Tanzania’s apparent reluctance to fast-track East Africa’s integration has led to suggestions that the rest of the states should not wait for Dar es Salaam.
But as Alon Mwesigwa reports, Uganda, Kenya and Rwanda may need Tanzania more than it needs them.
Although Tanzania has historically been a key member of the East African community, two meetings – in Entebbe and Mombasa – which it missed, have raised eyebrows.
Although Tanzania has historically been a key member of the East African community, two meetings – in Entebbe and Mombasa – which it missed, have raised eyebrows.
The Mombasa meeting last month, which
discussed the regional infrastructure and the Single Customs Territory
(SCT), led to questions on whether Tanzania was still interested in the
integration.
The meeting was attended by Presidents
Uhuru Kenyatta (Kenya), Yoweri Museveni (Uganda) and Paul Kagame
(Rwanda). Tanzania’s Jakaya Kikwete was missing. South Sudan, which
might be admitted into the community soon, and Burundi, were represented
by ministers.
Tanzania was also not present at the
earlier meeting of the three presidents in June, where the region’s
infrastructure was high on the agenda. With Tanzania apparently
foot-dragging, The Observer recently reported that Uganda, Kenya and
Rwanda had even formed a committee to draft the constitution for the
eventual federation.
In some circles, these countries are
referred to as the ‘coalition of the willing’. While the EAC Treaty
provides for some members moving forward with integration as others
catch up, Tanzania sees the trilateral ‘coalition’ as a threat to the
broader regional integration.
“So long as Kenya, Rwanda, and Uganda
have consciously decided to isolate us, all we can do is to leave them
alone and wish them well,” Tanzanian East African Community Affairs
Minister Samwel Sitta was quoted in The East African newspaper last
week.
Dr Ladislaus Komba, Tanzania’s High
Commissioner to Uganda, also told The Observer that any trilateral
action could resurrect the ghosts that led to the collapse of the EAC in
1977.
Tanzania's case
But why does Tanzania seem uninterested in fast-tracking the federation?
Experts say it has genuine reasons
ranging from land and mineral concerns to the amount of trade it has
with the member states. Isaac Shinyekwa, a research fellow on regional
integration at the Economic policy Research Centre (EPRC), said:
“First of all, the EAC countries must
first come clear on the issue of land. Tanzania knows there is a big
problem about the land ownership in Uganda and Kenya, where it is the
rich who own the biggest chunks of land. People are fighting day and
night over land. Tanzania has seen all this.”
Land in Tanzania is property of the
state but citizens use it communally. Shinyekwa says Tanzania seems to
be so much inclined to the Southern African Development Community (SADC)
than EAC.
Indeed, 2011 figures by the EAC
secretariat indicate that Tanzania exports to the EAC partners were
worth $416.8m while Kenya’s were $1,544.4m. Uganda was second to Kenya
with her exports valued at $649.7m.
These figures don’t sound impressive to Tanzania.
“Kenya is a power house; perhaps Tanzania has realised that there is nothing to sell there,” Shinyekwa said.
In a way, Tanzania acts more as a market
for the members. Tanzania also knows the problems of integration,
reading from her experience of political federation with Zanzibar, he
says.
But Shinyekwa also feels that the rate at which the ‘coalition’ trio is pushing the integration is too high.
In November, they are expected to sign
the monetary union protocol but they agreed it would take between five
to 10 years to be realised, followed by the political federation soon
after. Yet, by comparison, it took Europe at least 50 years to realise
the monetary union.
“Tanzania is saying, ‘look, we can go
slowly here’,” Shinyekwa says. “I think the integration should have
stopped at the Customs Union and then they first observe the progress
before rushing into signing other protocols.”
Who needs Tanzania?
To Shinyekwa, the other EAC members need
Tanzania more than it needs them – from donating land where the EAC
headquarters in Arusha, to having a long coastline and Dar es Salaam
used by member states to import their goods in times of turbulence in
Kenya.
Also, the country’s districts near
Mutukula border depend heavily on Uganda for their needs, which give
Ugandan traders a ready market. And many of Kenya’s exports find their
way into Tanzania – providing a much-need market for the country’s
blossoming manufacturing sector.
The Export Promotion Council, Kenya
(EPC) says the country’s total exports to Tanzania in 2011 were valued
at Kshs 41.05bn (approximately $469m) while Tanzania’s exports to Kenya
were valued at Kshs 15.58bn (approximately $178m) in the same year.
Kenya Revenue Authority (KRA) ranks
Tanzania the fourth market for Kenya’s exports after Uganda, UK, and
Egypt. Thus, losing Tanzania in the federation means mislaying a big
market for other states and an import port of Dar–es-salaam.
While it might also cost Tanzania, it
has huge hopes in SADC – its main trading partners. Martin Okumu, Uganda
National Chamber of Commerce and Industry secretary general, argues
that Tanzania is the most important partner in the federation.
“Tanzania is one of the three states
[with Uganda and Kenya] that sought to revive the EAC. The rest were
invited later. How can you leave the founding member?” wonders Okumu.
On Tanzania being linked more to SADC,
Okumu says it’s even at the advantage of EAC that one of their members
is allied to a stronger bloc.
“Tanzania can bring lessons to EAC and
show them that look, things are done this way. Besides, SADC has been in
place for so many years and the EAC was defunct. Do you expect Tanzania
to trade more with a bloc that had not been in existence for many
years?” Okumu said.
Besides, Tanzania is the most stable
country in the region, it has had smooth transition of leaders unlike
other states, Okumu argues.
Politicians
Meanwhile, the private sector in Uganda
has complained that in an attempt to fast-track the federation, they
have been sidelined. They say when the president is signing all these
protocols and making visits in the region, he only moves with
politicians and technical people but not the private sector.
Godfrey Ssali, policy and advocacy
officer for Uganda Manufacturers Association (UMA), said the private
sector must be consulted.
“The president has always said that
Uganda’s economy is private [sector]-led, but we haven’t seen him
consulting us,” Ssali said. “We thought the federation was supposed to
improve trade. If you don’t engage or ask the stakeholders, then it
beats our understanding. To me it looks as if it’s a coalition of
politicians pushing their own agendas.”SOURCE: THE OBSERVER- UGANDA
