Kenya, UAE seal agreement to boost investment inflows
Kenya and United Arab Emirates (UAE) have signed a Comprehensive Economic Partnership Agreement (CEPA), marking a new era in their trade relations.
The agreement will secure for Kenya crucial supply chains, stimulate investments in key sectors, and improve business accessibility in both countries.
Investment, Trade and Industry Cabinet Secretary of, Rebecca Miano and her UAE counterpart, Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi in Dubai signed the agreement in Dubai.
Miano said that Kenya is focusing on trade to drive economic growth, enhance industrial output, and expand export opportunities.
“The Kenyan leadership has identified trade as a key lever of economic growth and transformation. We are on a national development path that seeks to increase industrial output, enhance the quality and global competitiveness of that output, and expand the opportunities for its export,” she added.
Accelerate investments
The CEPA is expected to accelerate investments in areas with high potential such as logistics, healthcare, tourism, infrastructure, and Information and Communication Technology (ICT). It will also provide a platform for small and medium enterprises (SMEs) to co-operate and expand in both countries.
Zeyoudi hailed the agreement as a significant step in their CEPA programme as it demonstrates UAE’s commitment to strengthening economic ties with Africa. It will also create new opportunities for businesses and investors in both countries. The CEPA with the UAE is expected to play a significant role in these efforts by enabling Kenyan exports to reach important markets in Asia and the Middle East and stimulating investment inflows to further develop national capabilities.
Kenya’s economy, one of Africa’s most promising, saw its real gross domestic product (GDP) growth accelerate from 4.8 per cent in 2022 to an estimated 5 per cent in 2023. It is projected that the real GDP will grow between 4.5 per cent and 5.2 per cent in 2024. Kenya’s services sector, which contributes to 53.6 per cent of the country’s GDP, and the agriculture sector, which makes up about a quarter of the national GDP, present vast opportunities for UAE businesses looking to expand into the region.
Non-oil trade between Kenya and the UAE has grown significantly, from $2.1 billion (Sh306.6 billion) in 2022 to $3.1 billion (Sh452.6 billion) by 2023. Kenya’s imports from the UAE are diverse, including mineral fuels, plastics, and machinery, while main exports are coffee, meat, fruits, and live plants.
Meanwhile, the CS is leading Kenya’s delegation at the World Trade Organisation’s 13th Ministerial Conference (MC13) in Abu Dhabi, UAE. The meeting which started yesterday and runs up to Thursday aims to foster equitable and sustainable agricultural practices globally.
Some of the key trade-related policies expected to be covered during the conference include agriculture, fisheries subsidies, sustainable development, digital trade, and reforms to the existing multilateral trading system.
Miano is expected to facilitate a number of deliberations at the Ministerial level, including meetings with the African Ministers of Trade, the African, Caribbean, and Pacific Group, and the Coalition of Trade Ministers on Climate.
She will also participate in conversations on Trade and Sustainable Development, Industrial Policy, and Trade and Inclusion. At the bilateral level, Miano will consult with various trade ministers to enhance bilateral trade relations between their countries and Kenya, according to a statement from the ministry.
Agriculture sector
The caucus aims to address contemporary challenges in the agriculture sector such as food security and trade-related distortions.
“To achieve her interests, Kenya will participate in a number of deliberations on existing frameworks including regional groups at the Ministerial level such as the African Ministers of Trade meeting; the African, Caribbean, and Pacific Group Ministerial Meeting and the Second Meeting of the Coalition of Trade Ministers on Climate,” Miano said.
