East African Community Partnership Fund

Results achieved as of March 2012 include: By financially supporting the responsible East African Community (EAC) High Level Task Forces this project has directly contributed to the establishment and continued implementation of the EAC Common Market Protocol the implementation of the EAC Customs Union (intra-EAC tariffs and 23 non-tariff barriers have been eliminated) and accelerated progress in establishing the EAC Monetary Union Framework. This overall progress on regional integration has contributed to increases in intra-EAC trade cross-border investment levels and non-tariff revenues. Non-tariff revenues have risen due to improved economic performance improved tax administration general economic growth taxes such as value added tax and income taxes (total tax revenues have been increasing in all partner states since the establishment of the common external tariff). Since 2005 the EAC has grown noticeably faster than the rest of sub-Saharan Africa and has almost doubled the rates achieved in the previous 15 years. Between 2005 and 2010 intra-EAC trade increased from US$2.2B to US$4.1B. During the same period total EAC global trade increased from US$17.5B to US$37B. Between 2000 and 2010 the size of the EAC economy grew in real terms from US$32B to US$79B with foreign direct investment increasing from US$688M to US$1.7B. The EAC growth rate for 2010 was 6%.