Category: National News

East Africa Business Council visits Rwanda, Burundi targets DRC market.

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East Africa's apex business council EABC made a two day visit toRwanda September 11-12, 2006 where they signed a Memorandum of Understanding with Rwanda's Private Sector Federation.

EABC chairman Mr. Abid Alam said that the council is interested in reducing the cost of doing business; ensure the free movement of people and goods and the removal of tariff and non-tariff barriers. The EABC secretariat formed in 1997, is headquartered in Arusha, Tanzania.

The visit by the council was meant to prepare for a smooth entry into the EAC by Rwanda whose accession is due in November this year. Answering a question on possible safeguards against squabbles such as the ones that broke the EAC in the 1970s, Mr. Abid Alam said the EA community is private sector and people centric. It was hard for politicians to break the EAC once it took form he said, because the 'private sector would bond the community.'

One of the board Executives on the team, Mr Gideon Nasari of Twiga Industries in Tanzania, also told Business Daily that the negative economic policies that characterised the earlier EAC no longer existed. Tanzania in the 1970s pursued a commmanding heights economy; Kenya laisser faire capitalism; while Uganda under Idi Amin was also trying to indigenize her economy to a primitive bourgeois class, known then a Mafutamingis.

Tanzania has now liberalized her economy and is the number one destination for investment capital in East Africa. "East African economies are more aligned now that ever and with more uniformity of purpose," he said.

Uganda's investment representative Maggie Kigozi said it was much more exciting to market to larger investors about a market of 100 million rather than 27 million Ugandans. EABC is targeting the DRC market as well as Burundi. The latter is due to be allowed into the EAC with Rwanda.

Mr Abid Alam said the members in the private sector in different countries had differing positions on safeguarding industry in light of trade liberalization.This is likely to be the Achilles heel of the EABC council, as it tries to fight off companies or even states seeking uneccessary waivers for their industries. According to media reports it is already up in arms with a Dar es Salaam based textile company NIDA Textile Mills, over a proposed tax exemption worth US$18 million, about Frw 10 billion.

The EAC protocol provides for protectionism in special cases and for selective tax waivers to protect industry, but also seeks to create a level playing field for all players.

The EABC delegation also met President Paul Kagame september 12 who Mr.Alam said had emphasized the need to support EASSY the Submarine Cable network.

The EABC is beset with various problems including that of power for industries with most industries in the region now running on diesel thermal power. He said the 700 MGW Kivu methane gas project could be a rallying point for investors in the region.

By virtue of the MOU signed in Kigali between Rwanda's Private Sector federation will have full access to EABC services and has a mandate as the focal point for EABC business in the country and has the responsibility of winning at least 5 paying members per year for the next three years.First vice chaiman of RPSF Mr Faustin Kananura Mbundu signed on behalf of the federation.

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