Kenya and Ethiopia have taken a significant step towards enhancing regional integration by signing a Memorandum of Understanding (MoU) aimed at fast-tracking the implementation of the African Continental Free Trade Area (AfCFTA). The agreement, signed during a bilateral meeting in Mombasa, seeks to establish a simplified trade regime that will benefit communities living along the shared border, particularly in Moyale.
The agreement was signed by senior government officials from both countries. Kenya’s Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, emphasized the importance of easing trade barriers to promote economic growth and cooperation. “We are looking for ways in which Kenya and Ethiopia can implement free trade so that goods produced in either country can move freely, and people can work and travel with ease,” said Kinyanjui.
Kinyanjui acknowledged the persistent trade challenges faced by border communities and said the agreement would allow them to engage in cross-border trade more effectively. He urged Kenyans to take advantage of improved infrastructure and invest in trade opportunities within the region.
Ethiopia’s Minister of Trade and Regional Integration, Kassahun Gofe, highlighted that the agreement concludes two years of intense negotiations. He noted the importance of accelerating trade between the border communities, outlining key issues resolved in the MoU. These include defining the border trading zonesn50 kilometers from the border in Ethiopia and 100 kilometers in Kenya as well as setting a $1,000 value threshold for goods, with a trading frequency of four times per month.
Gofe confirmed that both nations had agreed on a common list of tradable products and called on technical committees to finalize the implementation framework. “We have finally signed the agreement after two years of serious negotiations. The focus now is on implementing and starting the actual trade,” he stated.
This agreement, part of the third bilateral meeting between the two nations, signals a new chapter in Kenya-Ethiopia relations and marks a critical milestone in actualizing the goals of the AfCFTA across the Horn of Africa.
