East Africa’s next growth engine lies within borders

DAR ES SALAAM: EAST Africa’s next growth opportunity may not come from expanding beyond its borders, but from unlocking the economic potential within them.

Despite having a combined market of more than 300 million people, intra-regional trade remains a fraction of the bloc’s total commerce, prompting businesses and policymakers to accelerate efforts to build a more connected regional economy.

The challenge and opportunity formed the backdrop of the East African Business Council (EABC) CEOs–Trade & Investment Roundtable in Tanzania, where business leaders, governments and development partners explored ways to turn regional integration into stronger investment flows, industrial growth and expanded markets for companies.

The discussions also marked the launch of preparations for the East Africa CEO and Investment Forum 2026, scheduled for September 17–18 in Nairobi, a platform expected to bring together investors, business executives and policymakers to promote East Africa as a competitive investment destination.

The urgency is reflected in the region’s trade numbers. In 2025, intra-EAC trade reached 19.7 billion US dollars, compared with 137 billion US dollars in trade with the rest of the world, showing the scale of the opportunity if businesses can overcome barriers limiting crossborder commerce.

East African Community (EAC) Secretary General Amb Stephen Mbundi said increasing regional trade requires stronger cooperation between governments and businesses, with the private sector playing a central role in driving investment and job creation.

“Our priority as the EAC Secretariat is to implement the vision and commitment of increasing intraEAC trade. This must become the benchmark against which every policy, partnership and reform is measured,” he said.

The EAC Heads of State have set a target of increasing intra-regional trade to 50 per cent by 2030, a goal that would require businesses to operate more seamlessly across borders and governments to address constraints affecting trade.

The cost of a fragmented market For companies operating across East Africa, the potential of the regional market is often limited by practical challenges.

EABC Executive Director Ahmed Farah said regional integration must be built with business at the centre, arguing that companies should help shape policies affecting trade and investment.

He identified non-tariff barriers, uneven implementation of the Common External Tariff, differing tax systems and high transport costs as some of the major obstacles preventing businesses from fully benefiting from the common market.

A more predictable regional environment, he said, would allow companies to expand production, develop regional supply chains and compete more effectively in global markets.

Investment follows integration The push for deeper integration comes as East African economies seek more private investment to support industrialisation and economic transformation.

Maximilian Müller, Deputy Head of Mission at the German Embassy in Tanzania, said stronger connections between governments, investors and businesses are essential to converting opportunities into actual investments and jobs. He said the Invest.

EastAfrica! platform represents a broader effort to connect regional opportunities with international investors through sector-focused engagements.

The East African Development Bank (EADB) said financing businesses that support regional integration remains a priority.

EADB Country Manager Stephen Wambura said the institution is committed to supporting companies that drive industrialisation, sustainable economic growth and regional economic transformation.

Companies positioned for regional growth The private sector sees stronger integration as critical for developing competitive regional value chains.

Tanzania Private Sector Foundation (TPSF) Executive Director Deogratius Massawe said eliminating discriminatory taxes, fees and charges on goods originating within the EAC would help make the Common Market more effective.

For manufacturers, improved regional integration could reduce production costs, increase market size and encourage investment in industries that serve multiple countries.

Confederation of Tanzania Industries (CTI) Executive Director Leodegard Tenga said changing global economic conditions require East Africa to strengthen regional value chains and industrial cooperation.

East African Legislative Assembly member Dr Gladness Salema said the region must move beyond policy commitments by investing in complementary industries and production systems that allow countries to compete internationally.

Turning potential into performance The Tanzania Development Vision 2050 places private-sector-led growth at the centre of economic transformation, recognising businesses as drivers of investment, employment, innovation and exports.

The roundtable brought together more than 70 government representatives, executives, business associations and development partners to discuss investment opportunities across manufacturing, agriculture, tourism, logistics, finance and trade.

The discussions will contribute to the EAC Trade and Investment Climate Report, which will be launched during the East Africa CEO and Investment Forum 2026.

For businesses, the opportunity is clear: A more integrated East African market could create larger customer bases, stronger supply chains and new investment opportunities.

The challenge is converting regional ambitions into practical reforms that make it easier for companies to move goods, invest capital and build businesses across borders.