The
Minister for EAC Affairs, Hon Shem Bageine holds the Budget Speech aloft
at the start of the proceedings earlier today. He is flanked by the
Minister for EAC Burundi, Hon Leontine Nzeyimana, Hon Dr. Abdallah
Sadala Abdallah, Deputy Minister for EAC, United Republic of Tanzania
and the Counsel to the Community, Hon Wilbert Kaahwa. On extreme right
is the Clerk to the Assembly, Mr. Kenneth Madete.
the Deputy Minister for EAC, United Republic of Tanzania Dr. Abdallah Sadala Abdallah delivers the Budget Speech.
The
EAC Council of Ministers today presented Budget estimates for the
Financial Year 2014/2015 totalling $124,069,695 to the East African
Legislative Assembly sitting in Arusha. Hon Dr. Abdallah Sadala
Abdallah, Deputy Minister for EAC, United Republic of Tanzania,
presented the Budget Speech on behalf of the Chair of the EAC Council of
Ministers, Hon Phyllis J. Kandie to an attentive House.
The
2014/2015 Budget down from $130 Million in the previous Financial Year,
prioritizes operationalisation of the single Customs Territory including
the setting up of an institutional framework to manage it, the full
implementation of the EAC Common Market Protocol with particular focus
on free movement of goods, services, labour and capital as well as the
implementation of the EAC Industrialisation policy.
Other
key areas include development of cross-border infrastructure with
particular focus on implementing decisions of the Summit Retreat,
implementation of the roadmap towards the EAC Monetary Union,
implementation of the Tripartite Free Trade Area (COMESA-EAC-SADC) and
the sensitisation of East Africans towards deepened East Africa
integration.
Other
areas are the implementation of the EAC Strategy on Regional Peace and
Security and the implementation of activities under the Political
Federation division.
The
Budget is allocated to the Organs and Institutions of the EAC as
follows; East African Community Secretariat ($76,074,052), East African
Legislative Assembly ($15,489,836) and the East African Court of Justice
($4,582,190).
The
Inter-University Council for East Africa shall receive ($ 9,411,320),
Lake Victoria Basin Commission ($ 13,372,466) while $ 2,813,771 is
earmarked for the Lake Victoria Fisheries Organisation. For the first
time, three new Institutions are also set to benefit. East African
Science and Technology Commission shall receive ($ 679,821), East
African Kiswahili Commission ($ 722,102) and the East African Health
Research Commission ($ 924,067).
The FY
2014/2014 Budget is to be financed by Partner State contributions
through the Ministries of EAC ($41,890,538); Partner States through
other agencies ($5,067,735); Development Partners support ($73,180,446);
IUCEA-Member University ($ 375,190) Ministry of Education-IUCEA
Headquarters $1,247,037), General Reserve ($ 2,102,828) and other income
($205,850).
Hon
Dr Abdallah highlighted a number of achievements registered in the FY
2013/2014, notably the commencement of the Single Customs Territory
which has led to among others, the significant reduction of clearance
time from Mombasa to Kampala and Kigali.
Hon
Dr. Abdallah noted that the EAC Secretariat had developed a Special
Economic Zone policy as envisaged under Articles 75 and 76 to boost
trade and remarked that substantial progress had been made with regards
to the finalisation of the EAC-Economic Partnership Agreements (EPA)
Negotiations.
On the
Common Market, the Chair remarked that the EAC Common Market Scorecard
2014 launched in February 2014 was a key tool in the implementation of
the Protocol.
‘The
Scorecard should be able to assist Partner States to identify areas of
slow or limited progress and foster stronger peer learning to accelerate
its implementation’ the Minister said. He remarked that further
amendments of the national laws to conform to the Common Market Protocol
were envisaged for the next Financial Year. He noted that the Council
of Ministers intends to introduce a Bill to the EALA to deal with
challenges been witnessed with regards to implementation of the
Protocol.
The
Minister noted that the move towards deeper economic integration had
gained impetus with the signing of the Monetary Union Protocol on
November 30th, 2013. Minister Abdallah remarked that the EAC was
gearing itself to the harmonisation of budget processes, harmonisation
of tax policies, co-ordination of public debt management and the
attainment of macro-economic convergence among others. He informed the
House that the region would embark on the procurement, installation and
implementation of the Capital Markets infrastructure as one of the key
priorities for the next Financial Year.
Under
Infrastructure development, the Minister noted the on-going works
especially on the Northern Corridor. They include the
Arusha-Holili/Taveta-Voi road project and the Malindi-Mombasa-Lunga
Lunga and Tanga-Bagamoyo road which is on schedule to be completed by
June 2014.
The
African Development Bank, Hon Dr Abdallah, states, has also agreed to
support the Lusahunga-Rusumo and Kayonza- Kigali road and the
Nyakanazi-Kasulu-Manyovu and Rumonge-Bujumbura road. In the railways
subsector, the Secretariat received about USD 1.7 Million from the
African Development Bank for the Railways Sector Enhancement project
while a baseline study on the maritime subsector is almost complete.
The
Minister noted a number of initiatives in the civil aviation sub-sector
aimed at sustainability of the lower EAC Airspace. In the productive
sectors, the Minister revealed the steady progress towards the
establishment of the East Africa Centre for Renewable Energy and Energy
Efficiency which he reported aims at providing a platform for
sustainable energy in the region.
