EAST AFRICA: THE East African Business Council (EABC) and RSM Eastern Africa project a 5.7 per cent growth for East Africa’s economy in 2025, up from 5.1 per cent the previous year, highlighting the region’s resilience and optimism.
This was revealed at the CEO Roundtable on East African Integration and Economic Outlook 2025, organised by the EABC in partnership with KEPSA, KAM and RSM Eastern Africa.
The event gathered 50 business leaders to discuss trade and investment challenges within the East African Community (EAC) and beyond.
Speaking at the event, RSM Eastern Africa Executive Chairman, Mr Ashif Kassam, highlighted that East Africa’s economic growth has been fueled by public infrastructure investments. He urged governments to create the right incentives and an enabling environment for the private sector to drive further growth.
Mr Kassam outlined key priorities for the private sector to boost intra-EAC trade and investment, including addressing double taxation, rules of origin and excise duties.
He cautioned against protectionist measures, such as higher duties and excise taxes, which create tax disparities across the region.
He further emphasised that companies must be competitive locally and regionally to succeed globally.
Additionally, he stressed the importance of East African CEOs prioritising ESG (Environmental, Social and Governance) principles and succession planning to strengthen sustainability and competitiveness.
EABC Chairman John Lual Akol highlighted that the EAC is the most integrated economic bloc among Africa’s eight Regional Economic Communities, according to the Africa Regional Integration Index (ARII).
He urged governments to eliminate persistent Non-Tariff Barriers (NTBs), ensure uniform application of the EAC Common External Tariff (CET), operationalise the EAC Trade Remedies Committee, harmonise domestic taxes and remove discriminatory taxes.
He also called for the liberalisation of air transport services, completion of trade in services liberalisation and full implementation of EAC commitments by new Partner States.
The EABC Executive Director Mr Adrian Njau noted that intra-EAC exports have grown from 17 per cent of total exports in 2017 to 21 per cent in 2023, reaching 6.3 billion US dollars but the share of intra-EAC trade remains stagnant at 15 per cent.
He urged EAC Partner States to fully implement Common Market and Customs Union commitments.
Kenya Association of Manufacturers (KAM) Head of Policy, Regulatory Advocacy and Legal Operations Ms Miriam Bomett called for the implementation of Common External Tariff, reduction of manufacturing costs and regulatory reforms to enhance cross-border trade.
Other key issues raised by business leaders included high business costs, particularly electricity and transport, climate change challenges for accessing the EU market, intellectual property rights for scaling digital tech businesses and consolidating laws and enforcement agencies to reduce regulatory burdens.
