Regional workshop for Data Collection and Validation Mechanism Abidjan, Cote d’Ivoire

1. EAST AFRICAN COMMUNITYData Collection and Harmonization Practices and Experiences in East African Community (EAC) – Overview of Recent Activities Regional workshop for Data Collection and Validation Mechanism Abidjan, Cote d’Ivoire 05 – 08 December, 2011

2. Outline • Background • Demand for Regional Statistics • EAC Statistics Program • Priority Macroeconomic Statistics under Harmonization • Other Critical Macro Areas • Other Areas/Activities Under Harmonization Programs • Data collection and Coordination Mechanisms • Challenges

3. 1. Background • The East African Community (EAC) is the regional intergovernmental organisation of the Republics of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi with its headquarters in Arusha, Tanzania. • The Treaty for Establishment of the East African Community was signed in 1999 and entered into force in 2000 following its ratification by the original three Partner States – Kenya, Uganda and Tanzania. • The Republic of Rwanda and the Republic of Burundi acceded to the EAC Treaty became full Members of the Community with effect from 1 July 2007.

4. 1. Background (Cont’d) • Mission and Vision • The Vision of EAC is a prosperous, competitive, secure, stable and politically united East Africa; • Mission is to widen and deepen Economic, Political, Social and Culture integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments.

5. 1. Background (Cont’d) • Treaty for the Establishment of the East African Community (EAC), provides that “the Partner States undertake to establish among themselves and in accordance with the provisions of this Treaty, a Customs Union, a Common Market, subsequently a Monetary Union and ultimately a Political Federation”

6. 1. Background (Cont’d) • A fully fledged Customs Union was achieved in January 2010; • The Common Market is under implementation since July 2010; • Negotiations on the Protocol for the establishment of the East African Monetary Union are underway and; • Faster strides towards a Political Federation are being fast made

7. 2. Demand for Regional Statistics • For purposes of: • Coordination of macroeconomic policies • Policy analysis, evaluation and impact assessment • Monitoring and surveillance of the convergence • Scope: • All sectors • Current focus (emphasis) • High frequency data

8. 2. Demand for Regional Statistics (Cont’d) • Member states to provide all data and reports required for the implementation and monitoring of the convergence programme. • These statistics, of necessity, need to be comparable (in terms of concepts, definitions and collection methodologies)

9. 2. Demand for Regional Statistics (Cont’d) However, • Divergences in methods of compilation and computation of indices exist • Harmonization of different subject areas is in progress, with the process being executed in phases • Hence the EAC statistics harmonization programmes

10. 3. EAC Statistics Programs • Focus of EAC Statistics program • Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies, and • Harmonization of compilation practices for the different priority statistical indicators. • Regional Statistics Development Strategy (RSDS) under development • Aims at making a coherent roadmap on the harmonization programs • To be anchored on the PS’s NSDS

11. 3.1. Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies • The secretariat is ensuring availability of updated regional statistics through four programs • The focus is on official statistics ONLY

12. 3.1. Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies 3.1.1 EAC Facts and Figures Report • Is an annual publication of the EAC Secretariat • It presents socio economic highlights of the EAC region for a five year period • Available on the Statistics portal in the EAC website (http:/www.eac.int/statistics) • Submission done on standardized excel templates • Working group collates and prepares the Facts and Figures report

13. 3.1. Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies 3.1.2 EAC Statistics Database • This is a web based database planned to be launched in early 2012 • Will provide a set of about six hundred socio- economic statistics indicators in the region • Has validation mechanism at national and regional level • Data has been uploaded for the period 2005 – 2010 • However, gaps still exist for some of the indicators • Temporary hosted on the site (http:/www.eacstats.com) • Will be available on the Statistics portal once launched

14. 3.1. Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies 3.1.3 EAC Trade Statistics Database • This is a web based database planned to be commissioned in early 2012 • Data has been uploaded for the period 2008 – September 2011 (at the commodity level – 8 digit) • Uploading done at the national level • designed to contain three distinct modules open to all users namely Requirements & Taxes, Import Tariffs and Trade Statistics. Only data for the last two modules have been inputted • Available on (http://tradehelpdesk.eac.int), with a link from the main EAC website

15. 3.1. Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies 3.1.4 Monetary and Financial Statistics • The Secretariat with the Partner States harmonized a set of regional indicators on MFS and FSI that were considered urgent in 2009 • These indicators are regularly being compiled and posted on the statistics portal on the EAC web site. • Monthly/quarterly data for them is available for the period January 2000 – September 2011 • Submission done on standardized excel templates

16. 3.1. Maintaining an updated statistics database covering all the socio-economic areas of the region’s economies 3.1.5 EAC Trade Report • The EAC Trade report presents facts and an interpretation of trade flow in the region • The 2009 and 2010 editions of the EAC Trade Report are at the editorial stage.

