THE UNITED REPUBLIC OF TANZANIA MINISTRY OF EAST AFRICAN COOPERATION SPEECH BY THE MINISTER FOR THE EAST AFRICAN COOPERATION, HON. SAMUEL J. SITTA, MOVING IN PARLIAMENT THE REVENUE AND EXPENDITURE ESTIMATES FOR THE MINISTRY OF EAST AFRICAN COOPERATION FOR THE YEAR 2012/2013 The New Headquarters Building of the East African Community; Arusha Dodoma. August, 2012 i “We are better off in a larger economic setting. We are strong in a larger political grouping” H.E Dr. Jakaya Mrisho Kikwete, President of The United Republic of Tanzania, in his Speech to the Extraordinary Summit of the EAC Heads of State on the 19th April 2011 i ii MEAC LEADERSHIP Hon. Samuel J. Sitta (MP) MINISTER Hon. Dr. Abdullah J. Abdullah DEPUTY MINISTER Dr. Stergomena L. Tax PERMANENT SECRETARY Mr. Uledi A. Mussa DEPUTY PERMANENT SECRETARY iii TABLE OF CONTENTS LIST OF ABBREVIATIONS 1 2.0 REVIEW OF IMPLEMENTATION OF THE PLAN FOR 2011/2012 9 2A: Objectives of the 2011/2012 Plan 9 2B: POLICIES AND STRATEGIES 13 2B1: The National Strategy on Regional Integration: 13 2B2: The National Strategy for Implementation of the EAC Common Market 14 2B3: The EAC Industrial Development Policy and Strategy 17 2B4: Gender and Social Development Policy: ......................... 2C: IMPLEMENTATION OF THE REGIONAL INTEGRATION PHASES 19 2C1: Implementation of the Customs Union Protocol 20 2C2: The East African Common Market 36 2C3: Establishment of the East African Monetary Union 39 2C4: The East African Political Federation 43 2D: COOPERATION WITH OTHER REGIONAL ECONOMIC COMMUNITIES 44 2D1: The COMESA, EAC and SADC Tripartite Arrangement 44 iv 2D2: The EAC – EU Economic Partnership Agreement 46 2E: COOPERATION IN THE PRODUCTIVE SECTORS 2E1: Food Security 47 47 2E2: Joint Investment Promotion Conferences........................ 2E3: Informal Sector Exhibitions 49 2E4: Tourism and Wildlife 50 2E5: The East African Community Single Tourist Visa 50 2F1: The East African Road Network 53 2F2: Transport Strategy and Program Development in the Road Sector: 57 2F3: The East African Rail Network: 58 2F4: Development of Marine Transportation and Ports 59 2F5: The Civil Aviation Sector 59 2F6: The Energy Sector 60 2F7: Communications Sector 64 2F8: Construction of the New EAC Headquarters: 66 2G: SOCIAL SERVICES SECTORS 2G1: 66 Education, Culture and Sports, Health and Science 66 2G2: The East African Kiswahili Commission ........................ 2G3: Environmental Protection v 70 2H: COOPERATION IN POLITICAL, PEACE AND SECURITY ISSUES:.................... 76 2H1: Regional Strategy on Peace and Security………………………………. 77 2H2: Harmonisation of Policing Operations: ......................... 2H3: The Fight Against Drug Abuse: 78 2H4: Countering Terrorism: 78 2H5: The Protocol on Peace and Security 79 2H6: Protocol on Cooperation in Defence 80 2H7: Joint Military Exercises 80 2H8: Cooperation in Political Affairs 81 2H9: Applications to Join the Community 83 2I THE EAST AFRICAN COURT OF JUSTICE: 85 2J: THE EAST AFRICAN LEGISLATIVE ASSEMBLY 85 2K: PARTICIPATION OF THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR 87 2K1: Zanzibar Projects 2L: AWARENESS CREATION AND SENSITIZATION 87 88 2M: ADMINISTRATION AND HUMAN RESOURCES DEVELOPMENT 91 2M1: Capacity Building 91 2M2: Cross Cutting Issues 92 2M3: Workers’ Participation in Decision Making .................... 2N: FINANCIAL MANAGEMENT vi 93 2P: CONTRIBUTION TO THE EAST AFRICAN COMMUNITY 94 3.0 CHALLENGES AND MEASURES BEING TAKEN TO MITIGATE THEM 96 4.0 ACTIVITIES TO BE IMPLEMENTED IN FISCAL YEAR 2012/2013 99 5.0 FUNDING REQUEST FOR FINANCIAL YEAR 2012/2013 104 vii LIST OF APPENDIXES 1. APPENDIX 1: Trends of Partner States Exports in the EAC,2005 - 2011 (US$ Million).......................106 2. APPENDIX 2: Trends of Partner States Imports in the EAC, 2005 – 2011 (US$ Million)......................107 3. APPENDIX 3: Trends of Total Intra-EAC Trade 2005-2011 (US$ Million)..............108 4. APPENDIX 4: Tanzania’s Balance of Trade with other EAC Partner States 2005-2011 (US$ Million)..............109 5. APPENDIX 5: Investment Inflows into Tanzania from other Partners States (Number of i Projects and Value in US$ Million).....................110 6. APPENDIX 6: Tanzania’s Leading Sectors in Attracting Regional Investors (Number and Value in US$ Million)...............111 7. APPENDIX 7: Leading Sectors in Job Creation 2005-2011…113 8. APPENDIX 8: The East African Road Network......................114 9. APPENDIX 9: The East African Railway Network.........116 10. APPENDIX 10: Cases Adjudicated By the East African Court Of Justice 2010/2011.................118 11. APPENDIX 11: Bills and Resolutions Adopted by the EALA..130 ii 12. APPENDIX 12: Positions Filled Through Appointments and Recruitment 2011/2012.................133 13. APPENDIX 13: Confirmed Staff 2011/2012.................134 14. APPENDIX 14: Staff Confirmations............135 iii LIST OF ABBREVIATIONS ACBF AIDS AWEPA BAT COMESA DFID DMI EAC EPA FEPA FSDRP FYDP GIZ GNSS HIV ICF ICT IPPFAR African Capacity Building Foundation Acquired Immunodeficiency Syndrome The Association of European Parliamentarians for Africa British American Tobacco Common Market for Eastern and Southern Africa Department for International Development Dar es Salaam Maritime Institute East African Community Economic Partnership Agreement Framework for Economic Partnership Agreement Financial Sector Development and Regionalization Project Five Years Development Plan Gesellschaft für Internationale Zusammenarbeit Global Navigation Satellite System Human Immunodeficiency Virus Climate Facility for Africa Information and Communication Technology International Planned Parenthood 1 LVEMP LVWATS AN MCC MFN MKUKUT A MRHI MUCCoB s NELSAP OPRAS OSBPs REA RORO SADC TANESC O TASUBA TMEA UNIDO Federation Africa Region Lake Victoria Environnemental Management Program Lake Victoria Water and Sanitation Project Millennium Challenge Corporation Most Favoured Nations Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania (The National Strategy for Growth and Reduction of Poverty - NSGRP) Medicines Registration and Harmonization Initiative Moshi University College of Cooperative and Business Studies Nile Equatorial Lakes Subsidiary Action Programme Open Performance Review and Appraisal System. One Stop Border Posts Rural Energy Agency Roll on Roll Off Southern Africa Development Community Tanzania National Electric Company Limited Taasisi ya Sanaa na Utamaduni Bagamoyo TradeMark East Africa United Nations Industrial 2 WAMA WTO YD ZECO Development Organization Wanawake na Maendeleo World Trade Organization Yamoussoukro Declaration Zanzibar Electric Company Limited 3 VISION AND MISSION OF THE MINISTRY Vision: To have a prosperous Community in which Tanzania benefits socially, economically and politically. Mission: To ensure effective participation of Tanzania in building a prosperous EAC while safeguarding national interests. Core Values: Integrity Respect Empowerment Accountability Customer Focused Result Oriented Transparency Impartiality Team Work MOTTO Always working to Standards and with Speed 4 SPEECH BY THE MINISTER FOR EAST AFRICAN COOPERATION, HON. SAMUEL J. SITTA (MP), MOVING IN PARLIAMENT THE REVENUE AND EXPENDITURE ESTIMATES FOR THE MINISTRY OF EAST AFRICAN COOPERATION FOR THE YEAR 2012/2013 1.0 INTRODUCTION: 1. Honourable Speaker, following the Report of the Parliamentary Committee on Foreign Affairs, Defence and Security, presented in your Esteemed Parliament, about the Ministry of East African Cooperation, I beg to move that your esteemed House receives, discusses and approves the Revenue and Expenditure estimates of the Ministry of East African Cooperation for the year 2012/2013. 2. Honourable Speaker, recently, the nation was gripped in deep sorrow following the accident of MV. Skagit that occurred near Chumbe Island in Zanzibar. I wish to use this opportunity to join my colleagues, the Honourable Members of Parliament and Tanzanians in general in extending condolences to families, relatives and friends of the passengers who died following the accident. May 5 the Almighty God rest their souls in eternal peace in heaven. Amen. Similarly, we pray for the injured a fast recovery so as to continue with their nation building obligations. 3. Honourable Speaker, during the year 2011/2012 your Esteemed House elected representatives of the United Republic of Tanzania to the East African Legislative Assembly. Let me take this opportunity to congratulate the House for running the election so successfully. I also wish to congratulate the elected Members of the EALA, namely Hon. Abdulah Alli Hassan Mwinyi (MEALA); Hon. Alhaji Adam Kimbisa (MEALA.); Hon. Angela Charles Kizigha (MEALA.); Hon. Bernard Musomi Murunya (MEALA); Hon. Charles Makongoro Nyerere (MEALA); Hon. Nderkindo Perpetua Kessy (MEALA); Hon. Maryam Ussi Yahaya (MEALA); Hon. Shy Rose Banji (MEALA.); and Hon. Dr. Twaha Issa Taslima (MEALA). We, the Members of this Parliament, are confident that the team will effectively represent and fend for our nation’s interests in the Community. 4. Honourable Speaker, I thank you personally and your office for the cooperation you extended to us in the preparation of the Terms of Reference for a System to Promote the Performance and Accountability of the Members of the East 6 African Legislative Assembly to the Parliament of Tanzania. The system will enable this Parliament to receive regular updates on the evolution of the East African integration, and the performance of our representatives in the EALA. Moreover, I thank you for facilitating and participating in the induction Seminar for the new Members of the EALA that was held at Kunduchi, Dar es Salaam from 23 – 24 May, 2012. I also thank the Members of the Parliamentary Standing Committee on Foreign Affairs, Defence and Security as well as the Chairpersons of all other Standing Committees for their participation and valuable contributions at the seminar. Similarly, I thank the technical staff from the Ministry of East African Cooperation, under the very able leadership of the Permanent Secretary, Dr. Stergomena L. Tax and the Clerk to the National Assembly, Dr. Thomas D. Kashililah, for the excellent preparations for the seminar. 5. Honourable Speaker, in the case of the Members of the Second EALA who have completed their term, I wish to congratulate them for a commendable job that they did in the Assembly, and I wish them the best in their new roles. Honourable Margaret N. Zziwa, the Member of the EALA from Uganda, who was elected the Speaker of the EALA is the first woman to that position. Through this esteemed House, allow me to thank and wish the former Speaker Hon. Abdi success in his retirement. 7 6. Honourable Speaker, I thank the Parliamentary Standing Committee on Foreign Affairs, Defence and Security for receiving, discussing and providing valuable inputs to the preparations of my Ministry’s Revenue and Expenditure Estimates for the year 2012/13. I wish to assure your esteemed House that my Ministry would take into account the advice and observations of the Committee. 7. Honourable Speaker, in preparing this speech, the Ministry took cognisance of the Statement of the Prime Minister, Honourable Mizengo Kayanza Peter Pinda (MP), when presenting his Office’s Revenue and Expenditure estimates for the year 2012/2013 in this House. In addition, this speech has also benefitted from the presentation on the State of the Economy for 2011 and National Development Plan for 2012/13 by the Minister of State, President’s Office, Social Relations and Coordination, Hon. Stephen Masatu Wasira (MP), and that of the Government’s Revenue and Expenditure Estimates for 2012/2013 by Hon. Dr. William Mgimwa (MP), the Minister for Finance. I thank the Ministers for their excellent speeches that articulated so well the direction of Government activities and the vision of the National Budget for Fiscal Year 2012/2013. 8 8. Honourable Speaker, I sincerely thank my colleagues in the Ministry of East African Cooperation, Hon. Dr. Abdullah J. Abdullah (MP), the Deputy Minister; Dr. Stergomena L. Tax, the Permanent Secretary; Mr. Uledi A. Mussa, Deputy Permanent Secretary; the Heads of Departments and Divisions; and all other staff for the excellent cooperation extended to me. I congratulate them for responding so positively to my call to observe standards, speed, integrity, and patriotism in their discharge of public functions. My Ministry enjoys unity and harmony, and has an unusually dedicated staff. 9. Honourable Speaker, to conclude this introduction, I thank the Chief Government Printer for printing this speech accurately and within time. 2.0 REVIEW OF IMPLEMENTATION OF THE PLAN FOR 2011/2012 2A: Objectives of the 2011/2012 Plan 10. Honourable Speaker, the Ministry had planned to implement the following during the 2011/2012 financial year: (a) To finalize the National Policy on Regional Integration; 9 (b) To finalize the National Strategy and Plan for the Implementation of the EAC Common Market; (c) To coordinate and lead regional negotiations leading to conclusion of the Monetary Union; (d) To coordinate and finalise the rationalisation of national laws, regulations and procedures relevant to the implementation of the EAC Common Market Protocol; (e) To coordinate the development of economic and social infrastructure within East Africa; (f) To coordinate the implementation of sectoral programs in the economic, social and productive sectors under the EAC auspices; (g) To coordinate and lead Tanzania’s participation in regional negotiations on Community Protocols and Legislations; (h) To coordinate and participation in the negotiations; (i) To coordinate and lead Tanzania’s participation in the COMESA-EAC-SADC Tripartite Arrangement negotiations; 10 lead Tanzania’s EAC-EU EPA (j) To continue the implementation of the National Public Awareness and Sensitization Master Plan on EAC Regional Integration; (k) To finalise the identification of and analysis of the challenges to EAC Political Federation; (l) To coordinate and take part in other political and good governance initiatives in the region; (m) To coordinate the implementation of the Regional Strategy on Peace and Security; and (n) To build the Ministry’s operational capacity. 11. Honourable Speaker, the implementation of these functions was guided by the National Development Vision (2025), the Five Year Development Plan (2011 – 2015), the National Strategy for Growth and Reduction of Poverty (NSGRP or MKUKUTA II), the National Agriculture Development Initiative (Kilimo Kwanza), the CCM Election Manifesto of 2010, the Treaty for the Establishment of the East African Community and its Protocols, the EAC Development Strategy, and the decisions and guidance of the EAC Summit of Heads of State and Council of Ministers. 11 12. Honourable Speaker, besides the National Vision, Policies and Plans referred to herein, we have also deliberately referred and reflected the Ministry's Vision, Mission and Motto in this speech. We have done so because we believe that the people who sent us to this Parliament will not believe in us if they observe that we do not have a Vision and a Mission. The late Frantz Fannon, a renowned African scholar and writer, once stated as follows in this regard: “Each generation must, out of relative obscurity, discover its mission and fufill it” The Father of the Nation, Mwalimu Julius Kambarage Nyerere, implored us that "Play your Part; it can be Done". Thus, let us all cooperate in building a prosperous and vibrant East African Community. It can be Done. 13. Honourable Speaker, during the financial year 2011/2012, the Ministry was allocated TZS 17,447,397,654, of which TZS 1,154,756,354 was for meeting Personal 12 Emoluments expenses and TZS 16,292,641,300 Other Charges. The Other Charges component includes TZS 11,016,151,636 earmarked for Tanzania’s contribution to the Community’s budget. As on the 30th June 2012, the Ministry had received TZS 17,446,428,648, equivalent to 99% of the approved budget. 