Opportunities for East African Businesses
The AfCFTA offers an opportunity for East African businesses to tap into under-exploited African export markets and source cheaper inputs and intermediates from African suppliers outside the EAC.
- The AfCFTA upon full implementation is expected to put in place measures that will help reduce red tape, simplify customs procedures, and make it easier for East African businesses to integrate into continental and global supply chains.
- The agreement will reduce tariffs among EAC member countries and cover policy areas such as trade facilitation and services, as well as regulatory measures such as sanitary standards and technical barriers to trade.
- By increasing regional trade, lowering trade costs and streamlining border procedures, full implementation of AfCFTA would help East African countries increase their resiliency in the face of future economic shocks.
At the same time, the Agreement will introduce greater competition for East African businesses which means that several complementary supply side reforms will be required to boost productivity.