Germany injects 40 million euros in new grant funding to the East African Community

Germany is committing €39.8 million in new grant funding to strengthen regional trade and economic integration across the East African region.

The East African Community (EAC) and the Federal Republic of Germany have renewed their commitment to advancing regional integration.

This follows the conclusion of Development Cooperation Negotiations at the East African Community headquarters in Arusha.

The EAC delegation was led by the Secretary General, Ambassador Stephen Mbundi, while the German delegation was headed by Mr Joachim Schmitt, Head of the Central and East Africa Division at the German Federal Ministry for Economic Cooperation and Development (BMZ).

Mbundi appreciated Germany for being a longstanding partner of the EAC, noting that the country’s sustained collaboration has contributed significantly to the Community’s regional integration journey.

BMZ official, Joachim Schmitt pointed out that the EAC region is a lucrative investment hub for the German and European private sector interested in trade and value chain development.

“With our cooperation we want to support rules-based trade integration, regional economic development and deepen private sector engagement,” he said.

The EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, Ms. Annette Ssemuwemba, appreciated the German delegation for their commitment to supporting the Community, just as the East African Community embarks on implementation of its 7th Development Strategy.

Apparently, the discussions also focused on support for the EAC’s 7th Development Strategy, where Germany and the EAC agreed that the core mandate is to further advance East African trade and the region’s economic integration.

 Germany is committing 39.8 million euros in grants for this purpose.

 “East Africa is the fastest growing region with a 14 percent increase in intra-EAC trade, growing trade volumes within the Africa Continental Free Trade Area (AfCFTA) and beyond the continent,” Joachim Schmitt added.

EAC and Germany further expressed their interest to advance their partnership and support to the “Invest.EastAfrica! – German-East Africa Business and Investment Forum.

It is an initiative by the EAC Secretariat, the State of Hesse, the East African Business Council and various German business organizations, recognizing its role in promoting investment, trade and stronger economic ties between Germany and the East African region.

Both sides also welcomed the preparations and readiness for the upcoming EU-EAC negotiations on a joint Economic Partnership Agreement.

The outlook is clear both economic zones, including markets, businesses, and consumers, will benefit if they succeed in negotiating a forward-looking and sustainable agreement for both sides.

The newly allocated funds shall focus on promoting access to financial services for micro, small, and medium-sized enterprises (MSMEs) in the EAC through a partnership between the German development bank KfW and the East African Development Bank.

Part of the new funding will improve access to finance for micro, small and medium-sized enterprises (MSMEs) through cooperation between KfW and the East African Development Bank.

MSMEs account for up to 80 percent of employment in the region and are key drivers of innovation, manufacturing, agriculture and tourism.

As a central pillar of quality infrastructure, metrology forms the basis for fair trade, regional and continental integration, and participation in global value chains.

Reliable measurement results enhance consumer protection, promote local economic development, and benefit both African, German and European economies.

Part of the German funds will be used to foster metrology standards through a partnership between the German National Metrology Institute and corresponding partners in the East African region.

Germany welcomed the EAC’s progress on institutional reforms, including the adoption of the 7th EAC Development Strategy, and reaffirmed its commitment to supporting its implementation through technical and financial cooperation. Both partners also stressed the importance of closer collaboration and coordination with civil society, the private sector and development partners to strengthen regional cooperation.

As part of its commitment to the EU Global Gateway strategy and as part of Team Europe, Germany will continue working closely with the European Union and all its engaged member states to support regional initiatives in trade, digital transformation, health, transboundary water management, civil society and sustainable economic development.

As part of the new funding allocation EUR 4.8 million are earmarked as additional German support in response to the ongoing Ebola outbreak in the region for measures dedicated to direct Ebola preparedness.

The additional resources will finance targeted Ebola response measures, including practical infection prevention and control (IPC) trainings for frontline healthcare workers, the procurement and distribution of Ebola-specific personal protective equipment (PPE), strengthened regulatory preparedness to accelerate access to potential Ebola vaccines, therapeutics and other medical countermeasures, as well as community sensitization activities to reduce vaccine hesitancy and support future Ebola vaccination campaigns.

Germany remains a reliable partner of the East African Community and looks forward to continuing its long-standing cooperation to advance regional integration, sustainable development and shared prosperity across East Africa.