a publication of the ministry of east african community minaffet national...ii the national policy...

A PublicAtion of the Ministry of eAst AfricAn coMMunity

rePublic of rwAndA

the nAtionAl Policy & strAtegy on eAc

integrAtion

Approved by cAbinet on 08 FebruAry 2012

published by the Ministry of east African community, rwanda

iThe National Policy & Strategy on EAC Integration, February 2012

Ministry of East African Community (MINEAC)

TABLE OF CONTENTS

Glossary iiiFOREWORD vEXECUTIVE SUMMARY vi1. National Policy On Eac Integration 11.1. issue 11.2. context 2

1.2.1 background 21.2.2 Status of eAc integration 21.2.3 relationship with other policies 3

1.3. vision, objectives and policy 41.3.1 vision and objectives of policy 41.3.2 the policy 4

1.4. Stakeholder views 91.5. Financial implications 101.6. Legal implications 101.7. impact on business 111.8. impact on equality, unity and reconciliation 111.9. Handling plan 122. National strategy on eac integration 132.1. issue 132.2. Analysis 132.3. Strategic issues 13

2.3.1 Mainstreaming regional integration into rwanda’s development 14

2.3.2 engaging eAc institutions 142.3.3 Mitigation& Safeguard Measures 162.3.4 Following up on eAc decisions and obligations

regionally 172.3.5 Monitoring and evaluation at national Level 192.3.6 communication and Sensitisation 20

2.4. Areas of cooperation 212.5. impact of eAc Membership on rwanda’s Legal Framework 22

2.5.1 Supremacy of eAc law 22

ii The National Policy & Strategy on EAC Integration, February 2012


2.5.2 rwanda’s Legal Framework 222.5.3 Alignment of rwanda’s Laws with eAc

commitments 232.5.4 Harmonisation and Approximation of

commercial Laws 242.5.5 ‘pro-active’ Legislative reform 252.5.6 business climate reform 25

2.6. institutional Framework 262.6.1 MineAc’s Mandate and positioning 262.6.2 eAc integration coordination Framework 272.6.3 challenges in the eAc integration process 28

3. Preferred Options / Recommendations 293.1. Selection criteria for priority Setting 293.2. cross-cutting issues 29

3.2.1 Mainstreaming regional integration 293.2.2 engaging eAc institutions 303.2.3 Mitigation and Safeguard Measures 323.2.4 Following up on eAc decisions and obligations

regionally 343.2.5 Monitoring and evaluation (national) 353.2.6 communication and Sensitisation 35

3.3. Areas of cooperation 363.3.1 economic cluster 373.3.2 Social cluster 443.3.3 Governance cluster 463.3.4 cross-cutting Area 48

3.4. Legal Framework 48

3.4.1 constitution 483.4.2 eAc Legislative reform programme 49

3.5. institutional Framework 503.5.1 eAc integration coordination Framework 503.5.2 MineAc’s Mandate, positioning and capacity 543.5.3 Ministerial committee and SWGs 55

4. ANNEX: History of EAC and Levels of Integration 56

iiiThe National Policy & Strategy on EAC Integration, February 2012


GLOSSARY

Aoc(s) Area(s) of cooperation (as per eAc treaty)

cet common external tariff

ctn common tariff nomenclature

dpp director, Strategic planning & policy research unit

eAc east African community

eAcJ east African court of Justice

eALA east African Legislative Assembly

eAMu east African Monetary union

edprS economic development & poverty reduction Strategy

eu european union

Fdi Foreign direct investment

Gdp Gross domestic product

iLo international Labour organisation

ioM international organisation for Migration

L&JA Legal & Judicial Affairs (SWG)

Lvbc Lake victoria basin commission

LvFo Lake victoria Fisheries organisation

M&e Monitoring and evaluation

MdA Ministry, department or Agency

MiGeproF Ministry of Gender and Family promotion (within pMo)

MinAFFet Ministry of Foreign Affairs and cooperation

MinAGri Ministry of Agriculture & Animal resources

MinALoc Ministry of Local Government, community development & Social Affairs

iv The National Policy & Strategy on EAC Integration, February 2012


MineAc Ministry of east African community

MinecoFin Ministry of Finance & economic planning

Mineduc Ministry of education

MinicoM Ministry of trade and industry

MiniJuSt Ministry of Justice

MininFrA Ministry of infrastructure

MiniSAnte Ministry of Health

MteF Medium-term expenditure Framework

ndtpF national development and trade policy Forum

PMO Prime Minister’s Offi ce

pSF private Sector Federation

rdb rwanda development board

rWF rwandese Franc

Sc Steering committee

SMe Small and Medium-sized enterprises

SWG Sector Working Group

tMeA trademark east Africa

vThe National Policy & Strategy on EAC Integration, February 2012


FOREWORD

the east African community is a regional economic and socio-political community grounded in a shared vision to establish a prosperous, competitive, secure and politically united east Africa. regional and international economic integration is one of the pillars for rwanda’s vision 2020 and it is imperative for the Government of rwanda to fully implement the national policy on eAc integration to achieve its goals.

the national policy on eAc integration was developed to make the management of the EAC integration process more effi cient and effective and to ensure that regional integration contributes to our goal of becoming a middle-income country by 2020.the policy also facilitates the essential mainstreaming of regional integration into national planning and priority setting in order to fully reap the benefi ts of regional integration in the years ahead.

rwanda’s effective participation in the eAc will provide numerous opportunities and benefi ts such as access to a larger market, lower costs of doing business, improvements in infrastructure, increased investment opportunities, enhanced access to education and health services, political stability, and peace and security. regional integration will transform rwanda from being a landlocked to a land linked country and provide connectedness on various levels, which will ultimately lead to better livelihood and greater opportunities for rwandan people.

the Government of rwanda is therefore fully committed to the success of the eAc and encourages all rwandans, including the private sector and civil society, to seize the opportunities arising from regional integration.

Hon. Monique MukarulizaMinister for Ministry of East African Community

vi The National Policy & Strategy on EAC Integration, February 2012


EXECUTIVE SUMMARY

ISSUEthe aim of the policy is to make the management of the east African Community (EAC) integration process more effective and effi cient and to ensure that the eAc integration contributes to rwanda’s aim of becoming a middle-income country by 2020. to this extent the policy seeks to establish a holistic framework for regional integration, putting the constituent elements of integration into a single framework, offering guidance on the goals to be reached, but also on the contribution expected from all stakeholders to achieve them. the policy also seeks to enable rwanda react adequately to eAc policy initiatives, decisions and other actions, as well as position rwanda to be pro-active on critical issues, including remedial and mitigating action in order to safeguard its interests.

BACKGROUNDrwanda’s vision 2020 lays out a roadmap for the country’s future development, founded on six pillars, the last of which is regional and international economic integration. the roadmap considers the sixth pillar a vital element of achieving vision 2020. While the customs union and the common Market are being implemented, negotiations are underway for the establishment of a Monetary Union, and the fi nal stage of the integration is envisaged to be a political Federation.

POLICY PROPOSALSthe policy proposes interventions across a number of strategic issues affecting eAc integration in rwanda. Some of the key interventions in these cross cutting strategic issues are outlined below and in greater detail within the policy.

a) Mainstreaming Regional Integration into Rwanda’s Development

The Policy recommends that MINEAC and the MDAs will cooperate to ensure that:

viiThe National Policy & Strategy on EAC Integration, February 2012


• regional integration in the context of the eAc is treated as a cross-cutting issue within the next edprS;

• Appropriate indicators for regional integration are formulated and included in the future edprS;

• Adequate budgetary resources are made available for regional integration related activities and

• Subject MdAs’ planning, budgets and operations to review and, where necessary, amendment in line with the requirement of mainstreaming regional integration across all Government services.

b) Engaging EAC Institutions

The Policy recommends the following in relation to the key regional institutions.• Strengthen the functions of the eAc Secretariat and over the

long term let it evolve into a commission with the administrative capacity necessary to implement the integration agenda.

• ensure that rwanda’s strategic interests are represented in eALA, through careful consideration of the relation between rwandan eALA Members, rwanda’s parliament, and the Government of rwanda;

• review barriers for rwandan residents (including private sector entities) accessing the east African court of Justice, including knowledge and fi nancial barriers, and

• Consider the adoption by the EAC of majority and qualifi ed voting in key areas of regional integration, especially in connection with the effective functioning of the common Market and Monetary union.

c) Mitigation & Safeguard Measures

In this context the Policy recommends that Rwanda will:• push for the creation of ‘Structural Funds’ for the purpose of

enhancing cohesion between the partner States and reduce development gaps between in key areas;

• research and impact assessments will be carried out to advise

viii The National Policy & Strategy on EAC Integration, February 2012


government on the relevance of mitigation and safeguard measures over time; and

• A public Forum will be arranged for private sector consultation to highlight and identify issues in need of safeguarding and mitigation measures.

d) Following up on EAC Decisions and Obligations Regionally

The Policy recommends that the Government will: • empower rwanda’s High commissions and embassies in partner

States to provide Government with key information regarding compliance with eAc commitments by partner States;

• develop a partners States compliance database in MineAc, which identifi es the key compliance issues for Rwanda in each partner State and monitors progress on compliance;

• establish a complaints hotline for rwandan citizens on eAc related issues under the aegis of MineAc; and

• raise awareness among the rwandese public of their rights and obligations pertaining to eAc membership, especially those related to the ‘four freedoms’.

e) Institutional Framework

the Framework is built around the Ministerial committee, MineAc and the Sector Working Groups (SWGs). the Ministerial committee is in charge of overall decision-making and providing policy guidance to the SWGs. the SWGs’ role is to ensure effective coordination of eAc-related activities by providing technical advice to the Ministerial committee in making decisions on the national position on eAc-related issues as well as facilitating the preparation, implementation and progress monitoring of EAC-specifi c projects and programmes.

To support this institutional framework the Government shall:• Support MineAc in the implementation of its mandate in terms of

its coordination and guidance role vis-à-vis other MdAs, for the purpose of focusing leadership in rwanda’s engagement with the eAc and ensuring that rwanda’s eAc commitments are complied with as planned;

ixThe National Policy & Strategy on EAC Integration, February 2012


• periodically review the current arrangements with a view to amending them in case of need, in consultation with relevant stakeholders; and

• take all steps necessary to ensure that the Ministerial committee exercises its functions in respect of overall regional integration and eAc decision-making and providing policy guidance to the SWGs.

The Ministerial Committee will:• continuously monitor the existing SWG structure, including the

mandate and scope of each, in terms of their composition and workloads, and will draw and act upon the lessons learned from on-going activities;

• report quarterly to cabinet on the progress of the implementation of the eAc integration agenda; and

• Make recommendations to the Offi ce of the Prime Minister on steps necessary for the effective implementation of the eAc integration agenda and this policy.

AREAS OF COOPERATIONthe policy further proposes priority interventions across 16 Areas of cooperation covered by the eAc treaty including recommendations under (i) trade Liberalisation & development (ii) investment & industry; (iii) Monetary & Financial Affairs; (iv) Standardisation, Quality Assurance, Metrology & testing; (v) infrastructure & Services; (vi) Human resources development, Science & technology; (vii) Free movement of persons, Labour, Services and the right of establishment & residence; (viii) Agriculture & Food Security ; (ix) environment & natural resource Management ; (x) tourism & Wildlife Management; (xi) Health, Social and cultural Affairs; (xii) Women; (xiii) political Matters ; (xiv) Legal & Judicial Affairs; (xv) private Sector & civil Society; and (xvi) relations with other regional/international organisations. these interventions are spelt out in detail in the national policy, Strategy and implementation plan.

