Ruto's Call to Action: Reducing Trade Barriers in East Africa
At the recent 25th East African Community (EAC) Micro, Small and Medium Enterprises Trade Fair in Nairobi, President William Ruto of Kenya highlighted the urgent need for the member states of EAC to dismantle rising non-tariff barriers (NTBs) that have surged sharply from just 10 in November 2024 to 48 as of May 2025. These barriers are complicating cross-border trade, particularly for small to medium enterprises (SMEs) that form the backbone of Eastern Africa's economy.
The Impacts of Non-Tariff Barriers
Ruto attributed the proliferation of NTBs to political instability in certain member states, cumbersome customs procedures, and conflicting domestic tax regulations, which continue to frustrate traders and hinder economic growth. The challenges faced by SMEs are particularly worrisome, with Ruto stating that these enterprises are crucial for job creation and innovation, making their support via reduced trade restrictions an economic imperative. He pointed towards the African Continental Free Trade Area (AfCFTA) as a potential avenue for expanding market access.
Delegates' Perspective
During the trade fair event, EAC Deputy Secretary-General for Customs, Trade and Monetary Affairs Annette Ssemuwemba Mutaawe echoed Ruto’s sentiments, revealing that the EAC has made significant strides in addressing NTBs through initiatives like the EAC NTB Reporting Mobile Application, which has reportedly halved resolution times for trade complaints. While this has provided some relief, key obstacles remain, particularly with domestic tax inconsistencies and myriad roadblocks that slow the movement of goods.
Intra-regional Trade Growth
Despite these challenges, the EAC has witnessed a remarkable growth in intra-regional trade, rising by 27% to $18 billion between June 2024 and June 2025. This growth is a testament to the resilience of the regional economies, driven by cooperative policies and ongoing dialogues to eliminate trade hindrances.
Future Outlook on EAC Trade Policies
Moreover, upcoming bilateral meetings between Uganda and Kenya showcase a commitment to further dismantling trade barriers, focusing on treating all exchanges of goods as transfers instead of imports. This initiative aims to streamline the trading process significantly. The meeting had directives that call for reductions in excessive levies and a serious commitment to improving border infrastructure—factors critical in enhancing trade efficiency between these nations.
As the landscape of the EAC evolves, Ruto's appeal for regional partners to work collectively in reducing trade barriers is timely, reflecting a broader commitment towards a unified economic strategy. The real test will be the implementation of these proposed changes and the effective monitoring of trade practices to ensure that the vision for a fully integrated East Africa materializes.
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