Somalia has been seeking admission to the East African Community (EAC) since 2012. But Somalia is still recovering from civil war and suffers from violent extremism, corruption and recurrent constitutional crises. The EAC criteria for admission emphasize good governance, democracy, the rule of law, human rights, and social justice. The report investigates the opportunities and challenges Somalia would face if it were admitted into the EAC.
Showing posts with label East African Community. Show all posts
Showing posts with label East African Community. Show all posts
Thursday, November 23, 2023
Somalia and the East African Community
The Heritage Institute published in November 2023 a study titled "Somalia's Accession to the East African Community: Legal Review, Opportunities and Challenges" by Bashir M. Sheikh-Ali.
Thursday, September 3, 2020
China's Role in Integrating the East African Community
The Stanford International Policy Review recently posted an analysis titled "China's Role in Regional Integration in Africa: The Case of East African Community" by Abdou Rahim Lema and Samu Ngwenya.
The paper looks at China's approach to infrastructure development in the East African Community (EAC) and analyzes China's trade polices towards the Community. It concludes that China's support of infrastructure in the EAC plays a crucial role in enabling cross-border mobility of labor, capital and goods. But China's current trade policies toward the EAC seem to threaten the region's integration prospects by jeopardizing intraregional trade and growing their trade imbalance with China.
Thursday, July 11, 2013
New Initiatives During Obama Trip to Africa
During his trip to Senegal, South Africa and Tanzania from 26 June 2013 until 3 July 2013, President Barack Obama announced three key initiatives. While there was far too much focus in the press on issues such as the high cost of the trip (all presidential travel is expensive for security reasons), it will increasingly be associated with the three key initiatives: Power Africa, Trade Africa and the Washington Fellowship for Young African Leaders.
The White House released on 30 June 2013 "Fact Sheet: Power Africa," which explains that the initiative will double access to power in sub-Saharan Africa by adding more than 10,000 megawatts of efficient electricity generation capacity. Initial partners include Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania. Power Africa will also work with Uganda and Mozambique on responsible oil and gas management. The U.S. will commit more than $7 billion to the effort over the next 5 years. For example, USAID will provide $285 million in technical assistance; the Overseas Private Investment Corporation up to $1.5 billion in financing and insurance for energy projects; U.S. Export-Import Bank up to $5 billion in support of U.S. exports for the development of power projects; and the Millennium Challenge Corporation up to $1 billion in African power systems. Power Africa will leverage private sector investment, beginning with more than $9 billion from companies such as General Electric, Heirs Holding and Symbion Power.
The White House released on 1 July 2013 "Fact Sheet: Trade Africa," which will focus initially on the members of the East African Community (EAC)--Burundi, Kenya, Rwanda, Tanzania and Uganda. Trade Africa aims to double intra-regional trade in the EAC, increase EAC exports to the U.S. by 40 percent, reduce by 15 percent the average time needed to import or export a container from the ports of Mombasa and Dar es Salaam to land-locked Burundi and Rwanda, and decrease by 30 percent the average time a truck takes to transit selected borders. Trade Africa may eventually expand to other African regions.
The President announced the third initiative concerning interaction with African youth in South Africa on 29 June 2013. The Washington Fellowship for Young African Leaders beginning in 2014 will bring more than 500 young African leaders to the U.S. each year for leadership training and mentoring. They will spend 6 weeks at top American universities in tailored training programs and have the opportunity to participate in internships in the private and public sectors. Microsoft, for example, will connect Washington Fellows with internships at their offices across Africa. Ethiopian Airlines will offer participants the opportunity to train at their business management and corporate governance platforms around the world. The U.S. will award more than $5 million in small grants to Washington Fellows who seek to start their own businesses or social enterprises. USAID will establish regional hubs and coordinators to connect Washington Fellows to these opportunities and leverage over $200 million in ongoing youth programs.
Everything considered, not a bad result for a visit that received surprisingly little press coverage--and much of that negative.
The White House released on 30 June 2013 "Fact Sheet: Power Africa," which explains that the initiative will double access to power in sub-Saharan Africa by adding more than 10,000 megawatts of efficient electricity generation capacity. Initial partners include Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania. Power Africa will also work with Uganda and Mozambique on responsible oil and gas management. The U.S. will commit more than $7 billion to the effort over the next 5 years. For example, USAID will provide $285 million in technical assistance; the Overseas Private Investment Corporation up to $1.5 billion in financing and insurance for energy projects; U.S. Export-Import Bank up to $5 billion in support of U.S. exports for the development of power projects; and the Millennium Challenge Corporation up to $1 billion in African power systems. Power Africa will leverage private sector investment, beginning with more than $9 billion from companies such as General Electric, Heirs Holding and Symbion Power.
The White House released on 1 July 2013 "Fact Sheet: Trade Africa," which will focus initially on the members of the East African Community (EAC)--Burundi, Kenya, Rwanda, Tanzania and Uganda. Trade Africa aims to double intra-regional trade in the EAC, increase EAC exports to the U.S. by 40 percent, reduce by 15 percent the average time needed to import or export a container from the ports of Mombasa and Dar es Salaam to land-locked Burundi and Rwanda, and decrease by 30 percent the average time a truck takes to transit selected borders. Trade Africa may eventually expand to other African regions.
