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Viewing cable 07KAMPALA1090, EAST AFRICAN FEDERATION GETS BIGGER

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Reference ID Created Released Classification Origin
07KAMPALA1090 2007-07-03 13:09 2011-08-25 00:00 UNCLASSIFIED Embassy Kampala
VZCZCXRO2378
RR RUEHROV
DE RUEHKM #1090/01 1841309
ZNR UUUUU ZZH
R 031309Z JUL 07
FM AMEMBASSY KAMPALA
TO RUEHC/SECSTATE WASHDC 9001
INFO RUCNIAD/IGAD COLLECTIVE
UNCLAS SECTION 01 OF 02 KAMPALA 001090 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: PNAT PGOV PREL UG
SUBJECT: EAST AFRICAN FEDERATION GETS BIGGER 
 
REFERENCE:  KAMPALA 0511 
 
1.  Summary.  Rwanda and Burundi were admitted to the East African 
Community (EAC) during a regional summit in Kampala on June 18.  The 
expanded community increased the number of member states which also 
includes Kenya, Tanzania and Uganda.  The EAC leaders committed to 
working together for socioeconomic improvement.  For Uganda, the 
enlarged community represents an expanded regional block and an 
attractive destination for investors.  End Summary. 
 
-------------------------------------- 
Rwanda and Burundi Join Regional Block 
-------------------------------------- 
 
2.  On June 18, Rwanda and Burundi joined the East African Community 
(EAC) at the fifth Extra-Ordinary Summit of the Heads of State, 
after signing the treaties of consent.  The two countries fulfilled 
the key requirements for joining the community which included having 
a border with one of the three countries, possessing a 
democratically elected government, and operating a free market 
economy.  EAC membership of Rwandan and Burundi took effect on July 
1, 2007. 
 
------------------------------------ 
The Benefits of Regional Integration 
------------------------------------- 
 
3.  The EAC region has the potential to be a formidable economic 
power with a land of 19 million sq kilometers of Africa's most 
productive landscapes and continued GDP growth of over $40 billion. 
The social-economic benefits are also potentially largeenormous; it 
includes free movement of labor across borders, intra-trade 
activities, common external tariffs strengthened bargaining power, 
and protection of common interests. 
 
4.  The admission of Rwanda and Burundi to the EAC would contribute 
to Africa's current efforts for a strategy to deal with deep-rooted 
structural problems that hinder development.  In addition, the 
integration could contribute to member states overcoming constraints 
like small size, market limitations and structural challenges. 
 
--------------------------- 
Leaders Embrace Integration 
--------------------------- 
 
5.  Paul Kagame described admission to the EAC as an important 
milestone, not only for the people of Rwanda, but for EA.  He said, 
"it marks our formal entry into a family of nations with long 
historical and cultural ties, which provides an opportunity for 
wider and deeper integration."  He added that "a united and 
prosperous EAC will enable us to assert our collective interests as 
a stronger economic bloc in Africa and in the Global world."  Pierre 
Nkurunziza of Burundi said that it was a rare pleasure and honor for 
his country to join the EAC.  He appeared particularly pleased with 
the summits proceedings, according to journalists covering the 
event. 
 
7.  Speaking about the two new member states, Tanzania's President 
Jakaya Kikwete said, "the expanded membership gives reason to hope 
and celebrate to overcome backwardness and underdevelopment." 
Kenya's Mwai Kibaki said "the accession of Rwanda and Burundi 
completes the link as the two countries are geographically, 
culturally and economically connected to the region."  President 
Museveni said the community was the only answer to the "colonial 
irrationalities" that divided Africa with artificial borders.  He 
said the EAC was the most well-placed to lead Africa out of the 
"straight jacket of political balkanization." 
 
---------------------------- 
Integration faces Challenges 
---------------------------- 
 
8.  Despite potential benefits, the EAC region is among the poorest 
in the sub-Saharan Africa and in the world.  It is one of the most 
affected by HIV/AIDs.  All the countries (apart from Kenya) that 
were surveyed have been ranked by Transparency International as 
among the most corrupt in the world.  Rwanda and Burundi will likely 
face stiff competition from partner states whose manufacturers 
dominate the region's market. 
 
------ 
Comment 
------- 
 
9.  GOU officials were pleased with the attendance and the outcome 
of the EAC summit.  It is anticipated that the expanded EAC will 
assist the region's unity.  The accession of Rwanda and Burundi to 
the EAC received wide media coverage.  Ugandans welcome the economic 
benefits that come with the integration.  Other EAC issues to watch 
are, fast tracking of the political federation and harmonizing of 
the region's configuration negotiations with the EU, in respect to 
 
KAMPALA 00001090  002 OF 002 
 
 
World Trade Organization rules governing liberalized trade and 
stages of integration. 
End Comment. 
BROWNING 
 
 
 
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