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South Sudan is EAC’s biggest debt defaulter

Author: Chany Ninrew | Published: Sunday, December 18, 2022

Map of the East African Community Member-states. (Photo: Courtesy).

South Sudan is the biggest defaulter of financial contributions to the East African Community, with arrears of $22 million, according to a report by The East African.

The Kenyan newspaper also established that Burundi is the second biggest debtor owing the community at least $5 million in arrears.

An Audit Commission report prepared by the regional parliament, indicates that the bloc continues to grapple with various challenges blamed on poor funding due to delayed or non-remittance of funds by partner states.

The East African understands that South Sudan owes the EAC $29.4 million, while Burundi owes $12.4 million, Rwanda $3.6 million, Uganda $3.4 million, Tanzania $1,915 and Kenya $20.

In August 2022, Juba reportedly managed to clear nearly $15 million of its arrears while Burundi paid $2.4 million between July 2022 and September 2022.

“..Now, 10 years down the road, the community is still grappling with the issue of funding. The Council (of Ministers) should address this matter once and for all… This is urgent,” Suzan Nakawuki, a member of EALA from Uganda told The East African.

She says the situation has persisted the past decade, blaming it on lack of political will and general lack of resources among member states to finance their integration goals.

According to the Kenyan media, the EAC member states’ annual contributions have seen a 25% increase over the last five years, from $41.9 million in 2016/2017 to $52.8 million in 2020/2021.

This is in the backdrop of diminishing contributions, leading to an increase in outstanding balances from $7.8 million in 2016/2017 to $14.9 million in 2020/2021.

Manpower and human resources remain a major challenge at the EAC according to the audit report which cites slow and lengthy recruitment exercises.

The report indicates that several vacant positions remain unfilled thus affecting the implementation of the community’s programmes and activities.

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