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| EAC, secretary general, Peter Mathuki |
Increased trade within the East African Community (EAC) bloc to 50 per cent in the next five years is possible, the secretary general, Peter Mathuki has affirmed.
Currently trade among the six member states in the bloc stands at 12 per cent, low for countries sharing the common market and customs union.
Dr. Mathuki who assumed office last month said he would spearhead efforts that would spur intra-regional trade in the next five years of his tenure.
One of the challenges he would address in order to attain the goal was elimination of the notorious non-trade barriers (NTBs).
He asserted this in Kampala this week when he graced the EAC-Private Sector CEOs' RoundTable meeting he hosted and live-streamed from the Uganda capital.
He said although intra-EAC imports grew by 12 percent to $3.2billion in 2019 from $2.8billion in 2018, the volumes could have been higher without NTBs.
“Persistent NTBs such as restricted market access for goods and un-harmonized charges continue to frustrate intra EAC trade and investment", he said
The trend has also led to escalation of transaction costs and generally increased the cost of doing business in the six nation bloc.
According to the 2019 EAC report the increase of intra-trade reported during the year was to a large extent driven by higher imports from Kenya and Tanzania.
Imports from Kenya were mainly intermediate products and raw materials for the preparation of animal feeds.
According to the 2019 EAC report the increase of intra-trade reported during the year was to a large extent driven by higher imports from Kenya and Tanzania.
Imports from Kenya were mainly intermediate products and raw materials for the preparation of animal feeds.
Exports from Tanzania mainly consisted of paper and paperboard, and ceramic products, the report reads in part.
Tanzania’s key imports from the EAC partners included pharmaceuticals products, soaps, plastic items and other consumer goods.
During the meeting Mr Mathuki also stated that in fostering trade the EAC secretariat will be making visits across the border points in the next six months.
Tanzania’s key imports from the EAC partners included pharmaceuticals products, soaps, plastic items and other consumer goods.
During the meeting Mr Mathuki also stated that in fostering trade the EAC secretariat will be making visits across the border points in the next six months.
Border visits are aimed to resolve issues hindering cross-border trade and to seek lasting solutions to the crisis.
He added that a verification team will soon be dispatched to the Democratic Republic of Congo (DRC) to work on the country's admission to EAC.
According to him, DRC would provide a vast market for goods that EAC’s small and medium enterprises (SMEs) can sell there.
The executive director of Private Sector Foundation Uganda (PSFU) Mr Gideon Badagawa said besides NTBs) business stakeholders in the region must have a harmonized approach to Covid-19.
The executive director of Private Sector Foundation Uganda (PSFU) Mr Gideon Badagawa said besides NTBs) business stakeholders in the region must have a harmonized approach to Covid-19.
He said the pandemic has devastated key economic sectors in the region such as tourism and that EAC states must work jointly on revival efforts.
During his visit to Rwanda, Dr. Mathuki reiterated EAC's resolve to work closely with the private sector to boost economic integration.
He said it was the vision of the EAC founding fathers to use the private sector so as to create wealth and employment in the integration process.
He said in his address to the CEOs in Kigali that he would go "an extra mile" to improve the working relationship between the policy makers and the business community.
This can be realized through Public-Private Sector
dialogue initiatives. The initiatives would also seek ways to attract more investments into the region.
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