East African Business Council urges removal of cross-border trade barriers

The Namanga border post on the Kenya-Tanzania border. FILE PHOTO |

What you need to know:

  • EABC chairman Felix Mosha noted that new non-tariff barriers (NTBs) are cropping up even as the region races to eliminate old ones.
  • The council has urged greater involvement of the private sector and civil society in regional project activities.

A regional business lobby has called on the East African Community (EAC) secretariat and its member states to address challenges that are crippling trade within the bloc.

The East African Business Council (EABC) through its chair Felix Mosha asked that key policies and protocols be streamlined to facilitate trade.

“Some of these challenges include the slow pace of implementation of the EAC common market protocol and harmonisation of laws and policies in the region,” said Mr Mosha in a statement read on his behalf at the annual forum last week in Entebbe, Uganda.

The 2010 East African Common Market Protocol provides for free movement of goods, labour, services and capital to boost regional trade.

The chairman also noted that work permits are still very expensive and require elaborate paperwork which makes the process long and tedious.

NEW BARRIERS

Mr Mosha noted that new non-tariff barriers (NTBs) are cropping up even as the region races to eliminate old ones.

EAC Secretary-General Richard Ssezibera echoed the sentiments in his speech.

“To date, 55 NTBs have been resolved, 22 remain unresolved and six new ones have been identified,” he said.

Other challenges facing the region include the portability of social security benefits within the EAC common market.

“There is a challenge of food security and climate change mitigation and adaptation,” Mr Mosha noted.

The EABC also cited access to affordable finance in relation to economic growth in the bloc and the ability of banks to facilitate cross-border banking as challenges to regional trade.

“Women in business continue to face challenges in transacting their businesses across the borders due to harassment and lack of information,” he said.

The poor state of infrastructure and limited participation of small-scale officers as a result of the challenges facing the agricultural sector were also identified as factors limiting trade.

“There is a need to address these challenges to accelerate the regional integration and make EAC our home, our business,” said Mr Mosha.

PRIVATE SECTOR INVOLVEMENT

The council has urged greater involvement of the private sector and civil society in regional project activities mostly through consultative dialogue frameworks as part of efforts to boost regional trade and investments.

Mr Mosha said that people-centred and private sector-driven integration needs to be emphasised to build confidence in citizen ownership of integration.

“The EAC and partner states should enhance the involvement of private sector organisations (PSOs) and civil society organisations in each delegation of the EAC project activities and meeting, adequate consultation.”

He also called on the private sector, civil society and other interest groups to take responsibility and pledge commitments and roles to making the EAC “our home and our business”.

According to Mr Ssezibera, while all member countries are making efforts to implement commitments to the Customs Union and Common Market Protocol, some challenges persist in terms of trade facilitation and movement of people, goods, capital and labour across all partner states.