Kenya keen on regional markets to grow economy

Kenya will place a greater emphasis on regional markets to improve exports and shun traditional European markets affected by global financial crisis.

The country will focus on penetrating Southern Sudan and the Democratic Republic of Congo, among other sub-Saharan markets, in a renewed plan to expand the regional markets, the Exports Promotion Council (EPC) boss Ruth Mwaniki said.

“Research-based market intelligence shows there is great demand for small-scale products from Kenya that most of the regional markets import from European countries yet we have the potential to become their key suppliers,” Ms Mwaniki said during the fourth annual EPC forum in Nairobi Friday.

The meet reviews performance of the sector, exchanges information while creating a platform for exporters to network and craft approaches to pursue emerging markets.

Last year, Kenya exported goods worth Sh511 billion against Sh1.3 trillion worth of imports.

President Kibaki told the gathering that the situation needed to be reversed by adding value to the local products to fetch money in the international markets.

“Improving our export performance and raising productivity across all sectors of the economy is the only sustainable strategy for securing long-term success for our export sector,” President Kibaki said.

The Head of State, while appreciating that the export sector had recorded a growth of 24 per cent in the last one year, highlighted challenges as high crude oil prices that needed remedial action.

President Kibaki also cited high interest rates and inflation and low demand in the local markets due to the recession in the global market as causes for worry.

“Kenya is embracing an export-oriented growth strategy as a means to developing the economy and alleviating poverty,” he said, adding that economically-stable countries as Korea, China, Thailand and Singapore prioritised exporting their local products to spur growth.

Lay strategy

The President said that Kenya will lay strategy to boost agro-based industries which are the primary source of exports for the country accounting for 77 per cent.

Others will be to boost science, technology and innovation, and develop industrial and manufacturing zones while strengthening the small businesses to improve their productivity.

“These measures will also include development of infrastructure in areas as construction of modern ports, rails, roads as well as higher investment in telecommunication networks, information communication technology and related services.”

He noted that Kenya’s Judiciary was also making alternative approaches to dispute resolution which will enable speedy settlement of business disputes.

But Mr Vimal Shah, speaking on behalf of the private sector in the country, noted that Kenya needed to reduce inefficiencies while doing business and working towards eliminating non-tariff barriers in international trade.

He also noted that the country’s exporters not only needed to diversify their products but also needed to add value to the products that they already produced through innovation.

“There is a need to export more than we import to keep the balance of trade stable,” Mr Shah said.

He also noted that both East African Community and the Common Market of East and Central Africa both had 136 million and 433 million people that needed to be reached in the new export plan.

This year’s theme of the forum was: “Anchoring Kenya as an export-driven economy.”