This archive report was first published on 21 August 2019.
On August 21, 2019, the East African Business Council (EABC) signed a significant financing agreement with TradeMark East Africa (TMEA) worth US$ 3 million.
The agreement aims to support the implementation of a three-year programme, 'Integrating Public-Private Sector Dialogue (PPD) for Trade and Investment in East Africa Community (EAC) Programme', which seeks to enhance advocacy and dialogue on trade facilitation, customs and tax, standards, and Non-Tariff Barriers (NTBs) in the EAC.
The partnership will focus on improving coordination, reporting, and resolution of NTBs along the corridors, harmonization and adoption of East African Standards/Sanitary and phytosanitary (SPS) measures, and the adoption and harmonization of Customs and Domestic Tax-related policies and trade facilitation in the EAC.
According to Hon. Peter Mathuki, EABC CEO, inadequate trading regimes restrictions on the export of certain commodities, lack of product diversification, and the existence of NTBs continue to hamper intra-regional trade, which remains low at 20% compared to other Regional Economic Communities (RECs).
Mathuki emphasized the need for an enabling environment to guarantee growth and predictability, stating that Public-Private Dialogue plays a crucial role in addressing constraints, providing short-term stimulus with long-term impact, and contributing to economic growth and poverty reduction.
Barriers to trading across borders, such as multiple product standard inspections and bureaucratic trade procedures, delay business transactions and increase the cost of doing business. The average time it takes to export is 76 hours, which is too high compared to 12.5 hours in OECD High-Income Economies, as reported by the World Bank Ease of Doing Business report (2018).
Mathuki added that the EAC is ranked 149 out of 190 in the ease of trading across borders, and that the EABC will coordinate, set the agenda, and facilitate evidence-based research on Public-Private Dialogues to reduce barriers to trade in the EAC region.
