EA trade deficit widens on cheaper exports, dearer imports

The relentless depreciation of East African currencies, which is supposed to make their exports cheaper in foreign markets, has failed to improve trade balances for the region, defying expectations and putting more pressure on foreign exchange needs.

All domestic currencies in the region have depreciated at different rates over the past year, but the trade deficit in nearly all the countries has continued to widen, signalling increased importation or a drop in exports, despite the price adjustments, which should impact demand.