relatively rich regions/ countries (e.g Kenya,

Tanzania). EAC aims to change that flows with the increasing amount of intra-regional trade and FDIs

with the regional integration.

Inequality in the income distribution among different social classes and as well as among member

countries (e.g Kenya vs. Burundi) gives an another motivation to the regional integration process as a

challenge.

Additionally, the aim to enhance the role of woman and increase their participation in the social and

economic life, can be classified as an another social driver which is also set as a goal by the EAC in

the Establishment Treaty. But off course implementations and achievements can be questioned.

4.Achievements in Main Integration Areas

In order to analyze the achievements in main integration areas, we will look at the following

dimensions below. As it is already mentioned above the EAC Community introduced ‘Customs

Union’ in 2005 and that integration stage has been in implementation up to now. In the following

analysis, we will take the year 2005 as a benchmark and question the before and after effects of the

introduction of the customs union in line with the possible expectations of that particular regional

integration type.

4.1 Achievements in GDP & GDP per capita

Looking at GDP figures which are shown on the Table 4.1 below, one can easily observe that GDP

growth increased among the member states in the last decade. However it is hard to ascertain the

contribution of Customs Union on this fact.

Table 4.1.1 : Changes in GDP

Source: World Bank Development Indicators, 2011, Own calculations

2001-2004 2005-2010 2001-2010Burundi 15 35 63Tanzania 32 54 126Uganda 32 63 136Rwanda 30 59 133Kenya 16 38 76

GDP Growth

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We can see a very similar picture if we look at the per capita figures. Changes in GDP per capita

growth after the introduction of the customs union in 2005 are quite remarkable but yet again these

variables had shown attendance to grow even before the implementation of customs union in 2005.

Though their growth was seem higher in relation to the previous growth before the implementation of

the customs union. As stated

Table 4.1.2 : EAC in Figures, 2010

Source: World Bank Development Indicators, 2011, Own calculations

4.2 Achievements in trade & trade patterns & intra-regional trade

Trade patterns are one of the most visible indicators to analyze before and after periods of the customs

unions introduction in 2005. We analyzed the trade volume and trade balance of the EAC within the

observation period between 2003 and 2008.

Chart 4.2.1: Trade Volume (Exports+Imports) of EAC Countries between 2003 and 2008

Source: WTO,World Trade Report 2010, EAC,EAC Trade Report 2009, own calculations

During that particular time period, both export and import volumes continued to increase after customs

union. One remarkable finding that we came across was that EAC’s total trade volume was increasing

more than before. Positive differences in percentage growth were observed between 4 to 6 percents.

2001-2004 2005-2010 2001-2010Burundi 7 18 26Tanzania 22 44 75Uganda 20 49 77Rwanda 22 51 86Kenya 7 25 39

GDP per capita Growth Rate

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This increase can be partly explained by the positive effect of the market liberalization through the

introduction of the customs union for the selected time period, however the world trade patterns’

positive cyclical movements might have played a role behind EAC’s trade volumes’ expansion.

Chart 4.2.2 : Trade Balance(Exports-Imports) of EAC Countries between 2003 and 2008

Source: WTO, World Trade Report 2010, EAC,EAC Trade Report 2009, own calculations

During our analysis on the customs unions’ effects on the trade patterns we found out that the

optimistic picture in the total trade volume has been slightly changing in total trade balance of the

EAC. Because EAC’s trade balance has been continuing to grow in deficit, especially after 2005. The

main reason behind that fact is the composition of the trade. Share of import are slightly more than

share of imports. And value of imports grew relatively higher than exports, especially after the

customs union. If we look to the sources of that distortion in the trade balance on Table 4.2.2 above,

we can easily capture that trade with the rest of the world had risen significantly and expansion of the

imports created the trade deficit in the EAC. Yet again we can include the worlds business cycle’s

upward movement in the analysis.

