Sep 20 2010
A Customs Union in Africa
We are currently studying and analysing some of the trade blocs that exist around the world. Three East African countries; Uganda, Tanzania and Kenya formed a Customs Union in 1967 with the lofty aims of developing free trade. An article in a past edition of the Economist, explains the evolution of trade in this part of Africa and also explains how the group of nations is attempting to revitalise and strengthen the agreement.
An East African Federation – PDF download
Each of the nations who are members of this trade bloc are at different stages of development, thus have different things to gain or lose through the expansion of the trade bloc. Uganda is rich with natural resources such as oil, Tanzania lacks the same educated workforce of Kenya, which inturn has high levels of endemic corruption. The risk for all three nations in a free trade agreement is the exploitation of resources across national borders.
This is a good video which introduces the new Common Market.
Have a read of the article at the link above and complete the following discussion questions.
Discussion Questions:
- What kind of trade bloc exists between the existing members of the East African Community?
- Who are the original members of the EAC?
- Describe how the East African Communtiy (EAC) has changed overtime?
- What are the advantages of altering the EAC to become a customs union and common currency union, with a bigger population base, and to include nations such as Somalia, South Sudan and Congo
- What are the disadvantages of such a policy?
Louris Yamaguchi – CC Commons – Flikr






