Kenya plans to launch a National Export Strategy that will provide a framework for the country to reduce its trade deficit, officials have said.
Export Promotion Council (EPC) CEO Peter Biwott told Xinhua in a recent interview that the country’s trade deficit as of end of 2016 was approximately 8.5 billion U.S. dollars.
“The export strategy will guide Kenya to ensure that its trade deficit reduces by half in the next five years,” Biwott said during the Egypt Expo.
Currently Kenya’s leading exports comprise tea, horticulture, coffee as well as textile and apparel.
The strategy will prioritize exports to African countries that have an increasing demand for industrial and valued-added agricultural produce.
The export agency plans to boost exports by strengthening partnerships at national and county level with the private sector who are drivers of international trade.
The East African nation will roll out a raft of incentives to ensure that Kenyan goods are competitive in the international market. “Exporters will receive imports tax waivers for raw materials in order to enhance local production,” Biwott said.
EPC is currently reviewing existing bilateral and multilateral trade agreements in order to search for market opportunities.
The CEO said that Kenya is keen on enhancing its exports as it will lead to job creation as well as an influx of foreign exchange. In seeking to cut its trade deficit, Kenya will also borrow from the experiences of China which has achieved rapid economic transformation by adopting an export led development model. Enditem