TANZANIA: TOTAL intra-trade among East African Community (EAC) countries has surged by 11.2 per cent over the past four years, reflecting a growing economic integration and collaboration among member states.
The trade increased to 10.9 billion US dollars (about 29.7tri/-) in 2022 from 9.81 billion US dollars (about 26.7tri/-) in 2018.
Ministry of Foreign Affairs and East African Cooperation, Permanent Secretary, Ambassador Stephen Mbundi attributed the growth on Tuesday to collaborative efforts by member states to enhance regional trade through policy harmonisation, reduction of non-tariff barriers and infrastructure improvements.
“Trade serves not only as an economic activity but as a catalyst for sustainable development and inclusiveness,” Amb Mbundi said during the East African Business Summit organised by Stanbic Bank Tanzania.
The summit focused on unlocking trade opportunities for sustainable growth among member states.
The East African Regional Executive at Standard Bank Group Mr Patrick Mweheire said the trade increase has positively impacted Small and Medium Enterprises (SMEs) and has attracted more Foreign Direct Investment (FDI).
However, he said that some countries in the community are still experiencing slow growth due to existing non-trade barriers.
“We normally sit and discuss our issues together and sort of remove the barriers that we were facing, which are still remaining a challenge,” he said.
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At the summit, participants called for improved regional integration to tackle border challenges.
They highlighted the critical role of technology and financial inclusion in fostering trade, particularly for women and youth.
Former Foreign Affairs Minister Ms Liberata Mulamula stressed on digitisation to alleviate bureaucratic delays, stating that streamlining documentation processes could significantly enhance trade opportunities.
While the growth in intra-trade is encouraging, continued efforts in policy harmonisation, barrier removal, and digitisation are essential for sustaining and accelerating this momentum across the EAC.
He stated that East Africa is the most integrated and dynamic region, with the fastest-growing GDP in Sub-Saharan Africa.
“The growth has continued and bounced back significantly in the aftermath of Covid-19 pandemic, attributed to improved connectivity,” he said.
Mr Mweheire said that when considering the combined GDP and the large population of the Democratic Republic of Congo (DRC), trade within the EAC bloc will significantly benefit member states.
“We’re in discussions with Ethiopia, but ultimately, it’s somewhat irrelevant because trade is already occurring, despite the issues at many borders,” he added.