March 15, 2025
EAC Launches New Tariff System Affecting Trade, Connectivity

EAC Launches New Tariff System Affecting Trade, Connectivity

The East African Community (EAC) has introduced a redesigned single tariff platform to expedite regional commerce and allow member nations to share customs and trade data in real-time.

The platform, which was introduced on Tuesday in Arusha as part of the ongoing African Heads of State Energy Summit, intends to improve efficiency, reduce cargo clearance times, and address issues such as non-tariff barriers.

Cargo system clearance Long processes have always impeded trade between EAC member states.

This has resulted in many goods taking longer to arrive at the Kenyan and Tanzanian ports of Mombasa and Dar es Salam, on which the majority of EAC member states rely for cargo transportation.

Kenya’s major seaport, the Port of Mombasa, handled 29.92 million tons of cargo in the first nine months of 2024, up from 26.68 million tonnes in the same time last year.

According to a report issued by the Kenya Ports Authority (KPA) in 2024, Uganda supplied a major share of the traffic.

According to the KPA, the Port of Mombasa remains a vital economic hub in East Africa, and these hopeful results highlight its strategic importance in supporting regional commerce and connectivity.

The single tariff system will reduce excessive transaction costs in East Africa, while also aiming to increase commerce among its member states.

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The system would also include additional features to facilitate maritime commerce integration and scanner image sharing between Kenya and Uganda, hence improving openness in customs processes.

According to official documentation from EAC trade partners, the platform will also improve regional trade integration.

Historically, alleged ideological differences among EAC member states have hampered free trade.

Additionally, constraints on the free movement of persons and products have evolved as member states compete to impose their own customs procedures, impacting regional trade even more.

EAC Launches New Tariff System Affecting Trade, Connectivity

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