Opinion & Analysis
Reforms needed to fully exploit EAC integration growth opportunities
The fact that manufacturers will now be able to move their goods freely between the five partner states without experiencing any import duties or cross-border trade barriers is welcome for a sector which has been shrinking over the years. Photo/FILE
Posted Thursday, March 11 2010 at 00:00
Additionally, if Kenya and the private sector are to reap real benefits from the Customs Union and regional trade, there is need for the governments to invest in more and better roads, railways and power stations which will help reduce the cost of doing business, currently a major hindrance to investment in Kenya.
The private sector both in Kenya and within the region has the potential to unlock and increase trade volumes within the East African region which currently stands at a mere 13 per cent.
This is a pale comparison to Europe which stands at 60 per cent and Asia at 40 per cent.
With the coming into effect of the EAC Customs Union, the trend of intra-EAC trade is likely to change but until correct measures are put in place, the movement of goods within the EAC Community will continue being constrained by cross border controls.
As mentioned earlier, the Customs Union and opening up of trade within the region is the only hope for the five East African nations whose development has been lagging for quite a while.
Maina is the CEO of the Kenya Association of Manufacturers.
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