Arusha. In response to declining foreign aid and shifting trade policies from major global economies, the leadership of the East African Community (EAC) has unveiled a strategic roadmap aimed at strengthening regional economic self-reliance and promoting sustainable development.
The plan highlights key measures such as trade policy reforms, diversification of commercial activities, promotion of intra-EAC trade, and the pursuit of bilateral agreements with key international partners.
These initiatives were outlined by Chairperson of the East African Business Council (EABC), Mr John Lual Akol who presented the Council’s 2026 agenda to boost implementation and sustain economic growth despite dwindling aid flows and changing global trade dynamics.
Our commitment to fostering a conducive business environment in East Africa to support sustainable economic growth will face heightened challenges this year due to reductions in foreign aid and protectionist policies by major economies,” Akol said.
“However, EABC remains committed to viewing these challenges as opportunities for member states in 2026.”
Reducing aid dependency
The Council’s top priority is to reduce the EAC’s reliance on foreign aid while transforming industrial and service sectors. This includes promoting self-reliant agriculture, formalising informal employment, boosting trade, and developing production aimed at competitive regional industries.
Akol said reforming trade policies is the second key priority. This involves expanding trade varieties, boosting intra-EAC commerce, strengthening trade ties with other African countries, and negotiating bilateral agreements with major international stakeholders.
He said that the persistent failure to implement commitments within key EAC integration frameworks, such as the Customs Union, Common Market, and Monetary Union, remains a major challenge.
“Although the EAC has grown from three to eight member states, integration has yet to deliver full economic unity due to internal tariffs, the Common External Tariff (CET), and barriers to the free movement of services, capital, people, and labour. Interactions between member states and third-party trading partners continue to challenge regional trade policies and the stability of the Customs Union.”
Private sector as engine of growth
The EABC also plans to set policy priorities that ensure the private sector becomes a meaningful driver of EAC integration, particularly in trade and investment.
For the EAC private sector to be the true engine of growth, it must become a larger and more active contributor to wealth creation, government revenue, employment, foreign exchange, and poverty reduction across the region. Achieving this requires member states to create business-friendly environments,” Akol said.
He called on member states to honour commitments under the Customs Union, Common Market, and Monetary Union, as well as other regional agreements.
“I urge our members, national business associations, and industry leaders to unite behind this agenda and strengthen public-private dialogues to remove barriers limiting regional competitiveness,” he said.
Financial strains amid reduced Aid
The Council’s 2026 agenda comes as many donor countries scale back aid to African nations. This reduction has contributed to delays in financial obligations among some EAC members, causing operational disruptions across the region, including suspensions of East African Legislative Assembly (EALA) sessions and proceedings at the EAC Court of Justice (EACJ).
The financial strain is largely due to delayed or non-payment of contributions by certain member states. Each of the eight member states is expected to contribute $7 million annually towards the Community’s operational budget.
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