This archive report was first published on 12 June 2020.
Published on June 12, 2020, the East African Business Council (EABC) is urging the Ministers Responsible for Transport, Health and EAC to convene and find a win-win lasting solution to the barriers hindering the free movement of cargo across EAC borders.
According to EABC Executive Director/CEO Dr. Peter Mathuki, the 14-day standstill on the movement of goods between Kenya and Tanzania risks business continuity and affects intra-EAC trade.
Dr. Mathuki appreciates the directives of President John Pombe Joseph Magufuli of Tanzania and President Uhuru Kenyatta of Kenya, which aim to ensure free movement of goods across borders between the two countries.
He noted that over 1,000 trucks are stranded at both sides of the border, significantly affecting intra-EAC trade and the movement of essential and perishable goods.
Dr. Mathuki also highlighted a slowdown in the movement of cargo across all EAC borders, disrupting regional value chains due to emerging challenges restricting the movement of truck drivers in an effort to contain the spread of COVID-19.
According to the International Trade Centre, in 2018, Kenya imported products valued at approximately USD 175.9 million from Tanzania, while Rwanda imported products valued at approximately USD 134.5 million and approximately 2 million from Tanzania.
Dr. Mathuki emphasized the importance of facilitating the free movement of cargo across borders for the economic recovery of the EAC region during and post the COVID-19 pandemic.
The EABC is ready to offer support towards a public-private dialogue on cross-border trade to unblock the current trade barriers, which is critical for economic recovery in the EAC region.
