This archive report was first published on 22 May 2020.
As the global pandemic continues to spread, the East African Community (EAC) is facing a significant challenge to its trade and development. The region's economies are heavily linked to the world economy, and the pandemic is expected to have a negative impact on EAC trade.
Following the first reports of Covid-19 in mainland China in late 2019, over 300,000 people have since died of the disease, with over five million infections reported worldwide. To limit infections, several countries in Asia, Middle East, Europe, and the Americas have banned large gatherings and imposed strict travel restrictions.
South Korea has started seeing a reduction in the number of Covid-19 cases after implementing tough measures, and China has also seen a decrease in cases. However, governments are racing to implement safety measures to avoid a situation like Italy's, where cases skyrocketed before lockdowns were put in place.
Kenya's imports from China plunged by Sh58.64 billion in January and February on the back of the outbreak, signalling possible supply disruptions of household goods and raw materials across Africa. Provisional import data from Kenya shows the value of goods ordered from China in January and February dropped by 36.63 per cent compared to a similar period in 2019.
However, trade has emerged as a remedy that can mitigate this adversity through the flow of essential goods, like food and medical supplies. EAC member states recently met to discuss the recovery strategy and a coordinated approach to mitigate the impacts of the crisis.
The Heads of State received reports from health, trade, transport, and EAC affairs ministries on regional Covid-19 response. They resolved to adopt a harmonised system for certification and sharing of the virus test results and improved flow of goods and services.
Private sector companies like East African Breweries Limited and Bidco Africa have already contracted small-scale farmers to produce and provide raw materials like barley, sorghum, wheat, soya beans, and sunflowers. This is creating entrepreneurship, revenue for farmers, and agribusiness opportunities.
The African Continental Free Trade Agreement (AfCTA) remains on the radar to increase intra-Africa trade, competitiveness, and innovation. The creation of employment and continued governments' support to all private sector industries is critical.
