Regional conflict has led to a 40% drop in trade volumes by an estimated 30–45% in border trade, informal markets, and logistics-dependent exports.
Gender and Heritage cabinet secretary, Hanna Cheptumo has called on regional leaders to intensify efforts toward resolving these conflicts, warning that the persistent instability is crippling economic growth and regional integration within the Intergovernmental Authority on Development (IGAD).
Under development, poverty, climate change and conflict are some of the challenges facing the eight member bloc including Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan and Uganda consisting of over 200 hundred and sixty million people.
Data from the United Nations Conference on Trade and Development -UNCTAD 2024 reports, indicates that conflict led to the closure of trade routes between Sudan and Ethiopia/South Sudan, a drop of 35–45% in exports from Sudan to neighboring IGAD countries, destruction of Port Sudan’s operational efficiency, hampering access underscoring conflict as a major barrier to integration and prosperity.
Dr. Workneh Gebeyehu, IGAD Executive Secretary opines if conflict was addressed, IGAD countries could potentially double intra-regional trade volumes, and inrease their GDP growth by 1.5–2% per year.
Stakeholders have also called for the fast-tracking of customs unions, common market initiatives, and trade corridors as well as aligning IGAD goals with the African Continental Free Trade Area to unlock new economic synergies.
