By Dennis Katungi
The annual Regional Industrialisation Conference 2026, held at Serena Kampala, has once again brought into sharp focus one of East Africa’s biggest economic challenges: how to turn regional integration from a political aspiration into a practical engine for industrial growth. The two-day summit, organised by the Private Sector Foundation Uganda in conjunction with the Ministry of Trade, Industry & Cooperatives was opened by the Minister of Finance, Planning and Economic Development, Hon Henry Musasizi.
The conference came at an important time when African countries are seeking to create jobs, expand manufacturing, re-arrange Tourism marketing, increase intra-African trade and reduce dependence on imported goods and services. Despite the enormous potential of the East African market, businesses continue to face barriers that make it unnecessarily difficult to produce, transport and sell goods and services across borders. For example, Africa’s intra-trade [Internal trade on the continent] stands at 14% compared to European Union’s 58%.
If the region is serious about industrialisation, it must now move beyond declarations and take decisive action. Three areas deserve urgent attention: removing non-tariff barriers, opening borders to labour and harmonising tax and customs policies. East Africa cannot build a competitive industrial base while its borders remain difficult and expensive for businesses to cross.
The first obstacle is the persistence of non-tariff barriers. These include unnecessary delays at borders, multiple inspections, inconsistent standards, bureaucratic procedures and restrictions that increase the cost of doing business.
A manufacturer in Uganda should not have to face unnecessary obstacles when selling products to Kenya, Tanzania, Rwanda, Burundi, South Sudan or the Democratic Republic of Congo. The same should apply to businesses from those countries seeking access to the Ugandan market. A regional market only becomes meaningful when goods can move efficiently.
Governments must therefore strengthen one-stop border posts, improve digital customs systems, recognise common product standards and eliminate duplicated inspections. Where a product has already met agreed regional standards, there should be no reason for it to undergo another lengthy process at every border.
The second issue is the movement of labour. Industrialisation is not only about factories, machines and capital. It is also about people and skills. East Africa has millions of young people looking for opportunities, while industries frequently struggle to find specialised skills. The region should therefore move towards greater freedom of movement for workers, particularly for professionals and people with specialised technical skills.
A Ugandan engineer should be able to work in Kenya or Rwanda without unnecessary bureaucracy. A Kenyan technician should be able to take up a job in Uganda when his or her skills are needed. A Tanzanian specialist should be able to contribute to a project in another East African country. This does not mean abandoning national employment policies. Rather, it means creating a coordinated regional labour market that allows skills to move to where they are most needed.
Such an approach would benefit businesses, workers and governments. It would also encourage East African citizens to see the region as one economic space rather than a collection of separate national markets. The third priority is harmonisation of tax and customs policies.
Differences in tax regimes, customs procedures and charges can discourage investment and create opportunities for disputes and evasion. Businesses need predictability. An investor considering whether to establish a factory in East Africa must be able to understand the rules governing the movement of raw materials, machinery and finished products across the region. Excessive differences and conflicting policies can undermine regional integration.
East African governments should therefore work towards greater convergence of tax policies, customs procedures and trade regulations. This would reduce uncertainty and make the region more attractive to both domestic and foreign investors. Industrialisation also requires governments to think beyond individual national interests.
A factory established in Uganda does not necessarily benefit Uganda alone. It can create markets for farmers in Tanzania, employ professionals from Kenya, source raw materials from Rwanda and sell finished products across the region. This is the logic of regional value chains.
Instead of every country attempting to manufacture everything, East African states should specialise according to their comparative advantages while ensuring that industries are connected through efficient transport, energy, finance and trade systems.
The African Continental Free Trade Area provides an even bigger opportunity. But East Africa must first make its own regional market work effectively.
East Africa has the population, natural resources, entrepreneurial talent and market to become one of Africa’s major industrial centres. What it lacks is not potential. It is the courage to remove the barriers that stand between that potential and reality.
The message from the Regional Industrialisation Conference 2026 was clear. Open the borders, remove unnecessary barriers, harmonise the rules and let East African businesses compete and grow as one market.
The writer is the Deputy Executive Director- Uganda Media Centre .
@Dennis_Katungi
