The East African Business Council (EABC) is struggling to initiate and sustain its projects because of donors pulling out and some reducing their funding.

The council’s 2015 report, released at EABC’s annual meeting in Nairobi, revealed a 40 per cent decrease in operating revenues, from $1,372,024 in 2014 to $820,498 in 2015.

Grants decreased by 67 per cent , from $894,526 to $295,124 over the same period, due to discontinuation of funding from the African Capacity Building Foundation and reduction of funding from TradeMark East Africa (TMEA).

The major donors for EABC are TMEA, the Federation of German Industry, Germany International Development Agency, and East African Trade Hub.

Econie Nijimbere from Burundi was elected the council’s new chairman, replacing Dennis Karera from Rwanda. Mr Nijimbere was the previous vice-chairman.

In his address, Mr Nijimbere said his main focus will be to address constraints to the smooth implementation of the EAC Customs Union and Common Market Protocols.

“Of priority is to strengthen the EABC institution, to make it visible within the EAC region, and advocacy on issues related to trade,” he said.

Mr Karera said more remains to be done on movement of labour, capital and goods.

“The EAC trade deficit is still high as the region continues to rely heavily on foreign imports, and there are gaps in the implementation of the Common Market Protocol by the partner states,” said Mr Karera.

TradeMark funding

For the year 2014/2015, TMEA’s funding to EABC was $295,124, and $306,251 for 2015/2016.

“This was the agreed amount as per the EABC proposal. TMEA has a two year contract with EABC and the funds are yet to be exhausted,” said Waturi Matu, TMEA director of business environment.

The annual report shows that membership subscriptions decreased by $2,000 (0.7 per cent) from $282,167 in 2014 to $282,167 in 2015.

Programme expenses decreased by 63 per cent during 2015, from $956,484 to $352,736.

The resignation of the East African Standards platform that was supported by TMEA also affected the implementation of programmes.

Accounts receivable decreased by 66 per cent, from $18,070 to $6,100 at the end of 2015. The drop was attributed to write-offs of membership fees.