Friday, May 27, 2016


Hon Dr Susan Kolimba, Deputy Minister, Foreign Affairs and East African
Co-operation, Dr Susan Kolimba holds the Budget Speech. She is flanked by the EAC Secretary General, Hon Amb Liberat Mfumukeko.
The deputy Minister of Foreign Affairs and East African Co-operation, Hon
Dr Susan Kolimba presents the Budget Speech to the House. At back is the
EALA Speaker, Rt. Hon Daniel Fred Kidega.

The EAC today presented Budget estimates for the Financial Year 2016/2017 totaling
$101,374,589 to the East African Legislative Assembly sitting in Arusha.
Deputy Minister for Foreign Affairs and East African Co-operation, Hon
Dr Susan Kolimba presented the Budget speech to an attentive House on
behalf of the substantive Minister and Chair of the EAC Council of
Ministers, Hon Dr. Augustine Mahiga.

The 2016/2017 Budget is a
drop down from $110,660,098 Million presented to the House in the
previous Financial Year. The Budget prioritizes the full implementation
of the EAC Single Customs Territory, enhanced implementation of the EAC
Common Market Protocol especially additional commitments and
interconnectivity of border immigration systems and procedures across
Partner States and enhancement of productivity and value addition in key
productive sectors.

The budget also takes cognisance of development of cross-border infrastructure and harmonisation of laws,
policies and standards in respective sub-sectors, implementation of a
liberalised EAC airspace, enhanced implementation a One Area Network in
telecommunications and the implementation of EAC Peace and Security

According to the Minister, other key specific
priorities are strengthening of the legal and judicial systems,
enhancement of Information, Communication and Education to promote
popular participation of the citizenry in the EAC integration process
and promotion of education, science and technology for creative and
productive human resources.

The Chair of Council termed the
establishment of a policy framework and institutional structures for
establishment of the EAC Political Federation as another key priority
area in the coming financial year.

The Budget is allocated to the
Organs and Institutions of the EAC as follows; East African Community
Secretariat ($57, 872, 785), East African Legislative Assembly
($16,034,324) and the East African Court of Justice ($4,286,477).

Inter-University Council for East Africa shall receive ($4,553,890),
Lake Victoria Basin Commission ($11,214,708) while $ 2,131,422 is
earmarked for the Lake Victoria Fisheries Organization. On their part,
the East African Science and Technology Commission shall receive ($
1,161,438), East African Kiswahili Commission ($ 1,134,542) and the East
African Health Research Commission ($ 1,397,438). The East African
Competition Authority is to benefit from $587,565 in the Financial Year.

2016/2017 Budget is to be financed by Partner State contributions
($47,565,377) compared to USD 47 566,973 in the current Financial Year;
Development Partners support ($46,717,601) which is a significant drop
from USD 58,555,635 of the previous year. The Member Universities will
inject USD 431, 923, General Reserves USD 6, 354, 248 and miscellaneous
revenue USD 305, 440.
The EAC Political Federation is yet a key
priority area on the agenda in the coming Financial Year as the mode of
the regional Constitution making process commences. The same applies to
strengthening of regional and international relations through
mobilisation of Partner States’ diplomatic missions and the East African
diaspora for effective participation in EAC integration processes and
building of multilateral/international networks in pursuit of EAC

The Minister highlighted a number of achievements
registered in the Financial Year 2015/2016, notably, the upscaling of
the Single Customs Territory (SCT) through finalisation of operational
instruments of the business manuals, deployment of SCT Monitoring and
Evaluation tools and deployment of staff in some Partner States. The
Minister remarked that 10 out of the 15 One Stop Border Posts were
already operational.

The chair of the Council of Ministers
further stated that the EAC Elimination of Non-Tariff Barriers Bill
(NTB), 2015 passed by EALA was undergoing assent and would spur business
and enhance the free movement aspects. The Minister told the House that
National Monitoring Committees on NTBs and the EAC Regional Forum on
NTBs had continued to spearhead the elimination of NTBs affecting
Intra-EAC trade.

According to the Minister, the Council of Ministers further appointed
Commissioners to the EAC Competition Authority. “The Authority is set
to commence operations in the financial year 2016/17 and it will act as a
one stop centre in the enforcement of provisions of the EAC Competition
Act. The Secretariat has finalized preparations for the
operationalization of the East African Competition Authority”, the
Minister said.

In order to strengthen the Monetary Union, the
Minister said draft Bills for the establishment of the East African
Monetary Institute and the East African Statistics Bureau were been
developed and negotiated by the Partner States. The Minister informed
the House that in a bid to harmonise tax regimes, the EAC Secretariat
had continued with efforts for closed co-ordination of fiscal policies
with focus on critical areas for harmonisation.

“So far, domestic Tax Harmonization Policy has been drafted by the Secretariat
and is being peer reviewed by the International Monetary Fund (IMF)
before submission to the relevant Organs of the Community for
consideration” the Minister said.

Under Infrastructure development, the Minister informed the House of on-going construction
works especially on the Northern Corridor. The Minister said the
Arusha-Holili/Taveta-Voi road project and the second multinational road
projects in the region had commenced.

