TradeMark Africa: Ratification of tripartite agreement will boost pan-African trade

East African nations are on the brink of a transformative period for trade, as the ratification of a tripartite agreement between the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the Southern African Development Community (SADC) promises to unlock over $1.7 billion in export potential. According to a study by TradeMark Africa, countries like Kenya, Tanzania, and the Democratic Republic of Congo (DRC) are expected to benefit significantly from increased cross-border trade once the agreement is fully implemented. In a recent interview with CNBC Africa, Allen Asiimwe, Deputy CEO of Trademark Africa, shed light on the implications of this landmark agreement. Asiimwe explained how the harmonization of trade standards, removal of barriers, and streamlining of processes will create new opportunities for trade in the region. With 15 countries already ratifying the agreement and more expected to follow suit, the momentum for enhanced trade facilitation is gaining traction. The agreement aims to create a more integrated block encompassing 29 African countries, boosting intra-African trade and fostering economic growth across the region. One of the key points highlighted by Asiimwe is the significance of aligning trade regulations and protocols within regional economic communities. By standardizing customs procedures, tariff frameworks, and rules of origin, countries can ensure transparent and competitive trade practices. The implementation of common external tariffs and simplified trade regimes within regional blocks like the EAC has already laid the groundwork for seamless intra-regional trade. The tripartite agreement seeks to expand on these initiatives, facilitating smoother trade flows and promoting economic cooperation on a broader scale. Moreover, Asiimwe emphasized the role of digital trade and investment protocols in modernizing African trade practices. With the launch of crucial frameworks such as the protocol on women and youth trading in Africa and the protocol on digital trade by the African Continental Free Trade Area Secretariat, the continent is paving the way for innovative trade opportunities. The agreement opens doors for digital giants like Amazon to tap into Africa's vast market potential, driving digital connectivity and commerce within the region. In terms of economic impact, Asiimwe pointed out that the ratification of the tripartite agreement is poised to significantly boost intra-African trade volumes and enhance regional economies. While current intra-Africa trade stands at around 17 percent, there is immense potential for growth with the implementation of the agreement. Asiimwe highlighted the TradeMark Africa study, which projects over $1.7 billion in export opportunities for East African countries in the coming years. Kenya, Tanzania, and the DRC are expected to lead the pack in capitalizing on these new trade channels, with Kenya alone projected to gain over $600 million in new export markets. Looking ahead, Asiimwe underscored the importance of strong political will and commitment from African leaders to drive the success of the tripartite agreement. He cited examples from East Africa, where collaborative initiatives like the Coalition of the Willing led to groundbreaking agreements on tourism visas and national ID-based travel. By fostering trust, transparency, and cooperation among member states, the region can overcome logistical challenges, non-tariff barriers, and other impediments to trade. Asiimwe expressed optimism that with sustained effort and cooperation, the momentum towards enhanced intra-African trade will continue to grow, creating new opportunities for economic development and job creation across the continent. As African nations set their sights on a more integrated and interconnected trade landscape, the ratification of the tripartite agreement emerges as a pivotal step towards realizing the full potential of pan-African trade. By harmonizing standards, removing barriers, and fostering collaboration, the agreement is poised to unleash a wave of economic opportunities that could transform the fortunes of East African economies and beyond.