Economics integration blocks

East African community is the regional intergovernmental organization of Kenya, Tanzania, Uganda, Rwanda and Burundi.

This is the cooperation/ union of east African countries which has common objectives and self-commitment to increase/ Deeping cooperation among member of integration so as to enjoy mutual advantages socially, politically and economically.

East African community just like other economic integration aimed at increasing collective bargaining in economic, social and political issue and formation of common strategies and polices of achieving common objectives and benefits

Background/ history of East African community

The east African community (EAC) is the community with long history, the genesis of east African community can be traced back to 1923 when east African governor's conference formed, and then on 1^st January 1948 the east African high commission replaced, the east African governor's conference. Then after Tanganyika independent on 9th December 1961. The east African service organization (EACSO) was established. These create a foundation of former and current / new east African community.

Former East African community

This was economic cooperation of east African countries namely Tanzania, Kenya and Uganda. The reality of establishing former east African community signed by president of three east African countries on 6^th June 1967 in Kampala Uganda. But communities come into existence effectively on 1^st December 1967 as a replacement of eastern African service organization and effective formation of east African common market (EACM), from that day most of function performed by EACSO and employees were taken by EAC. Also Arusha became headquarter of the EAC.

The former east African community were aimed at promoting free trade of commodities, to provide common services, creating free movement of people, increase in extent of market to deep cooperation, making common research and development.

Factors/ reasons for decline of former East African community

The collapse of former east African community is due to the following reasons:

1. Difference in political and economic ideologies among member countries The ideological divide between socialist Tanzania and capitalist Kenya created tension, as their differing economic systems made it difficult to achieve common economic goals, leading to misaligned priorities within the community.
2. Political misunderstanding/conflict between Tanzania and Uganda Tensions between Tanzania's Julius Nyerere and Uganda's Idi Amin were significant, as the lack of dialogue and cooperation between the two leaders caused instability and hindered the functioning of the East African Community, ultimately contributing to its collapse.
3. Failure of East African Development Bank to meet expected objectives The East African Development Bank's inability to effectively promote economic growth and development in the region led to a loss of confidence in the community's ability to foster economic integration, undermining its initial purpose.
4. Donors' influence and the problem of neo-colonialism External pressures and the influence of donors, often with neo-colonial agendas, affected the independence and unity of the East African Community, causing some member countries to prioritize colonial interests over regional integration goals.
5. Lack of clear and agreed pattern of industrial specialization The absence of a coordinated industrial strategy meant that each member country pursued its own goals and development plans, resulting in unequal benefits and inefficient economic integration within the region, contributing to the community's eventual decline.

The new East African community

The new East African community is the economic integration of east African countries aimed at creating deep cooperation among East African countries economically, socially and politically. The formation of new East African community started in early 1980's when member of former east African community meet for division of asset and liabilities of former east African community but the treaty for establishing East African community signed on 30^th November 1999 but new East African community started to work effectively on 1^st July 2000.

East African community has five member countries namely Tanzania, Kenya, Uganda, Burundi and Rwanda it his head quarter Arusha, Tanzania.

Objectives of the new East African Community (EAC)

1. Facilitate free movement of goods and factors of production through a common market. The EAC aims to gradually eliminate tariffs and non-tariff barriers, enabling the free flow of goods, labor, capital, and services among member states to increase regional trade and economic integration.
2. Strengthen cooperation in political, economic, and social affairs. The community seeks to develop shared policies and programs that deepen collaboration in governance, economic development, education, health, and other sectors vital to regional stability and progress.
3. Promote gender equality and empower women in all spheres of development. EAC supports initiatives that enhance women's participation and leadership in economic, social, political, and technological sectors, ensuring inclusive growth.
4. Encourage sustainable use of natural resources and balanced regional development. The community focuses on environmental protection and equitable distribution of development benefits to reduce disparities among partner states.
5. Promote equitable economic development and improve living standards. EAC works to uplift the quality of life for its citizens by emphasizing people-centered development, poverty reduction, and equal access to opportunities across the region.
6. Maintain peace, security, and good relations among member countries. Through regional defense, diplomacy, and conflict resolution mechanisms, the EAC aims to ensure long-term peace and good neighborliness within East Africa.
7. Strengthen partnerships with the private sector and civil society. The community encourages collaboration with businesses and non-governmental organizations to foster innovation, drive investment, and achieve sustainable socio-economic growth.

The areas of cooperation in the new East African community/ cooperation

The current formed East African east cooperation covering the integration and cooperation in the following areas.

