East African Community EAC DEVELOPMENT STRATEGY (2016/17 – 2020/21) Accelerating a People-centered and Market-driven Integration Foreword The 5th EAC Development Strategy for the period 2016117-2020/21 outlines the broad strategic development objectives that the Community will pursue during the next five years in line with the Treaty for the Establishment of the East African Community and the EAC Vision 2050. Formulation of the Strategy has taken into account the obligations of the Community within the development frameworks at intra and inter-regional, continental and global levels (EAC Partner States, COMESA, SADC, AU Agenda 2063 and the Post-2015 UN Development Agenda). The overall goal of the 5th EAC Development Strategy is to build a firm foundation for transforming the East African Community into a stable, competitive and sustainable lower-middle income region by 2021. To realise this goal, the Community shall focus on seven (7) key priority areas, namely i) consolidation of the Single Customs Territory (SCT); ii) development of regional infrastructure; iii)enhancement of free movement of all factors of production as envisaged under the Common Market and Monetary Union Protocols; iv) enhancement of regional industrial development; v) improvement of agricultural productivity; vi) promotion of regional peace, security and good governance; and vii) institutional transformation at the regional and Partner State levels. The Community shall therefore devote to the pursuit of programs, projects and other interventions aimed at accelerating a people­ centred and market-driven integration that will also facilitate faster and more sustainable socio­ economic development and transformation of the EAC region. On behalf of the Summit of EAC Heads of State, I appreciate and applaud the good work that has been undertaken by the Organs and Institutions of the Community in producing this Development Strategy. I also appreciate the financial support provided by the Partnership Fund and GIZ, the guidance provided by the Council of Ministers, inputs by the stakeholders and development partners, the expertise by REEV Consult International in the formulation of the 5th EAC Development Strategy. Effective implementation of the 5th EAC Development Strategy will steer the region to greater heights of regional and international competitiveness, and boost the welfare and prosperity of the people of East Africa. Our respective Governments are fully committed to the implementation of this Development Strategy. • H. WERI K. MUSEVEN PRESIDENT OF THE REPUBLIC OF UGANDA AND CHAIRPERSON OF mE SUMMIT OF EAC HEADS OF STATE TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................. x 1.0 BACKGROUND ...................................................................................................................... 1 1.1 Introduction .............................................................................................................................. 1 1.2 The East African Community (EAC) ....................................................................................... 1 1.2.1 Salient Features of the East African Community (EAC) .......................................................... 1 1.2.2 Vision, Mission and Core Values of the EAC .......................................................................... 1 1.2.3 Objective of the EAC................................................................................................................ 2 1.2.4 EAC Legal, Institutional and Policy Frameworks .................................................................... 2 1.2.5 Development Frameworks of EAC Partner States .................................................................... 2 1.3 Structure of the Development Strategy Document ................................................................... 3 2.0 SITUATIONAL ANALYSIS ................................................................................................... 5 2.1 Major Governance and Political Developments in the EAC Region ........................................ 5 2.2 Macro-economic Dynamics and Economic Development ........................................................ 7 2.2.1 Economic Growth ..................................................................................................................... 7 2.2.2 Inflation Development .............................................................................................................. 7 2.2.3 The External Sector .................................................................................................................. 8 2.2.4 Fiscal Sector Developments ..................................................................................................... 9 2.3 Human Capital Development in the EAC Region .................................................................... 9 2.4 Regional Infrastructure Development ......................................................................................10 2.4.1 Road Network ..........................................................................................................................11 2.4.2 Railway Network .....................................................................................................................11 2.4.3 Sea and Lake Ports ..................................................................................................................11 2.4.4 Air Transport ...........................................................................................................................12 2.4.5 Information and Communication Technology .........................................................................12 2.5 Productive Sectors ...................................................................................................................13 2.5.1 Agriculture & Livestock ..........................................................................................................13 2.5.2 Environment and Natural Resources .......................................................................................14 2.5.3 Tourism and Wildlife Management .........................................................................................14 2.5.4 Industry and Small and Medium Enterprises ...........................................................................15 2.5.5 Energy Production, Access and Consumption .........................................................................16 2.6 The Social Sectors of the EAC ................................................................................................17 2.6.1 Health ......................................................................................................................................17 2.6.2 Education .................................................................................................................................20 2.6.3 Science, Technology and Innovation .......................................................................................20 2.6.4 Community Development and Social Protection .....................................................................21 2.6.5 Culture and Sports ...................................................................................................................21 2.6.6 Labour, Employment and Social Security ...............................................................................22 2.6.7 Social Security .........................................................................................................................22 2.6.8 Immigration and Refugee Management...................................................................................22 2.6.8.1 Immigration .............................................................................................................................22 i 2.6.8.2 Refugee Management ..............................................................................................................23 2.7 Implications for Regional Development and Socioeconomic Transformation ........................23 2.8 Cross-Cutting Issues ................................................................................................................24 2.9 SWOT Analysis, Risk Analysis and Stakeholder Analysis .....................................................25 2.9.1 SWOT Analysis .......................................................................................................................25 2.9.2 Risk Analysis and Mitigation ..................................................................................................29 2.9.3 Stakeholder Analysis ...............................................................................................................30 3.0 REVIEW OF PERFORMANCE OF THE 4TH EAC DEVELOPMENT STRATEGY 2011/12 – 2015/16 ............34 3.1 Overview .................................................................................................................................34 3.2 Performance Assessment under the Pillars of the EAC Integration.........................................34 3.2.1 Customs Union ........................................................................................................................34 3.2.2 Common Market ......................................................................................................................35 3.2.3 Monetary Union .......................................................................................................................36
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