Policies Required to Reflect New Reality

Image result for Kenya silicon savannahJust as Silicon Valley has transformed business in the US, Kenya’s Silicon Savanna is currently helping the nation to transcend into the 21st century global economy. For the past 16 years, African Growth and Opportunity Act has shaped US-Africa trade policy via the provision of a one way access to American markets. However, the company mostly focuses on tariffs, without addressing other challenges faced by African entrepreneurs. These include the supply-chain constraints to regional/global trade, plus the need for greater value-added production and export diversification. These challenges may be better addressed via policies resembling free-trade agreements, which define the rules for bilateral trade. Silicon Savanna enterprises need free data flows, more transparent regulation, access to services markets among other things. Eliminating such barriers could come in handy for African entrepreneurs seeking to offer products/services to American consumers, and to American entrepreneurs seeking opportunities in Africa. With the right policies in place, Africa could become a salient contributor to global economic growth. Without such polices, it may suffer economic malaise and political instability.

Reference

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