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Political Federation

What is a Political Federation?

The Political Federation is the ultimate goal of the EAC Regional Integration, the fourth step after the Customs Union, Common Market and Monetary Union. It is provided for under Article 5(2) of the Treaty for the Establishment of the East African Community and founded on three pillars: common foreign and security policies, good governance and effective implementation of the prior stages of Regional Integration.

It is worth noting that attainment of the Political Federation is a process and not an event. Though the process has been slow, the EAC Heads of State resolved at a Special Summit held in Nairobi on 27-29 August 2004 to examine ways and means of deepening and accelerating the process through a fast-track Mechanism. The Summit set up a Committee to Fast-Track the EAC Political Federation, dubbed the Wako Committee, to carry out wide consultations and finalise the work on the Political Federation. The Committee presented its report to the Summit on 29 November 2004.

As a result of the consultative process, the office of Deputy Secretary-General responsible for Political Federation was established in 2006 to coordinate this process.

Since 2004, the EAC has been putting in place initiatives to fast-track political integration. Summit directives were given and national consultations with stakeholders between 2006 and 2008 as well as various studies were undertaken to examine, facilitate and fast-track the process. In the consultations, it became clear that the East African citizens want to be adequately engaged and to have a say in the decisions and policies pursued by the East African Community.

On 20th May, 2017, the EAC Heads of State adopted the Political Confederation as a transitional model of the East African Political Federation.

 

Sectors under the Political Federation:

Establishing common foreign and security policies to safeguard the common values, fundamental interests and independence of the Community through strengthening the security of the Community and its Partner States .

Fostering and maintaining a conducive atmosphere that is a pre-requisite to social and economic development through co-operation and consultations on issues pertaining to peace and security of the Partner States.

What is the Monetary Union?

The East African Monetary Union (EAMU) is an important stage in the process of East African Community (EAC) Regional Integration. The EAMU Protocol was adopted in accordance with the EAC Treaty and signed on 30th November 2013; it lays groundwork for a monetary union within 10 years and allows the EAC Partner States to progressively converge their currencies into a single currency in the Community.

In the run-up to achieving a single currency, the EAC Partner States aim to harmonise monetary and fiscal policies; harmonise financial, payment and settlement systems; harmonise financial accounting and reporting practices; harmonise policies and standards on statistical information; and, establish an East African Central Bank.

Sectors under the Monetary Union:

financial highlight

Co-operation in monetary and fiscal matters in order to establish monetary stability within the Community, aimed at facilitating economic integration efforts and the attainment of sustainable economic development of the Community.

Providing an enabling environment for the private sector to take full advantage of the Community through the promotion of a continuous dialogue with the private sector to help create an improved business environment and enhancing investor confidence in the region.

Trade

 
trade highlight2

Rationalising investments and the full use of established industries to promote efficiency in production, as well as harmonising trade policies, investment incentives and product standards, with a view to promote the Community as a single investment area

What is the Common Market?

The Common Market is the second Regional Integration milestone of the East African Community (EAC), which has been in force since 2010, in line with the provisions of the EAC Treaty. It follows the Customs Union, which became fully-fledged in January 2010.

To accelerate economic growth and development, it means that the EAC Partner States maintain a liberal stance towards the four Freedoms of movement for all the factors of production and two Rights between themselves. These Freedoms and Rights include:

  • Free Movement of Goods
  • Free Movement of Persons
  • Free Movement of Labour / Workers
  • Right of Establishment
  • Right of Residence
  • Free Movement of Services
  • Free Movement of Capital

Underlying the EAC Common Market are operational principles of the Community, namely:

  • Non-discrimination of nationals of other Partner States on grounds of nationality;
  • Equal treatment to nationals of other Partner States;
  • Ensure transparency in matters concerning the other Partner States; and
  • Share information for the smooth implementation of the Protocol.

Sectors under the Common Market:

Enhancing food security and rational agricultural and livestock within the Community through harmonisation of agricultural policies as well as joint programmes for efficient and effective production.

Embracing Culture and Sports as both enablers and drivers of a people-centered integration agenda through the promotion and enhancement of diverse sports activities and the promotion and preservation of our culture is of paramount importance.

customs highlight2

Undertaking joint action towards the prevention and control of communicable and non-communicable diseases and to control pandemics and epidemics of communicable and vector-borne diseases.

Recognising the fundamental importance of education, science and technology in economic development through harmonized curricula, examination, certification and accreditation institutions.

Energy

 
energy highlight

Adopting policies and mechanisms to promote the efficient exploitation, development, joint research and utilisation of various energy resources available within the region.

