NAIROBI, Kenya – A proposed regional law that will help unlock agricultural productivity is waiting for the signatures of the five Heads of State.

The enactment of the East African Community Cooperatives Bill 2014, which stands to benefit EAC farmers now awaits endorsement by Presidents Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda, Jakaya Kikwete of Tanzania, Rwanda’s Paul Kagame and Pierre Nkurunziza of Burundi.

Agriculture is the dominant sector in the five member states, followed closely by wholesale and retail trade as well as manufacturing, transport and communications.

This piece of legislation which was passed last January may have gone unnoticed by the majority of the 140 million citizens with in the EAC.

It is expected to move the entire region’s economies and people to new levels of social and economic development by unlocking the region’s productive potential.

The EAC Cooperatives Bill is a harmonized legislative framework for the facilitation of East Africa’s cooperative societies. It is viewed by its proponents as a vote of confidence by East Africans and the vehicle that will drive existing economies to new levels of growth and prosperity.

Mike Sebalu, a Member of Parliament in the East African Legislative Assembly (EALA) from Uganda who moved the Bill said the importance of creating a law that responds to the needs of East Africans by its capacity to catalyze economic and social development in the region.

“The spirit of the EAC’s integration agenda is that it is people-centred, private sector led and market-driven process that aligns itself with the potential of cooperative organizations that have hitherto not been exploited for the benefit of the entire region.”

Sebalu describes cooperatives as ‘people-owned’ institutions with the scale and power to transform people into economic powerhouses.

“The synergy between the EAC’s vision and the principles of the region’s co-operative movement was instrumental in stoking up the support from EALA parliamentarians for the creation of a regional law governing cooperatives,” Sebalu said.

According to the Ugandan legislator, cooperatives have the capacity to transform societies and reduce unemployment. “They are an entry point for primary producers to engage in regional trade and maximize the benefits of a common market.”

The parliamentarians had data and research generated by the Eastern Africa Farmers’ Federation (EAFF),a regional farmers’ organization, whose membership consists of national farmer federations, national co-operative organizations and national commodity associations from 10 countries in Eastern Africa.

Within the East African region, cooperatives are at the heart of many economic sectors and are viewed as the ideal model for business development especially in the agriculture sector.

An added attraction is their scalability and capacity to exploit the opportunities generated by the regional integration process within EAC’s common market where goods, services and the key factors of production are free to move within the 5 EAC partner states that comprise Kenya, Uganda, Tanzania, Rwanda and Burundi.

According to EAFF, the number of registered cooperatives in Kenya, Uganda, Tanzania and Rwanda increased by 33% from about 24,000 in 2005 to 33,000 in 2008.

Available statistics show an increased interest and support for cooperatives among East Africa’s citizens. In Rwanda, the growth of cooperatives over this period was four-fold.

In 2013 in Tanzania, Savings and Credit Cooperatives (SACCOs) held savings of up to USD 23 Million, while in 2012 in Kenya, total loans from SACCOs to members amounted to USD 2.6 Billion.

However, the EAC Co-operative Societies Bill 2014 has far reaching implications for the member states and citizens of the EAC. When it becomes law, it will necessitate amendments to the various national laws governing cooperatives to be in harmony with the new regional law.

The intense consultation processes were intended to ensure a sufficient critique of the Bill, the end result being a comprehensive draft that is supported and accepted by a wide array of stakeholders including the heads of state of the 5 partner countries that make up the economic regional bloc.

Source: East African Business Week

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