EAC Research Paper

1. Regional Integration
Lecturer : Dr. Christiane Hardenberg
Report on group exercise
Preparation of Group Presentation on:
East African Community
 Volkan Emre 0534436
Berlin, January 2012
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2. TABLE OF CONTENTS
Page
1.Introduction 04
2.Background of the EAC 05
3.Main drivers for integration 06
4.1 Economic drivers 07
4.2 Political drivers 07
4.3 Social drivers 08
4.Achievements in main integration areas 08
4.1 Achievements in GDP & GDP per capita 08
4.2 Achievements in trade & trade patterns & intra-regional trade 09
4.3 Achievements in doing business 11
4.4. Achievements in tariff reduction & common external tariff 12
4.5 Achievements in capital movements 13
4.6 Achievements in Common Markets – Labor 13
4.7 Achievements in the attempts towards East African Monetary Union (EAMU) 13
4.8 Achievements in political / defense pact 14
5.Current integration debates 15
6. Main challenges 15
4.1 Trade related challenges 16
4.2 Non trade related challenges 16
7. Opportunities 17
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3. LIST OF TABLES & CHARTS
Table 1 Time Table and Progress of the EAC towards Political Federation 01
Table 2.1 EAC Members in Figures, 2010 06
Table 2.2 EAC, EU and US in Figures, 2010 06
Table 4.1.1 Changes in GDP 08
Table 4.1.2 EAC in Figures, 2010 09
Table 4.2.1 Growth of the Intra-Regional Trade in the EAC Countries 11
Table 4.2.2 Shares of EAC members in intra-regional trade, 2009 11
Table 4.4.1 Tariff Reductions in the EAC between 2005 and 2010 12
Table 4.7 Achievements in OCA criteria 14
Chart 4.2.1 Trade Volume (Exports+Imports) of EAC Countries between 2003 and 2008 09
Chart 4.2.2 Trade Balance (Exports-Imports) of EAC Countries between 2003 and 2008 10
ABBREVIATIONS / ACRONYMS
EAC East African Community
EAMU East African Monetary Union
EU European Union
ECOWAS Economic Community of West African State
SADC Southern African Development Community
OCA Optimum Currency Area
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4. 1.INTRODUCTION
The East African Community can be classified in line with the south- south integration concepts.
What makes EAC more interesting than other south – south integration examples is that the member
countries of the EAC could have establish a common market and almost achieved their aim to have a
monetary union on their way to the political federation. There is a remarkable commitment backed
with a strong ambition behind the current integration in the East African Region.
The Treaty establishing the East African Community (EAC) was signed on 30 November 1999 and
entered into force 7 July 2000. Its original members were Kenya, Tanzania and Uganda. Burundi and
Rwanda became members in 2007. The goal of the EAC is to ‘widen and deepen economic, political,
social and cultural integration in order to improve the quality of life of the people of East Africa
through increased competitiveness, value added production, trade and investment 1. The EAC Treaty
aims to establish an export-oriented economy that will enable the ‘free movement of goods, persons,
labor, services, capital [and] information technology’, as an important objective2.
The establishment treaty aimed to follow four different steps of the regional integration among its East
African members. Those steps are respectively: customs union, common market, monetary union and
political federation. Planned time frames of the different integration steps which are set in the treaty
and their actual introduction dates are shown on the table below.
Table 1 : Time Table and Progress of the EAC towards Political Federation
Timetable
EAC Customs Union EAC Common Market
· Operationalised on 1st July 2005 as agreed in · The protocol on the establishment of the
the treatment EAC common market was being
negotiated as of 18 June 2009
· Operationalised on 1st July 2010
EAC Monetary Union EAC Political Federation
· No time frame set in the treaty · No time frame set in the treaty
· Scheduled to 1st June 2012 · Unofficially aimed to be reached by 2015
1
EAC Development Strategy 2006- 2010, Executive Summary, available at http://www.eac.int/index.php
2 Treaty Establishing the East African Community, Art. 7(c), available at www.eac.int.
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5. Headquarters of the EAC is located in Arusha, Tanzania, which has been an important international
diplomatic hub in the past for East Africa and the continent. Arusha’s strategical location allows the
EAC member to have easy access to the city for all member countries.
Organizational structure of the EAC is quite complex as expected. The core organs can be stated as
follows: The summit, the council of ministers, the co-coordinating committee, sectoral committees, the
EAC court of justice, the EAC legislative assembly and the secretariat.
