Economic diplomacy holds the key to Kenya’s growth

Nairobi; Kenya: When Jubilee came to power, top on its agenda was a desire to improve the economy to the level of growing at a double-digit rate. While this still remains a key target, tough challenges have emerged. The good news is that the government has shown indications that it is prepared to surmount whatever challenge, however difficult, to ensure the economy grows at a rate that will make Vision 2030, which seeks to make Kenya a middle-income economy in 16 years, attainable.

President Uhuru Kenyatta has been at the forefront in leading an aggressive push for more trade opportunities across the globe but with notable focus on Africa. The President and his deputy William Ruto have made a whirlwind of tours across the continent to strengthen trade ties with several countries while initiating ties where none existed before.

One of the countries that have been particularly on Jubilee’s radar is Nigeria. The President has visited this country in a bid to ramp up trade with this Africa’s largest economy. President Kenyatta was accompanied by a powerful delegation of businesspeople cutting across all the sectors of the economy. With such a high-level team, Kenya sent a strong message that improving the economy is its number one diplomatic objective. President Kenyatta was reciprocating Nigeria President Goodluck Jonathan’s visit last year. President Jonathan was also accompanied by a powerful delegation of businesspeople who also brought the same message of economic cooperation.

About two weeks ago, Kenya and Nigeria signed a deal to enhance bilateral trade, particularly in agriculture. Few would deny that Kenya and Nigeria are economic powerhouses with the latter the largest economy in Africa. You can only then imagine what they two can achieve when they join hands.

Neighbouring countries, especially members of the East African Community, are also key trading partners of Kenya with Uganda being one of the country’s principal importers of goods globally. President Kenyatta has been strongly campaigning for a more integrated East Africa for obvious reasons.

A closely-integrated bloc is good for business. Movement of goods, people and labour will be greatly eased and barriers to commerce will be brought tumbling down, leading to increased volumes of trade. The ultimate prize of this is of course radical reduction in poverty levels.

As the region’s biggest economy, Kenya stands to gain if EAC is made more vibrant.

With its thriving manufacturing sector, the country will get ready and easily-accessible market for its array of goods. Needless to say, there is a lot of unexploited potential in the region in terms of market capacity. Furthermore, with the right mix of trade policies and incentives, there is no reason why Kenya cannot leverage its relatively stronger economy and be the hub of commerce and a financial centre in the region.

In its ambitious push to transform the country through a rapid economic growth, Kenya has embarked on forging new partnerships in Africa and beyond. In this grand project, traditional partners need not worry as Kenya has no plan to abandon them for newfound friends. In fact the country is looking to strengthen old economic ties as it explores new ones.

Unfortunately Kenya’s effort to expand its trade horizon has been erroneously perceived as jettisoning old friends like the West for new ones like the East. Nothing can be further from the truth. The US and UK, and a number of other Western nations, remain Kenya’s key trading partners. And just because the Jubilee administration is keen to expand the economy by hunting for more investments and trade in Africa and the Asian countries, does not mean the West cease to be our partner. Kenya will look for investors wherever they are and signs trade agreements wherever they can be obtained so long as these deals adhere to acceptable international norms.

Jubilee’s focus on Africa is informed by the fact that trade among countries on the continent has not been given the attention it deserves. The world is united in the belief that Africa is an economic giant that is currently in deep slumber.

Fingers have been pointed at leaders who have failed to craft appropriate strategies to awaken this giant. However, the current crop of young and energetic African leaders apparently appear on the right track if a raft of trade deals being struck between countries is anything to go by.

Regional trading blocs are also increasingly surmounting challenges that have been holding them back and now they look set to play the economic transformative role they have been promising for years. If things move at this pace, soon economic co-operations and not divisive politics will be the most defining feature on the continent.

Everywhere you go, there is a palpable feeling that this is Africa’s century. It is heartening to see that Kenya is increasingly becoming a key player in this grand plan with Jubilee’s top leadership among the key drivers.

It is particularly exciting because the newfound optimism regarding the continent’s fortunes are coinciding with Kenya’s robust initiative to step up its manufacturing sector as it briskly marches towards middle-income status.