In 2017, 37 per cent of Kenya’s exports went to an African country, down from 40 per cent the previous year. This caused a near flat growth in export earnings, particularly from East Africa which accounts for more than half of Africa’s total trade with Kenya.These declining trade levels have spurred interest in the establishment of policies and structures that can boost intra-Africa trade. Read more. Source | Business Daily
Cut flower business last year shrugged off prolonged electioneering to post a record Sh82.2 billion export earnings representing a 20 per cent rise from Sh70.8 billion in 2016.The all-time high earnings were attributed to the sale of 159,961 metric tonnes compared to 133,668 tonnes shipped to European markets in 2016.
Kenya Flower Council (KFC) said the labour-intensive subsector witnessed heavy investments in new farms and expansion driven by tax incentives for key imported inputs. Read more. Source | Daily Nation
East African countries could lead the world in growth in consumption of tea during the next decade, even as they occupy top positions in exports of the commodity. Estimates by the Food and Agricultural Organisation show that Rwanda will lead in growth at nine per cent followed by Uganda at five per cent and Kenya at 4.4 per cent. Read more. Source | East African
Ethiopian Airlines had made it clear in the early days of February 2018 that it seeks to launch directs flight to Chicago this year to bridge the gap of travelers between the two continents. The Ethiopian has been on scintillating form, fending off its competitors in Africa and establishing its brand as the top-notch airline in the continent. Kenya Airways, among other airline companies have not been able to keep the pace of the competition in the aviation industry giving the Ethiopian too much credit and accolades for its hard work. Read more. Source | The Exchange
AGOA 101 Kenya. The USAID Hub helps East African businesses take advantage of the African Growth and Opportunity Act (AGOA). AGOA allows for duty-free export of over 6,000 products. This guide outlines the step-by-step process that Kenyan businesses should take to export to the United States of America (U.S.A.) duty-free through AGOA and gives a general overview for the export of all AGOA products from Kenya. It provides additional information on the export of four high-demand, high-value sectors, namely textiles and apparel; coffee; nuts and oil crops; and cut flowers. Although exporting can be a challenging process, it can also be profitable for the individual or company that successfully complies with the steps. Exporters must follow two sets of requirements:
1. Kenyan laws and regulations that govern the export process, and
2. Laws and regulations that govern the destination country’s imports, in this case, the U.S.A.
Regulations also vary according to the product being exported; exporters must research to ensure that their product meets the necessary requirements for export.
This guide assumes that the exporter or potential exporter has already conducted the necessary market research, and is ready to export. Before proceeding, exporters must identify the correct tariff code and its eligibility for dutyfree export under AGOA. This status can be established by referring to https://agoa.info/about-agoa/products. Insert the product name, search for the correct tariff code, and confirm its AGOA status - denoted by the letter “D” in the AGOA indicator column. Exporters should familiarize themselves with U.S.A. industry standards and product specific regulations that may require additional documentation and procedures.
AfCFTA is a statement by Africans saying that they want to take control, own and have a view of their own economic relationships, and as a continent, have slightly more power regarding their trade. Countries want to exploit these benefits to grow faster and create jobs.
AGOA, for instance, was opened to 49 countries, and though 35 tried to take advantage of it, only seven are benefiting. The AfCFTA will help with these negotiations and tell our international partners that they need to bring more to the table, not less. Read more. Source | East African
US firms are among exhibitors set to debut in the seventh edition of the International Flower Trade Expo (Iftex) in Nairobi, thanks to the impending launch of direct flights to US in October.
Iftex says the merchants want to take advantage of the flights by Kenya Airways to New York to cut the long process of getting produce through Amsterdam.The expo to be held next month comes at a time Kenya is trying to diversify its market from Europe to Asian countries seen as a potential market for cut flowers. Read more. Source | Business Daily
In an effort to assist the economies of sub-Saharan Africa and to facilitate trade between the region and the United States, the U.S. government initiated in the year 2000 the African Growth and Opportunity Act, or AGOA. Under the Act, regional trade hubs, or technical assistance centers, were created. The USAID Trade and Investment Hubs, located in Ghana, South Africa and Kenya, assist, enhance and broaden the flow of trade between the United States and Africa.
The hubs, which are managed by the U.S. Agency for international Development, bring together African and U.S. businesses to attract investment to Africa and promote two-way trade between the U.S. and African countries, creating jobs and generating income for all of us. Read more. Source | Voice of America
Rwanda Standards Board, National Industrial Research and Development Agency (NIRDA), Rwanda Agriculture Board and skins buyers are currently working on increasing returns from the sub-sector.
The agencies are currently in the process of setting standards to determine quality of hides and skins by next month. According to officials, the new standards and regulations will, among other things, outline ways of treatment of hides and skins along the value chain from livestock keepers to slaughter houses and tanning firms. Read more. Source | New Times
East African country Rwanda recorded its first highest roasted beans shipment to the United States of America that generated $77,000 for the Rwandan government. The foreign earnings recorded a high due to its value to the country other than what the country used to export in the previous years. Read more. Source | The Exchange