Politics and policy
By TREVOR ANALO
In Summary
Kenya’s President Uhuru Kenyatta made his maiden trip
to North Africa last week, meeting with Algerian President Abdelaziz
Bouteflika in what turned out to be a search for another partner for the
country’s nascent oil and gas sector and for an ally in the war on
terror.
President Kenyatta officiated at the opening of Kenya’s
first embassy in Algiers and announced plans for both countries to lift
visa restrictions for holders of diplomatic passports.
The two countries also signed co-operation
agreements in oil, gas and energy, including onshore and offshore
exploration and production of hydrocarbons. They also agreed to work
closely on security challenges — even appealing to the international
community to help mitigate the unfolding humanitarian crisis in South
Sudan, where about two million people are now internally displaced.
Kenya has been actively seeking investors for its
emerging oil and gas sector. Since taking office nearly two years ago,
President Kenyatta has concentrated on cultivating strong ties with the
Gulf states.
The president has already made official visits to
Kuwait, the United Arab Emirates, Turkey and Qatar, where he signed
multibillion -dollar deals in oil and gas, infrastructure and energy
projects.
In Algeria, Kenya sees a country flush with
petro-dollars and experience in managing oil windfalls. The country’s
oil industry is one of the biggest in the world.
According to the Middle East Economic Survey
Algeria’s oil and natural gas export revenues amounted to almost $63.8
billion in 2013. Its foreign exchange reserves reached $194 billion by
the end of December 2013. The sector accounts for 60 per cent of the
budget, 30 per cent of GDP and over 95 per cent of export earnings.
Algeria has the 10th largest reserves of natural
gas in the world and is the sixth largest gas exporter. It ranks 16th in
oil reserves. Algeria’s oil production stands at 1.875 million barrels a
day.
“As Kenya looks forward to commercial exploitation
of its oil resources, we look forward to learning from Algeria’s
expertise,” said Kenya’s Foreign Secretary, Amina Mohamed.
While President Kenyatta’s trip focused less on big
policy announcements, his choice of Algeria as his first official trip
to North Africa did not escape the notice of foreign policy analysts.
“It makes sense that Kenya and Algeria would want
to strengthen ties. The country is now emerging as the pivotal state in
North Africa,” saidMacharia Munene, a professor of international
relations at Nairobi’s United States International University.
Algeria has long been perceived as a significant
regional powerhouse. But its perceived importance has risen in the past
few years after the geopolitical shift in the Middle East prompted by
the Arab Spring.
“With Egypt and Libya in crisis, Algeria, which has
long held regional ambitions, emerged to fill the vacuum left by the
two hegemons,” Prof Munene said.
Kenya’s political and economic links with North
Africa were also disrupted when the wave of revolutions in the Arab
world swept through its key ally Libya. As a result, Kenya is trying to
firm up its links in the region by expanding ties with other key
players. But relations with Libya were not always rosy.
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