Trade expo open window to woo Chinese investors

Investment, Trade and Industrialisation Cabinet Secretary Moses Kuria is set to lead a ministerial delegation to the third China-Africa Economic and Trade Expo.

The theme of the event, due in Changsha, in China’s Hunan Province, is “Common Development for a Shared Future”, which provides a platform for trade and investment dialogue between China and its African counterparts.

For 14 years in a row, China has been Africa’s largest trading partner, having displaced the United States in 2009. The volume of trade between China and Africa reached $ 282 billion (Sh39.6 trillion) last year, four times the volume of trade between the US and our continent over the same period. In the past decade, China also maintained the lead as Africa’s largest investor, boosting economic growth of the continent by up to 20 per cent. In the first quarter of this year, its new direct investment in Africa improved by 24 per cent year on year to $1.38 billion.

Kenya, among the guest of honour countries when the expo was first staged in 2019, will be showcasing investment opportunities in diverse sectors like green energy, blue economy, affordable housing, manufacturing, digital superhighway and agro-processing to potential Chinese investors. Nairobi’s relations with Beijing have largely been discussed in terms of infrastructure development in recent literature.

As a Belt and Road Initiative (BRI) implementing partner, Kenya has seen construction of key infrastructure such as the standard gauge railway, the Nairobi Expressway, road networks and expansion of air and sea ports. These hard infrastructure outcomes have certainly been very visible. Notably, the Kenya-China partnership goes beyond infrastructure development. Trade, a key pillar of BRI, has equally blossomed between them.

In August last year, Kenya became the first African country to export fresh avocados to China. In the three months to May 2023, exports of the commodity to China hit $64.38 million, bringing numerous benefits to thousands of smallholder farmers. In the upcoming expo, Kenyan anchovies will debut in the Chinese market in what could bring boundless opportunities to the coastal fishermen.

Today, 21 African countries enjoy zero-tariff treatment for 98 per cent of their exports to China. Kenya must now take advantage of China’s decision to increasingly open up its market to African products. Similarly, with excess industrial capacity at home and seasoned entrepreneurs, Kenya can attract more Chinese investors. Nairobi is home to 400 Chinese enterprises which collectively employ over 50,000 Kenyans.

Some of these firms are pioneering innovative and affordable products across a whole range of local industries. The government’s key development agenda spanning housing, food security, digitisation, healthcare and infrastructure upgrades can easily be realised in partnership with Chinese investors. This year marks the 60th anniversary of diplomatic ties between Kenya and China. So much has been achieved yet the potential is boundless. Banking on the enduring political goodwill and shared visions, the CS should leverage the expo to reboot trade and economic partnership and strengthen the bond.

Dr Adhere, PhD, is a scholar of international relations with a focus on China-Africa development cooperation. @Cavinceworld