More than 40% of the total budget expenditure of the East African Community is largely dependent on donor funding. The Community has budgeted for about 100 million USD for the 2018/2019 Financial Year.
Some of the partner states failed to fulfill their remittance obligations to the block. Burundi is indebted to a tune of 8.9 million USD, it did not make any remittances to the Community for the 2017/2018 Financial Year.
South Sudan has not made its contribution of 7.3 million USD. “The total balance Rt. Hon. Speaker is 19,741,027 dollars for the Community, so the average is at 62%. This is a lot of money Rt. Hon. Speaker.” Said, Susan Nakawuki – Uganda Representative, EALA.
This failure by partner states to make their contribution has resulted in donor dependence. “We have not been thinking outside the box that we continue to be vulnerable even if our continent is rich.” Said, Mary Mugyenyi – Uganda Representative, EALA.
Now lawmakers of the East African Legislative Assembly are concerned that this state of affairs is inviting Western powers and Asian Tigers to recolonize the region through donations with strict conditions attached.
“But I’m worried that we are going to be colonized again even if we are trying to struggle to come together as a United Community of East Africa.” Said, Paul Musamali – Uganda Representative, EALA. “Otherwise there is a high risk that these people from outside are not happy when people are united.” Said, Jean Marie Muhirwa – Burundi Representative, EALA.
They are demanding for a speedy funding mechanism to reduce donor dependence. “Self-reliance, self-financing is the way to go and alternative financing mechanism is of paramount importance.” Said, Fatuma Ndagiza – Rwanda Representative, EALA.
“So this is a serious matter, we need to look into the ownership of these projects by funding them ourselves and also ensuring sustainability.” Said, Rose Akol – Uganda Representative, EALA.
However, Uganda’s State Minister for East African Affairs Julius Maganda revealed that a proposal for a levy on imports has been mooted as an alternative funding measure to deal with the problem.
“If you look at ECOWAS, they have a mechanism where they deduct a percentage of a levy on imports into the region. The African Union also has a percentage deducted on the partner states and the same is also applicable to the European Union.” Said, Julius Maganda – State Minister for EAC Affairs, Uganda.
The challenge, however, is that some economies are stronger than others but Maganda said such concerns are being addressed in the study that will help partner states also use the same money to meet other international obligations.
“Like if you have a contribution to UN, a contribution to AU; the money will definitely move and circulate.” Said, Julius Maganda – State Minister for EAC Affairs, Uganda.The proposal has been on the table since 2014 but there has been no action towards its implementation.
