Nigeria, Kenya and South Africa top list of countries supporting intra-African trade

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Nigeria, Kenya and South Africa top list of countries supporting intra-African trade

NAIROBI, Kenya- African intra-A trade is set to grow as most continental countries now trade with each other. This is according to a new survey by the Pan African Private Sector Trade and Investment Committee (PAFTRAC).

The PAFTRAC survey also reveals that Nigeria, Kenya and South Africa are among the top leading states in promoting intra-African trade.
The latest PAFTRAC Trade and Investment Committee survey indicates that Africa-based companies exported goods and services to Nigeria at 25.96%, Kenya at 23.89%, followed by Africa from the South at 22.12%.

The improvement in Kenya’s infrastructure sector, such as the Standard Gauge Railway (SGR), is one of the drivers of the country’s good performance index.
PAFTRAC Survey “The inclusion of South Africa, Ghana and Kenya among the top trading nations is partly a result of the role their international ports play in regional trade.”

Most of the private companies however expressed their main concern that SGR does not have the capacity to connect to other parts of Kenya.

PAFTRAC added that “the biggest challenge is that, despite the construction of new railways, it often proves difficult to obtain funding to connect transport infrastructure across borders. For example, Kenya’s new Standard Gauge Railway (SGR) links Mombasa to Nairobi but not yet between Nairobi and Kampala.

The country also imports from other African countries.

Although Kenya is one of the largest horticultural exporters in the world, Nigeria imports flowers from Europe rather than Kenya, making it one of the challenges of intra-African trade.

Last year, Kenya’s imports of goods and services accounted for 20.1% of the country’s GDP.

“Exports are the main English-speaking markets and are also the main source of imports for businesses. Kenya performs particularly well, cited by 28% of respondents, slightly behind South Africa (28.3%) in the first place,” the PAFTRAC survey says.

The survey was administered to over 800 respondents, seeking to gauge the sentiment of the African private sector regarding the African business outlook and landscape.

PAFTRAC undertook the survey between March and June 2022, targeting companies with annual revenues of up to $250 million and operating in agribusiness, manufacturing, education and banking, among others.

GAROWE ONLINE

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