Weak regional commerce across eastern and southern Africa leaves integrated free trade agreements underperforming, as burdensome border bureaucracy, transit fees, and non-tariff barriers turn cross-border shipments rotten before delivery.
Malawi discovered this commercial friction firsthand about five years ago when it attempted to dispatch tons of maize flour and peanut butter to South Sudan to address a domestic food security shortfall. The consignment required passage through Tanzania, Kenya, and Uganda before reaching Juba, exposing the cargo to separate customs regimes, varying road levies, and sanitary checkpoints.
“It actually arrived in South Sudan rotten. It was not only rotten, but maggots were coming out,” said Eunice Kamwendo, Director for Southern Africa Sub-Regional Office at the UN Economic Commission for Africa, speaking to The EastAfrican. Kamwendo used the domestic example to highlight the difficult logistics regional producers face.
By the time the grain reached its destination, authorities rejected the shipment entirely. Delegates reviewed these systemic hurdles during the Economic Commission for Africa’s 2026 meeting in Windhoek, Namibia on November 11, 2026.
Trade Agreements Face High Administrative Friction
Regional merchandise trade expanded by 29 percent, totaling $8.5 billion, following the launch of a tripartite free trade area agreement encompassing the Common Market for Eastern and Southern Africa, the East African Community, and the Southern African Development Community. Despite these institutional frameworks, non-tariff barriers continue to restrict transit speeds and elevate final expenses for regional enterprises.
Research published by the UN Economic Commission for Africa indicates that intra-eastern African commerce incurs a 218 percent tax equivalent based on transaction values. Across the wider eastern and southern African landscape, non-tariff barriers inflate trading costs by 3.4 times, while intra-eastern trading expenses are 2.5 times higher and export overheads reach 2.8 times normal operational levels.
Comparative administrative drag remains significantly lower in alternative global markets, where non-tariff measures add 0.7 times the value of goods in South Asia and 0.3 times in North America, contrasted with uniform regulatory expenses inside the European Union.
“It is quite superficial trade engagement between the two regions,” said Dr Andrew Mold, Director for ECA’s Eastern Africa sub-region, during a panel discussion on trade. “It is currently quite weak. This is quite ironic because the two regions are the most integrated on the African continent. They are not living together, economically speaking.”
Southern African Exporters Dominate Merchandise Trade Flows
Merchandise trade between eastern and southern African economies reached $12.1 billion in 2025. Southern African exporters accounted for $7.3 billion of that total, with South Africa alone capturing 57 percent of sales into eastern markets.
| Regional Bloc / Flow | 2024/2025 Trade Value (USD) | Key Metrics & Composition |
|---|---|---|
| SADC Intra-Regional Trade | $95 billion | Highest internal volume among participating African blocs. |
| EAC Intra-Regional Trade | $19.2 billion | Dominated by internal flows between Tanzania, Uganda, and DRC. |
| COMESA Intra-Regional Trade | $14.6 billion | Reflects expanding merchandise exchange over a five-year window. |
| Eastern-to-Southern Trade | $12.1 billion (2025) | Includes $3.56 billion in mineral exports primarily from DRC and Tanzania. |
Mineral commodities drove a substantial share of eastern exports to the south, totaling $3.56 billion, predominantly originating from the Democratic Republic of Congo and Tanzania.
Thirteen out of fourteen eastern economies maintain trade deficits with southern counterparts. Uganda registered the largest deficit at $988 million, purchasing $1.06 billion while exporting just $28 million, whereas Tanzania secured a trade surplus of $348 million on exports valued at $1.164 billion.
Manufacturing Strategies and Regional Value Chains
Policy discussions at the Windhoek forum emphasized industrial upgrading and local manufacturing policies aimed at encouraging regional consumption. Officials said that overlapping production profiles across neighboring nations frequently hinder commercial integration.
“We should be integrating our value chains,” said Cissy Mulondo, Uganda’s State Minister for Finance. “We should not insist on what you cannot do best. Let’s accept that someone else can do better in other areas.”
Mulondo pointed to multi-stage agricultural commodities like coffee production, suggesting that partner states specialize in distinct processing tiers to optimize shared output. However, experts caution that such labor division faces domestic political resistance regarding job retention.
Traders continue to report that rules of origin verifications and transit fees imposed by intermediate nations represent the most frequent obstacles logged on the Tripartite Non-Tariff Barrier online mechanism.
“That cost is borne by the exporter. Inconsistencies in policies also make it difficult for businesses to follow,” said Daisy Kambalame from the Malawi Confederation of Chambers of Commerce and Industry. “Officials would tell nice stories, but they don’t help businesses. We really need to understand how investment decisions are made and implemented.”
