EABC Calls for Harmonized Fiscal Policies to Boost Intra-EAC Trade and Regional Competitiveness Kampala, Uganda – May 2026
EABC Calls for Harmonized Fiscal Policies to Boost Intra-EAC Trade and Regional Competitiveness
Kampala, Uganda – May 2026
The East African Business Council (EABC) on Thursday, 21st May, convened a press conference at the Private Sector Foundation Uganda (PSFU) Head Office in Nakasero, Kampala, to call on East African Community (EAC) Partner States to harmonize fiscal policies in the FY2026/27 national budgets in order to strengthen regional trade, improve competitiveness, and accelerate economic integration across the bloc.
The press conference was convened by EABC, represented by Mr. Oscar Kamukama and Mr. Emmanuel Busuulwa, alongside PSFU represented by Mr. Stephen Asiimwe.
The call is contained in EABC’s latest policy proposal on the Harmonization of Fiscal Policies for FY2026/27 National Budgets of EAC Partner States, which highlights persistent disparities in domestic taxes, excise duties, levies, and charges that continue to hinder the free movement of goods and services within the region.
According to the proposal, the EAC economy is projected to grow by 5.6% in 2026, maintaining its position as one of Africa’s fastest-growing regional blocs despite global economic uncertainties. However, intra-EAC trade remains below its potential, accounting for only 12.3% of total trade in Q4 2025.
EABC noted that the lack of uniform implementation of the EAC Common External Tariff (CET), coupled with discriminatory domestic taxes and non-harmonized levies, continues to create an uneven business environment and undermine investor confidence across the region.
Speaking on the importance of regional fiscal alignment, Stephen Asiimwe, Chief Executive Officer of PSFU, said the private sector is looking to governments to implement policies that support trade, industrialization, and regional value chains.
“Regional integration can only deliver meaningful economic transformation if businesses are operating within a predictable and harmonized fiscal environment. The private sector needs consistent tax regimes, reduced trade barriers, and coordinated policies that enhance competitiveness across the EAC,” Asiimwe said.
He added that harmonized fiscal measures would not only ease the cost of doing business but also strengthen local manufacturing, attract investment, and expand market access for Ugandan and regional enterprises.
The policy paper also calls on Partner States to eliminate discriminatory taxes imposed on EAC-originating goods and exempt such products from charges of equivalent effect that distort trade within the Customs Union.
Oscar Kamukama, Manufacturers Representative at EABC, emphasized the need for governments to place manufacturers at the centre of fiscal policy reforms.
“Manufacturers across the region continue to face increased production costs due to varying tax structures, inconsistent tariff applications, and multiple levies imposed across borders. Harmonization is critical in building stronger regional value chains and improving the competitiveness of locally manufactured products,” Kamukama said.
He further noted that aligning fiscal policies across Partner States would reduce uncertainty for investors and promote industrial growth within the region.
Among the key recommendations, EABC is calling for uniform application of the EAC Common External Tariff, harmonization of domestic taxes, elimination of discriminatory excise duties and levies, and adoption of a harmonized regional pre-budget consultation calendar to ensure timely and meaningful private-sector participation in fiscal policy discussions.
The Council further urged EAC governments to strengthen transparency and accountability by publishing regional compliance scorecards and creating a structured mechanism for consultation with the private sector during the budget formulation process.
