Aid in Action

East African Exports Climb as Companies Penetrate U.S. Markets

ECA Trade Hub Sponsorship Helps Increase Profit and Create New Jobs

Nairobi,Kenya  | Wednesday, January 09, 2008

Companies in countries throughout East Africa continued to benefit from East and Central Africa (ECA) Trade Hub assistance in 2007.  The ECA Hub sponsored 12 flower companies from Burundi, Ethiopia, Kenya, Rwanda and Tanzania to the World Floral Expo held in Miami in March, as well as sponsoring companies at trade shows for the food, apparel, furniture and home décor sectors. Technical assistance and trade fair support have so far produced over US $14 million in incremental export sales for enterprises in East Africa.

In 2007 Novastar Garment Factory of Ethiopia, a manufacturer of knit and woven garments for athletic/sports and casual wear, established excellent leads and confirmed orders to the U.S. totaling over $500,000. The company benefited from ECA Hub in-field technical assistance and sponsorship to the MAGIC trade show in Las Vegas in February and August 2007. MAGIC is the largest apparel and fabric sourcing event in North America. The increase in orders meant that Novastar was able to increase its production capacity from 8 to 12 product lines, resulting in significant job creation. The company has hired 137 new employees to help with production, increasing its workforce by 66%, from 266 to 403.

IRIS Madagascar, a Malagasy apparel firm, received ECA Hub in-field technical assistance and sponsorship to attend the MAGIC show in August 2007.  As a result, interest from U.S. buyers rocketed and the company reported exports valued at nearly $600,000 in 2007.  Significantly, prior to the ECA Hub's intervention the company had never exported to the U.S.  Having established solid business relationships with a handful of U.S. buyers, the company expects exports to the U.S. to rise to over $900,000 in 2008 and to approach the $1 million mark by 2009. IRIS Madagascar specializes in added value production, including hand embroidery and the addition of spangles and rhinestones as well as the manufacture of sports and casual wear.

K-Net Flowers, a cut flowers consolidator based in Kenya, received ECA Hub in-field technical assistance and sponsorship to the World Floral Expo in Miami, Florida in 2006 and 2007.  As a result, the company reports $900,000 in exports of cut flowers to the U.S.  Mr. Mike Kingori, the company's Director, states, "We greatly appreciate the assistance we received from your organization, without which we may not have made the progress we have."  Given his pivotal role in working with a large cross-section of flower farms and exporters, Mr. Kingori will participate in an upcoming East Coast port/customs tour under USDA's Cochran Fellowship Program, which will be closely tied to participation in the ECA Hub's "Africa Pavilion" at the World Floral Expo in Miami. The Cochran Fellowship Program provides U.S.-based training and support to help developing nations improve their agricultural systems and strengthen and enhance trade links with the United States. Despite the challenges within the cut flowers sector, chiefly the current lack of direct transport routes, K-Net Flowers success in penetrating the U.S. is evidence of the strong market demand for East African flowers.

Continuing on the successes of 2007, the ECA Hub will start off the new year by sponsoring Madagascar Arts, a Malagasy crafts exporter, to the Atlanta International Gift and Home Furnishing Market in Atlanta, Georgia from January 11 – 15. The ECA Hub will also sponsor five companies from the region to the Natural Products Expo West show from March 14-16 in Anaheim, California. The show is the largest natural, organic and healthy products trade show in the world, featuring thousands of new products and cutting-edge trends. With engaging speakers, informative seminars and numerous networking opportunities it will provide opportunities for new companies to break into the American market. Last year more than 47,000 people attended the show, visiting over 3,000 exhibits.

The ECA Hub works with countries in the region to continue their efforts to open their economies, build free markets, and attract foreign investment to promote economic growth. The ECA Hub was developed to help African business take advantage of opportunities provided through the African Growth and Opportunity Act (AGOA), such as duty-free treatment to virtually all products and liberal access to the United States market.