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The regional authorities must take immediate action to address issues that affect a conducive and thriving environment for cross-border trade, The East African Legislative Assembly (EALA), has said.

The regional Parliament has observed the need to analyze and resolve the challenges to enhance cross-border trade opportunities for all stakeholders.

EALA is committed to promoting regional integration and economic development.

“Therefore, the EALA urges the governments of member countries to prioritize the facilitation of easier movement of goods and services across borders, eliminating any unnecessary obstacles and red tape that impede trade activities,” MPs noted.

EALA Speaker, Joseph Ntakirutimana and his team observed a stakeholders’ engagement session to hear first-hand the challenges facing cross-border trade in the East African Community (EAC) region.

The interactive session kicked off at the Kenyatta International Convention Centre (KICC) in Nairobi, Kenya brought together key industry players and representatives from various trade organizations in the community.

The session featured an open dialogue with prominent stakeholders, including the Kenya Investments Authority, Kenya Association of Manufacturers, Kenya National Chamber of Commerce and Industry, East African Grain Council, Micro Small and Medium Scale Enterprises, and the Kenya Private Sector Alliance.

The session was moderated by Honorable Kanini Kega, a member of EALA, and Stephen Analo, a trade expert from the EAC, also provided valuable insights into the matter.

During the engagement, traders candidly expressed the challenges they encounter in cross-border trade within the EAC.

The challenges include significant delays at the border points, the issue of double taxation, harassment faced by traders from some member states, protectionism exhibited by certain member countries, security concerns in some member states, the existence of numerous illegal roadblocks, and the imposition of excessive tariffs on goods and services.

These challenges have hindered the growth and development of cross-border trade, limiting the potential for economic integration and cooperation within the EAC.

The engagement serves as a significant step towards creating a more favorable business environment within the EAC, ensuring that traders can fully capitalize on the economic potential of the region.

By addressing the concerns stakeholders raise, the EALA seeks to strengthen regional trade relations, improve economic growth, and enhance the overall welfare of East African communities.

Uganda's trade with EAC

In December 2023, Uganda traded at a surplus of $22.30 million with the rest of the EAC Partner States, a shift from a deficit of $22.67 million recorded the previous month.

This was mainly on account of the trade surpluses recorded with the Democratic Republic of Congo, South Sudan, Rwanda, and Burundi which more than offset the deficits registered with Tanzania and Kenya.

The performance of the economy report for January 2024 released by the Ministry of Finance indicated that the perception of doing business in Uganda improved.