2.Background of the EAC
History of the EAC goes back to the early 20th century. Construction of the Mombassa – Kasese
Railway between 1897 and 1901 and the significant increase in the economic activities in the region
led Kenya and Uganda to establish a customs union in 1917. Tanzania joined the customs union in
1927. Both parties established the East African High Commission in 1948 which was replaced by East
African Common Services Organization in 1966. Finally the first East African Community was
founded in 1967 by Uganda, Kenya and Tanzania. But it could last only for ten years and collapsed in
1977. The main reason behind the collapse of the first EAC was political rather than economic. Cause
of that collapse was mainly depending on Kenya’s demand on having more seats than the other
participants.
In year 1993, old EAC members came together again in Arusha and signed the Treaty for East
African Co-operation which might be considered as the basis of the new community. East African Co-
operation was replaced by the new East African Community Treaty which was signed in 1999 again
by Kenya, Uganda and Tanzania. In 2007 the EAC had its final shape by adding Brundi and Rwanda
as new partner states to the community.
Both Sudan and South Sudan made their interest public in joining to the EAC. Since the geographical
proximity is one of the admission requirements to join to the EAC, Sudan’s candidacy is still not
possible. In addition to that, Tanzania, Uganda and Kenya are strongly opposed to Sudan’s entry to the
community because of Sudan’s racist actions towards non –Muslim black Africans. On the other hand
South Sudan has been warming up to the idea of joining to the EAC in the short term future. South
Sudan is a candidate country since July 2011 and has been working hard to be the 5th member of the
EAC.
Some figures might give better insights about the member states of the EAC in order to understand
the regions balances. Looking at the Table 2.1 , one can easily find out that Kenya is the leading
country of the region with the highest GDP and GDP per capita numbers. On the other hand Burundi
is slightly lacking behind all of the EAC member countries which might bring the question to the
front: Is EAC really a south – south integration from Burundi’s point of view?
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6. Table 2.1 : EAC Members in Figures, 2010
Population GDP GDP per capita
( US$
( Millions of people) Billions) (PPP Current $)
Kenya 40,5 66,2 1635
Tanzania 44,8 62,23 1423
Uganda 33,4 42,21 1263
Rwanda 10,6 12,27 1155
Burundi 8,4 3,4 405
Source: World Bank Development Indicators, 2011, Own calculations
In order to answer such a question we should also look at EAC’s position in comparison with the other
major regional integration blocs. Considering the figures which can be captured on the Table 2.2.
below, we can argue that EAC is significantly lacking behind EU and US in terms of GDP and GDP
per capita. The picture is pretty much clear that any integration attempt under the EAC can be
classified as south – south integration. However we think that looking from Burundi’s perspective it
might be indeed a North –South integration in a south – south context. Some additional information
and data on the regional disparities within EAC can be in the upcoming sections which can put more
light on our question and answer.
Table 2.2 : EAC, EU and US in Figures, 2010
EAC EU US
Population (2010) 138 million people 309 million people 502 million people
Surface Area 1.82 million sq.km 4.32 million sq.km 9.83 million sq.km
GDP (Current) $ 78.7 billion $16.2 trillion $14.6 trillion
-2010
GDP per capita $ 1176 $ 31,676 $ 47,182
(Current,PPP)
-2010
GINI (%) 43.2 % 30% 41%
Source: WTO, World Trade Report 2010, EAC, EAC Facts & Figures Report 2011,World Bank
Developmet Indicators , Central Intelligence Agency, own calculations
3.Main Drivers for Integration
Every member state has its own political, economic and social dimensions behind regional integration
attempts within the EAC. But there are also common main drivers for integration which can be
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7. evaluated in three different dimensions. Those dimensions are respectively: Economic, political and
social drivers for integration
3.1 Economic drivers for integration
Changes in world trading regime heavily influenced by WTO rules is playing important role in the
regional integration attempts in the world and as well as in East Africa. Therefore the changing nature
of the worlds trade is a dominant driver behind the integration attempts to have a better access to the
world markets. Additionally, limited and weak intra-regional trade does not allow the EAC members
to strengthen their weak domestic markets. The nature of the regional integration offers to the EAC
members to change that picture in their domestic markets just the other way around by liberalization of
the intra regional trade.
