Kenya plans exhibitions in key African markets to reverse a
steady slide in its exports to the continent, which is potentially
hurting growth in new jobs amid rising unemployment among graduate
youth.
steady slide in its exports to the continent, which is potentially
hurting growth in new jobs amid rising unemployment among graduate
youth.
Exports earnings from Africa have been falling
steadily since 2011, official statistics show, indicating local
factories have been losing their market share, partly due to import
substitution amid dwindling industrial competitiveness.
steadily since 2011, official statistics show, indicating local
factories have been losing their market share, partly due to import
substitution amid dwindling industrial competitiveness.
Latest
data collated by the Central Bank of Kenya (CBK) show exports in five
months through May fell to Sh91.88 billion from Sh93.05 billion during
the same period last year.
data collated by the Central Bank of Kenya (CBK) show exports in five
months through May fell to Sh91.88 billion from Sh93.05 billion during
the same period last year.
The sustained drop in the
last eight years is despite the country being a member of the six-nation
East African Community (EAC) and 19-member Common Market for Eastern
and Southern Africa (Comesa).
last eight years is despite the country being a member of the six-nation
East African Community (EAC) and 19-member Common Market for Eastern
and Southern Africa (Comesa).
Export Promotion Council (EPC), the state-owned agency charged
with developing and promoting exports, said it was planning to promote
Kenyan-made goods in countries such as Rwanda, Democratic Republic of
Congo, Mozambique, Ghana, Nigeria, Ethiopia, Egypt and Sudan.
with developing and promoting exports, said it was planning to promote
Kenyan-made goods in countries such as Rwanda, Democratic Republic of
Congo, Mozambique, Ghana, Nigeria, Ethiopia, Egypt and Sudan.
That follows a similar one that was held in Tanzania earlier in the month during Dar es Salaam International Trade Fair.
“For
Kenya to achieve an increase of the manufacturing sector’s contribution
to the gross domestic product from 8.4 per cent (in 2017) to 15 per
cent (in 2022), Africa remains the single most lucrative market for her
exports,” EPC chief executive Peter Biwott said in a statement.
Kenya to achieve an increase of the manufacturing sector’s contribution
to the gross domestic product from 8.4 per cent (in 2017) to 15 per
cent (in 2022), Africa remains the single most lucrative market for her
exports,” EPC chief executive Peter Biwott said in a statement.
“There
is thus the need to aggressively pursue promotional activities in the
EAC as well as the entire continent with a view to take advantage of
market access opportunities.” Kenya’s exports to Africa in the
five-month period to May, however, accounted for 34.41 per cent of
Sh267.02 billion total exports earnings in the period, the CBK data
shows.
is thus the need to aggressively pursue promotional activities in the
EAC as well as the entire continent with a view to take advantage of
market access opportunities.” Kenya’s exports to Africa in the
five-month period to May, however, accounted for 34.41 per cent of
Sh267.02 billion total exports earnings in the period, the CBK data
shows.
Intra-Africa
trade remains at a lowly 10 per cent, meaning African countries trade
more with other continents such as Europe than they do among themselves.
trade remains at a lowly 10 per cent, meaning African countries trade
more with other continents such as Europe than they do among themselves.
The
country is championing a plan to remove trade barriers among African
countries to encourage movement of goods, services and labour through
African Continental Free Trade Area (AfCFTA,) which will create a market
of at least 1.2 billion people upon ratification.
country is championing a plan to remove trade barriers among African
countries to encourage movement of goods, services and labour through
African Continental Free Trade Area (AfCFTA,) which will create a market
of at least 1.2 billion people upon ratification.
Kenya
and Ghana on May 10 became the first countries to ratify the AfCFTA
deal which requires a minimum of 22 countries to be operationalised.
and Ghana on May 10 became the first countries to ratify the AfCFTA
deal which requires a minimum of 22 countries to be operationalised.
The
country on June 8 also led from the front by presenting documents
ratifying the proposed Comesa-EAC- Southern African Development
Community (SADC) tripartite free trade area to Comesa secretary-general
Sindiso Ngwenya.
country on June 8 also led from the front by presenting documents
ratifying the proposed Comesa-EAC- Southern African Development
Community (SADC) tripartite free trade area to Comesa secretary-general
Sindiso Ngwenya.
The Comesa-EAC-SADC trade agreement,
reached in June 2015 bringing together 27 Eastern, Central and Southern
Africa’s countries, requires a minimum of 14 countries to ratify in
order to come into force.
reached in June 2015 bringing together 27 Eastern, Central and Southern
Africa’s countries, requires a minimum of 14 countries to ratify in
order to come into force.
