Private sector leaders from across the East African Community (EAC) have approved a series of proposals aimed at boosting trade in services, a move expected to drive economic growth and regional integration. The East African Business Council (EABC), in collaboration with the EAC Secretariat and with support from GIZ, recently convened representatives from all eight EAC Partner States to validate a draft Regional Policy Advocacy Agenda. This agenda seeks to eliminate barriers to trade in services and unlock the sector’s potential as a key driver of economic transformation.

The services sector is a cornerstone of the EAC economy, contributing between 40% and 55% of the region’s Gross Domestic Product (GDP). Despite its significance, trade in services has faced numerous challenges, including regulatory barriers, limited market access, and restrictive immigration policies. The newly validated agenda aims to address these issues by fostering a more conducive environment for services trade.

Stuart Mwesigwa, Goodwill Ambassador of the EABC, emphasized the importance of the services sector in fostering sustainable development. “The services sector holds immense potential in attracting investment, creating jobs, and driving economic growth,” he said. “Its full liberalization will unlock opportunities for millions of businesses and professionals across the region.”

The draft agenda was developed following extensive national consultations that assessed the state of services trade liberalization in the EAC. Key recommendations include the establishment of an institutionalized dialogue mechanism between the private sector and governments. This mechanism is designed to enhance policy engagement and remove regulatory barriers that hinder trade in services.

Sofian Dahmani, representing the European Union Delegation, highlighted the critical role of services in economic development. He noted that services account for approximately 70% of the EU’s GDP and 33% of total trade within Europe. Dahmani reiterated the EU’s commitment to supporting the EAC through the EU-GIZ Project on Leveraging Integration Frameworks for Trade in Services and Civil Society Organizations in the EAC (LIFTED). “We are committed to assisting the EAC in removing barriers to trade in services, strengthening private sector advocacy, and enhancing competitiveness,” he said.

Ms. Estella Aryada, GIZ Component Lead for Trade in Services, underscored 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 explained. 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 about the proposed dialogue mechanism. She noted that it would 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 across borders. 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. By addressing barriers and fostering a more inclusive dialogue between the private sector and governments, the EAC is poised to unlock the full potential of its services sector, paving the way for a brighter economic future for the region.