Failure to sign the deal as a bloc will result in new taxes on produce entering the EU market from Kenya, the East African Community’s (EAC) only developing state.
The landmark decision by the UK to quit the European Union (EU) has complicated Kenya’s quest to woo Tanzania and Uganda into signing the Economic Partnership Agreement (EPA).
Failure to sign the deal as a bloc will result in new taxes on produce entering the EU market from Kenya, the East African Community’s (EAC) only developing state.
In refusing to sign the deal, Tanzanian President John Magufuli has described EPA as a “form of colonialism”, putting into doubt the country’s chances of signing the deal.
His Ugandan counterpart, Yoweri Museveni, warned African countries that EPA might break up their unity.
“I think Brexit presents an opportunity for Tanzania and Uganda to negotiate a better deal with the UK outside the EU and has reduced the incentive for them to sign up to the EPA right away,” Edward George, head of group research at Ecobank, told Business Daily.
“Kenya and Rwanda both have reasons for wanting to sign now, and they will need to convince their EAC partners to change their minds. But for now, there is a split in the EAC on the EPA issue.”
The new head of Ecobank UK in London spoke in Nairobi when the lender released its macroeconomic outlook for the for central, eastern and southern Africa region.
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Note: The results are not exact but very close to the actual.
