EABC renews call for Regional Integrated Trade Framework

Kampala, (UG):- The East African Business Council (EABC) has initiated discussions on establishing a regional integrated trade framework to address regulatory barriers and enhance business cooperation within the East African Community (EAC).

This was the focus of a two-day consultative meeting held at Kabira Country Club in Uganda from February 24–25, 2025, bringing together policymakers, industry leaders, and business stakeholders.

Opening the session, Uganda’s representative on the EABC Board in Arusha, Oscar Kamukama, emphasized the significance of the services sector in driving economic growth. Kamukama highlighted its contribution of 40% to 55% of the EAC’s GDP but noted that regulatory barriers and market fragmentation continue to stifle progress.

The EABC boss underscored the meeting’s objective to craft a “SMART Regional Services Policy Advocacy Agenda” and establish mechanisms for sustained dialogue between businesses and policymakers.

The meeting also featured insights from Ms. Nderitu Agatha, Managing Director of ATEAS Ltd, who outlined Uganda’s steady services sector growth. She revealed that since 2023, Uganda’s services output has expanded at an average rate of 6.2%, making it a key employer in the region, with 66.3% of the workforce engaged in service-related jobs, second only to Burundi at 85.1%.

Agatha, who is also an independent senior consultant from Nairobi, noted that despite disruptions from the COVID-19 pandemic, the sector rebounded strongly with a 22% growth in 2022.

She further highlighted the ICT sector as a major driver of trade expansion, recording a 375% growth and generating UGX 3.82 trillion in revenue by 2022. Key areas such as telecoms, digital services, and computer-related industries accounted for 54% of the region’s total exports, underscoring the sector’s role in economic transformation.

Agatha also pointed to the need for improved infrastructure, better policy coordination, and increased investment in digital services to sustain this growth.

Other stakeholders raised concerns over high freight costs, inefficient border procedures, excessive taxation, and regulatory inconsistencies, which continue to stifle cross-border trade. The lack of harmonized traffic regulations and the refusal of some EAC member states, particularly Tanzania, to accept national IDs for travel were cited as key obstacles to seamless trade.

Additionally, challenges such as poor road conditions in the Democratic Republic of Congo and South Sudan, corruption among border officials, and political instability in certain regions were identified as major trade impediments.

The meeting also examined the role of digital trade and media in fostering regional integration. George Ssemaganda, a computer science researcher at Makerere University, called for increased investment in broadband expansion, reduced taxation on digital services, and policy harmonization to encourage e-commerce and ICT-driven trade.

He emphasized the need to eliminate high roaming charges and regulatory disparities that impede cross-border communication and business transactions.

The tourism and hospitality sector was another area of focus, with participants advocating for the adoption of a single East African Tourism Visa to attract more international visitors. Concerns were raised over high park fees, multiple licensing requirements, and inadequate marketing strategies that limit the region’s competitiveness in global tourism.

Stakeholders urged the EABC to champion policies that promote digital transformation in the sector, strengthen security protocols for tourists, and facilitate public-private partnerships to enhance tourism infrastructure.

The EABC secretariat reaffirmed its commitment to advocating for business-friendly policies, facilitating trade negotiations, and strengthening public-private partnerships to create a more integrated and competitive regional services market.