problem facing trade in the region by
Alice Akinyi
6
What is trade? It's the exchange of goods and services for money.
State three benefits of trade
Creation of employment
Earns the countries foreign exchange
Promotes growth of towns
PROBLEMS FACING TRADE INTHE REGION (EASTERN AFRICA)
Production of similar goods which limits the market for their goods. For example, Kenya,Tanzania and Ethiopia grow coffee
Frequent changes in prices of agricultural raw materials
Poor state of roads and other infrastructure
Smuggling of goods and failure to pay taxes e.g, sugar
Failure to pay taxes
6
Exports from Eastern Africa earns the countries little money compared to imports
Political differences in various countries e.g, Kenya and Somalia
Quota system; some regulate the imports which hinder regional trade
Political instability in some countries like Somalia and South Sudan
Some countries such as Uganda, Ethiopia,South Sudan, Rwanda and Burundi have no coastline. Therefore have no access to the sea
Lack of common currency to be used in trade
Question
1. State five problems facing trade in Eastern Africa.
2. List five countries that depend greatly on other countries with sea ports
ANSWERS
1.
Production of similar goods
Poor state of roads and other infrastructures
Smuggling of goods and failure to pay taxes
Political differences among various countries
Political instability in some countries
2.
Uganda
Rwanda
Burundi
South Sudan
●Ethiopia
