Business leaders across East Africa are calling for urgent changes to tax and trade policies to make it easier for companies to operate across borders. The East African Business Council (EABC), which represents private sector interests in the region, has asked governments to harmonize fiscal policies and remove trade barriers that slow down business growth.

The push comes ahead of national budget discussions in East African Community (EAC) member states. Currently, trade between EAC countries stands at just 15%, worth $12.1 billion. The EABC believes this can grow to 25%, or $80 billion, if governments work together to create a more business-friendly environment.

Uganda, with an economy valued at $53.7 billion in the 2023/24 financial year, could play a key role in boosting regional trade. However, businesses say inconsistent tax rules and trade restrictions make it difficult to expand across borders. To fix this, the EABC has proposed several changes.

One major recommendation is the uniform application of the East African Community Common External Tariff (CET). This means reducing exceptions that allow some countries to charge different import duties. The EABC argues that a consistent tariff system will encourage local production and reduce reliance on imports from outside the region.

Another proposal is the removal of discriminatory taxes on goods made within East Africa. Some countries charge extra fees on products from neighboring EAC states, making them more expensive than imported goods. The EABC wants these charges eliminated to lower costs for traders and consumers.

The business council also wants faster progress toward a single East African currency by 2032. To achieve this, it says governments must align their fiscal and monetary policies. This includes coordinating tax systems, inflation control measures, and interest rates to create a stable economic environment.

Illicit trade is another big concern. The EABC is pushing for a regional “Track and Trace” system to monitor goods moving across borders. This would help curb smuggling and counterfeit products, which cost governments millions in lost revenue and hurt legitimate businesses.

Simon Kaheru, Vice-Chair of the EABC’s Uganda Chapter, stressed that harmonized policies will benefit both businesses and ordinary citizens. “When trade flows smoothly, companies grow, jobs are created, and incomes rise,” he said. “Uganda has a strong role to play in making this happen.”

Lawmakers have welcomed the proposals but urged the private sector to stay engaged beyond budget discussions. Dickson Kateshumbwa, who chaired a recent meeting with EABC representatives, said businesses must work closely with governments throughout the year. “We agree with your recommendations, but the private sector must also take more action,” he said.

The EABC’s push comes at a crucial time. The East African economy is expected to grow by 5.7% in 2025, but challenges like high trade costs and policy inconsistencies could slow progress. If governments act on these proposals, businesses could expand faster, creating more jobs and boosting prosperity across the region.

With deeper economic integration, East Africa could become a stronger trading bloc, competing more effectively on the global stage. The EABC’s recommendations offer a roadmap to achieve this—but success depends on whether governments and businesses can work together to turn these ideas into reality.

For now, all eyes are on upcoming budget decisions. If East African leaders take bold steps toward policy harmonization, the region could see a major trade boost—unlocking new opportunities for millions of people.