Region's private sector moot plan to grow intra-EAC trade

Namanga border post. [Peterson Githaiga, Standard]

The Namanga border between Kenya and Tanzania is one of the key areas that a team from the East African Business Council (EABC) and the East African Community (EAC) plans to visit next month.

The visit is aimed at determining the extent of the challenges affecting cross-border trade in the region.

The visit, which will be done by a Technical Working Group already in place, forms part of the intense lobbying by EABC to remove barriers hindering cross-border trade. 

EABC also wants designated checkpoints for goods originating from partner States as the lobby body seeks to boost intra-regional trade to 40 per cent. EABC is the apex umbrella body for the private sector in the EAC.

The Technical Working Group formed between EABC and EAC is in Nairobi for two days to deliberate trade policy issues and proposals which should inform EABC Policy Advocacy Priorities for 2024/25.

Co-chair of TWG and Executive Director EABC John Bosco Kalisa noted that the trade within partner States stands at 15 per cent. 

He noted issues such as the stay of applications by partner States or EAC Common External Tariffs are hindering the growth of trade in the region.

He said there are about 1,000 stay of applications. “These are distorting trade,” he said. 

Lengthy process

Mr Kalisa urged the EAC States to give special consideration to goods originating from within the region at the border points. This is instead of having trucks from the region being subjected to the same lengthy process as those originating from outside of EAC.

“Our borders are becoming a barrier to trade,” he said. “We need to ensure a quick flow of goods. Can we have a specific lane for intra-EAC trade?

 Mr Kalisa said apart from physical goods, the region should maximise the trade of services as well.

Annette Mutaawe Ssemuwemba, co-chair of the Technical Working Group and Deputy Secretary General of Customs, Trade and Monetary Affairs at the EAC Secretariat, said a team will be visiting selected borders to evaluate the extent of challenges affecting cross-border trade. 

Ms Ssemuwemba detailed that apart from the Namanga border, the team will also visit the borders of Uganda and Tanzania, Uganda and South Sudan, Rwanda and Burundi.

The border between Uganda and South Sudan, she said, has challenges due to the latter State being a new member of the EAC.