2B: POLICIES AND STRATEGIES 2B1: The National Strategy on Regional Integration: 14. Honourable Speaker, I am glad to report to this august House that the Ministry finalised the formulation of a National Policy on Regional Integration. The Ministry has submitted the Draft Policy for Government consideration and approval. Similarly, during the year, the 4th EAC Development Strategy (2011/12 – 2015/16) was finalised and adopted under the coordination and leadership of the Ministry of Tanzania’s participation. Priority areas under the Strategy include the mutually beneficial implementation of the EAC Common Market Protocol, elimination of Non-Tariff Barriers to intra-regional trade, and involvement of the private sector and civil society in the integration process. 13 2B2: The National Strategy for Implementation of the EAC Common Market 15. Honourable Speaker, the Ministry also finalised the National Strategy for Implementation of the EAC Common Market during the year. The Strategy shall guide national efforts in beneficially implementing the relevant Protocol. The Strategy identifies the opportunities for our country arising from the EAC Common Market, Tanzania’s capacity to harness those opportunities, and the challenges that we must address in order to increase our ability to utilise those opportunities. The Strategy also shows clearly the strategic areas and sectors in the market liberalisation process agreed in the Protocol, especially regarding trade in goods and services, employment, and movement of capital. The Ministry shall continue to monitor closely the implementation in these strategic areas. 16. Honourable Speaker, the areas outlined in Strategy include the following: (a) Liberalisation of Trade in Goods: the identified strategic interventions include development of agriculture, agro-processing industries, expansion and modernisation of 14 infrastructure that links Tanzania with the EAC Partner States as well as Central and Southern Africa. The respective infrastructure includes Roads, Railways, Ports and Electricity; (b) Liberalisation of Trade in Services: Emphasis is being placed on developing infrastructure for Information and Communication Technology (ICT), upgrading skills in the tourism sector and copy rights laws; (c) Liberalisation of Labour Market: To enable Tanzanians to compete in the labour market, the strategy focuses on the improvement of the quality of education, skills, and professionalism of human resource, especially for the liberalised professions, and establishment of a mechanism that enables wider publicity of available employment opportunities in the media; (d) Liberalisation of Capital Market: Tanzania’s capital market remains rather young and shallow. The Strategy, therefore, emphasises reform of the legal and regulatory 15 framework of the capital market to facilitate broader participation of the people in the said market, to develop and deepen the financial market and ease the availability of capital; and (e) The Right of Establishment: In this area, the Strategy puts emphasises on rationalisation of laws and simplification of procedures for setting up businesses as well as maintaining conducive environment for attracting serious investors. 17. Honourable Speaker, this Strategy aims at coordinating and collating the sectoral programmes towards encouraging and enabling Tanzanians to effectively take advantage of the regional opportunities in the EAC Common Market and thereby benefit from the regional integration process. For this purpose, the Strategy identifies the various stakeholders and their respective roles. The Ministry is in the process of finalising the Monitoring and Evaluation Framework for evaluating the efficacy and impact of the Strategy on the implementation of the EAC Common Market Protocol. 18. Honourable Speaker, in accordance with established procedures, the Strategy is 16 expected to be adopted by the Government in the financial year 2012/2013. I wish to reiterate our request and advice to all Sectoral Ministries to prepare sectoral plans for effective implementation and maximisation of benefits to our nation in their areas of competence and jurisdiction. 2B3: The EAC Industrial Development Policy and Strategy 19. Honourable Speaker, industrial development in the EAC region is one of the areas accorded a high priority in the regional integration process. Article 80 (1) of the EAC Treaty directs Partner States to formulate an Industrial Development Strategy in order to increase industrial production in the region. An EAC Industrial Development Policy and an Industrial Development Strategy were finalised and approved by the EAC Council of Ministers in November 2011. The Partner States are now implementing the Policy and Strategy, including preparation of the Terms of Reference for developing plans for industrial development, technology, and innovation. 20. Honourable Speaker, in an effort to develop industrialisation, the Community has collaborated with the United Nations Industrial 17 Organisation (UNIDO), under the EAC - UNIDO Industrial Upgrading and Modernization Programme, to prepare an Action Plan for modernising the region’s industries to match the market’s products and technological development needs. 2B4: Gender and Social Development Policy: 21. Honourable Speaker, during the year 2011/2012, the Ministry coordinated and participated in the negotiations leading to finalisation of the Draft EAC Policy on Persons with Disabilities. The Policy aims at empowering people with disabilities to participate effectively in EAC programmes. 22. Honourable Speaker, the Ministry also coordinated negotiations on the development of the Youth Policy. Negotiations in this regard are to be finalised in the financial year 2012/2013. Likewise, the Ministry coordinated and participated in the formulation of the Child Policy, the Gender Policy, and the EAC Social Protection and Social Welfare Policy. The primary objective of these policies is to ensure that all East Africans benefit from the Community. Moreover, the Ministry coordinated the preparation of an EAC Social Development Framework that, upon completion, will serve as 18 a guide for mainstreaming social development issues in the Community. All these initiatives will come to completion in financial year 2012/2013. 23. Honourable Speaker, these Strategies are essential for taking full advantage of the economic, social and political opportunities in the Community, as well as meeting the challenges of the future. The former U.S. President, John F. Kennedy, in this context, said as follows, and I quote: “Change is the law of life. And those who look only to the past or the present are certain to miss the future” 2C: IMPLEMENTATION OF THE REGIONAL INTEGRATION PHASES 24. Honourable Speaker, regional integration is unavoidable, in this Century, in which the global economy is driven by competition arising from globalisation that has transformed the world into a single village. Participation in Regional Integration Schemes is critical for building national capacity to manage the economic, social, technological, and political 19 challenges of a globalised world. In short, a nation that is still underplaying the importance of regional cooperation is positioning itself for failure in its search for rapid social and economic development. 2C1: Implementation of the Customs Union Protocol 25. Honourable Speaker, Paragraph 49(c) of the CCM Election Manifesto of 2010, requires the Government to establish strong national industrial, trade, and marketing frameworks and capacities to promote and increase exports. In implementing this directive in 2011/2012, the Ministry continued with coordination of the implementation of the EAC Customs Union Protocol, in which significant progress has been made particularly through increased exports to the region and thereby enhancing employment investment, and production in the country. 26. Honourable Speaker, Tanzania’s exports to the regional market continues to grow year after year. In the period 2010, exports increased by 62.3 %, from USD 285.0 million in 2009 to USD 462.7 millions in 2010. Nevertheless, preliminary statistics for the year 2011 indicates that Tanzania’s exports to the region declined slightly to USD 409 millions. 20 Leading exports include fertiliser, cement, rice, steel products, fish, wheat, sugar, and textiles. Appendix No. 1 shows the trend of exports to the EAC region for the period 2005 - 2011. On the other hand, Graph No. 1 below shows the trend of exports by individual EAC Partner States. Graph No. 1: Intra-EAC Exports (USD Millions) US$ Mil1800.00 1600.00 1400.00 1200.00 1000.00 Uganda Tanzania 800.00 Kenya 600.00 Burundi 400.00 Rwanda 200.00 0.00 2005 2006 2007 2008 2009 2010 2011 Source: EAC Trade Report 2011 27. Honourable Speaker, Kenya continues to be the dominant market for Tanzania’s goods in the region, accounting for 60.17 percent of the total exports in the Community. Kenya continues to be dominant in market for goods in 21 the Community accounting for 60 percent of the market share. The main product exported to Kenya from Tanzania includes mosquito nets, plastic products, tea, electric transformers, paper and paper products. Pie Chart No. 1 below presents the market share of the Partner States for year 2011. Pie Chart No. 1: Proportion of Exports Between Partner States’ for 2011 Burundi 1% Rwanda 3% Uganda 20% Tanzania 16% Kenya 60% Source: EAC Trade Report 2011 28. Honourable Speaker, the value of Tanzania’s imports from the region, on the other hand, declined by 7.1 percent in 2010, from 22 USD 316.9 millions in 2009 to USD 295.9 million in 2010. Preliminary statistics for 2011 indicate an increase in imports, reaching USD 378.1 millions. This increase reflects increased importation from all EAC countries, whereby imports from Uganda more than doubled. The trend of imports between EAC Partner States is shown in Appendix 2. 29. Honourable Speaker, Tanzania’s imports from Uganda are mostly electrical goods, shoes, and detergents. The other goods imported from within the Community include pharmaceuticals, steel and steel products, oils and lubricants, and trucks and trailers. Graph No. 2 below summarises the trend in Tanzania’s imports from the EAC Region since 2005 and Pie Chart No. 2 below indicates the proportions of imports in intra-EAC trade for 2011. 23 Graph No. 2: Intra-EAC Imports (USD Million) Source: EAC Trade Report 2011 24 Pie Chart No. 2: Percentage of Imports from EAC to Total Import in 2011 Rwanda 20% Uganda 36% Burundi 8% Kenya 16% Tanzania, 20% Source: EAC Trade Report 2011 Pattern of Trade Among EAC Partner States 30. Honourable Speaker, the value of goods traded among the five EAC Member Countries continued to grow during 2010, from USD 3,437.3 Million in 2009 to USD 3,800.7 million in 2010, reflecting a 10.6 percent increase. Preliminary statistics for 2011 also indicate an even higher growth in trade amounting to USD 4,485.9 millions, which is 18 percent above the value recorded in 2010. Appendix 3 shows the trend in trade among the 25 EAC Member Countries for the period 2005 to 2010. 31. Honourable Speaker, Kenya still leads in the EAC market in terms of market share, followed by Tanzania, Uganda, Rwanda and Burundi in that order. On the imports side, Uganda is the country that imports most from the region, followed by Tanzania, Kenya, Rwanda and Burundi respectively. 32. Honourable Speaker, Graph No 3 and Pie Chart 3 below summarise the pattern, indicating that Kenya accounted for 41 percent of all intra-regional trade in 2011, followed by Uganda with 27 percent, Tanzania with18 percent, Rwanda 11 percent and Burundi at 3 percent. I therefore call on all Tanzanians to open their eyes, get aggressive, and exploit the vast opportunities in the region in order to increase our market share in the regional trade. 26 Graph No. 3: Trade in Goods Market Shares 2005 – 2010 (Million USD) 2000 1500 Uganda 1000 Tanzania Kenya 500 Burundi 0 Rwanda Source: EAC Trade Report 2011 Pie Chart No. 3: Trade in Goods Market Shares in 2010 Rwanda 10% Burundi 4% Uganda 27% Kenya 41% Tanzania 18% Source: EAC Trade Report 2011 27 33. Honourable Speaker, Tanzania’s low market share in the EAC market notwithstanding, I am pleased to inform your august House that our balance of trade has continued to strengthen over time, from a deficit of USD 31.9 million in 2009 to a surplus of USD 166.8 million in 2010. As a result, and excluding year 2009 when Tanzania’s exports suffered due to the global economic crisis, trade has grown for the two consecutive years with trade surpluses being recorded. The trend of the EAC Trade Statistics are summarised in Appendix 4. Investment Growth 34. Honourable Speaker, implementation of the Customs Union has continued to complement the Government’s efforts in promoting and developing investment in the country. Both the number and value of projects implemented by investors from the EAC countries has increased year after year. During 2011, 21 new projects with a total investment value of USD 58 million were implemented. Details of the yearly number and value of investment project by regional investors are given in Appendix 5. The leading sectors in attracting regional investors in that year were Industries, Construction, Tourism, Transportation, and Agriculture. Appendix 6 28 shows the sectoral distribution of the projects implemented. Overall, this indicates that the industrial and services sectors have demonstrated good growth patterns arising from the implementation of the Customs Union. 35. Honourable Speaker, following the increased flow of investment from within the region, employment opportunities arising from that investment have also increased yearly. In 2011, 1,668 new jobs were created compared to 1,575 jobs in 2010 as shown in Pie Chart 4. The leading sectors in job creation were Manufacturing, Agriculture, Transport, Tourism, and Construction. Details on this matter are given in Appendix 7. 29 Pie Chart No. 4: Leading Sectors in Job Creation in Tanzania Resulting from Investment Flows from EAC (2011) TOURISM 12% TRANSPORT 13% MANUFACTURING 44% AGRICULTURE 10% CONSTRUCTION 19% SERVICES 12% Source: EAC Trade Report 2011 Single EAC Customs Territory 36. Honourable Speaker, in my year 2011/12 speech, I explained about the ongoing negotiations on strengthening the EAC Customs Union with a view to establishing a Single Customs Territory. Similarly, I explained that the EAC Heads of State had instructed the Council of Ministers to undertake comprehensive analysis on the matter and submit recommendations to the Summit. The analysis was undertaken as directed and 30 Council’s recommendations submitted to the 11th Extraordinary Summit of the EAC Heads of State that was held in Arusha, Tanzania in April 2012. In the referred Summit, the Heads of States endorsed the Destination Model, whereby each Partner State retains responsibility for managing its Customs operations and collecting duties and taxes there from. 37. Honourable Speaker, under this model, it was agreed that goods transiting through the territory of one Partner State to another (transit goods) shall be inspected and taxes collected at the first port of entry into EAC, and the taxes transferred to the final destination after verifying that the goods did actually cross the border into the destination territory. The Council of Ministers has subsequently formed a Task Force to prepare operational procedures and guidelines for operationalizing of the Model. The Task Force shall complete this assignment during financial year 2012/2013. Elimination of Non-Tariff Barriers (NTBs) 38. Honourable Speaker, in fiscal year 2011/2012, my Ministry continued to coordinate and participate in the implementation of the Regional Plan for Elimination of Non Tariff Barriers. In the period under review, 50 NTBs were identified and of which 27were eliminated. 