The East African Community is out of cash and on bended knee after adopting austerity measures in its worst financial squeeze ever.
According to reports, the EAC executive arm in Arusha by end of September had in its bank account only 4.6% of the annual budget contributions.
The EAC has its budget for 2017/18 at $113.8 million with each partner state’s contribution to the EAC’s main budget for the financial year 2017/2018 was $8.4 million. The annual budget is a 12% increment from $101.4 million of the last year.
But despite the huffing that saw they increase their projected expenditure, the East African Community is in dire straits.
Secretary General, Liberat Mfumukeko has been forced to implement biting austerity measures to navigate the financial doldrums the block is facing.
Mfumukeko declared: “At the moment, no activity can be undertaken unless the finance directorate confirms availability of cash.” Mfumukeko said only critical activities can be undertaken until funds allow.