EU invests €8m in new projects to strengthen EAC economic integration

Arusha. The European Union (EU) and the East African Community (EAC) have launched three significant projects designed to boost regional integration, promote trade, and encourage inclusive economic growth throughout the bloc.

The newly launched two-year initiatives, revealed in Arusha on Thursday, February 6, 2025, will support the EAC’s efforts to liberalise services, enforce competition policies, and strengthen institutional capacity, with a particular emphasis on empowering women and youth.

With a total contribution of €8 million (about Sh21 billion), these projects will play a vital role in advancing economic integration and facilitate smoother cross-border trade among EAC member states.

Speaking during the launch, the EU Ambassador to Tanzania and the EAC, Ms Christine Grau mentioned the first project as ‘Leveraging Integration Frameworks for Trade in Services and Civil Society Organizations’ (LIFTED).

This initiative is designed to remove barriers to trade in services by streamlining tourism regulations and advancing the mutual recognition of academic and professional qualifications across the region.

It aims to create a cohesive regulatory environment that simplifies cross-border service exchanges.

She stressed the significance of LIFTED in enhancing civil society involvement in the economic integration process.

The project supports inclusive economic development by ensuring active participation from women and youth in shaping the region’s future.

“The EU has a long-standing and valued partnership with the EAC, rooted in shared objectives of economic integration and sustainable growth,” said the envoy.

“These projects reinforce our commitment to this collaboration and will help create a more competitive, inclusive, and resilient regional economy,” she added.

Outlining the second project aimed at strengthening the EAC Competition Authority (EACCA), she noted that the initiative seeks to improve the enforcement of competition laws, harmonise regulations, and build institutional capacity.

By enhancing the technical skills of EAC judges, EACCA commissioners, and key stakeholders, she said the project will foster a fair, competitive business environment, benefiting businesses and consumers alike through better services and lower costs.

The third project focuses on EU-EAC technical assistance by strengthening the institutional capacity of EAC organs and institutions, enabling them to manage development projects effectively and improve public finance governance.

“This project will align EAC institutions with international best practices, ensuring efficient management of resources and development programs. With increased technical expertise, the EAC will be better positioned to drive sustainable development across its member states,” said Ambassador Grau.

The EAC deputy secretary general for Customs, Trade, and Monetary Affairs, Ms Annette Mutaawe, expressed deep appreciation for the EU’s ongoing support, commending the EU for expanding its assistance to various EAC organs, particularly the EAC Competition Authority.

“This expanded support will enhance the Authority’s capacity to fulfil its mandate, promote fair competition, and ultimately offer consumers greater choice and lower costs,” she said on behalf of the EAC secretary general.

Ms Mutaawe also provided insights into the EAC’s ongoing development projects, including the formulation of the 7th EAC Development Strategy.

This strategy will focus on regional infrastructure development, boosting agricultural productivity, fostering industrialisation, sustainable natural resource management, and promoting peace and security across the region.

“The strategy is expected to serve as a roadmap for the next phase of growth and development within the EAC,” she added.

Furthermore, Ms Mutaawe highlighted the upcoming Development Partners Forum, which will serve as a platform to strengthen cooperation and better align resources to support regional integration initiatives and enhance resource utilisation.

The three new projects are aligned with the EU’s broader strategy of supporting regional integration through the African Continental Free Trade Area (AfCFTA) and the team Europe initiative.

They further the shared vision of the EU and EAC for a more integrated, prosperous, and resilient East African region.