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January 2017

23 January 2017

Ethiopia and Côte d’Ivoire economies expected to grow the most in Africa this year

By Staff | Capital Ethiopia

Ethiopia and Côte d’Ivoire are both expected to grow at or above 8 percent this year, according to a new report by the World Bank. The Global Economic Prospect report shows that large infrastructure investment programs will continue to support robust growth among agriculture exporters. This is the main reason that the projected growth rate of the two countries is expected to increase.

Ethiopia is expected to grow at 8.6 percent both in 2018 and 2019.

For countries like Burundi and The Gambia, political fragility is expected to exert a drag on growth while commodity imports are expected to help Cabo Verde grow at a 3.3 percent, Mauritius is to rise moderately to 3.5 percent, and Seychelles should slow to a 3.5 percent clip as uncertainty in Europe weighs on tourism, investment, and trade flows.

Looking at the just past year, growth in the Sub-Saharan Africa region is estimated to have slowed to a 1.5 percent rate in 2016, the weakest pace in over two decades, as commodity exporting economies adjusted to low prices. On a per capita basis, regional GDP contracted by an estimated 1.1 percent. South Africa and oil exporters, which contribute two-thirds of regional output, accounted for most of the slowdown, while activity in non-resource intensive economies generally remained robust.

In South Africa, growth slowed to 0.4 percent in 2016, reflecting the effects of low commodity prices and heightened governance concerns. The region’s two largest oil exporters, Angola, where growth slowed to a 0.4 percent rate, and Nigeria, which contracted by 1.7 percent – faced severe economic and financial strains. Other oil exporters were also hit hard by low oil prices, with Chad contracting by 3.5 percent and Equatorial Guinea shrinking by 5.7 percent.

Looking into the possible risks globally, the report states that heightened policy uncertainty in the United States and Europe could lead to financial market volatility and higher borrowing costs or cut off capital flows to emerging and frontier markets. A reversal of flows to the region would hit heavily traded currencies, like the South African Rand, hard.

A sharper-than-expected slowdown in China could weigh on demand for export commodities and undermine prices. Continued weakness in commodity prices would strain fiscal and current account balances, forcing spending cuts that could weaken recovery and investment.

Source: https://asokoinsight.com/news/ethiopia-and-cote-divoire-economies-expect...

23 January 2017

African tech startups funding rises by 17%

By Staff Writer | IT News Africa

A report released today by Disrupt Africa, Disrupt African Tech Start Up Funding Report, showed that 146 startups from across the African content raised $ 129,133,200 in funding over the course of 2016. This is coupled with a 16.8% rise from 2015 in the number of African tech startups who secured funding this was is spite of the overall amount of funding declining from 2015.

“2016 was another great year for African tech startups and investors. Our ecosystem progressed in leaps and bounds over the course of the year, which is evidenced by strong growth in the number of startups raising funding, and an encouraging expansion of ecosystem activity across the continent. We’re excited to present the Disrupt Africa Tech Startups Funding Report 2016, and hope it helps chart the rise of Africa’s entrepreneurs,” said Gabriella Mulligan, co-founder of Disrupt Africa.

The Numbers

The report analyzed nine sectors with the fintech sector receiving the most backing in 2016 with 24% of the total, raising a combined $31.4 million. This highlighted the massive emphasis placed on technological advancements in the finance sector in Africa.

The three most popular investment destinations are South Africa, Kenya and Nigeria, between the three nations they account for 80.3% of funds secured. The fourth most popular country is Egypt who saw their growth raise an impressive 100%.

Full article available here.

Source: https://asokoinsight.com/news/african-tech-startups-funding-rises-by-17

23 January 2017

Zimbabwe considers scrapping royalties on gold mining

By Staff Writer | The Source Zimbabwe

Zimbabwe is considering scrapping royalties levied on gold producers in order to boost output, the minister of mines, Walter Chidhakwa has said.

Gold miners currently pay three percent royalties after Finance Minister Patrick Chinamasa lowered the fees to 5 percent from 7 percent in 2015 and to the current level in 2016.

According to the Zimbabwe Revenue Authority (ZIMRA) mining royalties contributed $62,9 million to revenue in 2016. Zimbabwe earned $914 million from 21 tonnes of gold in 2015. Bullion output in the southern African nation has risen annually since 2008 when it produced three tonnes, its lowest ever to 22 tonnes last year although it is still well below the peak output of 30.2 tonnes achieved in 1999.

