TECHNOLOGY AND INTERCOUNTRY TRADE IN EAST AFRICAN COMMUNITY

Abstract

Application of technology in the promotion of international trade between countries has increased in the last 20 years. East African countries have been using technology in increasing proportions and applying new technological applications as they appear. The use of social media as a promotion tool has gained currency especially after 2013. Facebook, twitter, PayPal, e-mail, swift, electronic money transfer has improved international payment and settlement systems of accounts. This study was conducted between 2010 to 2015 with two objectives: one was to establish which kind of technology is mostly used by business organizations in East African countries to promote their intercountry trade; and two, how has the application of technology improved in the promotion of trade in East African countries. The literature reviewed indicated that most firms used conventional means of known technology and less use of the modern technology. The methodology adopted was a survey conducted in all the six EAC countries and adjacent neighbouring countries. Interviews were conducted on the top management of concerned firms and information obtained was analysed using content analysis. The results of the study showed that some firms, especially those who have embraced new technological methods of management have adopted new information technology and have established connection in all the EAC member-states. Although some countries like Burundi and Southern Sudan have not developed fully their technological infrastructure, we found out that some firms and individual businessmen within those countries have invested on appropriate information technology and are ready to use it. The results of this study indicated that the application of the latest technology to promote intercountry trade has increased the volume of trade between member states.