East African Community

East African Community, (EAC) regional, intergovernmental organization that coordinates some of the economic affairs and trade activities of the countries of Burundi, Kenya, Rwanda, Tanzania, and Uganda. It also seeks to promote cooperation and integration among the member nations in a wide variety of policy areas, including science and technology, environmental and natural resources management, tourism and wildlife management, and health, social, and cultural activities.

The East African Community was initially established by the governments of Kenya, Tanzania, and Uganda in 1967. At that time community functions included maintaining an East African common market, which entailed a free trade area and customs union embracing the three members. The community collected customs, excise, and income taxes. Agencies common to the three member nations operated railroads, harbors, civil aviation, postal services, and telecommunications. Other responsibilities of the East African Community included meteorological services, statistics compilation, and a literature bureau. The three governments also established an East African Development Bank, which gave priority to industrial development in Uganda and Tanzania.

Political and ideological differences impeded the work of the East African Community from its inception. The government of Tanzania was strongly committed to central planning and emphasized the importance of agriculture, while that of Kenya favored a market-oriented economy and placed more emphasis on industry. After Idi Amin became dictator of Uganda in 1971, strains increased within the East African Community. The breakdown of Uganda’s economy under Amin made economic cooperation almost impossible. By 1977 the EAC had ceased to function.

However, following Amin’s ouster in 1979, the three countries agreed in 1984 to explore future possibilities for cooperation. Discussions led to the signing of a treaty in 1999 to reestablish the East African Community, which was formally reconstituted in 2000 when the treaty went into force. In January 2005 the EAC established a customs union that eliminated duties on goods traded within the EAC. Burundi and Rwanda joined the East African Community in 2007 and also became part of the customs union. Economic observers have noted that the customs union has had a significant effect since it has allowed the member nations to enjoy increased revenues.