In addition to the trade side we should look at the production side too. EAC member states are also
expecting to benefit from the economies of scale and attract more FDI in a more integrated economic
environment. Mobility of the cheap labor within the region is expected to decrease the production
costs.
Establishing well framed intra-sectoral linkages among member states is an another economic driver
for integration. Enlargement of the markets and intra-sectoral linkages within the EAC take place
through regionalism due to their political economic background.
3.2 Political drivers for integration
Political drivers for integration can be evaluated in two groups. First group is the external political
influence which is mostly from the EU, that is openly supporting regional integration communities in
Africa with Cotonou Partnership Agreement. Besides the EU ,the biggest trade blocs and WTO are
encouraging regional integration attempts in Africa with their special trade preferences.
Second group of political drivers behind integration is domestic ones. Almost all of the EAC member
countries do have the historical ambition to increase the regional representation of the East Africa on
the old continents political platform. Other integration blocs within Africa like ECOWAS and
COMESA are generally seen as rivals in getting the benefits of the opportunities abroad.
Security concerns also do play role in the integration attempts. The EAC Treaty openly includes
cooperation in defiance, regional peace and security3
Additionally, the aim of promotion of the good governance which is set by EAC Treaty might be also
evaluated under political drivers for integration.
3
EAC Treaty, Chapter 23 , Article 123, 124 ,125
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8. Yet again, We can claim that the political drivers influence the integration process in line with the
regionalism concept.
3.3 Social drivers for integration
Social drivers are very much related to the social interactions of the region’s population and
immigration. Those issues are heavily linked with the regional disparities within the EAC.
Immigration is from poor (e.g Burundi, Rwanda) to relatively rich regions/ countries (e.g Kenya,
Tanzania). EAC aims to change that flows with the increasing amount of intra-regional trade and FDIs
with the regional integration.
Inequality in the income distribution among different social classes and as well as among member
countries (e.g Kenya vs. Burundi) gives an another motivation to the regional integration process as a
challenge.
Additionally, the aim to enhance the role of woman and increase their participation in the social and
economic life, can be classified as an another social driver which is also set as a goal by the EAC in
the Establishment Treaty. But off course implementations and achievements can be questioned.
4.Achievements in Main Integration Areas
In order to analyze the achievements in main integration areas, we will look at the following
dimensions below. As it is already mentioned above the EAC Community introduced ‘Customs
Union’ in 2005 and that integration stage has been in implementation up to now. In the following
analysis, we will take the year 2005 as a benchmark and question the before and after effects of the
introduction of the customs union in line with the possible expectations of that particular regional
integration type.
4.1 Achievements in GDP & GDP per capita
Looking at GDP figures which are shown on the Table 4.1 below, one can easily observe that GDP
growth increased among the member states in the last decade. However it is hard to ascertain the
contribution of Customs Union on this fact.
Table 4.1.1 : Changes in GDP
GDP Growth
2001-2004 2005-2010 2001-2010
Burundi 15 35 63
Tanzania 32 54 126
Uganda 32 63 136
Rwanda 30 59 133
Kenya 16 38 76
Source: World Bank Development Indicators, 2011, Own calculations
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9. We can see a very similar picture if we look at the per capita figures. Changes in GDP per capita
growth after the introduction of the customs union in 2005 are quite remarkable but yet again these
variables had shown attendance to grow even before the implementation of customs union in 2005.
Though their growth was seem higher in relation to the previous growth before the implementation of
the customs union. As stated
Table 4.1.2 : EAC in Figures, 2010
GDP per capita Growth Rate
2001-2004 2005-2010 2001-2010
Burundi 7 18 26
Tanzania 22 44 75
Uganda 20 49 77
Rwanda 22 51 86
Kenya 7 25 39
Source: World Bank Development Indicators, 2011, Own calculations
4.2 Achievements in trade & trade patterns & intra-regional trade
Trade patterns are one of the most visible indicators to analyze before and after periods of the customs
unions introduction in 2005. We analyzed the trade volume and trade balance of the EAC within the
observation period between 2003 and 2008.
Chart 4.2.1: Trade Volume (Exports+Imports) of EAC Countries between 2003 and 2008
Source: WTO,World Trade Report 2010, EAC,EAC Trade Report 2009, own calculations
During that particular time period, both export and import volumes continued to increase after customs
union. One remarkable finding that we came across was that EAC’s total trade volume was increasing
more than before. Positive differences in percentage growth were observed between 4 to 6 percents.
