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The East African : October 26th 2013
The EastAfrican BUSINESS OCTOBER 26 - NOVEMBER 1, 2013 South Africa is an advanced economy with established manufacturing base that is able to supply a variety of goods that are not available across the region.” Vimal Shah, chairman of the Kenya Private Sector Alliance. tors coupled with a weakening currency have curbed production. Exports decreased by 7.6 per cent in August to 70.7 billion rand ($7.2 million), as imports decreased by 0.13 per cent. Experts said South Africa has positioned itself to exploit the under developed manufacturing industry in Kenya. “South Africa is an advanced economy with established manufacturing base that is able to supply a variety of goods that are not available across the region,” said Mr Shah. Customs data shows that Ken- yans mainly imported industrial supplies and refined petroleum products. Saudi Arabia, which mainly supplies murban crude oil, saw its share of the market drop by almost a half to Ksh21 billion ($247 million) in the first six months to June 2013, from Ksh41 billion ($482 million) in the same period last year as international prices shot up reducing demand in the country Kenya dynamic in region The trade figures also showed Uganda maintained its lead as Kenya’s top export destination in the six months to June although the figures declined compared with the same period last year. Uganda bought goods worth HOW CHINA FARES IN THE REGIONAL MARKET Kenya as China’s market UAE’s exports to Kenya rose slightly to Ksh85.5 billion ($982 million) from Ksh83.2 billion ($967 million) in the seven months to December 2012.China exported goods worth Ksh95.5 billion ($1.1 billion) to Kenya for the first seven months of this year. In the first seven months of 2012, China’s exports to Kenya were worth Ksh95.1 billion ($1.1 billion) Tanzanian trade with China During the year 2012, China exported goods worth $1.1 billion to Tanzania, up Exports to Kenya from $986 million in 2011. Tanzanian exports to China dwindled from $632 million to$534.5 million. Uganda imports more from Kenya Uganda’s imports from China rose to $41 million per month between January and July 2013, rising 11 per cent during the same period. Uganda’s imports from Kenya grossed $336 million in the first seven months of 2013, while Egypt sent exports worth $25.5 million to Uganda, making Kenya Uganda’s biggest source of imports within the Comesa bloc Ksh27 billion ($318 million) in the six months to June, down from Ksh30.2 billion ($355 million) last year. Pakistan more than doubled its imports from Kenya to take the second position at Ksh23 billion ($270 million) from Ksh11 billion ($129 million) over the same period last year. Kenya’s main exports are food and beverages. However, also exports industrial supplies, fuel and transport equipment. Like the other East African Community countries, Kenya has been keen to grow regional trade despite the existing non-tariff barriers. Food and beverages category accounted for highest category of exports share in the six months to June at 45.37 per cent, the KNBS data shows. EAC Integration Secretary Barrack Ndegwa said barriers by governments would negatively affect EAC’s mission to achieve free movement of goods and services slowing growth of trade among the EAC counterparts. “Each country has its own non-tariff barriers; we need to move to the implementation period to enhance free movement of goods and services and grow trade amongst ourselves,” he said. Kenya’s exports to Tanzania fell to Ksh17 billion ($200 million) from Ksh20 billion ($235 million) in the six months to June 2013 compared with the same period last year to put the EAC member state in the fourth position. Egypt and UAE were fifth and sixth respectively. Additional reporting by Joseph Mwamunyange Source KNBS 45 Goods to Uganda awaiting clearance at the Busia border. Picture: File Uganda’s impo≥t deficit on the ≥ise By BERNARD BUSUULWA The EastAfrican THE VALUE of Uganda’s imports fell by 6.1 per cent to $1.9 billion between January and July this year, compared with the same period last year according to data from Bank of Uganda. Economists and analysts at- tributed the drop in imports to a slowdown in trade as a result of jitters around Kenyan election early this year as well as pressure from growing inflation. But the country’s current ac- count deficit rose sharply to $223.79 million in July compared with $197.76 million posted in the previous month, a sign of underlying weaknesses in export turnover and currency appreciation in major import zones. Private sector imports related to investment projects accounted for 72.3 per cent of all imports recorded in the first seven months of 2013, the data shows, but details on the respective share of imports among various sectors is not available. Fears of post-election violence pegged to Kenya’s presidential poll held on March 4 reportedly compelled several traders to postpone importation. Consequently, import activity dwindled between February, March and April but picked up thereafter, following a fairly peaceful The peaceful aftermath of the election has seen some recovery in imports but not enough to reverse the losses suffered at the start of the year.” Kenneth Egesa, director of Statistics, Bank of Uganda’s election process observers said. “The commissioning of new infrastructure projects like Karuma and Isimba power dams plus accelerated progress on the Southern Express Highway could revive strong growth in import volumes due to a surge in demand for construction related materials,” said Alex Nakajjo, a trade consultant in Kampala. A noticeable rebound in infla- tion patterns blamed on poor harvests and rising food prices also affected demand for imported items between January and July 2013. Runaway inflation Inflation rose to eight per cent last month compared with 7.3 per cent in August as supply of popular foodstuffs like matooke, maize and beans fell. “The election fever that hit Kenya at the beginning of this year led to a marked decline in imports between February and April. The peaceful aftermath of the election has seen some recovery in imports,” said Kenneth Egesa, director for statistics at BoU. Some analysts attribute the decline in imports to delayed financial releases from Treasury and the backlash of currency appreciation in major import markets. “Late financial releases by government during the first half of 2013 affected many government suppliers who were unable to execute import orders for a few months. Appreciation trends evidenced in some foreign currencies have equally raised prices of some imports and subsequently eroded demand in the domestic market. Besides, the higher inflation experienced of late has also cut demand for imported items,” said Lawrence Othieno, a trade expert.
October 21st 2013
November 3rd 2013