Small-scale miners have contributed nearly 40 percent of total output since 2015 when government decriminalized artisanal mining and embarked on an aggressive collection strategy, which saw the country’s sole buyer of gold Fidelity Printers set up buying depots across the country.

Mines and minerals development minister Walter Chidhakwa on Friday evening told a gold producers awards gala that government was considering to removing royalties on gold earnings.

“Government can not whip miners to force them to sell their gold to Fidelity …..but we can offer an incentive,” said Chidhakwa.

“We have been in discussions with the Minister of Finance to see how we can further incentivize miners and we are of the idea that we do away with royalties. Government does not even get much from royalties anyway but as a tax they stifle the miner.”

Gold is Zimbabwe’s main export and, along with tobacco and platinum, accounts for the bulk of the country’s foreign currency earnings.

Source: https://asokoinsight.com/news/zimbabwe-considers-scrapping-royalties-on-...


January 2017

20 January 2017

Nakumatt appoints ex-Tesco executive ahead of 25pc stake sale (Kenya)

By Brian Ngugi | The East African

Regional supermarkets chain Nakumatt has appointed a former executive of British retail giant Tesco to run its marketing activities.

The appointment comes at a crucial time for the retailer as it prepares to complete a transaction offloading a 25 per cent stake to a deep pocketed investor who is expected to pull it out of a debt crisis.

In the management shakeup that introduces three new operational positions, Nakumatt said on Thursday, it has appointed Mr Andrew Dixon – who once served as an executive director at Tesco – for the position of chief marketing officer.

“Nakumatt Holdings is happy to announce the appointment of Mr Andrew Dixon, Mr Manoj Warrier and Mr James Gakumo as the new chief marketing officer, chief information officer and chief risk officer respectively,” Nakumatt managing director Atul Shah said in a statement.

Mr Shah said that Nakumatt, Kenya’s biggest retail chain with 61 stores across East Africa, will be seeking to tap the three executives’ vast experience in retail operations gained from their previous local and international postings.

“The new executives will be charged with the responsibility of reinvigorating the key dockets as the retailer seeks to scale new heights,” said Mr Shah.

The privately-owned retailer added the appointments are also geared at enhancing Nakumatt’s corporate governance standards in line “with the ongoing organisational restructuring demands.”

“The new appointees will join an existing team of experienced executives led by Managing Director Atul Shah and long serving regional operations and strategy director Mr Thiagarajan Ramamurthy and chief business development officer Neel Shah among others on the firm’s C-suite,” it said.
New shareholder

Analysts speculated the management changes could be tied to share sale conditions ahead of the 25 per cent stake sale to the new shareholder.

The retailer on Wednesday revealed that it was in the final stages of the deal in what insiders have said is part of a plan to retire the supermarket chain’s heavy debt load.

The retailer has set the cost of the 25 per cent stake at $75 million, potentially valuing the entire business at about $300 million.

The retailer is also seeking approval to sell a 51 per cent stake in its Tanzanian unit to Ascent Investment Ltd.

Source: https://asokoinsight.com/news/nakumatt-appoints-ex-tesco-executive-ahead...

20 January 2017

East African economies growth could falter on drought, election jitters

By Njirani Muchra | The East African

The ability of East African economies to maintain their growth trajectory amid the slump in other parts of the continent could face a serious test in 2017.

In recent years, the region has been considered the bright spot in sub-Saharan Africa, recording an average economic growth of 4.9 per cent against a continental average of 1.5 per cent last year.

The impressive growth in East Africa is projected to be maintained, with the World Bank’s Global Economic Prospects 2017 report showing that Tanzania will post 7.1 per cent growth, Kenya and Rwanda 6 per cent, Uganda 5.6 per cent and Burundi 2.5 per cent.

But the economies are facing serious threats from the effects of drought, volatile elections, low commodity prices, pressure on trade, dwindling tax collections, weakening currencies and worries over a slump in foreign direct investment and cuts in development aid.

According to analysts, the prolonged economic growth that East African countries, with the exception of Burundi, have enjoyed will slow down unless governments find ways of navigating the strong headwinds.

Ken Gichinga, chief economist at Mentoria Consulting, said Kenya will have to contend with deteriorating financing conditions due to interest rate capping; Tanzania will need to overcome historical challenges of low revenue collection; and Uganda will need to stimulate the economy to counter the effects of dwindling agricultural production.

In addition to putting some 8 million people at risk of starvation, the prolonged drought is causing a surge in food prices, increasing inflationary pressures.

