NAIROBI, Kenya, Dec 20— Kenya and Ethiopia have taken a significant step toward strengthening regional commerce after signing a Simplified Trade Border Regime (STBR) agreement aimed at easing trading procedures and boosting cross-border trade, particularly for small-scale traders.
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 is expected to enhance trade flows between the two neighboring countries by reducing bureaucratic barriers that have long hindered informal and small-scale traders.
Under the STBR, customs procedures will be simplified, with a harmonized list of eligible products and clearly defined trade thresholds. The regime also reduces paperwork requirements, making it easier for traders to move goods across the border.
The initiative is designed to particularly benefit youth and women, who form a large proportion of small-scale cross-border traders.
“The STBR simplifies customs formalities, sets common list of products and clear thresholds besides reducing paperwork for small scale traders especially youth and women,” State Department for Trade-Ministry of Investments, Trade and Industry said Friday.
Speaking after the signing, the two ministers underscored the importance of cross-border trade as a cornerstone for the successful implementation of the African Continental Free Trade Area (AfCFTA).
They noted that the STBR would help integrate border communities into formal trade systems, unlock economic opportunities, and promote inclusive growth.
The leaders further called for the swift rollout of the agreement, saying it would not only empower local communities but also strengthen economic integration and enhance regional security across the Horn of Africa.
The STBR is part of broader regional efforts to formalize informal trade, improve livelihoods, and deepen economic ties between Kenya and Ethiopia in line with continental trade and development goals.