STAKEHOLDER VIEWSin the course of the preparation of this policy, its main elements were

x The National Policy & Strategy on EAC Integration, February 2012


discussed at various levels of government as well as with the civil society and the private sector. The fi rst draft of the Policy was submitted for the consideration of a meeting of the permanent Secretaries on 23rd May 2011 resulting in an amended draft of the policy, which formed the basis for another round of stakeholder consultations. the policy was also presented to the rwanda chapter of eALA, and their comments were incorporated into the amended draft of the policy. A revised draft of the policy was discussed at the pS Forum on the 18th of november 2011 and a fi nal validation workshop on the Policy was held with the stakeholders including the pSF and the civil society organisations on the 1st december 2011. At all these meetings, inputs were received from stakeholders. these inputs have been incorporated into the national policy on eAc intergration.

1The National Policy & Strategy on EAC Integration, February 2012


1. NATIONAL POLICY ON EAC INTEGRATION

1.1. ISSUEthis policy aims to make the management of the east African Community (EAC) integration process more effective and effi cient and to ensure that the eAc integration contributes to rwanda’s aim of becoming a middle-income country by 20201. the following aspects are of importance in this context:

a) A Holistic Policy

the crosscutting nature of regional integration has demonstrated the importance of the adoption by Government of a holistic policy. A holistic policy for regional integration seeks to put all constituent elements of integration into a single framework, offering guidance on the goals to be reached, but also on the contribution expected from all stakeholders to achieve them.

b) Reaction and Pro-activeness

the need to react adequately to eAc policy initiatives, decisions and other actions, combined with the necessity to be pro-active in positioning rwanda on critical issues, including remedial and mitigating action in order to safeguard its interests. While numerous examples have demonstrated the positive effect of trade liberalisation and economic integration, this positive effect should not be taken for granted. in the case of landlinked countries such as rwanda, there is a need to take care that regional integration is undertaken in a way that optimises benefi ts.

1 the national policy, Strategy and implementation plan for eAc integration includes a number of annexes that provide context and detail to some of the issues discussed in the policy. these include annexes on the Legal framework and detailed analysis, eAc Legislative compliance Audit, an indicative review of rwandan Law and free movement of workers, the Policy Review matrix, MINEAC staffi ng and organigramme, International standard classifi cation of occupations and professional services, Rwanda and the East African Monetary union (eAMu), eAc organs, eAc integration activities: coordination process and diagram, M&e process, communication Strategy and other documents.

2 The National Policy & Strategy on EAC Integration, February 2012


c) Mainstreaming regional integration

the eAc agenda needs to be mainstreamed across and in line with the Government’s processes and structures. rwanda’s interests and the Government’s ability to pursue those interests require that the strategies, plans and budgets of all relevant ministries, departments and agencies (MdA) take fully into account the opportunities, risks, rights and obligations pertaining to rwanda’s membership of the eAc.

this national policy on eAc integration is supported by a Strategy and an implementation plan. they provide further evidence and methods as to the way forward for rwanda’s integration into the eAc.

1.2. CONTEXT1.2.1 Backgroundrwanda’s long-term development vision, as articulated in vision 2020, is to become a middle-income economy operating as a knowledge-based service hub by 2020. this lays out a roadmap for the country’s future development, founded on six pillars, the last of which is regional and international economic integration. it implies an open, liberal trade regime, minimising barriers to trade as well as implementing policies to encourage foreign direct investment, adopting policies to promote competitive enterprises, exports and entrepreneurship, economic zones for ict-based production in trade and commerce.

the eAc is the regional inter-governmental organisation of the republics of burundi, Kenya, rwanda, uganda and the united republic of tanzania, with its headquarters in Arusha, tanzania. the treaty establishing the east African community was signed on 30th november 1999 and entered into force on 7th July 2000. the republic of Rwanda applied for EAC membership in 1996 and offi cially became a member on 1st July 2007 together with the republic of burundi. These fi ve East African Partner States have a population of around 133 million and a Gdp of uSd 79 billion.

1.2.2 Status of EAC Integrationthe present policy is based on rwanda’s desire to realise ever-closer cooperation with the eAc partner States, in successive and overlapping ‘stages’, i.e. a customs union, a common Market, a



Monetary union and a political union. the Ministry of east African community (MineAc) has been established (as mandated by the eAc treaty) to: (a) coordinate implementation of rwanda’s eAc commitments and support the Government, the private sector and civil society organisations to advocate for and benefi t from EAC integration; (b) support the implementation of integration commitments by eAc entities and the partner States, in areas vital to the development of rwanda and the region; and (c) monitor the progress and impact of rwanda’s integration into the eAc.

rwanda joined the eAc customs union in 2008, implementing its instruments from 01 July 2009. on 20 november 2009, rwanda signed the protocol establishing the eAc common Market, which came into force on 01 July 2010. negotiations to arrive at a protocol for the establishment of the east African Monetary union (eAMu) commenced with a meeting of the High-Level task Force on 17 January 2011 and are on-going. preparations for the establishment of a political union are at a very early stage.

A description and further details of the history of the eAc and each stage of regional integration can be found in the Annex.

1.2.3 Relationship with Other Policiesthe eAc integration agenda cuts across 16 Aoc affecting a broad range of issues and sectors2. the national policy on eAc integration is meant to compliment the sectoral policies in these areas by identifying priorities related to eAc integration where possible. it also aims to give strategic direction to orient rwanda’s engagement in the eAc context in these different areas. The Policy Review Matrix identifi es key policy gaps in some of the Government of rwanda policies as well as proposed recommendations on how to address these gaps3.

2 The Treaty identifi es 17 AoCs in all. However, the last of these concerns ‘Cooperation in other Fields’ for which there are as yet no entries relevant for this policy.

3 To highlight the magnitude of the task at hand this provisional review has identifi ed 36 policy documents in the 16 Aocs.



1.3. VISION, OBJECTIVES AND POLICY1.3.1 Vision and Objectives of Policythe vision of the policy is for eAc integration to support rwanda in attaining the vision 2020 goal of becoming a middle-income country by the year 2020.

in accordance with the vision statement, the policy intends to pursue achievement of three specifi c policy objectives, namely to:

• enable rwanda to advance its agenda in the eAc integration process;

• Enable Rwanda to benefi t from the advantages of regional integration; and

• develop a strategic approach for effective implementation of eAc related reforms.

1.3.2 The Policythe policy is underpinned by strategic issues and areas of cooperation.

Strategic issues

From analysis of the current situation on eAc commitments and their implementation status, key interventions have been identifi ed as cross cutting strategic issues. these are summarised below and are provided in greater detail within the Strategy on eAc integration.

a) Mainstreaming Regional Integration into Rwanda’s Development

the policy recommends that MineAc and the MdAs will cooperate to ensure that:

• eAc regional integration is treated as a cross-cutting issue within the next edprS;

• Appropriate regional integration indicators are formulated and included in edprS ii;

• Adequate budgetary resources are made available for eAc related activities; and

Subject to MdAs’ planning, budgets and operations to review and, where necessary, amendment in line with the requirement of mainstreaming regional integration across all Government services.



b) Engaging EAC Institutions

The Policy recommends the following in relation to the key regional institutions:• Strengthen the functions of the eAc Secretariat and over the

long term let it evolve into a commission with the administrative capacity necessary to implement the integration agenda;

• ensure that rwanda’s strategic interests are represented in eALA, through careful consideration of the relation between rwandan eALA Members, rwanda’s parliament, and the Government of rwanda;

• review barriers for rwandan residents (including private sector entities) accessing the east African court of Justice, including knowledge and fi nancial barriers; and

• Consider the adoption by the EAC of majority and qualifi ed voting in key areas of regional integration, especially in connection with the effective functioning of the common Market and Monetary union.

c) Mitigation & Safeguard Measures

In this context the policy recommends that Rwanda will:• push for the creation of ‘Structural Funds’ for the purpose of

enhancing cohesion between the partner States and reduce development gaps between in key areas;

• research and impact assessments will be carried out to advise government on the relevance of mitigation and safeguard measures over time; and

• A public Forum will be arranged for private sector consultation to highlight and identify issues in need of safeguarding and mitigation measures.

d) Following up on EAC Decisions and Obligations Regionally

The policy recommends that the Government will: • empower rwanda’s High commissions and embassies in partner

States to provide the Government with key information about what is happening ‘on the ground’ in partner States in relation to compliance with eAc commitments;



• develop a partners States compliance database in MineAc, which identifi es the key compliance issues for Rwanda in each partner State and monitors progress on compliance;

• establish a complaints hotline for rwandan citizens on eAc related issues under the aegis of MineAc; and

• raise awareness among the rwandese public of their rights and obligations pertaining to eAc membership, especially those related to the ‘four freedoms’.

e) Institutional Framework

MineAcs coordinating role will be formalised through the institutional Framework for coordinating the implementation of eAc Activities at national Level. this is fully discussed in the Strategy document for eAc integration. in sum this framework has two levels of operation; namely nine sector working groups (SWG’s) and the Ministerial committee. the SWGs’ role is to ensure effective coordination of eAc-related activities, to report on the status of implementation of eAc decisions and prepare briefs, reports and country positions for the Ministerial committee. the Ministerial committee is responsible for overall decision-making and providing policy guidance to the SWGs. The Committee reports quarterly to the Prime Minister’s offi ce on the status of the eAc integration process.

To support this institutional framework the Government shall:• Support MineAc in the implementation of its mandate in terms of

its coordination and guidance role vis-à-vis other MdAs, for the purpose of focusing leadership in rwanda’s engagement with the eAc and ensuring that rwanda’s eAc commitments are complied with as planned;

• periodically review the current arrangements with a view to amending them in case of need, in consultation with relevant stakeholders; and

• take all steps necessary to ensure that the Ministerial committee exercises its functions in respect of overall regional integration and eAc decision-making and providing policy guidance to the SWGs.



Areas Of Cooperationthe policy is underpinned by a Strategy which proposes interventions across a number of strategic issues affecting eAc integration in rwanda. it proposes priority interventions across 16 Aoc covered by the eAc treaty. these interventions are spelt out in detail in the national Strategy and its implementation plan on eAc integration. the goals for each of these areas are as follows:

• Trade Liberalisation & DevelopmentsSector Goal: to seek the most open internal market arrangements benefi cial to Rwanda. For regional integration this implies aiming for the most liberal form of regional integration and at the same time ensuring that other partner States meet their obligations.

• Investment & IndustrySector Goal: competitive industrial and services sector with increasing levels of exports while enhancing the number of off-farm jobs. this entails increasing access to investment resources.

• Monetary & Financial AffairsSector Goal: create an enabling environment for the development of Rwanda as a fi nancial sector hub and ensure macroeconomic stability within the harmonised eAc regulations and convergence criteria.

• Standardization, Quality Assurance, Metrology & TestingSector Goal: regionally shared high quality standards for products and services, effectively enforced, in the interest of consumer protection.

• Infrastructure & ServicesSector Goal: develop transport (roads, railways, air, maritime), energy, ict and services infrastructure with a view to reducing private and public sector operational costs and increasing competitiveness.

• Human Resources Development, Science & TechnologySector Goal: enhancing the skills and capabilities mix in key area to support rwanda’s achievement of vision 2020; shared educational institutions, standards and qualifi cations; shared intellectual property protection.



• Free Movement of Persons, Labour, Services, Right of Establishment & Residence

Sector Goal: ensuring the freedom of movement, right of establishment and residence of Rwandans in the EAC, as well as the infl ow of capital and skills.

• Agriculture & Food SecuritySector Goal: rwanda will focus on value addition for agricultural products in order to enhance its regional competitiveness and positioning; reduce dependence on imported fertilisers by increasing the use of compost in line with the climate change policy; and promote regional landscape restoration and management for sustainable agricultural production.

• Environment & Natural Resources ManagementSector Goal: enhancing effective utilization of natural resources and their sustainable management; regional cooperation on shared resources (Lake victoria basin commission (Lvbc) and Lake victoria Fisheries organisation (LvFo).

