How East African economies can recover from the COVID-19 pandemic

The COVID-19 pandemic has wreaked havoc on the global economy, and East Africa has not been spared from its negative impact. Frank Matsaert, CEO of Trademark East Africa, shed light on the devastating effects of the pandemic on the region's trade and economy. According to Matsaert, both exogenous and endogenous trade have been severely affected. Exogenous trade, which involves trade with countries outside of the continent, has seen a significant decline, with ports from China experiencing a 25% drop in trade in the initial months of the pandemic. Similarly, endogenous trade within the continent has also suffered, with inter-regional trade witnessing a sharp decline. The closure of borders, restrictions on movement, and plummeting informal trade have further exacerbated the situation. Key sectors such as tourism and horticulture have been particularly hard hit, leading to substantial losses in revenue and jobs. In response to these challenges, Trademark East Africa has initiated the Safe Trade Facility to support governments in keeping trade flowing amidst the pandemic. The facility aims to address border closures, new regulations, and disruptions in value chains to ensure the continued movement of essential goods. By promoting safe practices at borders and ports, screening truck drivers for the virus, and facilitating the distribution of food and medical supplies, Trademark East Africa is working towards mitigating the adverse effects of the pandemic on trade. Additionally, the organization is advocating for collaboration between countries to streamline trade processes and reduce duplication of efforts, such as COVID-19 testing at border points. Matsaert emphasized the importance of supporting export industries to maintain their operations and address challenges like surging air freight charges. The focus is on fostering regional cooperation and innovation to revive East African economies post-COVID-19. While challenges exist, such as the need for enhanced trust among East African Community member states, Matsaert highlighted opportunities for governments to enhance intra-regional trade and self-sufficiency. Leveraging e-commerce, repurposing local industries for essential goods production, and prioritizing regional supply chains are seen as key strategies to build resilience and support economic recovery in the region. By tapping into these opportunities and fostering cooperation, East African countries can overcome the challenges posed by the pandemic and emerge stronger and more resilient in the post-COVID era.