Skip to content
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 doesnt 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.