Kenya and Ethiopia have signed a bilateral agreement to collaborate in the implementation of the African Continental Free Trade Area.

The two parties represented by senior government officials of the respective governments signed a memorandum of understanding to fast-track the implementation of the African Continental Free Trade Area between Kenya and Ethiopia on a simplified trade regimen.

Speaking in Mombasa, Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said Kenya wants to fast-track trade at the border to ease challenges border communities in Moyale – a frontier town that straddles Kenya-Ethiopia border – face.

Kinyanjui said there have been significant challenges thus the need for the agreement to ensure that communities living on either side of the border can do trade freely.

“We are emphasizing that within the bigger scope of things Kenya and Ethiopia will be looking for ways in which we can implement free trade so that goods produced here or Ethiopia can come and people can work anywhere in the two countries not forgetting tourism in Mombasa and many other things that will boost our economy,” he said.

The principal secretary assured the public that the government will continue to engage neighbouring countries to make sure there is a good trading environment for the people.

He noted that Ethiopia has critical goods that Kenya needs. Likewise Kenya has finished industrial products that it can export to Ethiopia, hence the need for partnership. He said citizens of the two countries should be encouraged to invest to enjoy the benefits of the signed partnership.

Kinyanjui said the government has invested in infrastructure to make trading easy, urging Kenyans to take advantage and trade with neighbouring countries.

Ethiopian Minister of Trade and Regional Integration Kassahun Gofe underscored the importance of concluding negotiations to kick start the implementation of the simplified trade regime to accelerate trade between the border communities of the two countries.

Gofe, who represented the Ethiopian Prime Minister Abiy Ahmed said the meeting considered two key outstanding issues, which include areas of border trade, trading threshold, travel and the common list of products. He added that the parties also agreed that the border area of Ethiopia be 50 kilometres from the common border while for Kenya to be 100 kilometres from the common border.

He said the value threshold was also agreed to be $1000, which is the frequency of four times per month and a common list of products.

“Details of the deliberations are continued in the matrix of agreed minutes, and both parties have agreed to collaborate in the implementation of the Africa Continental Free Trade Area,” he said.

He urged the technical committees of both ends to finalise the agreement, acknowledging the effort put in reaching a consensus by the two parties.

“We have finally signed the agreement after two years of serious negotiations. The main challenge will be implementing and starting trade of what was agreed,” Gofe said.

The deliberations were made after a joint communiqué of the third bilateral meeting between Kenya and Ethiopia on the simplified trade regimen in Mombasa, Kenya.

• A Tell Media / KNA report /By Chari Suche

Cabinet Secretary for Trade Lee Kinyanjui (right) and his Ethiopian counterpart Kassahun Gofe during the third bilateral trade meeting between Kenya and Ethiopia on the simplified trade regime, in  Mombasa.