The EAC has presented to the East African Legislative Assembly (EALA), the long-awaited Budget estimates for the Financial Year 2020/2021, totaling to $97,669,708, through a virtual conference. The Chairperson of the EAC Council of Ministers and State Minister for EAC, Republic of Rwanda, Hon Prof Nshuti Manasseh, presented the EAC Budget Speech on 25th of this month.
The 2020/2021 Budget is themed: “Stimulating the economy to safeguard livelihoods, jobs, businesses and industrial recovery.”
Priority Interventions for FY 2020/2021, Hon Nshuti said, would focus on several priority programmes.
Key among them are the consolidation of Single Customs Territory (SCT) to cover imports and intra-EAC traded goods, including agricultural and other widely consumed products as well as enhanced infrastructure development in the region.
Hon Nshuti further said that the EAC would enhance free movement of all factors of production and other areas of co-operation across the Partner States, as envisaged under the Common Market and Monetary Union Protocols and strive for the promotion of peace, security and good governance.
Another priority area, Hon Nshuti informed the attentive House, is to enhance regional industrial development through investment in key priority sectors, skills development, technological advancement and innovation to stimulate economic development.
The 2020/2021 Budget is allocated to the organs and institutions of the EAC as follows; East African Community Secretariat ($48,564,400), East African Legislative Assembly ($16,755,725) and the East African Court of Justice ($3,970,406). The Inter-University Council for East Africa shall receive ($10,977,276), Lake Victoria Basin Commission ($8,380,057) while $ 3,077,934 is earmarked for the Lake Victoria Fisheries Organization.
In addition, the East African Science and Technology Commission shall receive ($ 1,536,751), East African Kiswahili Commission ($ 1,399,318), the East African Health Research Commission ($ 1,879,600) while the East African Competition Authority, shall benefit from $1,128,240in the Financial Year 2020/21.
Success in efforts to mitigate the impact of the Covid 19 pandemic is a further assumption in the successful implementation of the USD 97 Million budget. Hon Nshuti said the consolidation of the SCT would enhance intra EAC trade.
“This will lead to a further reduction in the time taken by travelers and trucks at the borders and on the overall cost of doing business in the region”, the Minister remarked.
At the same time, the Minister was emphatic that implementation of the roadmap towards the EAC Monetary Union will facilitate economic integration for sustainable growth and development of the Community. He said the measures would be arrived at through harmonisation of fiscal and monetary policies and on establishment of requisite institutions anchoring the East African Monetary Union.
Out of the proposed budget 57% (amounting to USD 55, 698,916) will be contributed equally by Partner States or raised as other internal revenues, while the balance (amounting to USD 41,970,792), which is pegged at 43%, is expected to be sourced from the Development Partners.
This year’s budget is a step down from the amount of USD 116,428,004 approved by the August House last financial year.
On infrastructure, Prof Nshuti said the EAC continued to operationalize the One Stop Border Posts (OSBPs) with the Nimule/Elegu (Uganda/South Sudan border) and Tunduma (Tanzania/Zambia border) launched during the previous Financial Year.
The Minister said the implementation of the 400 km long multinational Kenya/Tanzania road, that traverses: Malindi -Lunga Lunga and Tanga, through to the Bagamoyo area, is under tendering stage, following the securing of a financing package to the tune of EUR 375 Million from the African Development Bank (AfDB) and European Union by the two governments. The Minister said construction of road sections in Kenya and Tanzania, was expected to commence in 2020.
He further mentioned the commencement of construction of the 260 km Kabingo – Kasulu -Manyovu road in Tanzania and Gitaza – Rumonge (45 km) in Burundi, that will link the two Partner States following grants and loans secured from the AfDB.
Prof Nshuti also informed the House of the progress on the Standard Gauge Railway (SGR) in the region.
On aviation and airports subsectors, the Minister said the EAC Secretariat had coordinated the implementation of EAC seamless Upper Airspace project, including harmonization of regulations, manuals of air navigation services and development of common Secondary Surveillance Radar (SSR) codes.
In a bid to spur implementation of Payment and Settlement systems in the region, the Minister said, the region had through the Sectoral Council on Finance and Economic Affairs (SCFEA), considered and approved the draft EAC Banking Certification Policy, its implementation Strategy and Roadmap, as well as approved the draft EAC Microfinance Services Policy and the draft EAC Insurance Bill.
The House is now expected to consider and debate on the Budget proposals beginning on Monday next week.
