EAC ministers fail to agree on financing model

Monday May 14 2018

The  East African Community Secretariat headquarters in Arusha, Tanzania. PHOTO | FILE

The East African Community Secretariat headquarters in Arusha, Tanzania. PHOTO | FILE 

By CHRISTABEL LIGAMI
More by this Author

The East African Community will maintain the current budget contributions model, where partner states contribute equally to the Secretariat’s budget, after members failed to agree on the best financing mechanism.

At its meeting in Arusha from May 2-8, the EAC Council of Ministers agreed instead to consult further on a suitable financing mechanism for the community.

Tanzania, Kenya and Uganda want the status quo to stand, arguing that countries are equal partners and should therefore contribute equally.

The equal contribution model is provided for in the EAC Treaty Article 132(4), which the trio says reflects the wisdom of the founders of the Community.

Rwanda and Burundi prefer a differentiated contribution mechanism, including the option of a levy on imports from outside the region.

The other option being pushed by all the EAC partner states except Burundi is that of equal contribution with sanctions to defaulting partners.