Kenya and Ethiopia have signed a new agreement aimed at accelerating trade between their border communities through the African Continental Free Trade Area (AfCFTA). The deal, signed in Mombasa by senior government officials from both countries, is designed to implement a simplified trade regime that will ease cross-border commerce and promote regional integration.
Kenya’s Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, emphasized that the partnership seeks to address long-standing trade barriers in the Moyale region. “We want to ensure that people at the border can trade freely and easily. This agreement brings us closer to realizing that goal,” said Kinyanjui, noting the mutual economic benefits for both nations.
The simplified trade framework will enable the free flow of goods and services, create employment, and support tourism between the two countries. Kinyanjui encouraged local businesses to take advantage of the improved infrastructure and investment opportunities created by the deal.
Representing Ethiopia, Minister of Trade and Regional Integration Kassahun Gofe highlighted the significance of the agreement following two years of negotiations. The two sides agreed on several key details, including a border trading zone of 50 kilometers on the Ethiopian side and 100 kilometers on the Kenyan side. Traders will be permitted to engage in transactions up to a value of $1,000, with a frequency of up to four times per month.
“This agreement will transform cross-border trade. It’s now up to us to implement what we’ve signed and get trade flowing,” Gofe said.
The deal was finalized during the 3rd bilateral meeting on the simplified trade regime, underscoring both countries’ commitment to AfCFTA and the broader vision of seamless trade across Africa