Kenyan Micro, Small and Medium Enterprises (MSMEs) have shipped the first exports of assorted products to South Sudan, Zambia and DRC under the African Continental Free Trade Area (AfCFTA) Framework in an initiative dubbed TradeConnect.
- Over the next 12 months, the initiative aims to mobilise and transport 1000 containers of diverse goods worth $1.2million across the continent.
- The government hopes that the TradeConnect initiative will improve Kenya’s export by 10 per cent annually and cut logistics nightmare to the exporters by 30 per cent.
- The initiative is a collaboration among multiple stakeholders including the AfCFTA Secretariat, KNCCI, MSEA, UBA Bank, TradeMark Africa (TMA) and the Ministry of Cooperatives and Micro, Small, and Medium Enterprises Development.
“As we strive to produce what we can consume and consume what we can produce, the TradeConnect initiative will empower Kenyan businesses to become more competitive and self-sustaining, fostering growth and innovation,” Deputy President Kithure Kindiki in a speech read on his behalf by Cabinet Secretary for Cooperatives and MSME development Wycliffe Oparanya during the flagoff ceremony.
Kenya’s Exports
The value of Kenya’s exports to Zambia stood at USD 70.0 million in 2023, with its principal export product to the country being Manufactured tobacco and manufactured tobacco substitutes. This made up 10.6% of Kenya’s exports to the country. Other key export products include Margarine, other edible mixtures (9.5%) and Medicaments for therapeutic or prophylactic uses (6.8%).
Kenya’s exports to DRC Congo have been on a downward trend declining from USD 239.4 million in 2014 to 132.0 billion in 2019 and later years i.e., 2020 and 2023, sees export values increasing from USD 134.4 million to USD 189.9 million.
However, Kenya’s imports from DRC Congo have been increasing; growing from USD 3.0 million in 2014 to USD 22.3 million in 2023. Between 2014 and 2023, Kenya’s exports to DRC Congo averaged at USD 181.1 Million while her imports from DRC Congo averaged at USD 15.5 Million. The balance of trade between the two countries has widened in favour of Kenya between 2014 and 2024 all through the past decade with the Peak value being USD 236.4 Million in 2014 and the lowest being USD 108.5 Million in 2020.
“For the Kenya Export Promotion and Branding Agency, TradeConnect Initiative aligns well with our mission to “Brand Kenya, Export Kenyan, Build Kenya.” Through the Made In Kenya mark, we are elevating the quality, authenticity, and uniqueness of Kenyan products,” says Floice Mukabana, CEO, Kenya Export Promotion and Branding Agency.
UBA said it has also signed memorandum of understanding with the Africa Continental Free Trade Area (AfCFTA) Secretariat to provide financing for up to US$6.0bn over the next 3 years to eligible SME across Africa, and USD 285Million specific allocation to Kenya.
Ms. Mary Mulili, MD/CEO of UBA Kenya noted that UBA remains committed to supporting the growth/development of SMEs in Kenya. “This is in line with our strategic focus on the SME segment being a catalyst to economic development of Africa.”
Trading Under the AfCFTA Takes Effect – Kenyan Wall Street – Business, Markets & Finance Insights
