ENSURE FUNDING FOR EAC
The East African Community (EAC) Secretariat is contending with financial woes. To tackle the challenges, it will present its proposals to EAC Heads of State during their summit in Kampala next week.
An EAC official said on Thursday hinted that options of raising the money would include some countries contribute more funds than others. The danger with the proposal is that it may give some members a bigger say in the organisation.
Until last year, Tanzania, Uganda and Kenya preferred equal contribution arrangement while Burundi and Rwanda wanted differentiated contributions. Another option is to slap a 0.7 per cent levy on the value of dutiable imports from outside the bloc. This option is tricky as costs may be passed on to consumers. When he took the reins in 2016, EAC secretary general Liberat Mfumukeko underscored the need to revisit budgetary practices. Expenditure dropped by $12 million during the 2016/17 financial year. EAC had to cut costs as donor funding dwindled. Although the 2016/17 budget was 12 per cent higher than that of the previous year it is unclear whether contributions flowed smoothly. We call on EAC to find less painful, harmonious and sustainable ways of financing.
