3. The East African Community: Taking Off?
Author:
International Monetary Fund. African Dept.
Search for other papers by International Monetary Fund. African Dept. in
Current site
Google Scholar Close
Language:
English
Print Publication Date:
03 May 2011
Keywords:
REO; fuel price increase; price; Sub-Saharan Africa; spending; EAC export; EAC member; food price; portfolio inflow; inflation rate; Food prices; Capital inflows; Inflation; Exports; Commodity prices; Global; Africa; Middle East; North Africa; common market; EAC economy; EAC integration; EAC market; EAC growth experience; Export performance; Purchasing power parity; Securities markets; Competition; East Africa

Abstract

The members of the East African Community (EAC) have been among the fastest growing in sub-Saharan Africa (SSA)—and more broadly in the developing world—in recent years. Three countries in the EAC (Rwanda, Tanzania, Uganda) were among the fastest growing economies in the world during 2005-09 (Table 3.1). Part of the recent high growth is “catching up” after years of very poor growth—in the last part of the 20th century the region suffered periods of severe civil strife and bouts of economic instability. Since then, the region has demonstrated commitment to strong policies. Despite the recent advances, however, per capita incomes remain low.

Within Same Series

Other IMF Content

Other Publishers Content

  • Collapse
  • Expand
Cover Regional Economic Outlook, April 2011, Sub-Saharan Africa
Regional Economic Outlook, April 2011, Sub-Saharan Africa
Recovery and New Risks
ISBN:
9781616350611
ISSN:
2071-3207
Publication Date:
03 May 2011
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781616350611.086
Pages:
120

  • Abuka, Charles A., and Kenneth A. Egesa, “An Assessment of Private Sector Credit Evolution in the East African Community: The Candidates for a Region-Wide Reform Strategy for the Financial Sector,” The Bank of Uganda Staff Papers Journal, Vol. 1, No. 2 (Kampala: Bank of Uganda).

    • Search Google Scholar
    • Export Citation

  • Acemoglu, Daron, and Fabrizio Zilibotti, 1997, “Was Prometheus Unbound by Chance? Risk Diversification and Growth,” Journal of Political Economy, 105, pp. 709–51.

    • Search Google Scholar
    • Export Citation

  • Akitoby, Bernardin, and Thomas Stratman, 2009, “The Value of Institutions for Financial Markets: Evidence from Emerging Markets,” Working Paper 09/27 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Andriannaivo, Mihasonirina, and Charles Yartey, 2009, “Understanding Growth of African Financial Markets,” Working Paper 09/182 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Asiedu, Elizabeth, 2002, “On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?” World Development, Vol. 30, No. 1, pp. 107–19.

    • Search Google Scholar
    • Export Citation

  • Bank of France, 2006, “The Rapid Growth of the Government Securities Markets in Sub-Saharan Africa: The Case of WAEMU,” Rapport Zone franc 2006 (Paris: Banque de France).

    • Search Google Scholar
    • Export Citation

  • Barro, Robert J., and Jong-Wha Lee, 2010, “A New Data Set of Educational Attainment in the World, 1950–2010,” NBER Working Paper No. 15902, (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation

  • Berg, Andrew, Jonathan D. Ostry, and Jeromin Zettelmeyer, 2008, “What Makes Growth Sustained,” Working Paper 08/59 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Borota, Teodora, and Ali Kutan, 2008, “Regional Integration and Economic Growth: The Case of European Union,” Journal of International Trade and Diplomacy, Vol. 2, No. 1, pp. 93–113.

    • Search Google Scholar
    • Export Citation

  • Bosworth, Barry P., and Susan M. Collins, 2010, “The Empirics of Growth: An Update,” Brookings Papers on Economic Activity (Washington: Brookings Institution).

    • Search Google Scholar
    • Export Citation

  • Calvo, Guillermo, Leo Leiderman, and Carmen Reinhart, 1996, “Inflows of Capital to Developing Countries in the 1990s,” Journal of Economic Perspectives, Vol. 10, pp. 123–39.

    • Search Google Scholar
    • Export Citation

  • Chinn, Menzie D., and Hiro Ito, 2008, “A New Measure of Financial Openness,” Journal of Comparative Policy Analysis, Vol. 10, No. 3, pp. 309–22.

    • Search Google Scholar
    • Export Citation

  • Collier, Paul, 2007, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It (New York: Oxford University Press).

