Operating Environment

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    Economic Environment

    This section provides a comparison of economic outlook at Sub-Saharan, Africa and global levels and an analysis of EAC micro economic performance.


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    EAC Trade

    The economies of the EAC depend on export of agricultural commodities, manufactured products and services such as tourism, ICT and financial services. To a large extent trade between Partner States as well as with the rest of the world is mainly on primary commodities though there is an increase...


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    EAC Investment

    EAC Partner States are committed to improving their investment environment with targeted investments into infrastructure, industrial development and oil production and refining, as well as investment in renewable energy to reduce the huge import bill and dependence on fossil fuels.


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    Infrastructure & Utilities

    Power supply and energy: Power generation in the region is largely hydro- based. In 2019, 14.8 US cents is the average cost for one kilowatt hour (kWh) of electricity for East African domestic and industrial consumers. Hydro-power as an energy source is excelling in the region but suffers from a lack of distribution infr...


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    Human Resources

    Each EAC Partner State has well-developed public and private education institutions at primary, secondary and tertiary levels. All the EAC Partner States are taking measures to increase support to the sector. Specialised Regional Centres of Excellence are being established across the EAC.


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    Financial Sector

    Each EAC Partner State currently has its own financial sector, consisting of a central bank, commercial banks, non-bank financial institutions, mortgage companies, insurance companies, development finance institutions, microfinance institutions, Savings and Credit Cooperative Organizations (SACCO...


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    Taxation

    EAC Partner States with the exception of South Sudan have well established tax regime and national revenue authorities that are responsible for assessment, collection and accounting for all revenues that are due to government in accordance with the national laws. Taxes applicable to business enti...


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    Private Sector

    The treaty for the establishment of the East African Community emphasizes a people centered, market driven and private sector led integration process for accelerating regional growth, creating wealth and reducing poverty. The role of the private sector is therefore anchored at all levels as a veh...


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    Public Private Partnerships

    PPP are an alternative method for procuring and delivering both infrastructure assets and services. Burundi, Kenya, Rwanda, Tanzania and Uganda have enacted PPP laws and have also put in place PPP regulations/ guidelines.


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    Export Processing Zones (EPZ) and Special Economic Zones (SEZ)

    Each Partner State has gazetted export processing Zones (EPZ) and Special Economic Zones (SEZ). EPZ and SEZ across the Partner States focus on contributing to building a strong export-led economic development through industrialization. EPZ and SEZ provide a number of specific incentives for inves...


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