This archive report was first published on 20 August 2020.
East Africa's economic woes have been exacerbated by the COVID-19 pandemic, but there's a glimmer of hope in the form of a creative solution to the unpaid subscriptions owed to the East African Community (EAC) by Burundi and South Sudan.
According to The EastAfrican, South Sudan owes more than $24 million, while Burundi has paid a portion of its debt but still owes $6.5 million. In a bid to collect these debts, the EAC has recommended sanctions against the two countries.
But what if instead of imposing sanctions, the EAC could find a way to collect these debts in a more... unconventional manner? After all, as the saying goes, 'necessity is the mother of invention.'
Take South Sudan, for instance. With mineral fuels, including oil, accounting for $1.5 billion of its exports in 2019, it's not a stretch to imagine the EAC accepting a few barrels of oil as payment for its debt. And if that's not enough, South Sudan could also sell its timber, which could be auctioned off at the border with Kenya or Uganda, generating much-needed revenue for the EAC.
Burundi, on the other hand, has a diverse range of exports, including gems, precious metals, coffee, tea, and even cattle. Why not propose a bartering system, where the EAC accepts these goods in exchange for settling Burundi's debt?
It's a long shot, perhaps, but in these uncertain times, it's worth exploring every possible solution to the EAC's financial woes. After all, as the old adage goes, 'when life gives you lemons, make lemonade.'