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10. This increase can be partly explained by the positive effect of the market liberalization through the
introduction of the customs union for the selected time period, however the world trade patterns’
positive cyclical movements might have played a role behind EAC’s trade volumes’ expansion.
Chart 4.2.2 : Trade Balance(Exports-Imports) of EAC Countries between 2003 and 2008
Source: WTO, World Trade Report 2010, EAC,EAC Trade Report 2009, own calculations
During our analysis on the customs unions’ effects on the trade patterns we found out that the
optimistic picture in the total trade volume has been slightly changing in total trade balance of the
EAC. Because EAC’s trade balance has been continuing to grow in deficit, especially after 2005. The
main reason behind that fact is the composition of the trade. Share of import are slightly more than
share of imports. And value of imports grew relatively higher than exports, especially after the
customs union. If we look to the sources of that distortion in the trade balance on Table 4.2.2 above,
we can easily capture that trade with the rest of the world had risen significantly and expansion of the
imports created the trade deficit in the EAC. Yet again we can include the worlds business cycle’s
upward movement in the analysis.
One of te most interesting findings of our research on EAC’s trade patterns between 2003 and 2008
was on intra-regional trade. As already mentioned in the economic drivers section of the paper, intra
regional trade is very important for EAC members to strengthen their weak domestic markets and
introduction of the customs union was a definitively an opportunity for change.
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11. Table 4.2.1 : Growth of the Intra-Regional Trade in the EAC Countries between 2003 and 2008
Source: WTO, World Trade Report 2010, EAC,EAC Trade Report 2009, own calculations
According to Table 4.2, the volume of the intra-regional trade decreased for one period and then
steadily increased after customs union till 2009. However, in reality the share of the intra-regional
trade to total trade instead decreased after customs union (Table 4.2.1) which is not an expected
situation for regional integration agenda of the EAC in the field of trade
If we have a closer look at the intra-regional trade we can easily capture Kenya’s dominance with its
almost 40 percent share in the overall intra-regional trade (Table 4.2.2). Rankings of the member
states are very much in line with their GDP and GDP per capita rankings as well. In that regard
Burundi is in the last place with its less than 5 percent share in the overall intra-regional trade.
Table 4.2.2 : Shares of EAC members in intra-regional trade, 2009
Intra-regional trade in EAC
Amount (million US$) Share (%)
Kenya 1329 37
Uganda 946 27
Tanzania 640 18
Rwanda 497 14
Burundi 136 4
Source: EAC Trade Report 2009, own calculations
4.3 Achievements in doing business
Our analysis depends on the data extraction from World Bank Development Indicators between 2003
and 2010. First indicator is ‘’Progress in terms of time to start a business’’. The most remarkable
improvement was observed in Rwanda ( from 18 to 3 days) on the other hand the other fresh member
Burundi did perform badly. Starting business takes 24.6 days on average in the EAC. That average
used to be 37.2 in 2003.
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12. Second indicator is start up procedures to register a business as numbers. The average number of
procedures in the EAC was observed as 10.8 days which were 12.6 days in 2003. If we compare two
periods, we can argue that there haven’t been a remarkable increase in that field. Rwanda is again the
most liberal member while Uganda being the worst performer of all the EAC members.
Improvements in time to export and imports in terms of days were the last indicators. There have been
very important improvements, especially after customs union in 2005 and addition of new members in
2007 (Rwanda and Burundi). Time to exports has decreased from 45.4 to 33.9 days on the other hand
time to imports decreased from 68.6 to 38.8 days. Rwanda is again the champion (from 92 to 34
days). No changes was observed in Burundi.
Depending on the observations and findings which were briefly listed above, we can argue that the
liberalization attempts could slightly increase the ease of doing business within the EAC. Of all the
EAC members, Rwanda showed the biggest commitment in liberalizing its markets. On the other hand
Burundi showed a bad performance compared with others.
4.4 Achievements in tariff reduction & common external tariff & non tariff barriers
Tariff reduction is a major determinant for the EAC’s ambitions towards to a better integrated
community. The EAC declared a ‘Five Year Phase out Plan’ to reduce internal tariff rates to zero
percent before entering to the Customs Union in 2005. Therefore we wanted to analyze the internal
tariff reductions after 2005.
