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Kenya’s business community wants to double its current $60 million in trade relations with South America, in order to reduce its reliance on traditional export markets.
Richard Ngatia, president of the Kenya National Chamber of Commerce and Industry (KNCCI), revealed the development on Monday’s episode of CNBC TV’s “Closing Bell” program.
“Kenya wants to improve relations with South America. The trade between Kenya and South America as a whole is now quite limited, thus there is a lot of room for expansion in this area. We wish to determine how we can best expand our exports for this reason,” Ngatia said.
Ngatia delved into the potential areas of collaboration between Kenya and South American nations, including agribusiness and the digital economy.
Kenya and South America, he noted, share a common factor in their agricultural production of goods like maize and coffee, among others.
“There is opportunity to expand business and export fresh goods like avocados, tea, and many others in the agricultural industry. We won’t overlook examining individuals’ interests in e-commerce and fintech as well.
Ngatia has repeatedly reassured partners that KNCCI is prepared to create an environment that is favorable for business, develop the capabilities of businesses, bolster economic diplomacy, and increase exports to foreign markets.
“We wish to explore market expansion opportunities and ways to combine our coffee with theirs. There is a ton of unrealized potential, and according to the Chamber, South America offers a sizably unexplored market, notably for tea, coffee, and fresh food.
“There is undoubtedly an imbalance with South American imports totaling over $150 million and Kenyan exports to that region of the world totaling about $60 million. We intend to make things right.
Ngatia emphasized the significance of streamlining travel between South American nations and Kenya.
“How we might arrange for direct flights between Kenya and Bogota is one of the things we are looking into to help promote our goods. By doing so, we will increase our capacity and lower the price of our goods for Colombia.
“I think there will definitely be new opportunities for Kenyan businesses, particularly in the agricultural and horticultural sectors, if we can establish a direct flight to Colombia.”
Ngatia further said that KNCCI also acknowledges that South America is a sizable and varied market with a variety of nations and consumers with various tastes.
“The Chamber is attempting to modify its export strategies to meet the unique requirements of every market. We are looking into opportunities to export value-added goods to Colombia in addition to conventional agricultural products like tea and coffee, such as processed foods and textiles.”
Ngatia reiterated the significance of collaborating with the government and other stakeholders in order to find and publicize the aforementioned opportunities.
He discussed the important industries and markets in the area that are relevant to the business community in the Pan-African market.
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He said the Chamber acknowledges the UK as a vital commercial partner for Kenya and sees great prospects to enhance trade in a variety of industries.
“We also want to look at manufacturing and development collaboration. The delegation’s main goal is to encourage more commerce and investment between Kenya and the UK. We are mostly interested in the tourism sector. Kenya is a well-liked travel destination because of its natural beauty, beaches, and cultural attractions,” Ngatia said.
“Of course, we won’t overlook the energy sector, where Kenya has made notable progress in growing its renewable energy industry, which also includes geothermal, wind, and solar energy.
“With UK-based businesses that are experts in renewable energy technology, we are eager to explore prospects for cooperation and investments in Kenya’s energy sector,” Ngatia said.