• Tourism & Wildlife ManagementSector Goal: Stimulating common marketing of tourism and wildlife management (including forest management in the interest of tourism) and establishing the region as a single tourist destination.

• Health, Social & Cultural AffairsSector Goal: enhancing cooperation in the health sector to ensure increased levels of health and better access to health services for rwandans in the region (including cooperation on tb/Hiv/malaria control); stimulating regional cooperation in social welfare, employment and working conditions, vocational training, youth, sports and culture.

• Role of Women in Socio-Economic DevelopmentSector Goal: enhancing women’s access to economic opportunities, including ensuring level playing fi elds in all socio-economic sectors.

• Political MattersSector Goal: cooperating for the establishment of a common foreign and security policies, ensuring regional peace, security and good governance.



• Legal and Judicial AffairsSector Goal: Ensuring a legal framework and environment to fulfi l Rwanda’s EAC Commitments and ensure Rwanda benefi ts from EAC integration.

• Relations with Other Regional & International Organisations and Development Partners

Sector Goal: improving rwanda’s leverage in regional and international organisations.

• Private Sector & Civil SocietySector Goal: enhancement of the private sector’s role in socio-economic development of rwanda and the region; safeguarding citizen’s rights and interests through civil society participation in regional integration.

1.4. Stakeholder Viewsin the course of the preparation of this policy, its main elements were discussed at various levels of government as well as with the civil society and the private sector.

An extensive inception report, focusing on the most important legal and strategic issues, was prepared for discussion with the Steering committee established for the purpose of the policy’s development. A revised version of the inception report, including a legal consultation document, an updated version of the eAc Legal compliance Audit and a policy review Matrix were tabled at an internal consultation of MineAc management and staff, as well as at a workshop for SWG members. the outcome of both events was further elaborated in meetings with the nine individual SWGs.

The Policy refl ects the comments made by stakeholders, as well as a number of very specifi c issues and corrections raised by the Steering committee and the above-mentioned workshop, which concerned a wide array of economic, legal and institutional issues.

The fi rst draft of the Policy was submitted for the consideration of a meeting of the permanent Secretaries on 23rd May 2011 that resulted in an amended draft of the policy, which formed the basis for another



round of stakeholder consultations. the policy was also presented to the rwanda chapter of eALA, and their comments were incorporated into the amended draft of the policy. A revised draft of the policy was discussed at the pS Forum on the 18th of November 2011 and a fi nal validation workshop on the policy was held with the stakeholders on the 1st december 2011. At all these meetings, inputs were received from stakeholders. these inputs have been incorporated into the national policy on eAc integration.

1.5. Financial ImplicationsSome actions are already budgeted for by MdAs, and some policy measures do not require budgets. However, under the SWGs the fi nancial implication of these activities will be reviewed.

1.6. Legal Implicationsthere are multiple crosscutting legal implications of rwanda’s eAc membership. the key overarching legal implications can be summarised as follows:

• potential amendment of rwandan constitution to ensure supremacy of eAc law;

• Alignment of potentially several hundred of rwanda’s laws to comply with eAc commitments; and

• need for ‘pro-active’ law reform to ensure rwanda is well positioned to take advantage of regional integration such as transport and energy laws.

rwanda’s current ‘hybrid’ system is fully compatible with eAc membership. As well as crosscutting legal implications, there are some more specifi c judicial and legal issues that will need to be addressed. in summary these are:

• cross-border recognition of the legal system – to enable lawyers qualifi ed in other Partner States to practice in Rwanda, and Rwanda qualifi ed lawyer to practice in other Partner States;

• provision for the cross-border enforcement of contracts including of court judgements;

• ensuring that the eAc’s work on the approximation of commercial



laws does not result in rwanda’s best practice commercial laws being adversely amended, adversely impacting on rwanda’s cost of doing business; and

• integrating eAc considerations within rwanda’s judicial system – ensuring that the courts and legal practitioners are fully informed of the impact of the eAc treaty.

1.7. Impact on Businessrwanda’s rationale for regional integration is primarily economic, social, and political. A signifi cant benefi ciary of the implementation of the policy will be the rwandan private sector as well as consumers. the policy looks at creating opportunities for rwanda businesses both within rwanda and regionally. it also looks at enabling rwandan businesses to become more competitive participants in the regional and international market.

the policy therefore aims to create an environment for the rwanda private sector to enjoy the full benefi ts of regional integration. The policy further sets out mitigating measures to reduce some of the potential negative impacts of regional integration on the rwanda private sector. to support this aim the views of the private sector and civil society have been, and will continue to be, incorporated into the integration process.

1.8. Impact on Equality, Unity and Reconciliationit is clear that economic development lays a foundation for improving unity and reconciliation. the policy will therefore directly impact unity and reconciliation in rwanda as well as the eAc and the wider geographical region. Achieving equitable economic growth will create an environment for further unity and reconciliation in rwanda. the policy promotes this by setting out the key recommendations and actions that will enable rwanda to derive the maximum advantage from regional integration. the policy also promotes the improved engagement of rwandan citizens and civil society in regional integration issues.



1.9. Handling PlanFollowing adoption by cabinet, the policy will be disseminated to key stakeholders through some of the following methods:

• organisation of a national workshop where the policy will be formally presented to stakeholders;

• Sensitisation workshops for stakeholders in the policy, the SWGs in particular, after approval;

• publication of the policy on the MineAc website;• dissemination of salient aspects of the policy during seminars

and workshops held with different stakeholders; and• Dissemination of the Policy to Districts and Province offi ces.



2. NATIONAL STRATEGY ON EAC INTEGRATION

2.1. ISSUEthe national policy on eAc integration aims to make the management of the east African community (eAc) integration process more effective and effi cient and to ensure that the EAC integration contributes to rwanda’s aim of becoming a middle-income country by 20204. the following aspects are of importance in this context: A Holistic policy; reaction and pro-activeness; and Mainstreaming regional integration.

this national Strategy on eAc integration provides an overview of the analysis of the current situation in rwanda. From this it provides recommendations for the Government and other stakeholders in terms of guidance and a road map on how rwanda should move forward in the regional integration process.

the national implementation plan for eAc integration provides the detailed activities and targets related to the policy and Strategy.

2.2. ANALYSISThe background research into these fi ndings and additional analysis are contained in the national policy on eAc integration – Annexes document.

2.3. STRATEGIC ISSUESit is important to note that the rationale for rwanda’s participation in the eAc, as well as any other regional grouping, is economic, social and political. this Strategy reemphasizes this rationale and establishes that all of rwanda’s regional integration agenda and activities must be monitored by how they contribute towards the key economic priorities,

4 the national policy, Strategy and implementation plan for eAc integration includes a number of annexes that provide context and detail to some of the issues discussed in the policy. these include annexes on the Legal framework and detailed analysis, eAc Legislative compliance Audit, an indicative review of rwandan Law and free movement of workers, the Policy Review matrix, MINEAC staffi ng and organigramme, International standard classifi cation of occupations and professional services, Rwanda and the East African Monetary union (eAMu), eAc organs, eAc integration activities: coordination process and diagram, M&e process, communication Strategy and other documents.



social welfare and political stability. the next sections identify the key strategic issues rwanda needs to address in this context.

2.3.1 Mainstreaming Regional Integration into Rwanda’s Development

the eAc has a broad regional integration agenda, encompassing economic, social and governance issues. the broad and crosscutting nature of these areas of eAc interest requires a coordination framework for implementing, monitoring and evaluation (M&e) holistic enough to address them effectively. So far, however, the implementation of rwanda’s eAc commitments and the integration of eAc priorities into rwanda’s development agenda have been ad hoc in nature. For regional integration to be an effective tool for rwanda’s development, it must be mainstreamed into the medium-term framework for rwanda’s planning and development, i.e. the economic development and poverty reduction Strategy (edprS) and the Medium-term expenditure Framework (MteF).

While the current edprS (2008-12) is coming to an end, the revision and preparation of the next edprS (2013-17) must take into account the nature of regional integration as a key tool for rwanda’s development. Mainstreaming eAc regional integration into the edprS provides rwandan policy makers with a planning tool for relating regional integration to the core goal of rwanda’s development by identifying activities, benchmarks, resources and performance indicators that ensure regional integration will be channelled towards the both medium and long-term objective of becoming a middle income country.

Mainstreaming regional integration into the edprS and the MteF will provide the Government with an effective tool for coordination, as well as M&e of the rwanda and eAc regional integration agenda. the present Strategy includes recommendations to achieve mainstreaming [ref: Section 3.2.1].

2.3.2 Engaging EAC Institutionsthe eAc institutions are the tools for rwanda’s engagement with the eAc. the institutions have different mandates, powers, procedures



and dynamics. For example, while the council is the policy organ of the community, where decisions are made by consensus of all partner States, the east African Legislative Assembly (eALA) also has an eAc treaty-mandated role to make laws that are binding on the whole of the community. it is important that rwanda’s engagement with these organs is coordinated as well as possible to ensure coherence and consistency in the way rwanda advances its interests in the community. A description of the key organs is set out below:

• The Summit comprises of the eAc Heads of State and gives general direction towards the realisation of the goal and objectives of the community. it reviews the state of peace, security and good governance within the community.

• The Council’s functions include policy-making, initiating and submitting bills to the Assembly, and giving direction to partner States to promote attainment of the community’s objectives. in order to do this, it considers the budget, makes regulations, issues directives, takes decisions, makes recommendations and gives opinions in accordance with the provisions of the eAc treaty5. the council has dedicated Sectoral councils for a number of areas.

• The Secretariat is the ‘guardian’ of the treaty, in that it ensures the regulations and directives adopted by the council are properly implemented. it is responsible for initiating, receiving and submitting recommendations to the council and forwarding of bills to the Assembly through the co-ordination committee.

• Like most legislatures eALA has as its core functions legislating, oversight and representation. Laws passed by eALA are directly applicable in partner States, over-riding national laws. While the Treaty specifi es the functions of the Assembly, it is silent on the roles and responsibilities of the members of eALA. the treaty does not specify to what extent members may represent the interests of their respective countries and to what extent their duty lies with the eAc as a whole.

5 Hereafter referred to as the treaty.



• The East African Court of Justice (EACJ) is responsible for ensuring compliance with the treaty (Articles 27 and 28). Matters concerning the interpretation of the treaty can also be referred to the court. the court is important to rwanda, because rwanda may refer to it another Partner State which has ’failed to fulfi l an obligation under this treaty or has infringed a provision of [the] treaty’ (Article 28)6. under Article 30, it is not only partner States, but also ‘any person who is resident in a partner State’ that has the right to refer cases to the eAcJ.7 currently the eAcJ has extremely low capacity and for that reason is not fully operational.

the Annex on organs of the eAc provides further descriptions of these institutions. Section 3.2.2 contains recommendations for effective engagement with eAc institutions.

2.3.3 Mitigation & Safeguard Measuresthe overall aim of the eAc includes the creation of a single market, and ultimately political federation. However positive this aim, there are potential ‘downsides’ or risks associated with regional integration for rwanda, with regard to which rwanda may want to take mitigating action to safeguard her interests. Such a mitigating action includes the temporary use of ‘safeguards’ to protect against unfair foreign competition. A number of these safeguards have been negotiated into the eAc instruments. the eAc instruments for example allow temporarily restricting the importation of products causing, or threatening to cause, serious injury to a domestic industry that produces similar or directly competitive products.

It is important for Rwanda to defi ne the terms, as well as the structures, which will enable it to take advantage of these safeguard opportunities provided, if and when necessary.

• Fair competition• the eAc common Market has potential for enhanced competition

6 this may be of particular relevance in relation to the fraught issue of ntbs, which prevent the free movement of goods to and from rwanda.

