Countries in East Africa are intently focused on increasing intra-regional trade despite headwinds in the global economic environment.Geoffrey Osoro, trade policy advisor for the East African Community (EAC) secretariat, says enhancing this growth is key to generating more income and employment and offers incentive for diversification.
Osoro says the current intra-EAC trade performance shows a positive trend from $2.5 billion in 2014 to about $2.8 billion in 2018.It’s a region that has shown what can be achieved when there is political intent and commitment.
“The integration achieved in East Africa has progressed well due to the political support and the ownership of the integration agendas,” says Osoro. “In addition the approach has been one of equality anchored in a treaty.”The case for instituting this approach has been reaffirmed by the ongoing trade performance of the region under the Covid-19 regime, he says.
“The close cooperation and deep integration of EAC partner states in that they are each other’s most important trading partners and export markets is important. They have literally held out ‘economic lifelines’ for each other since the onset of the pandemic.”Osoro says it is evident that just as is the case with the European Union (EU), the EAC economies are highly integrated and mutually supportive of each other naturally. “This imperative is predicated on the essences of geographical proximity and the cultural and ethnic linkages between border communities.”
That there are challenges is however undeniable. “Some of the biggest challenges faced by the EAC include harmonisation and alignment of national laws to the laws and regulations of the community. There is only partial implementation of the Common Market Protocol – which speaks to free movement of goods, labour, services, capital, right of residence and establishment in the region – while non-tariff barriers still exist.”Challenges have also emanated from special economic zones and export processing zones, explains Osoro.
“From an industrialisation perspective the region is also struggling with the gaps in the governance capacity, as manifested by lack of implementation of strategies, policies, and systems to guide industrialisation efforts.”According to Osoro an important and urgent priority of the EAC is therefore fast tracking the realignment of value chains at national, regional and global levels, deepening regional cooperation, and intensifying economic integration by implementing trade and investment agreements already negotiated at the continental level.