The President announced the third initiative concerning interaction with African youth in South Africa on 29 June 2013. The Washington Fellowship for Young African Leaders beginning in 2014 will bring more than 500 young African leaders to the U.S. each year for leadership training and mentoring. They will spend 6 weeks at top American universities in tailored training programs and have the opportunity to participate in internships in the private and public sectors. Microsoft, for example, will connect Washington Fellows with internships at their offices across Africa. Ethiopian Airlines will offer participants the opportunity to train at their business management and corporate governance platforms around the world. The U.S. will award more than $5 million in small grants to Washington Fellows who seek to start their own businesses or social enterprises. USAID will establish regional hubs and coordinators to connect Washington Fellows to these opportunities and leverage over $200 million in ongoing youth programs.
Everything considered, not a bad result for a visit that received surprisingly little press coverage--and much of that negative.
Thursday, April 12, 2012
The State of East Africa
The Society for International Development (SID), an international network of individuals and organizations that promote social justice and foster democratic participation with a headquarters in Rome and regional office in Nairobi, just released its State of East Africa 2012: Deepening Integration, Intensifying Challenges. It looks at the people of the East African Community (EAC)--Kenya, Tanzania, Uganda, Burundi and Rwanda--, the natural resource base, human development, infrastructure, the economic profile and politics and government.
A few of the findings include: East Africa's population is expected to reach 237 million by 2030. Malnutrition and poverty remain among of the most difficult challenges facing the region. The telecom revolution is leading to an emerging mobile economy. The majority of residents are connected to the internet through mobile phones. An estimated 95 percent of East Africa's cargo is carried by road. This presents a significant challenge as 91 percent of East Africa's road network is unpaved. Intra-EAC trade expanded from $2.2 billion in 2005 to $4.1 billion in 2010. The region is also globalizing rapidly. East Africa is enjoying growth in foreign direct investment attracted by its natural resource endowment, growing economies and integrating markets.
Click here to read the entire report.
A few of the findings include: East Africa's population is expected to reach 237 million by 2030. Malnutrition and poverty remain among of the most difficult challenges facing the region. The telecom revolution is leading to an emerging mobile economy. The majority of residents are connected to the internet through mobile phones. An estimated 95 percent of East Africa's cargo is carried by road. This presents a significant challenge as 91 percent of East Africa's road network is unpaved. Intra-EAC trade expanded from $2.2 billion in 2005 to $4.1 billion in 2010. The region is also globalizing rapidly. East Africa is enjoying growth in foreign direct investment attracted by its natural resource endowment, growing economies and integrating markets.
Click here to read the entire report.
Monday, March 5, 2012
Uganda, China and Preferential Trade Treatment
Shinyekwa Isaac and Lawrence Othieno have researched Uganda's comparative trade advantage as it applies to China and other members of the East African Community (EAC). Dated September 2011 and titled Uganda's Revealed Comparative Advantage: The Evidence with the EAC and China, it was published by the Economic Policy Research Centre (EPRC) established in 1993 in Kampala. The goal of the EPRC is to foster sustainable growth and development of the Ugandan economy through research and applied policy analysis.
From my perspective, the paper is especially useful because it analyzes Uganda's chances to benefit from the special preferential treatment offered on 4,021 product lines by China. There have been very few studies of China's preferential trade ties with African countries. While there has been more analysis of the larger U.S. preferential trade program for African countries, it seems that neither the U.S. nor the Chinese program has had the positive impact that was originally envisaged. The purpose of these zero tariff programs is to increase African exports to the United States and China respectively.
While Uganda's exports to China increased from $237,000 in 2001 to $20 million in 2009, its imports from China increased from $16 million to $231 million over the same period. Uganda experienced a growing trade deficit with China each year between 2001 and 2009. Uganda's exports to China are growing but at a slower rate than imports from China. Uganda mainly exports cotton, coffee, leather, fish, oil seeds, timber and mineral products to China. One of the purposes of the study is to identify Ugandan products that can benefit from zero tariff treatment into China. The study concludes that without Ugandan policy changes, "Uganda may not have the capacity to increase her exports to China due to the various supply constraints in the economy."
From my perspective, the paper is especially useful because it analyzes Uganda's chances to benefit from the special preferential treatment offered on 4,021 product lines by China. There have been very few studies of China's preferential trade ties with African countries. While there has been more analysis of the larger U.S. preferential trade program for African countries, it seems that neither the U.S. nor the Chinese program has had the positive impact that was originally envisaged. The purpose of these zero tariff programs is to increase African exports to the United States and China respectively.
While Uganda's exports to China increased from $237,000 in 2001 to $20 million in 2009, its imports from China increased from $16 million to $231 million over the same period. Uganda experienced a growing trade deficit with China each year between 2001 and 2009. Uganda's exports to China are growing but at a slower rate than imports from China. Uganda mainly exports cotton, coffee, leather, fish, oil seeds, timber and mineral products to China. One of the purposes of the study is to identify Ugandan products that can benefit from zero tariff treatment into China. The study concludes that without Ugandan policy changes, "Uganda may not have the capacity to increase her exports to China due to the various supply constraints in the economy."
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