31 NTBs eliminated include levies and charges on motor vehicles upon entry into another Partner State, charges designed to restrict the export of seeds and food products, barriers to the export of Tanzania Distilleries Ltd’s products and particularly Konyagi, duties and charges on importation of pharmaceuticals and medicaments, cumbersome procedures for availing Certificates of Origin, and mutual recognition of the Certificate of Quality issued by the Partner State’s respective authorities. 39. Honourable Speaker, despite all these efforts initiated to eliminate NTBs sixteen new ones were reported during the year. The new NTBs include: reduction of the grace period for goods at ports before being subjected to demurrage charges, port congestion; varying rates for overweight charges among road users in different countries; weighing unloaded trucks, which tends to waste time for no real benefit; cumbersome procedures for perfecting security for goods transiting through Partner State’s territories; the banning of horticultural products destined for export to Europe from transiting through another country’s territory; and imposition of charges and levies on agricultural products traded within the EAC region. 32 40. Honourable Speaker, at a Special Ministerial Meeting on NTBs held in Mombasa, Kenya in March 2012, the Partner States agreed to eliminate all NTBs that had been identified, and to expedite the identification of an appropriate legal framework to govern the treatment of NTBs as a permanent solution. I therefore call upon the different authorities responsible for the identified NTBs to remove them expeditiously. 41. Honourable Speaker, as part of the effort against NTBs, Partner States have also established One Stop Boarder Posts (OSBP) at border stations. The objective of this initiative is to reduce unnecessary and time wasting bureaucracy in the Customs, Immigration, Standards and Security operations at border crossings. This initiative will substantially reduce the time spent at the crossings. 42. Honourable Speaker, the Partner States have therefore started constructing the necessary infrastructure for the One Stop Boarder Posts. The border stations where Tanzania, in conjunction with the respective neighbours, are building the OSBP are: (a) Rusumo/Rusumo (Tanzania and Rwanda); (b) Namanga/Namanga (Tanzania and Kenya); (c) Sirari/Isebania (Tanzania and Kenya); 33 (d) Holili/Taveta (Tanzania and Kenya) (e) Horohoro/Lungalunga (Tanzania and Kenya); (f) Mutukula/Mutukula (Tanzania and Uganda); and (g) Kabanga/Kobero (Tanzania and Burundi). The works are at different levels of completion. 43. Honourable Speaker, during 2011/12, the Ministry and the sectoral Ministries responsible for the operations to be covered under the OSBPs (i.e. customs, immigration, standards and safety of goods, security, and transportation) have formed a National Technical Committee on the implementation of this initiative. The Committee is charged with responsibility to oversee the establishment of the posts as well as their actual operation, and to report to a Committee of Permanent Secretaries on any action needed at that level to expedite the posts’ operationalisation and proper management. 44. Honourable Speaker, the Ministry, as a follow up to the issue on Cloves and other restrictions on trade affecting Tanzania Zanzibar, made a tour in Kenya and specifically Mombasa and Shimoni, from the 18th to 20th October 2011. The objective of this mission was 34 to fulfil the Ministry’s resolve in finding solutions to the challenges of Clove trade and its management; allegations of mistreatment of Zanzibar residents and travellers when entering Kenya via Shimoni; illegal fishing at Pemba Channel; and high fees of Work Permits. 45. Honourable Speaker, the outcome of the said tour is that leaders from Tanzania and Kenya agreed to work on the identified challenges jointly through periodic meeting; and undertake research on Cloves with view to establishing a flow price for Cloves to guide trade between the two Partner States. Regarding the Shimoni border point, it was agreed that it be opened for twelve hours and after which seafarers contact the Kenya immigration officials via Mobile No. +254722494948 for assistance. 46. Honourable Speaker, besides these regional initiatives, there has been national ones under the banner WIPO/BRELA BRAND MISSION TO TANZANIA which has been launched by the Government of Tanzania in corroboration with the Government of the United States of America and World Intellectual Property Organisation. This measure would enable the country to register Cloves internally in the context of Geographical Indications. I believe this initiative would go a long way to 35 resolving the prevailing challenges on Cloves and restore the historical legacy of Zanzibar as a Spice Island. 47. Honourable Speaker, in an effort to strengthen good neighbourliness and address the challenges to cross border trade in the region, my Ministry requested the Community to promote regular bilateral meetings between Partner States, particularly between Tanzania and Kenya. Issues presented by Tanzania for discussion under the suggested framework include the smuggling of cloves from Zanzibar and the extra KES 2 per kilogram charge imposed on Tanzanian horticultural products transiting through Kenya to the European markets. I believe that these meetings will produce lasting solutions to many of these longstanding challenges. 2C2: The East African Common Market 48. Honourable Speaker, Article 51(d) of the CCM Election Manifesto of 2010, directs the Government to sustain efforts aiming at implementing the EAC Common Market Protocol. During the year 2011/2012, my Ministry, along with other stakeholders in the public and private sectors continued with the implementation of the Protocol. 36 49. Honourable Speaker, in collaboration with the respective sector Ministries, my Ministry completed the review of the relevant laws with a view to bringing them in harmony with the Protocol. This exercise covered laws governing employment, finance, investment, company registration, land, immigration, tourism services (hotels and restaurants), insurance, and some financial services. Recommendations for the rationalisation needed have been identified, and submitted to the respective sector Ministries for further action. 50. Honourable Speaker, during 2012/2013, the Ministry and the respective sector Ministries will continue the review of laws governing the remaining areas covered under the Protocol, including banking and financial services, tourism, education, procurement and supplies, transport, communication, and professional services. Review of these laws will facilitate implementation of the EAC Common Market Protocol in respect to free movement of persons and labour, free movement of services, free movement of capital, right of establishment and residence 51. Honourable Speaker, the East African Community finalised a monitoring and evaluation framework during 2011/2012 that 37 will serve the region in coordinating the implementation of the Protocol. The framework identifies the performance indicators for assessing the implementation status for each of the agreements reached in the Protocol. Partner States are required to report semi-annually on their status of implementing the agreed actions, and the reports discussed at the regional level. For the M & E framework to be effective, Partner States are expected to expedite the rationalisation of the national laws and bring them into conformity with the EAC Common Market Protocol. It is my humble hope and plea that the process of rationalising our laws with the Protocol shall be completed in good time, with the support and indulgence of all stakeholders. 52. Honourable Speaker, having recognised that pending work on legal reforms was one of the reasons for the rather slow pace of implementation of the EAC Common Market Protocol by Partner States, the Partner States agreed to form National Committees for implementing the Common Market Protocol. Tanzania formed a Committee comprising of Permanent Secretaries and Heads of Institutions for this purpose. In addition to closely following up the implementation of the Protocol, the Committee is also responsible for developing 38 strategies to maximise Tanzania’s benefits from the EAC integration process, and particularly the Common Market. As previously stated herein, the Ministry has already finalised a National Plan of Action for the Implementation of the EAC Common Market Protocol with a view to enabling the nation and individuals to optimise their utilisation of the opportunities presented by the Common Market. 2C3: Establishment of Monetary Union the East African 53. Honourable Speaker, in year 2011/12, the Ministry coordinated and led ongoing negotiations on the East African Monetary Union Protocol. The Ministry, in collaboration with the Ministry of Finance, the Planning Commission, the Bank of Tanzania, and other stakeholders undertook a detailed assessment of Tanzania’s readiness for entry into the East African Monetary Union. The analysis aimed at evaluating the status of implementation of preceding stages of regional integration, which is the Customs Union and the Common Market-as building blocks towards a Monetary Union, assess the readiness of the East African Community to implement a Monetary Union, and learn from the experience of the European Monetary Union (EMU) in dealing with the current crises. 39 54. Honourable Speaker, the analysis has concluded that the EAC Partner States ought to accomplish a number of prerequisites before establishing a Monetary Union. In short, these prerequisites are: (a) To complete implementation of the outstanding agenda under the Customs Union and Common Market stages; (b) To strengthen the productive capacity and build a strong infrastructure network in order to harness the opportunities arising from these foundation stages of regional integration to establish strong, sustainable, and complementary constituent economies of the Partner States; (c) To revamp their economies and achieve key macroeconomic convergence targets, thereby creating the conducive environment for entry into a viable Monetary Union; (d) To harmonise their frameworks for compiling national statistics, which is the essential basis for a common monitoring and evaluation system; (e) to implement a Harmonized Accounting System; and 40 To design and implement a common framework for fiscal policy management. 55. Honourable Speaker, members of a regional High Level Task Force working on this matter visited Europe on a study tour in January 2012 in order to gain insights and expand their understanding of the prerequisites and process of establishing a sustainable Monetary Union. The team also sought to gain insight into the sources of the EMU’s crisis and the measures being taken to contain it. The East African Community has learned from that study tour that, to successfully implement a Monetary Union, the following must be borne in mind: (a) The Partner States must have attained the qualities of an optimum currency area, which include free movement of goods, labour, and capital plus integration of the financial systems; (b) The Member States must have fully implemented the foundation stages of regional economic integration (i.e. the Customs Union and Common Market) as these will prepare the Members for attaining the qualities of an optimum currency area; 41 (c) The Partner States must be very careful in admitting members to a Monetary Union, by verifying their compliance with macroeconomic convergence targets and demonstrate capacity to sustainably observe the targets while operating within the monetary Union. It was evident that the real source of EMU’s current crisis was the loose admission of countries on security and defence consideration without giving due consideration to appropriate economic indicators; (d) The Partner States must have a harmonised framework for Fiscal Policies. As this is rather difficult to achieve due to the existence of different social and economic aspirations among countries with distinct political systems, it is generally advisable to focus on harmonisation of the economies and thereby indirectly harmonise the socioeconomic aspirations of the people in a Monetary Union; (e) The Partner strict fiscal 42 States must observe discipline, including avoiding large fiscal deficits and the accumulation of fiscal debt ; and (f) The Partner States must have a common and enforceable statistical framework. 56. Honourable Speaker, following our internal analysis and the results of the mentioned regional study tour, Tanzania will consistently emphasise the need to build a strong foundation for a Monetary Union before attempting to start its implementation. Our goal in this regard, is to have a sustainable Monetary Union and Community. 2C4: The East African Political Federation 57. Honourable Speaker, I informed this House in my 2011/2012 Speech that a Team of Experts was to be formed and tasked to identify the Fears, Challenges, and Concerns emanating from the implementation of the Customs Union and Common Market, and those that might emerge in the event of a premature entry into an East African Political Federation, without due regard to the primary objectives of the Community. The Team of experts completed its assignment, and submitted its report to the Summit of EAC Heads of State in Bujumbura in November 2011 in Bujumbura, Burundi. The 43 Heads of State directed the EAC Secretariat to prepare a model of a Federation to form a basis for continued dialogue on this issue. 58. Honourable Speaker, the Team of Experts observed in its report that, as of now, most East Africans are yet to see tangible benefits arising from the ongoing implementation of the EAC integration. Therefore, the Team advised the Partner States to focus on effective and beneficial implementation of the initial stages of integration before embarking on the process towards a Political Federation. This caution will be consistently observed by: “But if to plan is to choose, to cite Mwalimu Nyerere’s dictum, the EAC should henceforth be more focused and selective, with few key priorities that will result into visible and tangible results.” 