    • Search Google Scholar
    • Export Citation

  • Combes, Jean-Luis, Tidiane Kinda, and Patrick Lane, 2011, “Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate,” Working Paper 11/9 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Commission on Growth and Development, 2008, “The Growth Report: Strategies for Sustained Growth and Inclusive Development” (Washington: The World Bank).

    • Search Google Scholar
    • Export Citation

  • Coulibaly, Kalamogo, Toussaint Houeninvo, and Gaston H. Hountondji, 2007, “Sources of Growth in Rwanda and Benin Using Four Different Complementary Approaches,” paper presented at the Workshop on Sector-Led Growth in Africa and Implications for Development (Dakar, Senegal: United Nations African Institute for Economic Development and Planning).

    • Search Google Scholar
    • Export Citation

  • Delechat, Corinne, Gustavo Ramirez, Smita Wagh, and John Wakeman-Linn, 2009, “Sub-Saharan Africa’s Integration in the Global Financial Markets,” Working Paper 09/114 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Dell’Ariccia, Giovanni, Julian di Giovanni, André Faria, Ayhan Kose, Paolo Mauro, Jonathan David Ostry, Martin Schindler, and Marco Terrones, 2008, Reaping the Benefits of Financial Globalization, IMF Occasional Paper 264 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Dorrucci, Ettore, Alexis Meyer-Cirkel, and Daniel Santabárbara, 2009, “Domestic Financial Development in Emerging Market Economies—Evidence and Implications,” ECB Occasional Paper Series, No. 102 (London: European Central Bank).

    • Search Google Scholar
    • Export Citation

  • East African Community, “Treaty for the Establishment of the East African Community.” Available via Internet: http://www.eac.int/html.

    • Search Google Scholar
    • Export Citation

  • East African Community, “Protocol on the Establishment of the East African Customs Union.” Available via Internet: http://www.eac.int/customs/html.

    • Search Google Scholar
    • Export Citation

  • Easterly, William, Michael Kremer, Lant Pritchett, and Lawrence H. Summers, 1993, “Good Policy or Good Luck? Country Growth Performance and Temporary Shocks,” NBER Working Paper No. 4474 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation

  • Easterly, William, and Ariell Reshef, 2010, “African Export Success: Surprises, Stylized Facts, and Explanations,” NBER Working Paper No. 16597 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation

  • Evarist, Mugisa, “An Evaluation of the Implementation and Impact of the EAC Customs Union.” Available via Internet: http://www.eac.int/customs/html.

    • Search Google Scholar
    • Export Citation

  • Felices, Guillermo, and Bjorn-Erik Orskaug, 2008, “Estimating the Determinants of Capital Flows to Emerging Market Economies: A Maximum Likelihood Disequilibrium Approach,” Bank of England Working Paper, No. 354 (London: Bank of England).

    • Search Google Scholar
    • Export Citation

  • Gaertner, Matthew, Sarah Sanya, and Masafumi Yabara, 2011, “Assessing Banking Competition within the Eastern African Community,” unpublished manuscript (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Gupta, Sanjeev, Louis Dick-Mireaux, Ritha Khemani, Calvin McDonald, and Marijn Verhoeven, 2000, Social Issues in IMF-Supported Programs, IMF Occasional Paper 191 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Hangi , Monica A., 2010, “The Non-Tariff Barriers in Trading within the East African Community,” Research Paper (Geneva: CUTS Geneva Resource Centre). Available via Internet: http://www.cuts-grc.org/

    • Search Google Scholar
    • Export Citation

  • Hausmann, Ricardo, Jason Hwang, and Dani Rodrik, 2007, “What You Export Matters,” Journal of Economic Growth, Vol. 12, pp. 1–25.

  • Imbs, Jean, and Roman Warziarg, 2003, “Stages of Diversification,” American Economic Review, Vol. 93, No. 1, pp. 63–86.

  • International Monetary Fund, 2008a, World Economic Outlook (Washington, October).

  • International Monetary Fund, 2008b, Regional Economic Outlook: Sub-Saharan Africa (Washington, October).

  • International Monetary Fund, 2010, World Economic Outlook (Washington, October).

  • International Monetary Fund, 2011a, “Revenue Mobilization in Developing Countries.

  • International Monetary Fund, forthcoming, “Recent Experiences in Managing Capital Flows: Cross-Cutting Themes and Proposed Guidelines,” Strategy, Policy, and Review Department (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • International Monetary Fund, 2011c, World Economic Outlook (Washington: April).

