By Business Insider Reporter
The East African Community (EAC) has recorded a remarkable rebound in trade, reflecting renewed economic vitality and improved regional integration. According to the latest EAC Quarterly Statistics Bulletin, total international merchandise trade soared by 28.4 percent to US$ 38.2 billion in the second quarter of 2025, up from US$ 29.7 billion in the same period last year.
Driving this impressive performance was a 40.5 percent surge in exports to US$ 18.6 billion, underscoring strong global demand for East African products. Imports rose by a more modest 18.8 percent to US$ 19.6 billion, leading to a significant narrowing of the region’s trade deficit – from US$ 3.2 billion in 2024 to US$ 0.9 billion this year.
Regional and global trade expansion
Trade within Africa saw substantial growth, with intra-African trade volumes expanding by 42.9% to USD 9.3 billion, now representing nearly a quarter of total EAC trade. Intra-EAC trade also rose 24.5 percent to US$ 4.6 billion, signalling deepening integration among Partner States.
The bloc continued to strengthen commercial ties with COMESA and SADC, which contributed 9.9 percent and 15.2 percent, respectively, to the region’s trade portfolio.
Key export markets included China, the United Arab Emirates, South Africa, Hong Kong, and Singapore, which together absorbed more than 62 percent of total exports – up sharply from 40 percent a year earlier. Malaysia and South Africa were the fastest-growing destinations.
The region’s top export commodities remained copper, precious stones and metals, coffee and tea, mineral fuels, and ores – together accounting for nearly 80% of export earnings, compared to 77 percent in 2024. Analysts note this trend highlights the EAC’s increasing specialisation in high-value goods, particularly in mining and agricultural exports.
Imports and industrial investment
On the import side, China maintained its dominance as the leading source of goods, accounting for US$ 4.7 billion or 24.2 percent of total imports. Other key suppliers included the UAE, India, South Africa and Japan, collectively providing over half of the EAC’s import requirements.
The top imported commodities – petroleum products, machinery, vehicles, precious metals, plastics, and iron and steel – mirror ongoing investments in infrastructure, industrialisation, and energy across the region.
Inflation and monetary developments
Despite the upbeat trade figures, the report cautions that inflation remains elevated. The EAC Harmonised Consumer Price Index (EAC-HCPI) showed annual headline inflation at 22.7 percent in June 2025, down slightly from 24 percent in May, but well above the 13.7 percent recorded in June 2024.
For the 2024/25 financial year, average inflation reached 23 percent, driven largely by surges in South Sudan (179.4 percent) and Burundi (34.1 percent). Core inflation – excluding food and energy – eased to 19.3 percent in June 2025 from 23.6 percent in May, suggesting some underlying stability in prices.
Monetary conditions varied across the bloc. Treasury bill rates rose in most Partner States except Kenya, where the 91-day rate declined to 8.2 Treasury bill. Uganda and Burundi recorded the highest short-term rates at 11.2 Treasury bill and 8.6 Treasury bill, respectively.
Lending rates fell in both Kenya and Tanzania, while Uganda saw a rise of 140 basis points. Tanzania also recorded a notable increase in deposit rates, which improved by 70 basis points, reflecting growing confidence in the banking sector.
The EAC’s overall money supply (M3) expanded by 19.1 percent year-on-year, supported by a 19.2 percent rise in private sector credit, indicating sustained monetary expansion and investment growth.
Integration and economic outlook
The EAC Secretariat said the strong trade performance underscores the region’s growing competitiveness and the dividends of deeper integration. Efforts to harmonise customs procedures, improve logistics infrastructure, and enhance industrial capacity are beginning to yield tangible results.
Economists believe that the narrowing trade deficit and the rise in intra-African commerce signal a structural shift toward value-added exports and diversified production – essential components of the bloc’s long-term industrialisation agenda.
As the EAC continues to implement the Common Market and Customs Union protocols, the positive trade trajectory offers optimism for achieving sustainable, inclusive growth across the region. “These figures reflect the East African Community’s resilience and commitment to regional cooperation. The outlook remains promising, provided that inflationary pressures are contained and trade facilitation reforms stay on course,” the report concludes.
