ABSTRACT
This chapter discusses the trade of five East African countries with the European Union (EU) and China respectively. Analysis of primary and secondary data reveals persistent low returns for East Africa (EA) and high dividends for the EU and China. The African Union (AU), in its January 2018 Heads of State Summit in Addis Ababa, highlighted steps taken to enhance intra-African trade, and also declared 2018 as the anti-corruption year. The East African Community (EAC) has made strides in promoting intra-regional trade. International rules, regimes and bad governance, for which officials and leaders of the EA states are accountable, have, however, had a negative impact on trade and investment. Economic Partnership Agreements (EPAs) and differentiated treatment of EA countries by the EU have been an ongoing source of dissatisfaction. China’s prominence as a trading partner of EA has risen. Whereas its massive investments in infrastructure have immediate visible impact, their huge costs have resulted in escalated foreign debt, generating an outcry locally and from Western multilateral agencies. Questions about debt hegemony, implications of trade agreements and human rights abuse feed into the growing resentment of ordinary Africans. It remains to be seen if China’s EA projects will enhance the AU’s flagship agenda 2063, which prioritises infrastructure and energy. This chapter recommends collective review of rules of engagement to yield equitable benefits for all.
