The East African Business Council (EABC), in collaboration with the East African Community (EAC) Secretariat and with support from GIZ, recently convened private sector leaders from associations across all eight EAC Partner States to validate proposals for the regional policy advocacy agenda.
The agenda aims to eliminate barriers to trade in services and accelerate economic growth across the region.
The draft Regional Policy Advocacy Agenda was developed after successful national consultations assessing the state of services trade liberalization.
Key recommendations include the establishment of an institutionalized dialogue mechanism between the private sector and governments to enhance policy engagement and remove regulatory barriers.
With services contributing between 40-55% of the EAC’s Gross Domestic Product (GDP), the sector is vital for the region’s economic transformation.
Stuart Mwesigwa, Goodwill Ambassador of the EABC, emphasized its importance, stating, “The services sector holds immense potential in fostering sustainable development, attracting investment, and creating jobs.
Its full liberalization will unlock opportunities for millions of businesses and professionals across the region.”
Sofian Dahmani from the European Union Delegation highlighted that services account for approximately 70% of the EU’s GDP and 33% of total trade within Europe.
He emphasized that the EU-GIZ Project on Leveraging Integration Frameworks for Trade in Services and Civil Society Organizations in the EAC (LIFTED) will support services liberalization, expand EAC exports, and strengthen trade ties with the EU.
“We are committed to assisting the EAC in removing barriers to trade in services, strengthening private sector advocacy, and enhancing competitiveness,” Dahmani stated, reiterating the EU’s role in capacity-building initiatives that facilitate market access.
Ms. Estella Aryada, GIZ Component Lead for Trade in Services, echoed this commitment, highlighting the transformative role of services in driving other industries. “Sectors such as marketing, design, and logistics fuel innovation, manufacturing, and exports, while health and education services contribute to human capital development,” she noted. Aryada reaffirmed GIZ’s commitment to supporting structured private sector engagement to streamline regulatory frameworks across the region.
Ms. Annette Kenganzi, EAC Senior Export Promotion Officer, expressed optimism that the proposed dialogue mechanism will be integrated into both national and regional trade committees, feeding into Ministerial discussions at the Sectoral Council on Trade, Industry, Finance, and Investment. “This mechanism will strengthen the implementation of the EAC Trade in Services Strategy and drive forward crucial policy reforms,” she emphasized.
The EABC Regional Policy Advocacy Agenda on Trade in Services serves as a blueprint to enhance the private sector’s role in shaping services trade policy.
It aims to improve data collection and market intelligence to support informed policy decisions. Additionally, it seeks to address investment barriers, taxation challenges, and immigration restrictions, particularly those limiting the movement of skilled professionals within the region.
Several sector-specific recommendations are being considered to strengthen services trade.
For instance, the accelerated implementation of Mutual Recognition Agreements (MRAs) will ease the movement of professionals.
In the communications sector, reducing costs and improving affordability will enhance digital trade. Meanwhile, harmonizing banking regulations will facilitate smoother financial transactions across member states.
To further regional integration, the EAC has committed to negotiating five additional service sectors: energy services, environmental services, health and social services, construction and related engineering services, and recreation, cultural, and sporting services.
The agenda also prioritizes developing private sector positions for each sector to ensure their interests are well represented during the liberalization process.
Experts say that the validation of these proposals marks a significant step toward creating a more competitive and integrated EAC services market. With the right policy frameworks in place, the private sector stands to benefit from improved market access, increased investment, and enhanced economic cooperation.
The collaborative efforts between EABC, EAC, GIZ, and the EU signal a strong commitment to advancing regional trade in services for sustainable economic growth.