Rwanda has joined Burundi in opposing the equal contributions requirement by the East African Community in financing the bloc’s activities.

The two being the smallest economies in the bloc, want a levy imposed on imports from the region to finance the EAC budget, which means Kenya, Tanzania and Uganda will pay more by virtue of their higher levels of imports.

The three big economies, however, argue that equal contributions would buttress the principle of equal partnership enshrined in the Community’s articles.

The divergent views mean that the Heads of State Summit cannot make a decision on how the Secretariat will be funded in order not to rely on donors. This is listed as one of the top items on the ongoing summit’s agenda.

During the meeting of finance ministers held in Arusha from May 7-8, Rwanda and Burundi preferred differentiated contributions, including the option of levying duty on imports from outside the region destined for each country.

Inequality

Kenya, Tanzania and Uganda warned that this approach would eventually lead to calls for allocation of voting rights that would see the bigger economies hold sway over allocation of Community resources. Equal contribution by partner states is provided for in the EAC Treaty Article 132 (4).

Rwanda and Burundi on the other hand say uniform contributions are not be a sustainable source of funds.

“Equal contributions put a heavier burden on some partner states considering the size of their economies and the increasing budget of the EAC needed for establishment of new institutions key for the Community to pursue its integration agenda,” said Rwanda and Burundi in the annual progress report for the Council of Ministers that was presented to the EAC ministers on May 18.

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In the current 2016/2017 EAC budget, Burundi has contributed nothing despite other members contributing part of their share. Only Kenya is up to date with its contribution; Uganda has paid up 90 per cent, Rwanda 64 per cent and Tanzania 30 per cent.