Kenya imports fridges from SA under AfCFTA

KWAZULU-NATAL. – Kenya is importing its first consignment of machinery, agricultural products and electronics, among them refrigerators, from South Africa under the African Continental Free Trade Area (AfCFTA).

In return, Kenya is expected to export tea, coffee, fruits and vegetables in the coming weeks under the same initiative.

On Wednesday, President Cyril Ramaphosa inaugurated South Africa’s first trade shipments under the AfCFTA at the Port of Durban in KwaZulu-Natal at the 13th AfCFTA Council of Ministers meeting attended by over 12 African trade ministers, including Kenya’s Rebecca Miano.

“The first consignment that was flagged off to Kenya contained fridges and freezers. Going forward we shall expect imports from South Africa only of the products we do not manufacture in Kenya,” said Ms Miano.

“Kenya will also export to South Africa her tea, coffee, flowers, vegetables, a wide range of fruits, apparel, iron and steel products, among others,” she added.

The implementation of the AfCFTA will see the two countries increase their level of trade by creating awareness among the traders. Currently, trade is in favour of South Africa, which enjoys a significant trade surplus. Official data shows Kenya imported goods worth Sh61,1 billion (US$380m) from South Africa against Sh6,8 billion (US$42,3m) exports.

The AfCFTA can break Africa’s colonial legacy of exporting raw materials and importing finished goods, according to

Jean-Louis Ekra, Deputy Chairperson of the Intra-African Trade Fair (IATF2023) Advisory Council and a former President of the Afreximbank), who said this recently at the Trade and Investment Conference of IATF2023 in Cairo.

Mr Ekra pointed out the unsustainability of African economies relying on natural resources and commodities, saying that this dependence made them vulnerable to adverse trade shocks, liquidity constraints and macroeconomic management challenges.

Arguing that the situation needed to be addressed urgently, especially as it had worsened the effects of the Covid-19 pandemic, geopolitical tensions and climate change, he said that “AfCFTA cannot fail, especially given that intra-African trade is estimated at 16 percent” which was a level of trade that compared unfavourably with other regions.

Mr Ekra said that the low level of intra-African trade was explained by constraints such as limited trade and infrastructure including payments and settlement systems, lack of access to relevant market information, limited business knowledge, sustained investment opportunities and limited platforms to connect buyers and sellers.

He urged African countries to recognise that the AfCFTA was the missing link the continent needed and that it presented many trade and investment opportunities in manufacturing, export development, SME promotion and trade in services. – The East African.