Kenya and Ethiopia Ink Landmark Border Trade Deal

NAIROBI, Kenya, Dec 22- The Kenya Export Promotion and Branding Agency (KEPROBA) has signed Border Trade Agreement between the Republic of Kenya and the Federal Democratic Republic of Ethiopia, facilitated through Kenya’s Ministry of Investments, Trade and Industry and Ethiopia’s Ministry of Trade and Regional Integration.

The agreement was signed by Kenya’s Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui and his Ethiopian counterpart and host, H.E. Kassahun Gofe Baleni.

It aims to boost cross-border trade between the two countries and is anchored within the framework of the Special Status Agreement signed in November 2012, which entered into force in 2014.

Implementation of the agreement is expected to significantly enhance Kenya’s exports to Ethiopia through the formalization of small-scale cross-border trade.

Key benefits include simplified trade processes, including streamlined licensing regimes that will reduce turnaround time for small-scale traders at the border.

Additionally, the agreement provides exemptions for eligible goods originating from either country, in line with the COMESA Rules of Origin, from the requirement for Certificates of Origin and goods including camels, sheep, goats and fish products, as well as milk and milk products, among others.

Eligible goods will be subject to the preferential treatment offered by the two countries under the COMESA framework.

Further, the agreement empowers cross-border traders, restores the dignity of small-scale traders by elevating them to the same standards as traders in Nairobi and Addis Ababa and supports joint infrastructure development at the shared border, including the establishment of trade centres.

It establishes a Joint Border Trade Committee (JBTC) to collaboratively address emerging challenges and identify new opportunities for the mutual benefit of the citizens of both countries.

The agreement further optimizes the exploitation of trade opportunities available under the African Continental Free Trade Area (AfCFTA) and the Tripartite Free Trade Area (TFTA) frameworks.

“Kenyan exporters, particularly those operating along the Kenya–Ethiopia border, are strongly encouraged to seize this opportunity to expand their export activities”.