Ethiopia and Kenya have formalized a new agreement aimed at transforming cross-border commerce and easing the flow of goods between the two East African neighbors.

The Simplified Border Trade Regime (STR), signed in the Ethiopian capital on Saturday, marks a significant shift in how the two nations manage their shared frontier. The deal is designed specifically to help small-scale traders by stripping away the complex customs bureaucracy that has historically pushed much of the local economy into the shadows.

For decades, many residents living along the border have relied on informal trade to make a living. Officials believe that by relaxing restrictive trade laws and simplifying paperwork, these traders can be brought into the formal economy. This transition is expected to provide local communities with more reliable access to essential goods while simultaneously making it harder for smugglers to operate.

Speaking at the signing ceremony, Ethiopia’s Minister of Trade and Regional Integration, Kassahun Gofe, described the move as a vital step toward sustainable development. He noted that the framework would not only foster economic growth but also bolster regional security by encouraging peaceful cooperation between border populations.

His Kenyan counterpart, Cabinet Secretary Lee Kinyanjui, echoed these sentiments, framing the agreement as a reflection of the "spirit of brotherhood" between the two nations. The deal follows months of technical negotiations held earlier this year in the Kenyan coastal city of Mombasa.

According to ENA, beyond the immediate economic benefits, the two governments view the agreement as a cornerstone for broader regional stability. By creating a regulated environment for trade, they hope to ensure that the wealth generated at the border directly improves the lives of those living on the front lines of the bilateral relationship.