Kenya and Ethiopia have entered into a bilateral agreement to collaborate on implementing the African Continental Free Trade Area (AfCFTA).
Senior government officials from both countries signed a Memorandum of Understanding (MoU) to fast-track a simplified trade regime between Kenya and Ethiopia.
Speaking in Mombasa, Cabinet Secretary for Investments, Trade, and Industry Lee Kinyanjui said the government aims to streamline trade at the Moyale border, addressing longstanding challenges faced by local communities.
Kinyanjui noted that the agreement seeks to ensure that border communities can trade freely. “We are emphasizing that, within the bigger scope of things, Kenya and Ethiopia will look for ways to implement free trade. This will allow goods from either country to move easily and enable people to work freely across borders. Tourism in Mombasa and other sectors will also benefit,” he said.
He reassured the public that the government would continue engaging neighboring countries to create a favorable trade environment. He also emphasized Ethiopia’s supply of essential goods to Kenya and Kenya’s finished industrial products that are beneficial to Ethiopia, calling the partnership mutually beneficial.
Kinyanjui encouraged local investment, highlighting government investment in infrastructure to support cross-border trade.
Kassahun Gofe, Ethiopia’s Minister of Trade and Regional Integration, stressed the importance of finalizing negotiations to implement the simplified trade regime, which aims to boost trade among border communities.
Gofe said the meeting addressed key issues including border trade zones, trade value thresholds, travel frequency, and a common list of products. The agreement sets the Ethiopian border trade area at 50 kilometers from the shared border and Kenya’s at 100 kilometers.
The value threshold for trade was set at $1,000, with a frequency of four trips per month. Both countries also agreed on a common product list.
“Details of the deliberations are contained in the agreed minutes matrix. Both parties have committed to collaborating on the implementation of the African Continental Free Trade Area,” Gofe stated.
He urged technical committees from both countries to finalize the agreement, acknowledging the significant efforts made over two years of negotiation.
The agreement follows the joint communiqué from the 3rd bilateral meeting between Kenya and the Federal Democratic Republic of Ethiopia on the simplified trade regime, held in Mombasa. Ethiopia also agreed to initiate and exchange the draft instrument for the agreement.
– By Chari Suche
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