One of te most interesting findings of our research on EAC’s trade patterns between 2003 and 2008

was on intra-regional trade. As already mentioned in the economic drivers section of the paper, intra

regional trade is very important for EAC members to strengthen their weak domestic markets and

introduction of the customs union was a definitively an opportunity for change.

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Table 4.2.1 : Growth of the Intra-Regional Trade in the EAC Countries between 2003 and 2008

Source: WTO, World Trade Report 2010, EAC,EAC Trade Report 2009, own calculations

According to Table 4.2, the volume of the intra-regional trade decreased for one period and then

steadily increased after customs union till 2009. However, in reality the share of the intra-regional

trade to total trade instead decreased after customs union (Table 4.2.1) which is not an expected

situation for regional integration agenda of the EAC in the field of trade

If we have a closer look at the intra-regional trade we can easily capture Kenya’s dominance with its

almost 40 percent share in the overall intra-regional trade (Table 4.2.2). Rankings of the member

states are very much in line with their GDP and GDP per capita rankings as well. In that regard

Burundi is in the last place with its less than 5 percent share in the overall intra-regional trade.

Table 4.2.2 : Shares of EAC members in intra-regional trade, 2009

Source: EAC Trade Report 2009, own calculations

4.3 Achievements in doing business

Our analysis depends on the data extraction from World Bank Development Indicators between 2003

and 2010. First indicator is ‘’Progress in terms of time to start a business’’. The most remarkable

improvement was observed in Rwanda ( from 18 to 3 days) on the other hand the other fresh member

Burundi did perform badly. Starting business takes 24.6 days on average in the EAC. That average

used to be 37.2 in 2003.

Amount (million US$) Share (%)Kenya 1329 37Uganda 946 27Tanzania 640 18Rwanda 497 14Burundi 136 4

Intra-regional trade in EAC

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Second indicator is start up procedures to register a business as numbers. The average number of

procedures in the EAC was observed as 10.8 days which were 12.6 days in 2003. If we compare two

periods, we can argue that there haven’t been a remarkable increase in that field. Rwanda is again the

most liberal member while Uganda being the worst performer of all the EAC members.

Improvements in time to export and imports in terms of days were the last indicators. There have been

very important improvements, especially after customs union in 2005 and addition of new members in

2007 (Rwanda and Burundi). Time to exports has decreased from 45.4 to 33.9 days on the other hand

time to imports decreased from 68.6 to 38.8 days. Rwanda is again the champion (from 92 to 34

days). No changes was observed in Burundi.

Depending on the observations and findings which were briefly listed above, we can argue that the

liberalization attempts could slightly increase the ease of doing business within the EAC. Of all the

EAC members, Rwanda showed the biggest commitment in liberalizing its markets. On the other hand

Burundi showed a bad performance compared with others.

4.4 Achievements in tariff reduction & common external tariff & non tariff barriers

Tariff reduction is a major determinant for the EAC’s ambitions towards to a better integrated

community. The EAC declared a ‘Five Year Phase out Plan’ to reduce internal tariff rates to zero

percent before entering to the Customs Union in 2005. Therefore we wanted to analyze the internal

tariff reductions after 2005.

Table 4.4.1 : Tariff Reductions in the EAC between 2005 and 2010,(%)

Source: World Bank, World Bank Development Indicators

According to the Table 4.4.1 which is constructed on the data that we obtained form world bank,

current tariff rates are around 10% . It is obvious that The ‘Five Year Phase out Plan’ which aimed to

reduce all internal tariff rates to 0 % have not been fully harmonized

We should also say some words on common external tariff structure. East African Customs Union

Protocol says: The Protocol establishes a three-band common external tariff: a minimum rate of 0%, a

middle rate of 10% and a maximum rate of 25% in respect of all products imported into the region4.

