EPZ sales up Sh16 billion on bigger export orders
The total value of sales from Export Processing Zones(EPZs) grew to Sh115.3 billion last year from Sh98.9 billion in 2021 lifted by bigger export volumes.
The value of exports from the zones shot to Sh106.1 billion in 2022 from Sh90.2 billion the previous year, the newly released Economic Survey 2023 showed.
“The increase in total sales was largely attributed to growth in exports of apparel, agro-processing, food processing, pharmaceuticals and medical supplies, and edible oil,” the survey report said.
Domestic sales, which include sales to duty-free shops, increased from Sh8.6 billion in 2021 to Sh9.2 billion last year.
“Imports increased by 31.7 percent to Sh63.6 billion from Sh48.3 billion in 2021 due to increased importation of fabrics, accessories, and machinery,” the survey said.
The total number of gazetted EPZs stood at 89 last year compared to 82 in 2021, out of which, 83 were privately owned and operated while six were public zones.
Direct employment within the EPZs expanded by 25.3 percent last year to 82,764 persons compared to 66,053 persons in 2021.
“This was mainly attributed to employment generated by new apparel firms and expansion of existing ones,” it said.
The cumulative value of investments for enterprises and zones rose by 7.9 percent in 2022 to stand at Sh134.3 billion from Sh124.5 billion the previous year.
The survey attributed the growth to the new enterprises that entered the programme as well as the expansion of existing ones.
The performance of the EPZ firms under the US’ African Growth and Opportunity Act(Agoa) programme hit a four-year high in 2022, buoyed by bigger volumes.
The value of exports under Agoa expanded from Sh48.8 billion in 2021 to Sh54.1 billion in 2022. The value of capital investment increased by 7.2 percent to Sh24.9 billion in 2022 while the number of direct jobs in the sub-sector grew significantly by 31.5 percent to 66,300 workers in 2022.
The current Agoa deal, a preferential trade programme that allows duty- and quota-free access to the US market for sub-Saharan African countries, will expire in September 2025. BY DAILY NATION
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