1. Cooperation in trade and development. East African community agreed to create trade militarization where by member countries should reduce up to elimination of trade barrier to the custom union and common market in order to create free movement of goods and factors of production.
2. Cooperation in social and economic infrastructure They agreed to harmonies and adopt policies and laws of improving social and economic infrastructure and joint use facilities in transport and communication for joint development
3. Monetary and fiscal cooperation (financial cooperation) Member countries agreed to establish monetary and fiscal union means economic policies and elimination of obstacle against financial investment within member state like banking and convertibility of currencies and other strategies of achieving monetary union i.e. the use of one east African currency.
4. Cooperation in human resources, science and technological advancement. Under this union member countries create union and cooperation in education, training, and jointly establishment of common policies and strategies of human resources mobilization, science and technology development.
5. Cooperation in agriculture and food security. With the aim of adopting scheme of rationalization of agriculture production in order to promote complementary and specialization in order to increase food supply and having surplus food for security for food shortage.
6. Cooperation in tourism and wildlife management Member countries agreed to have common, collective and coordinated policies and approaches of promoting and marketing quality tourism, conservation and utilization of wildlife and tourist centre.
   • cooperation in environment and natural resources management
   • cooperation in investment and industrial development other are legal and justice, role of woman political matters and private sector

Note: the merits demerits and problems facing east African community are similar to those discussed in general in the previous page.

The Southern African Development Community (SADC) is an association of Southern Central and some of Eastern African Countries agreed to deep cooperation in all matters relating with development.

SADC formed from experience of political cooperation gained by front line state such as Angola, Botswana, Lesotho, Mozambique, Tanzania, Zambia and Zimbabwe in supporting independence movements. SADC was formed to replace the former Southern African Coordination Conference (SADC) formed 1980 which aimed at helping Southern African countries to become developed and self-reliant and reduces dependence on South African and other strong nations.

SADC come into existence on August 1992 with eleven member countries namely Angola, Botswana, Lesotho, Zambia and united Republic of South African.

Objectives of SADC

1. Promote inclusive and sustainable economic growth to reduce poverty and improve living standards. SADC works to foster balanced development across member states by investing in key sectors such as agriculture, infrastructure, and education, with the goal of uplifting communities and enhancing the quality of life.
2. Establish shared political values, systems, and institutions. The organization encourages democratic governance, respect for human rights, and constitutional rule to ensure political unity and institutional harmony in the region.
3. Maintain peace, security, and political stability within the region. SADC promotes conflict resolution, defense cooperation, and joint security mechanisms to safeguard the region from internal and external threats.
4. Enhance employment creation, sustainable resource use, and environmental conservation. Through regional planning, SADC promotes job creation, responsible exploitation of natural resources, and environmental sustainability to support long-term economic and ecological health.
5. Promote international cooperation and alignment of national and regional policies. The organization seeks to strengthen external partnerships and ensure that national development plans complement regional strategies, leading to integrated and coordinated progress.

The ultimate objective of SADC, the community is therefore to build a regional cooperation in which there will be a high degree of harmonization and rationalism to enable the pooling of resources to achieve collective self-reliance in order to improve the living standard of the people of the region.

Problems facing SADC

However, under new restructuring exercise it has become clear that there are a number of problems that inhibit the effect and performance inefficient of the current structure includes:

1. To achieve genuine and equitable economic growth and development, alleviate poverty, enhance standard of living, and quality of people's life of member states The goal is to ensure that all member countries experience sustainable economic growth and development, with a focus on reducing poverty and improving living conditions for the people of the region, ensuring inclusivity and equity in the process.
2. To evolve common political values, systems, and institutions The aim is to establish a shared set of political ideals and structures across member states, which fosters unity, cooperation, and mutual understanding, making the region stronger politically and institutionally.
3. To promote and defend peace and security in order to maintain political stability within the region SADC seeks to maintain peace and security by addressing conflicts, preventing instability, and promoting diplomatic relations among member states, ensuring that political stability is achieved and maintained.
4. To promote and maximize productive employment and utilization of resources and effective environmental protection This objective focuses on creating job opportunities, ensuring efficient use of natural resources, and implementing measures that protect the environment, promoting sustainable economic development and minimizing harm to ecosystems.
5. To promote international cooperation and achieving a complementary relationship between national and regional strategies, policies, and programs SADC aims to strengthen ties with the global community by fostering international partnerships and ensuring that national and regional plans align effectively, supporting broader regional and global cooperation in achieving development goals.

COMESA is the Southern and Eastern African Common Market formed by countries from Southern and East part of African for the aim of creating free movement of goods services and factors of production from one country to another

COMESA started to work on December 1994 as a replacement of former PTA, COMESA has the following members; Angola, Tanzania, Malawi, Lesotho, Mozambique, Zambia, Mauritius, Kenya, Sudan, Comoros, Ethiopia etc.

The genesis/ origin of COMESA

The history of COMESA started 21^st December 1981 when treaty of establishing preferential trade area (PTA) signed to form an organization of free independent sovereign states which have agreed to cooperate in developing their natural and human resources for the good of all people in member state. Then on 6^th November 1993 member of COMESA signed treaty of establishing COMESA which then start to work 1994.

