CHINA DAILY MONDAY, MAY 3, 2010 kenyaspecial S5 Sino-Kenyan trade reaches record high

Bilateral relations strengthen as Amos Kimunya, Minister of Kenya boosts exports and image Trade

As a major producer of agricul- World Expo 2010 in Shanghai. tural and industrial goods, Kenya Up to 70 million people will boasts one of Africa’s leading attend the event and Kenya aims to export-oriented economies and catch the eye of investors by show- enjoys excellent trade relations with casing innovative trade policies many foreign countries, particularly and investment incentives built on China, which has emerged as a key encouraging sustainable develop- Abdulrazak trade partner. ment. Aden Ali, Permanent With trade a rapidly expanding As such Expo 2010 will pro- Secretary of sector of the Kenyan economy since vide an international platform for the Ministry the introduction of trade liberaliza- Kenya’s emergence as an economic, of Trade tion in the 1990s, the sector will play technological and cultural hub for a vital role in ensuring that Vision East Africa, and help fi rms establish 2030’s wide range of economic goals new partnerships and linkages with are achieved. counterparts in Asia and, in particu- Economic diversifi cation and the lar, China. development of solid international “Kenya will utilize the window Kenya’s Vision 2030 economic pil- bilateral trade relations are two of of opportunity provided by the lar, with a modern and competitive Vision 2030’s main aims as offi cials 2010 Shanghai Expo to showcase industrial base seen as a key founda- look to build a successful “Made in the country’s wonderful range of tion for a prosperous and successful Kenya” brand and industry. trade, investment and tourism future. According to the latest figures opportunities,” said Abdulrazak The government of President Kenya’s manufacturing sector is rich in investment opportunities. compiled by Kenya’s National Aden Ali, Permanent Secretary of Kibaki is setting aside substantial Bureau of Statistics, the resource- the Ministry of Trade. funds to achieve this goal and is duction and processing divisions, consumers globally benefit from to supporting the trade sector by rich nation exported goods worth inviting investors from China and with the government having desig- better access to foreign markets improving the regulatory frame- $4.9 billion in 2008, of which items The government beyond to participate in the expan- nated manufacturing as the indus- and goods. work and creating an attractive valued at $29 million were shipped sion and modernization of its pro- trialization spearhead to attract Among the projects the govern- investment and business cli- or fl own to China. is committed to duction and trade processes. private sector knowledge, skills, ment believes will encourage and mate.” Th is fi gure represented less than supporting the The sector will support Kenya’s technology, and investment. promote fresh economic growth are Minister Kimunya said he is 1 percent of total exports, with the trade sector by socioeconomic rise through the Investors can take advantage the construction of wholesale, retail determined to reduce the burden main product categories including creation of new jobs — most of incentive packages such as tax and hawkers markets, and the cre- of red tape, improve effi ciency rates textile fi bers, tea, leather, and scrap improving the manufacturing firms are family- holidays, duty exemptions on ation of 1,500 producer groups. and crack down on counterfeit metals such as copper and alumi- regulatory frame- owned and operated — as small machinery, raw materials and inter- goods. num waste. ‘‘ enterprises employ over six million mediate inputs, as well as removal Combined with a drive to reduce work and creat- Meanwhile, Kenya’s imports ing an attractive Kenyans. Predominantly agricul- of restrictions on foreign capital Kenya will utilize costs associated with investment from China increased steadily over turally based, locally made goods repatriation. the window of and use of new technology, Kenya the last decade to reach nearly $910 investment and comprise 25 percent of the nation’s Furthermore, as a benefi ciary of is taking major steps to position million in 2008 compared to $105.4 business cli- annual exports. the African Growth and Opportu- opportunity pro- itself for further market liberaliza- million in 2003 — an annual aver- mate.” The plan features an extensive nity Act, Kenyan goods enjoy duty vided by the 2010 tion. Th ese measures send a strong age increase of 54 percent. portfolio of projects, programs, and free access to the huge US market. In signal to investors of the solid prog- AMOS KIMUNYA Shanghai World Telecommunications equipment, policies that will create a productive order to maximize this major com- Expo to showcase ress Kenya is making as it grows its electrical goods, cars, cotton fabrics KENYA’S MINISTER OF TRADE environment for industrialization. petitive advantage, ministers want ‘‘ presence in the international trade and engineering goods were among They include two special eco- investors to focus on goods, such as the country’s arena. the many Chinese products in great nomic sectors for manufacturing textiles, leather, horticulture, fi sh, wonderful range “Trade has contributed a lot to demand in Kenya, as well as fertiliz- “Th is world exposition will mar- companies in the cities of Mombasa rubber, iron and steel products. of trade, invest- our economic growth and we will ers as local farmers look to develop ket Kenya as a preferred destination and Kisumu, together with at least In addition, the East African ment and tourism soon benefi t from a larger regional their agricultural and horticultural for trade, investment and tourism, fi ve small and medium enterprises nation also off ers excellent invest- market that should facilitate the free base. and provide a golden opportunity in major urban areas, plus new ment openings in agro-processing, opportunities.” movement of goods, capital and With China a growing destination for Kenyan companies to promote industrial parks and special eco- agro-chemicals, chemical, phar- ABDULRAZAK people,” said Wycliffe Oparanya, for Kenyan products, Asia looks set their products and services in the nomic zones. Other new measures maceutical, mining and mineral ADEN ALI Minister of State for Planning, to expand its share of Kenya’s total vast Chinese and Asian markets.” that will lift its competitiveness are processing, metallurgy, engineering PERMANENT SECRETARY OF National Development and Vision exports from the current 12 percent Kenya’s participation in 2010 product and market diversifi cation, and construction. THE MINISTRY OF TRADE 2030. and follow the lead of the European Shanghai Expo is expected to attract research and development plans, Kenya enjoyed strong annual eco- “We need to broaden the Union and the Common Market a fresh wave of Chinese investors and business and technology incu- nomic growth for most of the last export market and sensitize the for Eastern and Southern Africa in value addition sectors such as bation programs. decade, but the global economic “The trade sector is the link business community on the need regions, which represented 26 per- agriculture, fi sheries, livestock, and Now is the ideal time for Chinese crisis and volatile commodity prices between consumption and produc- to diversify into non-traditional cent and 32 percent, respectively, of manufacturing. Th is is in line with investors to begin or expand their lately slowed the rate, with GDP up tion within the economy and there exports. We also need to simplify Kenya’s total exports in 2008. Kenya’s Vision 2030 objective to cre- operations in Kenya, with the coun- about 2 percent in 2009 from 2008. is tremendous potential for trade to trade and investment-related This ambitious, but realistic, ate a robust, diverse and competitive try shortly gaining access to the vast Through large investment in play a central role in driving and sus- regulations and confront stiff goal will receive a tremendous manufacturing sector with the aim market covered by the East African new facilities, transport networks taining growth and poverty reduc- competition in preferential mar- boost over the next six months of increasing overall exports. Community. and technology, Kenya is facing the tion in Kenya,” said Amos Kimunya, kets by developing new strategies through Kenya’s presence at the Manufacturing, wholesale and Kenya offers great investment global trade and commerce revo- Minister of Trade for Kenya. to meet the ever changing global top international trade show, the trade operations lie at the heart of opportunities right across the pro- lution head-on as businesses and “Th e government is committed demands.”

