AN OVERVIEW OF THE EAST AFRICAN COMMUNITY AND THE COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA                     (COMES...
Legal DisclaimerThis document is for informational and discussion purposes and is provided to the recipient on aconfidenti...
EAST AFRICA COMMUNITY OVERVIEWIntroductionThe East African Community (EAC) is the regional intergovernmental organization ...
SOME ECONOMIC SECTOR DEVELOPMENTSFinancial ServicesThe partner States are harmonizing their banking acts which will lead t...
semiprecious stones including tourmaline, topaz, corundum, chiastolite, amethyst, opal and agate havebeen discovered.Tanza...
COMESA REGION OVERVIEWWhat is COMESA?The Common Market for Eastern and Southern Africa (COMESA) is a Regional Economic Com...
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East africa community and comesa regions overview

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A synopsis of the most lucrative region on Earth in 2012-2015.

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East africa community and comesa regions overview

  1. 1. AN OVERVIEW OF THE EAST AFRICAN COMMUNITY AND THE COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA (COMESA) Confidential and Proprietary – Not for Distribution
  2. 2. Legal DisclaimerThis document is for informational and discussion purposes and is provided to the recipient on aconfidential basis. This document, in any form, may not be reproduced or distributed without our priorconsent. This document is neither an offer nor solicitation to invest in any region, country, company orindividual. Such offer and solicitation may only be made through a separate agreement and subject tospecific terms. Confidential and Proprietary – Not for Distribution
  3. 3. EAST AFRICA COMMUNITY OVERVIEWIntroductionThe East African Community (EAC) is the regional intergovernmental organization of the Republics ofBurundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania. The Treatyfor Establishment of the East African Community was signed on 30th November 1999 and entered intoforce on 7th July 2000 following its ratification by the Original 3 Partner States – Kenya, Uganda andTanzania. The Republic of Rwanda and the Republic of Burundi acceded to the EAC Treaty on 18th June2007 and became full Members of the Community with effect from 1st July 2007.Aims and ObjectivesThe EAC aims at widening and deepening co-operation among the Partner States in political, economicand social fields for their mutual benefit. To this extent, the EAC countries established a Customs Unionin 2005 and are working towards the establishment of a Common Market by 2010, a Monetary Union by2012 and ultimately a Political Federation of the East African States.Region and PeopleThe Community has a combined population of 125 million, land area of 1.85 million sq kilometers and acombined GDP of $ 44 billion.Some of the key highlights of the region are that:•The world’s fastest reforming region in terms of business regulation.•Major Advancements in the Information Technology sector with high adoption of mobile telephonyand the setting up of national and international fibre optic networks.•Fast developing financial services sector with adoption of mobile wallet technologies.• Simplified investment procedures and one stop centre facility provided by national investmentpromotion agencies.• Generous incentives offered to foreign investors in a number of the countries.• Vibrant and upcoming capital and securities market.• High level of intra regional trade and cross-border investments.• Numerous investment opportunities traversing all economic sectors.• Abundant and youthful labor force – educated, trained, mobile, skilled and enterprising.• English is widely spoken. Rwanda and Burundi are bilingual (French & English).• Insurance against non commercial risk by Multilateral Investment Guarantee Agency (MIGA) and AfricaTrade Insurance Agency (ATIA).• Sanctity of private property guaranteed on national constitutions.• Stable political environment and high level of governance and democracy.• Consumer loyalty to large and quality brands• Cordial hospitality and warmth of the people.•Fast growing middle class in all the 5 states forming a base for huge consumption of goods andservices. Confidential and Proprietary – Not for Distribution
  4. 4. SOME ECONOMIC SECTOR DEVELOPMENTSFinancial ServicesThe partner States are harmonizing their banking acts which will lead to harmonization and eventuallyintegration of their financial systemsInvestment potential exists in establishing commercial banks as well as other services like brokerage,investment consultations, asset valuation & sales and bank assurance, asset management, real-estatefinancing, lease finance, agricultural finance and advisory services. The rapid growth of the informalsector offers opportunities in the provision of credit and related service. Demand for insurance serviceshas also risen.Oil and gasIn Burundi, recent seismic and magnetic surveys have indicated that there may be oil under LakeTanganyika and the Rusizi river.Kenya’s petroleum potential lies in four largish sedimentary basins: Anza, Mandera, Tertiary Rift andLamu.In Rwanda, there is hydrocarbon potential existing in North Western Rwanda and deep under Lake Kivu.In Tanzania, significant gas discoveries have been made on the coastal shores of Songo Songo Island andMnazi Bay, and commercial exploitation for power generation began in July 2004. Petroleum seismiccoverage in the public domain is approximately 52,000 kms, 52% offshore and 48% onshore, includingthe interior