PIGA Export Potentials of Ethiopia, Kenya, Mozambique and Zambia

PIGA Partnership for Investment and Growth in Africa EXPORT POTENTIALS OF ETHIOPIA, KENYA, MOZAMBIQUE AND ZAMBIA EXPORT POTENTIALS OF ETHIOPIA, KENYA, MOZAMBIQUE AND ZAMBIA Views expressed in this paper are those of consultants and do not necessarily coincide with those of ITC, UN or WTO. The designations employed and the presentation of material in this paper do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of firms, products and product brands does not imply the endorsement of ITC. ii EXPORT POTENTIALS OF ETHIOPIA, KENYA, MOZAMBIQUE AND ZAMBIA Contents Acronyms and Abbreviations .......................................................................................................................... vii 1. Project and Study Objectives ................................................................................................................ 1 2. Trade Structure and Policy .................................................................................................................... 2 2.1. Trade structure ............................................................................................................................ 2 2.1.1. Ethiopia .......................................................................................................................... 2 2.1.2. Kenya ............................................................................................................................. 3 2.1.3. Mozambique .................................................................................................................. 4 2.1.4. Zambia ........................................................................................................................... 5 2.2. Preferential tariff regimes and trade agreements ....................................................................... 6 2.3. Existing ITC projects and national development plans ............................................................... 6 3. Methodology .......................................................................................................................................... 9 3.1. Data ............................................................................................................................................. 9 3.2. Export Potential Indicator (EPI): Growing your current exports .................................................. 9 3.3. Product Diversification Indicator (PDI): Diversifying into new products .................................... 10 3.4. Additional indicators .................................................................................................................. 11 3.5. Qualitative information .............................................................................................................. 11 4. Results ................................................................................................................................................. 13 4.1. Ethiopia’s sectors with export potential ..................................................................................... 14 4.1.1. Animal-based products ................................................................................................ 15 4.1.2. Vegetable-based products ........................................................................................... 18 4.1.3. Cotton and textiles ....................................................................................................... 27 4.1.4. Wood and wood products ............................................................................................ 29 4.1.5. Chemicals .................................................................................................................... 30 4.1.6. Construction materials ................................................................................................. 32 4.2. Kenya’s sectors with export potential ........................................................................................ 34 4.2.1. Animal-based products ................................................................................................ 35 4.2.2. Vegetable-based products ........................................................................................... 41 4.2.3. Cotton and textiles ....................................................................................................... 50 4.2.4. Wood and wood products ............................................................................................ 52 4.2.5. Chemicals and plastics ................................................................................................ 54 4.2.6. Construction materials ................................................................................................. 56 4.2.7. Miscellaneous manufactured articles .......................................................................... 58 4.3. Mozambique’s sectors with export potential ............................................................................. 60 4.3.1. Fisheries ...................................................................................................................... 61 4.3.2. Vegetable-based products ........................................................................................... 63 4.3.3. Cotton and textiles ....................................................................................................... 70 4.3.4. Wood and wood products ............................................................................................ 72 4.3.5. Construction materials ................................................................................................. 74 4.4. Zambia’s sectors with export potential ...................................................................................... 76 4.4.1. Animal-based products ................................................................................................ 77 4.4.2. Vegetable-based products ........................................................................................... 79 4.4.3. Other agro-based products .......................................................................................... 83 iii EXPORT POTENTIALS OF ETHIOPIA, KENYA, MOZAMBIQUE AND ZAMBIA 4.4.4. Cotton and textiles ....................................................................................................... 84 4.4.5. Rubber and rubber products ........................................................................................ 86 4.4.6. Wood and wood products ............................................................................................ 87 4.4.7. Construction materials ................................................................................................. 88 4.5. New sectors with export potential ............................................................................................. 91 4.5.1. Opportunities with export potential to the EU .............................................................. 91 4.5.2. Opportunities with export potential to East Africa ........................................................ 94 5. Summary ............................................................................................................................................. 98 List of Figures Figure 1: PIGA countries’ export destinations ................................................................................................ 2 Figure 2: Ethiopia’s top five export sectors..................................................................................................... 3 Figure 3: Kenya’s top five export sectors ....................................................................................................... 4 Figure 4: Mozambique’s top five export sectors ............................................................................................. 5 Figure 5: Zambia’s top five export sectors ...................................................................................................... 5 Figure 6: Ethiopia’s high potential sectors .................................................................................................... 14 Figure 7: Kenya’s high potential sectors....................................................................................................... 34 Figure 8: Mozambique’s high potential sectors ............................................................................................ 60 Figure 9: Zambia’s high potential sectors ..................................................................................................... 76 List of Tables Table 1: Overview of priority sectors in ITC projects ...................................................................................... 7 Table 2: Overview of priority sectors in national development plans ............................................................. 7 Table 3: Overview of institutions met ............................................................................................................ 12 Table 4: Ethiopia’s exported products with potential: Live animals and animal products ............................ 15 Table 5: Ethiopia’s related products for export diversification: Live animals and animal products .............. 16 Table 6: Ethiopia’s exported products with potential:

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