4 East African Customs Union Protocol, Part B, Article 12 (1),p 15

2005 2006 2007 2008 2009 2010Burundi 20 16 14 13 9 10Tanzania 13 13 13 12 12 13Uganda 12 12 12 12 12 12Rwanda 19 19 19 19 10 10Kenya 12 12 12 12 12 12

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Non-tariff barriers are still in existence in the EAC. Numerous institutions in order to test goods which

are subject to the trade and several roadblocks along northern and central corridors are just two general

and simple examples. Uganda’s ban on beef and beef products from Kenta might be a specific

example.

4.5 Achievements in capital movements

Capital movements are evaluated in two main groups. First group is inward direct investments.

Barriers in inward direct investments have fully lifted and currently no EAC member state has

restrictions in that. But the picture is different in outward direct investments. Outward direct

investments are not allowed in Tanzania. Additionally, outward investments in Rwanda and Burundi

are depended on the approval of the national central banks. But both of the new members that joined

to the EAC in 2007 are going to gradually eliminate that barriers.

Foreign direct investments in the region are in transportation, communication, tourism and energy. We

can obviously see that the FDI composition is matching well with the developing country context,

since the poor infrastructure is a major obstacle to the economic activities. Major investors in the

region are respectively: China, United Kingdom, Japan, India, Italy and the U.S.

Intra regional FDIs are not playing major roles in the EAC. It is share is less than 1% of total FDIs in

the region. A very remarkable finding that we extract from EAC Trade Report 2009 is that Kenya is

the dominant source of FDIs with its more than 90% share. The second surprising finding is almost all

of the Kenya’s FDI is shared by Uganda (66%) and Tanzania(31%), on the other hand new members

Burundi and Rwanda receive almost no intra-regional FDI.

4.6 Achievements in Common Markets - Labor

EAC established its common market in July 2010. Reflections fn the common market implementation

on Labor markets could not be eaisly captured so far. But all the members state, except Tanzania are

acting in line with the common market protocol in allowing the labor force to flow between members.

Tanzania on the other has a progressive implementation which will continue till 2015. According to

the EAC common market regulation annex all of the member states are allowing the flow of the high

skilled labor force in the region.

4.7 Achievements in the attempts towards East African Monetary Union (EAMU)

EAMU is aimed to be introduced on 1st June 2012. Monetary union is one of the intermediate mile

stones to the East African Political Federation. Besides the political motivation in further integration ,

there are other reasons too.

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Members want to facilitate weak intra-regional trade through harmonized payment systems and

strengthen the local characteristics of the trade patterns. Additionally, capital and financial asset

accumulation through investment flows is an important expectation. Defensive motives such as

monetary stability and resilience to external shocks can be also discussed as the other motives.

There are several requirements for the monetary integration which are listed under the OCA (Optimum

Currency Area) criteria We analyzed three major requirement in order to measure the current

achievements.

Table 4.7 Achievements in OCA criteria

Source: WTO, World Trade Report 2010, EAC, EAC Facts & Figures Report 2011,World Bank Development Indicators , Central

Intelligence Agency, own calculations

First requirement is inflation rate which has a upper threshold of 5%. According to the Table.4.7, there

is a tremendous increase in the inflation rates between 2010 and 2011 which is a very bad sign for the

inflation requirement.

Second requirement is growth rate which has a lower threshold of a 7%. This requirement also could

not be achieved by the EAC member states.

Budget deficits of 5% of the total GDP is the last requirement for the monetary integration. EAC

member states are only able to fulfill that requirement if they include grants to their calculations.

All in all, the requirements could not be fulfilled on the way to the monetary union which is aimed to

be established next. summer.

4.8 Achievements in political / defense pact

One of the political drivers behind the regional integration attempts in East Africa is defense pact. The

region has unstable power dynamics and disputes. EAC members are openly seeking a regional

stabilty and security.

