Kenya and Ethiopia have signed a Simplified Trade Border Regime (STBR) agreement to streamline trading processes and enhance cross-border commerce, particularly for small-scale entrepreneurs.
The agreement was signed in Addis Ababa by Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, and Ethiopia’s Minister for Trade and Regional Integration, Kassahun Gofe.
The pact aims to reduce bureaucratic hurdles that have long hindered small-scale and informal traders and is expected to enhance trade flows between the two neighboring countries.
Under the STBR, customs procedures will be simplified through a standardized list of permitted goods and clear trade requirements. Moreover, the regime facilitates cross-border movement for traders by minimizing paperwork requirements.
The program primarily targets young people and women, who constitute a large portion of small-scale cross-border traders.
Following the signing on Friday, Lee Kinyanjui hailed the agreement as a significant step toward deepening economic integration between the two countries.
“The STBR simplifies customs formalities and sets a common list of products and clear thresholds besides reducing paperwork for small-scale traders, especially youth and women,” the Kenya Department for Trade, Ministry of Investments, Trade and Industry stated.
The framework is anticipated to deliver a wide range of economic and social advantages. Its objectives include increasing incomes for border communities, enhancing access to essential goods, reducing illicit trade, and promoting peace and cooperation along the shared border.
The two ministers highlighted the importance of cross-border trade as a cornerstone for effectively implementing the African Continental Free Trade Area (AfCFTA).
They noted that the STBR will support inclusive growth, create new economic opportunities, and help border towns become integrated into formal trade systems.
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