‘Frosty’ East Africa ties worry businesses

EABC executive director Peter Mathuki. Photo|File

What you need to know:

Uncertainty over the recently postponed summit, frosty relations among the partner states and slow down of intra-regional trade are worrying signals on the future of regional integration.

Arusha. The East African Business Council (EABC) has voiced its concern about what it says are frosty relations among some East African Community (EAC) member states.

The apex body of private sector associations in the region fears that this could eventually deal a fatal blow to cross-border trade.

“Differences among the partner states should be sorted out before they impact our trade or investment relations,” EABC executive director Peter Mathuki told The Citizen yesterday.

He cited the recently cancelled summit of regional leaders and uncertainty surrounding the one planned for December 27 as among “bad signs” for the EAC.

“You can’t invest or trade where there is uncertainty,” he said, adding that recent developments in the region may already have had an adverse effect on the flow of people and goods. Mr Mathuki appealed to the leaders of the six EAC member states to urgently address emerging political differences among the countries “for the benefit of the welfare of the people of East Africa and business prosperity”.

He added that the absence of one country from the summit should not be allowed to paralyse business in the region.

Mr Mathuki, a former Kenyan member of the East African Legislative Assembly, urged regional leaders to ensure that the summit scheduled for December 27 in Arusha is not postponed again as it would set another “bad precedent” in the region.

What would have been the 20th summit did not take place on November 30 as initially planned after Burundi refused to attend.

Fears of another cancellation linger despite Bujumbura having confirmed its attendance in the December 27 summit.

The EAC Secretariat had by yesterday not officially confirmed whether the meeting would take place as scheduled amid reports that some key officials who had initially been directed to remain in Arusha have been told to proceed on their year-end leaves.

Mr Mathuki called on the EAC and its organs to put in place mechanisms to resolve differences or disputes through the use of eminent people in the region such as retired presidents.

“We must live with one another, accommodate each other and dialogue not only to resolve differences, but also to support and enable the private sector play its rightful role,” he said.

A business consultant, Mr Simon Mapolu, said cancellation of EAC summits should not be taken lightly.

“The Summit is the EAC’s apex decision-making organ. If it doesn’t meet, no critical decision regarding development of the bloc can be made,” he said in telephone interview.

Mr Moses Adam, president of Friends of East Africa, a lobby group based in Arusha, said millions of shillings in taxpayers’ money had been squandered through the postponement of the 20th summit.