Steps taken to encourage export trade and reduce import trade in East Africa

The following are steps taken to encourage export trade and reduce import trade in East Africa

  • The three countries are building manufacturing industries (export promotion industries) to enable them to stop importing manufactured goods.
  • Heavy duties (taxes) are levied on imported manufactured goods to discourage their demand on the local market as well as protect the local infant industries.
  • Foreign investors are attracted to set up big industries in the region by giving them tax holidays.
  • Tax holidays are also given to infant industries to enable them to start producing goods locally.
  • Formation of regional blocks e.g. East African Community (E.A.C) to encourage cross-border trade without any restrictions.
  • Carrying out extensive market research to diversify the markets and create more demand abroad for locally made items.
  • Increased advertisements through international media to create awareness about East Africas products which increases demand.
  • Ensuring political stability has attracted more foreign investors to set up industries in East Africa.
  • Encouraging economic diversification by the government to reduce dependence on agriculture and encourage industrial development.

N.B: the three countries are trying their best to develop both visible trade and invisible trade.

  • Visible trade is the trade in imports and exports of tangible products like agricultural and manufactured goods.
  • Invisible trade refers to the trade in services such as tourism, health, labour and education.


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