USAID and TradeMark Africa Partner with EABC to Boost Trade Opportunities Under AfCFTA

 

 A new partnership between USAID, TradeMark Africa (TMA), and the East African Business Council (EABC), worth $508,000, aims to enhance trade opportunities for 220 private sector enterprises, including Small and Medium Enterprises (SMEs), as well as 3,000 farmers, processors, and business owners. 

The initiative will focus on unlocking the trading potential of these groups within the African Continental Free Trade Area (AfCFTA), the world’s largest free trade zone, covering 55 African Union member states was signed up Nairobi, Kenya, September 11, 2024.

A study conducted by TMA and the East African Community (EAC) Secretariat estimates the trade potential of the EAC within AfCFTA at $1.9 billion. Kenya leads with the highest trade potential at $705.5 million, followed by Tanzania at $594 million, the Democratic Republic of Congo at $342 million, Uganda at $178.2 million, Rwanda at $36.1 million, and Burundi at $1.3 million.

The three-year initiative, funded by the USAID Economic Recovery and Reform Activity (USAID-ERRA), will focus on eliminating trade barriers, particularly in key agricultural sectors like tea, coffee, rice, vegetables, cotton, textiles, and garments. 

The EABC will also work to resolve 12 major non-tariff barriers and create business-to-business market linkages to drive trade under the AfCFTA.

David Rogers, Deputy Director of USAID Kenya and East Africa, highlighted the importance of regional cooperation, stating, “This initiative emphasizes the need for greater collaboration across the region and continuous engagement with policymakers and the private sector on AfCFTA-related issues.”

David Beer, CEO of TMA, noted the crucial role of the private sector in the process: “Private sector involvement is key to ensuring a unified message from businesses to policymakers at national, regional, and continental levels.”

Adrian Njau, Acting Executive Director of EABC, added: “This partnership will empower women, youth, SMEs, and other value chain actors to access trade policy instruments and take advantage of intra-African trade opportunities.” 

He also mentioned that the initiative will involve key stakeholders like the East African Women in Business Platform (EAWiBP), the East African Sub-Regional Support Initiative for the Advancement of Women (EASSI), and YouLead. 

This effort is expected to significantly reduce trade constraints and boost market access for high-potential agricultural products, driving inclusive economic growth across the region.