EAST AFRICAN COMMUNITY

“One people, one destiny”

Monday, November 4, 2013

EALA swears- in Hon. Celestine Kabahizi from Rwanda

EALA has this afternoon sworn in its newest Member, Hon Celestin Kabahizi from Rwanda. Hon Kabahizi was elected on Monday this week by the Parliament of Rwanda, replacing Hon Jacqueline Muhongayire, who was appointed Rwanda’s Minister for EAC Affairs in July 2013.

The brief ceremony was conducted by the Speaker of EALA, Rt. Hon Margaret Nantongo Zziwa and the Deputy Clerk, Alex Obatre. The Member took the oath in accordance with Rule 6 of the Rules of Procedure of the Assembly. The Rules of Procedure say in part that: “No Member can sit or participate in the proceedings of the House until the Oath or Affirmation of Allegiance to the Treaty is taken”.

Rule 6(3) specifically states that “when a Member first attends to take his or her seat other than at the first sitting of a new House, he or she shall be brought to the table by two Members and presented by them to the Speaker who shall then administer the Oath or Affirmation of Allegiance”

Hon Kabahizi was escorted into the House by Hon Pierre Celestin Rwigema, Hon Dr. Odette Nyiramilimo and Hon Mike Sebalu at exactly 2.40 pm.According to the New Times daily of Rwanda, Hon Kabahizi has over 30 years’ experience in governance, from various levels. He is no stranger to issues of governance, decentralization and rural development 

Formerly, the Governor of Western Province, Hon Kabahizi holds two degrees in economics and statistics.Hon Kabahizi did his first degree in statistics and then obtained another in economics in Rwanda before enrolling for a master’s degree in management development economics in 2002 in Germany.

The Member is multi-lingual with a good command of English, French and Swahili. He can fairly communicate in German as well.

Rwanda’s other eight EALA members are Hon Patricia Hajabakiga,  Hon Christophe Bazivamo, Hon Dr. James Ndahiro and  Hon Straton Ndikuryayo. Others are Hon Valerie Nyirahabineza, Hon Abdul Karim Harelimana, Hon Dr. Odette Nyiramilimo and Hon Pierre Celestin Rwigema.

The House is expected to be adjourned this evening.   Tomorrow, Members shall attend a one-day Sensitization workshop on the East African Monetary Union (EAMU).

  Hon Celestin Kabahizi takes the Oath administered by the Deputy Clerk of EALA, Alex Obatre as Hon Dr. Odette Nyiramilimo looks on.
  CTI’s  report on the monetary union sails through the house

EALA yesterday debated and adopted the Report of the Committee on Communications, Trade and Investments (CTI) on the Consultative Workshop on the East African Monetary Union (EAMU). 

While the Assembly maintained that the EAMU was a defining moment for the integration process, it reiterated the need for the region to move with haste to fully implement the Customs Union and the Common Market Protocols. Full implementation of the two Pillars, the Assembly ascertains, will pave way for entry of the single currency. 

The Report presented by Hon Angela Kizigha, Chairperson of the CTI summed the findings of a Consultative Workshop held in September 9-11, 2013 in Kampala, Uganda.   The Kampala meeting was organized to acquaint Members with the state of play of the progress of EAMU with regards to negotiations, opportunities and challenges involved.

The Report states that once in place, the EAMU would promote and sustain a zone of sound monetary policy and prudent fiscal policies to reinforce EAC’s monetary policies.  The roadmap of the EAMU provides for its implementation over a ten year period, time within which, the single currency shall be realized.  At the same time, the exchange rate policy shall have a convergence phase and the conversion of exchange rates shall be formulated and irrevocably fixed by the Council of Ministers.

Ideally, the pre-requisites for the EAMU pre-suppose the implementation of the Customs Union and the Common Market, integration of financial systems, harmonization and co-ordination of statistics and macro-economic policy.  Other areas include the need to establish a mechanism for surveillance, compliance and enforcement, establishing an inflation ceiling of 8% and indicative criteria including fiscal deficit ceiling of 6%. 

The proposed institutional framework under the EAMU envisages the establishment of the East African Monetary Institute (EAMI), East African Central Bank as well as a number of institutions dealing with statistics, finance, surveillance and compliance. 

At debate time Hon James Ndahiro remarked that it was important for the Protocol to be comprehensive.   “The Committee responsible for finalization of the Monetary Union Protocol needs to meet and liaise closely with the policy leaders including the Ministers and the Economists in order to ensure a common position on sticky matters”, he said.

The legislator remarked that EAC needed to protect itself from external shocks and to avoid situations that were replica of what happened in the EU especially Greece and Spain.   “There are complex issues to deal with and this take time.  It is therefore necessary that we harmonise pre-requisites in time.  I am pleased the Protocol allows for three Partner States to progress at a given time and this shall not delay the Monetary Union,” he added.

Hon Frederic Ngenzebuhoro informed the House that the single currency was an important component of the Monetary Union capable of helping East Africans to realize their aspirations.  Hon Abdul Karim Harelimana was optimistic that the Monetary Union would be realized and suggested that at an appropriate time a unifying name for the currency be sought.  He further reckoned that all efforts were needed to address the issue of currency convertibility.

Hon Dan Kidega said the Committee had held discussions with technical persons and  experts who had enriched the process.  He remarked that the Principle of Variable Geometry was increasingly becoming an important component of the integration process. Hon Kidega called for better management of statistics so as to give a true and factual picture of the Monetary Union and thus enable the complexities to be demystified.