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The East African Community is open to Industrialization

Posted on : Wednesday , 7th October 2015

 The East African Community is one of the most vibrant economic blocs on the African continent. With more than 150 million citizens, the five countries that make up the EAC, Rwanda, Kenya, Uganda, 

Burundi and Tanzania, are benefitting enormously from the integration brought about by the formation 
of the community. We have seen remarkable progress in achieving the objectives of the EAC – widening 
and deepening co-operation among Partner States in political, economic and social fields for the benefit of all 56 FLY OUR DREAM TO THE HEART OF AFRICA In the spirit of boosting tourism, the East African Tourist Visa was created, allowing tourists to travel between Rwanda, Uganda and Kenya with a Single Tourist Visa. From January 2014 to March 2015,Rwanda issued 2,924 East African Tourist Visas. 
In addition to easing travel between the three Partner States, 157 economic undertakings by Rwandans
Were established in the EAC Partner States from 2010–2014. During the same period, 401 economic undertakings of citizens from other Partner States were established in Rwanda. This shows Rwanda’s increasing competitiveness as an investment destination. In total, regional investments worth over $100 
million were injected into the Rwandan economy, providing employment opportunities to more than 2,500 Rwandans. This is testament to the benefits of regional integration. Despite Rwanda and the region’s progress in implementing EAC commitments, member states must keep working for the bloc to be more integrated and more competitive. The current status of the implementation of EAC commitments stands at 64.3%, which calls for proactive translation of commitments into actions. This will be achieved through 
the timely implementation of EAC commitments and by eliminating the remaining barriers that hinder the free movement of people, goods and services. As EAC Partner States, we also need to strengthen the 
manufacturing sector to reduce exportation of raw materials and establish strong regional value chain systems. This can be done by supporting the private sector to grow industries that employ the younger generation and promote competitiveness. Ultimately, the EAC should seek to connect with global value chains for increased competitiveness. To achieve this, the private sector should be an equal co-pilot with
governments because the level of integration we seek cannot be reached without being driven by the private sector. The business community should propose their priorities to policy makers for balanced and sustainable development. For example, the historic EAC-EU partnership is a call to the private sector to prepare for the opening up of one of the world’s largest markets. As our Heads of State emphasised, political will is the key to implementing the EAC integration agenda. We must view ourselves as East Africans and open up our borders and markets to take up the opportunities available in the region. The more we integrate, the more benefits we will gain than if we had simply worked on our own. Rwanda has tested and realised the benefits of integration. That is why we are working closely with all stakeholders in the market to eliminate existing barriers to trade and promote and encourage Rwandans to tap into the opportunities that exist within the community. We look forward to welcoming you to Rwanda and the East African Community and hope you enjoy your stay The Treaty establishing the East African Community 
was created in 1999 and requires the EAC to be people centred and private sector led. This means that a bottom  up approach that meets the needs and interests of citizens should drive EAC integration. By embracing this policy, Rwanda has seen first-hand the benefits that EAC integration has brought for our citizens and our businesses. Rwanda joined the EAC almost eight years ago and there is no question that
the country’s accession to the community has enhanced our economic development. While addressing the Regional Business Summit in Kigali in October 2014, President Paul Kagame said, “Rwanda has Benefited from the EAC’s large market, challenges have been shared and addressed together, benefits have come from many sources and Rwanda has been much better in the last seven years”. Some of the key achievements of the EAC include the implementation of the Customs Union and Common Market Protocols and increasing competitiveness in terms of the proactive implementation of EAC commitments. This progress has been crucial in boosting Rwanda’s economic development and the livelihoods of 
our citizens. Rwanda is now the most competitive economy in the region and third in Africa, according to the new 2014-2015 Global Competitiveness Index report. The ranking was due to a wide range of factors, including the ease of registering a business (it now only takes six hours), technology innovation, strong and dynamic institutions, zero tolerance to corruption, stability and security among others. 
In terms of the EAC Customs Union, Rwanda has removed non-tariff barriers that were in the form of 
roadblocks, weighbridges and other formalities. Working hours at our main border posts have also been extended. The Gatuna Border between Rwanda and Uganda now operates 24 hours a day, seven days a week. The Rusumo border with Tanzania now operates 16 hours a day,seven days a week and the Nemba border with Burundi operates 18 hours a day, seven days a week. The Cyanika and Kagitumba borders with Uganda are now both open 16 hours a day, seven days a week. The extending 
of operational hours has boosted trade and investment as well as encouraged more Rwandans to participate in cross border trade.The implementation of the Single Customs Territory has reduced transport days from 21 to 5 from Mombasa to Kigali and the cost of hiring a truck to transport cargo 
from Mombasa to Kigali has been reduced by about US $1,000, down to $4,200 in 2014 from $5,200 in 2010. Within the Central Corridor, cargo is expected to grow by 15% for the period 2014-2030. This corridor accounts for more than 60% of Rwanda’s incoming volumes of imports and is still the preferred route by importers. The initiative to improve the Central Corridor has a direct impact on transport costs, reducing of the cost of doing business in and with Rwanda.In line with the EAC Common Market agreement, factors of production including goods, services, labour and capital are now freely tradable in the region. This has reduced costs and increased opportunities for economies of scale for all businesses in EAC member countries. For trade and investment to grow, we knew that people needed to be able to move freely across borders. As a result, steps were taken to make it easier for EAC citizens to move throughout the community. Today, citizens of Rwanda, Uganda and Kenya can use their national IDs 
and student cards to travel freely by air and road. More EAC members are soon to come on board. The use of IDs and student cards has increased the free movement of people, which is an opportunity for Rwandans to learn from best practices in the region and continue to improve our competitiveness in an ever-expanding market.
 

Source : www.mineac.gov.rw

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