President Museveni has renewed his call for East African countries to pursue political integration, arguing that deeper unity is necessary for member states to share jobs and economic benefits created by major investments across the region.
Museveni made the remarks on Wednesday during the groundbreaking ceremony for the multi-billion-dollar Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone in Mokowe, Lamu County, Kenya.
He used the planned refinery to illustrate what he considers the limitations created by national borders, particularly when raw materials from one country are processed in another.
Museveni said petroleum produced in one part of Nigeria can be transported to another part of the country for processing without creating the same tensions that could arise if the areas were in separate countries, because workers can move freely and tax revenues are shared within the same national system.
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He drew a similar comparison with Uganda’s iron ore, arguing that exporting the raw material to Kenya for processing would leave Kenya with many of the jobs and much of the value created through processing, while Uganda would mainly earn from the raw material.
“So please, this is where now you really need to wake up. We have been telling you that in order to maximise our future, to guarantee our future, we need to do political integration where possible,” Museveni said.
He said political integration should go alongside economic projects that enable East African countries to benefit from investments located in neighbouring states.
Museveni cited a proposal for East African countries to acquire shares in the Lamu refinery as one way of allowing member states to earn profits from the project. However, he said shareholding alone would not resolve the question of employment.
“The idea of the East African countries buying shares in the refinery here. That’s a smart one. What it means, although the refinery is here, they will also get profit. But it does not answer the issue of jobs,” he said.
His remarks come against the backdrop of the East African Community’s long-running push towards political integration. The regional bloc has progressed through the Customs Union, Common Market and steps towards a Monetary Union, while political federation remains unfinished.
The idea of a political federation dates back to the first generation of East African leaders, including Julius Nyerere of Tanzania, Jomo Kenyatta of Kenya and Milton Obote of Uganda, who advocated closer regional unity.
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The original East African Community collapsed in 1977 before being revived in 2000. In 2017, EAC leaders agreed to pursue a Political Confederation as a transitional arrangement towards a federation.
Progress has since faced challenges including sovereignty concerns, political differences, economic disparities and differences in governance systems among member states.
Museveni also used the refinery project to praise Nigerian businessman Aliko Dangote for investing in production and moving from cement manufacturing into petroleum refining.
He described Dangote’s evolution from importing cement to producing it locally and later investing in refining as an example of African capital being directed towards industrial production.
The Lamu refinery is planned to process 700,000 barrels of crude oil per day and form part of an industrial complex that will include a 1,000-megawatt power plant, plastics manufacturing, fertiliser and chemical production.