PRESS-STATEMENT ON THE EAC
PRE-BUDGET READING FOR THE FISCAL YEAR
2019/2020
6TH JUNE
2019, ARUSHA, TANZANIA
The EAC
Partner States will unveil their Budgets for the Fiscal Year 2019/2020 in June 2019, after holding a Pre-budget
meeting of Ministers of Finance, to agree on fiscal and tax issues.
The
East African Business Council urges the EAC Partner States to unveil a budget
that will lower cost of doing business in the region in a bid to promote local
manufacturing, regional value chains, and creation of employment opportunities.
Improvement of transport infrastructure, energy and access to credit to ease doing business in the EAC. In 2018, real
GDP in East Africa grew by an estimated 5.7 percent, slightly less than the 5.9
percent in 2017. Although the EAC has one of the highest-share of
intra-regional trade among the major RECs in Africa, the share of intra-EAC
exports have dropped from 20.9% in 2013 to as low as 15.9% in 2015. In 2017,
the region recovered from a lower share of 16.5% in 2016 to 19.7% in 2017 (WTOTrade Policy Review Body,2019).
Total
intra-EAC investments decreased by 22.3 percent to USD197.0 million in 2017
from USD254.1 million in 2016 and Foreign Direct Investments into East Africa
decreased by 25.3 percent to USD 6.6 billion in 2017 (EAC Trade and Investment
Report, 2017).
To enhance
revenue collection, the EAC Partner States budgets should focus more on efficient
and effective service delivery for the growth and expansion of businesses
within the EAC and beyond.
The EABC also urges
for adequate budgetary allocation of resources for the implementation and
monitoring of the EAC Common Market Protocol and support to National Implementation
Committees and related activities.
In summary,
the EAC Partner States Budgets for the Fiscal Year 2019/2020 should prioritize and be geared to achieving the vision of the
EAC Industrialisation Policy/Strategy i.e. a globally competitive,
environment-friendly and sustainable industrial sector, capable of significantly
improving the living standards of the people of East Africa by 2032 and the objective
of 5th EAC Development Strategy to building a firm foundation for
transforming the EAC into a stable, competitive and sustainable lower middle
income region by 2021. The EAC Partner States Budgets for the Fiscal Year
2019/2020 should address the following key challenges of the EAC regional integration.
§ The high cost of doing business (High costs of electricity,
transport and logistics as well as the cost of borrowing.
§ Budgetary allocations by EAC Partner States for the
implementation and monitoring of the Common Protocol and Customs Union
protocols
§ Emphasis on increasing intra-EAC Trade through the elimination
of Non-Tariff Barriers.
§ Improving trade facilitation
§ Fast track the finalization of the EAC Common External Tariff to
avoid trade distortions
§ Elimination of work permit
fees and restrictions for East Africans
§ Mechanisms to enhance Public-Private Dialogues for Trade and
Investment.
Issued by:
Hon. Peter Mathuki
CEO/Executive Director
East African Business Council
-END-
About EABC
The East African Business Council (EABC) is the regional apex body of Private Sector associations and
Corporates from the 6 East African Countries. It was established in 1997 to foster
the interests of the Private Sector in the Integration process of the East
African Community. Vision: Borderless East Africa for business and investment.Mission: To
promote sustainable Private Sector-driven growth. For more information about EABC, visit www.eabc.info
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