NAIROBI, (Xinhua) -- Kenya
stands to gain significantly from stronger economic growth of regional partners,
as it can take advantage of increased demand from these economies, says a report
launched on Tuesday by an international accountancy and finance body.
The report by
the Institute of Chartered Accountants in England and Wales (ICAEW) finds that
Nairobi is positioned to take advantage of rising demand for manufactured goods,
while the country’s location and relatively developed transport infrastructure
will allow Kenya to act as the gateway into the East Africa region.
Africa Community (EAC)’s infrastructure development strategy still largely
depends on improving the efficiency of imports to the region through Mombasa,
from which Kenya can be expected to gain,” the report says.
reveals that EAC members accounted for a fifth of total Kenyan exports in 2016.
the report, the African continent accounted for 41 percent of Kenya’s exports in
2016 while Europe and Asia each accounted for approximately a quarter of total
finds that Uganda held the position of Kenya’s largest single export destination
accounting for 11 percent of total exports during 2016.
commissioned by ICAEW and produced by partner and forecaster Oxford Economics,
provides a snapshot of the region’s economic performance.
focuses specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast,
South Africa and Angola.
African nation has been relatively successful in diversifying its exports and
building up a strong manufacturing base. Agricultural products such as tea and
flowers made up the bulk of exports.
“As the most
sophisticated economy in East Africa, it stands to gain considerably from deeper
regional economic integration, benefiting from strong economic growth in
regional peers, exporting both goods and services to these economies,” says the
whilst the country has an advantage in terms of value-added compared to regional
African peers, this story is not replicated beyond Africa.
tea and flowers are largely determined by factors such as global commodity
prices and domestic weather conditions (affecting production), and not
necessarily the state of world trade.
The EAC is
considered the most progressive trade bloc in Africa. Collaboration on regional
infrastructure has reached a level rarely seen on the continent with
construction of the 26 billion U.S. dollars Lamu Port - Southern Sudan -
Ethiopia Transport (LAPSSET) corridor underway.
Customs Territory (SCT) system will take effect across the EAC from July 31,
facilitating trade between member states by electronically connecting countries’
custom clearance systems.
program involving certain goods and entry points has generated positive results,
and if implemented successfully, the SCT could significantly stimulate trade in
the region by reducing the cost of doing business.
bloc is not without its challenges as the United Nations Economic Commission for
Africa (UNECA) recently cautioned against the signing of the Economic
Partnership Agreement (EPA) between the EAC and the European Union (EU) in its
current form, which does not bode well for the EPA’s implementation.
to lose the most without the agreement as it is not classified as a
least-developed country, it would not receive duty-free and quota-free access
under the EU’s Everything-But-Arms initiative.