This archive report was first published on 29 June 2020.
Published on June 29, 2020, the World Trade Organisation has warned of a worldwide drop in merchandise goods due to the Covid-19 pandemic.
East African Community intra-trade volumes have significantly reduced to about 40% due to the pandemic's impact on border controls.
According to the International Trade Centre, Kenya imported products valued at $175.9 million from Tanzania in 2018, while Rwanda imported products worth $134.5 million from Kenya and $2 million from Tanzania.
However, these imports have dropped significantly since February, with border closures taking place in the second half of March.
"Intra-trade volumes in the EAC have dropped to between 30 and 40% in the past three months," said Kenneth Bagamuhunda, EAC Director General, and Customs & Trade.
"This can be attributed to the restrictions imposed on the movement of cargo trucks from the ports of Mombasa and Dar es Salaam to Malaba, Busia, Mutukula, Rusumo, and other border points within the community," he added.
While all six EAC partner states have closed land borders to travellers, freight is still allowed to pass under tighter controls, which sometimes allow the movement of only agricultural and food products.
"Even shipping has been affected. The region no longer receives imported goods due to the lockdown. The EAC has now to either manufacture what it can or do without those goods," Mr Bagamuhunda explained.
He added that he had visited all border posts over the past three months to inspect Customs operations.
"Covid-19 has adversely affected EAC intra-trade and cross-border movement of goods," said Dr Peter Mathuki, chief executive of East African Business Council.
"The reduction of volumes across borders is by 90%. Before Covid-19, over 3,000 trucks used to be cleared at Namanga border. But currently, only 500 trucks or less are being cleared -- a huge concern to the EAC business," he added.
