Advantages of trade in East Africa

The following are Advantages of trade in East Africa

  • Trade has stimulated the growth of industries which lead to economic diversification.
  • It leads to development of transport facilities, financial institutions like banks and insurance companies which lead to urbanisation.
  • Agriculture has been largely modernized which has ensured increased supply of food.
  • Trade has led to regional co-operation which has boosted peace in the region.
  • Government earns revenue through taxes and tariffs across borders which it uses for national development.
  • Trade has encouraged full resource utilisation which has ensured constant capital inflow.

  • Ideas have been exchanged through trade relationships which has boosted national development.
  • Government is able to earn foreign exchange through export trade which is used for developing infrastructures e.g. roads.
  • It has encouraged exploitation of natural resources even in remote areas which also leads to regional balance.
  • Through international trade, East Africa is able to acquire commodities that it doesnÂ’t produce e.g. drugs, cars and computers.

  • Expatriates are hired form developed who trained local people hence leading to skill acquisition by the locals.
  • Employment opportunities have been created through trade leading to improved standards of living.


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