Challenges abound as Africa seeks to penetrate global markets

Glenday and Ndii noted that “The export-dedicated MUB and EPZ platforms, targeting overseas markets, have been inconspicuous, with their combined cumulative share of exports over 1993-1998 amounting to just over one per cent of total exports. By contrast, exporters using the more flexible duty exemption programme have averaged 35 per cent of total exports, or over 50 per cent of the eligible processed and packaged exports, and over 75 per cent of exports of manufactures, largely targeted at the regional market.

Regional focus

These unfavourable macro-economic conditions have largely kept Kenya out of the labour-intensive manufacturing, notably garments, footwear and light assemblies.”

In 2008, Kenya exported 24 per cent of its goods to EAC countries and 32 per cent within the Comesa region.

This high regional orientation of Kenyan exporters is a recent development.

In the 1990-92 period, only 15 per cent of Kenya’s total exports were to Comesa, with figure rising above 30 per cent in the late nineties.

According to Glenday and Dr Ndii: “Besides the regional economic integration initiative, this trend is also a reflection of economic recovery and trade liberalisation in the region, hence an overall increase in import demand, alongside a down turn in the Kenyan economy, hence an added impetus for Kenyan firms to seek external markets.”