There is a need for particularly effective business representation in high-level East African Community policy decision-making meetings on relevant cross-border trade and investment issues in the EAC region, Angelina Ngalula, who was elected as the new chairperson of East African Business Council (EABC) has said.
The EAC common market protocol seeks free movement of goods, free movement of persons, free movement of workers, right of establishment, right of residence, free movement of services, free movement of capital, use of a single currency for daily transactions within the Common Market, political federation as well as the customs union.
Ngalula said that one of her key assignments is to ensure that EABC remains a real partner in all spheres of the EAC integration process as the apex body of the private sector in the region.
However, she said, this will require collective efforts from the entire membership.
The chairperson of Tanzania Private Sector Foundation was elected as the first woman to chair EABC council for two years during the annual general assembly in Kigali held on June 20.
"My task among others as Chairman is to strongly advocate for partner states to address the impediments to our intra-EAC regional trade and ensure that the partner states adhere to the EAC Common Market and Customs Union protocols,” she said.
Coping with Covid-19 impact
As the outbreak of COVID-19 slowed down most economic activities especially trade and investment, the total trade for EAC declined by 6.08 percent to USD51.9 billion in 2020 from USD55.2 billion in 2019.
Total exports from the region in the same period increased by 3.15 percent to USD16 billion from USD15 billion in 2019. Intra-EAC trade was at USD 5.9 billion in 2020.
"As we address impediments to our intra- EAC trade, at the continental level, the African Continental Free Trade Area is an opportunity and prospect for East Africa’s and Africa’s economic growth. The African Continental Free Trade Area is set to increase Africa’s real income by 7 percent to USD 450 billion and intra-African trade by 2035,” she said.
Addressing high inflation, rising interest rates
Ngalula noted that Africa’s economic recovery has been hindered by higher inflation, tighter global financial conditions, and rising interest rates, adding that the Ukraine crisis has compounded the situation further.
"These global disruptions call for the need for deeper integration. East Africa is the leading regional economic bloc in Africa and as the private sector, we are committed to championing the implementation of the African Continental Free Trade Area,” she said.
We have to speak with one voice at the continental level and ensure EABC is mandated and recognised as the Focal Point on private sector engagement in East Africa by the African Continental Free Trade Area Secretariat, she added.
She said that solutions should be crafted to boost intra-African trade and build forward better Africa’s economic growth.
"My term in office will focus on working with our secretariat to implement the EABC strategy 2022-2027 and advocacy on issues outlined in our EABC Policy Advocacy Agenda in order to address sectoral and cross-cutting trade policy barriers and discrepancies in the implementation of the East African Community Customs Union and Common Market Protocols,” she added.
Attracting more investments in EAC region
She said that effective EAC Investment Policy is needed to attract more Investments into the EAC region.
"We will work with key stakeholders in developing a holistic approach to grow a synergetic model for sustainable private sector development and strengthen the Sectoral Specific Desks of Manufacturing, Trade in Services, Agribusiness, Energy and Infrastructure and SMEs, youth, women in business,” the new chairperson pledged.
She added that there is a need for working with National Apex Private Sector Associations, regional and sectoral associations in the EAC region to harmonise policy positions on cross border trade and investment matters and ensure borderless East Africa for business and investment.
"EABC will create value-adding services to members in a bid to seize the opportunities availed by the EAC Common Market Protocol and the African Continental Free Trade Trade Area,” she said.
Persistence of non-tariff barriers
The Executive Director of East African Business Council (EABC), John Bosco Kalisa said that there is commendable work that has been done but there still remain barriers that are affecting the business environment in the region.
"We have carried out advocacy on non-tariff barriers, customs and infrastructure related issues that do affect trade. However, the biggest challenge is non-tariff barriers that persist. The barriers at the border inhibit the goods and persons to cross the border. Our advocacy agenda is to remove those barriers. Governments must build a good environment for the private sector to thrive,” he said.
Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.
He said that the persistence of the barriers are caused by countries looking for their own interests adding that digital trade is one of the solutions to address non-tariff barriers.