rift basins.In Uganda, a number of mining companies have taken up licenses in the mining sector. Oil was finallydiscovered in Western Uganda in 2006 after 17 years of exploration. This discovery is set to boost thecountry’s economy significantly.The EAC facilitated the East African Petroleum Conference in 2005 & 2007. Among resolutions madeinclude the need to develop the Partner States’ petroleum potential by harmonizing policies and legaland fiscal regimes pertaining to petroleum exploration.MiningThe EAC countries are richly endowed with a variety of mineral resources.Burundi is well endowed with deposits of nickel, vanadium, cassiterite, colombo-tantalite, gold,uranium, rare earth oxides, peat, cobalt, copper, platinum, hydropower, niobium, tantalum, gold, tin,tungsten, kaolin and limestone.Kenya has four belts of minerals —the gold green stone belt in western Kenya, which extends toTanzania; the Mozambique belt passing through central Kenya, the source of Kenya ’s uniquegemstones; the Rift belt, which has a variety of resources including soda ash, fluorspar and diatomite;and the coastal belt, which has titanium.Rwanda has deposits of Cassiterite, a tin ore, which is a very important ingredient of electronics’components. The mineral is also found in Walikale, in DRC’s Northern Kivu Province, a part that bordersRwanda in the east. Other potentially profitable minerals include Wolframite, Columbite-tentalite,Amblygonite and Tantalite (Colttan). Gold has also been explored in some parts of the country. Some Confidential and Proprietary – Not for Distribution
  5. 5. semiprecious stones including tourmaline, topaz, corundum, chiastolite, amethyst, opal and agate havebeen discovered.Tanzania has a wide variety of minerals, including diamonds, gold, base metals, gemstones (includingthe unique Tanzanite) and a variety of industrial minerals such as phosphates, mica, gypsum, limestone,graphite, quartz and vermiculite, that have a wide range of applications in ceramics, pottery, brick andtile making, and glass manufacture, nickel, cobalt, copper, diamonds, gemstones, apatite, niobium, ironore and coal.Uganda also has a variety of mineral resources, including copper, cobalt, tin, iron ore, tungsten,beryllium, limestone, phosphates, salt, clays, feldspar, diatomite, silica sand, glass, sand gravel, andconstruction materials such as granites and gneisses.Investment opportunities exist in mining stone for the construction and building industry, phosphatesfor agriculture, salt for domestic and chemical uses, iron ore for the iron and steel industry, kaolin forleather tanning and pharmaceuticals, and silica sand and trona for glass manufacture, exploration anddevelopment of mineral deposits including oil, gold, copper, cobalt sulphide and hematite iron.Other areas of opportunity include tourism, agriculture, infrastructure development, real estate, energyand manufacturing sectors. Confidential and Proprietary – Not for Distribution
  6. 6. COMESA REGION OVERVIEWWhat is COMESA?The Common Market for Eastern and Southern Africa (COMESA) is a Regional Economic Community(REC). It is the largest African economic block comprising a total of nineteen countries, a population ofover 430 million, and a combined current GDP of over USD 447 billion. Having successfully launched itsCustom Union in 2009, COMESA continues on the road of regional integration by supporting thecontinual creation of better investment conditions, making it an increasingly internationally competitiveeconomic community.COMESA’s 19 Member States include: Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt,Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland,Uganda, Zambia, and Zimbabwe.PurposeCOMESA’s Vision is to “be a fully integrated, internationally competitive regional economic communitywith high standards of living for all its people, ready to merge into an African Economic Community”Achievements• Establishment of the COMESA Free Trade Area (FTA) in 2000. Fourteen COMESA Member-States aremembers of the FTA.• Launch of the COMESA Customs Union in 2009.Future• Launch of the COMESA Common Market by 2014.• Launch of the Monetary Union by 2018.COMESA – the Business DestinationCOMESA is Africa’s largest economic community, comprising 19 Member Countries stretching from thenorth to the south of the continent. Plentiful natural resources, a constantly growing population, anemerging middle class in need of new products, an increasingly aspirational youth and growing stabilitymake it a vibrant economic community.The ideologies of the countries in COMESA are aligned: every state wants to move into capitalist marketeconomies. This has helped the economic development of the region, which has seen a sharp increase incross-border and foreign investments in the last decade, particularly from ‘newcomers’ such as Brazil,China and India.With a collective GDP of more than USD 440 billion, COMESA provides many opportunities forinvestment in various fields, particularly logistics, tourism, energy, infrastructure and mining.Investments in COMESA countries are not restricted to resources: value addition is equally on the rise.The region has become especially interesting for investors because of its high rate of return, which hasstood at a staggering 29% since the 1990s, as opposed to the EU’s 10%.Until the financial crash in 2008, COMESA states’ GDP increased by 7% a year, as a result of stablemacroeconomic environments, and liberalized capital accounts and markets. Confidential and Proprietary – Not for Distribution

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