RESTRICTED  
  
WT/TPR/G/384  
13 February 2019  
(19-0842) Page: 1/16 
Trade Policy Review Body   Original:  English   
 
 
TRADE POLICY REVIEW  
REPORT BY  
EAST AFRICAN COMMUNITY  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the East 
African Community  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the East African  Community . WT/TPR/G/ 384 • East African Community  
 
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Contents  
1   INTRODUCTION  ................................ ................................ ................................ .........  3 
2   THE MACROECONOMI C PERFORMANC E ................................ ................................ ...... 4 
2.1   Economic Performance  ................................ ................................ ................................  4 
2.1.1    Inflation  ................................ ................................ ................................ .................  4 
2.1.2    Exchange rate  ................................ ................................ ................................ .........  5 
2.1.3    Balance of payment  ................................ ................................ ................................ . 5 
2.1.4    External debt  ................................ ................................ ................................ ..........  5 
2.2   Trade Developments  ................................ ................................ ................................ ... 6 
2.2.1    Intra-EAC trade  ................................ ................................ ................................ ....... 6 
2.2.2    Extra -community trade  ................................ ................................ .............................  7 
3   THE THRUST OF NA TIONAL DEVELOPMENT P OLICIES  ................................ ................  7 
3.1   National Economic Policies  ................................ ................................ ...........................  7 
3.2   National Development Plans  ................................ ................................ .........................  7 
4   THE STRENGTHS AN D POTENTIAL OF THE E AC MEMBER STATES  ................................  8 
4.1   Business Environment  ................................ ................................ ................................ . 8 
4.2   Agriculture and Fisheries  ................................ ................................ .............................  9 
4.2.1    Agriculture  ................................ ................................ ................................ ..............  9 
4.2.2    Livestock and fisheries  ................................ ................................ .............................  9 
4.3   Forestry  ................................ ................................ ................................ ..................  10 
4.4   Mining, Oil and Gas  ................................ ................................ ................................ ... 10 
4.5   Manufacturing  ................................ ................................ ................................ ..........  11 
4.6   Energy  ................................ ................................ ................................ ....................  11 
4.7   Transport  ................................ ................................ ................................ ................  11 
4.8   Tourism and Wildlife  ................................ ................................ ................................ . 12 
4.9   Telecommunications  ................................ ................................ ................................ . 12 
5   A DYNAMIC TRADE POLICY  ................................ ................................ ......................  13 
5.1   Overall framework  ................................ ................................ ................................ .... 13 
5.2   Reforms Implemented or Under Way  ................................ ................................ ..........  13 
5.2.1    Trade facilitation programme  ................................ ................................ ..................  13 
5.2.2    Interconnection of customs computer systems  ................................ ..........................  14 
5.2.3    A proactive competition policy  ................................ ................................ .................  14 
6   DYNAMIC TRADE CO OPERATION  ................................ ................................ ..............  14 
6.1   Multilateral Trade Agreements  ................................ ................................ ....................  14 
6.2   Bilateral and Regional Trade Agreements  ................................ ................................ ..... 15 
7   CONCLUSIONS ................................ ................................ ................................ ..........  15 
 
 
  WT/TPR/G/ 384 • East African Community  
 
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1  INTRODUCTION  
1.1.  The Treaty establishing the East African Community (EAC) came into force on 7 July 2000, thus 
a new beginning of the revived EAC. The EAC has six partner States, namely, Burundi, Kenya, 
Rwanda, South Sudan, Tanzania and Uganda. The EAC Customs Union came into force on 
1 January  2005 and the Common Market on 1 July 2010. English is the official language o f 
communication within the community policy structures.  
1.2.  EAC covers an area measuring about 2.3 million square kilometres. It has estimated total 
population of 185.5 million people. Kenya and Tanzania are the only countries with a coastal line of 
about 1924  km. 
1.3.  EAC's integration agenda is anchored on the establishment of a Customs Union, a Common 
Market, a Monetary Union, and ultimately a political federation of the East African States. The 
broader objective of the community is to develop policies and progra mmes aimed at widening and 
deepening cooperation among the partner States in political, economic, social and cultural fields, 
research and technology, defence, security and legal and judicial affairs, for their mutual benefit. 
The operational principals of  the community are:  
• people -centered and market -driven co -operation;  
• the provision by the p artner States of an adequate and appropriate enabling environment, 
such as conducive policies and basic infrastructure;  
• the establishment of an export -oriented econom y for the Partner States in which there shall 
be free movement of goods, persons, labour, services, capital, information and technology;  
• the principle of subsidiarity with emphasis on multi -level participation and the involvement 
of a wide range of stake - holders in the process of integration;  
• the principle of variable geometry;  
• the equitable distribution of benefits;  
• the principle of complementarity; and  
• the principle of asymmetry.  
 
1.4.  Five of the six EAC member States are Members of the World Trade Organiza tion (WTO). Kenya 
is the only developing country among the six. All the others are least developed countries (LDCs).  
1.5.  The EAC countries are pursuing a deeper regional integration agenda with the goal of 
transforming the community into prosperous region with  economically empowered citizens. This will 
be achieved through removal of all forms of barriers to trade, investments and movement of citizens.  
1.6.  The EAC countries also recognize the importance of adhering to multilateral obligations. The 
EAC countries hold a shared view that trade policy review mechanism is an important WTO tool that 
promotes the transparency, predictability and effectiveness of t he multilateral trading system.  
1.7.  The EAC countries are members of other regional economic communities (RECs),  namely, 
Common Market for Easte rn and Southern Africa (COMESA): Burundi, Kenya, Rwanda and Uganda; 
Inter-Governmental A uthority on Development (IGAD): Burundi, Kenya, South Sudan, and Uganda; 
Economic Community for Central African States (ECCAS): Burundi and Rwanda; and Southern 
African Development Community (SADC): Tanzania. All the EAC Countries are members of the 
African Union; the World Customs Organization, the World Health Organization, among others. In 
addition, the EAC Countries have signed the Tri partite Free Trade Agreement (TFTA) and the African 
Continental Free Trade Agreement (AfCFTA) and are in the process of ratifying them. Kenya and 
Uganda have ratified both the AfCFTA and TFTA, while Rwanda has ratified the AfCFTA.  
1.8.  In terms of trade regimes  that EAC countries have concluded the negotiations on the Economic 
Partnership Agreement with the European Union (only Rwanda and Kenya have signed; Uganda, 
Burundi and Tanzania are still consulting at Heads of State level). Only four of the EAC countries  are 
at the moment beneficiaries of the unilateral trade preference extended to African countries under 
the African Growth and Opportunity Act (AGOA). How ever, the application of duty –free treatment 
for eligible products in apparel sector from Rwanda was s uspended effective from 31 July 2018.  
 WT/TPR/G/ 384 • East African Community  
 
