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Political squabbles, old rules impede EAC trade gains

Monday November 26 2018
EAC tradeImage

Containers yards in Dar es Salaam.According to experts,trade andintegration efforts on the EAC bloc are still handicapped by some member states that set up protectionist policies which leaves the region fragmented.PHOTO | Cyril NDEGEYA

By MOSES K. GAHIGI

Archaic trade regulations, which are as many as 600, an unexploited blue economy and squabbles between East African member states are some of the issues that continue to impede trade and integration efforts, according to experts at a meeting to fast-track the bloc’s implementation of AfCFTA.

The officials pointed out that the region is still largely fragmented, with member states pursuing protectionist policies, which if not addressed will continue to handicap the region and hamper economic gains.

“Trade flows are declining and all this has a bearing on political will,” said Richard Sezibera, Rwanda’s Minister of Foreign Affairs and Regional Co-operation during the Ad Hoc expert group meeting hosted by the United Nations Economic Commission sub-regional office for Eastern Africa.

Despite these issues, the region has registered strong growth, being ranked the fastest growing bloc on the continent with an annual average growth rate of 6.7 per cent between 2013 and 2017. This growth was driven by an improvement in agriculture production, sustained infrastructure investment.

The growth rate is expected to grow by six per cent in 2018 and 6.2 per cent in 2019. Officials said there is a need to reverse the trend where the region’s blue economy is in the hands of China, India and Japan, by calling for collective investment and developing value chains.

Despite the commendable growth, the rate of job creation has been disappointing, with an estimated annual growth in the labour force of around three per cent. East African countries will also need to sustain an average GDP growth rate of at least six per.

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