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.