Burundi Rwanda Uganda Tanzania Kenya

Annual Growth (2010)- % 4 8 5 7 5

Inflation (2010)- % 6 2 4 6 4

Inflation (October 2011)- % 13,3 7,8 30,5 16,8 18,9

Budget Deficit to GDP Excluding Grants (2010)- % 15,6 13,7 7,9 11,2 8,8

Budget Deficit to GDP Including Grants (2010)- % 2,6 1,6 4,8 6,2 5,3

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EAC community has been very active in the diplomatic relations with that particular issue. The

Nairobi Protocol for the Prevention, Control and Reduction of Small Arms and Light Weapons in the

Great Lakes Region, the Horn of Africa and Bordering States was signed in 2004 and has been

updated up to now. Additionally, the tripartite framework between EAC, COMESA and SADC covers

regional security issues in detail.

Finally, the ECA-EU trading relationship’s political dimension strongly supports moves towards

mutual defense pact in the East African Region.

5. Current debates

EAC has a very dynamic political nature. Current debates are on three main areas. One is about the

competition of having the determining role within the community. Big brothers Kenya and Tanzania

are involved. The second hot topic is the admission of Southern Sudan. It is highly likely that sooner

or later South Sudan will be the 5th member state of the community. In that case the candidacy of

Sudan seems to be on the table, despite the security concerns. The last ongoing debate is about the

direction of the regional integration. Monetary Union is aimed to established just in months and there

are big still big concerns among the members.

6. Main challenges & Constraints

There are several challenges and constraints to the regional integration process in East Africa. We can

classify that challenges in two main groups. First groups is trade related challenges and the second one

is non trade related challenges.

6. 1 Trade related challenges

Poor infrastructure is an obstacle to the regional trade because of the lack of required facilities. A good

example would be the road blocks in the main trade destinations of the region.

Although ECA countries reached to the common market level in the regional integration, they have

failed to remove tariff barriers. Additionally the non –tariff barriers are still existing. At that point, we

can also talk about the lack of political will towards lowering the tariff rates and it also seem that there

is lack of clear guidelines regarding the implementation of trade liberalization. Lastly lack of

compatibility with the WTO rules is also a result all of the mentioned tariff harmonization processes.

The composition of the trade and the dominant share of the imports in the trade balance is an obstacle

to the opportunities for intra-regional trade. EAC imports almost twice as much as it exports. Again

the components of the export goods are very simple. EAC exports mainly primary and non processed

goods and imports finished consumer goods.

Another trade related structural problem is lack of diversification in the production and its negative

effects on the intra-regional trade.

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6. 2 Non-trade related challenges

Production patterns in the EAC are very simple an dependent. Lack of economic diversification and

entrepreneurship are not allowing to build up intra-sectoral linkages in manufacturing and benefit from

the regional integration.

Resources could not get mobilized by large amounts as it is expected in the regional integration

context. Again we can stress on the infrastructural problems . Low level of capital availability in the

regional banking systems , except Kenya might be a major reason behind that challenge.

High inflation rates in all of the member states might become to a very big challenge for the upcoming

monetary union. Therefore it is vital for the EAC to wait till every country fulfill that particular

requirement related with inflation rate.

Irregular migration, especially from poor to reach regions might be an important threat for the

developing EAC countries. Under the large informal sector conditions, majority of the immigrants are

potential candidates for the black market employment opportunities and cause socio-economic

problems.

Finally, overlapping memberships in different regional integration blocs is making the coordination

and regional cooperation harder for the EAC member countries.

7. Opportunities

With its more than 100 year old historical background, current achievements and ambition towards

political federation, EAC might overcome the challenges in the long run and enjoy the benefits of free

movement of persons, capital labor goods and services.

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References

East African Community, 2011, Facts and Figures Report, available at:

http://www.eac.int

EAC Development Strategy 2006- 2010. Executive Summary, available at:

http://www.eac.int/index.php

Treaty Establishing the East African Community, Art. 7(c), available at:

http://www.eac.int.

Worl Bank Development Indicators,2011, available at:

http://data.worldbank.org/indicator

Gathii, James Thuo ,2011, African Regional Trade Agreements as Legal Regimes,

Cambridge University Press, New York