East African Community Ministers adopt measures to boost trade and Industrialization in the region

The East African Community has adopted a series of strategic measures aimed at strengthening regional trade, accelerating industrial development, and enhancing the competitiveness of regional economies.

This follows the conclusion of the 48th Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) held in Arusha, Tanzania.

The meeting brought together Ministers responsible for Trade, Industry, Finance and EAC Affairs, Permanent and Principal Secretaries, senior government officials, and technical experts from all EAC Partner States.

The East African Community Secretary General, Stephen Mbundi, observed that the Council was convening at a time of heightened geopolitical tension, disrupted maritime trade routes, growing protectionism, and supply chain vulnerabilities affecting global trade.

“To cushion the region against these shocks, he called for a stronger internal market, a reduced cost of doing business, and faster implementation of regional integration commitments, including the resolution of all outstanding Non-Tariff Barriers,” he stated.

Accelerating Customs and Trade Facilitation Reforms

The Sectoral Council welcomed the completion and endorsement of the Time Release Studies for the Northern and Central Corridors, which assess cargo clearance times and identify opportunities for further simplifying and harmonizing customs procedures.

The study confirmed that closer collaboration among customs administrations, border agencies, and the private sector has improved the efficiency of regional supply chains, while highlighting areas still requiring operational reform.

They also adopted a structured framework for monitoring implementation of the EAC Customs Union Protocol, creating a systematic mechanism to assess Partner States’ compliance with regional obligations. Approved adjustments were also made to onboard South Sudan into regional customs data-sharing arrangements.

Renewed Commitment to Elimination of Non-Tariff Barriers

The Sectoral Council considered proposals aimed at strengthening the legal framework governing the elimination of Non-Tariff Barriers including mechanisms for imposing sanctions and providing compensation in cases where traders incur losses due to illegal taxes or unauthorized trade restrictions.

These proposals are set to undergo comprehensive technical and legal review before being considered for adoption through the appropriate institutional processes.

Promoting Industrialization and Regional Value Addition

The East African Community (EAC) Rules of Origin 2015 were comprehensively reviewed after extensive consultations and approved by SCTIFI. This is a fundamental pillar of the Customs Union that determines eligibility for preferential tariff treatment within the region. Legal scrubbing is ongoing before implementation.

The EAC and Singapore FTA

The Sectoral Council noted a growing number of countries seeking formal trade arrangements with the EAC, a sign of rising international interest in stronger economic partnerships with the bloc. Among them is the Government of Singapore, which has submitted a formal proposal to launch negotiations for an EAC–Singapore Free Trade Agreement.

The Sectoral Council endorsed continued engagement with Singapore and directed the Secretariat to undertake the technical preparatory work, including an initial negotiation framework.

The Ministers agreed that any future negotiations should follow a coordinated regional approach reflecting the Community’s collective interests and remaining consistent with existing and planned trade agreements and stressed the need for a structured mechanism to prioritize and sequence future FTA negotiations.

Adoption of Pre-Budget Fiscal Measures

The Sectoral Council took note of the outcomes of the 2026/2027 Pre-Budget Consultations of Ministers of Finance and endorsed the implementation of agreed fiscal measures under the Common External Tariff framework.

These measures provide the legal and policy framework for the implementation of the EAC Common External Tariff and are currently undergoing gazettement to enable their entry into force on 1 July 2026.

Key Decisions and Implementation Timelines

To facilitate effective implementation of the Sectoral Council’s decisions, several important timelines were agreed upon:

1. Finalization of technical analysis on outstanding Customs and trade facilitation matters by 30 August 2026;

2. Convening of the Regional Steering Committee to conclude ongoing technical trade facilitation workstreams by 30 September 2026;

3. Submission by Partner States of recommendations on inputs for the regional duty remission framework by 30 September 2026;

4. Gazettement of approved fiscal measures by 30 June 2026.

The Ministers emphasized that effective implementation of Sectoral Council decisions, timely remittance of Partner States’ statutory contributions, and continued collaboration among regional institutions will be essential for realizing the Community’s shared vision of a prosperous, competitive, and fully integrated East Africa.