East African Business Week

ARUSHA, TANZANIA - Kenyan Minister for East African Community (EAC) has said that implementation of common market protocol has been delayed by negative perceptions towards from partner states.
Minister Peter Munya was presenting budgetary proposals for the financial year 2011/12 at Arusha last week. "Despite launching common market protocol in a major and historic achievement, there is however negative perception to see it implemented," said Munya.
"We need to ensure that we rectify this situation and expedite the implementation rather than have a relaxed approach to actualize the Common Market," he added.
The Protocol was launched July last year aiming at paving way for free movement of goods, services, capital, labour and right of establishment business across the region as one platform to consolidate economic integration.
Munya said that there are legal and regulatory frameworks that need to be put in place in order to allow free movements of products under Customs Union and Common Market operations.
He added that there are also negative tendencies that have persisted affecting the mindsets of all kinds of actors in the regional integration process.
According to Munya, different stakeholders in implementing the protocol have been working closely with the East African Business Council.
He added that it will need a resolute political will, and focused determination to make the common market a reality.
He says that the council of ministers declared the implementation of EAC Monetary Union and integration of the financial markets infrastructure, including the establishment of an East African Stock Exchange said to be crucial to facilitate the operations of the Common Market.
He also said that establishment of evaluation and monitoring systems related to ICT based statistical data on trade, investments and other key economic indicators is underway.
"As a regional economic community, we must move quickly to have this kind of data and on a timely basis," he emphasized.
"With the implementation of a single customs territory and advancement in elimination of non tariff barriers, intra-trade is expected to grow to greater heights in the region,"
He said that all the partner states will equally benefit from the Customs Union like avoidance of double taxation, prospects of cross-border investments and foreign direct investment inflows.
It has also emerged that EAC has intensified efforts to address the problem of Non Tariff Barriers (NTBs) intended to reduce the cost  of doing  business  and enhance the attractiveness of the region.
"Work has continued, with the support of the Japan International Co-operation Agency (JICA), to establish One Stop Border Posts (OSBPs)," he added.