How can EAC enhance intra-trade, investments

ARUSHA: REGIONAL business leaders have outlined priorities to unlock business and investment opportunities to the new East African Community (EAC) Secretary General, Ms Veronica Nduva.

EABC Vice-Chairperson Mr Dennis Karera, representing the EABC Chairperson at the EABC CEOs-EAC Secretary General Round Table held in Arusha, Tanzania, recently, stressed the importance of turning policies into action.

The round table was organised by the East African Business Council (EABC) in collaboration with the East African Community (EAC) and supported by GIZ-EAC.

Mr Karera highlighted the need for the liberalisation of air transport services, mutual recognition of professionals, abolition of work permits, harmonisation of domestic taxes and the elimination of long-standing non-tariff barriers.

These measures, he said, are crucial for businesses to fully benefit from the EAC Customs Union and Common Market of over 300 million people.

The EAC economy is projected to grow by 5.1 per cent in 2024 and 5.7 per cent in 2025.

Acting Executive Director of EABC, Mr Adrian Njau noted that as the voice of the private sector in East Africa, EABC has consistently advocated for policies that unlock barriers and catalyse trade and investment within the region.

ALSO READ: TIC Catalysing investment and economic growth in Tanzania

He pointed out that intra-EAC trade stands at 15 per cent of total trade, amounting to 12.2 billion US dollars in 2023, with 85 per cent of trade still occurring with the rest of the world.

He called for public-private dialogue and innovative thinking to increase intra-regional trade to 40 per cent by 2028.

“To boost investment attraction, the EAC, through the Market Access Upgrade Programme Phase 2 (MARKUP II), is assessing the investment facilitation and capacity-building needs of partner states. This will guide the development of country-specific and regional programmes on investment facilitation,” Mr Njau said.

Ms Estella Aryada, GIZ Component Lead Trade in Services, reaffirmed GIZ’s commitment to supporting public-private dialogues and engagement to realise the EAC vision.

Sadia James Sebit, member of the East African Legislative Assembly (EALA), emphasized the importance of involving the private sector and citizens in policy formulation, as they are the beneficiaries of EAC integration.

Mr Vimal Shah, EABC Chairman Emeritus, recommended that EAC partner states eliminate stays of application on the EAC Common External Tariff and refrain from country-specific duty remissions.

He also stressed the need for digitalisation and reducing transport and logistics costs to enhance the EAC bloc’s competitiveness.

In her keynote address, EAC Secretary General, Ms Nduva, urged the private sector to adopt a new approach to intra-EAC trade under the theme, “Buy East African, Build East Africa.”

Ms Nduva highlighted significant strides made by the EAC, including the streamlining of clearance processes under the Single Customs Territory (SCT).

“The centralised platform has been established to facilitate real-time exchange of Customs and Trade data, automating priority clearance for compliant traders,” she noted.

Ms Nduva also emphasised the EAC’s progress in improving border efficiency through the implementation of One-Stop Border Posts (OSBPs), which have led to a 70 per cent reduction in border crossing times and generated annual savings of over 63 million US dollars.

Additionally, 274 Non-Tariff Barriers (NTBs) have been resolved since 2007, and the EAC has developed the NTB App to simplify NTB reporting.

The Secretary General called on the private sector to collaborate with the EAC in improving access to affordable financing for SMEs.

ALSO READ: TZ, Pakistan eye boost in trade volume over 1tri/-

She reaffirmed her commitment to exploring climate finance opportunities under the East African Sustainable Growth (EASG) framework and supporting the establishment of financial instruments such as low-interest loans, grants and venture capital targeted at SMEs.

“We are working to increase awareness and integrate MSMEs into the regional compliant trader programme, which has effectively reduced fraud and delays,” she added.

Ms Nduva also pledged to follow up on EAC Council directives relevant to the private sector and ensure that the Sectoral Council on Legal and Judicial Affairs meets to facilitate the adoption of pending EAC trade instruments.

The round table, which brought together 70 captains of industry from across East Africa, provided a platform to outline private sector policy advocacy priorities and discuss the progress on implementing EAC commitments to enhance intra- and extra-EAC trade and investment.