Why oil should not be EAC’s curse

There must also be direct benefits to those living on the land that is yielding fossil fuels, rewarding them for their property, separately from the royalties going to the government, in order to empower individuals, not just the state. It is people, not governments, who create economic activity.

Governments must also remove the obstacles to creating and running businesses so everyone can benefit from the promised EAC free market.

Right now EAC members, except very low-ranked Burundi, are within the top third of the World Bank’s Ease of Doing Business list for sub-Saharan Africa — but even the best, Rwanda, is only just within the top third worldwide.

EAC members must live up to their promises of allowing region-wide free trade and movement for all products and services, so efficient markets can develop rapidly, not just in oil.

Energy could drive robust and sustainable economic growth in East Africa but only if coupled with economic freedom, lower corruption and better business conditions for all.

The big bucks of energy could help open up the EAC Common Market, which starts on July 1, and remove some of the world’s highest tariff barriers, or they could become entangled in state meddling and cronyism.

The energy bonanza can be a blessing instead of the resource-curse that has propped up repressive regimes and impoverished so many Africans.

Kasita is a Uganda-based journalist.