EABC warns Kenya could miss out on AfCFTA benefits

07 Apr '24

2 min read

EABC warns Kenya could miss out on AfCFTA benefits

Pic: Adobe Stock

Insights

As per East African Business Council, trade imbalance between exports and imports to rest of the continent is one of the reasons that could deny Kenya the benefits of the African Continental Free Trade Area (AfCFTA).
Study by EABC says Kenya is better placed among other EAC Partner States to trade with rest of the continent based on complementarity index.

A recent study released by the East African Business Council (EABC) suggests Kenya risks missing out on the benefits of the African Continental Free Trade Area (AfCFTA), and one of the main reasons for it could be attributed to a trade imbalance between its exports and imports to other African nations.

The EABC, known for its advocacy on behalf of businesses in the East African Community (EAC) partner states, highlights this issue as a significant hurdle.

Despite Kenya’s reputation as a favoured market for businesses seeking to leverage the advantages of AfCFTA, the study expressed concerns regarding its trade dynamics with the rest of the continent.

Notably, Kenya’s position in comparison to other EAC partner states is analysed using a complementarity index, revealing it to be better situated for trade with the rest of Africa.

However, the study’s findings indicate that the trade imbalance poses a substantial risk to Kenya’s ability to fully capitalise on the opportunities presented by AfCFTA.

While Kenya stands out as a potential hub for regional trade within the EAC, the disparities in its trade flows could undermine its position in the broader context of continental trade integration.

As stakeholders consider strategies to maximise Kenya’s participation in AfCFTA, addressing the trade imbalance emerges as a critical priority.

By fostering a more balanced trade relationship with other African nations, Kenya can enhance its prospects of reaping the benefits of enhanced regional and continental trade cooperation.

Fibre2Fashion News Desk (DR)

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