Regulatory barriers, market fragmentation failing EAC services sector
Kamukama noted that the services sector in the EAC region has been instrumental in shaping the economic transformation of the region, with services contributing between 40-55% of the region’s GDP.
Kamukama noted that although the sector holds immense promise in fostering sustainable development, investment, and job creation, challenges such as regulatory barriers and market fragmentation continue to impede its full realisation.
By NewVision Reporter
Journalists @NewVision
By Prossy Nandudu
KAMPALA - The chairman of the East African Business Council Oscar Kamukama has called for the standardisation of licensing requirements, taxes and mutual recognition of service providers to tap into the bigger East African Community (EAC) market.
He made the call on February 25, 2025, at the end of the two-day consultative meeting on the development of the Regional Services Policy Advocacy Agenda and mechanisms to institutionalise dialogue and advocacy at Kabira Country Club in Kampala.
The policy agenda aims to strengthen collaborative efforts among stakeholders to ensure better policies, services and advocacy platforms across various sectors.
Kamukama noted that the services sector in the EAC region has been instrumental in shaping the economic transformation of the region, with services contributing between 40-55% of the region’s GDP.
He, however, noted that although the sector holds immense promise in fostering sustainable development, investment, and job creation, challenges such as regulatory barriers and market fragmentation continue to impede its full realisation.
“Standardising licensing requirements, taxes and the mutual recognition of service providers and services in the EAC region will help the sector realise its potential in the regional market,” he said.
In the same event, Agaba Collins, the sector co-ordinator for trade, transport, and logistics at the Private Sector Foundation Uganda (PSFU), emphasized the need to advocate for the operationalisation of the already signed mutual recognition agreements (MRAs) for service providers to promote the free movement of services and service providers, as provided for by the signed EAC Common Market Protocol.
Lamech Wesonga, the Economic policy advisor to EAC Secretariat on the African Continental Free Trade Area (AfCFTA), called on the private sector in the services space to engage to identify restrictions and propose an institutionalised advocacy mechanism at the regional level for consideration and action by the EAC Secretariat and governments.
Senior export promotion officer at the EAC Secretariat Annette Kenganzi commended the EABC for organising such an important workshop and highlighted the progress made through the seven committed service sectors of business, distribution, education, finance, communication, tourism & travel-related services, and transport.
She stated that negotiations for the liberalisation of the remaining five sectors construction, environmental, health, recreational, culture & sporting services, among others are in progress and urged the private sector, through the EABC, to take part.
The consultative workshop, supported by GIZ, brought together over 40 private sector representatives from diverse industries, including transport and logistics, the health sector, engineering services, professional services, and the ICT sector, among others.
It was aimed at supporting the EABC in creating an institutionalized mechanism to channel restrictions and advocate for the liberalization of trade in services.