The Milestone

On Wednesday, September 27, 2023, East Africa’s traditional states Kenya, Tanzania, and Uganda put on a brotherly show as they recorded their first-ever joint bid victory to host the Africa Cup of Nations tournament in 2027. The victory was a sporting milestone that could or rather should come with more flexible trading and mobility blessings among the winning states. When the red carpet is rolled for the first game in Nairobi, Dar es Salaam, Kampala, or any other lucky City, the countries’ populations should be celebrating enhanced freedom of movement and more complimentary trade regulations. What remains to be seen is whether East Africa’s joint sporting venture will be translated into an economic victory or a competition of who gets what.

Lessons from other ventures

Major sporting events come with numerous economic advantages. The hospitality industry usually takes the lion’s share of the benefits as hotels and tourist destinations receive guests at inflated prices. Joint ventures are even more interesting in the way they benefit the host nations. Joint bids in past tournaments across the world have always been among neighboring states that share some level of free movement and relatively loose trade engagements. Think of the Japan-South Korea World Cup in 2002 or the planned US-Canada-Mexico World Cup in 2026 – close neighbors that share a lot in business, peace, and political terms, seeking even closer partnership.

In 2002, South Korea and Japan jointly hosted a FIFA World Cup. Although the two countries have a historically strained political relationship owing to Japan’s past imperialistic interests, they forged a healthy bilateral relationship and pulled off a sporting and economic milestone. Their trading relationship was built on the General Agreement on Tariffs and Trade (GATT), which emphasized freer international trade for economic prosperity. More specifically, GATT targeted nondiscriminatory treatment among parties and the removal of trade barriers. Both countries enjoyed massive economic benefits from the tournaments. Some of the outcomes included increased job openings, industrial revenues, a boom in the construction sector, and economic growth rates.

The United States, Canada, and Mexico will jointly host the 2026 FIFA World Cup. Already, the US and Canada are planning ahead with improved relations. The two North American states plan to eliminate virtually all cross-border trade restrictions and ensure compatibility of regulations in transport, food, health, environment, and chemicals, among other products. To further include Mexico into the fold, The US-Mexico-Canada Agreement of 2020 is another mechanism that will simplify regional integration for the three countries, making trade and mobility easier among them. Past and present examples indicate that ease of mobility and trade help countries make the most of these grand tournaments.

Status Quo and What the future holds

Given the current trading challenges between the EAC member states, it’s hard to predict how preparations for the AFCON tournaments will play out in trading terms. As per AfDB’s report of 2022, East Africa’s regional integration continues to suffer from poor complementarity in trading, poor competition among countries, weak institutions that cannot foster meaningful integration, and continued political scuffles. Although the EAC foundations highlight free movement of persons as a key requirement for full integration, some restrictions still make the member states a bit alien to one another.

“At some point, EAC members should allow their citizens to travel within the region using their National Identity Cards instead of passports and implement a one-visa arrangement across the region.”

The 2027 AFCON tournament needs to be prepared. There will be a lot of construction activities, improvements in tourist destinations, and many more activities. Will these three states allow free movement of workers to accomplish these tasks? Will protectionism prevail over enhanced fraternity? Will each country front its own tourist attractions individually and try to be the bigger of the three? These questions can best explain the measures that must be taken to ensure an economically beneficial tournament for all East Africans.

Past experiences show that tourism is an integral part of international tournaments. Games bring players, fans, and officials in their thousands, opening a unique tourism opportunity. Kenya, Uganda, and Rwanda are the only East African countries with a one visa agreement. This means a tourist only needs to enter the EAC through Kenyan entry points and travel to Uganda and Rwanda with ease. Tanzania is not part of that pact! Will tourists have to avoid visiting Tanzania if they enter through Kenya and vice versa? The likeliest scenario, if laws of integration do not change, is that it will be easier to visit more EAC countries if one’s entry is Kenya than Tanzania.

The 2023 cross-border trade report in East Africa highlights overdependence on food as a commodity largely shared among countries, mostly maize and rice. However, the sporting event will likely open more doors in the hospitality and transportation industries. Games will be hosted in cities across the three host states, meaning accommodations and transportation facilities will most likely be shared. All three countries have their airlines, and flights will most likely be the only option for intra-regional transport. How the hosts agree on sharing these opportunities will open a door for future partnerships and trade engagements.

The East African Community needs to embrace a freer plan that allows free movement and free trade for its members. At some point, EAC members should allow their citizens to travel within the region using their National Identity Cards instead of passports and implement a one-visa arrangement across the region. As we continue to rejoice and celebrate the AFCON pamoja bid triumph, let’s not forget that rigid trade and mobility arrangements may end up spoiling this highly anticipated event.