“A prolonged drought over the past year resulted in a surge in food prices, especially in East and Southern Africa. Higher food prices will be a significant driver of inflation in 2017,” states the Economic Insight: Africa report by the Institute of Chartered Accountants in England and Wales (ICAEW).

Investors on Hold

Elections in Kenya and Rwanda in August are expected to affect the entire region.

The often volatile elections in Kenya portend domestic risks that could moderate growth prospects. These include the possibility that investors could defer decisions until after the elections, while election-related expenditure could result in cutbacks in infrastructure spending.

“Economic growth in Kenya has historically been lower in election years owing to firms maintaining a more cautious stance. Similar events could transpire in 2017 attributable to election anxiety,” said Stanbic Bank regional economist Jibran Qureishi.

A cautious approach among investors could impact FDI flows in the region. Although East Africa recorded the highest share of FDI across Africa, achieving 26.3 per cent of total projects in 2016, this was still 2 per cent less than in 2015.

Although flows into East Africa have since rebounded, with forecasts showing an increase in net FDI of 9 per cent in 2016 and a further 10 per cent in 2017, much of this is going into the extractive sectors.

Aid Cuts

There is also concern that an anticipated cut in aid, particularly by the US government under the Donald Trump presidency, could further hamper efforts to sustain growth.

The ICAEW report says that the US is sub-Saharan Africa’s principal benefactor in terms of bilateral official development aid.

However, initial signs point to an expansionary fiscal stance under the Trump administration, and some spending cuts may be necessary to accommodate increased infrastructure expenditure.

“This raises the risk that the world’s largest economy could rein in development aid, adversely affecting dependent countries such as Ethiopia, Kenya, Tanzania, Nigeria and the Democratic Republic of Congo,” states the report.

Other concerns for East Africa’s economies are from pressures on trade and revenue collection.

As global trade continues to weaken, East Africa is also feeling the effects after containerised trade volumes decreased by 3 per cent in the first three quarters of 2016, according to the Maersk Group.

Source: https://asokoinsight.com/news/east-african-economies-growth-could-falter...

20 January 2017

Fifteen best countries for business in Africa

By Staff Writer | IT News Africa

The African continent is buzzing with potential. Rich in natural resources, a hardworking population, and huge gaps and opportunities for anyone who wants to succeed in business.

Yes there are challenges, but there is also huge potential for growth in almost any sector.

Based no Forbes‘ list, we have compiled Africa’s top countries for business. The list was compiled by rating 139 nations on 11 different factors: property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.

Drawing from the list from Forbes, this list highlights the 15 Best Countries For Business in Africa:

Kenya is the economic and transport hub of East Africa, seeing them placed 105th overall. Although poor infrastructure continues to hamper Kenya’s potential for economic growth, the country ranks highly in Innovation, 36th, and Investor Protection, 80th, this places them 15th on this list.

Northeast African country Egypt, 103rd in the overall list, has been characterized by a uncertain political, policy and security since 2011. Egypt performs favorably in the ranks of Red tape, 34th, and Market performance, 2nd, which sees them sit in 14th spot on this list.

13) Liberia:
West African coastal country Liberia is ranked 96th on the overall list. Liberia is a low income nation that relies heavily on foreign assistance. It is blessed with the climate for agriculture and is rich in mineral resources. With rankings 33rd in Red Tape and a Tax Burden rating of 66th, Liberia is 13th on this list.

12) Ghana:
Ghana is a West African country which is ranked 90th in the overall list. Ghana has a market based based economy with relativity few policy barrier to trade and investment. Ghana is blessed with an abundance of natural resources and with ratings of 36th Personal Freedom and 53rd in Property Rights, Ghana is the 12th best country for business in Africa.

Completely landlocked by South Africa, Lesotho is ranked 88th in the overall list. Although Lesotho has a heavy reliance on South Africa, their ratings of 47th in Trade Freedom and 59th in Corruption sees them placed 11th in this list.

10) Tunisia:
Ranked 87th overall, North African country Tunisia has long be hailed as an African success story due to its diversified market-orientated economy. With rankings such as Market Performance, 39th, and Personal Freedom, 42nd, Tunisia is ranked the 10th best country for business in Africa.

9) Zambia:
Southern African country Zambia, ranked 86th overall, has had one of the fastest growing economies over the last 10 years. In spite of Zambia’s lack of diversification and over reliance on copper trading their rankings of 51st in Tax Burden and 66th in Innovation, sees them place in at 9th in this list.