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2  THE MACROECONOMIC PE RFORMANCE  
2.1  Economic Performance  
2.1.  East Africa maintained an average economic growth of 5 % over the period 2013 -17. This was 
attributed to increased private consumption and public investment in infra structure specifically 
roads, rail and electricity. The main drivers of growth in the EAC was household consumption and 
public investment specifically infrastructure and development in extractives sector. Household 
consumption contributed over 88 % of growt h in Kenya while infrastructure development contributed 
over 45 % of growth in Uganda in 2017.  
2.2.  Economic growth among the different EAC countrie s varied over the period 2013 -17. Burundi's 
economy recovered over the period from a negative growth of about 3.9 % in 2015 to positive growth 
of about 1.7 % 2017. The positive growth was driven mainly by developments in the agricultural 
sector, construction work and public infrastructure, as well as the dynamism of the agro -food 
industry, although to a lesser extent. T he negative growth was attributed to among other factors, 
suspension of financial aid and declining foreign ex change reserves and investment.  
2.3.  Kenya's growth fell from about 6 % in 2013 to 5.4 % in 2014 to 4.9 % in 2017. This was 
attributed to prolonged uncert ainty during the general election, slowdown in the manufacturing 
sector occasioned by imports of cheaper manufactured products and subsequent reduction in the 
share of Kenya's manufactured export within the region, adverse weather patterns which affected 
agriculture productivity, and impediments to access credit. Nevertheless, growth was mainly 
supported by public investment spending and solid non -agriculture sector performance.  
2.4.  Rwanda continued to regis ter positive growth averaging 7 % since 2012 with a pe ak of about 
8.9% registered in 2015 and a drop to 6%  in 2016. Economic growth was mainly supported by 
growth in the agricultural and services secto r, which contributed about 31%  and 46.4 % of GDP in 
2017.  
2.5.  Tanzania was the fastest growing economy among the EAC countries registering a growth of 
7.1% in 2017. GDP growth in 2017 was principally supported by infrastructure development, mining 
and quarrying and agricultural production. The rapidly growing sector of the economy include: 
mining and quarrying with g rowth of 17.5 %, water supply at 16.7 %, transportation and storage at 
16.6%, information and communication at 14.7 % and construction which accounted for 14.1 %.  
2.6.  Uganda registered minimal growth in real GDP over the period 2013 -17, its eco nomic growth 
averag ed about 4.3 %. It registered real GDP growth of 4.8 % in 2017 from 4.3 % in 2016. This 
growth was triggered by improvements in the s ervices sector that grew by 5.7 %, agriculture sector 
that grew by 1.6 % and industry sector that grew by 3.3 % during the 2016 -17 period.  
2.1.1   Inflation  
2.7.  The EAC experienced increased inflation as a result of rising global commodity prices especially 
crude oil, rising from an average rate of 6.1 % in 2013 to about 8 % in 2017. All EAC countries 
experienced increase in he adline inflation with the exception of Rwanda. In 2017, inflation rate in 
Burundi rose to 16.1 % in 2017 from 5.6 % in 2016 due to higher food prices.  
2.8.  In Kenya, annual average rate of inflation rose from 6.3 % in 2016 to 8 % in 2017. This was 
mainly driven by persistent high food prices attributed to unfavourable weather conditions during 
the second quarter of 2017 (April -June 2017). Headline infl ation in Rwanda declined to 4.8% in 2017 
from 5.7 % in 2016 with the ease in exchange rate pressures and the signific ant fall in food inflation 
especially during the second half of the year.  
2.9.  The United Republic of Tanzania maintained single digit average inflation rate of 5.3 % 
throughout 2017 compared to 5.2 % recorded in 2016 consistent with contractionary fiscal policy  
and slower pace in the increase of domestic food prices.  WT/TPR/G/ 384 • East African Community  
 
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2.10.   Uganda's annual headline inflation for 2017 was recorded at 5.6 % compared to 5.5 % in 2016. 
There was a gradual increase in the headline inflation rate from 5.4 % recorded for 2015 due mainly 
to incr eases in core inflation and in the Energy, Fuel and Utilities (EFU) inflation.  
2.1.2   Exchange r ate  
2.11.   The currencies for the East African countries continued to depreciate against the major 
currencies over the period 2013 -2017. Specifically, EAC currencies depreci ated against the U .S. 
dollar. Burundi franc (BIF) depreciated against the U.S. dollar BIF 1,555 in 2013 to BIF 1,729 in 
2017.  
2.12.   The Kenya n shilling depreciated against the U .S. dollar from K ES 88 per USD in 2013 to 
KES 103 in 20 17. The weakening of the Keny an shilling against the U .S. dollar in 2017 was largely 
occasioned by a strong U .S. dollar on the international markets and the d ollar demand on the 
domestic market from local importers.  
2.13.   Rwanda f ranc continued to depreciate against the U .S. dollar from an  average rate of RWF  647 
per US D in 2013 to RWF 832 in 2017.  
2.14.   The value of the Tanzania shilling depreciated against the U .S. dollar throughout the period 
from TZS 1,598.66 in 2013 per US D to T ZS 2,228.86 in 2017. The Uganda s hilling depreciated 
against the U .S. dollar  from UG X 2,587 in 2013 to UG X 3,611 in 2017.  
2.1.3   Balance of p ayment  
2.15.   The EAC countries' current account over the period 2013 -17 remained in deficits. The 
persistent current account deficit was attributed to increase in importation of goods and  services. 
There has been a slight ease in the current deficit for Tanzania and Rwanda over the period from 
USD 4.9 billion in 2013 to US D 2 billion in 2016 and US D 1.3 billion in 2016 to US D 760 million in 
2017 respectively. The improvement in the current  account deficit for Rwanda to US D 760 billion 
from a deficit of US D 1.3 billion recorded in 2016, was due to a positive variation in trade balance 
where exports and imports variation were respectively 44.5 % and negative 5.6 % in 2017. Kenya's 
current accou nt deficit expanded from US D 3.4 billion (5,2%) in 2016 to US D 4.8 billion (6,7%) in 
2017, mainly on account of increased food and oil imports. The rise in food imports in 2017 was 
largely driven by increased maize and sugar imports to meet domestic shortf alls following adverse 
weather conditions while the rise in oil imports was reflective of higher global oil prices.  
2.16.   The Republic of Tanzania's overall balance of payments recorded a surplus of 
USD 1,649.5  million compared with US D 305.5 million recorded i n 2016. This development is 
attributed to narrowed current account deficit coupled with increase in project grants and external 
borrowing. As a result, gross official reserves amounted to US D 5,906.2 million as at December 2017 
compared to US D 4,325.6 mill ion at end December 2016, which were sufficient to cover 5.4 months 
of projected import of goods and services. During the period, the current account deficit contracted 
by 43.5 % to US D 1,218.1 million compared with a deficit of US D 2,154.6 mill ion in the y ear ending 
December  2016. The outturn was explained by a narrow deficit in the trade balance and increase in 
the secondary income net inflow mainly official transfers.  
2.17.   Uganda's current account deficit over the period 2013 -17 had recorded a positive trend 
especially from US D 2.2 billion in 2014 to about US D 711 million in 2016. However, in 2017, 
Uganda's current account deficit worsened by US D 417 million from 2016 to US D 1.1 billion.  
2.1.4   External d ebt  
2.18.   Burundi's external debt rose by 2. 7%, to US D 440.5 million  in 2017 from USD 429.1 million 
in 2016. This increase is explained by the rise in new withdrawing of external credit of US D 8 million 
and by revaluation of US D 31.4 million slightly dampened by the US D 9.1 million in respect of 
amortization. Thus, the rat io of external debt service to export increased from 3.9 % in 2016 to 5.9 % 
in 2017.The external debt is composed by 77.3 % of multilateral, 13.4 % and 9.3 % of the bilateral 
and commercial creditors respectively.  WT/TPR/G/ 384 • East African Community  
 
