NAIROBI, KENYA — Kenya and Ethiopia have reached a bilateral agreement to collaborate on the implementation of the African Continental Free Trade Area (AfCFTA), signaling a commitment to enhanced economic integration.
Represented by senior government officials, the two nations formalized their commitment by signing a Memorandum of Understanding (MoU) in Mombasa. This agreement aims to expedite the implementation of the AfCFTA between Kenya and Ethiopia through a simplified trade regime.
Speaking in Mombasa, Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui emphasized the government’s intention to accelerate trade at the border, addressing persistent challenges faced by border communities in areas such as Moyale, Kenya.
Kinyanjui highlighted the significant challenges that necessitated the agreement, expressing hope that it would enable communities residing along the border to engage in trade more freely.
“We are emphasizing that within the bigger scope of things Kenya and Ethiopia will be looking for ways in which we can implement free trade so that goods produced here or Ethiopia can come and people can work anywhere in the two countries not forgetting tourism in Mombasa and many other things that will boost our economy,” he stated.
The CS assured the public of the government’s ongoing engagement with neighboring countries to foster a conducive trading environment. He noted the complementary nature of the two economies, with Ethiopia possessing critical goods needed by Kenya and Kenya offering finished industrial products valuable to Ethiopia, underscoring the mutual benefit of the partnership.
Kinyanjui further encouraged investment to capitalize on the opportunities presented by the newly signed agreement. He affirmed the government’s investment in infrastructure to facilitate trade, urging Kenyans to leverage these advancements to trade with neighboring countries.
Minister of Trade and Regional Integration of the Federal Democratic Republic of Ethiopia Kassahun Gofe stressed the importance of finalizing negotiations to initiate the simplified trade regime, thereby accelerating trade between the border communities of the two nations.
Gofe, representing the Ethiopian government, indicated that the meeting addressed two key outstanding issues: the parameters of border trade, including trading thresholds and travel frequencies, and a common list of products for exchange.
He elaborated that the parties agreed on a border trade zone extending 50 kilometers from the common border on the Ethiopian side and 100 kilometers on the Kenyan side. Furthermore, a value threshold of 1000 US dollars was agreed upon, with a trading frequency of four times per month, along with a defined list of common products.
“Details of the deliberations are continued in the matrix of agreed minutes, and both parties have agreed to collaborate on the implementation of the Africa Continental Free Trade Area,” he affirmed.
Gofe urged the technical committees from both countries to finalize the agreement, acknowledging the concerted efforts made by both parties in reaching a consensus.
“We have finally signed the agreement after two years of serious negotiations, thus the main issue will be implementing and starting trade of what was agreed,” Gofe concluded.
The deliberations culminated in a joint communiqué from the 3rd bilateral meeting between Kenya and the Federal Democratic Republic of Ethiopia on the simplified trade regime, held in Mombasa, Kenya.
The Ethiopian delegation committed to initiating and exchanging the draft instrument necessary for the agreement’s implementation.
