Investors tipped on how to exploit opportunities in EAC

All goods trading across the region are now duty-free.

To consolidate the gains of the customs union, EAC member states signed the EAC Common Market Protocol last November as the second stage of the EAC integration process.

The protocol was signed by Presidents Paul Kagame (Rwanda), Mwai Kibaki (Kenya), Yoweri Museveni (Uganda), Pierre Nkurunziza (Burundi), Jakaya Kikwete (Tanzania) and Abeid Amani Karume (Zanzibar) at a ceremony in Arusha, Tanzania.

The common market is pursued on the basis that a market with a combined population of over 130 million people will be easier to sell as an investment, trade or travel destination instead of a constellation of five tiny and poor countries.

To achieve the full benefit of a common market, four freedoms have been enshrined in the protocol setting up the market.

The first is the freedom of movement of goods thanks to the elimination of all tariff and non-tariff barriers plus a common external tariff.

The second freedom is that of movement of labour (salaried and non-salaried workers), thanks to the elimination of all restrictions to their entrance and residence in other member states.

The third is the freedom of establishment of persons and companies in the territory of any member state and of the provision of services by them in the host country.

Then there is the freedom of capital movement for business or personal purposes, favouring professionals, as they will be free to open up new offices in other member countries without seeking additional approvals.

The July 8-9 conference will seek to distil how businesses can take advantage of the four freedoms to maximise on their return.