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2.19.   Kenya's public debt (net) as a percen tage of GDP increased from 43.9 % in 2013 -14 to 51.2 % 
in 2014 -15 and 47.9 % in 2016 -17. The ratio of domestic to external f inancing stood at 66:34 in 
2013-14; 53:47 in 2014 -15; 44:56 in 2015 -16 and 45:55 in 2016 -17 progressing towards MTP II 
target to avoid crowding  out the private sector in the credit market. Despite government borrowing 
of USD 2 billion  through Sovereign Bond in 2013 -14 and an additional USD  750 million from 
international investors by re -opening (tapping) the Bond in 2014 -15, government's external debt 
remains largely on concessional terms. Kenya's total public debt increased to USD 42.5 billion in 
2017 from USD 35.8 billion in 2016. Kenya's external debt stock increased to USD 22.1 billion in 
2017 which represents about 29.6 % of GDP from USD 17.8 b illion or  25% of GDP in FY 2016. The 
increase in the external debt stock was largely refle ctive of increase in debt from bilateral and 
multilateral lenders. Bilateral debt increased to USD 8 billion in 2017 from USD 5.3 billion in 2016 
while multilateral d ebt increased to USD 8.1 billion in 2017 from USD 7.1 billion in 2016.  
2.20.   Rwanda has maintained a low risk of debt distress through pairing careful debt management 
and strong domestic revenue collection, combined with an improved macroeconomic environment. 
Rwanda' s debt stock stood at 47.3 % of GDP at the end of 2017, a slight increase over 2016 mainly 
due to budget support directed to specific sectors (roads, energy and transport). Rwanda's external 
debt portfolio represented 79.7 % of total public debt, 87 % of the external debt portfolio consisted 
of concessional loans, which continues to be the main source of funding for public proje cts. Domestic 
debt stood at 8 % of GDP at end -2017.  
2.21.   The United R epublic of Tanzania external debt stock, comprising public and pri vate sectors, 
amounted to USD 19.2 million at the end of December 2017, an increase of USD 1.8 million from 
the amount recorded during the corresponding period in 2016. The increase was mainly on account 
of disbursements for funding development projects an d exchange rate movements. Central 
government debt remaine d dominant, accounting for 78.3 % of total external debt, followed by 
private  sector that accounted for 20.4 %. Composition of external debt by creditor category continued 
to show that the debt owed t o multilateral institutions acco unt for the largest share (47.5 %), 
followed by comme rcial creditors, which was 31.9 % of the total debt.  
2.22.   Uganda's stock of public external debt disbursed and outstanding increased to US D 6.9 billion 
as at end of December 2017  from US D 5.4 billion as at end of December 2016. Uganda's public debt, 
though still sustainable, has risen in recent years, primarily on account of borrowing to finance 
infrastructure projects that are necessary to improve the economy's productive capacit y and 
competitiveness over medium and long term. As at end of December 2017, the stock of m ultilateral 
debt amounted to USD 4,686 .1 million, accounting for 67.9 % of the total public ext ernal debt, as 
compared to 70.6 % recorded at the end of December 2016. The share of outstanding external debt 
stock owed to bilateral sources continued on  an upward trend rising to 29.6 % of the total external 
debt outstanding at the end of December 2017, from 26.7 % at the end of December 2016, mainly 
due to new loan disbursem ents from Japan and the Exim Bank of China for the continued support to 
road infrastructure. The share of private banks and other fin ancial institutions rose to 2.5 % in 2017 
owing to a f inancing agreement between the G overnment of Uganda and the PTA bank.  
2.2  Trade D evelopments  
2.2.1   Intra -EAC trade  
2.23.   Intra-EAC trade is largely composed of manufactured products especially cement, petroleum, 
sugar, confectionery, beer, salt, fats and oils, steel and steel products, paper, plastics and 
pharmaceuticals. However, trade in  food items is gaining prominence in the region, particularly, rice, 
maize, wheat flour, sorghum and other cereals. Intra -EAC exports have dropped over the years from 
USD 3.3 billion in 2013 to US D 2.9 billion in 2017. Although the EAC has one of the highest -share 
of intra -regional trade among the major RECs in Africa, the share of intra -EAC exports ov er the 
period dropped from 20.9 % in 2013 to as low as 15.9 % in 2015. In 2017, the region recov ered from 
a lower share of 16.5 % in 2016 to 19.7 % in 2017. This was attributed to the growth in exports by 
Uganda, Tanzania and Rwanda.  
 
2.24.   There are a number of trade and trade facilitation initiatives under the 5th EAC Development 
Strategy (2016/2017 -2020/2021)  to enhance EAC trade both intra and extra particularly in textile, 
leather and chemicals.  WT/TPR/G/ 384 • East African Community  
 
