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This paper explores the role of technology innovation on the volume and value of COMESA exports to COMESA member states and other 43 significant importers by using a gravity model. The role of technology innovation on export trade was estimated using a panel data set of 12 years (2007-2018) with the Poisson Pseudo-Maximum Likelihood (PPML) technique given its advantage in handling several estimations challenges. The study found that technology innovation has a high potential in the COMESA region to enhance the overall quality of exports, increase competitive advantage and consequently increase the volume and value of exports. The study recommends that COMESA should increase investments in innovation, strengthen and build institutions that support technology innovation in addition to the ongoing trade facilitation efforts.

The implementation of the African Continental Free Trade Area (AfCFTA) will affect EAC countries in terms of tax revenues, trade volumes and poverty. Estimates paint a mixed picture among specific EAC economies regarding the increase in demand following the reduction in tariffs, also known as trade effect. Burundi has the most considerable total trade effect of US$ 9.5 million, followed by Kenya with US$ 5.2 million and Uganda with US$ 4.2 million. On the other hand, Tanzania and Rwanda register adverse total trade effects. All the EAC countries incur tariff revenue losses; for instance, Kenya incurs US$ 14.2 million loss followed by Uganda with a US$ 13.5 million loss. Whereas Uganda and Burundi experience positive welfare effects, Kenya, Tanzania and Rwanda experience negative welfare effects. To benefit from the AfCFTA, EAC economies need to (i) increase competitiveness to mitigate the negative impact of trade diversion (ii) pursue policies that promote industrialisation and (iii) compensate for the customs revenue loss by leveraging the envisaged increase in the trade volumes and value for other taxes.