East Africa seeks trade gains as regional bloc engages EU on new agricultural rules

By Business Insider Correspondent

East Africa is gearing up for crucial negotiations that could shape the future of its agricultural exports to Europe, as the East African Community (EAC) and the Southern African Development Community (SADC) convene a high-level policy dialogue in Uganda on December 11 and 12.

The meeting, to be held at the Speke Resort in Munyonyo, will focus on the far-reaching implications of the European Union’s tightening regulatory frameworks – among them the EU Green Deal, the EU Deforestation Regulation (EUDR), the Corporate Sustainability Due Diligence Directive (CSDDD), and stricter sanitary and phytosanitary rules. These laws will significantly affect African exports, particularly key value chains such as coffee, cocoa, horticulture and timber.

Why this dialogue matters

The EU remains Africa’s single largest trading partner, taking in 33 percent of African exports and supplying 31 percent of imports.

But the trade relationship is uneven: 68 percent of EU exports to Africa are manufactured goods, while only 34 percent of Africa’s exports to Europe fall into that category. Most African exports – especially from East Africa – are raw or semi-processed.

For Tanzania, whose economy is heavily anchored in agriculture, the new EU rules present both risks and possibilities.

Coffee, tea, cashew nuts, horticultural products, and timber are among the country’s top export earners – and many of these commodities fall directly under the EUDR, which becomes binding for most operators by December 2025.

Failure to comply could see Tanzanian exporters face market exclusion, pricing penalties or increased operational costs. But proper alignment could unlock new avenues for value addition, investment, and technological upgrading.

Digital traceability, climate certification and new investment opportunities

Jane Nalunga, Executive Director of the Southern and Eastern Africa Trade Information and Negotiations Institute, said compliance could encourage East African governments and businesses to invest in digital traceability systems, farm-level monitoring, and climate-smart certification schemes. Such systems are increasingly demanded by global buyers and could improve East Africa’s competitiveness far beyond Europe.

For Tanzania, implementing traceability in its coffee and cashew value chains – both major forex earners – could help differentiate its products in premium markets and attract higher prices.

Investment in digital infrastructure would also open opportunities for youth employment and agritech innovation.

However, Nalunga warned that smallholder farmers risk being left behind without coordinated regional support. Many lack the technology, record-keeping systems and financial resources needed to meet EU standards.

A strategic advantage

One of the key aims of the Uganda dialogue is to craft joint EAC–SADC strategies for compliance, harmonising standards across the region and reducing duplication of efforts.

A unified regional approach would be particularly beneficial to Tanzania, which straddles both blocs and serves as a key transit hub for agricultural exports from landlocked neighbours.

Coordinated systems could reduce costs at border points, improve logistics at major ports such as Dar es Salaam and Tanga, and enhance Tanzania’s appeal as a regional processing and export centre.

The dialogue will feature EU Members of Parliament, representatives from the ACP-EU Joint Parliamentary Assembly, private-sector leaders, producers and senior policymakers from the continent.

Opening remarks will be delivered by Ambassador Jan Sadek, Head of the EU Delegation to Uganda, and Rt Hon Thomas Tayebwa, Uganda’s Deputy Speaker of Parliament and President of the OACPS Parliamentary Assembly.

Among other issues, the sessions will explore; how the ACP-EU Joint Parliamentary Assembly can safeguard African interests, Europe’s shifting regulatory landscape, Africa’s structural trade challenges and value-addition pathways for agricultural exports as well as sustainable supply-chain transformation. For Tanzania and its neighbours, success in these negotiations could determine whether the new EU rules become a barrier – or an opportunity – to accelerate agricultural development, expand export revenues, and strengthen the region’s position in global markets.