A crucial meeting convened in Kigali, Rwanda, on October 12, 2024, led by the East African Community (EAC) Secretary General in collaboration with the East African Business Council (EABC). This assembly aimed to elevate intra-EAC trade from its current figure of 15% to an ambitious target of 40% by the year 2030. Centered around the theme “Enhancing Competitiveness in the EAC: Addressing Barriers and Leveraging Opportunities in Regional Integration,” the event highlighted the significance of regional cooperation in realizing the full economic potential of the EAC, which serves a population of around 312 million.
Image – EAC
Key Insights from the Meeting
Unified Trade Bloc Vision: H.E. Veronica Nduva, the EAC Secretary General, stressed the necessity of viewing the EAC as a cohesive trade bloc rather than a series of individual national markets. This unified approach is crucial for maximizing trade opportunities and enhancing regional benefits, which typically outweigh the gains from fragmented national interests.
Commitment to Regional Integration: Hon. Gen (Rtd) James Kabarebe, the Rwandan Minister of State for Foreign Affairs in charge of Regional Cooperation, reiterated the dedication of EAC Heads of State to the integration agenda. He acknowledged the challenges currently hindering intra-EAC trade but expressed optimism that collaborative efforts could lead to significant advancements.
Actionable Recommendations: Mr. Dennis Karera, Vice Chairperson of EABC, emphasized that the meeting culminated in a declaration featuring specific recommendations aimed at transforming discussions into practical strategies. The primary goal is to boost intra-EAC trade while strengthening Rwanda’s trading relationships with other EAC Partner States.
The Role of Government and Private Sector Collaboration
Hon. Prudence Sebahizi, Rwanda’s Minister of Trade and Industry, expressed the government’s dedication to collaborating with the private sector to promote EAC integration. His appeal centered on enhancing production capabilities and export potential to satisfy the needs of both regional and international markets.
Recent data shows encouraging trends: in 2023, the total merchandise trade within the EAC increased by 2.37% to surpass US$80 billion, with intra-EAC trade rising by 13.1% to hit US$12.1 billion. Notably, Rwanda experienced a significant 20.3% growth in total trade, attributed to ongoing reforms designed to streamline trade processes and enhance market accessibility.
EAC Initiatives Advancing Trade
As the EAC marks its 25th anniversary, several initiatives have been implemented to facilitate trade. The introduction of the e-Tariff toolkit equips businesses with essential information on tariffs and trade procedures. Additionally, the EAC has harmonized over 1,920 product standards across 80 sectors, simplifying compliance for businesses operating in the region.
The EAC’s Industrialization Policy aims to increase the manufacturing sector’s contribution to GDP from 8.9% to 25% by 2032, emphasizing the importance of local production and economic self-sufficiency.
Engaging Stakeholders for a Sustainable Future
The meeting drew around 150 business leaders and government officials, including members of the National Parliament and key ministry representatives. This diverse gathering highlights the essential collaboration required to tackle challenges and seize opportunities in the EAC.
Discussions encompassed a range of topics, including the liberalization of air transport services, enhancements to transport networks, and issues related to the digital economy, work permits, and the implementation of the Single African Air Transport Market Agreement.
The meeting between EABC CEOs and the EAC Secretary General marks a vital step toward greater intra-EAC trade and economic integration. As all stakeholders—government, private sector, and civil society—strive to achieve the ambitious target of 40% intra-EAC trade by 2030, fostering dialogue and collaboration is crucial.
At Harboursim, we are committed to supporting initiatives that drive trade, investment, and sustainable development across Africa. We invite you to join us on this transformative journey. Stay informed about the latest trade and economic policy developments within the EAC and beyond. Together, we can leverage our collective strengths to create a prosperous and integrated East African community. HLP-TRADE-202410-900
