The Council of Ministers of the East African Community (EAC) has submitted to the East African Legislative Assembly (EALA) the budget proposal of over $91.7 million for the 2021/2022 Financial Year. It will focus on deepening integration and projects intended to help the region recover from the Covid-19 effects. However, if this budget is approved by the EAC legislative body, it will represent a reduction of over $5.8 million or 6 percent compared to over $97.6 million budget for the Community in the previous fiscal year. While presenting the EAC budget estimates for the next financial in Arusha, Tanzania on Monday, June 28, Adan Mohamed, Kenya’s cabinet secretary for EAC and regional development said that it was themed “Economic Recovery through Industrialisation and Inclusive Growth.” Muhamed is the Chairperson, Council of Ministers. The budget estimates, he said, are presented at a time when the Covid-19 pandemic has ravaged economies through lockdowns and economic shutdowns, resulting in the loss of millions of jobs, livelihoods and general economic malaise all over the world. As a result, he said, during the year 2020, exports shrank in all EAC Partner States. He cited exports from Kenya and Uganda, which contracted by 7.6 percent and 1.7 percent respectively between March and June 2020, while during the same period, imports of intermediate goods contracted by 25 percent, 11.3 percent and 22.9 percent in Kenya, Uganda and Tanzania respectively. Similarly, the industrial sector in Rwanda, Kenya and Uganda shrunk by 3.5 percent, 0.5 percent 2 and 6.3 percent respectively, he told the regional House. On June 24, 2021, Beata Habyarimana, Rwanda’s Minister of Trade and Industry told Senators that due to the Covid-19, trade between Rwanda and other EAC partner states decreased by 8 percent from $589 million in 2029 to $544 million in 2020. “The reality is that Covid-19 will be with us for a much longer time than earlier anticipated. The impact of the pandemic on EAC Partner States’ economies has been devastating, to say the least,” Mohamed observed. On economic performance and outlook, Mohamed said that the economic growth in the EAC region averaged 2.3 percent in 2020 compared to the average of 5.4 percent in 2019. But, he said, the growth in the EAC region is expected to recover in 2021, reflecting a resumption of global economic activity with the easing of containment measures and sustained implementation of growth-supporting measures. During 2021/2022, he said, the Community will focus on key priority areas, including private sector development; peace and security; health/Covid-19 Response; trade development; infrastructure development; EAC digitalisation agenda; and expansion of membership to EAC. Allocations and sources of funding Out of this amount, over $54.1 million (59 percent) will be contributed equally by Partner States or raised as other internal revenues and $37.6 million (41 percent) is expected to be sourced from the Development Partners. The budget is allocated to the Organs and Institutions of the EAC, including EAC-Secretariat with the biggest share of $43.8 million; East African Legislative Assembly getting $15.4 million; and the East African Court of Justice, receiving $3.7 million. Others are Lake Victoria Basin Commission, allocated $8.1 million; East Africa Kiswahili Commission, $1.2 million; East Africa Health Research Commission, $1.8 million; The Inter University Council for East Africa, $11.1 million; and Lake Victoria Fisheries Organisation, $3.6 million. The Secretariat plans to undertake activities to mobilise resources for the implementation of the 6th EAC Development Strategy and the Regional Covid-19 Recovery Plan. He added that it will develop Resource Mobilisation instruments and donor coordination mechanisms, including the finalisation of the required documents for the establishment of the EAC Development Fund (EACDF). Moreover, he said, the Secretariat will continue implementing multinational road projects linking Partner States and the Phase II of One Stop Border Post (OSBP) programme including the design, construction and operationalisation of 12 new prioritised OSBPs within the EAC region. For EALA, in 2021/2022, it will prioritise enactment of the Bills which are under consideration by its Standing Committees (the EAC Integrity and Anti-Corruption Bill, 2020, the East African Community Pharmaceuticals Bill, 2020; the EAC Sexual Reproductive Health Rights Bill, 2021 and the EAC Livestock Bill, 2021). It will also oversee the implementation of EAC Covid-19 Recovery Plan and continued sensitization of the people to support the integration process. EALA MPs are expected to debate on the submitted budget estimates on June 29.