Table 4.4.1 : Tariff Reductions in the EAC between 2005 and 2010,(%)
2005 2006 2007 2008 2009 2010
Burundi 20 16 14 13 9 10
Tanzania 13 13 13 12 12 13
Uganda 12 12 12 12 12 12
Rwanda 19 19 19 19 10 10
Kenya 12 12 12 12 12 12
Source: World Bank, World Bank Development Indicators
According to the Table 4.4.1 which is constructed on the data that we obtained form world bank,
current tariff rates are around 10% . It is obvious that The ‘Five Year Phase out Plan’ which aimed to
reduce all internal tariff rates to 0 % have not been fully harmonized
We should also say some words on common external tariff structure. East African Customs Union
Protocol says: The Protocol establishes a three-band common external tariff: a minimum rate of 0%, a
middle rate of 10% and a maximum rate of 25% in respect of all products imported into the region4.
4
East African Customs Union Protocol, Part B, Article 12 (1),p 15
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13. Non-tariff barriers are still in existence in the EAC. Numerous institutions in order to test goods which
are subject to the trade and several roadblocks along northern and central corridors are just two general
and simple examples. Uganda’s ban on beef and beef products from Kenta might be a specific
example.
4.5 Achievements in capital movements
Capital movements are evaluated in two main groups. First group is inward direct investments.
Barriers in inward direct investments have fully lifted and currently no EAC member state has
restrictions in that. But the picture is different in outward direct investments. Outward direct
investments are not allowed in Tanzania. Additionally, outward investments in Rwanda and Burundi
are depended on the approval of the national central banks. But both of the new members that joined
to the EAC in 2007 are going to gradually eliminate that barriers.
Foreign direct investments in the region are in transportation, communication, tourism and energy. We
can obviously see that the FDI composition is matching well with the developing country context,
since the poor infrastructure is a major obstacle to the economic activities. Major investors in the
region are respectively: China, United Kingdom, Japan, India, Italy and the U.S.
Intra regional FDIs are not playing major roles in the EAC. It is share is less than 1% of total FDIs in
the region. A very remarkable finding that we extract from EAC Trade Report 2009 is that Kenya is
the dominant source of FDIs with its more than 90% share. The second surprising finding is almost all
of the Kenya’s FDI is shared by Uganda (66%) and Tanzania(31%), on the other hand new members
Burundi and Rwanda receive almost no intra-regional FDI.
4.6 Achievements in Common Markets - Labor
EAC established its common market in July 2010. Reflections fn the common market implementation
on Labor markets could not be eaisly captured so far. But all the members state, except Tanzania are
acting in line with the common market protocol in allowing the labor force to flow between members.
Tanzania on the other has a progressive implementation which will continue till 2015. According to
the EAC common market regulation annex all of the member states are allowing the flow of the high
skilled labor force in the region.
4.7 Achievements in the attempts towards East African Monetary Union (EAMU)
EAMU is aimed to be introduced on 1st June 2012. Monetary union is one of the intermediate mile
stones to the East African Political Federation. Besides the political motivation in further integration ,
there are other reasons too.
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14. Members want to facilitate weak intra-regional trade through harmonized payment systems and
strengthen the local characteristics of the trade patterns. Additionally, capital and financial asset
accumulation through investment flows is an important expectation. Defensive motives such as
monetary stability and resilience to external shocks can be also discussed as the other motives.
There are several requirements for the monetary integration which are listed under the OCA (Optimum
Currency Area) criteria We analyzed three major requirement in order to measure the current
achievements.
Table 4.7 Achievements in OCA criteria
Burundi Rwanda Uganda Tanzania Kenya
Annual Growth (2010)- % 4 8 5 7 5
Inflation (2010)- % 6 2 4 6 4
Inflation (October 2011)- % 13,3 7,8 30,5 16,8 18,9
Budget Deficit to GDP
15,6 13,7 7,9 11,2 8,8
Excluding Grants (2010)- %
Budget Deficit to GDP
2,6 1,6 4,8 6,2 5,3
Including Grants (2010)- %
Source: WTO, World Trade Report 2010, EAC, EAC Facts & Figures Report 2011,World Bank Development Indicators , Central
Intelligence Agency, own calculations
First requirement is inflation rate which has a upper threshold of 5%. According to the Table.4.7, there
is a tremendous increase in the inflation rates between 2010 and 2011 which is a very bad sign for the
inflation requirement.
