STATE OF THE EAC ADDRESS

BY H.E. JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA AND CHAIRPERSON OF THE SUMMIT OF THE EAC HEADS OF STATE TO THE 5TH MEETING OF THE 3RD SESSION OF THE 3RD EAST AFRICAN LEGISLATIVE ASSEMBLY

CHAMBER OF THE NATIONAL ASSEMBLY, BUJUMBURA, BURUNDI

17TH MARCH 2015 Rt Hon. Speaker of the East African Legislative Assembly;

Rt. Hon. Pierre Claver Ntavyohanyuma, Speaker of Burundi Parliament;

Honourable Chairperson of the Council of Ministers;

Secretary General of the East African Community;

Honourable Members of the East African Legislative Assembly;

Distinguished Guests;

Ladies and Gentlemen,I thank you, Rt. Hon. Speaker, for inviting me to address this august East African Legislative Assembly (EALA) on the State of the East African Community. I also thank the Speaker of the Burundi Parliament Rt. Hon. Pierre Claver Ntavyohanyuma for the warm words of welcome and for the gracious hospitality in allowing the EALA to use this historic Chamber of his Parliament.Mr. Speaker,

I applaud and congratulate you for the wise decision of instituting the annual State of the East African Community Address to be made by the seating Chairman of the Assembly of Heads of States of the East African Community Partner States. I am here today because of that noble decision of yours and I pray that this tradition is maintained. It is also gratifying to note that the Annual State of EAC Address is proving useful and effective in advancing the projects and programmes of the Community.

Mr. Speaker,

The East African Community is a vibrant and very strong regional integration organization. It is ever growing from strength to strength with each passing year. Thanks to the commitment and steadfastness of the people of East Africa, their governments and, we, their leaders including you, Members of the East African Legislative Assembly, for the lofty gains made so far. I look to the future of our Community with a great sense of optimism for even greater successes.

On a light note, I am glad to be here today, this is my last State of the EAC Address to you and the people of East Africa. As you are aware, my term as the President of the United Republic of Tanzania comes to an end in October this year. I am happy that I will leave the EAC a better place than it was when we revived it. Why do I say so? It is at this point that I would like to highlight the State of Affairs of our integration agenda today in terms of progress in the implementation of the planned projects and programmes.

Indeed, several major regional programmes and projects were planned to be implemented during this period but kindly allow me to only dwell on a selected few that have given dividend to the ordinary citizens of East Africa and are imbedded in our 4th EAC Development Strategy (2011 to 2016).

The Single EAC Customs Territory

Pursuant to our Directive to the effect that the Community commences the implementation of the Single Customs Territory (SCT) on 1st January 2014 and finalization of the operational instruments by 30th June 2014, I am happy to report that pilot tests for clearance of goods under the Single Customs Territory commenced in February and August 2014 on the Northern and Central corridors respectively. Operational instruments, namely SCT Operational Manual, enforcement and compliance framework, ICT Interconnectivity Solutions and capacity building and change management framework for the SCT were developed and now all the five Partner States have embraced and are implementing the Single Customs Territory.

Economic GrowthThe EAC total trade with the rest of the world maintained an upward trend by posting a growth rate of 8.3 percent in 2013 compared to what was recorded in 2012. On the investment front, the Foreign Direct Investment (FDI) to EAC increased by 6.6 percent to US$ 3.7 billion in 2013 compared to what was recorded in 2012. This increase was mainly driven by developments in the oil and sectors in Kenya, Tanzania and Uganda.The FDI inflows to the Community increased by 6.6 percent to US$ 3.7 billion in 2013. Uganda and Tanzania recorded relatively high inflows due to developments in the Oil and Gas sector. On the Intra-EAC investment flows side, the total value increased by 9.8 percent to US$ 236.6 million in 2013 from US$ 215.4 million recorded in 2012. Kenya remained the main source of intra-EAC investment while Uganda was the major destination. In line with the increase in the value of investment flows, the number of projects increased to 70 projects in 2013 from 53 projects recorded in 2012.

The number of jobs created through licensed FDI projects in the EAC region increased by 24.9 percent to 131,967 jobs in 2013 from 105, 618 jobs recorded in 2012. New investment opportunities are emerging in the EAC region especially in the Oil and Gas sector. Further, infrastructural developments in the region especially with the expanding road networks and the new developments in putting up the standard gauge railway continue to open up the region and position it as the preferred hub for FDI. Lastly, the regions financial sector has opened up faster movement of money within the region and globally which has encouraged cash flows especially for FDIs and large multinational corporations that have established and are operating within the EAC region.

In the recent past two years, we have seen some of the most well established industries like Eveready and Cadbury shift base from the region to other parts of Africa sighting unfavourable costs of doing business within our bloc. This is a clear indication that we have to put in place the still have a long way to go in providing conducive political and economic reforms towards making the region more attractive and competitive including providing an efficient transport infrastructure, cheap and reliable energy.

