The East African Community (EAC) has recorded a remarkable 28.4 per cent increase in international merchandise trade, reaching $38.2b (Shs129 trillion) in the second quarter of 2025.
This impressive growth is attributed to a surge in exports, which rose by 40.5 percent to $18.6bn (shs69.9 trillion), driven by rising global demand for EAC products.
The EAC’s trade performance reflects the region’s growing competitiveness and resilience in global markets, according to the latest EAC Quarterly Statistics Bulletin.
Imports grew by 18.8 percent to $19.6bn (Shs6.6 trillion) resulting in a narrowed trade deficit of $0.9bn (Shs3 trillion), down from $3.2bn (Shs10 trillion) in the same quarter of 2024.
The EAC’s trade with other African countries expanded by 42.9 per cent to $9.3bn (Shs31 6 trillion) accounting for 24.5 percent of total trade.
Intra-EAC trade also grew by 24.5 percent to to $4.6bn (shs15.6 trillion), representing 12.1 per cent of total trade. The top export commodities for the EAC were copper, precious stones and metals, coffee and tea, mineral fuels, and ores, accounting for 79.6 per cent of total exports.
China remained the leading source of imports, contributing $4.7bn (shs15.9 trillion) or 24.2 per cent of the total.
The EAC’s trade performance was also influenced by strong demand from other countries, with exports to China, the United Arab Emirates, South Africa, Hong Kong, and Singapore accounting for 62.8 per cent of total exports, up from 40.1 per cent a year earlier.
The narrowing trade deficit is a positive development for the EAC region, with the trade deficit narrowing significantly from $3.2bn (Shs10.8 trillion) to $0.9 bin (Shs3 trillion).
“The EAC Secretariat remains committed to fostering a conducive environment for trade and investment, enhancing value addition, and promoting shared prosperity across partner states,” the bulletin noted.
The EAC region faces inflationary concerns, however, with the Annual Headline Inflation standing at 22.7 percent in June 2025, up from 13.7 percent a year earlier. The increase is attributed to rises in South Sudan and Burundi, which recorded inflation rates of 179.4 per cent and 34.1 per cent respectively.
In terms of monetary developments, short-term interest rates increased across most EAC Partner States in Q2 2025, except in Kenya. The EAC money supply (M3) grew by 19.1 percenr year-on-year in Q2 2025, driven mainly by a 19.2 percent rise in credit to the private sector.
The region’s trade growth is expected to continue in the coming quarters, driven by the region’s strategic location, abundant natural resources, and growing consumer market.
However, the region must address the challenges of inflation, infrastructure deficits, and non-tariff barriers to ensure sustainable and inclusive growth.
Overall, the EAC’s trade performance in Q2 2025 is a positive development for the region, with the growth in exports, narrowing trade deficit, and expanding intra-African trade pointing to a positive trajectory for integration and sustainable growth.
“With the right policies and investments, the EAC can unlock its full potential and achieve its development goals,” the bulletin added.