“In addition, the Secretariat signed a grant agreement amounting to US$ 2.68 million in
November 2014 with the AfDB through the NEPAD Infrastructure Project
Preparation Facility (NEPAD-IPPF) for the feasibility studies and
detailed designs of two key links for the Republics of Rwanda and
Burundi to the Central Corridor. These are the 250km long Nyakanazi –
Kasulu – Manyovu road in Tanzania linking to the 78km long Rumonge
–Bujumbura road in Burundi, and the 92km long Lusahunga – Rusumo road in
Tanzania linking to the 70km long Kayonza – Kigali road in Rwanda”, the
Minister said.

Hon Dr Kolimba further remarked that progress
with regards to the construction of the Mombasa-Nairobi Standard Gauge
railway stood at approximately 70% as at March 2016.

On Industrialisation and SMEs Development, the Chair of Council said that
the EAC had developed a draft Industrialisation Bill and that it was
awaiting legal scrubbing and input before it is presented to the
Sectoral Council on Legal and Judicial Affairs for consideration.

Within the Energy Sector, the Minister informed an attentive House that
implementation of power projects under the East African Power Master
Plan had resulted in the addition of 425 MW over the last two years
raising the region’s installed capacity from 4,468 MW to 4,893 MW
against a peak demand for 3,326 MW for the inter-connected system last

In the Tourism and wildlife sector, the Minister informed
the House that a regional strategy to combat poaching and illegal trade
in wildlife and wildlife projects was been developed by the Secretariat.

“In the next financial year, 2016/17 the priorities for the Tourism and
Wildlife sector will include, among others, developing guidelines for
smooth cross border tour operations, implementation of the regional
strategy to combat poaching and the illegal trade in wildlife and
wildlife products, finalizing the development of a tourism legal
framework, training of more hotel assessors from Partner States and
transferring training program of hotel assessors to training colleges in
hospitality in Partner States”, the Minister remarked.

On health matters, the Minister informed the House of progress in promotion of
integration of health sector and interventions to address challenges
facing the sector in line with Article 118 of the Treaty.

“Mr. Speaker, in order to strengthen human resource for health and ensure
right skills and knowledge is provided by the various public and private
sector universities and other institutions of higher learning in the
fields of medicine, medical laboratory sciences, nursing, pharmacy,
dentistry and other health professions, regular joint inspections have
been conducted by EAC Secretariat in collaboration with the EAC Partner
States’ National Health Professional Boards and Council using regional
guidelines and checklists developed for the inspection and mutual
reciprocal recognition”, the Minister said.

On the Common Market, the Chair of Council remarked that the region was keen to ensure
implementation of the Protocol. “Mr. Speaker, this August House may be
pleased to note that during the 17th Ordinary Sitting of the Summit of
EAC Heads of State, the new International East African Electronic
Passport was launched. The East African e-Passport represents; the
ordinary; official/service anddiplomatic Passports. The introduction of
the new e-Passport is a milestone that will see our Partner States join
global initiatives where over 100 countries are implementing the
electronic passports”, the Minister said.

“The Partner States are expected to issue the new international EA e- passport in to their
citizens in January 2017 and make necessary arrangements with relevant
authorities to implement the passport”, he added.

The Minister remarked that consultations with stakeholders in the employment
subsector such as the East African Trade Union Confederation (EATUC) and
Employers’ Associations have been undertaken on the process of
harmonization of the work/residence permit fees pursuant to Regulation
6(9) of the East African Common Market (Free Movement of Workers)
Regulations Annex II and regulation 6(5) of the East African Community
Common Market (Right of Residence) Regulations.

On matters of political affairs, the Minister informed the House of steps been taken
to lay ground for political integration. The 31st Meeting of the EAC
Council of Ministers in May 2015, the Minister said, established a
Sub-Committee of Ministers Responsible for EAC Affairs to consider the
concept note, Terms of Reference (ToRs); Roadmap for the Constitution
Making Process, and; to determine the Model of the EAC Political
Federation for consideration. The Sub-Committee met in February 2016 and
made a report to the Council on the basis of which the Council reported
to the 17th Ordinary Meeting of the Summit. The report was to the
effect that the Partner States had generated convergence on a
Confederation as the Model of the East African Federation.

The Minister said that the Community was keen to ensure regional peace and
security initiatives are realized. The sector players have a critical
role in ensuring the facilitation of the enjoyment of freedoms and
rights guaranteed by the Treaty. The sub-sector continued regular
consultations towards joint action against Terrorism, Small arms and
Light weapons trafficking, human and narcotics trafficking, theft of
motor vehicles and other cross border crimes. To this extent a training
manual and operating procedures on public order management with a human
rights perspective at the 14th Eastern Africa Police Chiefs Cooperation
Organization – Annual General Meeting (EAPPCCO- AGM) was launched, the
Minister informed the House.

“The next financial year will be dedicated to conclusion of another three harmonized Standing Operating
Procedures remains an omnipresent threat to the enjoyment of these
freedoms and rights. Attention will be paid to transnational crimes that
feed terrorism and terror infrastructure”, he said.

In a bid to improve financial management and reporting, the Minister remarked that
the Secretariat has rolled over the Sun systems to all EAC institutions
which were prior to, using different financial management systems. The
Budget Management System (BMS) which was developed and installed was as
well rolled out to all EAC Institutions, making it easy to prepare
Annual Operational Plans, MTEF budget and monitor its execution. As a
result of these improvements, budgets and financial reports are timely,
well prepared and submitted, the Minister said.

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