Ethiopia Deems Joining East African Community Infeasible

Ethiopian trade officials have ruled out the possibility of joining the East African Community (EAC), saying that accession to the eight-member intergovernmental bloc is infeasible and rushing the process could wind up harming the economy.

Officials at the Ministry of Trade and Regional Integration state they are instead focusing on launching the belated African Continental Free Trade Area (AfCFTA) before the upcoming Ethiopian New Year.

Samuel Gizaw, coordinator of AfCFTA implementation at the Ministry, explained that the decision is based on Ethiopia’s lack of preparation and the advanced integration already achieved by EAC member states.

“Ethiopia has neither conducted the necessary research nor undertaken the required preparations to join the EAC,” said Gizaw. “Significant studies and groundwork are needed before accession can be considered. Moreover, EAC member states have already implemented duty-free movement for labor and goods and have reached the level of a customs union. Given this, it is not feasible for Ethiopia to join at this stage.”

Gizaw also pointed out that Ethiopia’s annual trade with international and African partners stands at approximately 17 billion US Dollars. Joining the EAC would require Ethiopia to align its trade policies and potentially share revenue mechanisms with member states, which could have economic drawbacks in the short term.

– Advertisement –

“Joining the EAC now could harm Ethiopia’s economy,” he noted. “Extensive analysis and preparations will be necessary before such a step can be taken.”

Gizaw says the timeline for joining the EAC will depend on Ethiopia’s economic development and regional integration capacity.

“At present, our focus is on launching the African Free Trade Area,” he said.

Although Ethiopia has not yet formally applied to join the EAC, there has been interest from the local business community.

Gizaw mentioned that the Ethiopian government may consider the option in the future, depending on both economic and political developments.

According to the coordinator, Ethiopia is currently finalizing preparations to implement the AfCFTA, which is expected to be launched before the Ethiopian New Year.

The East African Community was established in 1967 and is headquartered in Arusha, Tanzania.

It currently comprises eight member states: Burundi, Kenya, Rwanda, Uganda, Tanzania, the Democratic Republic of the Congo, South Sudan, and Somalia.

The EAC has previously invited Ethiopia to join, citing its large population, economic potential and strategic importance.

Member states of the EAC are working toward establishing a common currency to facilitate visa-free and duty-free movement of citizens and goods within the region.