Kenya, Uganda and Tanzania join forces to re-launch economic bloc

The presidents of Kenya, Uganda and Tanzania met yesterday to re-launch the East African Community (EAC), a once thriving economic…

The presidents of Kenya, Uganda and Tanzania met yesterday to re-launch the East African Community (EAC), a once thriving economic bloc that collapsed 24 years ago amid bitter recriminations and ideological differences.

The three countries hope to abolish internal tariffs within four years, paving the way for an EAC common market. There are also plans for a common East African passport, a common currency and political integration along EU lines.

Yesterday, Tanzania's President Benjamin Mpaka said the world was moving towards regional integration and East Africa could not afford to be left behind. But analysts do not believe trade barriers can be dismantled within the planned timescale. "This has been in the pipeline for years. But there's a long way to go before key political and economic issues are sorted out," said a business commentator in Nairobi.

The proposed bloc would heavily favour Kenya, which has the strongest manufacturing base. Kenya enjoys a large trade imbalance over its two neighbours, which rely heavily on agricultural output for exports.

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But Kenya is in the grip of a severe economic slump while Uganda and Tanzania, among the world's poorest countries, have been lauded by international donors and financial institutions for their economic reforms.

Tanzanian and Uganda are two of the Irish government's seven "priority countries" in the distribution of foreign aid.

This is the second attempt to build an East African trade bloc - the first EAC was set up in the late 1960s but failed in 1977 along ideological lines.