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2.25.   EAC's top priorities to enhance intra -EAC trade and deepen integration in its medium -term 
policy framework, among others:  
• consolidation of the Single Customs Terri tory (SCT) to cover all imports and intra -EAC traded 
goods including agricultural and other widely consumed products;  
• infrastructure development in the region;  
• enhancing free movement of all Factors of Production and other areas of cooperation across 
the Partner States as envisaged under the Common Market and Monetary Union Protocols.  
• enhancement of regional industrial development through investment in key priority sectors, 
skills development, technological advancement and innovation to stimulate economi c 
development;  
• improvement of agricultural productivity, value addition and facilitation of movement of 
agricultural goods to enhance food security in the region.  
2.26.   The EAC is making strides in promoting regional value chains to boost production and grow 
EAC's trade values.  
2.2.2   Extra -community trade  
2.27.   The EAC recorded a drop in its export to the rest of the world from US D 13.6 billion in 2016 
to about US D 11.8 billion in 2017. This is against a backdrop of negative trade trends over the past 
three years from US D 16.1 billion recorded in 2014. The EAC's import from the rest of the world has 
equally dropped since 2015 from US D 34.1 billion to US D 29.7 billion in 2017. However, the region's 
trade deficit remains high due to substantial net imports of manufactured goo ds (9 7% of the EAC 
trade deficits) , despite the positive contribution from net exports of mineral products such as ores 
and metals.  
3  THE THRUST OF NATION AL DEVELOPMENT POLIC IES 
3.1  National Economic P olicies  
3.1.  The EAC countries have maintained an open economy ap proach to fostering economic growth 
with broad objective of improving business environment in preparation for the implementation of 
the monetary union.  
3.2.  The citizens of EAC are at liberty to move freely across partner states with additional rights of 
reside nce and establishment in line with the national laws of the respective partner states. The three 
EAC countries, namely, K enya, Rwanda and Uganda recogniz e national identity cards as travel 
documents among the three countries under the Northern Corridor arr angement.  
3.3.  The EAC has maintained solid growth in recent years, with an annual average growth rate of 
around 6% between 2013 and 2017, more than double the African average. Tanzania and Rwanda 
registered the highest growth rates between 2013 and 2017. Backe d by the increase in agricultural 
production amid favourable weather conditions and continued infrastructure investment,  the 
economic prospects of the p artner States are generally positive. The region expects to sustain robust 
growth in 2018 and 2019.  
3.2  National Development P lans 
3.4.  The long -term and medium -term development strategies being implemented by the EAC 
countries in an effort to transform the community in the sphere of economic, social and political 
development include: Kenya's Vision 2030; Rwanda's V ision 2020 being revised to 2050, Tanzania's 
Vision 2025 and Uganda's Vision 2040.  
3.5.  Kenya's long -term development strategy, Vision 2030, aims to drive the country towards 
sustained high levels of inclusive economic growth and attainment of middle -income cou ntry status WT/TPR/G/ 384 • East African Community  
 
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by the year 2030. The Vision is based on three "pillars ", economic, social and p olitica l transformation. 
The economic p illar aims to achieve an average economic growth rate of 1 0% per annum and 
susta ining the same until 2030. The social p illar seeks to engender just, cohesive and equitable 
social development in a clean and  secure environment, while the political p illar aims to realize an 
issue-based, people -centred, result oriented and accountable democratic system. To realize socio -
economic tra nsformation, the three pillars are anchored on six foundations, namely, infrastructure; 
science, technology and innovation; land reform; human resource development; security and public 
service reform. The Vision is being implemented in successive, five -year Medium -Term Plans (MTP). 
The first such  plan covered the period 2008 –12. It is during this period that the Kenya Constitut ion 
2010 was enacted under the political p illar that provided for the far -reaching reforms under Vision 
2030. The s econd phase cover ed the period 2013 -17. The implementation of the Vision during this 
period saw the introduction of devoluti on under the political pillar, public service reform, health and 
education, security and i nfrastructure. Th e third phase will cover 2018 -22. 
3.6.  Rwanda's  current guiding policy document, Vision 2020 , aims to achieve middle -income status 
by 2020 through economic transformation from an agrarian to a high -productivity knowledge -based 
economy. The vision 2020 is now under review towards Vision 2050 with focus on a private -sector -
led development, good governance, human resource development, big investments in infrastructure 
and a strong commitment to regional integration. In addition to gender equality, environmental 
protection and sustainable natural resource m anagement, and science, technology and ICT. The 
Vision 2050 will be implemented based on a series of seven -year National Strategic (NSTs), and 
draws from lessons of the EDPRS I and II and a series of forthcoming analytical papers on drivers 
of growth prepa red by the World Bank. The first NST runs from 2017 –24 and is set around three 
main pillars with specific targets: economic transformation, social transformation, and 
transformative governance. Sectoral strategies underpinning the NST, are well aligned t o ensure 
that Rwanda meets the s ustainable developme nt goals before 2030.  
3.7.  Tanzania's medium -term policy framework include among others: The National Strategy for 
Growth and Reduction of Poverty (NSGRP) and the Tanzania's FYDP II  entitled Nurturing 
Industrializ ation for Economic Transformation and Human Development with a dual focus on growth 
and transformation and poverty reduction. These medium -term policy frameworks are all aligned 
with Tanzania's Development Vision 2025, which  aims at transforming Tanzania into middle -income 
country by 2025. Four priority areas targeted under the plan's strategy to unleash Tanzania's latent 
growth potentials are: economic growth and industrializ ation; human development and social 
transformation ; improving the environment for business and enterprise development; and 
strengthening implementation effectiveness. The priority sector s include automotive; petroleum;  
gas and chemicals; pharmaceuticals; building and construction; agriculture and agro -processing 
(cotton to clothing, textiles and garments, leather); coal; and iron and steel.  
3.8.  Uganda's National Development Plan (NDPII) is the second in a series of five -year development 
plans aimed at achieving the targets underlined in the Uganda Vision 2040.  The goal of NDPII is to 
propel the country towards middle income status by 2020 through strengthening the country's 
competitiveness for sustainable wealth creation, employment and inclusive growth. The NDPII 
highlights t hree key growth opportunities (agri culture, tourism, minerals, oil and g as) and two 
fundamentals Infrastructure and  human capital d evelopment.  
4  THE STRENGTHS AND PO TENTIAL OF THE EAC M EMBER STATES  
4.1.  The EAC countries continue to make considerable reforms to improve the doing business 
environme nt to attract investment across the region especially in oil and gas, agro -processing, 
mineral processing, tourism, financial services, telecommunication and transport.  
4.1  Business E nvironment  
4.2.  Since 2013 there  have been improvements in the Doing B usiness env ironment among the EAC 
countries. Rwanda, Kenya and Uganda have made considerable reforms during the period, Kenya 
rose in ranking by more than 10 places from 136th position in 2015 to 80th in 2018 and subsequently 
to 6th. Rwanda moved up 11th places to 29th in 2019 from 41st in 2018. Rwanda is ranked the 2nd 
easiest to do business in Africa after Mauritius. Uganda's positions had improved from 15 0th in 2015 
to 112th in 2018 but dropped to 127th in 2019, while Tanzania and Burundi rankings have fluctuated 
from 134th in 2013 to 144th in 2019 for Tanzania and 159th in 2013 to 168th in 2019 for Burundi.  WT/TPR/G/ 384 • East African Community  
 