7 the eAc Secretary General may also bring cases.



within Rwanda, in that the ‘right of establishment’ enables fi rms from other partner States to open up businesses in rwanda. increased competition will drive up standards, enhance competitiveness and create new opportunities for rwandan businesses and consumers. However, it is important that fi rms operate on the basis of a ‘level playing fi eld’ enabling fair competition, and that anti-competitive practices, including abuse of dominant position (for example by predatory pricing and dumping) can be detected, counteracted and prevented.

• rwanda has taken the initiative to address these issues, through its competition and consumer protection Act. this law, which will replace the current internal trade Act 2001, there exists – within the Ministry of trade and industry (MinicoM) – a competition Authority, responsible for administering the new competition regime within Rwanda. It is important that Rwandan fi rms operating in other eAc partner States do so within an environment of fair competition. the eAc competition Act (2006) and the competition regulations (2010) deal with competition at the regional level. the Act applies to ‘all economic activities and sectors having cross-border effect’ and sets up an eAc competition Authority.

• Although regional and national legislative frameworks for fair competition are in place, a number of key issues remain to be addressed if those frameworks are to provide an effective and enforceable mechanism for fair competition. these issues include developing regulations under the rwandan competition and consumer protection Act; setting up and properly resourcing the new rwanda competition Authority; and ensuring that rwandans have full access to competition and consumer protection enforcement mechanisms at national and regional level.

Section 3.2.3 makes suggestions with regard to these and other mitigation and safeguard measures.

2.3.4 Following up on EAC Decisions and Obligations Regionally

eAc rights and obligations are meaningful only to the extent that rwanda and other partner States respect such obligations. While rwanda can make every effort to meets its obligations, it cannot ensure



that other partner States live up to their commitments. this challenge is exemplifi ed by the continuing diffi culties faced in eliminating NTBs regionally, in spite of the numerous decisions and commitments made to this effect.

A key aspect of compliance by other partner States is the alignment of their laws with eAc obligations. rwanda will only reap some of the intended benefi ts of EAC membership if Partner States amend their national laws to comply with eAc commitments. the common Market protocol has given rwandans the freedom to reside, establish a business, work, and trade across the region. the possibility for skilled and semi-skilled labour to fi nd employment in other countries has in principle given rwandans access to a larger labour market and potentially higher income. in light of the wide implications there is a need for effective follow up on the implementation of eAc commitments.

• Monitoring complianceTo ensure that Rwanda reaps these benefi ts, it is vital that it has up-to-date information on the status of other eAc partner States’ compliance with their eAc commitments. there is not yet a central database at the eAc Secretariat suitable for monitoring compliance across the eAc. but the process of setting it up has started and will be completed in 2012. the systems in the partner States will mirror and be integrated into the central database system. in the shorter term, there remains the need for rwanda to put in place its own system for monitoring partner State compliance. rwanda’s High commissions and embassies in partner States have the potential to provide the Government with key information about what is happening ‘on the ground’ in partner States in relation to compliance with eAc commitments, including the passage of key legislation.

Monitoring compliance by Partner States would benefi t from information provided by rwandan citizens from the private sector and civil society to any obstacles encountered whilst doing business or otherwise interacting with institutions and citizens of the partner States. A dedicated complaints ‘hotline’, if given suffi cient publicity, would assist gathering this kind of information.



• Ensuring compliance rwanda’s interest in ensuring compliance by partner States will require making full use of available political tools, including lobbying and diplomatic démarches.As discussed in Section 2.1.2, partner States and residents of partner States have legal tools for enforcing treaty obligations through application to the eAcJ. but critical challenges remain, including the: court’s current low capacity, limited operationalisation and inadequate resources; court’s lack of ‘teeth’ because of limited enforcement mechanisms, due in part to national State immunity laws and the culture of state impunity existing in partner States; and limited access to the court by rwandan residents due to its location and cost, i.e. it sits in Arusha and the general expense of taking cases to the court.

Section 3.2.4 includes recommendations with regard to following up on EAC decisions and obligations regionally.

2.3.5 Monitoring and Evaluation at National LevelAn essential element of effective management of eAc related regional integration, in addition to coordination, consists of monitoring and evaluating the activities of the various stakeholders, as well as reporting on implementation status. M&e is a responsibility shared between MineAc and all relevant MdAs. MineAc has a leading role where the design and operational parameters of the M&e system are concerned. this includes the methodology and reporting systems to be employed to maximum benefi t of the Government and citizens of rwanda. by dint of its current mandate, MineAc must be considered essentially an M&e institution.

the M&e process allows the Government to track progress in fulfi lling its EAC integration mission. M&E fi ndings, in turn, provide feedback for improving decision-making and negotiations with other eAc countries. eAc-related M&e needs to take into account the eAc development Strategy, which inter alia focuses on assessing progress within the Areas of Cooperation (AoCs) specifi ed in The Treaty, as well as crosscutting legal and administrative issues8.the eAc Secretariat

8 eAc development Strategy, 2006-2010, eAc Secretariat, Arusha, March 2011.



has provided the partner States with M&e frameworks so that all countries have common areas of monitoring with identifi ed outcomes. An example is the draft Framework for Monitoring the common Market protocol (May 2011). the Sector Working Groups (SWGs) established in rwanda are the logical vehicles for monitoring progress on regional integration, establishing the quality of results and assessing likely impact.

Section 3.2.5 sets out recommendations related to an effective M&E system.

2.3.6 Communication and SensitisationAn important tool for the coordination of the eAc integration agenda is effective communication. MineAc must be able to communicate key eAc decisions and obligations to stakeholders in order to promote full participation in eAc activities. Additionally, MineAc must be able to sensitise rwandan citizens about the rights and obligations of eAc membership, and highlight the many benefi ts of EAC in various EAC organs.

Current StatusMineAc has demonstrated full appreciation of the critical importance of effective communication and sensitisation for successful eAc integration by investing considerable time and resources in this agenda since 2010. Working in conjunction with stakeholders, (including MdAs, members of the High Level taskforce that negotiated the common Market treaty and university students selected and trained for this purpose), communication teams have run numerous communication sessions and reached most corners of rwanda. the favoured sensitisation medium is the direct interaction with members of learning institutions, youth forums, women’s groups, private sector associations, members of security services, students and teachers’ groups and local and central Government structures. in addition, the use of media has been key with the use of radio talk shows, billboards, pamphlets and newspapers.

the engagement sessions have covered the history of the eAc, the relevance and importance of eAc integration for the achievement of vision 2020, the structure of the eAc, and progress on rwanda’s



integration into the community. the eA customs union and common Market have so far occupied the limelight, with the Monetary and political unions being discussed in more general terms. the communication efforts have targeted opinion leaders able to reach out and spread the message to the wider rwandan community.

MineAc has prepared a detailed communication strategy, (a summary of the communications strategy is included as an annex).eAc related communication is likely to change as eAc integration deepens and the related interventions become more complex. it will therefore be necessary to review and update the communication strategy from time to time.

the present Strategy includes recommendations in respect of communication and sensitisation [Section 3.2.6].

2.4. AREAS OF COOPERATIONThe AoCs defi ned in The Treaty can be grouped into three clusters: economic; Social and Governance clusters, plus one cross cutting Aoc.9

the Economic Cluster constitutes the core area for regional integration in the context of the EAC with a specifi c focus on the common Market. this cluster contains ten Aocs: i) trade Liberalisation & development; ii) investment & industry; iii) Monetary & Financial Affairs; iv) Standardization, Quality Assurance, Metrology & testing; v) infrastructure & Services, vi) Human resources development, Science & technology; vii) Free Movement of persons, Labour, Services, right of establishment & residence; viii) Agriculture & Food Security; ix) environment & natural resources Management; and x) tourism & Wildlife Management.

the Social Cluster consists of two Aocs, both of which are essential for ensuring that rwanda’s membership in the eAc provides citizens with appropriate and gradually increasing levels of welfare. the Aocs are xi) Health, Social & cultural Affairs; and xii) the role of Women in Socio-economic development.

9 These three clusters are the same as those defi ned for the EDPRS.



the Governance Cluster deals with enhancing the impact of rwanda’s membership of the eAc through political, legal and international cooperation interventions. the Aocs are xiii) political Matters; xiv) Legal & Judicial Affairs; and xv) relations with other regional & international organisations and development partners.

The fi nal Cross Cutting Aocs concerns xvi) private Sector and civil Society. this consists of overarching measures to make it possible for both the private sector and civil society to engage with and take advantage of regional integration.

Section 3.3 presents recommendations with regard to the areas of cooperation.

2.5. IMPACT OF EAC MEMBERSHIP ON RWANDA’S LEGAL FRAMEWORK

this section discusses the impact of eAc membership on rwanda’s overall legal framework. A more detailed discussion of this complex subject appears in the Legal Framework Annex. recommendations emanating from the analysis in this section are in Section 3.4.

2.5.1 Supremacy of EAC lawthe treaty provides for the supremacy of eAc law commitments over national law. it states that eAc laws take precedence over similar national ones on matters pertaining to the implementation of the eAc treaty (Article 8) and further that decisions of the eAcJ must be adopted and applied by partner States (Article 38). in order to give full effect to these provisions, rwanda arguably needs to make a constitutional amendment.

2.5.2 Rwanda’s Legal Framework rwanda has a dual legal system, embracing aspects of both civil and common law, but is gradually moving towards a more common law-based system. in practice this means that new pieces of legislation (for example recent changes in rwanda’s commercial laws) tend to be drawn up more on the basis of principles adopted by common law countries rather than those applying under civil law jurisdictions. Where commercial laws concerned, this shift is related to rwanda’s



drive to encourage local and foreign investment. countries at the top of the World bank’s doing business index, and to whom rwanda has looked for inspiration when reforming its commercial laws, tend to operate a common law system.

Membership of the eAc does not necessitate rwanda’s move towards a common law-based system, neither as a matter of legal obligation nor as a matter of practicality. neither the treaty, nor any of the protocols or agreements under it, requires rwanda to change her legal system. the european union (eu) demonstrates that a single market and economic cooperation can function with different members operating different legal systems.

2.5.3 Alignment of Rwanda’s Laws with EAC Commitments

rwanda joined the eAc on 1 July 2007, later than the initial three partner states. upon membership, rwanda undertook to comply with the existing eAc commitments made by the other three countries. Many of these commitments require changes to rwanda’s laws. Subsequent commitments, to which rwanda was a party, require further changes to rwanda’s laws.

the eAc Legislative compliance Audit commissioned by MineAc for the national policy on eAc integration, scopes out the extent of rwanda’s commitments and their legislative implications. the audit shows that the alignment of rwanda’s national laws with eAc commitments will involve the review and possibly the amendment of over two hundred pieces of legislation across rwanda’s legislative framework. this will embrace legislation related to each of the Aocs outlined in Section 2.2.

A more detailed indicative review was also undertaken: indicative review: rwandan Laws and Free Movement of Workers (see Annex). this provides information on the potential amendments to rwanda’s laws in the light of a single eAc obligation, i.e. to provide for the free movement of labour. in addition, new laws may be required (where these do not exist) but are needed to comply with eAc commitments. rwanda also needs to ensure that no new laws or regulations are put



in place in breach of eAc commitments. this requires each new piece of legislation to be vetted for eAc compliance.

the law reform process needs to take on board the impact of laws made by eALA. eALA laws are directly applicable in rwanda (once published in the Offi cial Gazette) but it is good practice and makes for a transparent legislative framework for rwanda to amend its domestic laws so that they do not confl ict with Community law.

the alignment of rwanda’s laws with eAc commitments will be a considerable undertaking. careful prioritisation is vital to make sure that the most important laws are reformed fi rst. The alignment task will impact virtually all MdAs’ work plans and programmes, MiniJuSt’s Legislative drafting department, the role of the newly formed rwanda Law reform commission, and parliament’s workload and legislative programme.

