For Rwanda to become an emerging middle-income economy, it will need to unleash its export potential. The country has a natural comparative advantage in services, including tourism, and can serve as a gateway between Anglophone East Africa and Francophone Central Africa. But Rwanda can only reap these benefits if it integrates with its neighbors.
Regional integration can bring substantive benefits to all EAC members. But will progress affect all countries in a similar fashion? The answer is no.
Three countries are landlocked (Burundi, Rwanda, and Uganda), and two are coastal (Kenya and Tanzania). Kenya’s GDP (PPP) is similar to Tanzania’s, but 5 times that of Rwanda and almost 20 times that of Burundi.