8) Senegal:
Senegal is a West African country that is placed 81st in the overall list. The economy of this country is driven by mining, construction, tourism, fisheries and agriculture. Although the country has a heavy reliance on direct foreign investment, donor assistance and remittances, their rankings in Personal Freedom, 42nd, and Innovation, 50th, sees Senegal ranked as the 8th best country for business in Africa.

7) Rwanda:
East African country Rwanda is placed 78th in the overall list. It is a rural country where 90% of its population is involved in sustenance agriculture and minerals. Rwanda’s main sources of foreign exchange are tourism, minerals, coffee and tea. With rankings such as 33rd in Property Rights and 47th in Innovation, Rwanda are the 7th best country for business in Africa.

6) Cape Verde:
An Island off the northwest coast of Africa, Cape Verde is number 70 in the overall list. The economy is service-oriented with commerce, transport, tourism, and public services. Although the country suffers with a poor natural resource base, they are ranked 1st for Personal Freedom and 14th in Monetary freedom, which sees them placed as Africa’s 6th best country for business.

5) Botswana:
This Southern African country, ranked 68th overall, fueled by diamond mining has maintained one of the worlds highest economic growth rates since 1996. A downturn in the global diamond market as well as water and power shortages have seen Botswana growth slow slightly but with rankings such as 28th in Corruption and 44th in Property Rights, Botswana is Africa’s 5th best country for business.

4) Namibia:
The Southern African country is ranked 63rd on the overall list. Namibia is the worlds 5th largest producer of Uranium and has an economy that is heavily dependent on the extraction and processing of natural mineral resources for export. Namibia is ranked 5th in Market Performance and 55th in Trade Freedom, this sees them ranked 4th in this list.

Full article available here.

20 January 2017

AfDB backs construction of Uganda-Rwanda highway

By Antony Kiganda | Construction Review Online

The construction of Uganda- Rwanda Highway is now set to kick off after the African Development Bank (AfDB) signed loan agreements of $151 million to finance the project.

According to the officials of the Multinational Busega-Mpigi Express Highway it will be able to links Uganda and Rwanda on a new alignment with four grade-separated interchanges.

The road is expected to have 23.7 kilometer highway with a four express lanes hence making it one of the biggest road that will border the region.

The officials added that the project is estimated to cost a total $192 million has includes capacity building for the Ministry of Works and Transport; and training and capacity building for cross-border women traders at Mirama Hills and women and youth vendors in Busega Market.

“The road project will be one of the greatest and we will ensure that its completed on time as our main mandate is to deliver the project” added the officials

He added that the project will reduce the current traffic that is always witnessed on the Busega-Mpigi Express Highway, it will have an Operations and Maintenance Concession to address its future requirements for maintenance.

The signing of the loan agreements was facilitated by AfDB’s East Africa Regional Development and Business Delivery Office Director General Gabriel Negatu who thanked the Ugandan government for its commitment to the development of infrastructure in the country.

Matia Kasaija, Uganda’s Minister of Finance, Planning and Economic Development thanked the Bank for its support while highlighting the vital role of the highway in improving transport services in central Uganda and its contribution to regional integration.

The African Development Fund officials said that they expect the project to change the face of the country once completed and above all to be completed within the time frame.

Source: https://asokoinsight.com/news/afdb-backs-construction-of-uganda-rwanda-h...


January 2017

12 January 2017

Kenya’s exports to East Africa drop by $105 million

By Kevin Kelly | The East African

Kenya’s exports to the region dropped by the largest margin in three years in the third quarter of last year, to $275.7 million from $380.3 million in the first nine months of 2015, new data shows.

All countries in the region, with the exception of the Democratic Republic of Congo, cut their uptake of imports from Kenya, according to a report from the Kenya National Bureau of Statistics.

While the drop in exports has been attributed to encroachment in key market segments by Chinese products, local factors like taxation, new competing industries in export markets and instability in South Sudan have contributed to the trade down turn.

Goods from China, some of dubious quality, have flooded the market, making the Asian giant the biggest exporter to the region.

Relying on Africa

Kenya relies on Africa to absorb more than 40 per cent of its manufactured exports. The data shows a 30 per cent drop in exports to Uganda to $152.1 million in the period under review, from $228.18 million over the same period in 2015.

“Africa remained the leading destination of the country’s exports, accounting for 40.6 per cent of the total during the review period. Within Africa, Uganda was the largest market for Kenya’s exports, accounting for 11.3 per cent of total export earnings, followed by Tanzania, which accounted for 5 per cent of total export earnings in the third quarter of 2016,” the report notes.