COMESA-EAC-SADC Tripartite Free Trade AreaNotable progress was also made in the Tripartite Free Trade Area negotiations that will result in the establishment of an integrated market of the 26 countries, with a combined population of almost 600 million people (57% of the AU population); total Gross Domestic Product of about US$1 trillion (58% the continents GDP); half of the African Union (AU) in terms of membership. The Tripartite Free Trade Agreement has been finalized and is expected to be signed at the 3rd Tripartite Summit in early 2015. We as a Community should be ready to utilize the massive opportunities that will come with this Continental Free Trade Area that is expected in 2017.

EAC-EU EPA NegotiationsThe EAC and EU concluded the EPA negotiations and initialed the EPA Text on 14th October 2014 in Brussels, Belgium. With this framework in place, the region is able to access EU markets and vice versa at mutually beneficial principles.

Protocol on the Establishment of the East African Monetary UnionThe EAMU Protocol that we signed in November 2013, has been ratified by all the Partner States. The ratification now paves the way for preparing draft Bills for the establishment of the institutions necessary for implementation of EAMU, specifically the EAC Monetary Institute and the EAC Statistics Bureau and the subsequent submission to this august Assembly.

Infrastructure Developments

Infrastructure in the East Africa is inherently connected to our economic growth. In November last year, we held our 3rd Retreat on Infrastructure Development and Financing in Nairobi and we took note of the 10-year Infrastructure Investment and Resource Mobilization Strategy as well as the Intermodal Transport Strategy.

The current rapid urbanization and industrialization, taking place in our region, are pushing high the demand for electricity. In fact the demand in East Africa is expected to grow at approximately 5.3 percent per year until 2020. To meet these requirements, generation capacity will have to increase by 37.7 percent in Uganda, 96.4 percent in Kenya, 75.3 percent in Tanzania and 115 percent in Rwanda.

I would like to commend those Partner States who have initiated grand power projects for example the Republic of Kenya for commissioning the Olkaria IV power plant, the worlds largest single turbine geothermal power plant, which is expected to add 140-MW to the regional electricity grid. The project is viewed as a major boon for development initiatives and poverty reduction in the EAC Region and is anticipated to reduce electricity costs in the Kenya by 50% by early 2015.

The construction of the 250-MW Bujagali hydropower plant in Uganda under His Excellency President Museveni is a clear demonstration that large-scale private power infrastructure projects can be built successfully in Africa.

The Vehicle Load Control Bill (2012) that was enacted by East African Legislative Assembly in May 2013 has been assented to by almost all the Partner states. The Secretariat has commenced the development of regulations to support the implementation of the Act once fully assented to. The One Stop Border Post Bill, enacted in March 2013, is awaiting assent by the Heads of State.

Our Transport Corridors have gained the due attention they deserve. To address regional infrastructure challenges, COMESA-EAC-SADC are now jointly working on mobilizing resources for the development of the major transport corridors in the region. The corridors include the North-South Corridor linking the port of Dar-es-Salaam and the port of Durban; the Northern Corridor linking the Mombasa Port with Uganda, Rwanda, Burundi and Eastern DRC; and the Central Corridor linking Dar- es-Salaam Port with Uganda, Rwanda, Burundi and Eastern DRC.

For the first time in over thirty years, a new Corridor is also under development linking the new Port at Lamu with Juba in Southern Sudan and Addis Ababa in Ethiopia.

Political Federation

The ultimate aim of the East African Community regional integration process is the attainment of a Political Federation. In this regard, progress has been made towards initiating the process of drafting the Constitution for the East African Community Political Federation. The Summit has directed the Council of Ministers to finalize the national consultations on the model structure, road map, action plan and report progress to us at our next Summit.

Regional Peace and SecurityWhereas FDIs inflows to EAC region continued to grow, security threats and the threat of Ebola have remained apparent. I am however happy to report that both have now been adequately addressed by the respective governments. The region has reviewed and aligned the Regional Strategy for Peace and Security to the EAC Protocol on Peace and Security. In addition, the Summit has approved the modalities for the appointment of EAC Eminent Persons and Special Envoys, who will only be appointed whenever need arises.

In fact we have noted the urgent need to upscale the implementation of the relevant counter measures and directives to address the current and emerging security threats in the region. In this regard, we have directed the Partner States to expedite implementation of the interventions contained in the revised strategy for regional peace and security as well as those in the counter terrorism strategy.

Situation in South Sudan

The situation in South Sudan is under control. I commend the work being done under the auspices of IGAD and also welcome the Agreement on the establishment of the Transitional Government of National Unity and also calling for immediate and permanent ceasefire signed on 1st February 2015 in Addis Ababa, Ethiopia by the two Parties in the conflict. The United Republic of Tanzania will continue to facilitate the re-unification process of the SPLM party and the people of South Sudan, who are yearning for peace to develop their young nation.

