KNCCI’s Kiprono Kitonyi share insights on barriers hurting cross-border trade
There are barriers hurting cross-border trade in East Africa even as regional economies of countries across the region integrate; cross border trade is still faced by major challenges among them non-tariff barriers.
Wed, 19 Sep 2018 14:29:14 GMT
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AI Generated Summary
- The historical context of Africa's infrastructure and trade routes poses challenges to intra-African trade.
- The need to break down virtual walls created by borders and promote universal trade protocols.
- The impact of protectionism on African economies and the significance of leveraging comparative advantages for intra-African trade.
In a recent interview on CNBC Africa, Kiprono Kitonyi, the Chairman of the Kenya National Chamber of Commerce and Industry, shared valuable insights on the barriers that continue to hinder cross-border trade in East Africa. Despite the integration of regional economies across the continent, cross-border trade still faces significant challenges, particularly non-tariff barriers. Kitonyi emphasized the need for a proactive approach to address these issues and highlighted the importance of realizing the full potential of intra-African trade.
One of the key points raised by Kitonyi was the historical context of Africa's infrastructure and trade routes. He acknowledged that while progress has been made, there are still infrastructural constraints that limit the flow of goods and services within the continent. Kitonyi pointed out that Kenya's current exports primarily cater to Western markets, and there is a need to diversify and explore opportunities within other African countries. He expressed optimism that with the implementation of strategic measures, Kenya could significantly increase its contribution to intra-African trade.
Another crucial aspect discussed was the need to break down virtual walls created by borders and promote the free movement of goods and services. Kitonyi emphasized the importance of universal protocols that transcend national rivalries and facilitate smoother trade relations among countries that have ratified the Continental Free Trade Agreement. He acknowledged that while this process would require effort and time, it is essential for fostering economic growth and integration in Africa.
Furthermore, the interview touched upon the issue of protectionism and its impact on African economies. Kitonyi highlighted the rising trend of protectionist measures globally and emphasized the importance of enhancing Africa's economic capabilities to counter external threats. He stressed the need for a balanced approach that safeguards African industries while promoting fair trade practices.
Lastly, the conversation turned to China's role in Africa's infrastructure development and its implications for intra-African trade. Kitonyi acknowledged China's significant contributions to infrastructure projects in Africa but also underscored the importance of African countries leveraging their strengths and comparative advantages to boost intra-regional trade. He called for a strategic approach that prioritizes collaboration and mutual benefit among African nations.
In conclusion, Kiprono Kitonyi's insights shed light on the complex challenges and opportunities facing cross-border trade in East Africa. By addressing infrastructural barriers, promoting harmonized trade protocols, and fostering regional cooperation, African countries can unlock the full potential of intra-African trade and achieve sustainable economic growth.