ARUSHA: THE East African private sector has called on the East African Community (EAC) to address all barriers to intra-regional trade and investment in order to increase the volume of trade and investment among the regional member states, which currently stands at 14 per cent.
The East African Business Council (EABC) Vice-Chairperson, Mr Dennis Karera made the call during the council’s CEOs-EAC Secretary-General Round Table held in Arusha yesterday.
The event was themed “Boosting Intra-EAC Trade and Investment: Unlocking Barriers and Leveraging Opportunities.”
Mr Karera expressed concern that many trade and investment issues discussed at various levels of EABC and EAC meetings are not being successfully implemented regionally due to barriers imposed by some EAC member states, hindering the growth of intra-regional trade.
He therefore urged partner states to eliminate all long-standing non-tariff barriers (NTBs) and expedite the ratification of the Amended EAC Elimination of Non-Tariff Barriers Act, 2017 and its Regulations.
“This requires deliberate and consented efforts by the EAC partner states and the business community towards attaining a higher level of intra-regional trade, harnessing sustainable economic growth and repositioning the EAC bloc to take advantage of the Tripartite (COMESA-EAC-SADC) Free Trade Area, African Continental Free Trade Area (AfCFTA) and Global Market,” he insisted.
He added; “The EAC economy is projected to grow by 5.1 per cent in 2024 and 5.7 per cent in 2025, while intra-trade was reported to grow by 14 per cent, equivalent to 12.2 billion US dollars in 2023.”
According to him, as 50 NTBs are removed, 25 new NTBs are created, something which discourages investment and intra-trade in the EAC region.
He noted that, as the EABC reaches 25 years since its establishment, he called on the EAC to ensure that in the next 25 years all NTBs and other intra-trade barriers are removed to allow the free movement of goods, services and capital in the region.
Mr Karera also called on the EAC to ensure there is a uniform application of the EAC Common external tariff, harmonisation of domestic taxes, removal of discriminatory taxes, charges of equivalent effect and fees, liberalisation of the air transport services and the implementation of the EAC commitments by new EAC Partner States.
Responding to the queries, the East African Secretary-General, Ms Veronica Nduva, said that the High-level Retreat on the Common Market Protocol held in July 2022 set a target of increasing intra-EAC trade to 40 per cent by 2030.
Ms Nduva committed herself to supporting the sector to increase intra-EAC trade and investments for the welfare of EAC citizens.
“Through the available mechanisms for the elimination of NTBs, so far, 10 NTBs remain pending and resolution is at different levels. Cumulatively, 274 NTBs have been resolved since 2007,” noted Ms Nduva, insisting, “I am committed to engaging with the respective policy organs to ensure quick finalisation of these instruments that include EAC Elimination of NTB Act, Revised Schedules of Commitments on the Progressive Liberalisation of Services, Mutual Recognition Agreement (MRA) Regulation 2011, EAC Standardisation, Accreditation Conformity Assessment (SACA) Bill 2023 and EAC Metrology Bill 2022.”
For his part, the Acting Executive Director of the East African Business Council (EABC), Mr Adrian Njau, said that EABC, as the voice of the private sector in East Africa, has championed structured Public-Private dialogues (PPDs) on trade and investment.
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“Policy advocacy on trade, investment and industrialisation is at the forefront of our agenda at the EABC to unlock barriers and boost intra- and extra-EAC trade and investment,” said Mr Njau.
He said that the active participation of the private sector in the integration process will sustain the EAC as the fastest-growing economic bloc on the continent, projected to grow at 5.1 per cent in 2024, up from 4.9 per cent in 2023.
According to him, through public-private partnership and a conducive business environment, the share of intra-EAC trade can grow from the current 15 per cent to 40 per cent by 2028.
