Ethiopia rules out EAC bid, roots for continental free trade » Capital News

NAIROBI, Kenya, Jul 22 — Ethiopia has ruled out joining the East African Community (EAC) in the near future, saying its immediate focus is on implementing the long-delayed African Continental Free Trade Area (AfCFTA) agreement.

According to The Reporter Ethiopia, a local news publication, senior officials at the Ministry of Trade and Regional Integration said the country is not prepared for EAC accession and warned of possible economic disruption if it rushed the process.

“Ethiopia has neither conducted the necessary research nor undertaken the required preparations to join the EAC,” said Samuel Gizaw, coordinator of AfCFTA implementation at the ministry.

“Significant studies and groundwork are needed before accession can be considered.”

Gizaw said the government intends to operationalize AfCFTA before the Ethiopian New Year in September, describing the deal as Ethiopia’s immediate trade priority.

He explained that EAC Member States have already attained advanced levels of integration, including duty-free movement of goods and labor and a functioning customs union, which would require Ethiopia to undertake substantial reforms to align.

“Given this, it is not feasible for Ethiopia to join at this stage,” he stated.

Realignment strain

Gizaw also noted that joining the EAC would demand harmonization of trade policies and revenue-sharing frameworks—changes that could strain Ethiopia’s economic structure if implemented prematurely.

“Joining the EAC now could harm Ethiopia’s economy,” he warned. “Extensive analysis and preparations will be necessary before such a step can be taken.”

While Ethiopia has not formally applied for EAC membership, there has been growing interest from sections of the business community. Still, the government appears cautious.

“At present, our focus is on launching the African Free Trade Area,” Gizaw told The Reporter Ethiopia. “The timeline for joining the EAC will depend on Ethiopia’s economic development and regional integration capacity.”

Despite the current position, he noted that the government may reconsider EAC accession in the future, depending on evolving economic and political dynamics.

The EAC, headquartered in Arusha, Tanzania, was established in 1967 by three founding State –Kenya, Uganda Tanzania — but currently includes Burundi, Rwanda, Uganda, South Sudan, the Democratic Republic of the Congo, and Somalia.

In April 2024, Kenya’s then Cabinet Secretary for EAC, Arid and Semi-Arid Lands and Regional Development, Peninah Malonza, had claimed that Ethiopia was poised to become the EAC’s ninth member, stating that talks with EAC Heads of State were in the final stages at the time.