The East African Community (EAC) plans to set up a $20 million fund to boost the participation of the private sector in the ongoing market integration.

The East Africa Private Sector Fund, to be launched by heads of state in November, will finance firms involved in the implementation of regional projects in the five member states over the next three years.

“The idea behind the fund is to see how we can ensure that the private sector plays a bigger role in the integration of EAC,” said secretary-general of the EAC Richard Sezibera.

At the moment, EAC integration largely remains an affair of government departments and agencies.

Speaking on Wednesday at a Nairobi hotel, Dr Sezibera said a steering committee would be set up by the private sector to formulate a work plan that highlights issues to be prioritised.

He said the fund will mainly be contributed by airlines, banks, breweries, telecommunication companies, and trading institutions across East Africa.

“This is a historical and important initiative of which the private sector will be a principal beneficiary of an integrated EAC,” said East African Business Council Chairman Felix Mosha.

He said the fund would help quicken integration by working closely and complementing the contributions of the five governments.

“The sector should be part of financing the integration and not leaving such support only to donors,” he said.

The fund will focus on activities that have stalled due to lack of funding and look at issues such as establishment of single territory customs, improving labour conditions and taxation standardisation.