The doctrine of state sovereignty and its implications for the harmonisation of banking regulation and supervisory frameworks under the East African community common market protocol

Geofray Ngulla

doi:10.51867/AQSSR.2.4.19

Authors

Geofray Ngulla Mbeya University of Science and Technology, Tanzania Author https://orcid.org/0000-0002-1256-3623

DOI:

https://doi.org/10.51867/AQSSR.2.4.19

Keywords:

Banking Industry, East African Community, Harmonisation of Laws, Member States, Sovereignty

Abstract

The treaty establishing the East African Community [EAC] is more ambitious than a mere international agreement, as it focuses on achieving economic integration that will establish an internal market, an economic and monetary union, and ultimately a political federation. The common desire of the Partner States is to yield part of their sovereignty to the EAC as an intergovernmental organisation, but this desire does not oust the jealousy of the Partner States to maintain a considerable degree of sovereignty. This research was guided by intergovernmentalism and neofunctionalism theory. This study employed a qualitative research design using the doctrinal legal research method of data collection to establish the significance of sovereign ceding for regional development. The study, through a documentary review, has revealed that the EAC member states limit their sovereignty to avoid being subjected to EAC jurisdiction regarding the regulation and supervision of the banking industry. The study found that the domestic laws of the Partner States do not adequately reflect the fundamental and operational principles necessary for achieving EAC objectives, as efforts are focused on strengthening the domestic banking business instead of the EAC banking system. This paper suggests that the core to the realisation of EAC objectives through the banking industry is the adherence to the effective political and economic will among the Member States.

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