East African Legislative Assembly

I would like to acknowledge that the EALA faced turbulent and trying moments in its history last year. I am happy to note that the storm is over and now you have embarked on serious Community. Now that you have succesfully resolved the issues, it is now time to show the East African that you can deliver so that we can all quickly make our contribution to the integration agenda as mandated by the EAC Treaty.

That aside, it is gratifying to note that the Assembly passed three Bills last year, namely: the East African Community Appropriation Bill, 2014; the East African Community Supplementary Appropriation Bill (No. 1), 2014; and the East African Community Supplementary Appropriation Bill, (No. 2), 2014.

The East African Court of JusticeWe have signed the Protocol to operationalize the extended jurisdiction of the East African Court of Justice to cover trade and investment as well as matters associated with the implementation of the Protocol on the Establishment of the East African Monetary Union. Partner States are supposed to ratify this Protocol by 30th November 2015.

Institutions of the Community:

The Civil Aviation Safety and Security Oversight Agency

The Agency continued to meet the mandated requirements to develop, review and harmonize the Civil Aviation Safety and Security Regulations and related technical guidance materials for use by the industry. The amended harmonised Regulations and developed Technical Guidance Materials (TGMs) were submitted to Partner States for promulgation, adoption and publication.

The Lake Victoria Basin Commission

Key achievement registered by the Commission include; development and implementation of an Integrated Water Resources Management Plan; facilitation of capacity building of Lake Victoria Water and Sanitation (LVWATSAN) programme stakeholders; and establishment of wildlife clubs in 10 secondary school to advocate for anti-poaching of Elephants and Rhinos in Maasai Mara and Serengeti.

Lake Victoria Fisheries Organization

The Organization undertook key resource monitoring studies, catch assessment and hydro-acoustic surveys to provide scientific guidance to the management of the fisheries.

East African Development Bank

During the period under review, EADBs net worth increased by 14% from USD 166 million to USD 189 million. Non-performing loans were at a record low of 1.3% of the total portfolio of USD 114 million.

Elections/ Referendums

Mr. Speaker, this year is pretty busy for the Community. We will have a Referendum on the draft Constitution by your brothers and sisters in the United Republic of Tanzania on 30th April, and the General Elections in October. It is my sincere belief that the Citizens of the United Republic of Tanzania will take this very rare opportunity to adopt a Constitution for the people, by the people that will work towards making better the every day life of the citizens of Tanzania and East Africa as a whole.In this same year, we will have elections in the Republic of Burundi taking place from May.

I would like to commend the 44 Political Parties, and key leaders including ex-rebel Chiefs in Burundi who in June last year signed a Code of Conduct for free and peaceful elections in 2015 and promising to denounce, condemn and punish all forms of violence, both verbal and physical during the election period.

Tanzanias Commitment to Regional IntegrationMr. Speaker, the East African integration project gives concrete expression of the sentiments we share as East Africans, that we are one people and seek to free ourselves from the territorial imprisonment imposed on us by historical circumstances.

We know very well that the people of East Africa share a common history, language, culture, infrastructure and many other attributes. So, our coming together in an East African integration setting is the norm rather than the exception. This makes it easier for us to realize our aspirations of shared development. Our challenge is about how to reinforce this East African common identity and advantage within the vision of a fully integrated East Africa. A lot has been said about us Tanzania not taking a leading role in this partnership. But allow me to assure you that we in Tanzania are whole-heartedly committed to this project and we will play our part of the bargain as effectively as possible so as to ensure successful realization of the long-standing dream of a United East Africa.

Mr. Speaker, the people of Tanzania are happy with the process and the progress made so far of the East African cooperation and integration. Our desire is to see things move much faster and it is comforting to note that good things are already happening.

Conclusion

In concluding, let me reiterate that the EAC is today positioned to overcome many of the challenges that confront it and decisively move to a higher stage of integration. We need to be bold and resolute in our commitment and in our resolve.

Once again, I thank the Assembly for its contributions to the cause of East African unity and development and there is no doubt that with determination and consistency of purpose we shall overcome all obstacles and take our region to greater heights of achievement.

Finally, I must thank my Brother, H.E President Pierre Nkurunziza for the usual warm reception and hospitality accorded to me and my delegation since my arrival in this beatiful city of Bujumbura. We in the EAC wish him and the brotherly people of Burundi every best wishes and God speed in the forthcoming Elections.

Mr. Speaker,

I once again thank you for your invitation and wish you and esteemed Members of the East African Assembly well as you continue to serve the interests of the East African people.

I thank you for your kind attention!

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