EAC Seeks To Cut Down On Donor Dependence

East African Community Affairs Minister Shem Bageine
East African Community Affairs Minister Shem Bageine

The East African Community (EAC) is considering sustainable financing of the five-nation body to reduce donor dependence.

The EAC has been deliberating on alternative mechanisms of financing to ensure timely remitting of funds to the Secretariat by the partner states.

Shem Bageine, the Minister of State for East African Affairs, says late remittances and reliance on donors affects service delivery by EAC organs and institutions in their respective mandates.

Bageine explains that some partner states had proposed that 20 percent of the budget is funded by equal contribution, while 80 percent is financed by a percentage on the value of imports from outside the community.

Lawrence Mujuni, the Director East African Affairs, says the five Presidents of Kenya, Uganda, Rwanda, Burundi and Tanzania said they need to look at all mechanisms for feasible funding. According to Mujuni the other options to be tabled before the November summit include taxing air tickets and maintaining the 20-20 status quo.

The other is ensuring each country contributes depending on its financial capability to ensure each member state feels part and partial of the community.

This means that each country would contribute  one percent of its import levy which would be in the order of the least to the most earning country that is, Burundi, Rwanda, Uganda, Tanzania and then Kenya paying more.

Currently the EAC is receiving 68 percent of 137 million US Dollars in donor contribution.
Equivalent of 220 billion shillings, the EAC Budget serves the five countries with a population of over 130 million people.

The estimates for 2013/2014 financial year stand at 130.4 Million US Dollars.

The budget is allocated to the Organs and Institutions of the EAC which include the East African Community Secretariat based in Arusha that takes 69.7 million Dollars. Others are East African Legislative Assembly which is allocated over 13 million dollars, East African Court of Justice which takes over 4.2 million dollars and Lake Victoria Basin Commission with a budget of over 30.8 million dollars.  Inter-University Council for East Africa takes 9.6 million dollars, while Lake Victoria Fisheries Organisation gets 3.2 million US Dollars.

1 thought on “EAC Seeks To Cut Down On Donor Dependence

  1. The East African Community demands and wishes are fake and cannot be actuated in as long as Museveni remains President of Uganda.Kick Museveni out of Power technically and all plans shall be realized and peace obtained in the East African community.

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