2.5.4 Harmonisation and Approximation of Commercial Laws

it is important to distinguish between, on the one hand, the alignment of rwanda’s national laws with eAc commitments discussed in Sub-section 2.3.3– a process that rwanda needs to take forward at national level –and, on the other hand, the harmonisation of national laws discussed in Section 2.1.4. efforts towards harmonisation are being taken forward at eAc level under Article 126 (2)(b) of the treaty, which commits partner states to take all necessary steps to ...harmonise all their national laws appertaining to the community. Harmonisation is thus seen in the treaty in terms of harmonisation between partner States, and so goes beyond the alignment of national laws with eAc commitments. this cross-national harmonisation process is being undertaken centrally under the auspices of the eAc Legal & Judicial Sectoral council, with the aim of all partner States having the same laws, or at least laws based on the same principles. early on, the process was re-conceived as ‘approximation’ rather than ‘harmonisation.’ instead of aiming for identical laws across the eAc, the goal now is to develop laws based on the same principles. Fourteen (14) commercial laws have been prioritised for approximation by the eAc task Force on the Approximation of commercial Laws. the



task Force is currently at the stage of agreeing the legal principles on which approximation will take place. it takes about one year to reach agreement on the principles in the case ofa single law.

the eAc harmonisation/approximation process is neither designed, nor as a matter of practicality able, to bring rwanda’s national laws into line with the hundreds of commitments that rwanda has entered into through the treaty and relevant protocols, decisions and directives. rwanda (as indeed the other partner States) therefore needs to take the process of alignment in hand separately, at the national level.

2.5.5 ‘Pro-active’ Legislative Reform As well as reforming laws in order to comply with eAc commitments, there may be laws that rwanda wishes to reform on a pro-active basis, so as to enable the country to benefi t more or sooner from EAC membership. potential areas of reform could include: Laws related to infrastructure development, including public-private partnerships (in the context of rwanda’s potential to become a regional transport/distribution hub);Laws in relation to energy, especially those needed for the proposed eastern Africa power pool (with a view towards Rwanda’s energy needs); and Laws on trade fi nance for export promotion, and to promote technical and vocational education and training (in relation to improving the private sector’s ability to trade).

2.5.6 Business Climate Reformrwanda currently leads the way in investment climate reform in east Africa. As a result of best practice reforms, rwanda is now – according to the World bank’s doing business index for 2012 – the third easiest country in which to do business in Sub-Saharan Africa (behind Mauritius and South Africa); ranks a remarkable 45 out of 183 economies in the world for ease of doing business10.

rwanda’s recently reformed and best practice commercial laws (including the companies Act, insolvency Act and personal property Securities Act) are a key reason for rwanda’s strong doing business

10 rwanda’s performance in this area is way ahead of the eAc partners States. the next best performing partner State is Kenya, which ranks 109. See doing business 2012, the World bank.



index ranking. other eAc partner States have not yet undertaken best practice reforms. the risk therefore exists that the approximation process will result in rwanda loosing this competitive advantage and regressing in terms of ease of doing business. this danger is compounded because of a distinct lack of private sector engagement in the commercial law approximation process.

Moreover, there is the question of the prioritisation of the commercial laws currently being approximated by the eAc task Force on Approximation of commercial Laws [Section 2.3.4]. there are likely to be other commercial and investment climate laws, which rwanda’s interests strongly suggest should be harmonised as a matter of urgency. For example, a key advantage to rwanda of eAc membership is to take forward the ‘deep integration’ agenda typically benefi cial for a country with a small domestic market. this involves reducing transaction costs through harmonised procedures on standards and certifi cation. The prioritisation of commercial laws currently being approximated has been done without consulting rwanda’s private sector and is not based on an integration strategy designed to benefi t rwanda.

2.6. INSTITUTIONAL FRAMEWORKTo maximise benefi ts from regional integration an institutional framework for national policy coordination is required. this will also assist MineAc in delivering its mandate. the current situation highlights the need for improved coordination throughout the rwanda government, national stakeholders as well as for regional activities. effective coordination will assist the Government in achieving the eAc integration objectives for the country and is crucial to the success of the integration agenda. the planned institutional framework for coordination and recommendations resulting from the analysis in this section are in Section 3.5.

2.6.1 MINEAC’s Mandate and Positioningthe raison d’être for the establishment of MineAc derives from the treaty explicitly requiring that partner States establish a ‘coordinating and interface’ structure at national level, through the establishment



of a ministry tasked with east African community affairs. the sole core function for which MINEAC has a ‘leading-brief’ is identifi ed in its Ministerial Strategic plan as: advocacy, mobilisation sensitisation and dissemination of eAc laws, policies, strategies and programmes to national stakeholders.

MineAc contributes to the management of rwanda’s engagement in the eAc through a complex process that includes distilling rwanda’s integration objectives, identifying the necessary steps on the part of Government and non-government actors and monitoring their implementation. MineAc does not have enforcement powers and has to rely on each MdA’s pro-activeness with regard to the activities necessary for the achievement of the country’s integration objectives.

eAc integration is a national objective, not that of MineAc alone. Accountability for the achievement of the integration objectives is a joint effort of the MdAs with MineAc in a coordination role. this puts a premium on effective cooperation, which requires continuous monitoring by the Government.

2.6.2 EAC Integration Coordination Frameworkthe need for collaboration across government - to implement eAc protocols, decisions and related policies and programmes- has led to the development of more formal coordination arrangements. the analysis found that an effective framework’s purpose is to facilitate:

• coordination of activities among rwandan institutions, eAc organs, institutions of partner States and regional bodies to strengthen regional cooperation initiatives and partnerships;

• encouragement of broad-based involvement of all stakeholders in the eAc integration process, leading to the active participation and generation of optimum benefi ts that contribute to national development;

• Identifi cation, coordination and application of safeguard measures in the event of (a threat of) serious injury to the economy of rwanda, resulting from any provision of the eAc treaty and relevant protocols;



• Monitoring and providing oversight on the implementation of eAc programmes and projects within rwanda; and

• Identifi cation and prioritization of regional integration initiatives and actions and assistance in preparation and implementation of these initiatives and actions.

2.6.3 Challenges in the EAC Integration process• there is no developed system that is shared with MdA’s to

effectively monitor and evaluate the progress of implementation of the council decisions.

• Low public awareness of integration process.• Lack of capacity to compete in the regional market in order to

boost gains and minimize losses as regional integration in its nature creates winners and losers.

• Lack of commitment among implementing agencies of the eAc integration agenda on both national and regional level.



3. PREFERRED OPTIONS / RECOMMENDATIONS

3.1. SELECTION CRITERIA FOR PRIORITY SETTINGthis chapter sets out rwanda’s preferred strategic options and recommendations with regard to membership of the eAc. economic, Social and political considerations have guided the process of prioritisation of eAc related strategies and actions for each of the AoC specifi ed in The EAC Treaty and presented below, with particular emphasis given to the ‘four freedoms’.

the strategic options and key actions are based on the three priorities for regional integration identifi ed in Vision 2020: market access, investment promotion and infrastructure development. With regard to the latter, both the national policy and Strategy presume a particular strategic interest in the transport and energy sectors. A fourth strategic priority concerns improved security and governance in neighbouring countries.

before turning to the recommendations for each Aoc in Section 3.3 below, the next section presents recommendations for the ‘cross-cutting’ issues discussed in Sections 2.1.1-2.1.6.

Sections 3.4 and 3.5 set out recommendations with regard to, respectively, the legal framework analysed in Section 2.3 and the institutional framework reviewed in Section 2.4.

3.2. CROSS-CUTTING ISSUES

3.2.1 Mainstreaming Regional Integration MineAc and the MdAs will cooperate to ensure that:

• regional integration in the context of the eAc is treated as a cross-cutting issue (as opposed to a separate pillar) within the edprS in the future;

• Appropriate indicators for regional integration are formulated and included in the future edprS;

• the key actions from this Strategy will be incorporated into the current MteF; and

• Adequate budgetary resources are made available for regional integration related activities in the context of the eAc.



in support of the above four actions, the Government will – under the aegis of MineAc:

• Subject MdAs’ planning, budgets and operations to review and, where necessary, amendment in line with the requirement of mainstreaming regional integration across all Government services and administrations. the point of departure for the review will be the policy review Matrix compiled in the course of preparing the national policy, Strategy and implementation plan for eAc integration.

3.2.2 Engaging EAC Institutionsthe eAc institutions with which rwanda has to engage include the eAc Secretariat, the Summit, the council, the eALA and the eAcJ. rwanda will be involved in any effort to optimise the eAc’s institutional structure.

Secretariat - it is important for rwanda to position itself so as to effectively infl uence and engage the Secretariat on issues relating to rwanda’s interests. For that reason, rwanda will seek to:

• Strengthen the functions of the eAc Secretariat. over the long term support its evolution into a commission with the administrative capacity necessary to implement the integration agenda; and

• Seek a role for the eAc Secretariat – and eventually the commission – in securing, planning and managing the implementation of Structural Funds interventions in support of regional convergence and cohesion.

eALA - the Government will ensure that systems are in place to ensure that rwandan Members of eALA are fully briefed and enabled to advocate on issues before eALA. in this connection the Government will:

• engage with rwanda’s eALA members on the priorities for Rwanda identifi ed in the National Policy and Strategy for EAC integration;

• Hold regular progress meeting on the implementation of the national policy and Strategy with rwandan eALA Members; and



• ensure that rwanda’s strategic interests are represented in eALA, through careful consideration of the relation between rwandan eALA Members, rwanda’s national parliament, and the Government of rwanda.

eAcJ - the Government considers the eAcJ an entity that may have very signifi cant impact on Rwanda’s sovereignty in that it has the potential to interpret and enforce the eAc treaty in ways that can impact rwanda. the eAcJ also has the potential to provide the Government and citizens of rwanda with a powerful tool to ensure that other partner States comply with their treaty obligations to rwanda and rwandans. the Government will:

• press, through the eAc Legal & Judicial Affairs Sectoral council, for the strengthening and proper resourcing of the eAcJ, including the development of sub-registries (branches) based in partner States;

• press, through the eAc Legal & Judicial Affairs Sectoral council, for a programme of capacity building and judicial education for the eAcJ, including on the role and the jurisdiction of the court;

• press, through the eAc Legal & Judicial Affairs Sectoral council, for the eAcJ Secretariat to undertake a legal review of the effectiveness of the eAcJ’s powers of enforcement and the potential need for amendment of partner States’ domestic legislation on State/Government immunity in order to enable enforcement of eAcJ judgments;

• review barriers for rwandan residents (including private sector entities) accessing the Court, including knowledge and fi nancial barriers, and address them including through sensitisation and consider – within the scope of the national reconciliation, Justice, Law and order Strategy – the development of a legal aid fund to enable citizens, including private sector organisations, to make applications to the court; and

• review the capacity of the Government to make applications to the eAcJ and address any barriers to making such applications.

EAC Institutional Reform– Over and above specifi c recommendations for the specifi c institutions the Government will:



Consider the adoption by the EAC of majority and qualifi ed voting in key areas of regional integration, especially in connection with the effective functioning of the common Market and Monetary union. MineAc will consult the Attorney General and other stakeholders on the decision-making mechanism that caters best to rwanda’s interests. the key areas inter alia concern the ‘four freedoms’ and opening up the possibility of ‘two-speed’ integration.

