PREAMBLE
1.
The High Level Business and Investment was held at Grand Melia
Hotel on 28th and 29th November 2019 in Arusha, United
Republic of Tanzania. The Business Summit was officially opened by Professor
Palamagamba Kabudi, Minister for Foreign Affairs and East African Cooperation,
United Republic of Tanzania on behalf of H.E John Pombe Joseph Magufuli.
The High Level East African Business and
Investment Summit (EABIS) was jointly organized by the East
Africa Business Council, East Africa Community Secretariat and Tanzania Private
Sector Foundation, among others. The summit was themed: EAC@20 Private Sector-Driven Regional Integration for increased Intra-EAC
Trade and Investments.
2.
The high-level business summit was
held to set the economic agenda and outlook for East Africa, as the region
commemorates 20 years of the EAC integration process. The overarching goal of
the summit was to enable the private sector to meet high level policy decision-makers
from East Africa and beyond in order to influence policy reforms and implementation to improve the business environment in
the EAC region.
3.
The Summit enabled private sector
participants to share information and experiences about latest developments in
the EAC region and information about business opportunities. The participants
were able to get insights, new ideas and were inspired by open, candid and
critical self-examination as a region.
4.
The Summit also enabled attendees to
show-case their products and services in their exhibition booths and it also
gave participants opportunities to network, create personal business
relationships and partnerships.
5.
The Summit took stock of the EAC
achievements for the last 20 years and noted that the Community has made
tremendous progress in facilitating business in East Africa as well as
improving the social-economic environment.
The
private sector has been pivotal in these achievements and they include: putting
in place a Customs Union, implementing the Common Market and Monetary Union Protocols,
and laying the foundation for EAC Political confederation. Similarly, there has
been construction and operationalization of 13 One Stop Border Posts (OSBP), simplified
certificate of origin and cargo processing regime, implementation of a Common
External
Tariff,
development and improvement of physical infrastructure, adoption of a number of
sector policies, among others that have resulted in increased trade volumes.
6.
On the downside, it was noted that
there is a downward trend in the profile of EAC as an attractive trade and
investment destination due to; persistent non- tariff barriers, high costs of
doing business, un-harmonized domestic tax regimes, infrastructure bottlenecks,
deficient skills and technology and high cost of finance among others.
PURSUANT TO
THESE OBSERVATIONS THE HIGH
LEVEL BUSINESS AND INVESTMENT SUMMIT MADE THE FOLLOWING RESOLUTIONS ON THIS DAY
OF 29TH NOVEMBER 2019:
I.
The EAC integration should be
truly people centered and private sector driven as envisioned in the EAC Treaty
under article 7.
II.
The EAC region to double the
intra EAC trade from 12%-24% within five years by addressing persistent
non-tariff barriers, diversifying production, opening up borders, promotion of
regional value chains and development of regional local content policy.
III.
Implementation of regional
policies and directives by Partner States is instrumental in increasing trade
in the region. The public sector should fast track the domestication and
implementation of regional and sectoral policies, laws and protocols to create
an enabling business environment.
IV.
The EAC region needs to be jointly
promoted as a single investment destination, with reliable investor information
packaged to aid investor decision making.
V.
Partner States to fast track tax harmonization
by using a number of measures including establishing an initiative to address tax
related issues.
VI.
EAC Partner States should take
into consideration language barriers within the EAC region that impede ease of
doing business
VII.
Private sector to work closely
with the public sector to establish a regional tax and regulatory initiative
for business development.
VIII.
Partner States to fast-track
conclusion of the comprehensive review of the Common External Tariff.
IX.
There is an urgent need for
alternative dispute resolution mechanisms to facilitate trade
X.
The East African region should adopt the emerging Fourth Industrial Revolution technologies such as robotics,
Blockchain and Artificial Intelligence (AI), Internet of Things to reduce costs
and expand their services globally.
XI.
The public and
private sector need to collaborate to design measures that will catalyze the
Digital revolution in East Africa including Tech Bonds, Special Economic Zones
(SEZ), Tech Parks, Tech Hubs and protect its data by putting in place data
sovereignty policies.
XII.
The EAC Partner
States should embrace the AfCFTA for the private sector to take advantage of the
opportunities therein.
XIII.
EAC Partner
States to put in place measures for special consideration of women in business
in the EAC integration process.
XIV.
EAC Partner
States should enhance their sensitization campaigns for the citizenry to know
more about the EAC integration process
XV.
EAC Partner
states to expedite the finalization of the Standardization, Accreditation and
Conformity Assessment Bill (SACA Bill, 2017).
XVI.
Public and
private sectors to prioritize capacity building for SMEs in areas such as financing,
digitization; technology acquisition, market access, linkages with multi
nationals among others to be able to upgrade their operations for sustainability
and growth.
XVII.
The EAC region
should support development
and upgrading of regional value chains, specifically supporting the private
sector who are already established in the region as well as attract new
investments.
XVIII.
The EAC region should put in place measures to address the high cost of
production such as the energy tariffs, logistical bottlenecks and access to
affordable finance.
XIX.
EAC Partner States are encouraged to expedite the admission of
Democratic Republic of Congo (DRC) with a view to broadening and widening the
market. Discussions should also be geared towards encouraging Ethiopia to join
the EAC block.
XX.
To enhance competitiveness of export of coffee to the EAC and the rest
of the world, it is necessary to enhance trade facilitation and other technical
and trade policy reforms, both regionally and nationally.
XXI.
Recognising that private sector is the driver of the EAC integration,
there is need to re-examine the wording and purpose of observer status of EABC at
the EAC level with a view of becoming a true Partner.
XXII.
There is need to have structured and thematic business engagements
between the public and private sector that are sustainable in nature to address
trade and investment issues.
XXIII.
Inclusion of the
Academia in advancing regional integration initiatives
XXIV.
Noting the role of Public Private Partnerships in the economic
development of the EAC region, there is need for creation of special purpose
vehicles to allow investors to inject in money.
XXV.
There is need
for the EAC region to create strong linkages with the Diaspora
XXVI.
A joint
committee comprising EABC and EAC Council of Ministers should be set up to
closely monitor the implementation of the High Level Business Summit resolutions
XXVII.
An action plan
shall be developed to implement the resolutions of the High Level East African
Business Summit
ADOPTED THIS DAY OF 29TH
NOVEMBER, 2019 IN ARUSHA, TANZANIA
SIGNED
BY:
ON BEHALF OF THE EAST AFRICAN BUSINESS COUNCIL
MR. NICHOLAS NESBITT
CHAIRMAN
…………………………………………………………………….
ON BEHALF OF THE EAST AFRICAN COMMUNITY
HON. DR. VINCENT BIRUTA, MINISTER OF FOREIGN AFFAIRS AND
INTERNATIONAL COOPERATION, REPUBLIC OF RWANDA
CHAIRPERSON, EAC COUNCIL OF MINISTERS
…………………………………………………………………….
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