The CEO of the East African Business Council (EABC), John Bosco Kalisa, held “fruitful discussions” and engagement with the East African Community Secretary General, Peter Mathuki, on Friday, February 10, in Arusha, Tanzania. The deliberations, as noted, centered around tripling intra-regional trade and enhancing business competitiveness by eliminating barriers to trade and investment. ALSO READ: EABC pushes for 35 per cent common external tariff rate The private sector is a key player in driving the regional integration agenda. In their deliberations, Kalisa outlined the regional private sector policy agenda for the year 2023 and areas of partnership with the EAC. Here, we highlight seven of those nine areas: Resolution of persistent NTBs Fast-track resolution of persistent NTBs and enhance mechanisms for their elimination. Regional leaders have, in the past, directed partner states’ ministers in charge of EAC affairs to resolve long-standing unresolved non-tariff barriers that are hindering trade in the region. Inadequate coordination among the numerous regional institutions involved in testing and clearance of goods at the borders has been one of the barriers to trade. Harmonise taxation of air passenger and air services charges Harmonise the taxation of air passenger and air services charges within the region. In February 2022, Mathuki, urged African leaders to urgently implement the Single African Air Transport Market (SAATM) agreement, which will lower the cost of air transport in Africa and in turn boost development. The SAATM is a project of the African Union to create a single market for air transport in Africa. Once fully in force, it is supposed to allow significant freedom of air transport in Africa, advancing the AU's Agenda 2063. At the time, members of the East African Legislative Assembly (EALA) were calling for relevant EAC organs to expeditiously devise strategies to reduce the cost of air transport in the region. ALSO READ: How can EAC countries reduce intra-regional air transport cost? A report by the House’s Committee on Accounts after it undertook oversight activities in late 2021, indicated that: “Air transport in East Africa is generally expensive by international standards going by the current high passenger air fares and flight charges. The expensive rates on both passenger and cargo flights contribute to the high cost of doing business in the region.” ALSO READ: New EABC boss outlines top 12 priorities The Committee observed that most EAC countries have huge variations on air navigation charges and these have a huge bearing on the cost of travel. Air navigation service charges are levied on air operators to cater for enroute, approach and in terminal area costs. Secretary General’s business round table Jointly organize the Secretary General’s – business round table and ensure it is all inclusive. Mathuki, a former EALA member, has in the past said that the private sector needs to move beyond advocacy and liaise with the Government in providing solutions to some of the trade issues being faced across EAC Partner States. The Secretary-General also often urges the private sector to take advantage of ongoing bilateral engagements between partner states to promptly resolve trade disputes so as to increase trade volumes among regional states. Business summit alongside EAC Summit Jointly organize a business summit alongside the Heads of state Summit. Such events are to, among others, help always better highlight issues the business community wants leaders to address so as to improve the business environment. South Sudan government to ratify AfCFTA treaty Engage the South Sudan government to ratify AfCFTA treaty and ensure the East Africa business community is fully taking advantage of AfCFTA. The EAC is negotiating AfCFTA as a bloc. ALSO READ: East Africa meets minimum requirements for trading under AfCFTA The AfCFTA has been in operation since January 1, 2021, and other EAC partner states have ratified the agreement. Fast-track establishment of trade remedies committee In October 2019, a report of the regional Assembly indicated that the delay of the region to institute the Trade Remedies Committee and amend a critical article of the Protocol of the Customs Union was negatively affecting the business community, prolonging resolution of trade disputes and impacting intra EAC trade. The regional Assembly therefore affirmed the need for partner states to speedily amend Article 24 (2) whose ratification had taken a decade. ALSO READ: Five issues business community wants EAC leaders to address The Trade Remedies Committee which is to be constituted of members, qualified and competent in matters of trade, customs and law, was anticipated as a body designate to investigate disputes in the industry, recommend measures to prevent injury and to ensure timely fulfilment of all requirements by parties to the dispute, while providing advice as may be necessary. According to the Customs Union Protocol, the Trade Remedies Committee is to handle matters dealing with rules of origin, ensure regulations on anti-dumping measures provided for are adhered to and that of safeguard measures. The Committee is also expected to look into the subsidies and countervailing measures. Tanzania and Burundi to join one area network They also want to continuously urge Tanzania and Burundi to join the region’s one area network framework in order to reduce the high cost of communication. The regional business community has always been concerned about the “high cost of telecommunication” which they say has significant impacts on the cost of doing business. In September 2015, the EABC welcomed Tanzania’s then pledge that it would ‘soon’ join the East African Community One Network Area (ONA) which harmonises tariffs on voice calls within the region. The ONA is just one of the ambitious development clusters that Tanzania, Rwanda, Burundi, Uganda and the DR Congo had agreed to jointly implement under the Central Corridor infrastructure projects development initiative. The ‘One Network One Country Model’ – under which a call within East Africa, across all networks costs the same as a local call is their ideal scenario and EABC continues to urge Tanzania and Burundi to join the One Network Area (ONA) which is being implemented by Kenya, Uganda, Rwanda and South Sudan under Northern Corridor Integrated Projects framework.
