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East Africa's Free Trade Hurdles

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 11 September 2021.

Published on September 11, 2021, a report by The EastAfrican highlighted the challenges faced by East Africa's regional integration efforts. The article noted that trade barriers, such as export quotas and tariffs, are hindering the flow of goods and services within the region.

One notable example is the recent influx of Kenyan potatoes into Uganda, which has brought relief to consumers. A 90kg bag of Kenyan potatoes is retailing at just under $20, compared to almost double the price for varieties coming from southwestern Uganda.

However, this development has sparked a dispute between Kenya and Uganda over market access for their manufacturers. Kenya has reportedly slashed the export quota for sugar originating from Uganda, leading to a storm of protests.

Despite the challenges, the article emphasizes the importance of regional integration and the need to clear trade barriers that slow down free trade. The author argues that trade barriers are a form of invisible tax that makes trade cumbersome, inefficient, and expensive.

The article concludes by highlighting the need for policy makers to moderate their aversion to risk and experiment with new approaches to regional integration. The author also emphasizes the importance of embracing the notion of shared prosperity and creating an environment that allows wealth to circulate within the region.

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