2D: COOPERATION WITH OTHER REGIONAL ECONOMIC COMMUNITIES 2D1: The COMESA, EAC and SADC Tripartite Arrangement 59. Honourable Speaker, Paragraph 51(a) of the CCM Manifesto of 2010 requires the Government to promote the utilisation of the 44 domestic, regional, and international markets by our people. In pursuit of this objective, and pursuant to its mandate, my Ministry has continued to coordinate and participate in the negotiations for the establishment of a Free Trade Area encompassing the regions of COMESA, EAC and SADC. 60. Honourable Speaker, at their first joint meeting in Kampala, Uganda in October 2008, the Heads of State and Government of the COMESA, EAC, and SADC countries resolved to establish a COMESA-EAC-SADC Tripartite Trade Arrangement. It was further agreed that, the Tripartite should encompass three pillars: market integration including a free Trade Area, development of infrastructure, and industrialisation. 61. Honourable Speaker, a Roadmap for establishing an FTA in the whole of the COMESA-EAC-SADC Tripartite region and the legal and institutional framework to oversee the FTA’s implementation was finalised during 2011/2012. The second phase, to be implemented after conclusion of negotiations under Phase 1, will cover issues of trade in services, copyrights and patents, competition policies, and development of commercial and competitive capacities. 45 62. Honourable Speaker, the Partner States have also adopted negotiation guidelines, and a plan of action to guide negotiations, and formed several working groups focusing on specialised subjects to facilitate the negotiation process. Negotiations are planned to start formerly in August 2012. 2D2: The EAC – EU Economic Partnership Agreement 63. Honourable Speaker, negotiations between the East African Community and the European Union on the Economic Partnership Agreement (EPA continued during 2011/2012), focusing on the areas that were not concluded in the transitory Framework for Economic Partnership Agreement (FEPA). Outstanding areas relate to taxes and levies on exports; the Most Favoured Nations (MFN) treatment; and economic cooperation. Negotiations are continuing on new areas that include the Rules of Origin, and cooperation in agriculture. The parties agreed to postpone negotiations on Trade in Services and other Trade Related Issues until another time to be agreed mutually, when the parties are ready for such negotiations. 64. Honourable Speaker, the Economic Partnership Agreement provides opportunities for products from EAC countries to enter the 46 European Union markets duty free and without any encumbrances. On the other hand, EAC countries are obliged to allow preferential market access to some EU products. The EPA is also expected to extend economic and development cooperation between the EAC Partner States and EU whereby the EU and its Members will provide economic assistance to EAC countries and support their effort to surmount infrastructure and productive capacity challenges. 65. Honourable Speaker, allow me to call on all stakeholders in the EPA negotiations to maintain their vigilance, and to conduct the negotiations with utmost professionalism to ensure a successful and mutually beneficial conclusion of the agreement. 2E: COOPERATION IN THE PRODUCTIVE SECTORS 2E1: Food Security 66. Honourable Speaker, as one of the measures to enhance Food Security, the Ministry participated and coordinated the preparation of the Community Fund for Agriculture; and mechanism for the establishment of Regional Commodities Exchange under the EAC Financial Sector 47 Development and Regionalization Project (FSDRP). These initiatives are expected to be concluded in the course of 2012/2013. 67. Honourable Speaker, during the year 2011/2012, the Partner States also initiated consultations on the EAC Emergency Preparedness and response Plan for pastoralists in the dry lands of EAC seeking to assist livestock keepers in dry and arid zones to cope with the vagaries of weather. The programme will involve construction of stable housing for livestock keepers, strengthening social services in pastoral areas, avoiding child labour and thus enable schooling, and to avoid frequent land disputes between farmers and pastoralists. The consultations on this programme are continuing, and scheduled for conclusion in 2012/2013. 2E2: Joint Investment Promotion Conferences 68. Honourable Speaker, the Partner States have an understanding for organising Joint Investment Conferences in the Community, as one of the ways of marketing the region as a single investment area and attracting more inward investment. The Joint Investment Conferences are yearly events and are organised 48 in Partner States on a rotational basis. In the year 2011/2012, the Ministry coordinated Tanzania's participation in the Lake Tanganyika Basin Investment Conference held in November 2011, in Bujumbura, Burundi. The aim of the Conference was to advertise the various investment opportunities existing in the basin to promote trade by encouraging traders and investors from inside and outside the Community to invest in it. Let me take this opportunity to thank the organisers of this important Conference, and urge stakeholders in the Lake Tanganyika Basin to follow up and implement all the resolutions made at the Conference for their own benefits and that of the nation. 2E3: Informal Sector Exhibitions 69. Honourable Speaker, my Ministry also coordinated Tanzania’s participation in the 12th Jua Kali/Nguvu Kazi Exhibition in Kampala, Uganda during the year 2011/2012. The exhibitions are held annually to provide an avenue for entrepreneurs in the Partner States to meet and share experiences on how to develop their enterprises, learn new technologies, and establish business networks. As with previous exhibitions, this exhibition was a great success to our entrepreneurs. Allow me to I sincerely 49 congratulate the entrepreneurs who participated in this exhibition, and especially those who were able to conclude commercial agreements. 2E4: Tourism and Wildlife 70. Honourable Speaker, in the year 2011/12, the Ministry coordinated training of experts to be charged with assessing the standards of hotels and restaurants in the Community, whereby 15 experts from Tanzania Mainland and Tanzania Zanzibar were awarded certification on graduation. The objective of this exercise was to enable these experts to speed up the process of ranking Hotels and Restaurants on a Star scale, and make them eligible to compete in the same East African Tourism Sector. In fiscal year 2012/2013, the Ministry in collaboration with relevant sectors will continue to coordinate the grading and assignment of Stars to Hotels and Restaurants in the Southern Regions. 2E5: The East African Community Single Tourist Visa 71. Honourable Speaker, in carrying out the directives of the Council of Ministers of the East African Community urging Partner States to take steps to promote East Africa as a single 50 tourist destination, in 2011/2012 the Partner States continued assessing their readiness for adopting a Single Tourist Visa. Preliminary results of the assessment suggest that there are challenges in implementing the proposed system, and that these will need to be seriously addressed and specific strategies for that purpose set. These challenges include the collection and distribution of revenue, security, and economic and technological infrastructure. To get ourselves prepared, the Ministry in collaboration with relevant Sector Ministries are undertaking an internal study to determine what would be needed for Tanzania to adopt a regional Single Tourist Visa and therefore prepare accordingly. This will continue in fiscal year 2012/2013. 72. Honourable Speaker, the implementation of programmes for infrastructural development in the East African Community is being done in accordance with Article 89 of the Treaty Establishing the East African Community which requires Partner States to cooperate in developing infrastructure. Moreover, implementation of programmes for developing and strengthening infrastructure is guided by the National Development Vision (2025), which provides for the strengthening of infrastructure to facilitate other productive 51 sectors. Likewise, infrastructural development is done in accordance with paragraph 19(e) of the CCM Election Manifesto of 2010 which requires the Government to put in place the basic economic infrastructure for a modern economy for ensuring the availability of reliable power supply and by improving economic and service infrastructure in general; and paragraph 19(f) of the Manifesto that directs the Government to utilize the favourable geographical location for the nation’s economic growth. 73. Honourable Speaker, Tanzania, being the only country that borders all Partner States of the Community, the development and strengthening of transport infrastructure particularly ports, railway systems, construction of airports, maritime, air and road transport must be among its priorities in the Community. The development of such infrastructure will enable Tanzania to take advantage of its geographical location in benefiting economically, socially and culturally. In the fulfilment of this mission, the Ministry continued to coordinate the implementation of infrastructure projects in the Community. 52 2F1: The East African Road Network 74. Honourable Speaker, in the year 2011/2012, the Partner States of the East African Community have continued to implement the East African Road Network Project in the Community. The network includes national roads of regional importance that were identified as connecting the Partner States as shown in Appendix 8. 75. Honourable Speaker, in the case of Tanzania, implementation of the road infrastructure programme in each zone was as follows: First Zone: This is a Transport Corridor commencing from Mombasa - Malaba - Katuna Kigali - Kanyaru-Bujumbura - Gatumba, including Marangu-Tarakea, Chalinze - Segera, and Segera - Himo. Rehabilitation to tarmac grade has started on the 172 KM Korogwe Mkumbala - Same section, and design work on the 80 Km Same - Himo section has commenced. Rehabilitation and design of these sections is financed by the World Bank, and will continue during 2012/13. 53 Second Zone: This is a Central Transport Corridor joining Dar es Salaam and Kigoma, Rwanda, and Burundi. The relevant roads run from Dar-es-salaam - Isaka - Lusahunga Mutukula - Masaka, and Lusahunga Nyakasanza – Rusumo - Kigali - Gisenyi. In 2011/2012, rehabilitation of these roads continued with financing from the Tanzania Government and is expected to be completed in 2012/13. Moreover, detailed design of the 150 KM Lusahunga-Rusumo and the 150 KM Kobero-Nyakasanza sections have commenced with financing from the World Bank, and will continue during 2012/2013. Third Zone: This Zone covers the Biharamulo Mwanza - Musoma - Sirari - Lodwar – Lokichogio roads. Construction on the 112 KM Uyovu Bwanga – Biharamulo section will commence during 2012/2013. Fourth Zone: This corridor joins Tanzania’s Southern highland to the Western Regions of Tanzania, from Tunduma - Sumbawanga Kigoma - Manyovu (Mugina) - Rumonge Bujumbura - Ruhwa (Bugarama) - Karongi Gisenyi. During fiscal year 2011/2012, construction to tarmac grade on the Tunduma – Sumbawanga – Kizi continued with financing from the Tanzania Government and the 54 Millennium Challenge Corporation (MCC). Works on the section will continue during 2012/2013. Fifth Zone: This Zone runs from Tunduma Iringa – Dodoma - Arusha - Namanga – Moyale. During 2011/2012, construction continued on the Iringa – Dodoma section continued with financing from AfDB. Upgrading to tarmac grade of the Dodoma – Mayamaya – Bonga – Babati Road continues with financing from the Tanzania Government. Construction works were progressing well on the 43.8 KM DodomaMayamaya and the 19KM Bonga-Babati sections. During 2012/13, construction will commence on the 188.15 KM Mayamaya-Bonga Section with funding from ADfB and the Government. As for the Babati – Arusha Road, construction and rehabilitation works continue with funding from AfDB and the World Bank. The works will continue during fiscal year 2012/2013. The Arusha – Namanga – Athi River Road 76. HonourableSpeaker, as explained in my speech for the year 2011/2012, construction of the Arusha - Namanga - Athi River road covers 104.4 kilometres on the Tanzania side. The construction of road to tarmac grade and bridges were completed during 2011/2012, and 55 the Community is currently seeking funding for correctional works in areas that harbour water when it rains, including building 12 new bridges and 43 culverts to prevent water damage over 40 kilometres. It is expected that these works will be completed, to allow the road to be formerly inaugurated by the Heads of State in November 2012. The Arusha – Holili/Taveta – Voi Road 77. HonourableSpeaker, the Ministry also continued with coordinating the feasibility study and detailed design of the Arusha – Holili/Taveta – Voi, which has 158.8 KM on the Tanzania side and 122.5 KM on the Kenya side. These tasks were scheduled for completion in 2012/2013. The Malindi – Bagamoyo Road Lunga Lunga - Tanga – 78. Honourable Speaker, during 2011/12, my Ministry coordinated the feasibility study for the 400 KM long Malindi – Lunga Lunga - Tanga – Bagamoyo Road. The road shall consist 240 KM on the Tanzania side, from Tanga to Bagamoyo. The feasibility study and detailed design started in February 2011 and completion is expected before the end of 2012. My Ministry will continue to coordinate the next steps during 56 the year 2012/13, after completion of the detailed design. The Tanga – Horohoro Road 79. HonourableSpeaker, during 2011/2012, works progressed well on the 66 KM Tanga – Horohoro Road, running from the Tanzania – Kenya border to Tanga City. The US government, through the Millennium Challenge Corporation (MCC), is the financier of this road at a total cost of TZS 69.9 billion. Works started in January, 2010 and had reached 86 percent of all planned works by March, 2012. 80. Honourable Speaker, as with other sectors, the development of existing and new roads in the road network of the East African Community is conducted under the supervision of the Ministry of Works. Details on these roads are therefore as set forth by Minster for Works in his speech before this august House. 2F2: Transport Strategy and Program Development in the Road Sector: 81. Honourable Speaker, in furtherance of the transport sector, in the year 2011/2012, the Partner States completed the EAC Transport Strategy and Road Sector Development 57 Programme. The Strategy identifies projects that will be implemented during the next ten years (2011/12 – 2019/20). The transport projects included in the Strategy include roads, railways, air transport, lake and marine transport, and pipelines for the transportation of liquids including oil and gas. The next step now is Projects Unpacking with a view to soliciting financing for implementation. This shall be undertaken during 2012/2013. 2F3: The East African Rail Network: 82. Honourable Speaker, Tanzania, Rwanda and Burundi continued to cooperate during 2011/2012 in relation to the development of the railway Isaka - Kigali/Keza to Musongati in Burundi whereby detailed design and environmental impact assessment; assessment of the economic feasibility and the legal and institutional frameworks including the role of the private sector were initiated. The preparation of detailed design is expected to be completed during 2012/2013. This extension of the railway network is part of the Comprehensive East African Railways Plan as seen in Appendix 9. 58 2F4: Development of Marine Transportation and Ports 83. Honourable Speaker, in developing the transport sector and ports, Partner States have adopted the Terms of Reference for preparing a Marine Transport Strategy. The Strategy will identify priorities for projects to develop marine transport and ports in the Community. My Ministry will continue to coordinate the preparation of the Strategy during the financial year 2012/2013. 