Inside the hidden border costs that keep Kenya-EAC trade expensive – World Bank report
Kenya and its East African Community (EAC) neighbours could unlock cheaper and more competitive regional trade by tackling the hidden costs of moving goods across borders, with customs delays, fragmented logistics and differing regulations accounting for a large share of Africa’s trade costs, the World Bank says. About 60 per cent of Africa’s trade costs […]
Kenya and its East African Community (EAC) neighbours stand to benefit from cheaper and more competitive regional trade by addressing hidden costs associated with border crossings, according to a World Bank report. These costs stem from factors such as customs delays, fragmented logistics, differing regulations, and inadequate infrastructure, accounting for approximately 60% of Africa's trade expenses, as stated in the report Integrating Africa: From Threads to Hubs.
The focus of trade policy should shift from tariffs to systems that determine how swiftly and predictably goods move once they cross borders. For Kenyan businesses exporting to Uganda and other EAC markets, these costs impact transport times, inventory requirements, and supply chain reliability, particularly for food, construction materials, and manufactured products.
The report categorizes Africa's borders as "economic choke points," but reducing these costs can be achieved through streamlined customs, mutual recognition of standards, and interoperable border systems. The World Bank emphasizes that reducing regional trade frictions necessitates harmonized rules, shared digital platforms, streamlined documentation, and mutual recognition of procedures.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
