The East African Community (EAC), the only economic bloc on the continent with its own constitution, must strive to increase regional trade by 40% over the next five years.
This is one of the resolutions of the second East African Business and Investment Summit and Expo held in the Ugandan capital, Kampala, last week.
It was attended by over 500 delegates, including ministers, senior government officials, industry leaders, potential investors and representatives from financial institutions.
The summit discussed successes and challenges facing trade and investments within the EAC and the African Continental Free Trade Area (AfCFTA), with the objective of identifying necessary policy reforms and leveraging opportunities for increased intra-African trade and investment.
Intra-EAC trade grew by 11.2% to $10.9 billion in 2022, up from $9.8 billion the previous year. The region's total trade increased by 13.4% to $74.1 billion in the same period.
According to a statement released following the summit, EAC leaders and business people agreed to "prioritise harmonisation of trade and investment regulations and policies within the EAC to facilitate promotion of the EAC as a single investment destination."
They urged member states (Burundi, DRC, Kenya, Rwanda, South Sudan and Tanzania) to address the high cost of air travel through the implementation of open skies in the EAC.
The establishment of robust legal frameworks and investor protection measures to create an enabling business environment were also called for.
EAC leaders furthermore urged for accelerating exports of high-demand products to match regional growth amid competitive international markets as well as increasing manufacturing capacity, diversified production and developing competitive medium and high-tech sectors.
The regional ministers highlighted the need for dialogue with the private sector in the harmonisation of domestic taxes, including excise duties, VAT, income tax and tax incentives, and lowering the cost of implementing the Digital Tax Stamp System across the EAC.
