Unlocking East Africa’s Economic Engine: EAC Calls for Bold Private Sector Partnership to Accelerate Intra-Regional Trade

The East African Community (EAC) is intensifying its call for robust public-private partnerships, recognizing them as the critical lever to unlock the region’s vast economic potential and accelerate intra-regional trade. This urgent plea was central to discussions at the EABC CEO Trade and Investment Roundtable held in Dar es Salaam on August 5, 2026, a forum themed “Enhancing Competitiveness in the EAC to Boost Intra and Extra-EAC Trade and Investment.”

Despite boasting one of Africa’s largest integrated markets – encompassing over 331 million people and a combined Gross Domestic Product (GDP) of approximately US$357 billion – the EAC faces a persistent challenge: its intra-EAC trade remains significantly below its potential. Hon. Amb. Stephen P. Mbundi, the EAC Secretary General, underscored this disparity, emphasizing the indispensable role of the private sector in driving the region’s economic transformation and deepening integration.

Data from 2025 painted a clear picture: total EAC trade reached US$156.7 billion, but a substantial US$137 billion of this was with external partners, leaving only US$19.7 billion in trade between EAC Partner States. This stark contrast highlights considerable untapped opportunities within the regional market, opportunities currently hampered by a confluence of systemic issues.

Amb. Mbundi attributed these low internal trade volumes to persistent non-tariff barriers, a patchwork of regulatory inconsistencies, critical infrastructure bottlenecks, and limited access to finance, particularly for vital micro, small, and medium-sized enterprises (MSMEs) that form the backbone of many regional economies. These obstacles not only stifle growth but also impede the free flow of goods, services, and capital essential for a truly integrated market.

To overcome these hurdles, the EAC has set an ambitious target: to increase the share of intra-regional trade to 50 percent by 2030. Achieving this goal, which Secretary General Mbundi affirmed as “one of the Community’s foremost priorities,” will demand more than just goodwill. It requires an unwavering commitment to stronger collaboration between governments, regional institutions, and the private sector, coupled with the consistent implementation of agreed-upon regional commitments.

Business leaders at the roundtable were challenged to move beyond problem identification and instead develop practical, innovative, and measurable solutions. The focus, Amb. Mbundi articulated, should be on strengthening regional value chains, attracting new investments, enhancing the global competitiveness of East African enterprises, and fostering a more conducive overall business environment that benefits all stakeholders.

Looking ahead, the insights and recommendations gathered from the Roundtable will directly inform the Annual EAC Trade and Investment Climate Report, scheduled for launch during the forthcoming EAC Investment Forum in September 2026. This report is poised to provide further strategic guidance on improving the region’s investment climate and deepening private sector engagement in regional economic development.

Beyond current trade figures, the Secretary General also highlighted the imperative of harnessing East Africa’s significant demographic dividend. With over 75 percent of its population being youth, strategic investments in skills development, innovation, entrepreneurship, and digital transformation are crucial. Bolstering access to finance for this young, dynamic demographic is seen as key to positioning East Africa as a globally competitive hub for manufacturing, services, and investment.

In his closing remarks, Amb. Mbundi reaffirmed the EAC Secretariat’s resolute commitment to working hand-in-hand with Partner States, the private sector, and other stakeholders. The ultimate aim is to deepen regional integration through the free movement of goods, services, labor, and capital, systematically dismantle trade barriers, and implement policies that cultivate a truly competitive and integrated regional economy. The call is clear: the time for actionable solutions to bridge the gap towards the 2030 intra-EAC trade target is now.