Germany Pledges Shs167 Billion to Boost EAC Trade and Health Initiatives

The Federal Republic of Germany has announced a significant financial commitment of €39.8 million, equivalent to Shs167 billion, through grants to bolster the East African Community’s efforts in deepening regional trade and economic integration.

This pledge was finalized during recent development cooperation talks between the EAC and German officials in Arusha. The funds are earmarked for two primary objectives: channeling capital to micro, small, and medium enterprises (MSMEs), which are significant employers across the region, and reinforcing the infrastructure that underpins trade, from accurate measurement systems to disease surveillance.

Germany’s support comes at a crucial time as the EAC rolls out its 7th Development Strategy. “As we look towards implementing the 7th EAC Development Strategy, renewing our cooperation with Germany is critical,” stated EAC Deputy Secretary General Annette Ssemuwemba.

A substantial portion of the funding will be directed towards improving access to finance for MSMEs, facilitated through a partnership between Germany’s development bank KfW and the East African Development Bank. For Uganda, this could translate into more accessible and affordable credit for small businesses.

Furthermore, the grant will bolster metrology, the science of measurement. By aligning standards with international norms, Germany aims to ensure fair trade practices and help East African products meet global quality requirements, potentially reducing export rejections.

In addition to trade, the funding includes €4.8 million specifically for Ebola preparedness in the EAC region. This initiative, operating under the “Support to Pandemic Preparedness in the EAC Region” (PanPrep) project, will support training for frontline health workers, the procurement of essential protective equipment, and community sensitization efforts.

This German support is framed within the EU’s Global Gateway strategy, emphasizing collaborative efforts with the European Union and member states on trade, digital transformation, and health security. For Uganda, this commitment arrives as the government actively works to formalize more MSMEs and meet the stringent standards necessary for exports under the African Continental Free Trade Area (AfCFTA).

Germany reiterated its commitment to the EAC’s institutional reforms and its role as a reliable partner in advancing regional integration and sustainable development across East Africa. Germany has committed €39.8 million, about Shs167 billion, in fresh grants to the East African Community to deepen regional trade and economic integration. https://www.monitor.co.ug/uganda/news/national/germany-commits-shs167-billion-to-boost-eac-trade-health—5561172