Economic integration and trade performance: assessing the effectiveness of the East African Community as a trade bloc
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Date
2025-06-13
Journal Title
Journal ISSN
Volume Title
Publisher
Taylor & Francis group
Abstract
This study examines the effectiveness of the East African Community (EAC) as a regional trade bloc by analyzing comprehensive trade data from 2009 to 2023. The research employs longitudinal analysis to assess trade patterns, infrastructure challenges and economic integration outcomes. Results reveal that Kenya dominates intra-regional exports, with trade volumes reaching $1.8 billion in 2022, primarily driven by exports to Uganda ($896 million) and Tanzania ($488 million). However, intra-EAC trade represents only 15–20% of member states’ total trade volumes, compared to the European Union (EU)’s 60–70% internal trade ratio. The study identifies significant infrastructure gaps, with only 36% of regional roads paved and transportation costs averaging $0.17–$0.25 per ton-kilometer nearly triple the $0.06–$0.09 observed in developed regions. External trade analysis shows China’s growing influence, with bilateral trade volumes increasing by 500–800% over the study period, reaching $8.2 billion with Kenya alone in 2022. The research also documents 100+ active non-tariff barriers (NTBs) and substantial power infrastructure deficiencies, with electricity access ranging from 75% in Kenya to below 40% in Burundi. These findings indicate that while the EAC has established foundational integration mechanisms, significant structural and policy reforms are needed to achieve deeper regional economic integration and more equitable distribution of trade benefits among member states.