3.2.3 Mitigation and Safeguard Measuresthere are possibilities to deal with potential threats to rwanda of eAc membership. in this context rwanda will:

• insist with the partner States on the highest level of liberalisation (in particular related to the ‘four freedoms’), with mitigation and safeguard measures to be taken only in clearly identifi ed and adequately documented cases;

• push for the creation of ‘Structural Funds’ for the purpose of enhancing cohesion between the partner States and reduce development gaps between in key areas (especially the areas of transport and energy pooling infrastructure);

• push for effective enforcement of the full body of eAc competition legislation;

• research and impact assessments will be carried out to advise government on the relevance of mitigation and safeguard measures over time; and

• A public forum will be arranged for private sector consultation to highlight and identify issues in need of safeguarding and mitigation measures.

In a number of areas specifi c action has to be taken in respect of legislation.

Trade - Fair competition and Competition lawin order to expedite the development of an effective regulatory regime for competition issues at the national and eAc levels, the Government will:

• undertake a detailed technical review of the eAc competition Act 2006, rwanda’s competition and consumer protection bill,



and the regulatory framework for competition in partner States to ensure they together comprise a harmonised and holistic legal framework for regulation of competition across the eAc common Market and press for any necessary amendment to the eAc competition Act as a result of the review;

• ensure the speedy enactment of the rwanda competition and consumer protection bill, and the development of the necessary regulations under it to fl esh it out;

• urgently operationalize the competition and consumer protection Act by setting up a properly resourced rwanda competition Authority, with the necessary technical competence in competition and consumer protection issues;

• press, through the Sectoral council on trade, industry, Finance & investment, for the full operationalization and resourcing of the eAc competition Authority, ensuring that it has full technical competence; and

• undertake a review (in conjunction with the private sector) of the extent to which there is full access for rwandans to competition enforcement mechanisms at the national and regional levels.

the on-going ‘top-down’ work on commercial law approximation being taken forward by the eAc task Force on Approximation of commercial Laws poses a potential threat to rwanda’s world-class commercial laws [Section 2.3.4]. in order to protect the improvement in rwanda’s investment climate won through commercial law reform, the Government will adopt a new approach to the approximation process and will:

• Strengthen rwanda’s negotiating capacity in the commercial Law Approximation task Force through the development of a rwanda commercial Law Approximation reference Group, comprising suitably qualifi ed private sector stakeholders, commercial lawyers and Government stakeholders, as well as the rwanda development board’s doing business unit, which will work with MiniJuSt representatives on the eAc task Force to develop rwanda’s negotiating position in relation to key commercial law principles;

• Adopta clear position in the eAc commercial Law Approximation



task Force that legal approximation proceeds on the basis of rwanda’s best practice commercial laws; and

• identify, in consultation with the rwanda commercial Law Approximation reference Group, the key commercial laws that are in rwanda’s interest to be harmonised/approximated, and, through the eAc Legal & Judicial Sectoral council, lobby for another approach to legal harmonisation.

3.2.4 Following up on EAC Decisions and Obligations Regionally

the Government will:

• identify, through the SWGs and in consultation with private sector and civil society stakeholders, those eAc commitments undertaken by partner States, which are most important to rwanda’s national interest. This may involve identifi cation of different commitments in relation to different Partner States and identifi cation of specifi c law reforms that need to be undertaken by eAc partner States to enable Rwanda to reap the benefi ts of EAC membership.

Monitoring compliancerwanda needs to have in place a system for monitoring the compliance of Partner States with key EAC obligations, which are of benefi t to rwanda. the Government will therefore:

• empower rwanda’s High commissions and embassies in partner States to provide the Government with key information about what is happening ‘on the ground’ in partner States in relation to compliance with eAc commitments, including the passage of key legislation and the development of compliance monitoring in the partner States;

• provide – through MinAFFet and MineAc – High commission and embassy personnel with training in monitoring and reporting techniques specifi c to EAC membership;

• develop a partners States compliance database in MineAc, which identifi es the key compliance issues for Rwanda in each partner State and monitors progress on compliance; and



• establish a complaints hotline for rwandan citizens on eAc related issues under the aegis of MineAc, with active involvement of the Offi ce of the Ombudsman. Push for the establishment of similar hotlines in eAc partner States by promoting it as a regional initiative.

Ensuring compliance the Government will take action in respect of following up on eAc decisions and commitments in three areas:

Political options• Lobby eAc Secretariat and council of Ministers for compliance by

Partner States with key compliance issues identifi ed in the Partner States compliance database.

Legal tools• rwanda will establish a legal aid fund to enable citizens to seek

enforcement of eAc decisions.

Civil society involvement; and• the Government will raise awareness among the rwandese public

of their rights and obligations pertaining to eAc membership, especially those related to the ‘four freedoms’.

3.2.5 Monitoring and Evaluation (National)in the interest of improved monitoring and evaluation of the eAc related initiatives and activities, the Government will:• establish and develop a national M&e system for eAc related

matters according to the parameters set out in the Annex M&e procedures.

3.2.6 Communication and Sensitisationthe review of the structure, objectives, programmes and potential benefi ts to Rwandans of MINEAC’s communication and sensitisation efforts in relation to the EAC [Section 2.1.6], identifi ed a number challenges that must be addressed if the overall objectives of the communication and sensitisation efforts are to be achieved. in this context:



• MineAc will embed its communication strategy in its institutional arrangements;

• MineAc will review and update the communication strategy on an annual basis;

• MineAc will ensure that its communication strategy embodies an adequate M&e framework;

• MineAc will review, assess and act upon the institutional and staffi ng consequences attaching to implementing its communication strategy;

• MineAc will put in place a communications framework specifying the relationships and communication channels between its communications unit, other MineAc units (the Strategic planning &policy research unit in particular), MdAs and the media;

• MINEAC will generate suffi cient resources (through external assistance and corporate sponsorship) to fi nance a series of communication events in the course of 2012-13 to establish and enhance basic public awareness of eAc;

• the Government will implement a funds generating drive in support of eAc integration targeting the private sector, accompanied by a publicity campaign highlighting both the benefi ts and the risks attaching to eAc membership; and

• MineAc and the other MdAs will actively engage in public awareness raising activities sponsored by the eAc Secretariat, which provide a platform for implementing part of its communication and sensitisation agenda.

3.3. AREAS OF COOPERATIONThe key recommendations under each AoC defi ned by the EAC treaty have been drawn from prioritisation exercises carried out by the members of the established SWGs11, as well as from an analysis of key documents and strategies.

11 during a workshop conducted on 24 May 2011, followed by meetings of each SWG in the period 31 May – 09 June 2011.



3.3.1 Economic Cluster

i. Trade Liberalisation & Development Sector Goal: to seek the most open internal market arrangements benefi cial to Rwanda. For regional integration this implies aiming for the most liberal form of regional integration and at the same time ensuring that other partner States meet their obligations.

the trade policy institutional framework needs to be able to adequately respond and adapt particularly to the implementation of the eA customs union and eA common Market because most of rwanda’s trade policymaking and implementation fl exibility will be transferred to eAc institutions. there is need for clearer integration and coordination within the country’s trade policy institutional framework under the direction of MinicoM and the eAc institutional coordination framework under the direction of MineAc, on the other hand.

beyond this, as a matter of key priority under this Aoc, rwanda will:

• push for removal of ntbs by continuously engaging with eAc partner States where possible and through bilateral initiatives and strengthening the Joint permanent commissions with eAc partner States;

• Review the CET to cater for Rwanda’s interests, specifi cally to ensure that competitiveness of rwanda’s industries is enhanced;

• establishment of ‘one-stop’ border posts in all major border locations within the eAc for trade facilitation;

• pursue regional regulatory frameworks and policy integration for key services;

• improve coordination between trade policy institutional framework and the MineAc coordination framework, including the coordination between SWGs and the national development and trade policy Forum (ndtpF); and

• Mechanisms to minimize losses that may arise from the establishment of the single eAc customs Authority to be established.



ii. Investment & Industry Sectoral Goal: competitive industrial and services sector with increasing levels of exports while enhancing the number of off-farm jobs. this entails increasing access to investment resources.

rwanda will:

• identify the strategies for providing rwandan small and medium-sized enterprises (SMe) with access to the eAc markets for both goods and services;

• promote linkages between industries in the community, for the benefi t of Rwandan SMEs, particularly in sectors where regional competitors possess advantages;

• establish a framework for collaboration with eAc partner States in the mobilisation of resources for large-scale regional infrastructure projects; and

• Maintain a preference for rwanda’s current investment law in eAc-related negotiations.

iii. Monetary & Financial Affairs Sector Goal: create an enabling environment for the development of Rwanda as a fi nancial sector hub and ensure macroeconomic stability within the harmonised eAc regulations and convergence criteria.

under this Aoc, rwanda will:

Financial Sector• Develop strategies to enable local fi nancial institutions to provide

better service to customers in order to be competitive at regional level;

• Assess capital account liberalisation and report capital fl ows and cash transactions;

• undertake a policy review in respect of effective supervision of fi nancial markets, banking and pension funds, either nationally or under eAc aegis;

• integrate eAc Monetary union considerations into national public debt policy; and



• identify and undertake measures to enable social security portability.

Payment Systems• expedite the implementation of planned projects of modernization

of payment systems; and• develop strategies enabling local banks to improve domestic and

international payment systems in accordance with international standards.

Monetary Policy• Strengthen macroeconomic stability; and• Harmonize laws and regulations relating to money market

instruments with eAc partner States.

Capital Markets• Maintain the policy of privatisation through sales of Government

owned shares on the capital markets; and• Maintain a policy on fi scal incentives for capital market development

that at least matches the best in the region.

iv. Standardization, Quality Assurance, Metrology & Testing Sector Goal: regionally shared high quality standards for products and services, effectively enforced, in the interest of consumer protection.

in this Aoc rwanda will:

• Harmonize standards and conformity procedures with eAc standards and conformity assessment procedures; and

• Encourage effi cient sharing of existing and new metrology and testing facilities.

v. Infrastructure & Services Sector Goal: develop transport, energy and services infrastructure with a view to reducing private and public sector costs and increasing competitiveness.



With regard to this Aoc, rwanda will:

Housing• push for an eAc land policy – for equitable access to land for eAc

partner states and affordable housing for the population;• Analyse land policies in eAc partner States to understand different

positions on land issues and craft rwanda’s strategic position on the subject matter; and

• put in place Spatial data infrastructure for rwanda to support technology-based information sharing relevant to housing and urban planning and management, and support information sharing between eAc State members.

Meteorology• establish a data centre for collection, processing and applications

for data;• promote initiatives enabling rwanda to access the early-warning

systems of other eAc partner States;• encourage the modelling of climate projections for the eAc; and• develop infrastructure for exchange of meteorology data between

eAc partner States.

Postal Services• Harmonize post offi ce connectivity by computerising relevant data

communication networks; and• Harmonize quality of services such as electronic mail tracking.

Energy• encourage the development of the eastern Africa energy pool;• construct power transmission lines in order to increase regional

electricity generation capacity with burundi, tanzania and uganda; and

• construction of an additional 168.9 MW of regional electricity generation capacity under four ppps involving burundi, (the democratic republic of congo) and tanzania.



Transport• construct roads to link rwanda with burundi (and the democratic

republic of congo,) including two one-stop-border post facilities;• develop waterway projects in respect of navigation on the Akagera

river and Lake Kivu;• take action with regard to facilitating Kigali to become an aviation

hub;• develop one railway project linking rwanda with burundi and

tanzania; and• develop two projects dealing with road transport regulation and

axle load control.

ICT• extending the geographic reach of rwanda’s broadband networks

and reducing connectivity costs through the regional connectivity infrastructure programme.

vi. Human Resources Development, Science & Technology Sector Goal: enhancing the skills and capabilities mix in key areas to support rwanda’s achievement of vision 2020; shared educational institutions, standards and qualifi cations and shared intellectual property protection.

rwanda’s Key priorities under this Aoc include:

Science and Technology• collaborate with partner States in establishing a framework for the

regional administration and enforcement of intellectual property rights;

• improve collaboration with partner States at international intellectual property right forums and other related organisations such as the Wipo, the Wto, the WHo, the FAo, uneSco and the World customs organisation;

• enable collaboration between rwandan and regional research institutions and industries, as well as the exchange and transfer of technology; and



• Improve access to technological and scientifi c developments and facilities in the region.

