Liberalisation of airspace, harmonisation of roaming charges, and free movement of labour and services within the EAC are some of the advancements that regional businesses hope to see in 2016.

The East African Business Council (EABC), an apex body for the EAC private sector, said the delay in opening up the skies, reducing roaming charges and implementing free movement of labour and services have driven up the cost of doing business within the region.

EABC acting executive director Lilian Awinja told The EastAfrican that they will call for the EAC Council of Ministers and Heads of State Summit to take action on those issues.

“Despite the commitments of EAC partner states, and integration efforts through the Common Market Protocol, the EAC air transport sector remains protected,” Ms Awinja said.

She said air transport in East Africa is expensive by international standards.

Air transport

The EABC recommends the adoption and operationalisation of the EAC air transport regulation, and harmonisation of regulatory fees and charges in order to create a level playing field.

The lobby also advocates equal treatment for EAC air operators, passengers and cargo in all partner states.

“We also want the promotion of low-cost carriers on both domestic and regional routes, and promotion of competition among the airlines in order to lower airfares,” she said.

Article 93 of the EAC Treaty requires member states to harmonise their policies in order to promote the development of safe, reliable, efficient and economically viable civil aviation, as well as to establish a single EAC air transport market and remove restrictions imposed by bilateral air service agreements (BASAs).

Last October, four countries on the Northern Corridor agreed to open their skies. Under the deal, Rwanda, Uganda, Kenya and South Sudan agreed to give regional airlines, like RwandAir and Kenya Airways, freedom to operate without limitation along the corridor.

The pact, which was signed during the 11th Northern Corridor Summit in Nairobi, is expected to be effective January 1, 2016. 

The agreement means that Kenya Airways and RwandAir can ply the Entebbe-Nairobi-Entebbe and Entebbe-Kigali routes as local airlines.

The business community is optimistic that the move will lower air fares.

Currently, flying from Kigali to Entebbe costs between $229 and $300, and from Kigali to Nairobi between $249 and $320, with some airlines charging up to $400.

EABC chairman Denis Karera said high flight charges are eating into the revenue of businesses, and affecting the ease of doing business in the region.

According to Ms Awinja, the initiative should involve all EAC partner states in order to bring about a meaningful impact on intra-EAC trade.

“The EAC spirit is to create a single sky to reduce high air fares and thus reduce the cost of doing business within the region. But unfortunately we still see bilateral agreements in place,” she said.

One Network Area

The EABC is also concerned about the high cost of telecommunications.

Ms Awinja said the region needs one network, where a call within the EAC across all networks costs the same as a local call.

The council also wants harmonisation of costs of spectrum, licence fees, the universal access fund, numbering fees and bandwidth.

Ally Simba, the Director General of the Tanzania Communications Regulatory Authority, said roaming charges on voice calls need to be harmonised. followed by data charges.

Kenya, Rwanda, and Uganda have already rolled out a One Network Area programme, bringing down the cost of mobile phone roaming services by 60 per cent.

Another aim of the Protocol was to facilitate movement of labour. The EAC Common Market Protocol Annex II, Regulation 6(9) states that, “The work permit or a special pass issued under these regulations shall be issued in accordance with the harmonised classification of work permit and forms, fees and procedures as may be approved by the Council”.

This is not happening as had been envisaged by the business community.