Kenya clears the way for trade
Kenya is ready to do business with Africa and the world
Kenya, East Africa’s biggest economy by gross domestic product (GDP), has liberalised its economy to enhance investment and inflows, an envoy said at a recent South African summit aimed at expanding trade between the two economies.
Kenya’s cabinet secretary of foreign affairs Amina Mohamed expressed her hopes that their decision would achieve its desired goals.
“I am pleased to say that Kenya has now fully liberalised its economy by removing all obstacles that previously hampered the free flow of trade and foreign private investment,” she told delegates at the three-day Kenya Investment and Trade Summit held in Cape Town.
Mohamed said the Kenyan government had “painstakingly” undertaken economic reforms in order to create the necessary environment to attract foreign investment.
“Today, our economic fundamentals are strong, the outlook is positive and the market is friendly and profitable,” she said.
Hindrances to investment in Kenya included the ethnically charged postelection violence in January-February 2008, which left approximately 1 200 people dead and 600 000 displaced. The state of political instability caused investors to reassess Kenya’s investment climate. Corruption and poor governance also caused investors grave concern. To attract investment, the Kenyan government has enacted several reforms, including: abolishing export and import licensing (except for a few items listed in the Imports, Exports and Essential Supplies Act); rationalising and reducing import tariffs; revoking all export duties and current account restrictions; introducing a free-floating exchange rate; allowing residents and non-residents to open foreign currency accounts with domestic banks; and removing restrictions on borrowing for foreign, as well as domestic, companies.
Administrative and legal procedures have been streamlined to create a more attractive investment climate. Kenya has also launched a national e-registry to ease business license processing and help improve transparency.
During the summit Mohamed addressed government officials and business leaders from Kenya and South Africa, who represent the biggest economies in their respective regions.
Capetonian businessman Cuthbert Malcolm said opportunities in Kenya were worth exploring.
“We rarely get such important economic conferences to boost trade and investment between two nations, hence I’m coming to participate,” said Malcolm.
Kenya high commissioner to South Africa Jean Njeri Kamau encouraged business executives, government officials and experts in various industries to take advantage of the mutual economic benefit of the partnering nations.
The Kenya-South Africa Trade and Investment summit broke ground in 2015, and is now in its second year. “This second annual convening promises to provide South African firms with the tools that will lead to more investment in Kenya,” said Kamau.
She said the second summit “was an opportunity to underscore some of our country’s greatest strengths, including a vibrant culture of innovation, a skilled and productive workforce, and [an] attractive consumer market. The summit will ensure both policymakers and business from the two countries pursue win-win solutions to attract investment, growing trade, and better infrastructure to drive a faster rate of economic growth”.
Kenya is East Africa’s economic giant with a GDP of $60.9-billion and a population of 46 million. South Africa boasts a $351.8-billion GDP with an estimated population of 51 million.
Trade between the two African countries has increased steadily in the last 20 years. In 1994, the value of Kenyan imports from South Africa was approximately R716-million, while Kenyan exports to South Africa were valued at about R28-million.
In 2015, the value of Kenyan imports from South Africa was about R8.2billion, while Kenyan exports stood at around R241-million. — CAJ News