(ARUSHA) – The East African Community recorded a significant rise in international trade during the second quarter of 2025, driven by strong export performance and increased commercial activity across member states. The latest Quarterly Statistics Bulletin shows that total trade increased to USD 38.2 billion, compared with USD 29.7 billion recorded during the same period of 2024.
Exports rose to USD 18.6 billion, reflecting a rise of 40 percent. This has been linked to stronger demand in key international markets. Imports grew at a slower pace, reaching USD 19.6 billion, an increase of 18 percent. As a result, the overall trade deficit reduced from USD 3.2 billion to USD 0.9 billion, showing an improvement in the regional trade balance.
Trade with the rest of Africa grew to USD 9.3 billion, representing about one quarter of total trade. Intra-EAC trade rose to USD 4.6 billion, which accounts for around twelve percent of total trade. The bloc also strengthened its commercial ties with the Common Market for Eastern and Southern Africa and the Southern African Development Community.
A large share of export earnings came from shipments to China, the United Arab Emirates, South Africa, Hong Kong, and Singapore. These markets now make up more than sixty percent of all EAC exports. Malaysia and South Africa recorded the highest quarterly increases in demand for goods originating from the region.
The most traded export products included copper, precious stones and metals, coffee and tea, mineral fuels, and ores. These commodities made up almost eighty percent of all exports during the period.
On the import side, China remained the leading supplier of goods to the region with exports worth USD 4.7 billion. The United Arab Emirates, India, South Africa, and Japan also remained key trade partners. Major imports included petroleum products valued at USD 4.1 billion, machinery worth USD 1.8 billion, vehicles valued at USD 1.5 billion, and precious metals also at USD 1.5 billion.
Selected EAC Trade Summary (Q2 2025)
| Category | Value (USD) | Notes |
|---|---|---|
| Total Trade | 38.2 billion | Increased by 28 percent |
| Exports | 18.6 billion | Increased by 40 percent |
| Imports | 19.6 billion | Increased by 18 percent |
| Trade Deficit | 0.9 billion | Reduced from 3.2 billion |
| Intra-EAC Trade | 4.6 billion | Represents 12 percent of total |
Despite the growth in trade, inflation remains a concern in the region. The annual headline inflation rate stood at 22 percent in June 2025, compared with 13 percent during the same month in 2024. South Sudan and Burundi recorded the highest inflation levels in the EAC during this period. In South Sudan, inflation reached 179 percent, affecting household purchasing power and business costs. This means that goods priced at 7,100 SSP per US dollar in the market continue to strain consumers and traders.
Monetary indicators show that short term interest rates increased in most EAC member states, except in Kenya where the 91 day treasury bill rate declined. Uganda recorded the highest treasury bill rate at 11 percent. South Sudan posted the widest spread between lending and deposit rates at 13 percent, indicating higher borrowing costs for businesses.
Private sector credit across the region increased by 19 percent, signalling continued business investment and financial sector activity.
The EAC Secretariat stated that the bloc remains committed to expanding trade integration, strengthening industry and value addition, and supporting business growth. However, it noted that inflation and currency pressures will require close economic policy coordination among partner states.
For South Sudan, participation in regional markets remains an important path for revenue growth, investment attraction, and economic stability. The continued expansion of trade within the EAC is expected to provide opportunities for businesses, particularly in agriculture, mining, and transport services.