Mexico seeks business ties with Kenya

Mexico is upping the race to get a share of Kenya’s growing economy and to access the East African market.

A delegation of business investors and government officials from Mexico were last week in the country to scout for possible areas of investment.

The delegation identified four sectors to venture in. According to the head of the communication unit and private sector liaison, Mr Miguel Diego, this will be the first phase that will see the team organise a business to business forum for the two countries.

Currently, trade between Kenya and Mexico is insignificant. Mexico is famous for the production of soap operas, which are in high demand in Kenya.
“We are big exporters of tomatoes, avocadoes, berries, lemons, and mangoes. What we want to bring to Kenya is technical know-how in value-addition so that farmers get the most profit from their produce,” said Mr Diego.

With a population of 120 million, Mexico’s GDP is Sh100 trillion ($1.2 trillion), making it Latin America’s second-largest, fourth in the Americas, and 14th in the world. The country has a low inflation rate of below 4 per cent and a low level of debt — 31 per cent of GDP.

Speaking at the briefing, the deputy trade and investment commissioner, Mr Mario Alberto, said other areas the delegation was looking to invest include infrastructure, agro-industry, and medical equipment.

“We will employ technology to bring down the cost of housing in Kenya. With a large population in Mexico, we get to build one million houses a year.

If the Kenya government can embrace this, we can meet the challenge of housing,” said Mr Alberto. “One of the companies we have in Mexico has know-how on building a house in two-and-a-half weeks. The pre-made house is very safe and affordable,” he added.

Mexico has free trade partnerships with 45 countries, including North America, the European Union, and Japan. “If we train farmers on how to add value to their products through packaging and branding, they will maximum the benefits from their products,” he said. He added that more than 80 per cent of Mexican exports are manufactured, whereas in Brazil and Argentina, these make up the majority of exports.

“Mexico has more manufactured goods than the rest of Latin America combined. The exports are worth more than those of the entire region,” he said.
According to data from the country’s embassy, Mexico is the world’s largest producer of flat screens and the fifth exporter of computers. It is also the fourth exporter of IT services.

“Also, Mexico is the world’s fourth exporter of new cars and the first destination for foreign direct investment in aerospace manufacture,” reads the fact sheet.