Second requirement is growth rate which has a lower threshold of a 7%. This requirement also could
not be achieved by the EAC member states.
Budget deficits of 5% of the total GDP is the last requirement for the monetary integration. EAC
member states are only able to fulfill that requirement if they include grants to their calculations.
All in all, the requirements could not be fulfilled on the way to the monetary union which is aimed to
be established next. summer.
4.8 Achievements in political / defense pact
One of the political drivers behind the regional integration attempts in East Africa is defense pact. The
region has unstable power dynamics and disputes. EAC members are openly seeking a regional
stabilty and security.
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15. EAC community has been very active in the diplomatic relations with that particular issue. The
Nairobi Protocol for the Prevention, Control and Reduction of Small Arms and Light Weapons in the
Great Lakes Region, the Horn of Africa and Bordering States was signed in 2004 and has been
updated up to now. Additionally, the tripartite framework between EAC, COMESA and SADC covers
regional security issues in detail.
Finally, the ECA-EU trading relationship’s political dimension strongly supports moves towards
mutual defense pact in the East African Region.
5. Current debates
EAC has a very dynamic political nature. Current debates are on three main areas. One is about the
competition of having the determining role within the community. Big brothers Kenya and Tanzania
are involved. The second hot topic is the admission of Southern Sudan. It is highly likely that sooner
or later South Sudan will be the 5th member state of the community. In that case the candidacy of
Sudan seems to be on the table, despite the security concerns. The last ongoing debate is about the
direction of the regional integration. Monetary Union is aimed to established just in months and there
are big still big concerns among the members.
6. Main challenges & Constraints
There are several challenges and constraints to the regional integration process in East Africa. We can
classify that challenges in two main groups. First groups is trade related challenges and the second one
is non trade related challenges.
6. 1 Trade related challenges
Poor infrastructure is an obstacle to the regional trade because of the lack of required facilities. A good
example would be the road blocks in the main trade destinations of the region.
Although ECA countries reached to the common market level in the regional integration, they have
failed to remove tariff barriers. Additionally the non –tariff barriers are still existing. At that point, we
can also talk about the lack of political will towards lowering the tariff rates and it also seem that there
is lack of clear guidelines regarding the implementation of trade liberalization. Lastly lack of
compatibility with the WTO rules is also a result all of the mentioned tariff harmonization processes.
The composition of the trade and the dominant share of the imports in the trade balance is an obstacle
to the opportunities for intra-regional trade. EAC imports almost twice as much as it exports. Again
the components of the export goods are very simple. EAC exports mainly primary and non processed
goods and imports finished consumer goods.
Another trade related structural problem is lack of diversification in the production and its negative
effects on the intra-regional trade.
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16. 6. 2 Non-trade related challenges
Production patterns in the EAC are very simple an dependent. Lack of economic diversification and
entrepreneurship are not allowing to build up intra-sectoral linkages in manufacturing and benefit from
the regional integration.
Resources could not get mobilized by large amounts as it is expected in the regional integration
context. Again we can stress on the infrastructural problems . Low level of capital availability in the
regional banking systems , except Kenya might be a major reason behind that challenge.
High inflation rates in all of the member states might become to a very big challenge for the upcoming
monetary union. Therefore it is vital for the EAC to wait till every country fulfill that particular
requirement related with inflation rate.
Irregular migration, especially from poor to reach regions might be an important threat for the
developing EAC countries. Under the large informal sector conditions, majority of the immigrants are
potential candidates for the black market employment opportunities and cause socio-economic
problems.
Finally, overlapping memberships in different regional integration blocs is making the coordination
and regional cooperation harder for the EAC member countries.
7. Opportunities
With its more than 100 year old historical background, current achievements and ambition towards
political federation, EAC might overcome the challenges in the long run and enjoy the benefits of free
movement of persons, capital labor goods and services.
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17. References
 East African Community, 2011, Facts and Figures Report, available at:
http://www.eac.int
 EAC Development Strategy 2006- 2010. Executive Summary, available at:
http://www.eac.int/index.php
 Treaty Establishing the East African Community, Art. 7(c), available at:
http://www.eac.int.
 Worl Bank Development Indicators,2011, available at:
http://data.worldbank.org/indicator
 Gathii, James Thuo ,2011, African Regional Trade Agreements as Legal Regimes,
Cambridge University Press, New York
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