COMMENT | JANE NALUNGA | In an increasingly uncertain global economy marked by geopolitical rivalry, fragile supply chains, climate shocks and shifting trade alliances, regional integration is no longer simply an aspirational development agenda; it has become a strategic necessity. For East Africa, the East African Community (EAC) represents one of the most important policy instruments for economic resilience, competitiveness, collective bargaining power and sustainable development.
Deliberations at the recent EAC Heads of State Summit once again brought this reality into focus. The summit reaffirmed the bloc’s commitment to deepening integration, strengthening institutions and expanding the community’s economic potential. At the same time, it highlighted a fundamental challenge: how to sustain and finance deeper regional integration at a moment when the Community itself is expanding both geographically and institutionally.
Over the past two decades, the EAC has made measurable progress. The establishment of the Customs Union in 2005 and the Common Market in 2010 laid the foundation for deeper economic cooperation among partner states. Intra-regional trade has grown steadily, currently estimated at approximately $4–5 billion annually. With a population exceeding 300 million people and a combined gross domestic product of more than $300 billion, the EAC now represents one of Africa’s most dynamic regional markets.
Recent expansion has further elevated the community’s strategic significance. The accession of the Democratic Republic of the Congo in 2022 and the admission of Somalia in 2023 following the earlier entry of South Sudan, has expanded the EAC’s geographic reach from the Indian Ocean deep into Central Africa. This expansion opens new opportunities for trade, investment, infrastructure connectivity and the development of regional value chains.
Yet enlargement also raises an important question: can the region’s institutions keep pace with the ambitious expansion and its attendant implications?
The institutional architecture of the East African Community, anchored by the East African Court of Justice, the East African Legislative Assembly, and the East African Community Secretariat, plays a critical role in enforcing community law, coordinating regional policies, and ensuring that decisions taken by Heads of State translate into concrete outcomes. However, as the community expands and policy coordination becomes increasingly complex, these institutions face growing responsibilities without a commensurate increase in financial and technical capacity. For regional integration to be meaningful and effective, these bodies must be adequately resourced, professionally staffed, and institutionally strengthened, with the credibility, independence, and operational autonomy necessary to function beyond short-term political cycles and uphold the integrity of the regional integration agenda.
Financing remains one of the most pressing structural challenges confronting regional integration. Many regional institutions across Africa, including those within the EAC, continue to rely heavily on inconsistent national contributions and development partner support. This financing model undermines predictability and limits long-term planning. If the EAC is to deliver on its commitments from infrastructure development to policy harmonisation and market integration, it must explore more sustainable financing mechanisms. Strengthening compliance with member-state contributions, considering regional integration levies linked to trade flows and expanding innovative financing instruments could help provide a more stable resource base for regional programmes. Lessons can also be drawn from experiences elsewhere on the continent. Regional economic communities such as the Economic Community of West African States (ECOWAS) have implemented community levies that generate predictable funding for regional institutions and programmes.
Another persistent structural challenge that continues to undermine integration efforts across the continent is the issue of overlapping or multiple memberships. Several EAC partner states simultaneously belong to other regional blocs such as COMESA or the Southern African Development Community (SADC). While such arrangements often reflect historical economic ties and diplomatic considerations, they also create policy contradictions, competing trade obligations and institutional fragmentation.
Multiple memberships complicate tariff regimes, delay the implementation of common external tariffs and weaken the coherence of regional trade policies. They also stretch already limited administrative capacities within member states, making it difficult to fully implement commitments under any single regional framework. As the EAC moves toward deeper integration, including ambitions for a monetary union and ultimately a political federation, greater policy coherence and clearer prioritisation of regional commitments will become increasingly important.
Equally important is the need to strengthen the implementation of existing policy frameworks. The agreed Common External Tariff (CET) structure remains a cornerstone of the Customs Union, yet its effectiveness depends on consistent application across partner states. Greater policy harmonisation, stronger enforcement mechanisms and improved coordination among national institutions will be necessary to ensure that regional trade policies deliver the intended benefits for businesses and citizens across the Community.
Beyond institutional reforms and financing arrangements, the next phase of integration must also focus on building competitive regional value chains. East Africa continues to export large volumes of unprocessed commodities while importing higher-value manufactured goods, a structural imbalance that limits industrial development and job creation. At the same time, a significant share of manufactured products produced within the region is already traded within the EAC market, highlighting the importance of regional demand in supporting industrial growth.
By coordinating industrial policies and investing in cross-border infrastructure such as transport corridors, energy systems and digital connectivity, the EAC can foster regional production networks that add value to the region’s abundant natural and agricultural resources. Sectors such as agro-processing, pharmaceuticals, textiles and critical minerals present significant opportunities for regional industrialisation. This also act as a launching pad for the EAC’s effective engagement in the AfCFTA.
Ultimately, the success of the EAC will depend on sustained political commitment from its member states. Regional integration is not achieved through declarations alone; it requires consistent implementation of agreed policies, respect for community rules and the willingness of governments to align national interests with regional objectives.
The EAC stands at a pivotal moment. With its expanding membership, growing population and strategic geographic position, the community has the potential to emerge as one of Africa’s most dynamic economic regions. Realising this potential, however, will require stronger institutions, predictable financing mechanisms and a renewed commitment to collective action.
In an era of global economic volatility, deeper regional integration offers East Africa a pathway toward resilience, industrial transformation and shared prosperity. The challenge now is ensuring that the institutions, policies and political will underpinning the EAC evolve at the same pace as the region’s ambitions.
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Jane Nalunga is the Executive Director of the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI)
