China, Europe battle to charm Kenya

Chinese Prime Minister Li Keqiang speaks at State House, Nairobi, after the signing of the standard gauge railway agreement. China pledged to assist fund the project that will link all East African countries. [PHOTO: MBUGUA KIBERA/ STANDARD]

By WINSLEY MASESE

Kenya: Prior to the European Union-Africa summit in Brussels early last month, head of delegation to Kenya Lodewijk Briet played down the influence of China in Kenya and by extension, Africa.

He noted that despite the growing influence of China in Africa, the union still remains a credible development partnership.

“Compared to China and India, which are often depicted as important trading partners, East Africa’s total exports to these countries is less than 2 per cent,” he said.

Briet noted that they have embarked on programmes to boost trade volumes in favour of Kenya.

“We need to move from aid to trade as a significant tool to fight and eradicate poverty,” he stated at a past media briefing.

As African heads of states gathered in Brussels, experts at the time forecast that China would not close its eyes but monitor closely the meeting also attended by President Uhuru Kenyatta.

A month later, the Chinese government came calling, sending the loudest message that they are a true partner.

During his State visit to Kenya at the weekend, Chinese Prime Minister Li Keqiang was asked by a reporter what his country plans to do to ensure trade imbalance against Kenya is bridged. “We will take steps to correct trade imbalances because if they persist, achieving sustainable growth would be very difficult,” said the Chinese premier.

To achieve this, he urged Chinese companies to boost the manufacturing sector in Kenya and raise the capacity of local products to compete favourably in the Chinese market.

The PM encouraged Kenyan companies to participate in trade fairs in China to showcase their best products in China.

“Kenyan companies need to manufacture goods that show their strengths and are in a position to meet the Chinese needs,” he noted.

On the other hand, the EU is keenly watching the developments between Kenya and China to gets insights on how to iron out some issues that stand in the path towards signing Economic Partnership Agreements between East Africa Community and the European Union.

Manufacturing base

A week or so from today, the East African Community and the EU return to the negotiating table to thrash out some of the contentious issues holding back better trade agreements between the two blocs.

Under the Economic Partnership Agreements, there are three contentious issues that have held back the signing of trade agreements with the union, down from nine.

And when the Chinese Premier is taken around some of the key infrastructural projects his country has participated in, he will nod in appreciation that they are incomparable to those from the West.

In the current issue of the China Daily, Standard Chartered China Chief Executive Jerry Zhang writes: “Trade is only the start of the current phase of the China-Africa story.”

He says as the partnership evolves, Africa is set to emerge as a key manufacturing base for China’s top companies. It would also be a plus for China that when a Head of State of the second largest economy in the world visits Kenya, the message is loud and clear to the other economies.

For we are yet to see a similar gesture from the West, who are Kenya’s former development allies.