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A F R I C A

5.4 Agriculture Sector The Government of India took note of the low level of agricultural productivity in the EAC countries and the frequent droughts that have caused serious food shortages in the region. The Indian Government expressed willingness to support EAC towards the improvement of agricultural productivities and value addition. In this regard, the Indian Government: a) Undertook to support the transformation and revamping of the Tropical Pesticide Research Institute (TPRI) based in Arusha to not only undertake research in pestcides but also give it an expanded mandate in agricultural research; b) Will interest Indian farmers through their State Farmers Associations and State Governments to invest in farming ventures in East Africa; and c) Will support an exchange programme for agricultural technical experts from both sides to develop the necessary skills to facilitate the transformation of EAC agriculture. 5.5 Capacity Building and Application of Science and Technology The parties noted that there was much scope for cooperation in this sector in view of the advances made by India in the application of science based information and management systems. India expressed its readiness to support the establishment of the EAC Science and Technology Council (STC) and Institute to assist the region intensify and widen the application of science and technology in the production processes and better decision making. The Indian Government will support a technical mission to EAC to develop a detailed support proposal for the EAC Science and Technology Council and Institute by end of May 2007. In addition, Indian Government offered 10 Scholarships to the East African Community Secretariat to be utilised in the development of prioritised competencies in the region especially in IT based and technology fields. 5.6 Capital Markets The Indian Government noted the strong desire of the EAC to develop strong capital markets as a basis for mobilising capital in the region following the Indian model. India expressed strong desire to support EAC in these fields: a) Establishment of the institutional framework and necessary infrastructure for the proposed EAC Securities Markets Institute and assist in the review of the legal and regulatory regimes for smooth capital markets operations in the region; b) Assist training of trainers in capital markets operations coupled with regular personnel exchanges to enrich the experiences in the stock market operations in EAC and India; and c) Exchange of technical teams to fine tune the proposal for support in the strengthening of the capital markets operations in the region by June 2007. 5.7 Tourism The parties noted the great tourism potential existing in the two sides. It was noted that India had successfully marketed

Q U A R T E R L Y

its tourism potential through the "Incredible India" brand. India indicated her willingness to support EAC in developing the region's tourism potential including the operationalisation of the EAC Tourism and Wildlife Conservation Agency and exchange of personnel in the sector. It was agreed that technical teams will be exchanged to work out the details of the needed support by July/August 2007. 5.8 East African Development Bank (EADB) The parties noted the critical role that a strengthened EADB would play in mobilising development resources particularly for long term infrastructure and other activities. Currently, EADB enjoys a small line of Credit from the Exim Bank of India to the tune of US$ 5 million. It was agreed that Exim Bank and EADB engage in negotiations on the issue of lines of credit. It was further agreed that Industrial Development Bank of India (IDBI) also examines ways and means of extending funds for on-lending by EADB. On its part, the Indian Government will explore the possibility of becoming a shareholder of EADB. 5.9 Confederation of Indian Industry (CII) Conclaves On the request by EAC to host a CII- EAC Conclave on the sideline of the Commonwealth Heads of States and Government Summit in Kampala, Uganda in November 2007, the Indian Government advised that the next Conclave was planned to be held in Kampala from 26th to 29th of June 2007 and notice to that effect had already been released. 5.10 Proposed Trade and Investment Framework Agreement between EAC and India On the proposal by EAC to conclude a Trade and Investment Framework Agreement between the parties, the Indian Government welcomed the idea. It was, therefore, agreed that: a) India commences a desk study to be finalised within a month; b) The results of the desk study are shared with EAC by mid April 2007; c) A joint technical team to discuss a detailed feasibility draft Agreement starts work by end of April 2007; d) Joint negotiations commence immediately after the joint technical team finalises its work (proposed timeframe end of June 2007). 5.11 Planning/Technical Mission In view of the urgent need to concretise the proposals for support, India agreed with the proposal by EAC that the latter hosts a joint planning/technical mission to work out detailed documentation for projects and programmes. Further, that following the planning/technical mission's report, a high level meeting between the Indian Government and EAC be held in Arusha to consider the concrete projects requiring Indian Government support. Anand Sharma John Arap Koech Minister of State Chairperson, EAC Council Ministry of External Affairs of Ministers

February-April 2007

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AQ-Feb-2007-Apr-2007  

February 2007-April 2007

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