See why East Africa lost out on $1.8 billion in trade revenue

A new fall in intra-regional trade in East Africa is being forced by the slow implementation of agreed taxation legislation and tight trading procedures, which is costing the sub-continent's economy millions of dollars.A recent study on regional commerce indicates that although the government has approved crucial policies, its implementation has been delayed. As a result, member states of the East African Community routinely impose non-tariff trade barriers (NTBs) and repeatedly ask for preferential tax treatment and exemptions, in violation of the Common Market Protocol and counter to the objectives of regional integration. According to the Intra-EAC Trade Brief Analysis report from the East African Business Council (EABC), trade between EAC member states fell by more than 33 percent ($1.8 billion), to $3.6 billion in 2022 from $5.4 billion in 2021.In accordance with the amended tariff system, intermediate items that are unavailable in the EAC area are subject to a 10% tax. At the same time, capital goods and raw materials are exempt from import duties. While imported finished goods are subject to a 35% import charge, regionally accessible intermediate products are subject to a 25% tariff.