The Covid-19 pandemic has disrupted regional and global supply chains, leading to contraction of intra-EAC trade.
It is also costing $37 billion (about Sh4 trillion) to $Sh79 billion (Sh8.6 trillion) output losses for the region.
“The pandemic has compelled EABC to refocus and re-purpose policy advocacy initiatives towards economic resilience and rebound including stimulus packages to support business continuity,” EABC chief executive Peter Mathuki said yesterday.
Total EAC exports decreased by 4.7 per cent to $14.0 billion in 2018 from $14.7 billion in 2017 of which, intra-EAC exports accounted for 22.4 per cent.
The trade deficit for the EAC region increased by 39.4 per cent to $24.3 billion in 2018 from $17.4 billion registered in 2017, according to the EAC Trade and Investment Report, 2018.
“Speaking in one voice as the business community reinforces our advocacy efforts towards mitigating the impact of the pandemic on businesses and spur intra-EAC trade to 30 per cent,”Mathuki said.
Elimination of persistent Non-Tariff Barriers (NTBs), implementation of trade dispute settlement mechanism, harmonized product standards and work permit regimes forms part of reforms the apex body is advocating for.
It is also keen on liberalization of trade in services,free movement of capital and harmonization of domestic taxes in the region, which form top of the EABC Policy Agenda 2021/22.
Concerted advocacy efforts are needed to fast track the finalization of the comprehensive review of the EAC Common External Tariff to boost industrialization and regional value chains, Mathuki added.
The Federation of German Industries (BDI), the umbrella association of German industries, has noted potential of African and German private sector cooperation.
"Strengthening regional integration translates into large markets of opportunity," BDI says.
Meanwhile, the African Free Trade Area (AfCFTA) is expected to be a game changer in boosting intra-African trade.
