COMMENTARY: EAA TURNS 60 – CELEBRATING 60 YEARS OF ACCELERATING SUSTAINABLE TRADE AND INVESTMENT IN EAST AFRICA – 1964-2024


The Association would like to thank the membership for their continued support, the diplomatic community and Government Ministries/Departments who give time to the Association’s Local Advisory Committee Members’ (EAA-LAC) periodically.  We have survived 60 years because of you and highly appreciate this!  Indeed, Dr Cullen comments: “The EAA continues to exist, suggesting that businesses perceive it to have been and remain useful”.  Here’s to another 60 years!

 


EAA TURNS 60


“It was felt that there was an immediate need for an Association to look after expatriate business interests in East Africa under the new political set-up, and the purpose of the meeting was to ascertain from those present, and all of whose companies had interests in East Africa, whether or not they supported such a suggestion”.  Extract from the first meeting of the EAA held on 26th February 1964

The EAA held its first meeting on 26th February 1964, Chaired by Sir John Burns of James Finlay & Co. Ltd at the offices of Inchcape & Co Ltd at 40, St. Mary Axe, London, EC3, with 16 people in attendance, and there began the journey that continues today.  While we have not been able to locate the full set of minutes of the meeting, the first page sets out the need for an Association and what its objectives would be – very similar to what the EAA continues to do 60 years later!

The second meeting was held on 16th April 1964 at Winchester House, Old Broad Street, London EC 2, with 47 in attendance and once again Chaired by Sir John Burns.  As with the first meeting, we do not have a full set of minutes but what was clear was that the “formation of an East African Association for pursuing generally the aims and objects set down in the correspondence circulated by Sir John Burns and others under date 3rd / 5th April 1964”.  Unfortunately, we do not have a copy of this letter!  A “provisional steering committee” was established to proceed with registration – although it is unclear who was appointed to sit on the committee.  The Association was called The East Africa and Mauritius Association.

The Association’s Constitution and Rules, 1987 version, states that the objects are: “To provide an organisation to facilitate participation in the economic development of Kenya, Mauritius, Seychelles, Tanzania and Uganda by persons (including firms and companies) from other countries to the mutual economic advantage of the five countries named and of the members of such organisation”.

The same document refers to the Founder Members of the Association as Arbuthnot Latham & Co. Limited, Barclays Bank DCO., The British and Commonwealth Shipping Co. Limited, James Finlay & Co. Limited, Shell International Petroleum Co. Limited, Smith Mackenzie & Co. Limited, The Standard Bank Limited. The United Africa Co. Limited, Wigglesworth & Co. Limited.  At least three of these remain members today, albeit with names and ownership having evolved.

Historical perspective

In a book entitled “The Business of Development in Post-Colonial Africa”, Dr Poppy Cullen, a Professor at Loughborough University, wrote about the (then) East Africa Association in Chapter 3.  Her section was titled: “Adapting to Independence: The East Africa Association, Post-Colonial Business Networks and Economic Development”.  Professor Cullen very aptly sets out the history of the Association we know today.

Highlighting development was, for the EAA and its members, an attempt to appeal to East African Governments in order to gain good relations”.  Dr Poppy Cullen

When the East Africa Association was formed in 1964 it covered Tanganyika (which became Tanzania when it and Zanzibar came together), Kenya, and Uganda – all three British colonies that gained independence in the early Sixties.  The need for expatriate businesses to adapt to a new order was paramount in the formation of the EAA to “promote and protect their interests”.  Key to their existence was the development factor – developing African staff to run these organisations in the future.  As Dr Cullen says “Expatriate companies would also potentially need to maintain a low profile that would not attract criticism”.

But there was an Association, set up in 1958, known as The Tanganyika Association (TA), that was the forerunner to what became the East African Association and subsequently the Eastern Africa Association as we know it today.  TA was the brainchild of the then Governor, Sir Edward Twinning, because of what he saw as “political changes in Tanganyika” and the need to have “representation of overseas business interests”.  Perhaps the key purpose – which continues 60 years later – was the Governor’s comment, quoted by Dr Cullen, “we hope to exert whatever beneficial influence we can in creating confidence in the future of the country among investors”.  While there may have been an element of self-interest on the part of early members, it is clear that both the TA and the EAA sought to promote and encourage investment in the region.

Discussions to widen the scope of the TA to the rest of East Africa began in 1962 led by James Finlay & Co Ltd, Shell International Petroleum Co., Barclays DCO, the United Africa Company, and the Inchcape Group.  Two of these remain members today and at least two were members until very recently.  Indeed, if one were to look at a list of the original members of the Association, at least 7 remain members today albeit with a different name – which is a feat itself!  Indeed, the big question at the time was how to fund the organisation, which as it is today, relies on subscriptions from members.  Some things don’t change even after 60 years!

Even back in 1964, Dr Cullen notes: “The EAA offered its members a forum for sharing and reporting information”.  Doesn’t this sound familiar?  As we do today with our newsletters, the reports issued with information were for members only.  Perhaps where we have diverted over the years is that in the past reports were not labelled as originating from the EAA as the source to protect against the eventuality of “if a copy were to go astray”.  The implication being that the early reports were open and frank and told it as it is.

While the EAA may have started as an association for British business interests, by December 1965, members from America, Canada and six European countries were enrolled according to Dr Cullen.  Today, the Association boasts members from 26 different countries.

Where are we now?

At the end of April 2024, the EAA had 222 members – 196 being corporate and 26 individuals.  Individual membership is granted to those who have served the Association in an ex-officio capacity over the years.  Almost 84% of the membership is based in the region covered by the Association with the balance largely based in the UK and Europe.

The Association continues to fulfil the objectives laid out in the first meeting and the Constitution and Rules referred to above.  The region has expanded to include 10 countries (Mauritius and Seychelles are no longer included) – an analysis of which is included in the eight newsletter editions issued during the year.  In the region, 8 member meetings are held annually in Nairobi with a virtual link provided for those unable to attend and to members in the region, Uganda, Tanzania, Rwanda, and Ethiopia.  The meetings provide information on topical issues and attendance is in the region of 70 to 90 members.  The UK holds between three and four member events annually with the most recent addition being the Annual Lecture.  We continue to organise Trade and Investment Missions in the region.

The Association continues to be funded through member subscriptions to meet our costs and while the last few years with the pandemic have been difficult, we firmly believe that another 60 years are possible!  Support from the membership in continuing to be members of the EAA, and indeed, introducing new members is of course critical.

We also enjoy support from the diplomatic community and Government departments in terms of exchange of information which has been invaluable and look forward to continued interactions in the future.

Celebrations

A cocktail reception, which was largely sponsored by members, in Nairobi saw 97 people attend – a testament to membership support of the Association.  In London, a dinner was held with in excess of 100 people attending.

Thank you

The Association would like to thank the membership for their continued support, the diplomatic community and Government Ministries/Departments who give time to the Association’s Local Advisory Committee Members’ (EAA-LAC) periodically.  We have survived 60 years because of you and highly appreciate this!  Indeed, Dr Cullen comments: “The EAA continues to exist, suggesting that businesses perceive it to have been and remain useful”.  Here’s to another 60 years.

This is a commentary and comments are welcome by email to info@eaa.co.ke