JUNE 2018
The USAID Hub is publishing a series of impact studies that show the effect of trade policy instruments, and their implementation, on the movement of goods, capital and services in the East African Community. Below you'll find case studies on motor vehicle assembly in Kenya and rice trade in Tanzania.
IN THIS ISSUE:
  • IMPACT OF NON-IMPLEMENTATION OF REVISED EAC RULES OF ORIGIN 2015 - The Case of Motor Vehicle Assemblers in Kenya
  • IMPLEMENTATION OF TRADE POLICY INSTRUMENTS ON RICE TRADE IN THE EAST AFRICAN COMMUNITY - The Experience of Tanzania
  • NEW HUB-SUPPORTED INVESTMENT CLOSURE INCREASES ACCESS TO MEDICAL DEVICES IN TANZANIA
  • KENYA AGOA 101
  • HUB AGOA RESOURCES - AGOA FORUM 2018
  • HUB REPRESENTS EAST AFRICAN FOOTWEAR MANUFACTURERS AT POPULAR NEW YORK TRADE SHOW
IMPACT OF NON-IMPLEMENTATION OF REVISED EAC RULES OF ORIGIN 2015
The Case of Motor Vehicle Assemblers in Kenya
This USAID Hub case study analyses the impact of non-implementation of the EAC Rules of Origin (RoO) and highlights the specific experience of private sector companies compared to the general performance of the motor vehicle assembly industry in the region. It illustrates how two large private sector companies have not been able to take advantage of the revised RoO which require that locally assembled motor vehicles be given preferential treatment in other Partner States.

The study reveals continued violation of commitments undertaken by EAC Partner States in terms of non-implementation of RoO. It identifies five significant negative impacts: (i) underutilized assembly capacity; (ii) further investment disincentive as a result of low capacity utilization; (iii) fewer jobs created as a result of less market; (iv) high prices for consumers; and (v) negligible regional sales/loss of a regional industrialization opportunity. 
The automotive industry in sub-Saharan Africa is growing rapidly, albeit from a low base. Besides South Africa, production of motor vehicles is nearly non-existent, and demand is being met by imports. Vehicle imports amounted to 1.5 million vehicles in 2013 and have grown at 14% per annum since 2003. Africa as a whole accounted for less than 1% of global vehicle production (831,000) units in 2014.

EAC Partner States have, under the EAC Industrialisation Policy,recognized motor vehicle assembly as one of the industries that holds significant potential for the region’s industrialization efforts.

Read the complete case study here .
IMPLEMENTATION OF TRADE POLICY INSTRUMENTS ON RICE TRADE IN THE EAST AFRICAN COMMUNITY
The Experience of Tanzania
The USAID Hub case study shows how EAC trade policy instruments affected Tanzanian rice trade from 2008 to 2016 in the lead up to a 2017 trade policy reform supported by the Hub, where Tanzania’s longstanding dispute with Rwanda over a charge of $300 per metric ton on rice originating from Tanzania was resolved.

The reform was realized through a Hub grant to Tanzania Private Sector Foundation (TPSF), which yielded a total of nine trade-facilitating reforms. Read more about the Hub/TPSF partnership here .

Read the rice case study here .
In East Africa, rice is the second most important staple food, following maize. Local production is estimated at 1.2 million metric tonnes annually and is dominated by smallholder families.Tanzania is the main rice producer in the region accounting for over three quarters of rice produced.
NEW HUB-SUPPORTED INVESTMENT CLOSURE INCREASES ACCESS TO MEDICAL DEVICES IN TANZANIA
The USAID Hub recently facilitated the closure of a $15 million deal in Tanzania for a pharmaceutical company that registers, imports and distributes health products. The company directly sources its products from Medtronics, a U.S.-listed company valued at over $8 billion. The Hub supported the pharmaceutical company's management team to respond to the investor's draft term sheet, enabling it to secure the capital require to grow its diagnostic business.

Read more about Hub investment closures to date.
The company will utilize the funds raised to expand its medical devices business across both East and West Africa. To date, the Hub has facilitated over $118 million in investment deals.
KENYA AGOA 101
The Hub's AGOA 101 Kenya guide outlines the step-by-step process that Kenyan businesses should take to export to the U.S. duty-free through AGOA and gives a general overview for the export of all AGOA products from Kenya. It provides additional information on the export of four high-demand, high-value sectors, namely textiles and apparel; coffee; nuts and oil crops; and cut flowers.

Although exporting can be a challenging process, it can also be profitable for the individual or company that successfully complies with the steps.

We encourage you to click on the image on the right and start exporting through AGOA.

HUB AGOA RESOURCES - AGOA FORUM 2018
The AGOA Forum 2018 is right around the corner, July 9 - 12 in Washington D.C. The USAID Hub is the one-stop shop in the East African region for businesses and national governments seeking to take advantage of the African Growth and Opportunity Act (AGOA). Click to the right to learn about some our our resources.
HUB REPRESENTS EAST AFRICAN FOOTWEAR MANUFACTURERS AT POPULAR NEW YORK TRADE SHOW
The Hub represented nine East African footwear companies at the Fashion Footwear of New York’s “Market Week” in New York last week. The companies’ new collections generated significant interest among retail buyers, leading to 20 potential linkages valued at $1,347,000. All of the companies are based in Kenya or Ethiopia where footwear industries have invested heavily in their leather sector and in their production capabilities, with USAID support.

Find out more about FFANY by clicking  here .
Click on our catalogue above to discover East Africa – the new hub of footwear sourcing – and to make direct contact with the companies that are export ready.
WHERE WE WORK:
The East African Community countries - Burundi, Kenya, Rwanda, Tanzania and Uganda - and, Ethiopia, Madagascar, and Mauritius.

East Africa Trade and Investment Hub |  info@eatradehub.org  |  www.eatradehub.org