Human Resource Development• encourage collaboration on teacher training with institutions in the

region through harmonisation of standards and curricula, as well as exchanges and training events;

• Speed up the harmonisation and mutual recognition of certifi cations in the education, science & technology fi elds (including exams and curricula); and

• Legal review of intellectual property rights, educational standards, registration of educational establishments, and mutual recognition legislation.

Education and Training • enhance equal treatment of students in the eAc in terms of tuition

fees.

vii. Free Movement of Persons, Labour, Services, Right of Establishment & Residence

Sector Goal: ensuring the freedom of movement, right of establishment and residence of Rwandans in the EAC, as well as the infl ow of capital and skills

in respect of the ‘four freedoms’, rwanda will seek to:

• ensure implementation and enforcement of the common Market protocol, in particular in respect of ensuring compliance by partner States.

Specifi cally with regard to the free movement of services, the Government of rwanda will:

• undertake, in conjunction with the private sector, a detailed analysis of the service sector in rwanda, with a focus on professional services.

the analysis will consider the backwards and forwards linkages between different service areas; identify those service sectors that are the most relevant for rwanda to liberalise; establish which currently non-regulated service sectors identifi ed in the Protocol are priorities



for regulation, given the Government’s commitment to create a positive investment climate for the private sector and put in place only necessary regulation; as well as identify the service areas that are most in rwanda’s interest for other partner States to liberalise and those rwanda is most likely to export to other partner States. on the basis of this analysis, rwanda will:

• develop frameworks for currently non-regulated service areas (in particular professional services areas) where regulation is appropriate/necessary and that are considered to be priority service areas for rwanda in the medium term; and

• take forward liberalisation of priority service areas, and pursue liberalisation in other partners States through mutual recognition agreements.

viii. Agriculture & Food Security Sector Goal: rwanda will focus on value addition for agricultural products in order to enhance its regional competitiveness and positioning; reduce dependence on imported fertilisers by increasing the use of compost in line with the climate change policy; and promote regional landscape restoration and management for sustainable agricultural production.

in this Aoc, rwanda will:

• Focus on value addition for agricultural products in order to enhance its regional competitiveness and positioning;

• reduce dependence on imported fertilisers by increasing the use of compost in line with the climate change policy;

• promote regional landscape restoration and management for sustainable agricultural production;

• establish, promote and strengthen the use of insurance services in agriculture in line with eAc Food Security Action plan; and

• encourage cooperation among regional farmer’s cooperatives.

ix. Environment & Natural Resources Management Sectoral Goal: enhancing effective utilization of natural resources and their sustainable management; regional cooperation on shared



resources (Lake victoria basin commission (Lvbc) and Lake victoria Fisheries organisation (LvFo).

in this area rwanda will:

• develop capacity for people working in agriculture and on environmental matters, in line with the eAc Action plan and the eAc climate change policy;

• encourage sustainable waste management across the eAc;• promote water resource management across east Africa,

including at household level;• develop of regional ecosystem services; and• increase awareness and the use of Strategic environmental

Assessment and environmental Security Assessment in the national policies, plans and programmes.

x. Tourism & Wildlife Management Sectoral Goal: Stimulating common marketing of tourism and wildlife management (including forest management in the interest of tourism) and establishing the region as a single tourist destination.

Under this AoC Rwanda will:• develop rwanda’s strategic niche positioning in the efforts to

market the eAc as a single tourism destination and market;• encourage collaboration and linkages with the regional tourism

industry to enable Rwanda operators to benefi t from experiences and capacity;

• expedite the process of introducing a single eAc visa for tourists;• establish rwanda as a conference and convention hub for the eA

region; and• enforce laws against smuggling and poaching.

3.3.2 Social Cluster

xi. Health, Social & Cultural Affairs Sector Goal: enhancing cooperation in the health sector to ensure increased levels of health and better access to health services for



rwandans in the region (including cooperation on tb/Hiv/malaria control); stimulating regional cooperation in social welfare, employment and working conditions, vocational training, youth, sports and culture.

in this Aoc for Health rwanda will:

• Strengthen the health systems according to regional and international standards (accreditation);

• integrate disease surveillance and response to prevent propagation of epidemics;

• build up human capital in the health sector by harmonising medical education to facilitate mutual recognition and the movement of health professionals across the region;

• push for regional health insurance policies and mechanisms at the regional level to facilitate free movement of labour and people;

• ensure equal treatment and movements of patients within the region;

• pursue a communication policy of behaviour change in relation to the adoption of healthy lifestyles for the prevention of communicable and non-communicable diseases;

• develop cooperation and harmonisation of policies for research in health sector;

• pursue environmental health for promotion of hygiene, sanitation and addressing issues caused by the environment on health across the region; and

• Stimulate ‘e-health’ for capacity building and management of health information.

In respect of Youth Policy at regional level, Rwanda will:• encourage the development of youth empowerment schemes such

as entrepreneurship development, vocational skills enhancement and mobilisation for civic participation at regional level.

xii. Role of Women in Socio-Economic Development Sector Goal: enhancing women’s access to economic opportunities, including ensuring level playing fi elds in all socio-economic sectors.



in this area, the rwanda will pursue:

• ensure gender mainstreaming in on-going approximation of commercial law;

• Set up border markets with increased safety for cross-border women traders; and

• conduct a gender analysis review of the implementation of the national policy on eAc integration to determine the impact it has had on gender.

3.3.3 Governance Cluster

xiii. Political Matters Sector Goal: cooperating for the establishment of a common foreign and security policies, ensuring regional peace, security and good governance.

in the political realm rwanda will:

• encourage the participation/engagement of its citizens in the eAc process at the grassroots level through the use of existing governance structures at local level;

• Push for a mutual approach to refl ect high standards of good governance and promote democracy, human rights and anti-corruption;

• push for the protocol on good governance to be signed and implemented;

• Stimulate political will to achieve economic integration because political and economic integration are intertwined;

• push for gender promotion in politics, peace and security;• push for the protocol on peace and security to be signed and

implemented; • Stimulate harmonisation of cross-border enforcement (civil and

criminal law);• Push for the Protocol on foreign policy coordination to be ratifi ed

and implemented; and• push for the establishment of the protocol on common foreign

policy.



xiv. Legal and Judicial AffairsSector Goal: Ensuring a legal framework and environment to fulfi l Rwanda’s EAC Commitments and ensure Rwanda benefi ts from EAC integration.

In respect of the harmonisation of legal training and certifi cation, rwanda will:

• review rwanda’s domestic law regulating the legal professions12 to enable lawyers qualifi ed in other EAC Partner States to practice in rwanda (with additional/conversion training if appropriate); and

• enter into mutual recognition agreements with other partner States to enable Rwandan qualifi ed lawyers to benefi t from the common Market’s free movement of services commitment.

in respect of standardisation of judgments of courts within the community, the Government will:

• commission a review of the position on cross-border enforcement of contracts, including cross-border enforcement of judgements. this will involve a review of domestic legislation in other partner States and will identify key actions to ensure that rwandan businesses are not disadvantaged in relation to their ability to enforce contracts when they operate across eAc borders; and

• implement appropriate recommendations of the review which may include lobbying partner States to amend their laws on the registration of foreign judgments and providing information to the rwandan private sector on how to enforce contracts through the courts of partner States.

in order to ensure that eAc considerations are integrated into rwanda’s judicial system, the Government, in conjunction with the Judiciary and the bar council, will:

• review legal and judicial continuing education programmes to

12 Law nº 3/97 of 19/03/1997, as revised by the law of 1999 creating the rwandan bar Association and regulations made under it.



ensure they incorporate an eAc component (within the auspices of the national reconciliation, Justice, Law and order Strategy).

xv. Relations with Other Regional & International Organisations and Development Partners

Sector Goal: improving rwanda’s leverage in regional and international organisations.

in this context, rwanda will:

• identify strategies for regional mobilisation of resources from development partners and other organisations; and

• develop joint strategies and positions with eAc partner States at key international organisations and institutions.

3.3.4 Cross-cutting Area

xvi. Private Sector & Civil SocietySector Goal: enhancement of the private sector’s role in socio-economic development of rwanda and the region; safeguarding citizen’s rights and interests through civil society participation in regional integration.

In this AoC Rwanda will:• increase the scope and quantity of interaction between the public

sector, on the one hand, and private sector and civil society, on the other hand; including encouraging tri-partite dialogue; and

• promote the establishment of the necessary legal framework for constructive dialogue.

3.4. LEGAL FRAMEWORK this section sets out actions the Government will take in the light of the impact of eAc membership on rwanda’s overall legal framework, (the impact of eAc membership on rwanda’s legal framework is discussed more fully in the Annex).

3.4.1 Constitutioncareful consideration needs to be given to whether rwanda’s constitution requires amendment in the light of the treaty obligations



[see Section 2.3.1 and legal framework Annex, part d]. the Government will therefore:

• obtain a high-level legal opinion on whether constitutional amendment is necessary in view of rwanda’s eAc obligations.

3.4.2 EAC Legislative Reform ProgrammeeAc Legislative reform programme concerns the alignment of national laws with eAc commitment and ‘pro-active’ law reform.

the eAc Legislative compliance Audit compiles rwanda’s eAc commitments, which potentially have legislative implications. new commitments will certainly continue to emerge. in addition, rwanda may wish to undertake ‘pro-active’ law reforms, which will enable her to reap full benefi t from EAC membership [Section 2.3.5]. Rwanda will therefore:

• take forward an eAc Legislative reform programme, which will (i) be prioritised and sequenced; (ii) anticipate and take on board up-coming new commitments; (iii) ensure that new national legislation is eAc compliant; and (iv) incorporate ‘pro-active’ law reforms to further rwanda’s interests in the eAc.

the involvement of the private sector in identifying which are the critical priority law reforms that Rwanda needs to take forward fi rst will be vital. care will be taken to engage with those parts of the private sector that have the technical (including legal) know-how to engage in these complex issues. the Government will:

• Maintain the eAc Legislative compliance Audit as a rolling tool to track rwanda’s eAc commitments which have legislative implications;

• develop a rolling, prioritised and sequenced eAc Legislative reform programme. this will require coordination by MineAc and engagement by the SWGs, assisted by relevant line Ministry lawyers;

• track anticipated new eAc commitments with legislative implications (for example as negotiations for monetary union proceed), which will need to feed into the eAc Legislative reform programme;



• Take forward priority law reforms identifi ed in the EAC Legislative reform programme; and

• develop an eAc compliance checklist for MiniJuSt to ensure that proposed new national legislation is eAc compliant.

3.5. INSTITUTIONAL FRAMEWORKthis section sets out the details of the proposed institutional Framework for coordinating the implementation of eAc Activities at national Level. this institutional framework was established for the management, coordination, implementation, as well as monitoring and evaluation of rwanda’s eAc related activities. the Government will closely monitor its functioning in practice, in particular with respect to MineAc’s mandate, positioning and capacity, the functioning of the SWGs and the role of the Ministerial committee.

3.5.1 EAC Integration Coordination Frameworkit is recommended that the Government put in place the institutional Framework for coordinating the implementation of eAc Activities at national Level.

the Framework is built around the Ministerial committee, the SWGs and MineAc. MineAc is expected to nominate technical staff responsible for coordinating all SWG activities and preparing reports for the Ministerial committee. in general within this framework, MineAc is responsible for undertaking research and preparing appropriate documentation in collaboration with other MDAs (briefi ng papers, position papers, policy briefs and summaries of reports received from the eAc or its agencies). MineAc is further charged with prioritising issues and drawing up the agenda for the SWGs.