COMESA's economic history and background. Its main focus on the formation of a large economic and trading unit That is capable of overcoming some of barriers that are faced by the individual member state.

COMESA's current strategy can this be summed up in phase economic prosperity through integration with 21^st members state.

The COMESA states in implementing a free trade area are well on their way to achieving their large of removing all internal and external barriers and trade tariffs, an exercise which is to be completed by the year 2000. Within 4 years after that COMESA will have all third party trade and will have considerably simplified all procedures.

Objectives of COMESA

1. Promote trade liberalization and customs cooperation through a unified computerized customs network. This helps reduce trade barriers, improve efficiency at border points, and allows for faster clearance of goods across member states.
2. Enhance transport and communication infrastructure to facilitate the smooth movement of goods, services, and people. Efficient transportation and communication systems lower logistics costs and connect regional markets, which boosts intra-regional trade.
3. Establish a favorable legal and economic environment to support private sector growth and secure investment. By adopting common legal standards and policies, COMESA creates trust and predictability for investors, while also supporting entrepreneurship and innovation.
4. Harmonize macroeconomic and monetary policies across member states. Coordinated fiscal and monetary strategies help stabilize inflation, manage exchange rates, and promote financial integration among the countries.
5. Boost agricultural productivity and ensure regional food security. Improving farming techniques, investing in agribusiness, and reducing food import dependence strengthen local economies and ensure reliable food supplies.
6. Increase industrial productivity and competitiveness among member countries. Promoting regional value chains, technology transfer, and industrial cooperation helps develop industries that can compete both regionally and globally.
7. Build a strong regional economic foundation to reduce external dependency and support regional self-reliance. By strengthening internal trade, production, and cooperation, COMESA aims to empower member countries economically and politically.

Tanzania's withdrawal from COMESA

Tanzania officially pulled out of COMESA on September 2000, where by Tanzania decision made known to all other members and stakeholder that Tanzania is no longer trade friend on COMESA.

However according to URT Tanzania would continue retaining its position in two region blocks namely PTA bank and reinsurance company (ZEP-RE) simply because this institutions cover even non COMESA member.

Reasons for Tanzania's withdrawal from COMESA

1. Failure of COMESA to achieve meaningful socio-economic integration. Tanzania felt that the bloc did not effectively promote development or strong social and economic ties among member states, which undermined its core purpose.
2. Lack of commitment by member states to implement agreed objectives. Some countries did not actively enforce policies or cooperate fully, which weakened collective efforts and delayed progress.
3. Revenue loss due to continuous tariff reductions. The removal of import duties under COMESA's free trade system reduced customs revenue, which Tanzania depended on for funding public services.
4. Need to protect domestic industries and prevent dumping of cheap imports. The influx of low-quality, cheap goods from other countries threatened local businesses and made it difficult for young industries to grow.
5. Overlapping membership with other regional blocs such as SADC and EAC. Being part of multiple trade groups with conflicting rules and obligations created confusion and administrative challenges for Tanzania.

European economic community/ European union is an economic integration formed by European countries that agreed to make gradual reduction of tariffs and other barriers and adopting common policies of increasing economic, social and political benefits to member countries.

The European union established in 1957 where by six European countries signed Rome treaty, This form European Economic Community (EEC) popularly known as European Common Market, the six countries signed the treaty include France, Italy, Belgium, the federal republic of Germany, Holland and Luxemburg. It actually comes into existence effectively in January 1958

From date of establishment this integration start to expand and cooperation has gradually been expanded, tariffs and other barriers are gradually re-educated eliminated new policies and strategies formulated while it adapted to new challenges according to what of majority Europeans agreed. Currently European Union has fifteen member state namely France, Italy, Holland, Belgium, West German, Luxemburg, England, Greece, Portugal, Spain, Ireland, Denmark, Australia, Sweden, Finland.

Although European Economic Community started as an economic zone/ community of European countries (common markets) it adopt gradual improvement up to European union currently and regarded as a unique organization and more than any other international organization it has many committed member and characterized by democratic decision that help to reach at the highest level of economic integration known as economic union by passing through common market, custom union, and monetary union where by member countries agreed to use European currency as a medium of exchange also they formulated a common agricultural policies (CAP), European development bank and other economic and social development policies

Objectives of the European Union (EU)

1. Promote harmonized policies to improve the living standards of citizens in member states. The EU works to reduce economic disparities, support employment, and invest in public welfare programs to ensure a better quality of life for all Europeans.
2. Enhance coordination and cooperation in trade and other economic sectors. Member countries collaborate on trade, investment, and finance to build a strong, integrated internal market that benefits all economies involved.
3. Boost industrial and agricultural development through unified policy frameworks. The EU introduces common agricultural and industrial policies to increase productivity, ensure food security, and support sustainable development across the region.
4. Enable free movement of labor across member states. Citizens have the right to live and work in any EU country, which promotes employment opportunities and addresses labor shortages within the union.
5. Ensure that national economic policies do not negatively affect other member states. Trade-distorting practices like tariffs, subsidies, and other restrictions are discouraged to protect fair competition and maintain market stability.
6. Accelerate infrastructure development through shared investment in transport and communication networks. The EU focuses on building roads, railways, and inland water transport systems that connect member countries and improve regional mobility.

