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The Partner States are currently preparing an EAC investment model that highlights, among other things, the need for a common ground for investor negotiations.
Speaking at a regional workshop of civil society organizations in Dar es Salaam, SEATINI Jane Nalunga, Uganda's director, said that a model of investment negotiation is important to prevent EAC member states from competing with each other.
"We also recommend a more people-centered approach."
The workshop, titled "Understanding the Changing Landscape of Global Investment Policy and its Implications for the Community". East Africa, "was organized by SEATINI Uganda in partnership with HakiMadini, the Diakonia Africa Economic Justice Program, and Both Ends
some EAC countries give excessive incentives to investors, including tax holidays too long, which creates unnecessary competition within the bloc
She recommended broader stakeholder participation in the process of developing the EAC investment model, Nalunga emphasized. Foreign direct investment (FDI) is the cornerstone of EAC's regional development in that it provides fresh capital, technology, a competitive spirit and
John Bosco Kanyangoga, a regional and international business consultant based in Kigali, Rwanda, criticized the EAC governments for failing to negotiate better deals with foreign investors.
"There is no win-win situation signed … we always settle for less," Kanyangoga said, noting that the lack of adequate control and monitoring systems often leads to transfer most of the funds to Europe
Nathan Irumba, executive director of SEATINI Uganda. that investors are provided are not beneficial for Africa.
Even the public-private partnerships (PPPs) that have been adopted have proven to be less than beneficial since in most cases the process and mechanisms for negotiating and signing PPP contracts remain largely unknown to the general public, he said. Ambassador Irumba. should review all existing bilateral investment treaties (BITs) to unmask the hidden truth about many of these investments, since some of them do not yield the expected cash, "he added.
Burghard Ilge of BOTH ENDS in the Netherlands An examination of the current investment treaties would give beneficiary countries the opportunity to modify some of the aspects that most favor investors.
For example, according to Mr. Ilge It is unfair for investors to bring disputes directly to the international arbitration tribunal that communities affected by rights violations and forced evictions in investment venues can not support.
Amani Mhinda said the workshop aims to discuss the dynamics of investment policy at the regional, continental and global levels.
He stated that policymakers were committed to ensure that the design, negotiation and implementation of investment agreements A 2016 EAC trade report indicates that FDI has created about 2.48 million jobs in areas such as construction, manufacturing, real estate, wholesale, business services, retail and tourism.
In addition to creating jobs and encouraging innovation, investments also boost trade and industrialization, and contribute to greater tax revenue generation, according to the report.
FDI is also important for skills development and technology transfer. a key role in the growth of new sectors that require large capital investments, such as the mining sector.
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