2F5: The Civil Aviation Sector 84. Honourable Speaker, the Ministry has continued to coordinate and participate in discussions aimed at strengthening aviation by increasing the use of Cheaper Navigation System based on the Global Navigation Satellite System (GNSS); implementation of the Yamoussoukro Declaration (YD) to enable liberalisation of air transport in the Community area; to adopt a regional approach to conducting investigation of aircraft accidents; installation of Security System to enhance ability to see a large defence area instead of the radar system Automatic Dependent Surveillance-Broadcast (ADS-B). Work on these initiatives will continue during 2012/2013. 59 Development of the Meteorology Sub Sector 85. Honourable Speaker, in strengthening the meteorology sub sector, the Ministry coordinated and participated in the review of the Development Plan and Five Year Investment Strategy for the sub sector during 2011/2012. This task has now been completed. During 2012/2013, the Partner States will search for financing to enable implementation of the Investment Plan. Moreover, the Ministry coordinated and participated in the preparation of the Climate change Master Plan. A Draft Comprehensive Plan was completed and submitted to the Sectoral Council of the Environment Sector, which directed that it be availed to Partner States for comments. Finalisation and adoption of the Plan is expected to be attained in 2012/2013. 2F6: The Energy Sector 86. Honourable Speaker, Article 101 of the EAC Treaty states that Partner States shall adopt policies and mechanisms to promote the efficient exploitation, development, joint research and utilisation of various energy resources available within the region with a view to generating and distributing electricity at affordable in the Community. Similarly, paragraph 63(b) of the CCM Election Manifesto of 2010, spells out that the 60 Government engage in effort to connect the national grid to those of neighbouring countries with a view to assuring reliability in power supply. The following were undertaken in 2011/2012 in respect of these objectives: Interconnectivity of Partner States’ National Grids 87. Honourable Speaker, under the East African Community Power Pool, the Ministry coordinated and participated in the preparation of Draft Memorandum of Understanding that will enable Partner States to conclude Agreements on Trade in Power and thereby eliminate electricity shortages in the region. The MoU reflects agreements among the Partner States and among service providers. They will be completed during 2012/2013. 88. Honourable Speaker, each Partner State nominated a service provider that will be involved in these arrangements. Tanzania nominated TANESCO and ZECO; Kenya nominated two companies; and Rwanda, Uganda and Burundi nominated one company each. 89. Honourable Speaker, paragraph 63(u) of the CCM Election Manifesto of 2010 requires the Government to commence implementation of the Zambia - Tanzania - Kenya (ZTK) power line 61 project, which will connect the Eastern and Southern Africa power networks. Implementation of this project will enable the realisation of the EAC and SADC plans for establishing a Southern Africa Power Pool covering all member countries of the two economic groupings. A feasibility study on the connection of the Tanzania and Kenya from Singida to Arusha and Nairobi continued during 2011/2012 with financial support from the Norwegian government. The study, which is coordinated by the Nile Equatorial Lakes Subsidiary Action programme (NELSAP), is due for completion in financial year 2012/2013. Power Generation Murongo/Kikagati Project at 90. Honourable Speaker, the Ministry also coordinated and participated in negotiating the Murongo/Kikagati power project that is projected to produce 16 MW. A Memorandum of Understanding between the Governments of Tanzania and Uganda was signed in September, 2011. The two countries are now negotiating the relevant implementation contracts, including the Bilateral Agreement, which has reached the final stages of review before signature. It is expected that the respective Agreements will be concluded 62 in the course of 2012/2013 so that project implementation may commence. 91. Honourable Speaker, for this project to be successfully implemented, the Government will have to develop the electricity distribution infrastructure in the target beneficiary areas in Tanzania. The government, through the Rural energy Agency (REA), has allocated funds in its 2012/2013 budget for this purpose in Karagwe District. Priority Power Generation and Distribution Projects 92. Honourable Speaker, in response to the recurring shortage of electrical energy, in 2011/2012 the Partner States identified priority projects for electricity production and distribution in order to be funded through regional cooperation. On the Tanzania side, the projects proposed are: Singida-Arusha-Nairobi 400kV Interconnector; Masaka-Mwanza 220kV Interconnector; Rusumo-Nyakanazi 220kV Interconnector; Stieglers Gorge Hydro-Power Project 2100MW; Kiwira Coal 200MW; and Rusumo Hydro Power Plant 90MW. The East African Community continues to seek funding mechanisms to facilitate implementation of 63 these projects; and the process is expected to continue through 2012/2013. Cross Border Electrification Policy 93. Honourable Speaker, in the course of fiscal year 2011/2012, the Community started working on the Cross-Border Electrification Policy. The policy serves as a guide on how Partner States shall cooperate in facilitating the electrification of border villages and townships. It shall be completed in 2012/2013. 2F7: Communications Sector 94. Honourable Speaker, in the year 2011/2012, the Ministry coordinated and participated in the discussions towards establishment of The East African Broadband Infrastructure Network. This aims at facilitating communication between the Partner States and the rest of the world. Tanzania has already delivered broadband connectivity to it borders with all of the other Partner States, as well as Zambia and Malawi. Currently, Rwanda is enjoying broadband connectivity through this infrastructure. Discussions with the remaining Partner States are underway in order to facilitate access to improved and low cost communication among East Africans, and other parts of the world. This will contribute in developing 64 economic and social activities among Partner States. 95. Honourable Speaker, a Draft Protocol for Cooperation in the ICT Sector has already been prepared. It will set the basis for cooperation in the broader ICT industry that will enable Tanzania and other Partner States to benefit commercially. The protocol is expected to be finalised during 2012/2013. Harmonisation of the Axle Load Limits on East African Roads 96. Honourable Speaker, during 2011/12, the Community finalised a study aimed at harmonising policies and procedures used in the regulation of axle load limits on East African roads. The Partner States have also finalised a Draft Legislation and Regulations on the Axle Road Limits. The draft is expected to be enacted during 2012/2013. 97. Honourable Speaker, among others, the law aims to reduce the number of weighbridge stations (optimal number of weighbridges), so as to reduce the turnaround time for the vehicles while protecting road infrastructure from overloading and load shifts 65 in the course of transportation, and outright fraud.. 2F8: Construction of the New EAC Headquarters: 98. Honourable Speaker, I am glad to inform your esteemed Parliament that construction of the Community Headquarters, which began in January 2010, has been completed. The Tanzania Government is now working on the 300 metres road to the new premises, named The EAC Close, which will be used by the Heads of State to access the new facilities. The official opening of the building is scheduled for November 2012. 2G: 2G1: SOCIAL SERVICES SECTORS Education, Culture and Sports, Health and Science 99. Honourable Speaker, Article 5(1) of the EAC Treaty outlines the objectives of the Community include the formulation of policies and programmes aimed at enhancing cooperation among Partner States in the social and cultural and spheres. The Treaty further elaborates areas of cooperation to include education, culture, sports, science and technology, health, employment and environmental protection. 66 100. Honourable Speaker, moreover, paragraph 85 of the CCM Election Manifesto of 2010, requires the Government to improve, strengthen and expand education at all levels from basic education to the University level, and ensure that the education provided to our youths is of the quality that empowers them to take their eligible place in and out of the East African Community. Harmonisation of the Curriculum and Education Systems 101. Honourable Speaker, during 2011/2012, the Partner States continued their consultations on harmonising their education systems and curriculum. This will enable East Africans to get similar education and therefore facilitate fair competition in the labour market and equal access to employment. A report on the harmonisation of education systems has been completed, and currently negotiations are ongoing focused on having in place an Implementation Plan during 2012/2013. I hereby call on my fellow Tanzanians to take advantage of employment opportunities for the professions that have been liberalised in the context of the Common Market implementation. 67 Centres of Excellence: 102. Honourable Speaker, during 2011/2012, the East African Community concluded the verification of institutions with a view to designating them as Centres of Excellence as catalysts for developing Science and Technology and other important areas for the socio-economic development of the people. The Centres would available for use by East Africans from all Partner States. In Tanzania, the institutions verified were: (a) University of Dar es Salaam, Faculty of Marine Sciences- -Zanzibar; (b) The Dar es Salaam Maritime Transport Institute (DMI)- Studies of Marine Transportation and Marine Engineering Technology; (c) The Bagamoyo Institute of Arts (TASUBA) (d) The Moshi University of Cooperative and Business Skills (MUCCoBs), and (e) The Wildlife College - Mweka. The Community Essay Competition 103. Honourable Speaker, during 2011/2012, the Ministry continued to 68 coordinate the Community Essay Competition for East African Secondary School students. The aim of this competition is to create awareness of students on various issues pertaining to the East African Community. The topic for 2012 is: “Discuss the Role of Education in Strengthening Integration in the East African Community”. 104. Honourable Speaker, I wish to inform your Esteemed Parliament that winners for 2011 Essay Competition received their prizes during the EAC Summit Meeting in Bujumbura, Burundi in November, 2011. Miss Neema John, a Tanzanian student from Jangwani Secondary School, got the Third Prize. 2G2: The East African Kiswahili Commission 105. Honourable Speaker, with happiness I wish to report to the august House that, at its 24th Meeting held in Bujumbura, Burundi in November 2011, the EAC Council of Ministers appointed the United Republic of Tanzania to host the headquarters of the EAC Kiswahili Commission. The headquarters will be based in Zanzibar. I wish to thank and congratulate all stakeholders, particularly the Revolutionary Government of Zanzibar, for successfully managing the process that brought us this 69 national achievement. The process to actually establish and operationalise the Commission is still ongoing, and the institution should start discharging its duties in the course of /2013. 2G3: Environmental Protection The Lake Victoria Environmental Management Project (LVEMP II) 106. Honourable Speaker, given that Lake Victoria is one of the most important resources in the East African Community, the Community is implementing the Second Phase of the Lake Victoria Environmental Management Program (LVEMP II). This phase will end in June 2013. This programme is implemented in two main components: regional and national projects. During 2011/12, the regional projects implemented related to the carrying of analysis and formulation of the following policies and strategies: (a) Strategy for Sustainable Land Use in the Lake Victoria Basin; (b) Strategy for Monitoring, Data Collection, and Control of Water Hyacinth in the Lake Victoria Basin; (c) Mechanism for Environmental Management and Protection; 70 (d) Communication and Information Exchange on Environment; and (e) Water Release and Supply Policy in Lake Victoria. 107. Honourable Speaker, the second component of the programme relates to national projects that aim at mitigating environmental degradation, especially in the Simiyu Catchment Area, and improving the quality of life for the communities around Lake Victoria. The projects are in Bariadi, Kwimba, Magu, Maswa, Mwanza and Meatu Districts in Mwanza, Mara and Simiyu Regions. The implementation of these projects is at different stages of completion. 108. Honourable Speaker, to ensure proper management of these projects, ten teaching guidelines on the operation and management of community projects were developed and begun to be used in fiscal year 2011/2012. The East African Community, in collaboration with the LVEMP, II are identifying additional projects to be financed during 2012/2013. 71 Water and Sanitation Projects in the Victoria Basin: 109. Honourable Speaker, in 2011/2012, the Ministry coordinated the implementation of the Lake Victoria Water Supply and Sanitation Project (LVWASTAN) in three towns, namely, Geita, Nansio and Sengerema. The project seeks to minimise environmental degradation and achieve the water, sanitation, and environment related Millennium Development Goals (MDGs) in the project areas. In 2011/2012, the East African Community signed a Memorandum of Understanding with the African Development Bank for funding the project. Implementation of this project will continue in fiscal year 2012/2013. The Environmental and Health Management Project in the Mara River Basin 110. Honourable Speaker, the Ministry continued with coordinating the implementation of the Environmental Management, Biodiversity, and Community Health Project in the Mara River Basin during 2011/2012. The three year (20092012) project is implemented in Tanzania and Kenya with the primary objective being strengthening environmental management in the 72 Mara River basin. Achievements 2011/2012 include the following: during a) University students from Tanzania and Kenya received training leading to Postgraduate Degrees in Environmental Management issues, whereby a total of eight students (8) from the Tanzania’s Ardhi University benefited; b) Several studies and researches were conducted in the Basin, including: Strategic Environmental Assessment; Communication Strategy for the Mara River Basin; and The Resources Management Strategy for the Mara River Basin. 