The
implementation of the 16 megawatt Kikagati-Murongo hydropower project
is however yet to fully take-off despite the interest of the Private
Sector. In light of this aspect, Hon Dr Abdallah urged the United
Republic of Tanzania and Republic of Uganda to expedite the bilateral
agreement on the project to pave way for its implementation.
On
industrialization and Small and Medium Enterprise Development (SMEs),
the Minister was categorical that both areas are critical areas that
spur development in the region. He further noted that the region had
finalised the review of legal and regulatory frameworks for mineral
value addition in the region.
The
Mineral policy shall focus on priority minerals including iron ore, coal
and nickel-cobalt-copper among others. On environmental matters, the
Minister noted that the region was committed to ratifying the Protocol
on Environmental and Natural Resources. So far according to Hon Dr.
Abdallah, the Republic of Uganda and the Republic of Kenya have ratified
the Protocol.
Minister
Dr.Abdallah thus reiterated the EAC’s desire to institutionalise joint
participation in International Conventions and Treaties on Environment
and Natural Resources.
‘To
implement the outcome of the Rio Summit on sustainable development: The
Future We Want, we developed an EAC Post-Rio+20 Plan of Action with
support from United Nation Development Programme (UNDP). Furthermore,
EAC was accredited as an Observer to the United Nations Convention on
Biological Diversity and the United Nations Framework Convention on
Climate Change’, the Minister said.
On
tourism, the Minister was emphatic that the single tourism visa would
play a key role in promoting the key sector.‘ Madam Speaker, the
Community continues to promote EAC as a Single Tourist Destination
abroad and regionally. This has been achieved by participating at the
World Travel Market in London in November, 2013 and the International
Tourism Fair in Berlin in March 2014’ he said.
He
informed the August House that Partner States had agreed under the
Principle of Variable Geometry to begin using the East African Tourist
Visa.
‘The
Republics of Kenya, Rwanda and Uganda launched the initiative in
February this year. The Republic of Burundi and the United Republic of
Tanzania are expected to come on board as soon as they are ready’, he
added.
The
Minister termed some of the successes in the health sector in 2013/14 as
the facilitation of the 5th and 6th EAC Regional Inter-Parliamentary
Forum on Health Population and Development and support to the United
Republic of Tanzania to track both on and off budget for reproductive
maternal new-born and child Health.
He
remarked that key achievements had been realised in legislation,
policies and strategies revolving on sexual reproductive health and
rights. The key priorities for the Financial year 2014/2015 include
facilitation of the Partner States to implement the HIV and AIDS Legal
and policy reform, and review the development of the second EAC
Multisectoral Strategic Plan for HIV and AIDS, TB and STIs, 2015-2020.
The
Minister elaborated some of the achievements in the education sector as
the development of strategies towards harmonization of education systems
and training curricula and the completion of rules and guidelines
leading to the harmonization of the EAC Examinations and Assessments.
He
noted that in a bid to operationalize the East African Science and
Technology Commission (EASTECO), negotiations of the Headquarters
Agreement between the EAC Secretariat and the Republic of Rwanda for
hosting the Commission were concluded in October 2013 and the
Headquarters Agreement signed in April 2014.
On
immigration and labour, the Minister informed the House the region had
remained focused on the internationalization of the New Generation
e-East African Passport to take effect by November 2015.
‘I am
happy to report that Partner States have commenced implementing the
roadmap by incorporating the required budget proposals in the 2014/2015
FY for the procurement of the required infrastructure and the
Passport booklets. The budget support for this subsector during the FY
2014/2015 will therefore focus on the implementation of the roadmap to
facilitate the launch of the New e-passport by November 2015’, Hon Dr
Abdallah remarked.
On the
Political Federation, the Minister denoted remarkable progress as
having been realised. He informed the House that a draft model of the
structure of the EAC Political Federation was considered by the Summit
of the EAC Heads of State and that national consultations of the model
were conducted in all Partner States to enrich and improve the
structure.
He
however said that finalisation and signing of the draft Protocol on Good
Governance and the Protocol on Preventing and Combating Corruption had
been very slow. Other areas of intervention include the adoption of
the Plan of Action on promoting and protecting human rights due for
consideration and the EAC Bill of Human Rights currently undergoing
assent.
The
Minister affirmed that mobilisation, sensitisation and outreach
targeting stakeholders in their diversity shall be the core of the work
of the Community. In this regard, the 3rd EAC Annual debate for
University students is slated for September 2014.
The
initiative seeks to create a critical mass of students’ ambassadors to
advocate for EAC integration among their peers. Plans are underway to
hold the 5th EAC Conference on Good Governance as well as the EAC
Dialogue on Political Integration. These events are effective in
informing and sensitising stakeholders on political integration.
On the
global outlook, the Minister stated that the region is projected to
expand to 5.5% in 2014, up from 4.9% in 2013. The Minister however
reported of a significant drop in inflation from 8% in 2012 to 6.3%
aided by monetary policy tightening and lower food prices associated
with a recovery in local food production.
“Against
this backdrop, global economic recovery is expected to improve in 2014,
according to the IMF’s April 2014 World Economic Outlook. World output
growth is forecast to strengthen from 3.0 percent to 3.6 percent in
2014”, Hon. Dr. Abdallah stated.
“Domestic
factors will continue to drive Sub-Saharan Africa's long-term trend
growth. East African economies are expected to pick up in 2014, riding
on a strong performance expected in the agricultural, mining and energy
sectors; and easing inflation across the region” he added.