When the COVID-19 pandemic crisis started; most people were extremely pessimistic and predicted that the EAC region would drown in terms of trade declining catastrophically. But in fact, the East Africa Community economies (Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda) have, by global standards, proven to be relatively resilient. The newly launched joint report by UN Economic Commission for Africa (UNECA), TradeMark Africa (TMA) and African Economic Research Consortium (AERC) entitled “Waving or Drowning? The Impact of the COVID-19 Pandemic on East African Trade” notes that declines in imports broadly reflected the adverse trade performance of the EAC’s main trading partners during the early phases of the pandemic in April and May 2020, but the imports of all the EAC Partner States subsequently recovered to pre-pandemic levels by the second half of 2020, after governments’ lockdown restrictions were eased, and a broader global trade recovery started to take place. Nonetheless, despite showing resilience, COVID-19 has reversed some of the gains made in trade facilitation. Immediately after COVID-19 outbreak, the ship dwell time at Mombasa port increased by 48% and Berth time increased by 52%. Cargo transit from Mombasa Port to Malaba (the border between Kenya and Uganda) increased from 7 days to 11 days by the second quarter of 2020. The time taken to transport goods via the Mombasa-Busia route was nearly three times higher. On the Central Corridor, the transit time from Dar-es-Salaam to various cities in the neighbouring countries more than doubled. The marked increase in transit...
Economic diversification in East Africa: Time to redouble efforts
Posted on: February 18, 2021
Posted on: February 18, 2021