Bottlenecks slowing cross-border trade within EAC
Development is no longer a single country affair but a global effort as underscored by 2030 global agenda. At the centre of national development is cross-border trade. However, bottlenecks remain a hindrance to regional trade.
For in stance at the Kenya-Uganda border in Busia border, it took me almost three hours to be cleared to enter Uganda. Time is money and such delays clearly result in massive losses in businesses.
It seems the agreement to allow free movement of goods and people within the EAC is yet to take effect. Free movement does not mean relaxing scrutiny, but using high level technology to carry out surveillance while allowing other operations to go on uninterrupted.
Investing in modern security technology at the border points, therefore, is imperative. With full integration, citizens of EAC member states would benefit greatly from economies of scale. For instance, with free movement of people and goods and removal of non-tariff trade barriers trade among member states would grow.
With improved trade, development of infrastructure of human capital through knowledge transfer occurs. Cross-border trade is significant for creation of employment opportunities. Making favourable national policies to support regional integration must be given high priority.
Free trade leads to healthy competition and production boost that would ultimately benefit the citizens.
Allowing neighbours to plug the shortage of products we don’t produce adequately will encourage specialisation. It would makes sense for Uganda to produce enough maize if they are assured of a market in Kenya. This in turn will demand that members states within EAC concentrate in products where they have a comparative advantage.
With the establishment of Africa Continental Free Trade Area, the success of the EAC bloc translates to maximum benefits for member states. Granted, there is need for strong commitment by member states to embrace dialogue to solve conflicts within the region.
Inflammatory statements by national leaders have a negative bearing not only in investments but also diplomacy and must be avoided.
Recent ports of East Africa neighbours reluctance to back Kenya for Non-Permanent Member of UN in the United Nation Security Councils calls for critical interrogation and introspection.
Without support from EAC neighbours, it is difficult for other regions to believe in Kenya. The onus is also on Kenya to reach out to her neighbours. A strong EAC could give Kenya a competitive advantage in the global arena. But, government must support local brands to build global brand.
Finally the government can only inspire faith if it weeds out corruption. Otherwise, other states will continue to treat us with suspicion. The writer is a master’s student at the University of Nairobi
