Tag Archives: Uganda

Setting the example

 

Isabelle Alenus-Crosby

Quite recently, the five members of the East African Community (EAC) agreed to adopt a single currency, which should go into effect within the next 10 years. Kenya, Uganda, Tanzania, Rwanda and Burundi first came together in 2000 to create a common market and single customs union, modeled after the Eurozone. The aim is to make business a lot easier across East Africa.  If their model is a success, then the entire African Union might follow suit.

When 50+ African countries are watching your every move, setting the example can be quite daunting. After all, success could contribute highly to the continued economic success of Africa (no pressure).

Of course, regional integration is a deeply political process and the implementation of a single customs territory has important political aspects.

However, East-Africans are already thinking of themselves as just that: East Africans. There are rumours that Burundi, like Rwanda, wants to adopt English as their common language in order to assure the Union’s success, and all reports following the numerous meetings between the five EAC leaders are very positive. Having spent a considerable time in all five countries myself, I am convinced that the Union will be a resounding success, even if there are quite a few reported delays at the moment.

Rome wasn’t built in a day after all.  And neither was the Eurozone.

Causing a stir: The fifth BRICS Summit

 

Isabelle Alenus-Crosby

The BRICS account for 21% of world GDP (IMF), 17% of world trade, and over 40% of the world’s population. This year, BRICS is expected to grow at almost 5%, well above the world average (at 3.6%).

This year’s summit therefore received quite a lot of media attention, and not just due to the attendance of the brand-new Chinese President Xi Jinping, nor because of the above statistics.

For South Africa, which makes up just 2.5% of total GDP in BRICS, the summit was an opportunity to showcase its role as an investment gateway to Africa and President Zuma therefore invited 15 African heads of state to attend. Tensions between South Africa and Nigeria (surrounding Nigeria’s belief that they should also be part of BRICS) means that President Goodluck Jonathan did not attend, but other heads of state including Angola, Cote d’Ivoire, Senegal, Uganda, Ethiopia and Egypt, did. Each country actively showcased its nation, grabbing the momentum of the African continent’s current economic boom.

What caused the greatest stir however, were the talks about the establishment of a development bank, which would rival the World Bank and the IMF, and is meant to fund infrastructure and development projects in member states and developing nations, through a joint foreign reserves fund.

The discussions of where the bank will be, or how much money each nation will contribute, did not reach a conclusion. Several experts and officials have said the bank will start with 50 billion dollars, divided equally. BRICS members are clearly seeking greater sway in global finance to match their rising economic power. Undoubtedly the “New Development Bank” will be top of next year’s agenda. The 2014 Summit will be held in Brazil.