Coordinating, harmonising and complementing transport and communications policies; improving and expanding the existing transport and communication links; and establishing new ones.

gender highlight2

Adopting common approaches towards the disadvantaged and marginalised groups, including women, children, the youth, the elderly and persons with disabilities aimed at employment creation, poverty alleviation and improving working conditions.

Health

health highlight2

Undertaking joint action towards the prevention and control of communicable and non-communicable diseases and to control pandemics and epidemics of communicable and vector-borne diseases.

immigration and labour highlight2

Accelerating economic growth and development of the Partner States by facilitating the free movement of persons and labour through the adoption of common policies and procedures.

Improving the competitiveness of the industrial sector so as to enhance the expansion of trade in industrial goods within the Community and the export of industrial goods from the Partner States.

infrastructure highlight2

Coordinating, harmonising and complementing transport and communications policies; improving and expanding the existing transport and communication links; and establishing new ones as a means of furthering the physical cohesion of the Partner States.

Providing an enabling environment for the private sector to take full advantage of the Community through the promotion of a continuous dialogue with the private sector to help create an improved business environment and enhancing investor confidence in the region.

peace highlight2

Fostering and maintaining a conducive atmosphere that is a pre-requisite to social and economic development through co-operation and consultations on issues pertaining to peace and security of the Partner States.

Collectively promoting and marketing the Community as a Single Tourist Destination while conserving and ensuring sustainable utilisation of wildlife and other tourist sites.

Trade

 
trade highlight2

Rationalising investments and the full use of established industries to promote efficiency in production, as well as harmonising trade policies, investment incentives and product standards, with a view to promote the Community as a single investment area.

 

 

Key Initiatives under the Common Market:

African Growth Opportunity Act

EAC is benefiting from AGOA, the cornerstone of U.S. economic engagement with the countries of sub-Saharan Africa.

European Union Everything But Arms

Four EAC Partner States receive full duty-free and quota-free access to the EU for all their exports with the exception of arms and armaments.

What is the Customs Union?

The Customs Union is the first Regional Integration milestone and critical foundation of the East African Community (EAC), which has been in force since 2005, as defined in Article 75 of the Treaty for the Establishment of the East African Community.

It means that the EAC Partner States have agreed to establish free trade (or zero duty imposed) on goods and services amongst themselves and agreed on a common external tariff (CET), whereby imports from countries outside the EAC zone are subjected to the same tariff when sold to any EAC Partner State.

Goods moving freely within the EAC must comply with the EAC Rules of Origin and with certain provisions of the Protocol for the Establishment of the East African Community Customs Union.

Sectors under the Customs Union:

Enhancing food security and rational agricultural and livestock within the Community through harmonisation of agricultural policies as well as joint programmes for efficient and effective production.

Enabling the EAC Partner States to enjoy economies of scale, with a view to supporting the process of economic development through the establishment of a Single Customs Territory.

Health

 

Undertaking joint action towards the prevention and control of communicable and non-communicable diseases and to control pandemics and epidemics of communicable and vector-borne diseases.

Accelerating economic growth and development of the Partner States by facilitating the free movement of persons and labour through the adoption of common policies and procedures.

Improving the competitiveness of the industrial sector so as to enhance the expansion of trade in industrial goods within the Community and the export of industrial goods from the EAC Partner States.

Coordinating, harmonising and complementing transport and communications policies; improving and expanding the existing transport and communication links; and establishing new ones.

Collectively promoting and marketing the Community as a Single Tourist Destination while conserving and ensuring sustainable utilisation of wildlife and other tourist sites.

Rationalising investments and the full use of established industries to promote efficiency in production, as well as harmonising trade policies, investment incentives and product standards, with a view to promote the Community as a single investment area.

Key Initiatives under the Customs Union:

Involves interconnectivity of customs systems to facilitate seamless flow of information between customs stations and a payment system to manage transfers of revenues between EAC Partner States

EAC is benefiting from AGOA, the cornerstone of U.S. economic engagement with the countries of sub-Saharan Africa.

Consisting of 26 member countries, the COMESA-EAC-SADC Tripartite is accelerating economic integration for the people of the Eastern and Southern African Region.

Trade and development agreements have been negotiated between the EU and African, Caribbean and Pacific partners to cover goods, fisheries and development cooperation.

Four EAC Partner States receive full duty-free and quota-free access to the EU for all their exports with the exception of arms and armaments.


East African Community
EAC Close
Afrika Mashariki Road
P.O. Box 1096
Arusha
United Republic of Tanzania

Tel: +255 (0)27 216 2100
Fax: +255 (0)27 216 2190
Email: eac@eachq.org