Tanzania’s imports from Kenya dropped to $67.5 million in the third quarter of last year, from $78.2 million over the same period two years previously.

Rwanda, which in 2015 was the only country that had increased its imports from Kenya, also recorded a drop to $43.12 million from $56.55 million. It was only DRC that recorded an increase at $51.3 million from $48.8 million.

The KNBS figures show that imports from China rose to $935.4 million in the third quarter of 2016, from $909.8 million over the same period the previous year, making it the leading source of imports in the Asian region.

Kenya has also seen its trade with the region drop significantly over the quarter to $359.4 million, from $480.1 million over the same period in 2015.

Kenya exports edible oil, fabrics, food, animal products, tobacco and cement to the region, but the growing push by local firms to set up subsidiaries in the region has also seen a decline in supply of these goods.

Adulterated Fuel

The biggest drop in exports was registered in cement, which dropped to $7.6 million, from $25.6 million in 2015. Cement manufacturers blame the declining volumes on the proliferation of cheap imports, while the entry of Dangote Cement into markets like Tanzania compounded the problems as the firm offered a 40 per cent price cut on its products.

Concerns over adulteration of the country’s petroleum products saw its exports to neighbouring countries drop to $13.9 million, from $20 million in the third quarter of 2015.

In October, Kenya’s Energy Cabinet Secretary Charles Keter said that the regional economies, apart from Uganda, had drastically reduced fuel imports from the country; Kenya also lost business to Tanzania.

“We have decided to cancel all the licences for the firms involved. We cannot allow cartels to compromise the quality of our petroleum products, thereby hurting our exports,” said Mr Keter.

British American Tobacco company on the other hand, accused the Tanzanian government of imposing higher local content requirements for exports, leading to Kenya’s exports dropping to $23 million last year, from $38.6 million in 2015.

Edible oil exports to the EAC dropped to $11.9 million from $12.4 million. Salt also dropped to $9.89 million from $13.69 in the third quarter of 2015.

Business Expansion

Joseph Kosure, the head of the bilateral Trade Division at the Ministry of Foreign Affairs and International Trade said that the drop in numbers could also be attributed to firms setting up shop in traditional export markets, leading to a drop in orders from Kenya.

“We have seen firms like Bidco establish footprints in Uganda, General Motors in Tanzania and other firms, resulting in a drop in orders,” said Mr Kosure.

Trade and Industrialisation Principal Secretary Chris Kiptoo said that recently, the Cabinet approved a national export strategy seeking to correct the decline in exports.

“From our data, 70 per cent of our exports end up in 12 markets, six of them being in Africa. This shows that our export destination is narrow. This strategy will now see us diversify and penetrate while also deepening our export destinations,” Dr Kiptoo said, adding that regionally, they have had discussions with Tanzania on how to deal with the trade barriers affecting exports and imports between the two countries.

The report also shows that the imports of European Union products (mostly from the United Kingdom and the Netherlands) into the country rose despite export earnings by Kenya, from these two destinations declining in the quarter under review.

This could signal bad news for the stalled ratification of the Economic Partnership Agreement (EPA) as it could embolden Tanzania, which has taken issue with the “skewed” EPA, saying it favours the EU and threatens its local manufacturing base. Kenya has under a month to persuade Tanzania and Uganda to sign the agreement, before the February 2, deadline.

Outside of the region, The Netherlands and the UK remained the key markets for the country’s exports including tea, coffee and flowers, jointly accounting for 14 per cent of total exports in the third quarter of 2016. In Asia, Pakistan provided a vital market for the country, with a 15.2 per cent increase in exports to $91.3 million.

Buoyed by the Africa Growth and Opportunity Act (Agoa), and driven by a rise in clothing and apparels exports, earnings from America grew by 12.4 per cent.

Source: https://asokoinsight.com/news/kenyas-exports-to-east-africa-drop-by-105-...

12 January 2017

US widens its lead over UK as top importer of Kenyan goods

By Brian Ngugi | Business Daily, Kenya

The United States has strengthened its position as Kenya’s third-largest export destination — making it Nairobi’s most valuable economic partner outside East Africa.

Kenya’s exports to the US grew seven per cent to Sh35.3 billion in the first 10 months of 2016 as exports to Britain tumbled by a similar margin to Sh30.9 billion, according to Kenya National Bureau of Statistics (KNBS) data.

The growth saw American consumers open a Sh4.4 billion gap over their counterparts in the UK, wider than the Sh2 billion in 2014 when the US first outpaced Britain to become the third largest importer of Kenyan goods after Uganda and the Netherlands.

