EAC Secretary General, Captains of Industry Call for a New Approach to Boost Intra-EAC Trade,Investment

By Namutebi Sumayiya

In her keynote address during the EABC CEOs-EAC Secretary General Round Table held in Arusha, Tanzania, the EAC Secretary General, H.E. Nduva, urged the private sector to have a different drumbeat for intra-EAC trade to thrive under the clarion call of “Buy East African, Build East Africa.

The EABC CEOs-EAC Secretary General Round Table was organised under the theme, “Boosting Intra-EAC Trade and Investment: Unlocking Barriers and Leveraging Opportunities” by the East African Business Council (EABC) in collaboration with the East African Community (EAC) and in partnership with GIZ-EAC and sponsorship from ISUZU East Africa Ltd, Tanzania Cigarette Public Limited Company, Stanbic Bank, Groupe EIS-EKA and Tanzania Breweries Limited.

H.E. Nduva, highlighted the 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 said

Ms. Nduva further emphasised the EAC’s progress in border efficiency through the implementation of One-Stop Border Posts (OSBPs), which have led to a 70% reduction in border crossing times and generated annual savings of over USD63 million. Additionally, 274 Non-Tariff Barriers (NTBs) have been resolved since 2007. The EAC has also developed and operationalised the NTB App to simplify NTBs reporting.

The Secretary General urged the private sector to collaborate with the EAC in identifying ways to improve access to affordable financing for SMEs.

Hon. Nduva reaffirmed her commitment to exploring climate finance opportunities under the East African Sustainable Growth (EASG) framework and supporting the establishment of dedicated financial instruments such as low-interest loans, grants, and venture capital targeted at SMEs, adding that this initiative will require active engagement with the private sector.

“We are also working to increase awareness and integrate MSMEs into the regional compliant trader program, which has effectively reduced fraud and delays,” said the Secretary General.

The Secretary General also pledged to follow up on EAC Council directives and decisions, particularly those relevant to the private sector. She also committed to ensuring that the Sectoral Council on Legal and Judicial Affairs meets to facilitate the adoption of any pending EAC Trade instruments.

In his remarks, the EABC Vice Chairperson, Mr. Dennis Karera, who represented the the EABC Chairperson, underscored the importance of governments to turn policies into action by fully implementing EAC commitments to boost intra-EAC trade and investment.

Mr. Karera said that liberalisation of air transport services, mutual recognition of professionals, abolition of work permits, EAC trade remedies, harmonisation of domestic taxes and elimination of long-standing non-tariff barriers are solutions set to enable businesses to fully tap into the EAC Customs Union and Common Market of over 300 million people.

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

In his remarks, Mr. Adrian Njau, the Acting Executive Director of EABC, said that as the Voice of the Private Sector in East Africa, the EABC has continuously advocated for policies that unlock barriers and catalyse trade and investment within the region.

Mr. Njau said that intra-EAC trade stands at 15% of total trade, amounting to USD12.2 billion in 2023, indicating that 85% of our trade is still with the rest of the world. He called for public-private dialogue and different thinking to harness opportunities and increase intra-regional trade to 40% 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 the Partner States. This will guide the development of country-specific and regional programs on investment facilitation.

In her speech, Ms. Estella Aryada, the GIZ Component Lead Trade in Services, reaffirmed GIZ’s commitment to support public-private dialogues and engagement between the government and the private sector for the EAC vision to be realised.

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

In his contribution at the panel discussion, Mr. Vimal Shah, the EABC Chairman Emeritus, recommended that EAC Partner States eliminate Stays of Applications on the EAC Common External Tariff and refrain from Country Specific Duty Remissions. Mr. Shah also emphasised the need to adopt digitalisation and reduce transport and logistics costs to enhance the competitiveness of the EAC bloc.

Ms. Pheona Wall, an EABC Board Member, said that allocating more resources to the East African Court of Justice (EACJ) and ensuring accountability in resolving business disputes are crucial to improving trade within the bloc. Ms. Doreen Dominic, Head of Public Sector, Stanbic Bank Tanzania, highlighted that digital financial solutions are promoting access to finance for women and gender equality.

Ms. Dominic emphasised the need for the EAC to integrate financial services to reduce the cost of cross-border transactions. Mr. Dennis Karera, EABC Vice Chair, vouched for the adoption of the EAC Single Tourist Visa is important to boost the tourism and hospitality sectors. The session was moderated by Ms. Flavia Busingye, Director of Customs and Trade at the EAC Secretariat.

During the RoundTable, H.E. Veronica Nduva cut the ribbon of the ISUZU FVR Tipper Truck, signifying progress in the expansion of trade in locally assembled vehicles in the EAC.

The EABC CEOs-EAC Secretary General Round Table also deliberated on the manufacturing sector in the EAC with insightful presentations on the impact of illicit trade and the automotive value chain. The panelists included: Jacob Arnold Luoga, Stakeholder Engagement and Regulatory Affairs Manager at JTI; Mr. Wanjohi Kangangi, Director of Sales and Marketing at ISUZU East Africa; Mr. Delphine Kaze, EABC Board Member; and Ms. Annette Mutaawe Ssemuwemba, the EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs. The session was moderated by Mr. Jean Baptiste Havugimana, Director of Productive Sectors at the EAC Secretariat.

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