2G4: The Health Sector 111. Honourable Speaker, in the Health Sector, the Community is implementing several programmes and projects for the benefit of the citizenry. During 2011/2012, the Ministry continued to coordinate the implementation of programmes and projects which resulted into the following benefits: (a) Training provided to Civil Society Organisations engaged in child and youth 73 health issues. WAMA Foundation (Wanawake na Maendeleo), the Private Nurses and Midwives Association of Tanzania (PRINMAT), the Young Connection Association (YCA) and the Tanzania Young Positive Ambassador (TAYOPA) were among the organisation that benefited from this initiative; (b) Launch of an EAC Medicines Registration Harmonization Initiative (EAC-MRHI) that aims at the harmonisation of policies, laws, and procedures for the registration of medicines in order to facilitate easier access to essential drugs and assure compliance with standards. This is a unique project throughout Africa, and is financed by the Bill & Melinda Gates Foundation; (c) Stakeholders in nomadic societies and those living in groups (drivers and students) received training on the main sources of HIV infection. Training was conducted in areas around Lake Victoria; (d) Border communities in Rusumo on the Tanzania – Rwanda border; Namanga on the Tanzania - Kenya border; and Kabanga and Kobero on the Tanzania – Burundi border received training on communicable diseases on human and animals; and 74 (e) Finalised negotiations on Intellectual Property Rights Documentations regarding the manufacturing of medicines and the Draft East African Protocol on Trade in Medicines and Community Health. These documents are expected to be tabled in Community’s Council of Ministers for ratification during fiscal year 2012/2013. 112. Honourable Speaker, the Partner States have recognised the importance of harmonising issues of curriculum, teaching practice and service delivery in order to have comparable social services in the Community. The professions covered include doctors, pharmacists, Nurses and Midwives. In addition, the Partner States have continued to cooperate in strengthening laboratories to deal with infectious diseases and non-infectious diseases like TB and others. 113. Honourable Speaker, the East African Community inspected the Dentists and Pharmacists’ Training Colleges in the medical schools located in the Community during 2011/12. The second phase of this exercise will be conducted in September 2012. The objective of these inspections is to have a better understanding of the training colleges for dentists, and other medical fields in the 75 Community. I therefore wish to use this opportunity to inform your august House and encourage all stakeholders to take part in the forthcoming 4th Annual East African Health and Scientific Conference slated for September, 2012 in Rwanda. The Conference will bring together experts and stakeholders in the health sector to share experiences, discuss the challenges facing the health sector, and chart out ways to overcome them. 2H: COOPERATION IN POLITICAL, PEACE AND SECURITY ISSUES: 114. Honourable Speaker, Articles 123, 124 and 125 of the EAC Treaty require Partner States to cooperate in political, peace, and security matters. The Regional Strategy guides cooperation in the Peace and Security areas on Peace and Security that was signed in 2006. On the other hand, cooperation in defence is governed by the Memorandum of Understanding on in Defense Cooperation signed by the Partner States in 2001. 76 2H1: Regional Strategy on Peace and Security 115. Honourable Speaker, Article 124 of the EAC Treaty clearly provides that Partner States shall cooperate in maintaining peace and security. During 2011/2012, the Ministry coordinated the implementation of the EAC Strategy for Regional Peace and Security, including coordination of and participation in three regional meetings of the Heads of Criminal Investigation and Motor Vehicle Registrars. These meetings were convened to exchange information and chart ways for combating crime in the Community. The Partner States agreed to regularly conduct joint and coordinated operations against theft of motor vehicles. In addition, the Partner States agreed to explore the possibility of involving Sudan, Ethiopia and South Africa in the fight against the new challenges emanating from human trafficking. 2H2: Harmonisation of Policing Operations: 116. Honourable Speaker, during 2011/2012, my Ministry coordinated consultations aimed at increased cooperation in police operations. Arising from these consultations, the Partner States are developing guidelines on the harmonisation and 77 management of policing operations in the Community. The Partner States also started, in 2011/2012, the verification of Forensic Centres in the region to determine their capacity with a view to designating one of them as a Regional Forensic Centre. In addition to improving service delivery in the Communities, the initiative will reduce costs to Partner States. The verification and related work will continue in 2012/2013. 2H3: The Fight Against Drug Abuse: 117. Honourable Speaker, the fight against drug abuse continued in 2011/2012. Partner States were able to exchange information on the techniques and routes used by drug traffickers. The Community has reviewed the respective Partner States’ laws on this matter with a view to facilitating consultations on how to harmonise them, including the sentences applicable to drug abuse offences. The exercise is to continue during 2012/2013. 2H4: Countering Terrorism: 118. Honourable Speaker, in the year 2011/2012, the Partner States continued to negotiate an EAC Agreement on Cooperation on Countering Terrorism. Finalisation of the 78 Agreement is an important step in strengthening cooperation in fighting terrorism in East Africa. Moreover, the Partner States are cooperating in the implementation of the project against the proliferation of small arms. Cooperation in these areas will be sustained during 2012/2013. 119. Honourable Speaker, in my 2011/2012 speech, I informed the House that the marking of arms exercise was to be held throughout the country. I now wish to report that the exercise was implemented, starting with Singida, Manyara, Tabora, Kigoma and Kagera Regions, and will continue in 2012/2013. 2H5: The Protocol on Peace and Security 120. Honourable Speaker, during 2011/2012, the Community finalized the Draft Protocol on Peace and Security and its Annexes, which are the Conflict Prevention, Management and Resolution Framework, and the Early Warning Mechanism. The Partner States are currently identifying the laws that will require review to facilitate implementation of the referred system. This process is expected to be completed in 2012/2013. 79 2H6: Protocol on Cooperation in Defence 121. Honourable Speaker, during 2011/2012, the Community finalised the Protocol on Cooperation in Defence. The Protocol was signed by the EAC Heads of State during their Summit in April, 2012 in Arusha. As part of this Protocol, the Partner States have agreed to commence consultation on the feasibility of promulgating a Mutual Defence Pact. The consultations will commence as soon as the Protocol is ratified by the Partner States. Consultations on the Mutual Defence Pact are expected to be completed in the course of 2012/2013. 2H7: Joint Military Exercises 122. Honourable Speaker, as part of cooperation in defence, the Community organised two Joint Military exercises in 2011/2012. . These were the “Exercise Natural Fire 11” and Ushirikiano Imara. Exercise Natural Fire 11 was conducted in Chukwani, Zanzibar in September, 2011 and involved the armed forces of the EAC Partner States and the USA. The main objective of the exercise was to build the capacity of the Partner States’ Defense Forces in 80 dealing with the challenges of terrorism, natural disasters, restoring peace and countering antipiracy operations. In addition, the exercise aimed at establishing and strengthening systems and common understanding in mounting operations of this nature. 123. Honourable Speaker, Operation Ushirikiano Imara was a Command Post Exercise for Commanders of Rescue Stations. The exercise was carried out in Musanze, Rwanda in October, 2011. The theme of this exercise was Peace Support Operations, Disaster Management, Counter Terrorism, and Counter Piracy. 124. Honourable Madam Speaker, the Ministry is currently coordinating the participation of our forces in the Field Training Exercise under Operation “Ushirikiano Imara” that will again be held in Rwanda in 2012/2013. The aim of this planned exercise is to give our troops readiness to deal with any defence, security or disaster challenges. 2H8: Cooperation in Political Affairs 125. Honourable Speaker, Article 6(d) of the EAC Treaty, among others, requires Partner States to observe democratic governance. During 81 2011/2012, the Partner States prepared guidelines for conducting transparent, free and fair elections. This guide will be used by Election Observers from the East African Community. 126. Honourable Speaker, in order to facilitate East Africans to access employment opportunities in regional and international organizations, the Partner States are cooperating in supporting each other’s citizens aspiring for employment in regional and international organisations. During the year 2011/2012, this form of cooperation enabled Tanzania’s Controller and Auditor General, Mr Ludovick Utouh, to secure a position in the United Nations Audit Board, following elections held in November 2011, at the UN Headquarters in New York, USA. 127. Honourable Speaker, through this august House, allow me to congratulate Mr. Ludovick Uttouh for this appointment, which adds to our nation’s credentials, and influence in the international arena. Moreover, let me reiterate my call to all Tanzanians aspiring for electable international positions to inform the Ministry of East African Cooperation to enable it to solicit support from our fellow Partner States in the East African Community. 82 2H9: Applications to Join the Community 128. Honourable Speaker, during the year 2011/2012, the Republic of Sudan and South Sudan applied to join the East African Community. 129. Honourable Speaker, Article 3(3) of the EAC Treaty sets out the criteria and conditions for admission of new members into the Community. The qualifications and criteria are as follows: (a) acceptance of the Community as set out in the Treaty; (b) adherence to universally acceptable principles of good governance, democracy, the rule of law, observance of human rights and social justice; (c) potential contribution to the strengthening of integration within the East African region; (d) geographical proximity to and interdependence between it and the Partner States; (e) establishment and maintenance of a market driven economy; and 83 (f) its social and economic policies being compatible with those of the Community. 130. Honourable Speaker, in addition, Article 11(9) (c) of the Treaty provides that only the Summit of the Heads of State of Partner States shall have powers over the admission of new members into the Community. The application from the Republic of Sudan was submitted to the Heads of State at their Summit Meeting in November, 2011 in Bujumbura, Burundi. After reviewing the application, the Heads of State observed that the Republic of Sudan, as of now, does not meet some of the criteria for admission set out in Article 3(3) of the Treaty, particularly geographical proximity to the Community. The application from the Republic of South Sudan is currently being reviewed to establish compliance with the criteria in Article 3(3) of the Treaty. 131. Honourable Speaker, also the Republic of Somalia submitted applications to join the Community in February 2012. The Heads of State will decide on this application in due course. 84 2I THE EAST AFRICAN COURT OF JUSTICE: Honourable Speaker, during 2011/2012, the East African Court of Justice continued to discharge its responsibilities effectively. The Court managed to conclude eleven (11) cases as shown in Appendix10. The Court is doing a commendable job. 2J: THE EAST AFRICAN LEGISLATIVE ASSEMBLY 132. Honourable Speaker, the East African Legislative Assembly (EALA) passed eleven Bills (11) into law. The Bills passed are listed in Appendix 11 hereof. 133. Honourable Speaker, according to the EAC Treaty, Community laws may be enacted based on Bills presented to the EALA by the Council of Ministers, or Private Motions submitted by members of the Assembly. The Ministry has noted several challenges regarding the submission and processing of Private Motions in the EALA. These challenges include insufficient involvement of the public in preparation of the Bills, the absence of opportunity for the Legislatures of the Partner 85 States to contribute to the Bills, and the asymmetry in the roles of the Council of Ministers and the EALA in discharging the legislative functions of the Community. 134. Honourable Speaker, cognisance of these challenges, and having regard to the operational principles of the Community that require a people-centred integration and decision making by consensus, the Government has submitted proposal for amending the Treaty in order to provide for a better and smooth legislative process via Private Bills. 135. The Ministry in collaboration with the Office of the Clerk to the Tanzania Parliament prepared Guidelines to improve the representation, accountability, and performance of the Members of the EALA. Among others, the Guidelines stipulate the mechanisms for the Members of the EALA to report and are accountable to the Parliament of Tanzania. In the process, this should contribute to improved cooperation and relations between this esteemed Parliament and the EALA. 136. Honourable Speaker, I suggest that the Guidelines be put to use and applied effectively in order to avail this House an opportunity to be informed of the business 86 transacted at the EALA and the integration process generally. 2K: PARTICIPATION OF THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR 137. Honourable Speaker, in 2011/2012, the Ministry continued to cooperate with the Revolutionary Government of Zanzibar (RGZ) in respect of the EAC integration.. The cooperation manifested in the conduct of joint studies, development of common national positions, regular consultations through joint teams in preparation for Community meetings, participation in Community Task Forces, and Community meetings. In this way, the interest of both parts of the Union have been safeguarded in the Community programmes and in the decisions reached at the regional level. Similarly, the two sides cooperated in the formulation of policies, agreements, projects, and various protocols of the Community. 2K1: Zanzibar Projects 138. Honourable Speaker, in my Ministry’s Budget Speech for 2011/2012, I informed this esteemed House about the status of implementation of the seven Zanzibar Projects 87 that had been presented by The United Republic of Tanzania and incorporated in the Community programmes for soliciting funding. The current status of those projects is as follows: 139. Honourable Speaker, the Pemba Airport project is among the priority projects discussed with the AfDB in November, 2011. Following those consultations, AfDB agreed to finance the final feasibility study with a view to eventually also funding its upgrading project. 140. Honourable Speaker, during 2011/2012, the Transport Strategy for the East African Commuity was approved. The Maruhubi Port Project is among Tanzania’s priority projects included in the Strategy. Moreover, the Dry Dock Construction project and the Roll on Roll Off (RORO) at the Zanzibar, Dar es Salaam and Mombasa ports are also included. In addition, these projects were presented by the EAC to the COMESA-EAC-SADC Tripartite for soliciting funding. Close involvement and follow up by the RGZ is essential for these Zanzibar- specific projects, as is the case for other projects presented by the Partner States. 