The Protocol on the Establishment of the East African Community (EAC) Common Market entered into force on 1 July 2010, following ratification by all the five Partner States: Burundi, Kenya, Rwanda, Tanzania and Uganda. The Protocol was signed by the Heads of States on 20 November 2009, coinciding with the 10th Anniversary celebrations of the revived Community.
The establishment of the East African Community Common Market is in line with the provisions of the EAC Treaty. It provides for "Four Freedoms", namely the free movement of goods; labour; services; and capital, which will significantly boost trade and investments and make the region more productive and prosperous. - www.eac.int
The East Africa Trade and Investment Hub is working to support the EAC to implement all aspects of the Common Market Protocol. Our policy team engages with relevant stakeholders to help drive the community towards the vision of a common market.
In this video, Hub Senior Economist, Alfred Ombudo K'Ombudo discusses financial integration, its importance and what the Hub is doing to help achieve free movement of capital. Mr. K'Ombudo says:
Financial integration is the process through which the countries in a common market harmonize their laws and regulations that govern monetary transactions across the block as well as supporting infrastructure such as payment and settlement systems to minimize risk and ensure seamless transactions.
This promotes trade and investment across the region for instance by making it easy to move capital across borders so that money meets opportunities where returns are highest while minimizing risk.