Professional services matter fordevelopment in East Africa. Business services, includingprofessional services, are among the most dynamic servicessectors; and are a key input for other sectors. Greater useof professional services by East African firms is associatedwith higher labor productivity. But there is a large gapbetween the potential contribution these services could makeand the meager contribution they make today. Nationalmarkets for professionals and professional services in EastAfrica remain underdeveloped, whereas regional markets arefragmented by restrictive policies and regulatoryheterogeneity. An effective reform agenda will requirepolicy action in four areas: education, regulation ofprofessional services, trade policy, and labor mobility atboth the national and international levels.