The East African Business Council (EABC), East African Community (EAC) Secretariat and the Government of Rwanda have declared a commitment to boost intra-EAC trade as well as trade and investment ties with counterparts.
ALSO READ: NTBs cost region over Rwf20 billion, threatening intra-EAC trade
According to Veronica Nduva, EAC Secretary General, the EAC heads of state have set an ambitious target to increase intra-EAC trade from 15 per cent to 40 per cent by 2030.
The share of intra-EAC trade has stagnated at 15 per cent due to the persistent non-tariff barriers (NTBs), trade restrictions, protectionist tendencies by EAC Partner States, uncompetitive products, production of similar products, and global crises which have affected intra-regional trade.
External factors such as the Red Sea crisis, climate change impacts, and the ongoing war between Russian and Ukraine have impacted supply chains within the EAC, affecting trade flows and economic growth across the region.
Nduva urged the private sector to promote the EAC as a unified trade bloc, emphasising that regional benefits outweigh national interests, with the EAC's market of 312 million being far larger than individual national markets.
Officials from the government of Rwanda, and members of the EABC and EAC made a declaration to boost intra-regional trade by 40 per cent by 2030.
They made a commitment in Kigali after during a gathering that discussed liberalisation of air transport services, transport and logistics, manufacturing, tourism, and the movement of services and service providers.
ALSO READ: EAC leaders call for tougher stance on non-tariff barriers
Gen (Rtd) James Kabarebe, Minister of State for Foreign Affairs in charge of Regional Cooperation for Rwanda, reiterated the commitment of EAC Heads of State to the integration agenda.
He pledged to secure the progress made and to address the setbacks to intra-EAC trade and investments.
Members also discussed ways to promote digital economy, and upgrading transport networks andenergy, among other things.
Rwanda's Minister of Trade and Industry, Prudence Sebahizi, reiterated the government's commitment to partnering with the private sector in driving EAC integration.
He emphasised the need to improve production and exports to meet regional, continental, and international market demands of goods and services.
ALSO READ: Removal of NTBs save transporters over Rwf5 billion in last five years
Dennis Karera, Vice Chairperson of EABC, stated that the meeting of the private sector, EAC Secretary General, the Minister of Trade and Industry, and the Minister of State for Foreign Affairs in charge of Regional Cooperation in Rwanda, resulted in a declaration outlining practical recommendations to move from rhetoric to action.
"Our shared goal is to increase intra-EAC trade and strengthen Rwanda's trade and investment ties with other EAC Partner States," he said.
In 2023, intra-EAC trade grew by 13.1 per cent to $12.1 billion, accounting for 15 per cent of total EAC trade. This indicates significant room for more growth prospects.
ALSO READ:Trade among EAC countries hits $10 billion
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Rwanda's total trade grew by 20.3 per cent, demonstrating the positive impact of ongoing reforms aimed at streamlining trade and improving market access.
This year the EAC is marking 25 years.
In this period, the EAC has introduced several initiatives, including the e-Tariff toolkit and trade information portals, which provide the private sector with access to tariff structures and step-by-step guides on licenses, permits, and procedures for goods moving in and out of the region.
Furthermore, it has harmonised over 1,920 product standards across 80 sectors.
The EAC is poised to continue leading the continent as the fastest growing economic bloc at 5.48 per cent in 2024, up from 4.9 per cent in 2023.
