EAC head office gets $40 mn from Germany
Tuesday January 26 2016
The East African Community (EAC) secretariat has received 37 million euros ($40.2 million) from Germany offering a reprieve to the cash-strapped regional body running a tight market integration plan.
The money, which is a grant, was advanced for development projects including the establishment of a network of reference laboratories for communicable diseases.
The regional body was late last month reported to be broke with the five member states having defaulted in remitting $30.9 million (about Sh3.15 billion) in budgetary support, leading to mounting supplier debts and disruptions of the calendar of its operations.
“The Federal Republic of Germany signed an intergovernmental agreement with the East African Community to support the economic integration, regional health facilities and water resource management.
“Germany signed a total of 37 million euros in grants to the EAC for 2016-2018,” the EAC said in a statement.
The laboratories which will cost $10.8 million will be used for the prevention and control of epidemic outbreaks in the region. Another $10.8 million will be spent for improving water provision in the Lake Victoria basin.
The remaining amount will be used to support the implementation of the customs union, monetary union and common market protocol.
The five partner states contribute towards supporting the budget of the EAC secretariat but have each defaulted in their contribution with Burundi leading the way at $11.2 million.
Tanzania’s arrears stand at $6.5 million, Rwanda $6.3 million, Kenya $4.2 million while Uganda’s debt is the lowest at $2.6 million.
Partner states have over the years failed to remit the full amount pledged leaving donor states to fund the regional body.
A 2013 proposal to introduce a levy on imports to finance the secretariat’s operations has proven unpopular and was shelved.
Germany, which is seen as the nucleus around its own regional block — the European Union — has been a big supporter of the EAC through donor support including providing funds for construction of the headquarters in Arusha.
