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Rwanda and Burundi strengthen East African Community
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THE FORMAL entry of Rwanda and Burundi into the East African Community will strengthen the regional economy by making it a more attractive investment destination, analysts say.
The entry of the two neighbours will increase the block’s population to 110 million people. |
Rwanda had previously applied in 1996 to join the EAC, and Burundi in 1998. However, the applications were deferred because the three founding partners were yet to establish the Customs Union, which came into force in January, 2005.
EAC secretary general, Juma Mwapachu, said recently after the two countries’ accession, that the region’s base for investments and trade would be widened, making it attractive for investments in agriculture, tourism and mining.
Last year, the two countries wanted to delay joining the EA Customs Union by about three years, which was rejected.
By accepting to join the community, Rwanda and Burundi will have to adopt a Common External Tariff and lower the tariff barriers against certain goods regardless of the effect on their local industries. In addition, bringing the two economies in will make inter regional infrastructure investments more attractive.
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