Effect of African Continental Free Trade Area (AfCFTA) on Trade Facilitation in East African Community Member Countries: A Study in Kenya

Abstract

The aim of this paper is to assess the effect of African continental free trade Area on trade facilitation in East Africa. The continental free trade area was established in an effort by the member countries to stir economic growth and development through facilitation of cross-border trade. The agreement was expected to commence in 2021, but most countries are yet to implement it effectively. This study seeks to establish the effect of member countries' commitment, easing of trade barriers and integration of information technology on trade facilitation in East African Community. The study utilized a descriptive research design and targeted trade officials from the 8 East African Community member countries and established traders.  Through use of a structure questionnaire, the study collected primary data which was analysed using descriptive statistics. The findings revealed that the commitment of the member countries was essential in promoting trade facilitation in East African Community. Moreover, it was established that through easing of trade barriers, the member countries traded more. The findings further revealed that the integration of digital technology stirred the facilitation of trade within the member countries. It was concluded that the commitment of member countries and easing of trade barriers were not effectively embraced despite being integral in promoting trade facilitation. The integration of ICT was also not effectively upheld, despite this being emphasized on by the African Continental Free Trade Area. The study recommends the need for the member countries in East African Community to focus on key strategies that ensure implementation of the trade agreements for continued trade facilitation within the member countries.