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Kenya continues to show other African countries the blueprint for intercontinental trade

March 29th 2023, 7:40:05 pm
AFCTA-1
  • Kenya's trade surplus hit a new high for the first time in six years. 
  • The gap between exports and imports increased to KSh88.3 billion ($667.9 million) last year from KSh80.49 billion ($608.82 million) the previous year.
  • A train linking Tanzania to Kenya is presently in the works, and this transport network is being designed to reduce logistics and trade tariffs between both nations. 

Kenya's trade surplus with Africa has increased at the quickest rate in six years, bolstering the country's renewed demand for the continent's commercial blocs to be integrated.

The gap between exports and imports increased to KSh88.3 billion ($667.9 million) last year from KSh80.49 billion ($608.82 million) the previous year, the largest number since 2016 when it reached KSh94.41 billion ($714.12 million).

According to preliminary figures from the Central Bank of Kenya (CBK), Kenyan merchants earned KSh355.43 billion ($2.69 billion) from exports to African nations in 2022, while spending KSh267.13 billion ($2.02 billion).

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This comes as Kenyan President William Ruto has asked Kenya's Trade Cabinet Secretary Moses Kuria to take the lead in pressing nations in Eastern, Central, and Southern Africa to sign and ratify a proposed tripartite agreement.

Since June 2015, the proposed free trade zone for East African Community (EAC), Common Market for Eastern and Southern Africa (Comesa), and Southern African Development Community (SADC) countries has been on the table.

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Alongside these seven other countries, Ghana, Cameroon, Rwanda, Egypt, Mauritius, and Tunisia, Tanzania, Kenya is making a massive push to increase trade within African borders under the African Continental Free Trade Agreement (AfCFTA).

Recently, it was reported that Ghana was looking to take advantage of the African Continental Free Trade Agreement, by bolstering its trade partnership with Kenya.

The West African state disclosed plans to establish an Export Trade House (ETH) in Kenya as part of the measures to promote trade relations between the two countries, despite the fact that trade relations between West African and East African countries have historically been low.

Tanzania too has been making huge strides with inter-continental trade. Recently, the government of Tanzania scheduled March as the deadline for gathering feedback on the items that will be traded under the African Continental Free Trade Agreement (AfCFTA) beginning in July of this year.

Not to mention the fact that a train linking Tanzania to Kenya is presently in the works, and this transport network is being designed to reduce logistics and trade tariffs between both nations.

Chinedu Okafor
Chinedu is a Senior Reporter at Business Insider Africa with 5 years experience creating profoundly engaging and insightful content.

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