Browsing: EAC exports

• The influx of used clothes from the west in effect affects the development of textile industries in the EAC
• Five years later, a new administration, Covid-19 and the Russia-Ukraine war not to mention a stronger China economy, the US may reconsider EAC state’s position.
• EA States have 2 years to consider if they want AGOA renewed

In 2015, all major economies in East Africa, Kenya, Uganda, Tanzania, Rwanda and Ethiopia proposed to ban the importation of second-hand clothes but the US would have none of it.

The intention was good, even noble: Banning second-hand imports would strengthen the domestic textile industry which would create jobs and other positive ripple effects.

“The US claimed this proposal goes too far and violates the African Growth and Opportunity Act (AGOA), which aims to expand trade and investment on the continent,” the media reported.

Once the US pulled the AGOA card, the East African …

• The private sector in the community has been urged to drive the buy and build East Africa initiative
• Foreign Direct Investments (FDI) in the EAC dropped by 43% to USD. 4.9 billion in 2020
• Jobs declined by 2%, wiping out the gains made in previous year

Trade between East Africa Community countries dropped by 5.5% to USD. 5.9 billion in 2020 due to COVID-19 while exports from the bloc to the world hit 16.2 billion in 2020 a 3% boost in comparison to  2019.

This is according to the East Africa Business Council CEO John Bosco Kalisa who urged the private sector in the community to drive the buy East African, build East Africa narrative.

He added that the campaign is central in driving the economic recovery agenda for the EAC bloc amid COVID-19 pandemic.

He spoke during a webinar on EAC Trade & Investment Recovery amidst COVID-19 organized by …

• The AfCFTA agreement will boost East Africa’s manufactured exports to the rest of Africa
• Textiles & clothing exports will increase by 100% under the agreement
• Experts have recommended the rolling out of private sector sensitization campaigns on the AfCFTA

East African Community (EAC) partner states have been urged to finalize and submit tariff offers under the African Continental Free Trade Area agreement (AfCFTA) to enable the bloc to tap into the 1.3 billion continental markets with a Gross Domestic Product of USD 3 trillion.

In a statement, the East African Business Council Vice Chairman Denis said the AfCFTA is set to boost East Africa’s manufactured exports to the rest of Africa.

In particular, textiles & clothing exports will increase by 100%, heavy manufacturing by 63%, light manufacturing by 61%, processed food by 54% while livestock & meat products by 39%.

Karera said that the political will to duly implement the …

East Africans should brace themselves for an increase in the cost of living as households and businesses pay more for goods and services.

Regional currencies are facing increased pressure against the dollar as increasing debt levels and increased servicing obligations threaten to wear down foreign exchange reserves, market data shows.

The projected drop of regional currencies is mainly attributed to the growing debt servicing obligations for foreign currency-denominated debts. To pay off external creditors, it requires a drawdown of the country’s foreign reserves.

According to analysts at AIB Capital, as a pick-up in consumer demand increases imports, the Kenya shilling is expected to further depreciate against the dollar. The country’s exports are likely to remain relatively uncompetitive therefore, this will lead to an increase in the current account deficit.

“We expect the shilling to gradually depreciate against the dollar but remain relatively unchanged against the euro and pound,” said AIB.…