President Uhuru Kenyatta of Kenya and President Paul Kagame of Rwanda have challenged East African Community (EAC) member states to speed up reforms to allow free movement of labour across the region. The two leaders said continued fears that opening up domestic job markets to regional job seekers would erode opportunities for nationals were “primitive and unfounded”.

Speaking at the opening of the sixth East African Business Summit in Kigali, Rwanda, the two Presidents said political will is required to fully integrate the region.

“Let us be frank with each other, we have not been able to move fast because of national fears, a sense of insecurity, that if one opens up their people will be denied jobs and other opportunities,” Mr Kenyatta said yesterday, in a question-and-answer session with top business executives from across the region moderated by Kenya Commercial Bank chief executive officer Joshua Oigara.

“We must deal with these fears. We need to start talking about our people being the east African people. Kenya and Rwanda have made progress on this. We have been clear on opening up our labour market to take full advantage of the labour that is available in the region.”

Mr Kagame said besides allowing EAC citizens to work in the country and set up businesses, Rwanda’s bold steps in opening up are showing the opportunities of a free labour market.

“To increase trade, it is not only as a result of exporting raw materials but on basis on value addition. For the rest of the rest of World we sell raw and unprocessed materials. This is as primitive, in the same way people are looking at not allowing free movement of labour market,” Mr Kagame said.

“We do have unwarranted worries. We have experimented with this in Rwanda. When we opened our borders, removed restriction on work permits and visas, everyone benefited. We have benefited. Some Rwandans had worries but it is about leaders making decisions and involving the people.”

Trade between Kenya and Rwanda has grown from $44.8 million in 2001 to $160 million by 2011, two years after the country was admitted into the EAC, together with Burundi. Capital and labour flows between the two countries have continued to grow after both governments removed restrictions on work permits.

“If Rwanda doesn’t have to worry about Kenya why should other bigger countries worry about Kenya?” Kagame asked.

President Kenyatta, the current chair of the rotational EAC Heads of States Summit, applauded the “brave” move by his predecessor, President Mwai Kibaki, and Mr Kagame, to allow free movement of labour between the two countries.

“I don’t think Kenya and Rwanda are worse off for that position. I believe we are better off. Young people now move freely. I am told a lot of Kenyans now came through Kigali airport using just IDs,” he said.

“The United States was built by tapping the talent of the world,” Mr Kenyatta said. “We need to end the inward-looking mentality that we inherited from our colonial masters. Let us not be fearful of one another.”

Kenya has the lowest number of visitors to Rwanda from among the EAC member states but the figure doubled between 2009 and 2012, from 33,168 visitors to 63,222, according to figures from the Rwanda immigration authorities.

Need for speed

The two leaders told business leaders that they remain committed to investing in energy and transport infrastructure so as to reduce the cost of doing business in East Africa.

Mr Kagame, Mr Kenyatta and President Yoweri Museveni of Uganda have been at the heart of a rapid investment in key projects along the northern corridor and in the rest of the region, including the new standard gauge railway, refurbishment at Mombasa Port, as well as proposed oil pipelines and refineries from Uganda to the Indian Ocean coast.

Asked by a business executive in the audience about the delays in the railway project, Mr Kagame said, “the standard gauge railway is taking too long because we started too late”.

President Kenyatta and President Kagame emphasised the need for the region to hasten the pace of integration as well as the need for increased investments in infrastructure, energy, ICT, security and health.

“These are the areas that will propel growth within the region. We must exploit ICT which is our biggest competitive advantage unlike in the developed world where infrastructure development is their big advantage,” Mr Kenyatta said.

He said Kenya and the region must take full advantage of innovations in mobile money and new technologies to create wealth for its people.

Terror effects

Mr Kagame emphasised the need to strengthen regional peace and security. He said the governments are putting a joint force that can be deployed to intervene in any situation in the community together, pointing out that insecurity in Kenya, for instance, has a contagion effect on the rest of the community.

The leaders also called for greater partnership between government and private sector players in addressing challenges in health, education and talent development, mineral management among others.

“All the building blocks are there. All we need to do is to put the blocks in place and move faster,” President Kagame said.