Nairobi: The government seeks to profile fresh market opportunities in newly independent South Sudan Sudan and the Democratic Republic of Congo to expand the country’s export trade. The Export Promotion Council (EPC), which is charged with boosting the country’s external trade, said it required consultants to undertake market research studies on the two countries with the aim of establishing business opportunities and potential distribution channels for Kenyan products.
The general manager in charge of Market Development at the EPC, Maurice Abuom, said that it was important to consolidate trade with DRC and South Sudan – both huge importers of value-added goods and services.
“Most of our [Kenya’s] trade is concentrated in the Common Market for Eastern and Southern Africa and the East African Community and this deliberate marketing attempt to consolidate our position even further is crucial,” Mr Abuom said.
Uganda is currently Kenya’s single largest export market, although competition from other countries both within and outside the region risks eroding that position, piling pressure for the diversification of targeted export markets. Statistics show that Kenya’s exports to Uganda in 2010 stood at Sh52.1 billion, the largest in both trading blocs.
Although trade between Kenya and DRC is significantly lower in volume, it has also been growing over the past few years. In 2010 Sh12.79 billion worth of goods were exported to the mineral-rich state up from Sh11.32 billion the previous year, a trend maintained over five years.
EPC said it didn’t target specific major products for trade with the DRC but saw opportunities in steel plates, oils, perfumes as well as cement.
“DRC presents a vibrant economy which imports virtually all its products but a scientific approach is still needed before venturing into this market” Mr Abuom added.
South Sudan also promises big opportunities for exports from Kenya because the country eyes mega projects such as the construction of vital infrastructure facilities such as roads and offices that are critical to the new leadership as it strives to establish governance structures.
By opening up alternative markets, Kenya could also side-step the threats by Uganda to open up new trade routes in the region. Uganda recently announced new trading routes with Tanzania, through a railway connecting the port of Tanga to Uganda despite a spike in transport costs. The route effectively cuts off Kenya especially in the export of refined oil products.
Already, the EPC says that trade between Uganda and South Sudan has surpassed that between the newly-formed state and Kenya.
