South Sudan's EAC entry a boon to Kenyan businesses

Africa’s newest nation expected to join bloc tomorrow after meeting terms.

EAC Heads of State from left; President Pierre Nkurunzinza (Burundi), President Jakaya Kikwete (Tanzania), President Uhuru Kenyatta (Kenya), President Yoweri Museveni (Uganda) and President Paul Kagame (Rwanda) during 16th Summit of EAC Heads of State at KICC, Nairobi. PHOTO | FILE 

In Summary

• The signing will set in motion South Sudan’s assimilation into the regional bloc that is currently at a common market stage.
• In line with the treaty, the country will be required to immediately open up its borders for exchange of goods as well as labour and capital.
• The formal entry of South Sudan is a boon to Kenyan firms such as banks, insurers, manufacturers and airlines.

By ALLAN ODHIAMBO
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South Sudan will Thursday officially become the sixth member of the East African Community (EAC) when it signs treaties to join the regional bloc.

President Salva Kiir of South Sudan and his Tanzania counterpart John Magufuli who doubles up as the EAC chairman, are scheduled to sign the accession treaty in Dar es Salaam, weeks after Heads of State from the bloc approved the admission of the country that is just getting out of a civil unrest.

“The summit then designated the chairperson, his excellency President John Pombe Joseph Magufuli of the United Republic of Tanzania, to sign the Treaty of Accession with the Republic of South Sudan,” the EAC secretariat said ahead of the Friday ceremony.

Flags of East African Community member states. South Sudan will on April 14, 2016 officially become the sixth member of the East African Community (EAC) when it signs treaties to join the regional bloc. PHOTO | FILE | NATION MEDIA GROUP

The signing will set in motion South Sudan’s assimilation into the regional bloc that is currently at a common market stage.

In line with the treaty, the country will be required to immediately open up its borders for exchange of goods as well as labour and capital.

South Sudan will also be required to adhere to principles of good governance, democracy, the rule of law, observance of human rights and social justice, besides adopting social and economic policies that are compatible with those of the EAC.

The formal entry of South Sudan is a boon to Kenyan firms such as banks, insurers, manufacturers and airlines, which will easily move critical staff to run their operations in areas where locals lack expertise.

Tens of Kenyan firms are already operating in South Sudan through subsidiaries or cross-border sales networks.

They include UAP Holdings, EABL, KCB, CfC Stanbic Bank, Equity Bank, Co-operative Bank and Kenya Airways.