2L: AWARENESS CREATION AND SENSITIZATION 88 141. Honourable Speaker, in order to enable Tanzanians to benefit from the opportunities arising from the East African integration, the Ministry has continued to provide public education about the integration process. 142. Honourable Speaker, in fiscal year 2011/2012, the Ministry provided public education through various media including workshops and seminars, TV and radio programs, stakeholder meetings, publications, flyers and brochures as follows: (a) Five TV programmes were broadcasted twice each week. More programmes will be aired during fiscal year 2012/2013; (b) Joint Sensitization (with the governments of the other Partner States) of the cross border communities were undertaken in collaboration with the Government of the Republic of Uganda and the Republic of Kenya at Mutukula and Namanga respectively; (c) Monthly press briefings to media outlets were made to provide updates on the progress of the EAC integration and regional projects; 89 (d) Seminars and workshops to the Members of the Union Parliament and the Members of the Zanzibar House of Representatives; and institutions of Higher learning; (e) Participation in the Nane Nane and Fifty Years of independence Exhibition; and (f) Preparing and distributing various publications. The publications include: Achievements in East African Cooperation during the Fifty Years of Independence; Be Aware of the Customs Union and the Opportunities it Represents; Get Aware of the Opportunities From the Common Market; A flyer on Frequently Asked Questions about the East African Community (Second Edition); a Ministry’s Newsletter; A publication on the East African Community integration process, procedures, principles and the stages successfully completed. 143. Honourable Speaker, in 2011/2012, the Ministry continued with the finalisation of a Communication Strategy that will guide awareness creation to various stakeholders groups. The Draft Strategy has been completed and is ready for operation in 2012/13. 90 2M: ADMINISTRATION AND RESOURCES DEVELOPMENT HUMAN 2M1: Capacity Building 144. Honourable Speaker, in its endeavour to build capacity for discharging its functions, the Ministry accomplished the following milestones: (a) Six (6) Leadership Positions were filled through appointments, and three (3) Operational Service positions were filled through new recruitment as shown in Appendix 13; (b) thirty (30) staff were promoted as shown in Appendix 14; (c) Seven (7) employees were confirmed of their employment, and eleven (11) members of staff confirmed in leadership positions. These measures are summarised in Appendix 15. 145. Honourable Speaker, during the year 2011/2012, the Ministry prepared a Three Year Training Plan for 2011/12-2013/14. As of May 2012, sixteen (16) members of staff had attended long courses in and out of the country, and 91 another thirty-five (35) attended short courses in and out of the country. 2M2: Cross Cutting Issues Public Service Ethics 146. Honourable Speaker, during 2011/2012, eighty (80) members of staff received induction training on public service ethics. The coverage of the induction course included security issues, ethics and conduct of public personnel in the day-to-day delivery of public service. Fight Against HIV and AIDS Infection 147. Honourable Speaker; during 2011/2012, the Ministry conducted awareness creation training to employees on how to avoid HIV/AIDS. Eighty-seven (87) employees took part in this training. The ministry also continued to support employees living with HIV/AIDS, by providing them with supplementary nutrients and advice on healthy living and treatment. The Ministry also sensitised its employees against stigma and discrimination against the infected employees. 92 2M3: Workers’ Participation in Decision Making 148. Honourable Speaker, paragraph 80 (c) of the CCM Election Manifesto for 2010 requires the Government to resolve and determine all labour disputes in good time, and to strengthen workers’ participation in decision making at work places. In carrying out these directives, and to facilitate productivity and tranquillity at work, the Ministry has continued to involve staff through the following measures: (a) Carrying out joint Management and Staff meetings annually; (b) Organising Meetings; (c) Organising Retreats for Management Team every quarter; monthly (d) Management the Adherence to the Employment and Labour Relations Act of 2004, including organising the Workers council Meeting. The Ministry had two (2) Workers’ Council meetings in 2011/2012 2N: FINANCIAL MANAGEMENT 93 149. Honourable Speaker, during 2011/2012, the Ministry continued with strengthening the management of Government revenues and expenditure on the basis of the Public Finance Act, the Public Procurement Act, and Government directive that require MDAs to hold quarterly Meetings of the Oversight Committee on Revenue and Expenditure. The Ministry also prepared and implemented the Procurement Plan for 2011/2012. Allow me to use this opportunity to inform your esteemed House that, for 2010/2011, my Ministry received a clean audit report from the National Audit Office (NAO). 150. Honourable Speaker, The Ministry was also audited by the Public Procurement Regulatory Authority (PPRA) in 2011/2012 with a view to assessing the extent to which the Ministry complies with Public Procurement Act No 21 of 2004 and the Regulations thereunder. The audit reveals that the Ministry scored highly, at 84%, on PPRA’s compliance scale. 2P: CONTRIBUTION TO THE EAST AFRICAN COMMUNITY 151. Honourable Speaker, the EAC Partner States are generally expected to have made their annual contributions to the 94 Community by the end of December each year. In 2011/2012, each Partner State was supposed to contribute USD 6,333,700, equivalent to TZS 11,016,151,636. In that year, the Ministry paid the contribution in full. The challenges in this regards, are our inability to contribute in good time, and the increasing level of contributions expected from Partner States due to the rapid expansions Community’s operations. The increase in contributions has not been commensurate with the Ministry’s budget allocations. The Ministry is engaged in consultations with the Ministry of Finance with a view to finding a lasting solution to these challenges. 152. Honourable Speaker, on behalf of the Ministry and the East African Community, I would like to sincerely thank the Development Partners that are cooperation with us in the execution of different programs and projects in the Ministry and the Community, especially the governments of the United Kingdom, France, Canada, Norway, Sweden, Belgium, Denmark, Finland, USA, Japan, and Germany; international organisations and institutions including the European Union, the African Development Bank (AfDB), DfID, the Bank of Japan, the Japanese International Corporation Agency (JICA), the Japanese International 95 Development Bank (JBIC), the world Bank, GIZ, the Rockefeller Foundation, Kilimo Trust, The Investment Climate Facility for Africa (ICF), AWEPA, African Capacity Building Facility (ACBF), British American Tobacco (BAT); Trade Mark East Africa (TMEA), and the International Planned Parenthood Federation Africa Region (IPPFAR). 153. Honourable Speaker, similarly, I also wish to commend all those countries that have presented their diplomatic identity documents to the East African community. 3.0 CHALLENGES AND MEASURES BEING TAKEN TO MITIGATE THEM 154. Honourable Speaker, notwithstanding the achievements in the implementation of the Ministry’s programmes for the fiscal year 2011/2012, there are still several challenges that the Ministry continues to encounter. They include the following: (a) Inadequate attention and sensitivity placed on the integration process by some stakeholders, leading to their failure to accommodate the integration issues in the sectoral and national plans, as well as failing to participate effectively 96 in the integration process especially in their respective areas of responsibility; (b) the rapid expansion of the East African Community, that is not consistent with the increase in the human and financial resources of the Ministry; (c) insufficient budgetary allocation, which is compelling the Ministry to leave out some of its programmes unattended; (d) Inadequate awareness of the East African Community integration issues among the public, leading to the failure of Tanzanians to take advantage of the many opportunities arising therefrom; (e) Misleading information propagated by some media houses, knowingly or unknowingly; and (f) Some internal and external stakeholders seeking to accelerate the integration process irrespective of the consequences thereof. 155. Honourable Speaker, in mitigating these challenges, the Ministry has taken the following measures: 97 (a) prepared a National Policy on Regional Integration; (b) continued to encourage and involve different sectors in regional integration issues to enable them mainstream and accord sufficient weight to the implementation of the integration initiatives in their sectors; (c) Conducted studies and analyses for effective participation in negotiations, articulation of opportunities and challenges of integration and developing appropriate strategies for creating Tanzanians awareness and utilisation of opportunities, and the means of dealing with the identified challenges; (d) Convened stakeholders meetings prior to and after Community to enable adequate preparation for a progressive and systematic integration necessary for a sustainable integration; ; ensuring that national interests are sufficiently protected; and that the decisions reached in the Community are implemented on time; 98 (e) implementation of the Public Education Plan by adopting different strategies for that purpose; (f) Collaboration with PMO-RALG in respect of the need for the Local Authorities to mainstream EAC issues in their activities and allocate sufficient resources for implementing theme, and train the selected LGA trainers and empower them to effectively provide public education in their areas; (g) Preparation of the EAC Common Market Implementation Plan, identifying the relevant sectoral strategies, and the responsibilities of each stakeholder so as to enable Tanzanians to benefit accordingly ; and (h) Preparation and implementation of a sustainable training plan to build the capacity of our human resources and increase efficiency in the implementation of the Ministry’s obligations. 4.0 ACTIVITIES TO BE IMPLEMENTED IN FISCAL YEAR 2012/2013 99 156. Honourable Speaker, my Ministry, in corroboration with the Sector Ministries and other stakeholders, will continue with the discharge of its functions in 2012/2013. The priority activities for the financial 2012/2013 shall include the following: (a) To coordinate and oversee implementation of the EAC Treaty and its Protocols; (b) To complete the internal process for the Government’s approval of the National Regional Integration Policy, and commence its implementation; (c) To review the Ministry’s Strategic Plan in order to align it with the National Five Year Development Plan (2011/2012 – 2015/2016), and the Community’s Development Strategy (2011/2012 – 2015/2016); (d) To coordinate the implementation of the National EAC Common Implementation Strategy; (e) To Market conduct public education and sensitisation programmes to enhance stakeholders’ awareness about the 100 opportunities integration; (f) arising from the EAC To finalise the rationalisation and harmonisation exercise of national laws for compliance with the provisions of the EAC Common market Protocol; (g) To coordinate and lead Tanzania’s participation in negotiating the COMESA-EAC-SADC Tripartite Arrangement; (h) To coordinate and lead Tanzania’s participation in the negotiations for the establishment of an EAC Monetary Union; (i) To coordinate and lead Tanzania’s participation in negotiating an operational framework of the EAC Single Customs Territory; (j) To participate and lead Tanzania’s participation in the verification of the Republic of South Sudan’s readiness to join the Community; (k) To coordinate the implementation of the EAC Infrastructure Development Strategies (Roads, Railways, Broadband 101 ICT Network, and the Power Generation and Transmission Plan); (l) To coordinate the implementation of Sectoral Programmes in the productive and social service sectors; (m) To coordinate the preparation of various Protocols and legislations, including the Protocol on Peace and Security the Protocol on Good Governance; the Protocol on Combating Corruption; the Protocol on Extension of the Mandate of the East African Court of Justice; the Mutual Defence Pact; the East African Development Fund Pact; the legal framework for the operation of One Stop Border Posts; the Axle Load Limits Harmonisation legislation, and the Standards and Quality Protocol and legislation; (n) To coordinate the implementation of various Community policies and strategies, including the Industrial Development Policy, the Food Security Policy, the Action Plan for Mitigating the Effects of Climate Change, and the NTBs Elimination Plan which includes 102 construction of One Stop Border Posts (OSBP); (o) To undertake analysis aimed at developing a country position that embodies the public’s views on an appropriate model of an EAC Political Federation; (p) to build the Ministry’s capacity so that it becomes a Think Tank on matters of regional integration and, in collaboration with other stakeholders, to undertake evaluations and detailed analyses for the formulation of positions that secure national interests in negotiations and in various stages of the integration process; and (q) To pay Tanzania’s contribution to the Community. 157. Honourable Speaker, with great humility, I thank the residents of the Urambo East Constituency for their faith in me, and their advice and cooperation that has enabled me to perform my parliamentary duties effectively and efficiently. Through this esteemed House, I assure them that I will continue to cooperate with them and ensure that the development of 103 the Urambo East Constituency accelerates towards meeting international standards. 158. Honourable Spika, I cannot conclude this speech without thanking my good and beloved wife, Hon. Margaret, who has always been my very close mentor. I am also grateful to my family in general for their love and cooperation that has enabled me at all times to perform my duties in a professional, confident and effective manner. 5.0 FUNDING REQUEST FOR FINANCIAL YEAR 2012/2013 159. Honourable Speaker, in order to discharge responsibilities and plans outlined above and achieve the desired objectives, the Ministry of East African Cooperation requests that approval be granted for it to spend a total of TZS 16,643,667,000 as follows: Personal Emoluments (PE) Other Charges (OC) TOTAL - TZS 1,378,292,000 TZS 15,265,375,000 TZS 16,643,667,000 104 160. Honourable Speaker, along with this Speech there are several Appendixes. I pray that those appendixes be accepted as submissions in support of my request. Moreover, my Speech may be accessed on the Ministry’s website, that is, www.meac.go.tz. This speech is also available in Kiswahili. 