The Pursuit of Industrialization in the EAC region: The Role of Trade Facilitating Infrastructure in Promoting exports of Manufactured goods (original) (raw)

Poor quality of infrastructure increases the risk of damaging goods therefore increasing the cost of the whole transaction. Shipment holdups, overcrowding and congestion at the ports in Kenya hinder the ability of firms to acquire imported production inputs, resulting in production losses and higher production costs. These kind of costs can spill over into the rest of the region particularly in the landlocked countries (Uganda, Rwanda and South Sudan) whose exports and imports transit through these ports. Therefore, it is important to keep in mind that at the regional level, institutional differences across countries are often key determinants of trade patterns and volumes.