Monday, January 13, 2014

Kenya eyes Sudan export market for investment deals ahead of fair


South Sudan President Salva Kiir. FILE

South Sudan President Salva Kiir. FILE 
By George Omondi,
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Kenya is extending its northward export market drive to Khartoum even as it fights to bring the warring factions in South Sudan to a negotiating table.


The Kenya Export Promotion Council (EPC) officials and a number investors are expected to show up at the week-long International Fair of Khartoum scheduled at the end of this month, hoping to negotiate market space and investment deals.

“A number of Kenyan products are already selling in Sudan but we treat it as market with a lot of unexploited potential,” EPC official Anthony Sawaya told the Business Daily last week.
Unlike South Sudan which has warmed up to Kenya, local firms are yet to make significant inroads in Sudan with 2012 exports figures falling sharply to Sh6.5 billion from Sh22bn in 2011 before the two states split.

Kenya mainly exports tea (28 per cent) cigarettes (12 per cent) and cement (4.5 per cent) to Sudan. Other export products include vegetables, medicines, vegetable fats and oils, plastic, soap, electrical machinery and telecommunications equipment.

Over the same period, official data shows Kenya imported Sh955 million worth of goods in exchange, listed mainly as machinery, steel structures, pumps, machine tools and motor vehicles.
The Sudanese officials have been dangling preferential investment packages under the country’s Encouragement Act and Free Zones Act in the run up to the trade fair, hoping to woo many Kenyans to put investment capital in the northern Africa state.

“This (trade fair) will provide great opportunities for Sudan companies to establish relations with Kenyan companies,” Sudanese Free Zone and Markets Company Ltd, organiser of the trade fair said in a statement.

“The prospects of investments are even better with the grand infrastructural projects in highways dams, bridges-energy projects still available in addition to the exceptional concessions included in the investment.”

Kenya trade officials, however, reckon that the renewed dalliance with Sudan does not represent an opportunity to seal the gap should South Sudan’s military clashes degenerate to disruptive civil war.
Together with Uganda, Kenya which has made strong commercial links with South Sudan in the last two years has been leading the efforts to build peace between President Salva Kiir and his former deputy Riek Machar.

“South Sudan has been and still is one of our biggest clients in the region,” said Mr William Ojonyo, director of Key logistics Ltd and former chairman of Kenya International Freight Warehousing Association’s Nairobi branch.

South Sudan is a key importer of Kenya’s foodstuffs, manufactured goods, medicines, chemicals and textile. In 2012, Kenya’s export to South Sudan hit Sh18 billion.
A number of Kenyan firms — among them Kenya Commercial Bank, UAP Insurance and Equity Bank — have established operations in Juba.

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