EAC streamlines trade, boosting "Made in Uganda" exports

The East African Community (EAC) is taking significant steps to bolster regional trade and industrial growth, a move that Ugandan manufacturers anticipate will significantly reduce bureaucratic hurdles and expand market access for locally produced goods.

The core of these new initiatives involves a renewed commitment to eliminating non-tariff barriers and accelerating value addition for goods manufactured within the region. For Ugandan businesses, this translates to potentially fewer delays at border crossings like Malaba and Busia, leading to reduced transit costs and smoother entry into markets like Kenya, Tanzania, Rwanda, Burundi, and South Sudan.

A key outcome from the recent ministerial meeting is the agreement to harmonize documentation and expand electronic cargo tracking systems across all EAC borders. For years, lengthy delays due to duplicated paperwork and manual inspections have plagued traders. The new digital approach aims to ensure a single set of documents can be used for transit from Uganda to any other EAC member state, directly addressing a major cost driver for Ugandan exports.

Furthermore, the EAC Council has endorsed new regional incentives specifically targeting sectors such as agro-processing, textiles, pharmaceuticals, and building materials. The objective is to make it more financially viable to process raw materials within the region rather than exporting them in their raw form, positioning Uganda to benefit from its agricultural and manufacturing base.

Product standards are also being addressed through faster mutual recognition. This means a product certified by the Uganda National Bureau of Standards will be accepted by regulatory bodies in other EAC countries without requiring costly re-testing. This simplification is expected to greatly benefit small and medium-sized manufacturers who often struggle with disparate testing requirements.

Additionally, a framework is being established to improve access to regional funding and credit guarantees for small and medium-sized enterprises (SMEs). This aims to provide the necessary capital for smaller businesses to scale up their operations and participate more effectively in regional supply chains.

The EAC Secretariat has been tasked with reporting on border clearance times and the registration of new industrial projects within six months, setting a clear timeline for implementation.

https://www.monitor.co.ug/uganda/news/national/how-eac-moves-to-strengthen-regional-trade-5488016