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EAC: Rhetoric and reality 07-11
1. EAC: Rhetoric and reality For members of Economist Corporate Network July 2011
2. Economic integration: a global phenomenon Economic and monetary union Economic union Customs and monetary union Common market Customs union Multilateral free trade area
3. Context: a tangled web … SACU SADC COMESA ECCAS CEMAC EAC IGAD CEN-SAD UMA ECOWAS MRU WAMZ UEMOA LGA AFRICAN UNION CEPOL
4. … With a shared agenda African Economic Community SACU SADC COMESA ECCAS CEMAC IGAD CEN-SAD UMA ECOWAS MRU WAMZ UEMOA LGA AFRICAN UNION CEPOL EAC Abuja Treaty 1994 1999 2007 2017 2019 2023 2028 2034 Create missing blocs Strengthen intra-REC integration & harmonisation FTA & CU in each bloc Continental FTA & CU Continental Common Market Continental EMU & Parliament
5. EAC: pulling out the stops Abuja Treaty 1994 1999 2005 2007 2015 2023 2028 2034 Create missing blocs Strengthen intra-REC integration & harmonisation FTA & CU in each bloc Continental FTA & CU Continental Common Market Continental EMU & Parliament Kenya, Uganda, Tanzania sign EAC Treaty EAC Customs Union established Rwanda, Burundi join EAC 2010 EAC Common Market Protocol 2012 EAC Monetary Union? EAC Political Union?
6. To be, or NTB? Trains, ports & automobiles Core training Rules & regulations Honest is as honest does
7. Trains: grinding to a halt Required investment: RVR Required investment: TRL GDP per 100km 2 (millions) <10 10-100 100-1000 1000-5000 >5000 www.infrastructureafrica.org Railroad (millions of transport units/year) Not operating <0.5 0.5-1 1-2 >2
11. Roads A B C D E What counts: Eight 1,056 km $377m 23 16 17 37 E 57 6 36 45 D 84 9 48 44 C 94 11 36 40 B 97 13 34 50 A Paved Poor Fair Good Type (%) Condition (%)