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4.3.  The business facilitation reforms made by the EAC countries include, among others:  
• improved customs processing system;  
• trade facilitating infrastructure includ ing Standard Gauge Railway, One -Stop Border Posts, 
electronic cargo tracking;  
• establishment of national electronic Single Window;  
• introduction of electronic declaration, document processing and payment of customs duties 
and taxes; and  
• rollout of authoriz ed economic operators.  
4.4.  The EAC countries are rolling out other trade facilitation initiatives including: trade portals, call 
centres and business development services.  
4.2  Agriculture and F isheries  
4.2.1   Agriculture  
4.5.  Agriculture sector represents one of the most important sectors in the EAC agenda. In all EAC 
countries, agriculture remains the dominant primary source of livelihood  and employment to more 
than 70 % of population across all member states. The region's main agriculture products include: 
tea, coffee, ho rticulture, fisheries, livestock, cashew nuts, cotton, tobacco, among others. It remains 
a major instrument for promoting an inclusive economic growth and enhancing the availability of 
food among member states. The EAC region also produces crops such as cl oves, tropical fruits, 
spices , and essential oils particularly in the Island of Zanzibar.  
4.6.  The agriculture sector contribution to GDP among the EAC countries continue to remain 
substantia l with average share above 30 %. Its annual growth rate of about 3 % registered over the 
period 2013 -17 has not kept pace with the rest of the sectors. The highest growth rate over the 
period was recorded by Rwanda and K enya with average growth of 5.1 % and 4.3 % respectively.  
4.7.  The EAC countries' medium to long -term policy fram eworks aim at transforming the agriculture 
sector towards higher productivity through sustainable commercialisation of production to enhance 
smallholder farmers' income for improved livelihood, food security and nutrition.  
4.2.2   Livestock and fisheries  
4.8.  All the EAC countries have considerable livestock sectors. T he sector contributes about 3.5 % 
of GDP for Rwanda, 1.4 % for Burundi, 7 % for Tanzania, 4.9 % for Kenya and  4% for Uganda. The 
EAC registered increase in relative level of the aggregate volume of livestock production in 
compari son with the base period 2004 -06. The regional livestock production index rose from 651.4 
in 2013 to 664.2 in 2016. Burundi, Kenya and Ugan da recorded relative increase in the aggregate 
for volume of livestock production unlike Rwanda and Tanzania that recorded a drop in the volume 
over the period 2013 to 2016.  
4.9.  Eradicating livestock diseases that adversely affect livestock products' access t o external 
markets, remains a major challenge for livestock industry in the EAC. Exports of livestock products 
are limited to raw and semi -processed hides and skins outside the region. Currently, much of the 
production is for the domestic market particular ly for meat and dairy products. Other major 
challenges facing the sector include inadequate veterinary extension services, poor infrastructure, 
lack of reliable markets, low levels of investment and insufficient processing industries.  
4.10.   In Uganda the medium -term policy framework targets increase in production of livestock 
products including beef production to 360,000 tonnes; pork to 139,185 tonnes, mutton and goat 
meat to 39,775 tonnes and poultry to 63,647 tonnes annually.  WT/TPR/G/ 384 • East African Community  
 
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4.11.   Fisheries subsector hold a strateg ic economic position among the EAC countries and 
contributes hugely to the GDP of member states . In Uganda,  it accounts for 4.7 % of total export 
earnings (ranking second ). Its contribution to GDP is 2 % for Burundi, 0.5 % for Kenya, 0.3 % for 
Rwanda, 2.2 % for Tanzania, and 1.6 % for Uganda. The regional total fisheries produc tion has over 
the period 2013 -16 dropped from 1.16 metric tonnes registered in 2014 to about 1.13 metric tonnes 
in 2016. The drop in the total production was registered by Kenya, Tanzania a nd Uganda.  
4.12.   Tanzania and Kenya have significant potential for development in marine products given the 
long coastal line in the Indian Ocean. The Blue Economy is a new economic frontier especially for 
Kenya and Tanzania and development of appropriate over -arching policies, legal, regulatory and 
institutional frameworks to guide the management, development and coordination of the fisheries 
sub-sector is in progress.  
4.3  Forestry  
4.13.   Forestry is a key subsector in sustenance of the ecosystem and socio -economic well being of 
the EAC countries. The Sector employs over 50,000 people directly and another 300,000 indirectly 
in Kenya, 61,243 in Rwanda the sector contributed 5.6 % of GDP in 2017, in Tanzania the sector 
contributed 3.5 % of GDP in 2017 and in Ug anda the sector  contributed 3.9 %. Forest ecosystems 
enhances landscape resilience to climate change. In the EAC countries' water towers, forests provide 
environmental services that include water quality and quantity, reduction of soil erosion, and 
creation of micro -clima tic conditions that maintain or improve productivity. Forests are also known 
to be among the most effective sinks of greenhouse gases, which cause climate change, and hence 
they are important in contributing to climate change mitigation.  
4.4  Mining, Oil and Ga s 
4.14.   The EAC countries have deposits of oil (Uganda, Kenya and Rwand a); gas (Tanzania and 
Rwanda); g old (Tanzania, Uganda, Burundi); nickel (Burundi, Tanzania); copper (Burundi, Uganda, 
Tanzania); diamond (Tanzania) ; vanadium (Burundi); phosphate (Uganda, Tan zania). The region is 
also endowed with other minerals including: gemstones, silver, salt, bauxite, cassiterite, columbite -
tantalite, wolframite.  
4.15.   The sector still contributes minimally to the national income accounts for member states 
except for Tanzania  whose share to GDP grew to 4.8 % by 2016.  The sector contributes about 1 % 
of GDP for Burundi; 0.9 % for Kenya and 0.7 % for Uganda.  
4.16.   The EAC countries have considerable oil and gas deposits, for example, Tanzania has about 
57.6 trillion cubic feet of natural g as discovered both offshore a nd onshore; Uganda has about 58  oil 
fields discovered, which may produce an estimated 2.5 billion barrels of oil equivalent, of which 
about 1.4 billion barrels are recoverable. Reserves of natural gas are estimated at 500 billi on cubic 
meters.  
4.17.   Since the previous review, Kenya did not have viable oil and gas deposits. Oil and gas 
exploration in Kenya began in the 1950s within the Lamu Basin which only found gas of no 
commercial value. In April 2012, Tullow Oil made an exceptiona l oil discovery in the Tertiary rift , 
which has proved to be commercially viable. Further exploration has indicated significant gas 
discoveries offshore Lamu Basin and some parts of Northern Kenya whose commercial viability is 
yet to be determined.  
4.18.   The amo unt of c ommercially v iable oil deposits in the Lokichar Basin is 760  MM Barrels with 
an upside of 1.6 b illion barrels. The Government of Kenya with the oil exploring companies have 
agreed to a joint commercial development. A pipeline route to the port of L amu has been identified 
to evacuate the oil and the engineering and design for the pipeline is under way. The first oil export 
is expected in 2022.  
4.19.   The me mber S tates have initiated a number of policy and legal reforms to enhance the 
development of the mine ral resources sector in recent years. This has considerably increased 
investments and sector's share in  the export earnings of member S tates. However, the sector is WT/TPR/G/ 384 • East African Community  
 
