In a new bid to boost trade in East Africa, the East African Business Council (EABC) has organized a consultative meeting on the development of the regional services policy advocacy agenda. According to EABC board member Mr. Emmanuel Butare, the platform is key in providing a space for service sector actors to shape a game-changing policy advocacy agenda aimed at boosting trade in services across the region.
He stated that, according to the EABC Barometer on Trade in Services, Rwanda leads in service trade commitments in the region. Based on Annex V of the Common Market Protocol (CMP) on the Schedule of Commitments on the Progressive Liberalization of Services, Burundi has scheduled 73 commitments, Kenya 53, Rwanda 100, Tanzania 46, and Uganda 99.
Butare highlighted that the services sector contributes between 40% and 55% of the region’s GDP. He further emphasized that structured public-private dialogue and strategic advocacy are essential for breaking regulatory barriers and enhancing the competitiveness of services within the East African Community (EAC) bloc.
The consultative meeting allowed service sector actors in Rwanda to discuss the implications of policies on services trade across EAC borders and to chart out an institutionalized dialogue mechanism to strengthen engagement with governments. This engagement aims to unlock the services trade opportunities presented by the EAC Common Market Protocol.
Ms. Anneth Kenganzi, Senior Export Promotion Officer at the EAC Secretariat, emphasized the need to address private sector concerns to ensure that policies effectively support businesses. “Services play a critical role in supporting other sectors such as manufacturing,” she stressed, commending EABC for its instrumental role in negotiations and advocacy for the service sector.
Mr. Lamech Wesonga, Economic Policy Advisor to the EAC Secretariat on the African Continental Free Trade Area (AfCFTA), underscored the importance of dialogue in boosting trade in services in Rwanda and across the EAC. He commended EABC for its proactive initiatives and reiterated GIZ’s commitment to partnering with the private sector and governments to enhance trade in services within the region and across the continent.
The consultative workshop, supported by GIZ, brought together over 40 private sector representatives from diverse industries, including transport and logistics, healthcare, engineering services, professional services, and ICT, among others.
Under the first phase of EAC services liberalization, Partner States negotiated seven priority service sectors under the EAC CMP. These sectors include business, communications, distribution, education, financial services, tourism and travel, and transport services. Based on Annex V of the CMP on the Schedule of Commitments on the Progressive Liberalization of Services, Burundi has scheduled 73 commitments, Kenya 53, Rwanda 100, Tanzania 46, and Uganda 99.
At the broad sector level, Rwanda had the highest percentage of sub-sectors with commitments in the old schedule at 76%, followed by Uganda at 73%, Kenya and Burundi at 62%, and lastly, Tanzania at 54%. In the new schedule, Uganda and Rwanda lead with commitments in 73% of the potential subsectors, followed by Kenya and Burundi at 70%, and Tanzania at 59%.
Under the AfCFTA, EAC Partner States have made commitments in five priority service sectors, in line with the AfCFTA Trade in Services Protocol and related guidance. Rwanda leads with 68 sub-sectors, followed by Kenya with 55 sub-sectors. Based on the five AfCFTA priority sectors, the EAC has made 157 fewer commitments under the AfCFTA at the sub-sector/sub-sub-sector level, which aligns with the principles of economic integration, given that the EAC is a common market.
In his opening remarks, Dr. Samwel Nyantahe, Goodwill Ambassador of the EABC, emphasized the importance of structured dialogue and cohesive advocacy in advancing the services sector within the EAC region. “Over the past three decades, the services sector has been instrumental in driving global economic transformation, and the EAC region is no exception.”
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The services sector contributes between 40% and 55% of the EAC region’s GDP. However, despite the commitments made under the EAC Common Market Protocol (CMP) and the African Continental Free Trade Area (AfCFTA), businesses continue to face regulatory inconsistencies, restrictions on free movement, and investment limitations that hinder full trade liberalization. Dr. Nyantahe stressed the importance of bringing together stakeholders from various service sectors to identify challenges, explore opportunities, and develop actionable solutions that will drive services trade integration in the region.
Mr. Lamech Wesonga, Economic Policy Advisor on AfCFTA for EAC-GIZ, highlighted the need for an institutionalized dialogue mechanism for services trade at the regional level. He reiterated GIZ’s commitment to partnering with the EAC Secretariat, governments of EAC Partner States, and EABC to advance this agenda.
Representing the EAC Secretariat, Ms. Annette Kenganzi, Senior Export Promotion Officer, noted that at the regional level, EAC Partner States had committed to eliminating restrictions in seven key subsectors under the Common Market Protocol—Business, Communication, Transport, Distribution, Education, Tourism & Travel, and Financial Services—by 31st December 2015. However, more than a decade later, these restrictions remain, even as the region prepares to commit to an additional five subsectors under the protocol.
“The ongoing institutionalized mechanism is timely, as service sector actors can provide critical input into discussions on removing existing restrictions and upcoming negotiations for commitments in the remaining five subsectors—Health & Social Services, Recreational, Cultural & Sporting Services, Energy Services, and Construction & Related Services,” she added.
According to the EABC Barometer on Trade in Services, Tanzania has made 46 commitments under the CMP’s Schedule of Commitments on Progressive Liberalization of Services. However, challenges persist, including fragmented regulatory frameworks, a lack of mutual recognition agreements (MRAs) for professionals, and limited cross-border market access.
By Kamau Njoroge.
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