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History made as DRC is admitted to EAC. But what does it mean?

The Brief by The Brief
29th March 2022
in Business, Foreign
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History made as DRC is admitted to EAC. But what does it mean?
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DRC President Felix Tshisekedi during the 19th Extra-Ordinary Head of States Summit on March 29, 2022/ TWITTER

History was on Tuesday, March 29, made as East African Community partner states welcomed DRC as the newest and seventh member.

DRC was admitted to the economic bloc during the 19th Extra-ordinary Head of States Summit held virtually.

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The Central African country made the application to join the community in 2019, and negotiations have been ongoing until February this year, when the EAC Council of Ministers approved the application.

The procedure for admission entailed a Verification Exercise; negotiations; admission; and deposition of the instrument of acceptance of the terms of admission by the DRC within six months of her admission to the Community.

The country’s Deputy Prime Minister and Minister for Foreign Affairs, Christophe Lutundula Apala Pen’Apala, said in January this year that DRC was looking forward to increased trade and investment, and strengthened relations with the EAC.

Pen’Apala said DRC relations with EAC Partner States had largely been at a bilateral level and that it was keen on cooperating with the EAC for maximum exploitation of both natural and human resources in the region.

EAC Secretary general Peter Mathuki said upon ascension to the Treaty establishing the EAC and depositing of the instrument of acceptance with the Secretary General, DRC will join EAC’s cooperation in all the sectors, programmes and activities.

The summit designated President Uhuru Kenyatta, the chairperson of the summit, to sign the treaty of accession of the DRC to the EAC by April 14, 2022.

Thereafter, the communiqué indicated, DRC will deposit the instruments of ratification with the secretary general before September 29, 2022.

The summit directed the council to develop a roadmap for DRC’s integration into the community and report progress to the next summit.

“The EAC now spans from the Indian Ocean to the Atlantic Ocean. making the region competitive and easy to access the larger African Continental Free Trade Area,” Mathuki said.

Speaking during the Secretary General’s First 100 Days Forum in August last year, Mathuki said with a population close to 180 million people, DRC brings to the community more than 80 million.

“So, with its admission, the economic bloc will have a total population of close to 300 million. That is a huge market for us and will make EAC competitive in the world. We are going to see people moving from DRC to the region and vice versa. The entry of DRC will be a game-changer in as far as intra-regional trade in East Africa is concerned,” Mathuki said at the time.

Upon the admission, DRC President Felix Tshisekedi proposed the establishment of new EAC agency in charge of environment, natural resources, mines and energy with headquarters in Kinshasa.

DRC has the world’s second largest natural ecosystem in the Congo Forest and is keen on preserving it from wanton destruction to mitigate the effects of climate change.

Regional presidents welcomed DRC to the fold, with Kenyatta saying the admission marks a momentous occasion in the region’s integration history.

“Today as chairman of the EAC, I proudly and warmly welcome our brothers and sisters from the DRC to the EAC and look forward to joining hands in strengthening our community together. Working together, we have more to gain than when we are separate,” Uhuru declared.

Rwanda President Paul Kagame said his country supports the admission of the DRC into the region, and stands ready to play its part in supporting its integration into the community.

Neighbouring Burundi said it openly welcomes the community.

“Widening and deepening economic, political, social and cultural integration will improve the quality of lives and prosperity of the people of East Africa,” Burundi Vice President Prosper Bazombanza said.

“The United Republic of Tanzania heartily welcomes DRC into the bloc. Kazi Indelee (let the work continue),” Tanzania President Samia Suluhu Hassan said.

President Yoweri Museveni of Uganda said DRC’s admission into the EAC is a big event as it signals prosperity to the citizens.

“As leaders let’s continually strive to ensure peace, security and stability is maintained in the region,” Museveni said.

South Sudan Minister of Presidential Affairs Barnaba Marial, who represented President Salava Kiir, said the admission strengthens the bloc.

WHAT DOES IT MEAN?

In 2018, the value of imported goods into the DRC stood at $7.4 billion. From this, the value of EAC exports to the DRC stood at $855.4 million only, which represents just 11.5 per cent of DRC imports.

Consumables imports is about 31 per cent say from China, and South Africa, which is about 16 per cent, while Zambia takes 15 per cent.

With DRC coming on board, the 11 per cent is likely to multiply by four times to up to 50 per cent, according to Mathuki.

Its huge population will also offer a huge market for EAC partner states, although there are fears some domestic companies and industries might suffer from this.

DRC shares borders with five EAC partner states – Tanzania, Burundi, Rwanda, Uganda and South Sudan – and this will ease in cross border trade and movement of people.

There are, however, concerns that the membership would pose challenges because DRC already belongs to Comesa and SADC, even as Pen’Apala down plays the matter.

Tags: DRCDRC admitted to EACEACUhuru Kenyatta
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