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poorly integrated into the national and regional value chain, hence very limited knock -on effects on 
the welfare of the people, thus restricting its real impact on economic transformation.  
4.5  Manufacturing  
4.20.   The manufacturing sector in the EAC countries is key to the transformation of the respective 
economies. It contr ibutes regional average above 7 % of GDP with highest regional average of 8.2 % 
recorded in 2013. Kenya, Uganda and Burundi are the three -member states with average share of 
above 8 % over the period 2013 -17.  
4.21.   The share of EAC manufactures merchandised exports has continued to g row account ing for 
more than 25 %. However, the share more than doubled for the in tra-EAC trade accounting for 51 % 
of the merchandise exports over the period 2013 -17. 
4.22.   The EAC' s regional industrializ ation strategy (2012 -32) aims to create a modern, competitive 
and dyna mic industrial sector that is fully integrated into the global economy. Specifically, it aims to 
diversify the manufacturing base and raising local value -added content of resour ce-based exports 
to at least 40 % by 2032; and strengthening the regions' instit utional frameworks and capabilities 
for industrial policy design and implementation; and delivery of support services, among others.  
4.6  Energy  
4.23.   The energy sector in the EAC region covers electricity, biomass and petroleum, which remains 
relatively underexplo ited within the region. For example, Burundi only produces about 30.6 MW 
compared to an exploitable potential of 300  MW. In 2017 Rwanda produced 671.4 million KhW, 
which was still insufficient to cover domestic demand and importing about 76.7 million KhW o f 
electricity. Tanzania has installed power capacity of 1,522.62 MW, out of which 1,467.56 MW is 
connected to grid and the long term has target is to generate 5,000 MW by 2020 -21. Kenya increas ed 
its installed capacity by 24 % from 1,765  MW in 2012 -13 to 2,333  MW by 2016 -17. Uganda is 
expanding the capacity of power supply through construction of additional hy dropower downs, 
namely, Karuma hydro power p lant (600  MW), Isimba hydro power p lant (188  MW), Ayago hydro 
power plant (600  MW), among others  
4.24.   The EAC countries h ave put in place medium to long -term policy measures to enhance 
investment and regulations in the energy sector including Energy Sector Strategic Plan for Rwanda 
2013/14 -2017/18.  
4.7  Transport  
4.25.   The EAC has a number of transport corridors linked to th e ports of Mombasa and Dar e s 
Salaam, namely, the Northern Corridor, Central C orridor, among others. These corridors greatly 
facilitate movement of goods from and into the region. The EAC countries have continued to invest  
massively in transport infrastruc ture including ports, roads, railway networks, air ports.  
4.26.   The aviation facilities being expanded and upgraded within the community include, among 
others, Jomo Kenyatta, Moi and Kisumu, Julius Nyerere, Kilimanjaro, Entebbe, Kigali, Zanzibar. 
Rwanda and Ken ya national carriers have continued to expand over the years beyond the African 
Continent. Tanzania and Uganda are making progressive efforts toward the revival of the national 
carriers. In early 2018, Uganda took a decision to revamp the national carrier,  the Uganda Airlines. 
It is expected to start operations in December 2018.  
4.27.   The railway infrastructure expansion , which have commenced and being expanded include: 
Standard Gauge Rail (Mombasa to Nairobi). Uganda has restored the 9-km rail link to Tanzania v ia 
Lake Victoria connecting Port Bell to Mwanza (Central Corridor) in June 2018.  
4.28.   The East Africa Road Network Project (EARNP), covering a total of 137 km was done through 
construction of Modika -Nuno (23  km) and upgrading of Voi -Mwatate -Taveta (114  km) road s. The 
Lamu Port -South Sudan -Ethiopia Transport Corridor (LAPSSET) components where 4 lots were 
completed, namely, Isiolo -Merille River (136 km); Merille Rive r-Marsabit (143 km); Marsabit –Turbi WT/TPR/G/ 384 • East African Community  
 
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(121 km) and Turbi -Moyale (127 km). In addition, construction of Lamu Port Headquarters and the 
port police building were completed including a new terminal and a 1.4-km runway at Isiolo Airport.  
4.29.   Improvement of shipping and maritime facilities to handle Panamax and Post Panamax 
container ships; completion of Berth No . 19 in Mombasa; construction of the first three berths at 
Lamu Port is ongoing; and acquisition of two ferries with a capacity of 1,500 seated passengers is 
ongoing.  
4.30.   The EAC c ountries will also benefit from the implementation of the Tripartite and Contine ntal 
Infrastructural Master Plans.  
4.8  Tourism and W ildlife  
4.31.   The EAC countries have a diversified tourism sector including national parks, wildlife reserves 
and sanctuaries, mountain climbing, beach, cultural and  religious sites, rivers, water falls, birds, 
among others.  
4.32.   Tourism sector is among the leading foreign exchange earners for most of the EAC countries, 
namely, Kenya, Rwanda, Tanzania and Uganda. The share of tourism foreign earnings over the 
period has remained relatively higher for Tanz ania with aver age share of 22.9 % follow ed by Rwanda 
with share of 22.8 %, Uganda 21.2 %, Kenya 15.9 % and Burundi with the least score of 1.3 %. EAC 
single tourist visa for multiple entry is available for Kenya, Rwanda and Uganda since 2014 for any 
country of origin.  
4.33.   The c ommunity has a number of national parks, lakes, forest and wildlife reserves with a 
variety of wildlife. Uganda has 10 national parks (Queen Elizabeth, Murchison Falls, Kidepo Lake 
Mburo, among others); 12 wildlife reserves and 14 wildlife sanctuaries.  
4.34.   Tanzania has many tourist attractions. More than 4 4% of the country's land area is covered 
with game reserves and national parks. There are 16 national parks, 29 game reserves, 40 controlled 
conservation areas and marine parks. Tanza nia is also home to the fa mous " Roof of Africa" , Mount 
Kilimanjaro. Tanzania has well -known tourist wildlife attractions in northern part of the countr y 
including: Mount Kilimanjaro P ark, Serengeti National Park, Ngorongoro Reserve,  Selous Game 
Reserve, Lake Manyara.  Additionally, there are natural and cultural attractions that include sandy 
beaches, excellent deep -sea fishing, nature reserves, Stone -Town  of Zanzibar, Kilwa ruins, Laetoli 
footprints, Olduvai Gorge and many others.  
4.35.   Rwanda presents tourism assets ranging from the natu ral attractions such as the world -
famous  mountain gorilla in the Volcanoes National Park, 13 species of primates in Nyungwe National 
park, about 700 species of birds, flora including the orchids, to the unique culture and heritage that 
make it a desirable destination for any type of tourist.  
4.36.   Kenya offers unique tourism products ranging from warm sunny beaches at the coast, scenic 
savannahs to sno w-capped mountains astride the E quator. It has some of the world's greatest tourist 
attraction sites known for th eir diversity in landscape, culture and fauna and flora. Kenya is the 
home for the "game s afaris ", which is complimented with scenic landscapes across the famous rift 
valley, beautiful mountains, cultural diversity a nd adventure sports. It has 54 national parks a nd 
game reserves including the world f amous Masaai Mara and T savo. There are also beautiful marine 
parks and r eserves along the Kenyan coa st such as Malindi and Mombasa marine national p arks. 
4.9  Telecommunications  
4.37.   There is competition in all market segments of the telec ommunications sector within the  
community, namely, inte rnet data, audio voice, mobile  money services. The sector has registered 
tremendous growth in subscriptions, internet data use, mobile money services, except for change 
of ownershi ps and amalgamation, which could be attributed to stiff competition.  
4.38.   The competition has fostered providers to adopt advanced technologies for internet data 
including: 3G, 4G and WiMax for wireless connections. The same applies to wired connections using 
ADSL, cable and fibre -optics.  WT/TPR/G/ 384 • East African Community  
 
