The chairman of the council of ministers of the East African Community, Hafsa Mosi, has said the bloc proposes to spend $109.68 million from July compared to $77.66 million that was allocated for the current expenditure window.
During the presentation of the budget estimates last week in Arusha, Tanzania, she said the implementation of the Common Market and laying the foundation for the next Financial Year would be a momentous one as the Community enters a higher phase in its integration process in view of the launch of the Common Market and the energised process toward the establishment of the East African Monetary Union.
According to estimates, development expenditure would take up 67 per cent of the total budget for next year.
Some $42 million would finance sustainable use of environment and natural resources, tourism and wildlife conservation while $10.27 million would be used to implement the common market protocol that was signed by the EAC heads of state in 2009 to boosting commerce.
Promotion of regional trade and infrastructure is planned to take up $12.5 million.
“While tremendous achievements have been made, we also recognise that there will be challenges in the period ahead to which we must apply ourselves in taking the regional integration forward,” Ms Mosi said.
She added : “The stage is therefore set for the full operations of a vibrant single market and investment area in East Africa.” Members of the EAC plan to jointly manage and share revenue from their tourism facilities as part of efforts to boost earnings from the key sector. Officials said EAC would also step up focus on the smooth implementation of the common market to allow the free movement of goods, services, people and capital within the bloc. This would make region easier to market to foreign investors.
The realisation of this dream has, however, run into hitches amid mistrust by some partner states that fear their economies would be compromised by dominant partners under such an arrangement.
“Our pressing call is to consolidate the gains of the customs union and maximise its benefits. During the year, we intensified efforts to address the problem of non-tariff barriers,” Ms Mosi said.
The EAC will also be looking to improve its road and energy infrastructure in 2011/12 fiscal year amid projections of higher inflows of investment. Foreign direct investment in the five-nation trade bloc rose to $1.72 billion in 2009 from $910 million in 2005.
She said the presentation of the Budget comes at a time when the East African Community is making very good progress and holding great promise for the period ahead. “While tremendous achievements have been made, we also recognize that there will be challenges in the period ahead to which we must apply ourselves in taking the regional integration forward. The stage is therefore set for the full operations of a vibrant single market and investment area in East Africa.
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