The Ministry of Trade and Regional Integration has unveiled a new cross-border trade directive designed to formalize commerce and bolster economic benefits for communities living along the Ethiopia-Kenya border.
This initiative serves as the primary implementation mechanism for the streamlined trade framework signed between the two nations in Addis Ababa on December 10, 2018.
The directive’s core objectives are to mitigate illicit trade and smuggling, promote regional peace and security, and deepen the socio-economic ties between the neighboring populations.
Furthermore, the policy aims to provide border residents, who are often geographically isolated from central markets, with easier access to essential consumer goods through legal channels.
Under the new regulations, traders are restricted to a monthly trade volume not exceeding $1,000 USD or its equivalent in Ethiopian Birr or Kenyan Shillings. Provided they adhere to this financial cap, traders are permitted to make up to four trips per month.
Geographically, the scope of this trade corridor is limited to an area extending 50 kilometers from the border on the Ethiopian side and 100 kilometers on the Kenyan side.
Regarding specific quantitative restrictions, trading is capped at a maximum of two camels or cattle, and five sheep or goats per trip. Agricultural commodities are also subject to volume limits, such as a one-quintal ceiling on maize per trip.
The directive covers a list of 50 approved product categories, including livestock, agricultural produce, spices, edible oils, beverages, clothing, footwear, leather goods, household and office furniture, mattresses, mobile phones, and stationery.
Operational oversight remains strict; all cross-border transactions must be processed exclusively through designated border posts serviced by the Ethiopian Customs Commission.
The Ministry of Trade and Regional Integration or its authorized agencies retains the authority to calculate and regulate the pricing of export goods. Officials have called upon local traders to obtain the necessary border trade licenses to operate within this new legal framework.
This formalized system is expected to ensure a sustainable supply of basic necessities for border residents and elevate the long-standing diplomatic and commercial partnership between the two countries to a new level.
