In a landmark move poised to reshape regional commerce, Ethiopia and Kenya are set to launch a transformative cross-border trade zone under the African Continental Free Trade Area (AfCFTA) framework, focusing on grassroots economic empowerment and regional peacebuilding.

The two nations, following a Memorandum of Understanding (MoU) signed last April, are now rolling out a Simplified Trade Regime (STR) that will allow communities within 50 kilometers of Ethiopia’s border and 100 kilometers inside Kenya to trade freely in essential goods.

“The cross-border trade will take place across their common border covering 50 kilometers within Ethiopian territory and 100 kilometers in the territory of Kenya,” said Wondimu Filate, Public Relations and Communication Affairs Director at Ethiopia’s Ministry of Trade and Regional Integration, during a press briefing on Monday.

The cross-border market will enable the exchange of goods such as livestock, dairy products, fruits, vegetables, edible oil, drinks, leather items, footwear, and clothing commodities that are critical to the daily lives and income of border communities.

Officials say the agreement, which was the product of two years of rigorous negotiations, will dismantle long-standing trade barriers, reduce smuggling, and improve security in the often-neglected borderlands. The town of Moyale, historically a trade hub but often a flashpoint for logistical and regulatory challenges, will be a key beneficiary of the initiative.

Signed during a high-level meeting in Mombasa, the MoU represents a shared commitment by both governments to unlock the economic potential of border areas, drive continental integration, and implement the broader goals of the AfCFTA.

With implementation now imminent, residents and traders along the Kenya-Ethiopia border can expect new opportunities, a safer trading environment, and strengthened economic ties between the two East African neighbors.