By BRIAN NGUGI
Kenya’s manufacturing sector is betting big on the proposed Africa-wide trade pact that will provide access to what has been described as the biggest market in the world.
Nigeria became the latest member to sign the landmark agreement, which aims to increase trade among African countries. With Eritrea as the only African country not to be part of the trading bloc, the potential for the regional initiative to transform the economies of the member states looks pretty real.
According to the Oxford Business Group, Kenya’s exports are projected to increase by over Sh10.2 billion ($100 million) following full implementation of the free trade pact.
The group notes that with 41.2 per cent of Kenya’s exports destined for free trade pact member states in 2011, compared with the 13.4 per cent share of imports from the same zone, Kenya enters the bloc from a position of relative strength. Only 12 per cent of Africa’s trade is between countries, signifying the huge promise for participating countries.
Kenyan manufacturers are banking on the agreement to take the lead in producing competitive products in terms of quality and prices. Read more…
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