ARUSHA: THE East African Community (EAC) Secretary General, Ms Veronica Nduva, has emphasised the need for the regional private sector to align national interests with regional benefits to enhance economic integration and growth.
Ms Nduva made the remarks during the recent Secretary General Roundtable in Nairobi, hosted by the Kenya Private Sector Alliance (KEPSA).
According to a statement posted on the EAC Secretariat website, this roundtable is a key platform for driving regional economic integration, improving the business climate and ensuring the private sector’s voice is incorporated into policymaking.
The Secretary General highlighted several achievements in EAC integration, including the introduction of the electronic EAC Passport, removal of visa requirements between EAC partner states, issuance of gratis student passes, implementation of the Single Customs Territory and adoption of a four-band structure.
The region is projected to grow by 5.1 per cent this year and 5.7 per cent in 2025, surpassing global and Sub-Saharan African averages.
Speaking at the Roundtable, Ms Nduva noted that the regional private sector needs to find a balance between safeguarding national interests and promoting regional benefits.
“To combat protectionism by EAC partner states, the private sector should focus on product diversification, specialisation and value addition in manufacturing, while capitalising on the over 300 million EAC market,” she said.
Ms Nduva provided an update on intra-EAC trade, which increased by 14 per cent to 12.2 billion US dollars in 2023 from 10.7 billion US dollars in 2022, representing 13 per cent of total EAC trade with the rest of the world. She added that total EAC trade grew by 2.3 per cent to 80.6 billion US dollars in 2023 from 78.7 billion US dollars in 2022.
The Secretary General urged the private sector to invest in key growth sectors such as manufacturing, agriculture and services, to promote regional integration, trade and investment. She acknowledged the progress made but emphasised that more work is needed.
“The EAC Customs Union has successfully eliminated tariffs on intra-regional trade since 2005, resulting in a notable over 60 per cent increase in intra-EAC trade.
The introduction of the Non-Tariff Barriers (NTB) reporting platform has greatly facilitated trade within the EAC.
With over 1,000 standards harmonised, intra-EAC trade has been streamlined, ensuring consistent quality and safety of products and services,” Ms Nduva noted.
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She reiterated the EAC’s commitment to fast-tracking laws and policies across partner states to meet Common Market Protocol commitments.
The increase in intra-EAC and inter-regional trade now includes more manufactured products, such as textiles, chemicals, edible oil, cement, iron and steel, cosmetics, plastics, and pharmaceuticals.
KEPSA has been instrumental in supporting regional integration, including advocating for the elimination of non-tariff barriers and revising stringent rules through robust policy dialogue.
KEPSA Chair, Dr Jas Bedi, acknowledged the benefits Kenya has gained from regional integration, particularly in the service sector, which accounts for over two-thirds of total trade in services.
However, he highlighted challenges in industrialisation due to factors such as low electricity access, high costs, poor infrastructure and protectionist policies.
“Addressing these issues is crucial for boosting competitiveness and reducing trade deficits. We propose establishing a regional task force to identify and address these bottlenecks with input from the private sector. KEPSA is ready to collaborate with the EAC Secretariat and partner states to address private sector concerns and unlock the region’s economic potential,” Dr Bedi said.
The roundtable also discussed critical issues affecting intra-EAC trade and investment, with proposed actionable steps for the EAC Secretariat, member states and the private sector.
KEPSA CEO, Ms Carole Kariuki pointed out the need for aligning revenue collection processes among EAC member states.
She cited discrepancies in levies faced by importers from Rwanda and Uganda for identical goods, which hinder trade efficiency.