Creating a conducive business environment will be top on the priority list of the new East African Community Secretary-General Peter Mathuki.
Dr Mathuki said this will be achieved by eliminating non-tariff barriers, adopting business-friendly legal regimes and fast-tracking the Common External Tariff.
“I firmly believe that we cannot attain a sustainable regional integration, if partner states do not urgently remove non-tariff barriers and other inconsistent laws that frustrate intraregional trade and investments,” Mathuki said at the handover ceremony in Arusha on Friday.
“I look forward to facilitating the operationalisation of the amended EAC Elimination of Non-Tariff Barriers Act and the EAC Trade Remedies Committee to handle trade disputes in the region.”
He said the finalisation of the comprehensive review of the EAC CET and its uniform application in the bloc is long overdue, “hence I will be keen to fast-track the process by end of this year.”
There was an air of optimism and hope at the Secretariat when the bloc’s sixth secretary-general took over office.
The Kenyan private sector veteran, who will serve for a five-year, non-renewable term from April 25, took over from Burundian Liberat Mfumukeko, who is moving to the World Bank as IDA Borrowers’ Representative and Co-chair for the Africa Group1, which comprises 22 countries, including EAC partner states.
IDA is the World Bank’s arm that helps the world’s 74 poorest countries to reduce poverty by providing zero to low-interest loans dubbed credits as well as grants for programmes that boost economic growth, reduce inequalities, and improve people’s living conditions.
Swearing in
Mathuki was sworn in at State House Nairobi on February 27, in a virtual ceremony conducted by the East African Court of Justice Registrar Yufnalis Okubo and Kenya’s Head of Public Service Joseph Kinyua, in the presence of President Uhuru Kenyatta.
Mathuki faces a huge task of rebuilding confidence among the EAC stakeholders including partner states and donors.
Apart from breaking trade barriers he pledged to mend fences, seek investments, and unleash the potential of the region as the preferred destination for free movement of goods and services.
“Today marks a new dawn for our Community, a bloc to which so many East Africans and the rest of Africa look up to with pride and for inspiration,” said Mathuki.
Apart from the uncoordinated regional approach to the Covid-19 pandemic, the region is up against a reduced intra-EAC trade and high rates of unemployment and underemployment.
“Intraregional trade volumes in the EAC have dropped to between 30 and 40 per cent in the past three months.
This can be attributed to the restrictions imposed on the movement of cargo trucks from the ports of Mombasa and Dar es Salaam to Malaba, Busia, Mutukula, Rusumo and other border points within the community,” said Kenneth Bagamuhunda, EAC Director-General for Customs and Trade.
Mathuki, a former CEO of the East African Business Council, noted that the Covid-19 pandemic has disrupted livelihoods and impacted economic growth in the region and pledged to work with all stakeholders on economic recovery and job creation. “Given the disruption seen in the global supply chain, it is the opportune time to develop our own capacity in production of vaccines, therapeutics and diagnostics that are affordable and that meet the required global standards,” he said.
He urged the EAC Council of Ministers chaired by Kenya’s EAC Cabinet Secretary Adan Mohamed to provide guidance in resolving the pending issues with the regional members of parliament.
Non-payment of allowance
The EALA MPs have protested the non-payment of sitting allowances, which led to a budget stalemate last year.
“Given the role bestowed on the private sector by the EAC Treaty of anchoring the realisation of the Community’s aspirations, I intend to go the extra mile to improve the working relationship between policy makers and the business community, through public-private sector dialogue initiatives,” he explained.
“I firmly believe that an enhanced conducive regional business policy environment that takes into account proposals and recommendations from the business and private sector will build confidence in the region as an attractive investment destination and trade hub.”
On donor funding, he promised to ensure transparency and accountability in the use of donor funds at the Community. During the last EAC summit, the heads of state directed the Secretariat to speed up the admission of the DRC into the EAC.
“As the 21st Summit directed, the admission of Democratic Republic of Congo is urgent and strategic to the region and therefore I will prioritise the admission process,” he said.
Before his appointment on April 26, 2016, Mr Mfumukeko was the EAC Deputy Secretary General in charge of Finance and Administration for about one year.
