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MFUMUKEKO: East Africans to pay more for goods

Saturday September 03 2016
liberat

The East African Community Secretary-General Liberat Mfumukeko. ILLUSTRATION | JOHN NYAGAH |

The new East African Community Secretary-General Liberat Mfumukeko spoke to Pamella Sittoni about cost-cutting measures and changes in operations at the Arusha headquarters as well as a proposal that has been made for a small percentage to be deducted from import duties on goods from outside the bloc to fund the activities of the Secretariat.

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Let’s begin from the end: How do you envisage the East African Community at the end of your five-year term?

I expect that in five years, the Secretariat will be able to show the people of East Africa what we have done for them; to have better connected the region’s businesses with the international business community in terms of finding markets abroad and attracting investments to East Africa. I also expect better advancement of technology.

The Single Customs Territory is also very important for us. In fact, we hope that by 2017, all goods to the region will undergo Customs clearance only once, at the port of entry. I am also confident that we shall have free movement of people — because you cannot talk about a Common Market without free movement of people.

Regional industrial development is another area that will be improved, as this is what will create employment. We cannot continue to import most of finished goods. We must enlarge our industries to take advantage of the large market presented by the region.

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I also expect that East Africa will have better expertise. I have already approached Oxford and Stanford Universities to train some of our people, so that people can be better equipped as we pursue the integration agenda. Lastly, East Africa must market itself better as an investment and tourist destination.

How do you hope to get there?

I have been telling my colleagues here that we must go back to the basics, and review our priorities. The Secretariat must change from being an administration and contribute to improving the livelihoods of the region’s people. For example, when you look at our budget, agriculture gets a fairly small fraction. Yet the majority of the region’s people rely on agriculture for their livelihood.

We must relook at the Common External Tariff (CET) imposed on fertiliser, for example, to make agriculture profitable for farmers. I am determined to reverse some of these trends. We must get out of this administrative thinking where all you seem to be doing is holding meetings where you talk on and on.

What other sectors do you plan to prioritise?

During their last Heads of State Summit, we identified the textile industry and motor vehicle assembly as two sectors the region must develop. We have, therefore, embarked on looking for partnerships in the textiles sector. We are seeking potential investors and institutions to help us to develop the region’s textile industry.

As a region, we must identify a few sectors where we have competitive advantage and from which we can build our own powerhouse. Look at Mauritius; it is a small country exporting up to 400,000 tonnes of sugar. It has achieved this in just 25 years through better planning and more focus on areas where it had competitive advantage.

What hurdles will you have to cross to realise your vision?

Liquidity is a big challenge. Here, we have two issues. One is the capability of partner states to disburse on time. They’re supposed to complete their disbursements by December of each financial year (which begins in June). However, no country has been able to do this. For this financial year, we have so far received only $2.4 million out of about $50 million expected from partner states.

This means we’re unable to implement a number of activities. However, projects, such as those under the monetary union pillar that are funded by the World Bank are well resourced. The African Development Bank is also taking care of people working on the projects it supports. For the rest of the staff, we try to prioritise payment of their salaries.

What about the donors?

The challenge here was that most of the three-year agreements signed in 2012 expired last year. We received only 30 per cent of the funding we were expecting from the development partners.

At this rate, will the donors continue funding the Secretariat?

We had a meeting with our development partners, and they told us they did not agree with the way we did things at the Secretariat. They told us we were spending too much on travel and meetings. They also asked us to constitute a projects co-ordination unit to give the development partners updates on the projects they support.

In addition, they had reservations about our daily sustenance allowance, which were much higher than what their own officers supervising the projects were entitled to.

Have the concerns been addressed?

I have put limitations on travel, reducing the number of days our meetings will last as well as ensuring that only necessary travel is authorised.

On DSA rates, we have agreed that any staff member travelling on project funds will apply the donor’s DSA rates. On their requirement for a project co-ordination unit, I have designated some staff members to play the role since we do not have funds to recruit staff at the moment.

The travel issue seems to be a big problem for the Secretariat. Why is this the case?

Travel is necessary as integration is about conducting activities in all five partner states. We have a calendar of activities expected to take place in all the five partner states, a calendar that approved by the Council of Ministers. The problem is that this has been abused. We need to review this calendar.

So, what’s the long-term solution to the liquidity problem?

The way out is for partner states to come up with sustainable financing mechanisms. A proposal has been made for a small percentage being deducted from import duties on goods from outside the EAC to go towards funding the activities of the Secretariat. The proposal will have to be approved by the Finance Ministers of the partner states.

You are proposing to burden citizens with more taxes?

Yes, it would be an extra tax, but the projects we seek to implement will improve the lives of EAC citizens. Resources are like a foundation. When you don’t have financial and human resources, you’re like someone trying to build a house without a foundation.

Let’s talk about the politics of your position: Opposition leaders in your country say you are frustrating the peace negotiations because you favour President Pierre Nkurunziza.

What people need to understand is that the process is difficult. Former Tanzanian president Benjamin Mkapa is in Dar es Salaam and we are expected to provide him with all the support needed to enable him to carry out his mission.

However, when the government of Burundi says Mr Mkapa cannot meet some people because they have been placed under an international arrest warrant, I don’t have the power to oppose this, or to force him to meet those people. Another issue is that Mr Mkapa does not report to me, but to the chair of the talks, President Yoweri Museveni. So, he cannot take instructions from me.

But you have a stake in what happens with the talks. After all, Burundi is your country.

We are all pushing for the two sides in the Burundi conflict to reach an agreement. We hope that Burundi will one day break with this cycle of violence; this culture of access to power without proper elections. We hope that Burundi will create an environment of democracy whereby the government is open to fair competition. A culture which when you lose, you accept the results. In Burundi, all on people have been victims of politics. We hope the future of Burundi will see us shade the culture of violence.

Are you the best man for the job? What do you bring to the table?

I’m a manager, and that’s what I’ve done all my working life. If you look at my record at the Burundi Water and Electricity Company and the Burundi Sugar Company, you will see how I reversed the trend from loss-making to profit. I was actually known for being a “bully” because I had to get rid of corruption.

For the first time here, I’m being a diplomat, but management is what I can bring to the Community. People need to understand that an institution’s money belongs to society. They must demonstrate accountability.

The success stories of other countries tell me that it is possible also for Africa to rise. We have the people, the brains and the capability. What we need now is proper management.

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