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4.39.   The market is booming and has significant growth potential. The mobile penetration rose 
significantly for all the EAC countries over the period 2013 -17. Kenya has the highest  mobile 
penetration of about 80 %, Rwanda 76.6 %, Tanz ania 72.9 %, Uganda about 70 % and Burundi about 
57% by 2017.  
5  A DYNAMIC TRADE POLI CY 
5.1  Overall F ramework  
5.1.  The EAC countries are implementing a common market, which comprises various 
commitments, namely, free movement of goods and services, free movement of per sons and labour, 
rights of establishment and residence, free movement of capital. Other areas of cooperation under 
the common market are protection of cross -border investments, economic and monetary policy, 
financial sector policy co -ordination, co -ordinat ion of transport policies, consumer protection, among 
others.  
5.2.  The EAC is implementing a common external tariff (CET), which commence d in 2005 with three 
bands of 0 % for raw materials and capital good s, 10 % for intermediate goods and 25 % for 
final/consumer  goods. There ar e applied tariff rates above 25 % for products treated sensitive within 
the community outlined under schedule one of the tariff book.  
5.3.  Nationally, m inistries in charge o f EAC a ffairs are responsible for the coordination of 
implementation of community obligations/commitments, as well as monitoring/assessment of the 
policies. Other ministries including trade, economic affairs and finance, foreign affairs, transport and 
works are key in the implementation of obligations/commitments made at the c ommunity level.  
5.4.  Within the framework of WTO General Agreement on Trade in Services, the EAC countries made 
specific commitments across 11 sectors, namely, business services; communication; tourism; 
transport; financial; education; environment; recreational , cultural and sporting; health; distribution 
and construction ; and related engineering services. Tourism services is the only common sector 
committed by all EAC countries. At the EAC level, EAC countries have concluded negotiations in 
seven sectors, namel y: business;  communication ; distribution ; financial ; tourism and transport, 
where they have made deeper commitments to open their markets further than at the WTO GATS 
level to facilitate the implementation of the common market.  
5.5.  In addition, EAC countries have undert aken to mutually recognize the academic and 
professional q ualifications granted, experience obtained, requirements met, licenses or  certificates 
granted in other p artner States. An Annex to the CMP on Mutual Recognition of Academic and 
Professio nal Qualifications Regulations of 2011 is currently undergoing legal scrubbing. Furthermore, 
four MRAs have been signed  for four professions, namely: a ccounting, architectural, engineering and 
veterinary, with accounting being the only one which has been s igned by all the EAC countries.  
5.2  Reforms Implemented or Under W ay 
5.6.  The EAC has made significant trade policy reforms and more are on course for implementation 
over the next five years in order to  achieve the community's deeper integration agendas including 
fully-fledged customs union, common market, monetary union and political federation.  
5.2.1   Trade facilitation programme  
5.7.  The EAC has rolled out implementation of various trade facilitation initiatives  covered by the 
community laws including the Treaty establishing the EAC, the Customs Union Protocol, Customs 
Management Act, Common Market Protocol. The trade facilitation measures adopted by the 
community include among others, adoption of the ha rmoniz ed EAC customs proced ures with reduced 
and standardiz ed customs documents; standards, quality assessment, testing and metrology 
procedures; Single Window; Authoriz ed Economic Operators; electronic cargo tracking system; 
single customs transit guarantee bond; establishment of One Stop Border Posts (OSBP) to reduce 
delays in clearance of goods at border posts; harmonization of business hours and attempt to 
operate on 24 hours in some borders stations; harmonization of transport regulations and standards; WT/TPR/G/ 384 • East African Community  
 
