Barriers hamper trade within EAC countries
Kenya Broadcasting Corporation
Barriers hamper trade within EAC countries
By O’brien Kimani
1 August 2008
Border barriers remain the biggest challenge to the realization of cross-border trading within the East Africa Community, EAC.
To this end the five EAC member states are working on creating an electronic tracking system of goods moving within the region.
Speaking during the release of a study analyzing the impact of the EAC Customs Union on the business community, Permanent Secretary in the ministry of East African Community David Nalo says the tracking system will help enhance trade in the region.
The five EAC member states plan to eliminate tariff barriers to turn the region into a Free Trade Area, FTA, in two years time.
In the new FTA agreements goods from the five EAC members are expected to move in the region without being subjected to the rigorous inspection they are currently being subjected to.
But the sailing has not been smooth as the plan continues to encounter more teething problems.
Among the issues cited as the greatest barriers to trade includes high energy tariffs, infrastructure and border barriers.
But despite the many challenges intra border trade increased from seven hundred million dollars in 2003 to the more than one billion dollars currently with Kenya accounting for more than 50% of the trade.
The study which was carried out by the East Africa Business Council called for the EAC members among them Kenya, Uganda, Tanzania, Burundi and Rwanda to review electricity tariffs while improving the business environment.
Nalo assured EABC of the government’s commitment towards eliminating the barriers.
