Edward Kitonisa [standing], from EAC - Directorate of Planning explaining the implementations of CMP to regional journalists in Arusha, Tanzania - credit: EAC - Nov. 29, 2022

Key commitments and achievements in the East Africa common market protocol have been met especially on the five freedoms and two rights, according to a senior official with the regional block.

Edward Kitonisa, an official from the Directorate of Planning at the EAC disclosed this during a presentation on the implementation of the Common Market Protocol at media training for regional journalists on Monday.

He pointed out that the common market protocol covers five freedoms and two rights.

The FIVE freedoms include the free movement of persons and workers, services, goods, and capital, while the TWO rights include the right of establishment and right of residence.

The FIVE Freedoms

1. Free Movement of Goods

This freedom is meant to eliminate tariffs on intraregional trade, implement a common external tariff, remove non-tariff barriers, harmonize and mutually recognize standards and technical barriers to trade among other commitments.

Status of Implementation

The Partner State has eliminated internal tariffs on goods originating from within the EAC.

They have adopted and are implementing common Rules of Origin, adopted and are implementing the Customs Law of the Community.

The community adopted and is implementing the EAC Elimination of Non-Tariff Barriers Act, of 2017 (NTBs), adopting and implementing the Standardization Quality Assurance Metrology and Testing Act.

The EAC also adopted a four-band CET structure of 0% for raw materials, 10% for intermediate goods, 25% for finished goods not available in the region, and 35% for finished goods available, a Second Schedule is maintained for products that attract a rate above 35%.

They adopted the Sanitary and Phytosanitary (SPS) Protocol, adopted and are implementing Single Customs Territory.

2. Free Movement of Capital

The partner states have about 20 operations related to securities, direct investments, credit operations, and personal capital operations that are required to be free of restrictions in accordance with Annex VI.

Status of Implementation

The Partner States have achieved a significantly high degree of capital account openness since the signing of the CMP by eliminating substantial restrictions on the free movement of capital within the region.

The community established the East African Stock Exchanges Association (EASEA) in order to deepen and integrate capital markets in the region.

They also harmonized their national laws and regulations in securities markets in order to achieve an effective functioning of a single capital market in financial services.

The community established the EAC Capital Markets Infrastructure (CMI) which offers a digital financial platform for integrating capital markets in the region.

To date cross-listing of shares is gaining ground and has increased private capital flows within the region.

3. Free Movement of Services

The community is committed to liberalizing 7 sectors that is, Business, Communications, Distribution, Education, Financial, Tourism and Travel, and Transport in accordance with Annex V.

Partner States also committed not to introducing new restrictions, and to eliminating existing ones.

Status of Implementation

The Partner States have removed some sector-level and cross-cutting restrictions in laws and regulations relating to trade in services.

Also, to facilitate the movement of professionals, Partner States have concluded Mutual Recognition Agreements (MRAs) in accounting, engineering, architecture, and veterinary services which have facilitated the movement of these professionals across the region.

Various laws and regulations to govern freight transportation amended include, the EAC Vehicle Load Control Act, 2016; the EAC Vehicle Load Control (Vehicle Dimensions and Axle Configurations) Regulations, 2018; EAC Vehicle Load Control (Enforcement Measures) Regulations, 2018 and the EAC Vehicle Load Control (Special Loads) Regulations, 2018.

Under Tourism: East African Tourism Platform was established to promote the interest and participation of the private sector in the EAC integration process.

4. Free Movement of Workers

This is meant to facilitate citizens of other Partner States to work in their territories in the worker categories provided in Annex II and to mutually recognize academic and professional qualifications, licenses, or certifications granted in other Partner States.

Status of Implementation

The Partner States have guaranteed the free movement of workers, who are citizens of the other Partner States, within their territories.

The workers are provided with work/residence permits in the context of the Protocol and established a collaborative mechanism of social dialogues and enhanced the working relationship with tripartite partners.

These include Labour Unions and Employers’ associations.

At a regional level, there are working arrangements with the East African Trade Union Confederation and East African Employers Association.

5. Free Movement of Persons

The community guarantees the free movement of persons who are citizens of the other Partner States, within their territories subject to public policy, security or health limitations.

Status of Implementation

The Partner States have worked for the removal of the requirement for visas for entry of citizens of other EAC Partner States.

They also facilitated the movement of persons in their territories, as well as facilitated students admitted to training establishments in a host Partner State without visa fees.

The community has adopted an ICAO-compliant EA electronic-Passport to replace the national machine-readable passports.

The Two Rights

1. Right of Establishment

This right entitles nationals of other Partner States to take up, and pursue economic activities as self-employed persons, set up, and manage economic undertakings in the territory of another Partner State.

2. Right of Residence

These are citizens of the other Partner States who have been admitted into their territories.

Status of Implementation

Right of establishment

The value of cross-border investment in the Community has gradually increased from US$ 190 million in 2010 to US$ 583 million in 2021.

Also, the annual number of projects registered under Investment Promotion Agencies has ranged between 54 and 91 over the last eleven (11) years.

Right of Residence

All Partner States issue residence permits to workers and self-employed persons who qualify in accordance with Article 14 of the EAC Common Market Protocol.

This right is also accorded to the spouse, child, and dependents of a worker or self-employed person.