East Africa exports to the US hit $1bn in the year to September 2018
Exports from East African countries to the US reached about $1 billion between October 2017 and September 2018, a 17 per cent increase from the same period the previous year.
The United States Agency for International Development’s East Africa Trade and Investment Hub said apparel dominated the region’s sales at 84.4 per cent of exports.
The Africa Growth and Opportunity Act (Agoa) gives sub-Saharan Africa duty-free access to US markets for about 6,000 items.
The East Africa Trade and Investment Hub said that the firms they supported have increased competitiveness by gathering information on buyer needs, helping to get standards certification, and developing products tailored to consumer preferences.
“To date, USAid Hub trade and investment support has contributed to $4.07 billion in Agoa exports from the region, with $491.5 million from Hub-supported firms,” the Hub said.
Largest exporter
Kenya remained the largest exporter under Agoa in East Africa, at $454.2 million in the period under review, representing an increase of 14 per cent from $399.7 million made in the year to September 2017.
Tanzania experienced a rise of seven per cent to $42.1 million, Uganda had a 49 per cent increase to $3.2 million, and Rwanda went up 49 per cent to $5.8 million.
Ethiopia had the largest increase in exports as the country’s total earnings rose by 62 per cent to $137.3 million in September 2018, from $84.5 million September 2017.
“If this growth continues, Ethiopia may quickly become the second or third largest exporter under Agoa in East Africa. Almost all other countries saw their exports grow with the exception of Mauritius and Burundi,” said the Hub.
Mauritius has seen increased competition since Madagascar regained its Agoa eligibility in 2014. Sales from Mauritius dropped by five per cent to $160.5 million in September 2018, from $168.6 million the same period the previous year.
Burundi is not eligible to trade under Agoa. The country’s exports under the Generalised System of Preferences declined by 36 per cent to $1 million, from $1.7 million in the year to September 2017.
Madagascar’s exports to the US rose by 29 per cent to $181.3 million in the period under review.
The Hub said that countries in the region are making the most of the trade agreement.
Rwanda, Uganda, Madagascar, Tanzania and Kenya have developed national Agoa strategies to support critical sectors and items to maximise the duty-free benefits. Ethiopia is in the process of updating its national strategy.
Products that can enter the US market under the agreement include textiles and apparels, specialty foods, footwear, cut flowers, home décor and fashion accessories.
The Hub advises and trains firms by reducing the cost and risk of doing business through engaging governments with stakeholders.
Read related news articles
Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....
19 March 2024
US President Biden to welcome Kenyan President Ruto to the White House in May
President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...
18 February 2024
'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'
Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...
05 February 2024
Kenya-US to deepen ICT, apparel and agriculture trade
Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms. A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...
09 November 2023
Kenya President Ruto joins US-Kenya business roadshow in San Francisco
Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...
15 September 2023
AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth
The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...
08 August 2023
'US-EAC trade pact comes into life amid disharmony'
The Trade and Investment Framework Agreement (Tifa) between the US and the East African Community has begun taking shape, with a section of the bloc’s members keen on it and others still biding their time. This week, US officials were in Nairobi to conduct part of the negotiations on the US-Kenya Strategic Trade and Investment Partnership and to meet Trade ministers from the region. On July 18, Trade ministers from Tanzania, Uganda,...
23 July 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
US boosts Kenya apparel industry with $55m in new trade deals
The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...
29 April 2023
Why Africa, why Kenya? Remarks by US Ambassador to Kenya
Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San...
26 April 2023