East Africa’s private sector has issued a call for action, warning that the region risks missing its integration targets unless governments move decisively from policy reform to implementation.
That message dominated the East African Business and Investment Summit & Expo 2026 (EABIS 2026), held in Nairobi from February 24–25, where more than 450 delegates — including ministers, senior officials, investors and industry leaders — gathered under the theme: "Promoting Private Sector-Driven Regional Integration for Increased Intra- and Extra-EAC Trade and Investment.”
Despite two decades of progress under the Customs Union and Common Market, intra-EAC trade remains below 15 per cent of total trade — far short of the bloc’s 40 per cent target by 2030.
"East Africa stands at a pivotal moment in its economic transformation,” said John Lual Akol Akol, Chairperson of the East African Business Council (EABC). "While intra-EAC trade has shown encouraging growth, it remains below 15 per cent of total EAC trade — significantly short of the shared target of 40 percent by 2030.”
He urged stakeholders to "move decisively from reform to tangible results.”
Non-tariff barriers remain high
The summit’s resolutions, signed by Beatrice Askul Moe, Chairperson of the EAC Council of Ministers, reflects growing impatience within the private sector over persistent non-tariff barriers (NTBs), fragmented regulations and high trade costs.
While tariffs on most intra-regional goods have been eliminated, NTBs remain a major obstacle. Over the past decade, more than 200 NTBs have been recorded and addressed, yet new barriers continue to emerge annually.
Dr. Jas Bedi, Chairperson of the Kenya Private Sector Alliance (KEPSA), said addressing "non-tariff barriers, regulatory inconsistencies, and unpredictable tax regimes is critical to lowering the cost of doing business and strengthening investor confidence.”
He called for greater investment in trade-enabling infrastructure, digital connectivity and paperless customs systems to improve competitiveness.
Officials noted that full operationalization of the Single Customs Territory (SCT), harmonized VAT and excise regimes, and uniform application of the Common External Tariff are not technical adjustments — they are growth multipliers.
They said that if goods move seamlessly across borders, firms can produce at scale, specialize and integrate supply chains across partner states, thereby enabling regional blocs to increase internal trade ratios and strengthen economic resilience.
Partner states were also urged to uniformly apply the Common External Tariff to safeguard industrial investments and promote regional value chains in pharmaceuticals, motor vehicles, textiles, leather and agro-processing.
On services trade, a fast-growing but fragmented sector, CEOs pushed for harmonized regulatory frameworks and clear timelines toward a fully integrated regional services market, aligned with ambitions for a single currency under the Monetary Union.
Interoperable regional payment systems were highlighted as essential to reduce foreign exchange costs and support cross-border commerce.
Infrastructure and logistics featured prominently. The summit called for digitalized and interoperable customs processes, centralized cargo declarations, and 24/7 border operations to reduce corridor delays.
Continued investments in rail, pipelines, cold chain systems and industrial parks were seen as key to lowering logistics costs.
TradeMark Africa estimates that logistics and compliance costs in parts of East Africa can reach 30–40 per cent of the final cost of goods, limiting competitiveness.
Air transport liberalization also emerged as a strategic priority. Delegates urged partner states to adopt the Single African Air Transport Market and extend fifth freedom rights to airlines to enhance connectivity and reduce travel costs.
Annette Ssemuwemba Mutaawe, Deputy Secretary General for Customs, Trade and Monetary Affairs at the EAC, speaking on behalf of the EAC Secretary General, affirmed that:
"The Community has strong policies and frameworks in place. It is important to accelerate the implementation and strengthen stakeholder coordination to fully realize regional integration objectives."
She reiterated the EAC Secretariat’s commitment to working closely with the private sector to remove barriers, enhance competitiveness, build regional value chains, and leverage technology as a catalyst for trade facilitation, improved market access, and accelerated regional integration.