The KNBS data also shows that the US overtook Britain for the first time as the top source of foreign tourists who visited Kenya in the year to October 2016, cementing its position as a crucial source of dollar inflows in addition to diaspora remittances.

International trade experts said local traders are increasingly opening more supply channels to the US, helped by increased interactions with American investors.

“Besides the renewal of Agoa [the African Growth and Opportunity Act], Kenya’s increased visibility on the global map is as a result of conferences like the Global Entrepreneurship summit that attracted US President Barack Obama,” said Joseph Kosure, a consultant in international trade.

Kenya is a beneficiary of the preferential trade pact, Agoa, which allows sub-Saharan African countries to export goods to America tax-free.

Textiles and apparel account for about 80 per cent of Kenya’s total exports to the US under the pact.

The KNBS data shows that women’s trousers and shorts (valued at Sh6.8 billion) topped the list of items that Americans ordered from Kenya in the first 10 months of last year, followed by men’s trousers (Sh6.1 billion) and coffee (Sh2.9 billion).

Other items that the world’s largest economy took in from Nairobi are tea (Sh1.8 billion) and titanium (Sh1.6 billion). Titanium is used as an alloy with other metals to produce lightweight metals for jet engines.

Last September, Kenyan authorities said they were looking to expand the list of products that the country exports to the US under Agoa as competition intensifies in the garment and apparel market.

Relations between Nairobi and London came into focus four years ago following threats by the UK to cut ties with Kenya should Uhuru Kenyatta, then an ICC indictee, be elected president in the 2013 polls.

The charges against Mr Kenyatta have since been dropped, and the UK has been working to reset the frosty relations with Kenya.

Meanwhile the US-Kenya trade basket has continued to expand.

Ongoing growth now puts America on the path to overtaking the Netherlands for the first time as the second-largest buyer of Kenyan goods.

Source: https://asokoinsight.com/news/us-widens-its-lead-over-uk-as-top-importer...


12 January 2017

Uhuru and Modi in $100 million agriculture mechanisation deal (Kenya)

By James Anyanzwa | Business Daily, Kenya

India has extended a Sh10 billion ($100 million) loan to Kenya for agricultural mechanisation.

The funding deal was signed Wednesday in India following bilateral talks between the two countries. President Uhuru Kenyatta is on a two-day state visit to the country.

Kenya’s trade with India is tilted in favour of the emerging Asian giant. In 2015 Kenya imported goods worth Sh205 billion from India, while exports to the country stood at less than Sh10 billion.

“The government is keen to increase the volume and value of Kenya’s export base from agriculture and mineral-based raw products to value added manufacturing products,” said Mr Kenyatta at a joint press briefing with Prime Minister Narendra Modi in New Delhi.

He said Kenya is also seeking a partnership in technology transfer, especially on processing of natural resources.

Several Indian multinationals have business interests in Kenya, including the ongoing construction of a power transmission line under a Line of Credit (LOC) of Sh6.16 billion ($61.6 million).

Rising Star

The upgrading of Rift Valley Textiles Factory (Rivatex) funded by a Sh2.995 billion ($29.95 million) LOC is ongoing, while another Sh1.5 billion ($15 million) LOC to IDB Capital Limited for development of small and medium enterprises (SMEs) is being implemented.

India is a rising star in the global economy with its middle class offering a vast market to investors. Mr Kenyatta, who is on a reciprocal visit following the Indian premier’s visit to Nairobi late last year, urged Mr Modi to subject Kenyan exports to the same tariff as other East African countries.

He asked India to improve market access for Kenyan goods such as leather products and pulses. He invited Indian investors to take advantage of the special economic zones in Mombasa and along the standard gauge railway.

A joint trade committee was established to explore further ways of enhancing trade co-operation. Mr Modi noted that in the past three years, investment by Indian companies in Kenya had increased by Sh350 billion ($3.5 billion) as a result of business reforms by the Kenyan government.

Installation of a telecobalt cancer therapy machine from India is underway at Kenyatta National Hospital. Mr Modi said his country is committed to the donation of essential anti-retroviral (ARV) medicines, medical equipment and capacity building programmes in the health sector.

Equally, training has been given to Kenyan oncologists under the India Africa Forum Summit Framework.

Kenya would greatly benefit from collaboration in transfer of technology through investment by Indian pharmaceuticals given the high demand for the drugs in the region.

Source: https://asokoinsight.com/news/uhuru-and-modi-in-100-million-agriculture-...