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East Africa integration and the fiscal squeeze paradox
The AfCFTA Secretariat, policymakers, and treasuries must collaborate on compensation schemes and revenue systems to keep trade reforms fiscally manageable.
East Africa stands at a pivotal juncture. On one hand, regional integration is deepening — through the East African Community (EAC), the African Continental Free Trade Area (AfCFTA), and various bilateral and multilateral trade agreements.
On the other hand, the region faces a creeping erosion of one of its most stable revenue pillars: customs revenue. As the push for free trade accelerates, an urgent question looms: can we afford to integrate without compromising fiscal space?
