Briefing Paper

Within the EAC, which Countries stand to Benefit from the Implementation of the AfCFTA

The brief provides evidence on the likely trade, welfare and revenue effects of the AfCFTA on the EAC economies. Generally, all the EAC countries incur tariff revenue losses. Kenya incurs the most extensive tariff revenue loss followed by Uganda, Tanzania, Burundi and finally Rwanda. Whereas Burundi and Kenya are likely to experience positive trade effects primarily arising from trade creation, Tanzania and Rwanda will experience adverse trade effects. Regarding the welfare effect, whereas Uganda and Burundi experience positive welfare effects, Kenya, Tanzania, and Rwanda experience negative welfare effects. The consumers in Uganda and Burundi are more likely to relatively experience positive welfare effect compared to the others.