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and str engthen the NTB's monitoring mechanisms through national and regional monitoring 
committee s but also SMS and online notification s and resolution mechanisms.  
5.8.  The EAC has in place a regional sub -committee on trade f acilitation. The sub -committee 
developed a  regional trade facilitation implementation action plan to promote a coordinated 
implementation of the WTO Trade Facilitation Agreement. With the  exception of South Sudan, EAC 
countries have developed national action plans for implementation of the WTO Trade Facilitation 
Agreement and also notified the category A measures. The implementation of the action plan has 
been supported by some development partners including: Trade Mark East Africa (TMEA), German 
Technical Cooperation (GIZ), United Nation Conferenc e on Trade and Development (UNCTAD), 
United States Agency for International Development (USAID), International Trade Centre (ITC).  
5.9.  The action plans so far supported by the development partners are publication, information 
availability through internet, ad vance rulings, notifications for enhanced controls or inspections, pre -
arrival processing, electronic payment, separation of the release from final determination of the 
customs duties, taxes, fees and charges, risk management, post -clearance audit, establi shment and 
publication of average release times, trade facilitation measures for authorised economic operators, 
expedited shipments, border agency cooperation, use of international standards, common border 
procedures and uniform documentation requirements,  freedom of transit and customs cooperation, 
as well as the national and regional subcommittee.  
5.2.2   Interconnection of customs computer systems  
5.10.   The EAC rolled out customs interconnectivity in 2013 with support from the African 
Development Bank under the East African Trade and Transport Facilitation Project. The customs 
interconnectivity has been enhanced through the Single Customs Territory (SCT) to facilitate 
seamless flow of information between customs stations and payment system to manage transfers 
of reven ues between EAC p artner States but also enhance risk management in customs operations 
including valuation and monitoring of goods.  
5.11.   The SCT has facilitated faster mo vement of goods across the EAC p artner States reducing the 
time of cargo delivery, administr ative costs on the importer or exporter and efficient mechanism of 
revenue management; and reduced risks associated with non - compliance on the transit of goods.  
5.2.3   A proactive competition policy  
5.12.   The EAC has in place a competition authority charged with a man date to curb unfair trade 
practices in the region and protect consumers from substandard goods. Kenya and Tanzania also 
have institutional and legal framework for implementation of competition policy. Tanzania has a Fair 
Competition Act of 2003, Kenya has Competition Act, Cap. 504 implemented by the Competition 
Authority of Kenya. While in Burundi, competition issues are gover ned by Law No. 1/06 of 
25 March  2010 overseen by the Ministry of Trade and Industry. Rwanda also has in place Law "No. 
36/2012 of 21  September 2012 relating to Competition and Consumer Protection ", which was 
enacted in 2012.  
6  DYNAMIC TRADE COOPER ATION  
6.1  Multilateral Trade A greements  
6.1.  The EAC countries in their commitment to the multilateral trade agreements, continue to 
implement WTO com mitments including participation in various committees and establishment of 
national agencies to implement the commitments such as the National Committee on Trade 
Facilitation Agreement (NCTF). The member states have also consistently notified the WTO on 
national development in regard to standards. For example, Tanzania in 2017 made 81 notifications 
of technical standards on various products including eggs, meat, beef, cereals, hard drinks, paper, 
first aid kits.  
6.2.   The EAC countries remain committed to the m ultilateral trading system and are taking note of 
the current challenges facing the WTO. The member states will continue to work with likeminded 
countries to address the challenges. Issues of development concern including special and differential WT/TPR/G/ 384 • East African Community  
 
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treatment  still remain dear to the EAC countries. Efforts should therefore continue to foster the 
effective participation of developing countries in the multilateral negotiations to help them reap the 
benefits of the WTO Membership.  
6.3.  The EAC countries believe that t he WTO Dispute Settlement System need to be preserved and 
strengthened to ensure available and predictable dispute settlement process. This will provide refuge 
for the weak and ensure continued existence of a rule based multilateral system.  
6.4.  The EAC countr ies are committed to ensure that the multilateral trading system provides 
equitable distribution of the benefits of the Multilateral Trading System (MTS) and effective 
integration of developing and least developed countries into the MTS, as well as adequat e polic y 
space for LDCs to industrializ e and promote structural transformation. Thus, the need for the 
development dimension to continue to be the core of post -Buenos Aires work and the course towards 
finding an appropriate solution to the concerns of the developing countries and the least developed 
countries.  
6.2  Bilateral and Regional Trade A greements  
6.5.  The EAC countries individually have a number of bilateral economic cooperation with a number 
of third parties. For example, Burundi has a trade and economic coo peration with Turkey; Tanzania 
has with Turkey, Singapore, India, Algeria, and Comoro s, among others. Rwanda has 23 bilateral 
trade agreements with both developed and developing countries. While Kenya has 27 bilateral trade 
agreements in force with both de veloped and developing countries that aim to strengthen the 
platforms of economic cooperation.  
6.6.  Two countries namely, Kenya and Rwanda have signed the Economic Partnership Agreement 
with the European Union (EAC -EU EPA). In addition, Kenya has ratified the a greement. However, 
Burundi, Tanzania and Uganda are still consulting at the Heads of State level.  
6.7.  The EAC countries have also jointly negotiated the Tripartite Free Trade Agreement (TFTA), 
which was signed by the Heads of States on 15 June 2015 in Egypt. The negotiations of the 2nd 
phase of the Agreement in Services, Intellectual Property, Competition Policy and Investment are 
due to commence in 2019. The Tripartite Task Force is coordinating the ratification and development 
of operational manuals for the implementation of the agreement.  
6.8.  All the EAC countries are negotiating the African Continental Free Trade Area (AfCFTA). The 
framework agreement establishing the AfCFTA was signed on 21 March 2018 in Kigali, Rwanda in 
addition to the Protocol on Free Move ment of Persons, Rights of Residence and Establishment.  
6.9.  The AfCFTA's general objective is to create a single market for goods, services facilitated by 
movement of persons in order to deepen the economic integration of the African continent and in 
accordanc e with the Pan African V ision of an integrated prosperous an d peaceful Africa enshrined in 
Agenda 2063.  
6.10.   The EAC countries continue to individually implement their commitments in other regional 
economic communities, namely, Common Market for Eastern and So uthern Africa (COMESA) where 
Burundi, Kenya, Rwanda and Uganda are implementing a full FTA; and Southern Africa Development 
Community (SADC) where Tanzania is also implementing a full FTA.  
6.11.   In short, the regional trade cooperation and development remains i s a priority for the EAC 
countries specifically to widen market access for EAC goods and services in a manner that would 
enhance economic transformation in the community.  
7  CONCLUSIONS  
7.1.  The policy reforms being initiated and pursued by the EAC under the various agendas is 
intended to consolidate and deepen EAC integration to provide more investment opportunities and 
greater transparency and predictably of the community within the multilat eral trading system. The 
customs and trade facilitation reforms will further enable the EAC to improve on the doing business 
rankings and competitiveness.  WT/TPR/G/ 384 • East African Community  
 
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7.2.  The EAC will continue to collaborate with development partners to provide infrastructure in the 
comm unity to address both the social and economic needs of the citizens.  
7.3.  The EAC countries have a shared view and believe in democratic process, rule of law and good 
governance to achieve sustainable economic growth and development. EAC will continue to pursu e 
a ruled -based system through strengthening judicial systems and institutions including the national 
and regional courts of justice, security and defence.  
7.4.  The region is still faced with a daunting challenge of addressing socio -economic constraints 
includ ing: disease and poverty. This will be achieved through promotion of regional value chains, 
proper land use, massive investment in agro -processing and manufacturing, as well as sound 
macroeconomic management.  
7.5.  The EAC countries believe in the multilateral trading system and are committed to ensure that 
it provides equitable distribution of the benefits through effective integration of LDCs into the MTS, 
as well as adequate polic y space for LDCs to industrializ e and promote structural and economic 
transforma tion.  
7.6.  The EAC is of the shared view that there is need for the development dimension of the Doha 
Development Agenda to continue as core component of the post -Buenos Aires work. Thus, an 
appropriate solution needs to be found to integrate the concerns of t he developing countries and 
LDCs.  
7.7.  EAC p artner States still require Trade Related Technical Assistance and Capacity Building (TRTA 
and CB) for i nstitutional strengthening and human resource d evelopment to improve their 
negotiating capacity and implementati on of r egional and multilateral trade agreements.  
__________