Kenya and Ethiopia have signed a landmark Memorandum of Understanding (MoU) aimed at streamlining cross-border trade through the Moyale border, setting a USD 1,000 trade threshold under the African Continental Free Trade Area (AfCFTA) framework. The agreement, finalized in Mombasa, is designed to simplify trade procedures and stimulate economic activity, particularly in border communities.
Ethiopia’s Minister of Trade and Regional Integration, Kassahun Gofe (PhD), elaborated on the structure of the agreement, noting that the operational details are documented in the agreed minutes matrix. “Both parties have committed to collaborating on the implementation of the African Continental Free Trade Area,” he said. He also urged technical teams from both countries to finalize and exchange the draft legal instruments necessary for full implementation.
Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, on his part highlighted the broader vision of the agreement, emphasizing the importance of creating a freer and more efficient trade environment between the two countries. “We are emphasizing that, within the bigger scope of things, Kenya and Ethiopia will look for ways to implement free trade. This will allow goods from either country to move easily and enable people to work freely across borders,” he stated, adding that the deal could also benefit sectors such as tourism and manufacturing.
RELATED POSTS
Under the terms of the agreement, Ethiopia’s designated border trade zone will extend 50 kilometers from Moyale, while Kenya’s will cover a 100-kilometer radius. The framework permits traders to carry out transactions worth up to $1,000, with a maximum of four trips per month, based on a list of mutually agreed goods.