17. 3.2. Harmonization program -overall objective • Overall objective is to help countries adopt international standards, codes and best practices in the production and dissemination of macroeconomic statistics • Harmonization programs entails: • Reviews of the concepts, definitions, classification and compilation methodologies in PS’s • Identifying and describing differences; enhancing convergence to narrow differences; and, when convergence cannot be achieved, providing the rationale and developing bridges to reconcile differences

18. 3.2.1. Specific objectives of the Macroeconomic Statistics Harmonization • Build capacities of targeted agencies within NSS in compilation of regionally harmonized Macroeconomic Statistics and; • Create a mechanism for generation of relevant regional aggregates using harmonized national datasets. • Provide a platform for exchange of experiences and sharing the regional capacities among Partner States; and • Develop a framework for ensuring compliance to regionally harmonized compilation practices.

19. 4. Priority Macroeconomic Statistics under Harmonization 4.1. Foreign Direct Investment Statistics • Harmonizing of FDI statistics is being implemented through the joint collaboration of the EAC – COMESA and UNCTAD • Anchored on the tripartite arrangement of the EAC- COMESA- SADC • Key aspects include harmonisation of survey instruments, common analysis software and regular surveys

20. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.2. Price Statistics • Work has began in developing Harmonized Consumer Price Index (HCPI) compilation practices • Done through the EAC-COMESA-SADC tripartite arrangement with the support of the AfDB • Expectation was for the PS’s to be able to generate the EAC HCPI by end of FY2010/11 • Regional Workshop to fast track the program planned for early 2012

21. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.3. Trade Statistics Hinges on harmonization and dissemination of trade statistics and include: • Development and maintenance of a web trade statistics database (a web based trade statistics database has been developed and is due for launching in November 2011) • Harmonization of compilation practices • Capacity building of relevant agencies in the Partner States and EAC Secretariat • Reconciliation of trade data among the EAC Partner States

22. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.4. Balance of Payment Statements Statistics • Was expected to start in March 2011 through a short term expert • Urgent need to be fast tracked in order to identify data requirements for the union level early enough

23. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.5. Monetary and Financial Statistics • A major pre-requisite statistical subject area for negotiations and implementation of EAMU • Harmonisation is being undertaken by EAC in partnership with the IMF under the Monetary Module II of the Enhanced Data Dissemination Initiative (EDDI) for Africa Project

24. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.5. Government Finance Statistics • EAC expects to undertake a program on GFS with support from the World Bank • A short term expert has been engaged • Regional Workshop conducted in May, 2011 • Developed a roadmap for harmonization of GFS in the region • Developed a reporting template for GFS in the region

25. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.5. Government Finance Statistics Cont’d • Short/medium term • Preparation of institutional tables (check list) identifying institutions to be covered in each Partner State for the following levels of Governments; • Budgetary central government • Extra-budgetary central government • Social security funds • State/ Regional governments • Local governments

26. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.5. Government Finance Statistics Cont’d • Short/medium term • Identification and selection of data sources; • Review of the country chart of accounts and preparation of bridge tables for the institutions to be covered; • Align the classification of available source data with GFSM 2001 framework; • Compilation of data in line with GFSM 2001 framework; • Consolidation of the general government data.

27. 4. Priority Macroeconomic Statistics under Harmonization (Cont’d) 4.5. Government Finance Statistics Cont’d • Medium/ long term Issues • Common budget cycle by Partner States • Adoption of IFMIS system in public financial management and rolling it out to the entire General Government; • Adoption of accrual basis of recording; • Enhance the Government balance sheet data.

28. 5. Other Critical Macro Areas National Accounts • The presentation, contents and methodologies used in the compilation of national accounts are not harmonized • Most Partner States partially implementing the System of national accounts 1993. • A program on harmonization in this area has been proposed • Current initiatives going on under the IMF’s regional program by East Afritac

29. 6. Other Areas/Activities Under Harmonization Programs • Agricultural Statistics; • ICT Statistics; • Demographic and Social Statistics;

30. 7. Data collection and Coordination Mechanisms • The Summit • Council of Ministers • Co-ordination Committee

31. 7. Data collection and Coordination Mechanisms (Cont’d) Sectoral Committee on Statistics • Responsible for the preparation of a comprehensive implementation programme and the setting out of priorities with respect statistics sector; • Monitors and keeps under constant review the implementation of the programmes of the Community in the sector; • Ordinary meetings are held once a year • Extra ordinary meetings are held on demand

32. 7. Data collection and Coordination Mechanisms (Cont’d) • Focal points (institutionalized) • Focal point on Statistics matters at the ministries responsible for EAC affairs • National coordinator from the NSOs • National /secretary from the NSO • No standing honorarium is paid to the focal points. • Working Group meetings/Workshops • Missions

33. 8. Challenges and other important issues • Challenges • Lean statistics staff at the EAC HQ • Scarce financial resources causing delays in implementation of programmes • Different statistical capacities at the NSOs/National level • Legal mandate • Statistics department expansion proposal • Regional Statistics Development Strategy

34. END OF PRESENTATION • THANK YOU FOR YOUR KIND ATTENTION