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

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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