Lack of uniform laws impede free movement of labour

Bureaucracy and conflicting ministerial rules are still a major threat to free movement of professionals in the region as enshrined in the East African Community Common Market Protocol, a new survey has revealed. According to the research commissioned by the Private Sector Federation, there is still reluctance among member states to respect and mutually recognise and liberalise professional services in the East African Community (EAC). The East African Common Market Protocol was established in 2010. It provides for the free movement of goods and services, labour, and capital to boost trade and investments in the region. But findings indicate a growing fear among partner states about mutual recognition of professional services, which is hindering free movement. Ignorance was also cited as hindrance to mutual recognition across the region affecting progress of the private sector. Members fear that recognising professional services would eventually lead to harmonisation of standards or practices to the lowest common denominator locking them into a system that will be difficult to introduce innovations and changes. Announcing the findings in Kigali yesterday, Happy Mukama, and attorney and lead researcher, said there is need for seamless movement of skills across the region to aid the business community become more competitive. “Businesses don’t want to set up where they can’t send skills to go, they want to make a profit. However, hiring expatriates is becoming more costly in addition to raising fears of rendering local citizens jobless,” Mukama said at a Private Sector Federation breakfast meeting in Kigali yesterday. The report calls on partner states to encourage temporary movement of persons while addressing disparities in various levels of training to facilitate cross-border trade. There is also need to update laws regulating services to conform with the new changes in the bloc, the research indicated. “They should also resume negotiations on additional liberalisation commitments in the common market in addition to increasing resources necessary for the negotiation and maintenance of Mutual Recognition Agreements (MRAs),” Mukama said. Amb. Valentine Rugwabiza, the minister for East African Community affairs, urged the private sector to look at the bloc as market destination and seize every opportunity of integration. “Most of you continue to use the Community as a place of transit instead of looking at it as a market destination. You need to be flexible so that you may tap into opportunities presented by the integration,” Amb. Rugwabiza said. “Rwanda will continue to set the pace in leveraging the possibilities presented by the Community.” Benjamin Gasamagera, chairperson of Private Sector Federation, said liberalising professional services while fast-tracking Common Market Protocol will enhance competitiveness among the business community. “Fast-tracking the protocol is an essential element in the sustainability of regional integration and critical for business competitiveness,” he said. According to Geoffrey Kamanzi, the PSF head of trade negotiations and facilitation, respecting MRAs will fast track free movement of professional service providers across borders and help create opportunities for joint ventures and access to regional markets.

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Lack of uniform laws impede free movement of labour