Subscribe to our newsletter Trade & Investment News Read Our Blog HUB FACT SHEETS Newsletters

East African trade and investment news

Manufacturing for huge give back economy

Published on April 25, 2018

It is believed that priority to agriculture in the short and medium term will create a big domestic market for industry and supply food and raw material to industry. This is anticipated to strengthen the inter-sectoral linkages between agriculture and industry and will lead the economy to the development of industry. The problem, however, is that the urban sector of the economy is somehow ignored and the focus on agriculture has not even emancipated peasants from the havoc of periodic famine. Read more. Source | Ethiopian Herald

How Rwanda’s largest climate resilience investment is taking shape

Published on April 25, 2018

Weather related disasters such as flooding and landslides affecting the livelihoods of residents of Gicumbi District, Northern Province could soon be curbed following the launch of a $32.8m initiative funded by the Green Climate Fund.

The initiative is a partnership with the Ministry of Environment and aims at building resilience of small-holder farmers and communities vulnerable to climate change who have often lost their harvest due to changing weather patterns. Read more. Source | New Times

JKIA expands cargo capacity to handle increasing exports

Published on April 25, 2018

The construction of a new transit shed at the Jomo Kenyatta International Airport (JKIA) is ongoing in a plan aimed at expanding the facility’s cargo handling capacity by more than 10 per cent.

The expansion will take the number of transit sheds to six. The move has been triggered by the rising air cargo competition from Ethiopia and South Africa, as well as the rise in exports, especially horticulture.A report released last week by the Fresh Produce Consortium of Kenya (FPC Kenya) shows that the sales of fresh produce increased to reach Sh115 billion in 2017, from Sh101.5 billion in 2016, with flower exports contributing Sh82.24 billion, up from Sh70.83 billion the previous year. Read more. Source | Business Daily

East Africa growth prospects strong – World Bank report

Published on April 23, 2018

Economic growth in Africa rebounded, but “not fast enough” in recent past, according to Africa’s Pulse, a bi-annual analysis of the state of African economies conducted by the World Bank, released on Wednesday in Washington.

The report, which was released during the World Bank Spring Meetings, however shows that, “Growth prospects have strengthened in most of East Africa, owing to improving agriculture sector growth following droughts and a rebound in private sector credit growth. In Ethiopia, growth will remain high, as government-led infrastructure investment continues.” Read more. Source | New Times

Sonia Hoque (ODI) | Making Firms Work Series | How to create African factory jobs responsibly: from A to Z

Published on April 19, 2018

A to Z Textile Mills Ltd (A to Z) is a remarkable example of how African manufacturing can flourish. A locally owned, diversified, vertically integrated firm with over 7,000 employees, it produces and supplies a large volume and range of goods to domestic markets, and exports internationally. The firm also takes substantial social and environmental responsibility. A to Z has its own recycling plant, housing, childcare and daily meals for its predominantly female workforce, and demonstrates how large manufacturing firms can make a significant development impact. Read more. Source | Supporting Economic Transformation

Why Investing in Manufacturing Makes Economic Sense

Published on April 18, 2018

Manufacturing has the potential to spark productivity more than any other sector in the economy. It is important to note that, contrary to common perceptions, manufacturing does not ‘compete’ with other industries such as the services sector, but rather, it is an ‘enabler’ for productivity for all other sectors.

For starters, it has been proven that, as long as the share of manufacturing to the GDP is rising, similarly, the per capita growth rate (which reflects average incomes), continues to rise. This is what economists have referred to as, structural change bonus. Read more. Source | The Exchange

Revamping port can add 2pc to GDP, says report

Published on April 18, 2018

Creating sufficient capacity ahead of demand at the Mombasa port and proactive investment in expansion and upgrade of roads and rail linking the facility to hinterland will grow Kenya’s economy by at least two per cent. This is according to a new report by PricewaterhouseCoopers (PwC).

The report says the increase in investment in the port and landside regional transport system will also redirect global cargo flows into East and Central Africa, attracting more giant shipping lines. Read more. Source | Business Daily

Argo-processing in saving, generating hard currency

Published on April 17, 2018

Ethiopia is a country blessed with bountiful natural resources like arable land and water, if effectively harnessed, which will help come up with bumper harvest. 

Also if well processed, the agricultural yields could go a long way in curtailing the outflow of the much-sought-after hard currency. The resources could as well help in fetching the same. Read more. Source | Ethiopia Herald

Improving small farm holders livelihoods

Published on April 17, 2018

As agriculture is the foundation of nation’s economy accounting for 43 percent of the gross domestic products, 80 percent of exports and 83 percent of the total employment, working on accessing farmers with various technology and professional seed supply is crucial, according experts in the field. 

Dire Dawa Agriculture bureau extension expert Mohammad Abdullahi said that areas with short rainfall season ought to be provided with necessary agricultural technologies. Read more. Source | Ethiopian Herald

EAC tea exports increase

Published on April 17, 2018

Regional tea exports at the Mombasa Auction have increased, according to the East African Tea Export Auctions report released last week. All the five East Africa member states including Kenya, Uganda, Rwanda, Burundi, Tanzania and Mozambique registered an increase in exports at the Tea Auction held between April 9 and April 10. 

The increase, the report says, was occasioned by growth in demand and a rise in crop production. 
According to the report more than 7.4 million kilogramme bags were sold up from 6.4 million bags sold around the same time last year. This indicates an increase of 8.2 per cent. Read more. Source | Daily Monitor