In the East African Region, Infrastructure is a Prerequisite for Seamless Trade

By Booster Wabuyabo

The quest For Regional Economic Integration

Recent blackouts at Jomo Kenyatta International Airport, congestion at Dar es Salaam port, and the narrow roads at Busia border highlight significant infrastructure challenges faced by several East African Community (EAC) member states. They present a precarious situation in cross-border trade although significant strides made in promoting cross-border trade including; policy harmonization, establishment of common markets and pursuing other regional trade agreements have been made. One such agreement is the Africa Continental Free Trade Area Agreement; which is one of the flagship projects of UN agenda 2063 for African development.

Despite all these efforts to promote economic integration and regional trade, one critical issue continues to hamper the full potential of cross-border trade within the region: Infrastructure deficiency. The state of roads, ports, railway and energy networks across the region is inconsistent and often subpar leading to increased costs, delays and uncertainties for businesses engaging in cross-border trade within the bloc.

Transport Network and Connectivity: The Backbone of Regional Trade

Road transport is the most widely used means of moving goods within the East African Community. However major highways, such as those in the northern corridor and feeder roads connecting member states are still in poor condition. Potholes, unpaved sections and narrow lanes are common particularly in rural areas which are vital in accessing regional markets as is common on the  Kisumu-Busia Road which connects Kenya and Uganda.

The poor state of these roads not only increases transportation costs due to vehicle maintenance and fuel consumption but also leads to delays. These delays in turn cause significant logistic challenges for traders seeking access to international markets and may cause perishable goods to spoil leading to losses.

The East African Community member states need to constitute a strategic priority plan to rehabilitate and upgrade most of their road networks. A contingency fund also needs to be set aside for time-to-time maintenance if need arises. Setting up a pipeline system for transportation of petroleum products can also immensely reduce road damage by heavy tankers.

Port and Border facilities: The Achilles” Heel of Regional Integration

Ports and Border posts are crucial gateways to international trade. However, the inefficiencies in major ports like that of Mombasa and Dar es salaam are well documented. Congestion, slow customs clearance processes and inadequate infrastructures at these ports leads to a significant delay and increased costs for importers and exporters.

“Neighboring member states have to work in collaboration to expand and upgrade border post infrastructure if cross-border trade is to thrive.”

Border facilities within the East African Community also suffer from infrastructure deficit since many border posts are inadequately equipped to handle the volume of trade passing through them. While one stop border posts such as that in Namanga border were introduced to streamline cross-border trade, the success of these facilities is hindered by inadequate infrastructure. Limited staffing and insufficient physical space at some border posts such as the Busia border result in long queues, slow processing, delays and in some cases corruption.

These issues discourage traders and reduces competitiveness of goods from the region in international trade. Small and medium size enterprises which are the backbone of the East African Community’s economy are particularly vulnerable to these challenges as they lack the resources to navigate the bureaucratic and logistical hurdles that arise from infrastructure deficiencies. Neighboring member states have to work in collaboration to expand and upgrade border post infrastructure if cross-border trade is to thrive.

Energy and Communication Networks: The Underpinning of Modern Trade

Beyond physical and transportation infrastructure, the deficiencies in energy and communication infrastructure are equally detrimental to trade. Reliable electricity is essential for manufacturing, processing and preserving goods yet inconsistent supply and power outages are common across the region. In Kenya for example there has been a series of power outages, the notable one being at the Jomo Kenyatta International Airport in Nairobi causing inefficiencies such as delayed clearances. Furthermore, the lack of robust communication infrastructure particularly in rural and remote areas limit the ability of businesses to engage in modern practices such as e-commerce. This unreliability increases operational costs of businesses making it difficult for them to compete on prices with goods from regions with more stable energy supply and sufficient digital infrastructure.

The potential of e-commerce to boost cross-border trade within the region is immense but can only be realized if necessary the infrastructure is in place. East African Community member states need to invest in improving internet connection, digital infrastructure and a more reliable energy system lest they risk being left behind as the global economy is increasingly digitalized.

A Call for Action: Investing in Infrastructure for Trade

The future of the East African Community as a thriving economic bloc depends on its ability to overcome the infrastructure challenges that currently impede cross-border trade. By investing in and prioritizing infrastructure development, the East African Community can unlock its full trade potential, fostering economic growth and improving the livelihoods of millions of people across the region.

Infrastructure development is not just a necessity for trade; it is the foundation upon which the East African Community’s future prosperity will be built. With the right investments and a commitment to regional cooperation, the East African Community can transform its infrastructure landscape and realize its vision of becoming a globally competitive and integrated economic region.

These are the writer’s own opinions and do not necessarily reflect the viewpoints of Liberty Sparks. Do you want to publish in this space? Contact our editors at [email protected] for further clarification.