Kenya and Ghana will foster trade links and strengthen bilateral ties after President William Ruto signed seven MoUs during a three-day state visit to the West African nation yesterday.
- The agreements will open up both countries for mutual investments, as well as create opportunities for partnerships within their private sectors.
- President William Ruto also acknowledged Ghana’s intent to abolish visa requirements for Africans before the year ends, emphasizing that it is a step forward to integrating the continent and allowing the free movement of labor.
- Earlier this year, the Kenyan government announced that it had abolished all visa requirements for visitors, hoping to revive the tourism and investment sectors.
“This commitment aligns with one of the goals of the African Continental Free Trade Area to create a single market in the continent and to drive economic growth, job creation and poverty eradication,” President Ruto said.
In a press conference held in the official presidential residence in Accra, Ruto mentioned that the organs of the African Union have to be reformed for the continent to effectively tackle climate change, political instability, terrorism, and trade barriers.
Kenyan products have made inroads into the Ghanaian market in the recent past. In October 2022, Ghana imported its first shipment of Kenyan tea. The West African nation’s market also embraced Chloride Exide batteries and the ride-hailing service Little Cab.
- Since 2022, Ghana has experienced macroeconomic challenges arising from inflation and the debt distress that slowed down the nation’s growth, which was 2.9% in 2023 according to the World Bank.
- The World Bank also projects that Ghana’s growth will remain weak this year, with 2.8%, even as the country struggles to restructure its debts and consolidate its fiscal strength.
- The Washington-based institution also mentions that Ghana would experience a rebound in growth (5% and over), only if the country can attract Foreign Direct Investment (FDI) and develop the private sector.
Under the auspices of the Africa Continental Free Trade Area (AfCFTA), Ghana established a Trade House in Nairobi in May last year. Commercial cooperation will allow the two countries to share resources in Science and Technology, Education, Military knowledge, and Governance.
“President Akufo-Addo and I are encouraged that under the Africa Continental Free Trade Area, our two countries have taken bold measures to explore these opportunities,” President Ruto said.
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