Archives: Publications

Unlocking trade potential through a new model that quantifies the cost of non-tariff barriers in East Africa

Over the past two decades, non-tariff barriers (NTBs) have emerged as the most persistent and complex challenge to international trade, with their prevalence steadily rising across the world. The East African Community (EAC) has not been immune to this trend, with NTBs continuing to evolve in form and scope, creating significant obstacles to the seamless flow of goods and services across the region. In 2021 alone, NTBs reported for the first time within the EAC accounted for over four percent of the total existing barriers, underscoring the enormity of the problem. In response to this, EAC Partner States have taken steps to address these trade impediments, including the enactment of the EAC Elimination of Non-Tariff Barriers Act, 2017. This legislation provides a structured legal framework for monitoring and resolving NTBs, supported by tools such as the Time-Bound Programme for NTBs elimination and various directives, regulations, and recommendations issued by the EAC Council of Ministers. Despite these efforts, the region has faced a longstanding challenge in quantifying the actual impact of NTBs and, more importantly, the benefits of their removal. Without this data, it is difficult to prioritise interventions and allocate resources effectively. To address this gap, a recent study has developed a model designed to estimate the impact of NTBs within the EAC, with a specific focus on those arising along the Northern and Central transport corridors. The study reviewed existing techniques for measuring the impacts of NTBs, identified specific NTBs in the region responsive to quantification, and formulated a...

Unlocking East African Community (EAC)’s export potential under the AfCFTA

The East African Community (EAC) is poised to reap substantial benefits from enhanced trade integration across the African continent, particularly through the African Continental Free Trade Area (AfCFTA). A recent study, titled “Export Trade Potential of the East African Community under the Africa Continental Free Trade Area (AfCFTA) 2024,” indicates that the region's total export potential under the AfCFTA is estimated at approximately $1.9 billion, presenting a significant pathway for economic transformation. Leveraging the International Trade Centre (ITC)’s methodology, the research pinpoints high-potential export products within EAC member states. Kenya, Tanzania, and the Democratic Republic of Congo (DRC) exhibit the most significant export potential, while South Africa, Egypt, and Zambia are identified as key African markets for EAC goods. Specific sectoral opportunities highlighted include tea from Kenya, processed cereals from Burundi, mineral products from Tanzania, and metals from the DRC. Beyond these specific product opportunities, the AfCFTA offers broader advantages encompassing improved market access, increased investments, industrial expansion, and strengthened regional cooperation. It is also expected to stimulate growth in crucial EAC sectors such as agriculture, pharmaceuticals, automotive, and logistics, while simultaneously accelerating digital trade and infrastructure development within the region. To fully realize this potential, the report recommends that EAC Member States prioritize investments in value addition to enhance product competitiveness, foster the development of industrial clusters, improve access to finance for businesses, and provide support for women traders to promote inclusive growth. Furthermore, the implementation of measures like export insurance schemes, duty remission programs, and advancements in digital...

TradeMark Africa’s Top Agricultural Commodities and Destinations Report – May 2024

Download The Report Here East Africa’s agricultural trade is evolving, with commodities such as tea, coffee, cereals, and edible vegetables driving exports across the East African Community (EAC) and Inter-Governmental Authority on Development (IGAD) regions. Tea, in particular, stands out as a major export with strong global market performance, while cereals show a mixed trend, with both significant exports and rising imports—especially for staple foods such as maize, rice, and wheat—highlighting the region’s need to supplement local production. Trade within the region remains strong, with Kenya emerging as a central hub, facilitating the movement of goods across both EAC and IGAD countries. Uganda, Tanzania, Rwanda, and Burundi primarily engage in intra-regional trade, while Ethiopia’s exports extend beyond the EAC, reaching markets such as Somalia, Djibouti, Egypt, South Africa, and Kenya. Other important trade partners include Egypt, South Africa, and the Democratic Republic of Congo (DRC), reinforcing the interconnectedness of Africa’s agricultural markets. However, challenges persist. Trade imbalances, infrastructure gaps, and shifting market demands require urgent policy interventions. Harmonising trade policies, improving infrastructure, and building capacity among producers and exporters will be crucial for sustaining growth. Additionally, diversifying exports, strengthening climate resilience, and enhancing data-sharing mechanisms will ensure that agricultural trade continues to thrive in an increasingly competitive global landscape. With the right strategies in place, East Africa has the potential to solidify its position as a major player in agricultural trade, driving economic development and food security across the region.

The East African Community Non-Tariff Barriers Factbook and Toolkit

Understanding non-tariff barriers in the East African Community Non-Tariff Barriers (NTBs) play a significant role in increasing the cost and time of trade or doing business or simply impede trade between or amongst partner states. The East African Community (EAC) Elimination of Non-Tariff Barriers Act 2017 refers to NTBs as laws, regulations, administrative and technical requirements other than tariffs imposed by a Partner State, whose effect is to impede trade. Many of the regulations and technical requirements that affect trade – rising from Non-Tariff Measures (NTMs) – serve legitimate policy objectives to safeguard public health or the environment.  The EAC Elimination of Non-Tariff Barriers Regulations, 2017 highlights that one aspect of what makes an NTM an NTB is whether a “measure is discriminatory and restricts trade directly or indirectly. This factbook and toolkit provides an overview of the various categories of NTBs, why NTBs are harmful and how to identify, report and monitoring the resolution of NTBs in EAC context.