Tanzania diminishes chances of regional integration
By Business in Focus, August 21, 2007
On 20/08/2007, after the 6th ordinary session of the EAC Heads of State, I waited with bated breath for the announcement of a fully integrated East African Economic Union, a union redeemed from the fear and suspicion that previosuly led to breakup.
To my dismay, the same structural failings and issues that necessitated the first collapse still exist. During the first collapse it was easy to blame ideological differences between Tanzania and the rest of the East African Community since the latter was socialist while the former shared capitalistic ideologies. This aside, the real reasons as time came to reveal was the fear that Kenya dominated the rest of the community.
Following the collapse of the EAC and prior to the recent haphazard re-integration, arose the Common Markets for East and Southern Africa (COMESA ) the only remaining workable regional organisation that Kenya, Uganda and Tanzania had in common. This was until Tanzania opted out again to join South African Development Cooperation (SADC) , allying itself to what is clearly a grouping for Southern African countries.
This move, perhaps inoccuous has had varied ramifications. Within the past three years projects that would span the whole of East Africa have been marred with confusion due to differences between the states. For example Kenya had to opt out of Eassy project (East Africa Sub Marine System) a cables project that would have considerably lowered the cost of fibre communication in the region. Word was that South Africa was employing underhand tactics as far as ownership of the cables project was concerned, which developments caused Kenya to initiate a parallel project; TEAMS (The East Africa Marine System) to replace Eassy. As a member of SADC, Tanzania occupies an unenviable position in this regard, especially as although she is seen as siding with South Africa in SADC, she has not the clout that would make a difference in the southern group at all.
The meeting lasted several hours, and after what must have been intense haggling, the leaders emerged to announce failure to secure a smooth predictable transition to regional integration. However, of all the countries; Kenya, Uganda, Tanzania, Rwanda and Burundi, it is Tanzania that had the greatest objections to the speedy integration of the region. One major extenuation given was that Kenya would dominate the resultant economy. As a face-saving gesture, Tanzania agreed ,though apprehensively, to a Common Market, Union and currency by the year 2012. During this meeting, the rest of the East African states were categorical that they wanted a more expeditious integration of the different economies while Tanzania opted for a step-wise approach. This is understandable and has indeed been a constant refrain of many East Africans. Still many wonder, given her doubts ,is it Tanzania or is the thought of a formidable East African Region unworkable?
When Tanzania first ditched COMESA for SADC it gave what were seen as valid reasons as to why it made the move. Fast tracking to the present time and the very same country still has issues with the East African Community with the majority of its concerns relating to economic and political competition(again).
Granted, Kenya still dominates the region's economy and has been able to maintain this even in the absence of East African Federation. But it is not true to say that Kenya would benefit the most from the union. The uniform trade platform that would have been created to replace the current regime, would have boosted trade and promoted business and new jobs across the region.
Like in any union, there are teething problems and the peculiar concerns of individual members to address. Still, if as is becoming clear 4 out of 5 would be members of an East Africa federation are willing to go ahead with an economic union, why be precluded by Tanzania whose priorities are clearly obscured?
On 20/08/2007, after the 6th ordinary session of the EAC Heads of State, I waited with bated breath for the announcement of a fully integrated East African Economic Union, a union redeemed from the fear and suspicion that previosuly led to breakup.
To my dismay, the same structural failings and issues that necessitated the first collapse still exist. During the first collapse it was easy to blame ideological differences between Tanzania and the rest of the East African Community since the latter was socialist while the former shared capitalistic ideologies. This aside, the real reasons as time came to reveal was the fear that Kenya dominated the rest of the community.
Following the collapse of the EAC and prior to the recent haphazard re-integration, arose the Common Markets for East and Southern Africa (COMESA ) the only remaining workable regional organisation that Kenya, Uganda and Tanzania had in common. This was until Tanzania opted out again to join South African Development Cooperation (SADC) , allying itself to what is clearly a grouping for Southern African countries.
This move, perhaps inoccuous has had varied ramifications. Within the past three years projects that would span the whole of East Africa have been marred with confusion due to differences between the states. For example Kenya had to opt out of Eassy project (East Africa Sub Marine System) a cables project that would have considerably lowered the cost of fibre communication in the region. Word was that South Africa was employing underhand tactics as far as ownership of the cables project was concerned, which developments caused Kenya to initiate a parallel project; TEAMS (The East Africa Marine System) to replace Eassy. As a member of SADC, Tanzania occupies an unenviable position in this regard, especially as although she is seen as siding with South Africa in SADC, she has not the clout that would make a difference in the southern group at all.
The meeting lasted several hours, and after what must have been intense haggling, the leaders emerged to announce failure to secure a smooth predictable transition to regional integration. However, of all the countries; Kenya, Uganda, Tanzania, Rwanda and Burundi, it is Tanzania that had the greatest objections to the speedy integration of the region. One major extenuation given was that Kenya would dominate the resultant economy. As a face-saving gesture, Tanzania agreed ,though apprehensively, to a Common Market, Union and currency by the year 2012. During this meeting, the rest of the East African states were categorical that they wanted a more expeditious integration of the different economies while Tanzania opted for a step-wise approach. This is understandable and has indeed been a constant refrain of many East Africans. Still many wonder, given her doubts ,is it Tanzania or is the thought of a formidable East African Region unworkable?
When Tanzania first ditched COMESA for SADC it gave what were seen as valid reasons as to why it made the move. Fast tracking to the present time and the very same country still has issues with the East African Community with the majority of its concerns relating to economic and political competition(again).
Granted, Kenya still dominates the region's economy and has been able to maintain this even in the absence of East African Federation. But it is not true to say that Kenya would benefit the most from the union. The uniform trade platform that would have been created to replace the current regime, would have boosted trade and promoted business and new jobs across the region.
Like in any union, there are teething problems and the peculiar concerns of individual members to address. Still, if as is becoming clear 4 out of 5 would be members of an East Africa federation are willing to go ahead with an economic union, why be precluded by Tanzania whose priorities are clearly obscured?
