EAC enterprises to get online trading platform

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The East African Community Secretariat has taken steps to create a digital platform for businesses in the region, particularly Micro, Small and Medium Enterprises (MSMEs).

Over 2,000 micro, small and medium enterprises participate annually in regional trade fairs, aiming to secure markets for their products.

The platform, which has taken the secretariat about five years to develop, resulted from a directive from the Ministers of Trade in the East African Community (EAC), following challenges that hampered trade during the 2020 COVID-19 Pandemic.

During the pandemic, movement of persons was curtailed, hence the need for the development of a tool that would facilitate a similar course within the region.

Deogratius Mbarara, the investment officer at the EAC secretariat, said the platform was developed taking into consideration the needs of the growing number of MSMES who attend regional trade fairs, but afterwards, they do not have a platform to continue with trade.

“So, for us it’s to create a platform and come up with programmes that will assist or facilitate MSMEs to contribute towards that goal,” Mbarara said.

Once implemented, trade in the region, which is mainly informal and stands at 15% according to the EAC secretariat, will increase.

“This number should grow because that is the target that we have been given by the council, because 15% is low. When compared to the EU, trade volumes stand at 67%. Once we can account for the trade that happens within the informal sector, I think we’ll be able to increase trade volumes,” Mbarara explained.

How the platform will work

Charles Omusana, the Principal Economist at the EAC Secretariat, added that the platform will facilitate business-to-business engagements, where traders can buy from each other, but also for customers to have access to products of their choice.

It will also facilitate the business community to engage among themselves now that the State Council of Trade, Industry and Finance has adopted this as a tool.

In terms of maintaining standards, he said that more products will be tested to align with the set standards.

“It is also going to help us test products from the business community. If your products begin to trade within the region, that means they are coming from a position where the quality is improving,” Omusana stated.

Matia Etedu, the Regional Integration officer at the Ministry of East Africa and Community Affairs (MEACA), said through the platform, they seek to complement other initiatives geared towards reducing the cost of doing business across borders.

“This EAC Buyer Seller Platform aims to replicate and scale up this by giving our MSMEs a region-wide digital showroom, enabling business linkages, and promoting regional branding,” Etedu noted.