Africa: 15 years of mixed fortunes for EAC Common Market protocol

Zawya

4 days ago

Touted as the engine that has driven the East African Community (EAC) integration since 2010, the Common Market Protocol (CMP) marks 15 years of mixed fortunes.
The protocol guarantees free movement of goods, services, labour and capital, as well as the right of establishment and residence.
This initiative is part of the broader framework of four pillars, the others being Customs Union, Monetary Union and Political Federation.
Beatrice Askul, EAC Council of Ministers chair, who is also Kenya's EAC Cabinet Secretary, said the Common Market has been instrumental in facilitating free movement of goods, services, labour and capital.
The region has seen reduction of non-tariff barriers (NTBs), thanks to a single customs territory. At its inception following the coming into effect of the Customs Union in 2005, there were 254 NTBs, but there were fewer than 50 by May 2025. However, a recent analysis shows a decline in intra-EAC trade, from 16 percent to 14 percent.'Despite the vision, implementation has lagged, NTBs persist,' said Kennedy Mukulia, chairperson of the Committee on Legal, Rules and Privileges in the East African Legislative Assembly.'The ratification of the Protocol has been slow and uneven, especially Article 24, which provides for the establishment of the Trade Remedies Committee.'Recently, the NTBs Sectoral Committee on Trade considered the report on the status of NTBs in the region and noted that the number had increased from 10 to 48 from November 2024 to May 2025.
Under the CMP freedom of services, partner states committed to liberalise seven priority service sectors, namely business, communications, distribution, education, financial, tourism and travel, and transport services.
Services also account for the largest share of employment, particularly in Kenya, where 55.1 percent of the workforce is engaged in services-related jobs.
Despite these figures, services trade remains underutilised, contributing less than 15 percent of GDP in most EAC partner States, except for South Sudan, where service exports constitute 63 percent of GDP according to ITC, 2024 report.'In the EAC, the expansion of tourism and transport services has contributed significantly to service exports, particularly in Tanzania, Kenya and Uganda, where these sectors constitute over 30 percent of total services exports,' said Adrian Njau, the lobby's acting chief executive.'However, challenges such as regulatory fragmentation, limited digital infrastructure and market access restrictions continue to constrain the full realisation of services trade potential.'New commitments have been made in business, transport and financial services, strengthening the foundation for an integrated EAC services market.
In addition, the Revised Schedule of the Progressive Liberalisation of Trade in Services which was adopted by 2024 has included horizontal commitments which will govern movement of mode 4 — Movement of Natural Persons.
Previously the Movement of Natural Persons was very restricted as it was linked with the movement of workers.
Under the Revised schedule, the four EAC Partner States; Burundi, Kenya, Rwanda, and Uganda, made a commitment to allow temporary Movement of Natural Persons under five categories which are contractual service suppliers, independent service suppliers, Business visitors, Intra Corporate Transfers (ICT), Trainers.
Tanzania made commitments on the five categories except ICT and trainers.
However, labour mobility still faces substantial obstacles. While Kenya, Uganda, and Rwanda have abolished work permit fees, challenges remain in Tanzania and Burundi. Tanzania still charges work permit fees for EAC nationals while Burundi is yet to embrace labour mobility.
For instance, professionals in legal, engineering, and financial services face differing national compliance requirements, limiting their ability to work freely across borders.
A recent example was the deportation of Senior counsel Martha Karua by Tanzanian authorities when she travelled to Dar es Salaam to morally support Chadema Party leader Tundu Lissu who is currently on trial over treason charges'We must also review and amend national laws that contradict the spirit of the Protocol. And we must promote mutual recognition agreements to ensure that our professionals can work seamlessly across borders,' said Mukulia.
Another significant development is growth in service exports, positioning the EAC as a net exporter of services.
Between 2018 and 2022, total service exports increased from $14 billion to $17.1 billion, driven by strong performance in tourism, financial services, and ICT.
Kenya continues to lead as the largest exporter of services, while Rwanda, Uganda, and Tanzania have also expanded their service trade activities.
The region has also made strides in digital integration, particularly through the One Network Area (ONA) initiative, which has lowered regional roaming charges and improved mobile communication.
This initiative has enhanced regional connectivity, although some Partner States such as DRC and Somalia are yet to join the framework.
However, some EAC countries including DRC and Somalia are yet to internalise EAC protocols slowing the process of interconnectivity.
The EAC has been led down by the political class cronyism whose appointees head the various organs and institutions with zero knowledge on how to drive the integration agenda forward.
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