The East African Community (EAC) unveiled its budget for the upcoming fiscal year, with a significant increase of 8.7% to $112.98 million. However, this growth comes with a challenge – a decrease in contributions from member states.
While the total budget reflects economic optimism, with projections of continued growth across the region, member states will shoulder a larger portion of the financial burden. Their contributions have been revised downward to $67.78 million, compared to $73 million previously. This shift means internal revenue generation will also need to improve to cover the remaining 60%.
Despite the funding gap, the EAC remains committed to regional integration efforts. The budget prioritizes implementing communication strategies and celebrating the bloc’s 25th anniversary. Additionally, the EAC plans to deploy election observer missions to member states throughout the year.
The success of these initiatives hinges on timely financial contributions from both member states and development partners. Outstanding arrears exceeding $35 million from the past year have reportedly hampered programs within the EAC secretariat.
While intra-EAC trade flourished in the past year, reaching $12.1 billion, a 13.1% increase, a sustainable funding strategy is crucial for the EAC’s continued progress.
