Kenya’s manufacturing sector is set to get a new growth stimulus
when an Africa-wide trade pact that could provide access to a big
market is implemented.
In June, African leaders signed a
26-nation pact — the Tripartite Free Trade Agreement (TFTA) — to create
a common market covering half of the continent.
As the
regional trade integration agenda is implemented, Kenya is expected to
cash in on the combined GDP of over $1-trillion in the new bloc.
“The
TFTA and the Continental Free Trade Area agreements provide an
opportunity for Kenya to become a manufacturing hub for Africa and this
needs to be harnessed,” said Kenya Association of Manufacturers chief
executive Phyllis Wakiaga.
632 MILLION PEOPLE
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 TFTA.
The initiative is expected to create a
26-member trade zone spanning from Egypt to South Africa, and creating a
market of about 632 million people, equivalent to over half of the
continent’s population.
The group notes that with 41.2
per cent of Kenya’s exports destined for TFTA member states in 2011,
compared to the 13.4 per cent share of imports from the same zone, Kenya
enters the bloc from a position of relative strength.
In
May, President Uhuru Kenyatta urged African countries to relax rules on
movement of people and goods between member states to increase trade.
Only 12 per cent of Africa’s trade is between countries.
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