EAC trade revenues hit Sh4.9 trillion as regional commerce accelerates

EAC trade revenues hit Sh4.9 trillion as regional commerce accelerates

Partnerships with the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) contributed nearly a quarter of the bloc's trade portfolio during the period.

The East African Community (EAC) recorded a strong growth in international trade in the second quarter of 2025, driven by soaring exports and growing commerce within Africa.

The EAC's latest Quarterly Statistics Bulletin shows total merchandise trade reached $38.2 billion (Sh4.9 trillion) in the period, up from $29.7 billion (Sh3.8 trillion) in Q2 2024, translating to a 28.4 per cent increase.

"This was largely driven by a strong rebound in exports, which surged by 40.5 per cent to $18.6 billion (Sh2.4 trillion), up from $13.2 billion (Sh1.7 trillion) a year earlier," the bulletin reads.

"Imports ticked up, increasing by 18.8 per cent, from $16.5 billion (Sh2.13 trillion) to $19.6 billion (Sh2.5 trillion), narrowing the region's trade deficit from $3.2 billion (Sh412 billion) to $0.9 billion (Sh116 billion)."

According to the bulletin, the performance reflects both improved production capacity in the region and stronger demand for high-value goods such as copper, precious stones, coffee, tea, mineral fuels and ores, which together accounted for nearly 80 per cent of total exports.

Similarly, it noted that commerce with other African countries increased by 42.9 per cent to $4.6 billion (Sh594.6 billion) in the period, highlighting stronger economic ties among member states.

Partnerships with the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) contributed nearly a quarter of the bloc's trade portfolio during the period.

"Trade with African countries expanded substantially, rising from $6.5 billion (Sh838 billion) in Q2 2024 to $9.3 billion (Sh1.2 trillion) in Q2 2025, equivalent to 42.9 per cent of total trade," said EAC.

"Trade with COMESA and SADC remained important, with their shares averaging 9.9 per cent and 15.2 per cent respectively in 2025 Q2."

Additionally, China, the United Arab Emirates, South Africa, Hong Kong and Singapore remained the largest destinations for EAC exports, together accounting for almost two-thirds of shipments.

"China, the UAE, South Africa, Hong Kong, and Singapore together absorbed 62.8 per cent of the total exports from EAC, compared with 40.1 per cent in the same period of 2024, reflecting increased concentration in a few destinations," EAC noted.

"Among these destinations, Malaysia and South Africa recorded the highest trade flows, reaching six and 2 times on a Q-to-Q basis."

On the import side, China remained the leading source of goods at $4.7 billion (Sh607.5 billion), followed by the UAE, India, South Africa and Japan.

Major imports included petroleum products, machinery, vehicles, precious metals, plastics, iron and steel, reflecting ongoing investments in infrastructure, energy and industrial development across the region.

Despite the region's strong trade performance, the bulletin notes that the cost of living remains high in the region. Overall prices, measured by headline inflation, were up 22.7 per cent in June 2025, slightly lower than May's 24 per cent but still much higher than a year ago.

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