By Staff Writer
East African Business Council (EABC), in partnership with the EAC Secretariat and GIZ, gathered private sector leaders from all eight EAC Partner States to validate a regional policy advocacy agenda aimed at dismantling trade barriers and expanding the services sector across the East African Community.
The draft regional policy advocacy agenda was developed following successful national consultations that examined the state of trade in services liberalization and outlined key proposals to eliminate barriers.
Among the key recommendations is the establishment of an institutionalized dialogue mechanism between the private sector and governments to enhance policy engagement.
In his opening remarks, during the two-day Regional Validation Meeting, Mr. Stuart Mwesigwa, Goodwill Ambassador of EABC, emphasized the importance of the services sector, stating, “With services contributing between 40-55% of the region’s GDP, the sector holds immense promise in fostering sustainable development, investment, and job creation.”
Mr. Sofian Dahmani from the European Union Delegation highlighted that the services sector accounts for about 70% of the EU’s GDP and 33% of total trade in Europe.
He further noted that the EU-GIZ Project on Leveraging Integration Frameworks for Trade in Services and Civil Society Organizations in the EAC (LIFTED) will enhance services liberalization, boost exports at both the EAC and continental levels, and strengthen trade ties with the EU.
He reiterated the EU’s commitment to supporting the EAC services market through the removal of barriers, capacity building for the private sector to advocate for market access, and initiatives to enhance business competitiveness, inclusivity, and sustainable economic growth.
Ms. Estella Aryada, GIZ Component Lead Trade in Services underscored the transformative role of services, stating that sectors such as marketing, design, and logistics drive innovation, manufacturing, and exports, while health and education services improve well-being and sustainable development.
She emphasized that liberalization of services is crucial for boosting investment and economic growth across all sectors.
Ms. Aryada also reaffirmed GIZ’s commitment to supporting the private sector in establishing an institutionalized dialogue mechanism for trade in services, aimed at removing regulatory barriers and streamlining services trade across the region.
Ms. Annette Kenganzi, EAC Senior Export Promotion Officer, expressed optimism that the proposed institutionalized mechanism would be integrated into both national and regional trade committees, feeding into Ministerial-level discussions at the Sectoral Council on Trade, Industry, Finance, and Investment.
She further highlighted that the mechanism will support the implementation of the EAC Trade in Services Strategy and drive forward key policy reforms for enhanced regional trade.
The EABC Regional Policy Advocacy Agenda on Trade in Services serves as blue print to ensure that the private sector has a structured, coordinated, and influential role in shaping the trade in services landscape within the East African Community (EAC).
The agenda outlines several key priorities, including improving data collection and market intelligence to support informed policy decisions, enhancing services sector competitiveness and export readiness, and accelerating services integration and regulatory reforms to remove trade bottlenecks.
It plans to addresses investment barriers, taxation challenges, and immigration restrictions, particularly those limiting the movement of skilled professionals within the region.
The agenda outlines key sector-specific advocacy areas and recommendations crucial for boosting trade in services.
These include the accelerated implementation of Mutual Recognition Agreements (MRAs) to ease the movement of professionals under business services, reducing costs and improving the affordability of communication, harmonizing regulations, and simplifying market entry requirements for distribution services.
The recommendations also include: harmonizing financial regulations for banking and finance sector, opening skies, streamlined air access, and visa regulations for tourism, addressing road freight costs and infrastructure gaps in the transport and logistics sector, as well as harmonized policies to facilitate cross-border mobility for education.
To further deepen 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 the development of private sector positions for each sector to ensure private sector interests are well represented in the liberalization process.
The private sector leaders also visited Roofings Group production plant in Namanve and discussed interlinkages of the manufacturing and services sector.