Kenya’s fi nancial sector seeks partners in growth

Off ers most sophisticated Uhuru Kenyatta, Kenya’s Deputy Prime Minister fi nancial sector in East Africa and Minister of Finance Major investment in modern technol- fi nancial sector in Kenya’s growth and ogy and facilities is playing a vital role in development can’t be over emphasized,” Kenya’s journey towards its many Vision said Kenya’s Deputy Prime Minister and 2030 socioeconomic goals. Minister for Finance Uhuru Kenyatta. Ministers have identifi ed investment “Our objective is to make Kenya the in fi nancial services as a key driver of region’s fi nancial hub and the gateway Only a fi ft h of people currently have the economy over the next two decades, to Africa for global investors. We want access to such bank accounts and similar with the Nairobi-based industry hav- international partners to see Kenya as a services, a fi gure that offi cials are keen to ing a dual role as a magnet for foreign stepping stone to the region and a mar- increase as the nation looks to reach mid- investment to fund Vision 2030 projects, ket of 300 million people.” dle-income status in the next 20 years. and as an investment destination in its While the plan identifi es several major In the commercial arena, innovative own right. challenges ahead, the sector is poised for and sustainable strategies such as micro- Vision 2030 aims to transform the take-off as legal, institutional and regula- fi nance programs are being developed banking and fi nancial services industry tory reforms encourage industrial expan- and streamlined and effi cient fi scal sys- into “a vibrant and globally competitive sion through such measures as the arrival tems being introduced across the sector financial sector driving high levels of of stronger and larger banks, increased as it prepares for consolidation. savings and financing Kenya’s invest- access to finance and comprehensive As Kenya’s leading international trade ment needs”. overhauls of capital markets and pension partner, China is paying close attention The sector — widely recognized as and social security systems. to the development of the sector as being safe, sound and transparent — “We are focusing on economic it looks to exploit its economic skills, generates about 5 percent of GDP and reforms in the capital markets that will knowledge and experience. employs approximately 22,000 staff in strengthen governance and ensure that Lucrative business openings are areas such as banking, capital markets, Kenya is a regional center for capital present throughout the industry, with brokerages, insurance, money transfer markets and banking,” said Kenyatta. a fast-improving transparent and eff ec- agencies, and credit providers. “We are de-mutualizing our stock tive regulatory framework providing Under the fi rst medium-term plan of exchange to ensure greater confi dence an attractive commercial investment Vision 2030, the government of President for investors, strengthening our rev- climate. Mwai Kibaki expects both local and for- enue collection processes and ensur- “Our relationship with China is one of eign private investors to fund up to $3.25 ing resources are utilized in a way that our most valued partnerships — being billion of development projects through a increases productivity and reduces based on mutual respect, mutual under- series of public private partnerships. waste.” standing and mutual will,” Kenyatta With responsibility for ensuring these In addition to Kenya establishing said. massive sums are obtained from sources Nairobi as the region’s fi nancial services’ “With China’s growing interest and such as China, the performance of the capital, the government is determined to resources in the region, our bilateral sector is absolutely vital to the overall educate and inform businesses, entre- relationship will improve infrastructure success of Vision 2030. preneurs, and citizens, about the many development and increase trade in “Th e importance and relevance of the benefi ts of fi nancial products. Kenya and the East African region.” Kenyatta International Conference Center.