161. Honourable Speaker, now allow me to extend my sincere gratitude to you personally, and to my fellow Members of Parliament, for listening to me. 162. Honourable Speaker, I beg to move. 105 APPENDIXES Appendix 1: Trends of Partner States Exports in the EAC, 2005 - 2011 (US$ Million 2005 2006 2007 Uganda 87.90 101.80 148.80 Tanzania 142.00 147.40 169.40 Kenya 831.20 641.00 830.40 Burundi 5.40 27.00 15.40 Rwanda 36.80 36.60 45.10 Total 1103.30 953.80 1209.10 Source: East African Trade Report 2011 106 2008 195.20 310.50 1036.60 10.70 43.40 1596.40 2009 398.80 285.00 1169.50 14.20 93.20 1960.70 201 428.6 462.7 1280.0 16.0 50.4 2237.7 Appendix 2: Trends of Partner States Imports in the EAC, 2005 – 2011 (US$ Million) 2005 2006 2007 2008 2009 2010 2011 Uganda 550.80 429.70 526.50 566.80 547.00 576.50 692.50 Tanzania 175.90 220.60 110.10 425.30 316.90 295.90 378.10 Kenya 59.50 76.70 188.00 181.00 162.50 256.80 302.90 Burundi 53.80 61.40 79.60 84.90 86.80 89.20 160.80 Rwanda 97.20 139.80 201.90 303.30 363.50 344.60 Total 937.20 928.20 1106.10 1561.30 Source: East African Trade Report 2011 1476.70 1563.00 1919.40 Total 107 Appendix 3: Trends of Total Intra-EAC Trade 2005-2011 (US$ Million) (US$ MILLION) Uganda Tanzania Kenya Year 2005 638.7 0 317.9 0 890.7 0 2006 531.4 0 368.0 0 717.7 0 2007 675.3 0 279.5 0 1,018 .40 Burundi 2008 762.0 0 735.8 0 1,217 .60 59.20 88.20 95.00 95.60 134.0 176.4 247.0 346.7 Rwanda 0 0 0 0 2,040 1,882 2,315 3,157 TOTAL .50 .00 .20 .70 Chanzo: East African Trade Report 2011 108 2009 945.7 0 601.9 0 1,332 .00 101.0 0 456.6 0 3,437 .40 2010 1,005 .10 758.6 0 1,536 .80 105.2 0 395.0 0 3,800 .70 2011 1,196 .20 787.1 0 1,847 .20 189.1 0 466.2 0 4,486 .00 Exports Imports Balance Appendix 4: Tanzania’s Balance of Trade with other EAC Partner States 20052011 (US$ Million) Year 2005 2006 2007 2008 2009 2010 142.00 147.40 169.40 310.50 285.00 462.70 175.90 220.60 110.10 425.30 316.90 295.90 -33.90 -73.2 59.3 -114.8 -31.90 166.8 Chanzo: East African Trade Report 2011 109 2011 409.00 378.10 30.90 Appendix 5: Investment Inflows into Tanzania from other Partners States (Number of Projects and Value in US$ Million) 2005 2006 2007 2008 2009 2010 ML USD No. Kenya 34 Uganda Rwand a Burund i TOTA L No. 36 1 37.5 4 2.11 - ML USD No. 23 2 38.7 6 2.3 - - - - ML USD No. 72 4 44.0 8 6.80 - - - - ML USD No. 35 5 308. 08 2.27 - - - - - - 35 39.6 38 41.0 27 50.8 77 310. 5 6 8 35 Source: Tanzania Investment Centre (TIC) 110 ML USD 2011 ML No. USD ML USD 1 67.2 3 0.17 1 9 1 11.3 8 0.31 No. 27 2 49.4 9 33.7 3 0.48 1 1.64 1 - - 4 4.62 - 46.6 6 - 42 83.7 33 73.6 6 2 1 58.3 5 5 Appendix 6: Tanzania’s Leading Sectors in Attracting Regional Investors (Number and Value in US$ Million) PRODUCTION NUMBER VALUE EMPLOYMENT YEAR OF (MIL (NUMBER OF PROJECTS USD) JOBS) 2005 5 8.01 127 2006 12 15.07 2,163 2007 15 7.64 255 2008 23 231.22 429 2009 21 30.70 1,143 2010 10 16.55 1,761 2011 5 9.61 744 TOTAL 91 318.8 6,622 SERVICES 2005 2006 2007 2008 2009 2010 2011 TOTAL 4 4 2005 2006 2007 2008 2009 2010 2011 TOTAL CONSTRUCTION 3 3.06 9 7.85 4 2.78 13 19.16 3 3.83 11 17.34 4 19.62 47 73.64 17.72 17.72 111 198 198 17 53 21 67 29 395 145 727 2005 2006 2007 2008 2009 2010 2011 TOTAL AGRICULTURE 1 3.25 1 6.67 2 7.82 3 9.28 2 0.65 3 11.90 2 4.03 14 43.60 TRANSPORTATION 2005 2 2.34 2006 3 4.62 2007 4 2.16 2008 9 11.20 2009 3 8.07 2010 4 23.72 2011 2 7.49 TOTAL 27 59.60 TOURISM 2005 3 2.30 2006 5 2.71 2007 4 2.82 2008 11 11.56 2009 5 3.98 2010 3 1.96 2011 4 15.49 TOTAL 35 40.82 Source: Tanzania Investment Centre (TIC) 112 107 206 1524 12 21 1,382 165 3,417 87 363 106 226 141 722 218 1,863 40 213 29 164 181 68 198 893 APPENDIX 7 Leading Sectors in Job Creation 2005-2011 SECTOR YE Produc Servi Constru Agricul Trans Touri AR tion ces ction ture port sm 200 127.0 17.0 107.0 87.0 40.0 5 200 2,163.0 53.0 206.0 363.0 213.0 6 200 255.0 21.0 1,524.0 106.0 29.0 7 200 429.0 67.0 12.0 226.0 164.0 8 200 1,143.0 29.0 21.0 141.0 181.0 9 201 1,761.0 395.0 1,382.0 722.0 68.0 0 201 744.0 198.0 145.0 165.0 218.0 198.0 1 Chanzo: Kituo cha Uwekezaji Tanzania (TIC) 113 Appendix 8: The East African Road Network 114 115 Appendix 9: The East African Railway Network 116 117 Appendix 10 List of Cases decided by the East African Court of Justice in 2011/2012 Case/Appe Parties Explanation Decision al No. of the Case/Appe al Appeal No. Legal The On 19th 4 of 2012 Brains Trust Appellant April, 2012 Ltd versus was the The aggrieved Appellate Attorney by the Division General of decision of upheld the the the First decision of Republic of Instant the First Uganda Division in Instant Reference Division. No. 10 of 2011 where it was inter alia held that the Applicants had no locus standi to challenge the interpretatio n by the 118 Reference Democrati No. 6 of c Party 2011 versus The Secretary General of the EAC and the Attorney General of the Republic of Uganda Attorney General of the Republic of Uganda on Article 51(1) of the EAC Treaty regarding the limit for holding office in the East African Legislative Assembly (EALA) The applicants requested the Court to stay the Election of EALA Members until the Rules of Procedure of Parliament of Uganda for election of EALA 119 The decision on this reference was delivered on 10th May, 2012 where the First Instant Division stayed the Election of EALA Members until the Members would be amended to conform to Article 50 of the EAC Treaty. Appeal No. Emmanuel 4 of 2011 Mwakisha and 748 other versus the Attorney General of the Republic of Kenya The Appellant was aggrieved by the decision of the First Instant Division in Reference No. 2 of 2010 where it was held that according to Article 10.05 of the 120 Rules of Procedure of Parliament of Uganda for election of EALA Members would be amended to conform to Article 50 of the EAC Treaty. On 27th April, 2012 the Appellate Division upheld the decision of the First Instant Division. Reference Legal No. 10 of Brains Trust 2011 Ltd versus The Attorney General of the Republic of Uganda Mediation Agreement of 1984, issues relating to pensions of employees of the defunct EAC are handled by National Courts. The applicants requested the Court to decide that Article 51(1) of the EAC Treaty does not bar any person to be reelected to become Member of the East African Legislative Assembly 121 The decision on this reference was delivered on 30th March, 2012 where the First Instant Division held that the proper interpretati on of Article 51 (1) of the (EALA) after holding office for two terms of five years each. Appeal No. Alcon 2 of 2011 Internation al Limited versus Standard Chartered Bank of Uganda and Others The Applicant sought the court order to compel the Respondent to honor its guarantee to pay the applicant US$ 8,858,469.97 together with its interest on behalf of NSSF Uganda. 122 Treaty is that any person is not eligible for reelection to EALA after holding office for two terms of five years each On 16th March, 2012, the Appellate Division held that according to Article 35A of EAC Treaty, the Appellate Division has jurisdiction to determine appeals from the First Instant Division Appeal No. The 3 of 2011 Attorney General of the United Republic of Tanzania versus African Network for Animal Welfare (ANAW) The claimed amount was an award given to the applicant by an arbitrator on a dispute between him and NSSF of Uganda. The appellant filed an appeal against the decision of the Court of First Instance on Reference No. 9 of 2010. In that reference the court decided that according to articles 5 (2) and (3), 123 and not to determine cases which are under the jurisdiction of the First Instant Division. The decision on this Appeal was delivered on 15th March, 2012 where the Appellate Court upheld the decision of the Court of First Instance, that according to articles 5 8(1) (c), 111(1)(d), 111(2) together Articles 114(1) (a) and (b) of the Treaty for the Establishme nt of East African Community it has jurisdiction to determine matters relating to protection of environment s in Partner States The appellant Appeal No. The filed an 1 of 2011 Attorney General of appeal at the Appellate the of Republic of Division EACJ Kenya challenging versus 124 (2) and (3), 8(1) (c), 111(1)(d), 111(2) together Articles 114(1) (a) and (b) of the Treaty EACJ has jurisdiction to determine matters relating to protection of environme nt in Partner States On 15th Mach, 2012, the Appellate Division delivered its Independe the ruling of nt Medical the Court of First Instance Legal Unit on the ground that the defendant filed the case outside the time limit prescribed under Article 30(2). This Article requires cases to be filed within three months from the occurrence of the event complained against. Reference Mary The No. 7 of Ariviza and claimants 2010 others wanted the versus the court to set Attorney aside the General of decision an the Interim Republic of Independen Kenya and t 125 judgment in favour of the appellant. It agreed that the respondent were time barred to file their case at EACJ On 30th November 2011, the EACJ delivered its judgment against the claimants Secretary Constitution General of al Dispute EAC Resolution Court (IICDRC) of Kenya which ruled against them on their applications to stop the process of promulgatin g the New Constitution of Kenya. Reference Alcon The first No. 6 of Internation respondent 2010 al Limited was sued for versus failure to Standard honor his Chartered guarantee Bank of to pay the Uganda applicant and Others US$ 8,858,469.97 together with its interest. The claimed 126 on the ground that EACJ does not have jurisdiction to determine appeals from National Courts. On 29th November 2011, the EACJ decided against the applicant on the ground that according to Article 30 of the Treaty, amount was an award given to the applicant by an arbitrator on a dispute between him and NSSF of Uganda. However, during this case there was a case pending at the High Court of Uganda filed by NSSF against that award In this case Reference The the Attorney No. 9 of Attorney of 2010 General of General Tanzania United an Republic of raised Objection Tanzania that EACJ versus does not African Network for have 127 EACJ does not have jurisdiction to entertain cases that are pending before National Courts. On 29th August 2011, the court decided in favour of the respondent . The court Reference Animal Welfare (ANAW) jurisdiction to determine cases relating to matters of environment in the Partner States. He averred that environmenta l matters are still within the jurisdiction of National Courts. Emmanuel The 128 observed that according to articles 5 (2) and (3), 8(1) (c), 111(1)(d), 111(2) together Articles 114(1) (a) and (b) of the Treaty for the Establishme nt of East African Community it has jurisdiction to determine matters relating to protection of environme nt in Partner States. On 29th No. 2 2010 of Mwakisha and 748 other versus the Attorney General of the Republic of Kenya applicants who were former employees of the defunct East African Community filed this case complaining that the Kenyan Government has neglected/fail ed and or refused to pay to them pensions and other benefits due to them for services they had rendered to the defunct EAC 129 September 2011 the court delivered its judgment against the applicants on the ground that according to the Mediation Agreement of 1984, issues relating to pensions of employees of the defunct EAC are handled by National Courts. Appendix 11: Bills Adopted by the EALA 2011/2012 No. 1. 2. 3. 4. Bills The Administration of the East African Legislative Assembly Act, 2011. The East African Community Service Commission Act, 2011. The East African Community Tourism and Wildlife Management Act, 2010. The East African Parliamentary Institute (EAPI) Bill, 2011. 5. The East African Community Legislative Assembly Elections Bill, 2011. 6. The East African Community Polythene Bags Control Bill, 2011. The African Community Trans-boundary Ecosystems Management Bill, 2010. The Inter-University Council of East Africa, (Amendment Bill), 2010. The East African Community Human and Peoples Rights Bill, 2011. The East African Community Elections Bill, 2011. The East African Community HIV and AIDS Control and Prevention Bill, 2012. 7. 8. 9. 10. 11. 130 1. 2. 3. 4. 5. 6. 7. Resolutions EALA Resolution paying tribute to Rt. Hon. Abdirahin H. Abdi for the excellent focused dedicated and determined leadership he exhibited during his tenure of office as Speaker of the 2nd East African Legislative Assembly. EALA Resolution urging the Summit of EAC Heads of State to intervene and resolve the conflict between Sudan and South Sudan and other related matters. EALA Resolution to support the promotion of Culture as a lever to raise an East African Identity and as an asset to EAC Social and Economic Integration. EALA Resolution urging the Secretary General and the Council of Ministers to enhance access of Persons with Disabilities to the New EAC Headquarters. EALA Resolution urging the Council of Ministers to engage further with the European Union to address pertinent issues raised by the Assembly. EALA Resolution urging National Parliaments to Commemorate the World Day of Democracy on 15th September each year. EALA Resolution seeking the EAC Council of Ministers to implore the International Criminal Court to transfer the case of the 131 8. 9. accused four Kenyans facing trial in respect of the aftermath of the 2007 Kenyan General Elections to the East African Court of Justice and to reinforce the Treaty Provisions. Azimio la Bunge la Afrika Mashariki la kuipongeza Sudan ya Kusini kupata Uhuru wake (EALA Resolution to Commend Southern Sudan for attaining her Independence). Resolution of the East African Legislative Assembly to Mark the International Day for the Elimination of Violence Against Women and the 16 Days of Activism 25 November to 10 December. Appendix 12 132 Positions Filled Through Appointments and Recruitment 2011/2012 N O. A 1. 2. 3. 4. B POSITION Director Head Division Assistant Director Assistant Director NUMB ER 1 of 1 1 3 DEPARTMENT Political, Defence Security ICT Division and Administration and Management. Policy and Planning HR Positions Filled Through Recruitment under Operation Service Driver II 3 Administration and HR Management. Appendix 13 133 Confirmed Staff 2011/2012 NO . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 FORMER POSITION Office management Secretary Personal Secretary II Accountant II Assistant Accountant Accounts Assistant Economist II Finance Management Officer II Engineer II Legal Officer II Supplies Officer II Assistant Supplies Officer Systems Analyst II Internal Auditor II Driver II Office Assistant Administrative Officer II Registry Assistant II TOTAL Appendix 14 134 NEW POSITION Principal Executive Assisstant II Personal Secretary I Accountant I Accountant II Assistant Accountant Economist I Finance management Officer I Engineer I Legal Officer I Supplies Officer I Supplies Officer II Systems Analyst I Internal Auditor I driver I Senior Office Assistant Administrative Officer I Registry Assistant II Confirmed Staff in their Employment and Promotions A 1 2 3 4 5 6 7 B 1 2 3 Confirmed Position in Employment Accountant II Information Officer II Community Développent Office II Finance Management Officer II Economist II Economist II Trade Officer II Dat of Confirmation 14/04/2011 28/05/2011 30/06/2010 18/02/2011 21/10/2011 25/10/2012 12/10/2012 Confirmed Appointments Assistant Director22/12/2011 Administration Assistant Director-Planning 22/12/2011 and Budget Assistant Director-Policy 22/12/2011 135 MINISTRY OF EAST AFRICAN COOPERATION AGOSTI, 2013 “ Services to Standards and with Speed’’ TANZANIA KENYA 136 UGANDA RWANDA BURUNDI 137