East Africa states asked open borders for small traders

Small businesses can contribute more to the growth of economies in East Africa if the region realises absolute freedom of movement of goods and people.

Secretary General of the East African Community, Veronica Nduva, in a speech read on her behalf by her deputy, Annette Mutaawe, outlined several measures to be taken to support small traders in the region.

They include reviewing of EAC Rules of Origin (RoO) to make them more trade-facilitative and aligned with industrial growth and enhancing regional connectivity through harmonized and interoperable infrastructure networks that facilitate seamless movement of goods, services, and people across our borders, such as smart gates.

She also called for the implementation of the EAC Payment and Settlement System to simplify cross-border payments, reduce transaction costs, and enable settlements in local currencies; and expansion of learning and capacity-building networks, especially for women and youth, to enhance participation in cross-border trade.

Nduva emphasised the importance of small traders in the regional economy, saying that they account for nearly 90 per cent of new jobs and contribute over 30 per cent to EAC’s GDP.

“Local government needs to make it possible for small businesses in East Africa to trade freely in a bid to further grow regional trade, which expanded by 27.1 per cent last year, from $14.2 billion (Sh1.8 trillion) to $18 billion (Sh2.3 trillion),’’ she said.

“This performance reflects deepening market integration among our eight Partner States and the growing strength of our internal market.”

Total EAC trade with the rest of the world increased by 22 per cent, rising from $115.4 billion (Sh14.9 trillion) (June 2024) to $140.8 billion (Sh18.2 trillion) (June 2025).

She termed the EAC MSMEs Trade Fair stands as one of the most enduring and impactful regional platforms bringing together artisans, innovators, and small enterprises from all partner states.

“It serves as a dynamic marketplace for showcasing products, expanding market access, and building regional business networks.”

The Trade Fair began in 1999 in Arusha, with just 134 MSMEs. It has grown to host 2,331 exhibitors this year, almost double the 1,334 exhibitors who participated in last year’s edition in Juba.

She expressed optimism in the region’s economic growth, saying macroeconomic indicators reflect resilience and dynamism that have seen it maintain an average GDP growth rate of 5.3 per cent.

“Looking ahead, the agriculture and manufacturing sectors are projected to record continued growth, supported by robust trade performance and the region’s expanding industrial base.”

She said that currently, manufactured exports account for less than 30 per cent of total exports, largely composed of cement, textiles, and basic chemicals, with a strong agricultural foundation offering immense potential for agro-processing and value-added industries.

“By deepening regional value chains, enhancing innovation, and strengthening MSME capacity, we can transition from an export structure dominated by raw commodities to one driven by diversified, high-value manufactured goods.”

She outlined key achievements in the regional trade so far, including harmonization of up to 2,040 regional Standards, reducing the average resolution time of NTBs by 50 per cent.

According to EAC, border clearance time for goods has reduced by 75 per cent, with most transactions now completed in less than a day through the operationalization of One Stop Border Posts, digital connectivity of key trade facilitation agencies and other cross-border initiatives.

Meanwhile, the community has partnered with the United Nations Economic Commission for Africa (UNECA) to develop a Regional Blue Economy Strategy and Action Plan (2025–2034).

The Strategy and Action Plan was formulated with technical and financial support from the Sub-Regional Office of Eastern Africa of UNECA (SRO-EA).

It provides a comprehensive framework for the sustainable use and conservation of aquatic resources, including oceans, lakes, and rivers, to drive socio-economic development and enhance food security across the East African Community.

Its primary objectives are to maximize economic potential through job creation and value addition, alleviate poverty, and promote regional cooperation, all while ensuring environmental sustainability.

Critically, the strategy is directly linked to climate action. It promotes low-carbon development and strengthens the region’s climate resilience by protecting and restoring vital aquatic ecosystems, such as mangroves and coral reefs, which act as natural defenses and essential blue carbon sinks.

Additionally, the Strategy aims to guide the implementation of Blue Economy activities at both national and regional levels, enhance regional integration, and strengthen support to Partner States in translating policies into concrete actions.

The Strategy now awaits final approval by the EAC Council of Ministers in the upcoming meeting.

The region’s 3,000-kilometre coastline along the Indian Ocean, combined with freshwater systems such as Lake Victoria, holds untapped potential, including sustainable fisheries, aquaculture, maritime transport, renewable energy, and marine tourism.

According to the Food and Agriculture Organization, Africa’s fisheries sector could grow by $10 billion over the next decade if managed sustainably.

Kenya, Tanzania, and Uganda already account for over 60 per cent of the region’s fish production, yet their contribution to GDP remains small.

The challenge is not the availability of resources but the absence of a coherent strategy. Infrastructure, regulatory frameworks, and investment mechanisms lag behind the sector’s potential.

Even so, the region faces mounting threats from climate change, including coastal erosion, rising sea levels, and declining fish stocks.