Trade body cautions against ban on imported ICT products

Developing economies like Kenya have been cautioned to delicately consider the effects of imposing a ban on secondhand ICT products even as they seek to grow their respective manufacturing sectors. 

The Digital Economy Report 2024, which lists Kenya as one of the countries that has imposed a ban on second-hand ICT products, details how key imported gadgets are to the economy in the wake of circularity. 

The report states that refurbishment of these products, unlike a blanket ban, provides an opportunity to still grow the manufacturing sector and create jobs.

The report by United Nations Trade and Development (Unctad) notes that a digital passport on these products would be helpful instead to monitor to their movement and lifespan.

“Moving towards digital circular economy needs to be supported by (digital) tools. For instance, digital product passport could be key in tracking materials and products enabling more informed consumption decisions as well as policies,” the report says.  

The report states that the economies of developing countries tend to be more circular than those of developed.

“This arises from necessity, as lower levels of income compel people to engage in circular economy activities; users tend to buy more affordable second-hand devices or try to keep the devices for longer by repairing them,” reads the report in part. 

Unctad opines that due to this necessity, businesses, particularly micro, small and medium enterprises (MSMEs) in the sector thrive as shops selling refurbished products and parts find a ready market. 

“Businesses, particularly local MSMEs, including in the informal sector, can create value from digitalisation-related waste and contribute to keeping products and materials in use through upcycling,” says the report published July.

It adds: “Small enterprises focused on repairing, remanufacturing, updating and recycling benefit the environment by extending the life of products and recovering materials, thereby reducing the need for raw materials and diminishing harmful waste and pollutants.”

Such businesses offer jobs and income opportunities to to the population even as Unctad points out scalability of such as a challenge. 

“By contrast, banning informal waste-related activities without having a formal structure in place can be counterproductive. It may leave a significant part of the poorest population without much-needed livelihoods,” the report says. 

In an effort to address illegal imports of such waste, the report lists Kenya, Uganda and Ghana as some of the countries, that have reportedly imposed bans on such imports, including for second-hand items.

The report says although there is a clear need to ban imports of digitalization-related waste that do not meet legitimate purposes, the case for a wholesale ban on imports of used functional digital equipment may not be as straightforward as it’s thought to be. 

“If the equipment can be reused, is truly second-hand and can be repaired or refurbished, it can contribute to value addition, job creation and affordability, alleviating digital divides, therefore advancing developmental objectives,” it says. “However, some countries may ban imports of second-hand equipment to stimulate the growth of domestic electronics manufacturing.”

Kenya in 2020 did announce a ban on second hand gadgets through its environment agency which has been protested by trading partners overseas where these products originate from. 

In 2021, the East African Community(EAC) followed suit by banning the importation of cathode ray tubes(CRT) and stand alone computer monitors in a bid to reduce dumping of electronic waste. 

The Kenya Institute for Public Policy Research and Analysis in a 2023 write up titled Rejuvenating local manufacturing in the context of second hand economy, notes that Kenya imports most of its ICT products from Britain, Malaysia, the United States and China. 

It adds that there are however there are few Kenyan startups like Toto Sci which manufacturers chargers and universal serial bus(USBs) and the Nairobi Industrial and Technological Park which makes Taifa Laptops.

“Even though the importation of old products is discouraged, there is a considerable chunk of old refurbished(products) that are imported,” Kippra notes.