EABC urges removal of trade barriers to unlock East Africa’s growth

The East African Business Council (EABC) has called for the removal of non-tariff barriers and harmonisation of standards to boost intra-EAC trade and attract more investment into the region.

Speaking at the CEOs–Trade and Investment Roundtable in Nairobi, EABC Executive Director Ahmed Farah said East Africa has a large but underutilised market that could drive Kenya’s next phase of economic growth.

“The East African Community is not just a neighbouring market—it is Kenya’s next growth frontier,” Farah said.

He noted that intra-EAC trade stands at USD 19.7 billion (Ksh.2.5 trillion), compared with a regional economy valued at 357 billion dollars (Ksh.46 trillion), pointing to significant room for expansion.

Farah said the priority should be to make the regional market more competitive and predictable by eliminating non-tariff barriers, harmonising standards, lowering logistics costs and ensuring member states implement regional commitments.

Kenya Investment Authority representative John Mwendwa said East Africa attracted about 14.6 billion dollars (Ksh.1.9 trillion) in foreign direct investment, accounting for about 21 percent of Africa’s 70 billion-dollar FDI inflows.

Mwendwa said investors are primarily looking for scale, predictability, skilled talent, market access and opportunities to participate in regional value chains.

He called for EAC countries to develop deeper value chains by complementing rather than competing against each other, while improving digital integration and interoperability of government systems.

Trade Catalyst Africa CEO Duncan Onyango said poor infrastructure, border clearance procedures and weak financial systems continue to undermine business competitiveness.

“Number one, we must fix the trade corridors. Number two, we must finance our SMEs. And number three, we must strengthen the systems of trust, liquidity and investment that underpin both the corridors and SMEs,” Onyango said.

RSM Eastern Africa Executive Chairman Ashif Kassam said the EAC has eight member states and a population of more than 360 million, but intra-regional trade accounts for only 15 per cent of total regional trade.

He said regional trade grew by 28 per cent in 2025, leaving an estimated 30 to 50 per cent of potential regional trade yet to be realised.

Kassam identified non-tariff barriers, regulatory fragmentation, border delays, high logistics and electricity costs, weak digital systems and cross-border payment challenges as major obstacles.

He urged governments to focus on implementing existing EAC agreements, improving border efficiency, strengthening digital systems and cross-border payments, and developing regional value chains.

Meanwhile, East African Development Bank (EADB) Country Manager Angela Muga said the bank is providing long-term financing and sector expertise to support businesses and SMEs in agriculture, manufacturing, infrastructure, renewable energy and other sectors.

The discussions also unveiled the East Africa CEO & Investment Forum 2026, scheduled for September 17–18 in Nairobi, which will seek to catalyse investment partnerships and strengthen the region’s trade and competitiveness agenda.