The Ministerial Committee has responsibility for:• Making decisions on the national position on all eAc related

issues;• providing strategic guidance to the regional integration process;• examining new eAc initiatives that involve rwanda; • examining recommendations provided by the SWGs; and• overseeing and guiding the operation of the SWGs.



the Ministerial committee will be composed of MineAc and cluster heads; (economic cluster, Social cluster and Governance cluster).

the SWGs’ role is to ensure effective coordination of eAc-related activities in two main ways:

a) Coordination role:

• coordinating with other stakeholders – including MdAs, local governments, private sector and civil society – matters related to eAc projects and programmes;

• Facilitating the preparation, implementation and progress monitoring of EAC-specifi c projects and programmes, and regularly following-up on the implementation of Summit, council and Sectoral committee decisions and directives; e.g preparation of country position papers.

• preparing for eAc council and Sectoral committee meetings; and • Make recommendations and propose safeguard measures, if

necessary, on issues emerging from activities at regional level for the consideration of the Ministerial committee.

b) Mainstreaming Regional Integration and implementing EAC decisions:

• Mainstreaming regional integration in national plans and ensuring their implementation; and

• M&e on the implementation status of eAc decisions and commitments.

The composition of the SWGs at the core of the coordination framework is set out in the following table.



Table 1 – Sector Working Groups: Mandate & MembershipNº SWG Chair MembersA economic cluster

1. infrastructure MininFrA

MineAc, rtdA, rurA, rcAA, rrA, Minict, rdb, npo, rMS, eWSA, niSr, civil Society, rec, rbS, reMA and pSF

2.

trade, industry, investment, tourism & Wildlife Management

MinicoM

MineAc, MinecoFin, reMA, MinirenA, bnr, rdb, niSr, rrA, rbS, bankers’ Association, rSSb, rurA, cMA, civil Society, pSF and MiFotrA

3.Finance & economic Affairs

MinecoFin

MineAc, MinicoM, bnr, cMA, niSr, civil Society, insurance Association and bankers Associations, rSSb and pSF

4.

Agriculture, natural resources & environment

MinAGri

MineAc, rAb, reMA, MinirenA, niSr, Farmers Association, civil Society, MidiMAr, rbS and pSF

b Social cluster

5.

education, Labour, Science and technology, culture & Sport

Mineduc

MineAc, reb, MiniSpoc, niSr, civil Society, Minict, MiFotrA, pSc, WdA, rAb, Hec, reb national Museum, rectors Forum and pSF

6. Health MiniSAnteMineAc, rbc, MinicoM, niSr, civil Society, rbS, rSSb.



Nº SWG Chair Members

7

Gender, youth, children, Social protection & community development

MiGeproF

MineAc, MiniyoutH, MinALoc, national children’s commission, GMo, MiFotrA, civil Society, niSr, Mininter, rbc,reb, and pSF

c Governance cluster

8 Legal & Judicial Affairs MiniJuSt

MineAc, Judiciary, civil Society, bar Association, public prosecution Authority, correctional Services, parliament, Mininter and pSF

9. political Affairs MinALoc

MineAc, Mininter, niSS, MinAFFet, MinAdeF, MidiMAr, pSF, civil Society, MininFor, nec and rGAc

Institutional Framework ProcessSWG members are essentially MdA focal points to eAc integration. the SWGs provide a forum for all of the country’s stakeholders in a given aspect of regional integration, thus ensuring that pertinent factors, points of view and interests are taken into account in key decisions. they are also instrumental in providing MineAc with high-level expertise from relevant MdAs. the recommendations of the SWGs will be reported to the Ministerial committee for their approval.

the chair of the Ministerial committee is the Minister of east African community. chairing the SWGs is the responsibility of the relevant lead-entity with MineAc providing the deputy-chair. As the chair, the lead-MDA sets the pace of integration in the respective fi eld, by identifying priorities and assessing the implementation of actions in support of those priorities.



Finally, there is a need for each SWG to develop a work plan based on the implementation plan in this Strategy. these workplans should emphasise the SWGs’ functions in terms of the reactive and pro-active measures that rwanda needs to take in each Aocs. on the basis of these workplans the SWGs will report to the Ministerial committee.

this institutional framework process will be reviewed annually to ensure effectiveness and to improve delivery of eAc integration commitments.

3.5.2 MINEAC’s Mandate, Positioning and Capacity the following section sets out the Government’s intentions with regard to MineAc’s mandate and institutional positioning, i.e. the nature of its relation to other governmental entities.

Mandate - MineAc’s mandate is to coordinate the eAc integration process. to support this the Government shall:• Monitor the implementation of MineAc’s mandate in terms of

its coordination and guidance role vis-à-vis other MdAs, for the purpose of focusing leadership in rwanda’s engagement with the eAc and ensuring that rwanda’s eAc commitments are complied with as planned.

the Government will base the monitoring of MineAc’s mandate primarily on how MineAc effectively coordinates the implementation of rwanda’s eAc commitments. therefore

• MineAc’s capacities are to be strengthened with respect to: (i) identifi cation of EAC related issues demanding attention; and (ii) assisting the relevant MdAs to tackle these issues timely and adequately; and

• MineAc will have adequate numbers of the experienced and high-level staff (including lawyers), able to address complex issues, necessary for engaging effectively with MdAs and participate effectively in SWGs.

Positioning - With respect to MineAc’s positioning the Government will:



• periodically review the current arrangements with a view to amending them in case of need, in consultation with relevant stakeholders.

3.5.3 Ministerial Committee and SWGsthe Government recognises that MineAc must work to strengthen and consolidate line ministries’ ownership of their responsibility to embrace and prioritise eAc activities within their strategies, work plans and day-to day activities. the SWGs need to become the driving force for eAc implementation, working in line with the national policy and Strategy for eAc integration both to ensure compliance with eAc commitments and proactive actions to ensure rwanda is well positioned within the eAc. to this end, the Government gives MineAc the responsibility to:

• draw up, in consultation with the relevant lead-MdA, a work plan for each SWG, taking into consideration the eAc calendar of meetings and the MineAc work plan. MineAc and the MdAs may call meetings in response to ad hoc information requests from the eAc and other unplanned, but important eAc integration related events.

The Government will:• take all steps necessary to ensure that the Ministerial committee

exercises its important functions in respect of overall regional integration and eAc decision-making and providing policy guidance to the SWGs.

The Ministerial Committee will:• continuously monitor the SWG structure as it exists and functions

at any one time, including the mandate and scope of each SWG, in terms of their composition and workloads, and will draw and act upon the lessons learned from their on-going activities;

• Report quarterly to the Offi ce of the Prime Minister on the progress of the implementation of the eAc integration agenda; and

• Make recommendations to the Offi ce of the Prime Minister on steps necessary for the effective implementation of the eAc integration agenda and the national policy.



4. ANNEX: HISTORY OF EAC AND LEVELS OF INTEGRATION

the eAc has a long history of cooperation; it is credited with one of the longest experiences in regional integration. in 1900 Mombasa was established as a customs collection centre for uganda, in 1905 a currency board was set up to issue currency for Kenya and uganda, in 1917 a customs union was established between Kenya and uganda-tanganyika joined in 1922. in 1948 a high commission was established and in 1961 a commission Services organisation was established (east African posts and telecommunications, east African railways and Harbours, east African Airways, east African civil Aviation Services, east African trypanosomiasis research organisation, east African development bank). in 1967 the treaty establishing the community was signed and in 1977 the then community collapsed.

the collapse of the former eAc in 1977 dealt a major blow to the east African region and was widely regretted, particularly so since the former community had made great strides and was considered the world’s model of successful regional integration and development.Many reasons have been cited for the collapse of the community, among them structural problems which impinged on the management of the common services, inadequate involvement of the people in decision making processes, lack for compensatory mechanisms for addressing inequalities in the sharing of costs and benefi ts of integration, ideological differences, vested interests and the lack of vision on the part of some leaders.

However, following that collapse, a process was engaged to mediate between the eAc countries to avoid a disastrous break up. At a side meeting by the commonwealth Heads of state and Government in Harare in 1991, the Heads of State of Kenya, uganda and tanzania agreed to revive cooperation in the region. that decision culminated in the signing of the agreement for the establishment of a permanent tripartite commission for east African cooperation on 30th november 1993. the treaty establishing the east African community was signed on 30th november 1999 and entered into force on 7th July 2000.



the republic of rwanda applied for eAc membership in 1996 and offi cially became a member on 1st July 2007 together with the Republic of Burundi. These fi ve East African Partner States have a population of around 133 million and a Gdp of uSd 79 billion.

there are four levels of integration:

Customs Unionrwanda joined the eAc customs union – established between Kenya, tanzania and uganda in 2004, with implementation commencing in 2005 – and started applying its instruments on 01 July 2009. the main features of the eAc customs union include the following:

• duty-free and quota-free movement of tradable goods among its constituent customs territories;

• A common set of import duty rates applied on goods from third countries, i.e. the common external tariff (cet) and

• rules of origin criteria;• A common set of customs rules and procedures including

documentation;• A common coding and description of tradable goods, i.e. the

common tariff nomenclature, (ctn);• A common valuation method for tradable goods for tax (duty)

purposes (common valuation system);• A common trade policy that guides the trading relationships with

third countries and trading blocs outside the customs union, i.e. guidelines for entering into preferential trading arrangements such as Free trade Areas with third parties.

The EAC is not yet a fully-fl edged Customs Union and arrangements are still being worked out for common safety measures for regulating the importation of goods from third parties such as phyto-sanitary requirements and food standards, as well a structure for collective administration of the customs union, including revenue collection.

Common Marketon 20 november 2009, rwanda signed the protocol establishing the eAc common Market, which came into force on 01 July 2010. the key



elements of this level of integration are the so-called four freedoms: free movement of goods, labour, services and capital. the common Market also contains aspects of economic union i.e., harmonization of economic policies as well as regional cooperation e.g., a common transport plan.the eAc Legislative compliance Audit Annex and the policy review Matrix Annex represent an assessment of the current status of rwanda’s implementation of its eAc obligations under the common Market. the assessment shows that rwanda is in the early stages of the legal alignment process in the context of the single market and, consequently, that the practical implementation of measures designed to meet the country’s rights and obligations under the common Market protocol has not yet started. Monetary UnionFollowing a preparatory period that started in early-2010, the negotiations to arrive at a protocol for the establishment of the east African Monetary union (eAMu) commenced with a meeting of the High-Level task Force on 17 January 2011. Although it is strictly speaking not necessary to enter into a Monetary union to reap the benefi ts of deep regional integration, doing so is likely to enhance the synergies of economic integration and the establishment of the common Market. The substantial benefi ts (economic gains through reducing the cost of changing money, removing exchange rate uncertainties and enhancing price stability), as well as the disadvantages (mainly the loss of independent monetary policy) of rwanda’s joining the eAMu are set out in the Annex on rwanda and the east African Monetary union. Political Unionpreparations for the establishment of a political union are at a very early stage, with an experts’ report on the perceptions in the partner States on such a union and the related challenges and proposed solutions discussed at the eAc Summit in november 2011. Work on preparation of rwanda’s membership in the eAc as a political union has not – unlike that related to the Monetary union – assumed the stage of technical preparation as yet.That said, the stated intention of all fi ve Partner States to achieve political union in the medium- to long-term, will require practical steps to commence no later than 2015.

Ministry of eAst AfricAn coMMunityP. O. BOx 267 Kigali - rwanda

Email: [email protected]

Telephone: +250 252 599 120

website: www.mineac.gov.rw

twitter: minEacrwanda

Facebook Page: The ministry of East african community

a publication of the ministry of east african community minaffet national...ii the national policy...

Documents