Kenya Trade Network CEO how the AfCFTA will help accelerate growth

Countries within Eastern Africa are making significant strides in enhancing electronic commerce to boost intra-Africa trade, currently standing at a mere 17%. In a recent CNBC Africa interview, the Acting CEO of the Kenya Trade Network, David Ngarama, shed light on the potential impact of the African Continental Free Trade Area (AfCFTA) on the region. Ngarama highlighted Kenya's active involvement in testing trade arrangements under the AfCFTA, such as the Gated Trade Initiative, aimed at expanding market access for the country. Through this initiative, Kenya has begun exporting products like batteries, tea, coffee, processed meat, and meat products to other African nations, paving the way for increased trade opportunities. The digitization of trade processes, particularly through the electronic single window system, has significantly streamlined import and export procedures in Kenya. Ngarama noted that the automation of trade processes has surged from 14% to 94% post-implementation of the system, leading to cost reductions and faster trade transactions. This transition towards paperless trade has facilitated seamless processing of trade documentation, ultimately benefitting importers and exporters. Furthermore, Ngarama emphasized the strategic importance of Kenya's Lamu port, the country's second-largest port, in fostering intra-Africa trade growth. Positioned to serve landlocked countries like Ethiopia and South Sudan, the port's infrastructure accommodates large vessels, driving down cargo transportation costs and enhancing trade efficiency. The Lamu port is a crucial component of the Lamu Port-South Sudan-Ethiopia Transport Corridor, representing a pivotal project in Kenya's vision for regional trade expansion.