Breaking barriers: The future of trade in the East African Community

For years, the East African Community (EAC) has worked toward regional integration, aiming to enhance trade and economic cooperation among its Partner States. From Kenya to Burundi, the goal of facilitating the free movement of goods, services, and people has been a central focus. But beneath this vision, there are still several challenges, particularly with new Partners like the Democratic Republic of Congo (DRC) and South Sudan, whose trade barriers are still stretching the integration culture. While so, recent advances in Kenya-Somalia trade facilitation capture both progress and the persistent complexities of African-African trade. But will the EAC be able to surmount these obstacles to realising a truly open and integrated regional market?
The unfulfilled promise of a common market
When the EAC Common Market Protocol was signed in 2010, it was a moment of optimism. The treaty promised an economic block where the free movement of goods and services existed, hence making investment and employment creation increase. In practice, that has not been the reality reflected on the ground. Although older Partners such as Kenya, Tanzania, and Uganda have made significant strides in cutting trade barriers, newer entrants such as the DRC and South Sudan operate under regulatory environments that pose obstacles to intra-EAC trade.
Among the major complaints made by companies and trade organisations against the DRC and South Sudan is that despite both being full Partners of the EAC, they still impose customs and non-tariff barriers (NTBs) on goods from Partner States. These hindrances range from over-burdening customs processes to flat-out import prohibitions. For instance, South Sudan has been charging visa fees to citizens of other EAC Partners, contrary to the free movement of persons policy. This has rendered cross-border trade cumbersome, causing losses to businesses and traders.
The DRC experience is no less challenging. The country still follows a trade framework that does not fully align with EAC regulations. Congolese traders have reported bureaucratic bottlenecks, high import taxes, and inconsistent policy enforcement, making it difficult to trade with their EAC counterparts. For businesses that expected a smooth entry into the DRC market following its accession, the reality has been sobering.
Are Kenya and Somalia headed in the right direction?
Whereas, Kenya is forging ahead to increase trade with Somalia. Despite being neighbours and part of the same trade bloc, businesses in both countries frequently encounter multiple levies, policy shifts, and non-tariff barriers that hinder the smooth flow of goods and services. The two nations are now charting a fresh trade facilitation pact that should ease the movement of goods and services, reducing the regulatory hurdles which have traditionally kept them distant.
This progress is significant on two fronts. First, it indicates Kenya’s economic diplomacy. Somalia, despite years of unrest, remains an important trade partner to Kenya, particularly in agriculture and construction materials. Second, the agreement can also serve as a model for the management of non-tariff barriers within the EAC. Under bilateral trade facilitation agreements, Partner States can move towards the long-term goal of a regionally integrated market.
The need for a more powerful enforcement mechanism
One of the main reasons trade barriers continue to remain in the EAC is the lack of an effective mechanism of enforcement. Despite Partner States being bound under the EAC Treaty, typically, little happens when a country violates its obligations under the agreements or puts up new barriers. This has led to a demotivating cycle of suffering for businesses as governments prolong negotiations with no short-term solutions. Perhaps it is time to consider strengthening the authority of the EAC Secretariat to enhance compliance.
Additionally, the private sector ought to be continuously engaged in trade policy. Currently, governments dominate the debate in trade negotiations, but it is organisations that are most affected by restrictive policies. By engaging in more representative dialogue with industry leaders, the EAC can make trade policies workable and economically rewarding.
A call for political will and economic vision
At the heart of this issue is political will. While trade agreements and protocols exist on paper, they will remain ineffective if national governments do not prioritise their implementation. The unwillingness of some EAC Partner States results from economic domestic interests, avoiding loss of income from import taxes, protection of local production, or addressing political pressures from pressure groups.
However, the long-term gains of regional integration are much greater than these short-term setbacks. A fully functional EAC Common Market would increase intra-regional trade, generate millions of jobs, and position East Africa as a serious economic bloc on the continent. Conversely, a disintegrated EAC where Partner States selectively apply trade rules will only slow growth and discourage investors.
The future of EAC trade
As Kenya progresses in the negotiation of trade agreements with Somalia, there is an opportunity for the entire region to re-think its economic integration approach. With the right political will and effective economic policy, the EAC can eliminate existing impediments and achieve the full potential of regional trade. The question is no longer whether integration is possible but rather if leaders are willing to make the bold decisions required to achieve it.