Kenya to Aggressively Tap Chinese Market

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Last updated at: (Beijing Time) Monday, March 25, 2002

Kenya to Aggressively Tap Chinese Market

The Kenyan government will explore various ways and means to aggressively tap the Chinese market to balance the trade between the two countries. The trade relations between the two countries have been developing in a fast manner, but the trade balance is still in favor of China, therefore, greater efforts are needed on the Kenyan side to open the huge market of China.

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Kenya asks more market in China

The Kenyan government will explore various ways and means to aggressively tap the Chinese market to balance the trade between the two countries, a Kenyan minister said Friday in Nairobi.

While meeting a large Chinese business delegation, Kenyan Minister of Planning Adhu Awiti said that the economic and trade relations between the two countries have been developing in a fast manner, but the trade balance is still in favor of China, therefore, greater efforts are needed on the Kenyan side to open the huge market of China.

He said that Kenya is considering setting up more trade fairs and exhibitions in China and even sending special trade missions to China to familiarize Chinese consumers on Kenya's primary products, such as vegetable fibers, tea, coffee, fish, textile yarn, raw hides and skin.

On the other hand, the Kenyan government will find out every possibility to introduce new products to China, the minister said, adding that he was optimistic that by strengthening promotional campaigns in China, Kenya's export to the Asian country with 1.3 billion people is bound to increase.

Meanwhile, the minister called on the Chinese government and business people to invest more in Kenya as the east African country is abundant with business opportunities.

"China has continued to be our brother in the times of need. Various projects and programs in Kenya could not have been completed by this year without the much needed grants and loans from the Chinese government," he said, citing the Moi International Sports Complex, Edloret Hospital, supply of medical equipment among others.

He said that besides traditional cooperative projects, Kenya welcomes Chinese business people to invest in sectors such as assembly of telecommunications equipment, assembly of agricultural machinery, consumer industry, pharmaceutical, assembly of motor vehicles and power generation.

Kenya and China are both developing countries and China's technology has been found very practical in Kenya, he said. He hoped more Chinese enterprises will set up joint ventures with their Kenyan counterparts to speed up technology transfer to the country.

China aims to further economic cooperation

Yu Xiaosong, head of the Chinese business delegation, said that relations between China and Kenya has developed in an all-round manner, and the delegation's visit is aimed at furthering the economic and trade cooperation between the two countries.

Yu, who is also Chairman of the China Council for the Promotion of International Trade and China Chamber of International Commerce, said that the real trade volume between China and Kenya should be higher than the current figure, especially taking into account those Kenyan products exporting to China via a third country.

Although China did not import tea from Kenya directly, Kenya's tea can be found in many of China's deluxe hotels. Yu said that this fact indicated that Chinese and Kenyan business people still lack direct contact chances, which should be promoted by the two governments.

Joint efforts in technology

On the same day, Kenyan Assistant Minister Albert Ekirapa also met Yu and his entourage. Eirapa said that balance of bilateral trade remaining in favor of China is due to the nature of products traded between the two countries.

While China exports to Kenya sophisticated machinery and equipment, electronics, vehicles and medicaments, the Kenyan exports mainly consist of traditional low valued primary products such as tea and coffee.

He hoped that the Chinese government will assist in technology transfer to Kenya by encouraging more industrial enterprises to invest in Kenya, adding that Kenya's investment incentives in the Export Processing Zones will help those enterprises to get bountiful profits.

Yu said that most of the members of his 32-people large delegation are from the industrial sector, which means that the delegation has come to Kenya mainly looking for investment opportunities.

The chairman expressed his confidence that through the joint efforts of both governments, the trade and economic relations between the two countries are bound to expand in the future.

Chinese businessmen expected to invest more in Agriculture

On Friday, Kenyan Minister of Agriculture Bonaya Godana also met the Chinese delegation, saying that he hoped Chinese business people will invest more in Kenya's agricultural product processing sector and more Chinese enterprises will attend the Nairobi International Show.

He disclosed that Kenya will organize another such show in its port city of Mombasa this year, which is expected to attract a considerable number of business people around the world.

The Chinese delegation arrived here on Thursday for a three-day visit to the eastern African country.

Trade Relations and Economic and Technical Cooperation between China and Kenya

Since the establishment of diplomatic relations, the Chinese Government has provided assistance for many Kenyan projects such as stadium, methane-generating pit, hospital and road construction. The volume of bilateral trade has increased considerably in recent years. Main merchandise Kenya imports from China includes household electric appliances, industrial/agricultural tools, textiles, groceries, construction materials, medicine, etc. China imports black tea, coffee and leather wares from Kenya. The volume of bilateral trade between China and Kenya was US$ 136.933 million in 2000, with US$133.083 million of export from China and US$3.85 million of import by China.

The mutually beneficial cooperation between China and Kenya started in 1985. At present there are more than 20 Chinese companies actively working in Kenya, including Jiangsu International Economic and Technological Cooperation Corporation, Sichuan International Economic and Technological Cooperation Corporation, etc.>>details

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