  • Jack , William, and Tavneet Suri, 2011, “Mobile Money: The Economics of MPESA,” NBER Working Paper No. 16721 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation

  • Johnson, Simon, Jonathan D. Ostry, and Arvind Subramanian, 2007, “The Prospects for Sustained Growth in Africa: Benchmarking the Constraints,” Working Paper 07/52 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Kehoe, Timothy J., and Kim J. Ruhl, 2002, “How Important Is the New Goods Margin in International Trade?” Staff Report 324 (Minnesota: Federal Reserve Bank of Minnesota).

    • Search Google Scholar
    • Export Citation

  • Kimenyi, Mwangi S., and Njuguna S. Ndung’u, 2009, M-PESA Mobile Banking Statistics, Central Bank of Kenya (Washington: Brookings Institution).

    • Search Google Scholar
    • Export Citation

  • Kitenga, Gabriel, and Hosea Nyangweso, “Accelerating Implementation of Regional Trade and Transport Facilitation Instruments in Africa.” Available via Internet: http://www.eac.int/customs/html.

    • Search Google Scholar
    • Export Citation

  • Milesi-Ferretti, Gian-Maria, and Cedric Tille, forthcoming, “The Great Retrenchment: International Capital Flows during the Global Financial Crisis” (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Moss, Todd, Vijaya Ramachandran, and Scott Standley, 2007, “Why Doesn’t Africa Get More Equity Investment?” Working Paper No. 112 (Washington: Centre for Global Development).

    • Search Google Scholar
    • Export Citation

  • Namu , Wambui, 2009, “Free Movement of Goods, Collection and Accounting of Customs Revenue in the Customs Union,” presentation (Kenya: Kenya Revenue Authority). Available via Internet: http://www.eac.int/customs/html.

    • Search Google Scholar
    • Export Citation

  • Ndulu, Benno J., Stephen A. O’Connell, and Jean-Paul Azam, 2008, The Political Economy of Economic Growth in Africa, 1960–2000 (Cambridge, U.K.: Cambridge University Press).

    • Search Google Scholar
    • Export Citation

  • Odhiambo, Walter, and Gloria Otieno, 2006, “Trade Policy Reforms and Poverty in Kenya: Processes and Outcomes,” Background Paper (Geneva: CUTS Geneva Resource Centre). Available via Internet: http://www.cuts-grc.org/

    • Search Google Scholar
    • Export Citation

  • Opoku-Afari, Maxwell, and Shiv Dixit, forthcoming, “Exchange Rate Assessment in the East African Community,” IMF Working Paper (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Radelet , Steven, 2010, Emerging Africa: How 17 Countries are Leading the Way (Washington: Centre for Global Development).

  • Riascos, Alvaro, and Carlos A. Vegh, 2003, “Procyclical Government Spending in Developing Countries: The Role of Capital Market Imperfections,” unpublished (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Robinson, David, Matthew Gaertner, and Chris Papageorgiou, forthcoming, “Acceleration Growth, Increasing Public Spending, and Maintaining Macroeconomic Stability in Tanzania” (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Romer, Paul M., 1990, “Endogenous Technical Change,” Journal of Political Economy, Vol. 98, No. 5, pp. S71–S102.

  • Schmidhuber, Josef, 2010, “World Agriculture: Towards 2015/2030” (Rome: Food and Agriculture Organization).

  • Selassie, Abebe Aemro, 2008, “Beyond Macroeconomic Stability: The Quest for Industrialization in Uganda,” Working Paper 08/231 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Sy, Amadou N.R., 2007, “Local Currency Debt Markets in the West African Economic and Monetary Union,” IMF Working Paper 07/256 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Thomas , Alun, forthcoming, “Exchange Rate and Foreign Interest Linkages for African Money Targeter,” IMF Working Paper (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation

  • Uganda Bureau of Statistics, 2007, The Informal Cross-Border Trade Survey Report 2006 (Kampala: Uganda Bureau of Statistics).

  • United Nations, 1999, “Foreign Direct Investment in Africa: Performance and Potential,” United Nations Conference on Trade and Development (Geneva: United Nations).

    • Search Google Scholar
    • Export Citation

  • United Nations, 2010, “Assessing Regional Integration in Africa” (Addis Ababa: United Nations Economic Commission for Africa).

  • World Bank, 2007, “South Asia: Growth and Regional Integration” (Washington: The World Bank).

  • World Bank, 2010, “Unfinished Business: Mobilizing New Efforts to Achieve the 2015 Millennium Development Goals” (Washington: The World Bank).

    • Search Google Scholar
    • Export Citation