EAC Tables US$103 Million Budget

The budget speech included updates on road projects linking partner states.

By Liz Bains on
23rd June 2023

The East African Community (EAC) presented a budget of US$103 million for the 2023/4 financial year on 13 June. 

During the budget presentation delivered by Dr Ezéchiel Nibigira, Minister For East African Community Affairs, updates were provided on several road projects linking partner states. 

Regarding the construction of the 400km Kenya-Tanzania road, Nibigira said the Malindi-Lunga Lunga and Tanga-Bagamoyo sections are in progress and at different stages of execution, after securing a €375 million financing package from the African Development Bank (AfDB) and the European Union. There are some remaining sections that still need funding to connect the entire stretch of the coastal corridor.

Regarding the Tanzania-Burundi road, Nibigira said construction of the 260km Kabingo-Kasulu-Manyovu road in Tanzania and the 45km Gitaza-Rumonge road in Burundi is ongoing, after US$322.4 million in grants and loans were secured from the AfDB. The procurement of the first phase of construction of the Mugina-Manyovu One-Stop Border Post (OSBP) has also commenced.

Feasibility studies and detailed designs have been completed for the Uvinza-Kanyani and Rusengo-Gisuru-Bugarama road sections, supported by US$1.7 million in funding from the AfDB.

AfDB funding of US$1.4 million has also been secured for the feasibility and funding options study for the Kenya-Uganda road project, comprising the Kisumu-Kisian-Busia section, Kakira-Malaba and the Busitema Busia Expressway Project.

Nibigira said that during the coming financial year, the EAC Secretariat will continue implementing multinational road projects and will also move forward with the phase two of the OSBP programme including the design, construction and operationalisation of prioritised OSBPs within the region to enhance regional integration and trade facilitation.

Nibigira also gave an update on crossborder energy projects. He said the construction of the 80MW Rusumo hydropower project between Rwanda, Burundi and Tanzania has been completed and wet commissioning undertaken. The implementation of the Rwanda-Burundi power interconnector is underway.

About 43% of the total EAC 2023/4 budget will be sourced from development partners.

Last year, total EAC trade increased by 13.4% to US$74.03 billion, from USD65.3 billion in 2021. 

Intra-EAC trade grew by 11.2% to US$10.9 billion, from US$9.8 billion in 2021. The major intra-EAC traded products were cereals, cement, iron and steel, live animals, petroleum products, sugar, foods and beverages.

Photo: EAC budget presentation (Source: www.eac.int)

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