Tanzania and European Union / common link between European Union developing countries (Lomé Convention)

Tanzania and some of developing countries has a close relation with the European Union through the lame convention.

The Lome convention is series of agreement in trade and economic cooperation between European Union and countries from African pacific and Caribbean (ACPS). Lame convention come into existence in 1975 when EU and 46 ACP'S countries meet and sign first contract of Lome convention affected on 1979 with emphasize on agricultural, energy and other natural resources development. 3^rd agreement was signed on 1^st April 1985 with emphasize on former agreement.

The 4^th lome convention signed in 1990 in Kampala Uganda with emphasize on the increased cooperation between EU and ACP in trade, industries, agricultural.

Also fourth Lome convention emphasis on fighting against HIV/AIDS. However countries are still rigid to allow free trade especially in textiles. Lome convention made ACP countries a right of association status as an indirect member of EU. Through cooperation the ACP states benefited in a field of finance trade and industries.

Basic provisions of the Lomé Convention

1. Promotion of trade cooperation and development between the EU and ACP countries. The agreement aimed to improve access to European markets for African, Caribbean, and Pacific (ACP) countries while supporting their economic growth through development aid and technical assistance.
2. Protection and support of ACP industries. The convention allowed preferential treatment for ACP goods, helping young industries in these countries compete by shielding them from European competition and encouraging industrialization.
3. Stabilization of export earnings through the STABEX system. STABEX was designed to compensate ACP countries when export earnings from agricultural products dropped due to price fluctuations, helping maintain economic stability.
4. Greater control by ACP countries over the allocation of EU development funds. Unlike previous arrangements, the Lomé Convention gave ACP nations more autonomy in planning and implementing projects funded by the European Development Fund, promoting self-direction in development.
5. Freedom for ACP countries to withdraw from the agreement if it no longer meets their interests. The convention respected the sovereignty of ACP states by allowing them to exit voluntarily without penalties if the terms became unfavorable.

Advantages of the Lomé Convention

1. Stabilized export earnings for ACP countries. Through the STABEX system, ACP nations—including Tanzania—could maintain more predictable incomes from raw material exports, protecting them from the harmful effects of global price fluctuations.
2. Increased access to financial aid and development assistance from the European Union. The convention provided grants, low-interest loans, and funding through EU development institutions, helping ACP countries invest in infrastructure, education, and economic growth.
3. Support for independence and resistance to neo-colonialism. The EU committed to respecting the sovereignty of ACP countries and explicitly opposed any form of new colonial control, allowing partnerships to be based on mutual benefit and equality.
4. Industrial development in ACP countries. The Lomé Convention promoted the growth of local industries by providing technical support, imposing protective tariffs on certain EU imports, and encouraging industrial self-reliance in ACP states.

Challenges facing the European Union (EU)

1. Labour shortages due to aging populations and strict population policies. Some EU countries face declining birth rates and an aging workforce, leading to labor deficits in key sectors such as healthcare, manufacturing, and technology.
2. Economic disparities among member states. Unequal levels of development and income between countries like Germany and Greece hinder collective decision-making and weaken the EU's overall strength in global trade negotiations.
3. Policy disagreements among member states. Not all countries fully support or implement common EU policies. For instance, the UK (before Brexit) and Portugal resisted adopting the euro, and others show reluctance in aligning on agricultural or immigration policies.
4. Impact of global economic crises. External shocks such as recessions or inflation spikes strain the financial capacity of weaker member states, making it difficult for the EU to respond uniformly to economic downturns.
5. Overproduction leading to market saturation. The EU's high agricultural and industrial output sometimes exceeds demand, creating surplus goods and making it difficult to find sufficient external markets for exports.
6. Persistent unemployment issues. Despite various job creation programs and economic reforms, many EU countries still struggle with high unemployment rates, especially among youth and in southern Europe.
7. Lack of unity among member countries. Political divisions, nationalism, and differing national interests often obstruct EU-wide policy implementation and weaken the bloc's ability to act collectively.

Note: The regional economic integration of developing countries like EAC, SADC, COMESA and ECOWAS has similar advantages and disadvantages to member countries and they face similar challenges (problems) as discussed in general in an introduction part of this topic.