(KAMPALA) – Trade volumes in East Africa continue to grow at a rapid pace, with rising cargo flows across border points such as Busia and Malaba. According to TradeMark Africa, stronger regional infrastructure, higher population demand, and improved trade systems are driving this growth.
Anne Nambooze, TradeMark Africa’s Country Director for Uganda and South Sudan, said in an interview that trade in the region has more than doubled in the past decade. On the Northern Corridor, which connects Mombasa to Kampala and beyond, volumes recorded in 2024 were more than twice those of 2012. Projections show trade could expand by another 20 million tonnes by 2035.
Despite the growth, East Africa’s exports remain limited. Only about 15 percent of the region’s trade involves goods leaving for foreign markets, underlining the need to boost regional and global exports. Intra-African trade has also remained stagnant at around 15 percent for the past decade.
A major driver of growth is a shift towards value addition. While many East African countries produce similar raw materials, more producers are now processing goods before export. For example, Ugandan firms are selling avocado oil and agricultural-based cosmetics to markets in South Sudan and the Democratic Republic of Congo.
Non-Tariff Barriers (NTBs), however, remain a challenge. Goods such as Ugandan milk, eggs, and fish face restrictions from neighbours, particularly Kenya. To resolve these disputes, governments are turning to bilateral agreements. Uganda and Kenya recently signed accords recognising standards and eliminating some NTBs, with technical teams now working on implementation.
Transport costs continue to weigh heavily on regional trade, especially for landlocked economies. Exporting goods from Kampala to Mombasa, a journey of more than 1,000 kilometres, costs about $2,300 (SSP 16.3 million) for a round trip. This accounts for roughly 41 percent of the final product price. TradeMark Africa has proposed shifting clearance operations to Naivasha in Kenya, about half the distance, which could save at least $700 (SSP 5 million) per trip.
The most traded goods in East Africa are agricultural staples such as maize, beans, millet, and sorghum. These are in high demand in Kenya, the DRC, and South Sudan. Uganda’s coffee is also in demand globally, ranking as its second largest export after gold.
Looking ahead, TradeMark Africa believes new infrastructure and smarter technology will be key to sustaining growth. Congestion at border posts is worsening as trade increases. Investment in railways, lake transport, and modern ports could ease pressure. For instance, Uganda has been urged to rehabilitate the Gulu–Pakwach line and improve Port Bell and Jinja Pier, while awaiting the completion of Bukasa Port on Lake Victoria.
Technology can also play a major role. Integrated border management systems are already in place, but further adoption of Artificial Intelligence, smart gates, and drones could speed up clearance and improve efficiency.
At Malaba border post, clearance still takes an average of two days, compared with as little as two hours at smaller posts like Goli. The delays add to costs and reduce competitiveness. About 30 percent of cargo from Mombasa heads to countries further inland, including South Sudan, while most is absorbed by Kenya itself.
For South Sudan, these developments hold important lessons. As the country seeks to diversify its economy beyond oil and strengthen its trading capacity, investment in cross border infrastructure and adoption of smart systems could help reduce costs, improve export competitiveness, and open wider opportunities in the East African market.
Transport Costs from Kampala to Mombasa
| Route | Distance (km) | Average Round Trip Cost | Cost in SSP | Potential Savings with Naivasha |
|---|---|---|---|---|
| Kampala – Mombasa | 1,000+ | $2,300 | SSP 16.3m | – |
| Kampala – Naivasha | 500 | $1,600 | SSP 11.4m | $700 (SSP 5m) |
