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Africa Watch: Brexit lesson to East African bloc to reassess integration process

Xinhua, June 29, 2016 Adjust font size:

Britain exiting the European Union (EU) is a wake-up call for the East African Community (EAC) member states to critically look at the integration process, a top government official said on Wednesday.

Henry Okello Oryem, Uganda's minister of state for international affairs, told Xinhua in an interview that the happenings in Britain showed that the ordinary British people did not see the value of the EU to their ordinary lives, a similar incident that can occur to the EAC.

The EAC, a regional trading bloc that brings together Kenya, Tanzania, Uganda, Rwanda, Burundi and South Sudan espouses the EU integration model in its efforts to fast track economic development.

The bloc already has a Customs Union, Common Market and is now working on a Monetary Union. Its ultimate goal is to have a political federation, a similar quest by the EU.

Oryem said the integration process should not be left to the elites but also include the ordinary citizens of each member country who should play a critical role.

He argued that until the ordinary citizens appreciate the value of the integration process, it would be a fallacy to integrate the bloc.

"They really have to understand it, believe in it and embrace it in order for us to move forward because if they don't, then the consequences would be similar to what is in Britain if a referendum is called," Oryem said.

He added, "With in the EAC, we need to go back on the ground and on the drawing board to reexamine the relationship between the citizens and the bloc."

EAC leaders have been at the forefront of fast tracking the integration process, arguing that it is the surest way of pulling millions of east Africans out of poverty.

Ugandan President Yoweri Museveni, who is seen as championing the integration process in the region, has argued that trading as bloc puts the region in a better position in international trade negotiations. It would also be easier to attract foreign direct investment in view of a bigger market.

EAC Secretariat figures show that as of 2015, the region had a population of 145 million people and a Gross Domestic Product of 147.5 billion U.S. dollars.

FEARS

As the world still grapples with the likely effects of the Brexit on the economy, some countries which keep their foreign reserves in the British pound are already at risk.

"We hold part of our foreign reserves in the British pound. Since the Brexit, the pound has had a hitting against other currencies and has fallen formidably," Oryem said.

He argued that although currently there is no need to use the foreign reserves but if the need arises and the value of the pound continues to fall, then the country's purchasing power would be reduced.

Oryem argued that Britain leaving the EU will definitely have an impact on many sectors.

Britain was a major funder of the EU which in turn offered aid to Africa, and in this case Uganda, where it is financing the construction of key infrastructure projects. With Britain's departure, the continuation of these projects may be in balance.

Uganda on June 28 called a meeting of envoys of EU member countries to among others discuss the impact of the Brexit. Endit