Describe the steps taken by any one east African country (Kenya) to develop her import and export trade since independence.
Since gaining independence in 1963, Kenya has implemented various strategies to develop its import and export trade. Here are some key steps:
Trade Policy Evolution
Import Substitution (1960s-1980s): Initially, Kenya adopted import substitution policies aimed at reducing dependency on imported goods by promoting local manufacturing. This period saw the establishment of industries producing consumer goods.
Structural Adjustment Programs (1980s): In response to economic challenges, Kenya implemented Structural Adjustment Programs (SAPs) which included trade liberalization measures. These reforms reduced tariffs and non-tariff barriers, encouraging international trade.
Export-Oriented Policies (1990s): The focus shifted to export promotion, with policies aimed at enhancing the competitiveness of Kenyan products in international markets. This included incentives for exporters and the establishment of Export Processing Zones (EPZs).
Vision 2030 and National Trade Policy (2004-present): Kenya’s Vision 2030 development blueprint emphasizes transforming the country into an export-led economy. The National Trade Policy aims to enhance export competitiveness through value addition and market diversification.
Infrastructure Development
Transport Infrastructure: Significant investments have been made in improving road, rail, and port infrastructure to facilitate trade. The construction of the Standard Gauge Railway (SGR) has improved connectivity between the port of Mombasa and inland regions.
Port Development: Upgrading and expanding port facilities, particularly at the Port of Mombasa, has been crucial in handling increased trade volumes.
Trade Facilitation
Customs Modernization: Modernizing customs procedures and adopting electronic systems have streamlined the import and export processes, reducing delays and costs.
Trade Agreements: Kenya has entered into various bilateral and multilateral trade agreements to enhance market access for its products. Membership in regional trade blocs such as the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) has facilitated easier access to regional markets.
Export Promotion
Diversification: Efforts have been made to diversify export products beyond traditional commodities like tea and coffee. Kenya has expanded into exporting horticultural products, textiles, and other non-traditional goods.
Value Addition: The government has encouraged value addition to raw materials before export, increasing the market value of Kenyan products.
Export Processing Zones (EPZs): Establishment of EPZs has provided incentives for businesses to produce goods for export, including tax breaks and infrastructure support.
Institutional Support
Kenya Export Promotion and Branding Agency (KEPROBA): KEPROBA was established to promote and support Kenyan exports through market research, trade fairs, and capacity building for exporters.
Financial Support: The government has provided financial support and incentives to exporters, including export credit guarantees and subsidies.
These steps have collectively contributed to the growth and development of Kenya’s import and export trade, making the country more competitive in the global market.
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Thanks
Dr. Bbosa Science
