I will grow private sector to manufacture and trade

First off, as a politician seeking to be President of this country, I regard the private sector as the engine of the economic growth and job creation. Secondly, I believe the private sector and the government need to work extremely closely if we are to progress. Thirdly, I wish to see Kenya become a trading nation that manufactures and sells products a broad under the label of ‘Made in Kenya’ and the private sector must lead that drive. 

Fourth, I believe we need to tackle corruption ruthlessly, both in the private sector and in government, if we the sector is to deliver to the country.

Over, the years, Kenya has retained a vibrant and resilient private sector. Our private sector has sustained our economy and given us a competitive edge in the region even in difficult times, like the 1990s. During the Grand Coalition Government, we had the Prime Minister’s Round Table with the private sector that created a mechanism for the much-needed collaboration. The round table enabled the two sectors to clear critical bottlenecks for the good of business and the nation.

My vision is to see the country empower the private sector and make the sector turn Kenya into a trading nation, identified with specific products and services in the African and global export trade market. Exports, especially of finished products, will increase our revenues, create jobs, give us foreign currency reserves, boost our national saving and drive our international competitiveness.

To realise this goal of private sector-led export-oriented trade, the Azimio government will prioritise industrialisation. It will be an industrialisation policy that is export-minded and that allows the private sector to drive the export agenda.

Tariff exemptions

The government will need to support the private sector to lead a shift from exporting raw materials and agricultural produce and venture into industrial manufacturing with eyes on the international markets. In some 10 years, we can shift the country from light industry labour-intensive production to heavy and chemical industries producing and exporting things like iron and steel and IT products for local and global markets.

The government will have to set up a body dedicated to long-term planning and regular review meetings on our international trade and export agenda. As a government, we will not assume that the private sector is doing the planning: We will join you in doing the planning.

As happened when I was Prime Minister, we will have government-sponsored Monthly Trade Promotion meetings. These will bring together highest-level government officials, key ministries, exporters, researchers, education institutions and trading companies for exchange of ideas, information and goals to improve co-ordination and mutual understanding between private and public sectors. We will unveil an award scheme for excellent exporters and help them to push up their share of the African and world market and their contribution to the local and global economy. 

The government will offer an aggressive support to the private sector through tax breaks, subsidised credit, state guarantees for private sector borrowing, tariff exemptions and preferential access to imported inputs required to produce export products. It will also pursue a deliberate policy of targeting and supporting industries with realistic chances of penetrating the global market based on prevailing situation in the country and the world. 

Overcome challenges

Business and trade will be part of our diplomacy. We will pursue an aggressive policy of helping Kenyan companies and consortiums to win contracts in foreign markets. Our diplomacy will have to be business-minded in support of our private sector. We will pay particular and close attention to helping small and medium-sized companies to overcome challenges in local and overseas markets and give them export support services and diplomacy interventions. 

We will revamp the Export Promotion Council, particularly its capacity to provide informational and institutional services to domestic producers and exporters. We will provide firms with economic diplomacy and support them with political and economic intelligence, introduction and advice to exploit opportunities in existing and new markets.

The Azimio government will provide a level playing field between small and medium-sized firms and the big corporations so that the latter do not thrive while small ones, which could be our future multinationals, are left to struggle.

A very important plan of support to the private sector is to have the government invest in education, training, research and development, in addition to creating an efficient bureaucracy and strong financial systems in support of the private sector. Firms need continuous research to help them innovate, upgrade and compete and government has to help it happen. We will particularly invest in the knowledge economy to help invigorate the ICT sector and make it the engine of growth and become a source of foreign exchange. 

Finally, we will maintain a constant and well-functioning co-ordination between the public and private sectors, open economy orientation and policy that supports, not handicaps, the private sector and exporters. We must put the private sector on the driving seat towards a vibrant, industrial and manufacturing nation that can satisfy the local demands and export to the rest of the world.

(This is an abridged version of the speech by Mr Odinga at a breakfast meeting with Kenya Private Sector Alliance members yesterday.)