Kenya Trade Hub Status Threatened by Neighbors
World Economy

Kenya Trade Hub Status Threatened by Neighbors

Kenya’s position as the regional trade and investment hub for eastern Africa is increasingly coming under threat from south-neighboring Tanzania and populous northern neighbor Ethiopia, top government and private sector officials have warned.
President Uhuru Kenyatta told business leaders the neighboring countries have “woken up” and were speeding up infrastructural development in a bid to topple Kenya’s long unrivaled position as the epicenter of investment, trade and transport in the region, AfricaNews reported.
“How we do things today is not the same way as 10 years ago, time has changed and neighboring countries have woken up... (and) we have to up our game by improving on efficiency,” he told a luncheon after the fourth presidential roundtable with the Kenya Private Sector Alliance (KEPSA). “There are no natural markets out there, you have to fight for very single space out there.”

  Mega Projects
KEPSA chairman Vimal Shah singled out Tanzania and Ethiopia as the countries angling to take up part of what has for decades been the preserve of Kenya in terms of foreign direct investment flows.
Tanzania has laid out mega infrastructural projects including a planned Sh1.02 trillion ($11 billion) port at Bagamoyo which will dwarf Mombasa that is gradually finding a footing after years of inefficiencies.
The proposed port at the ancient slave harbor has the backing of China and is widely seen as the legacy project of President Jakaya Kikwete who hails from there, although the initial July 2014 ground breaking was missed.
Tanzania on March 29 announced plans to spend Sh1.31 trillion ($14.2 billion) on a new 2,561 km standard gauge railway in the next five years linking Dar es Salaam to land-locked Rwanda and Burundi with additional lines to iron ore, coal and soda ash mining sites in the north and south.

  Walking a Tight Rope
Vimal said Kenya was walking a tight rope noting that exports have grown by a marginal six percent over the last decade.
Most of this growth was mainly driven by services while the manufacturing exports have remained “flat, yet we still lead in EAC,” he said, adding that only 16 percent of agricultural exports are shipped as finished products.
Deputy President William Ruto asked the private sector to work closely with Treasury on bettering the business climate for manufacturers including a favorable tax regime.


Short URL : http://goo.gl/yOJdes

You can also read ...

Even though the US tariffs on their own may have a limited impact, global economic growth will slow should US trigger a trade war with  China or the European Union.
The volume of global trade grew faster than the world economy...
OECD Finds No Consensus on Interim E-Commerce Taxes
The Organization for Economic Cooperation and Development’s...
S. Arabia Among World’s Worst Performing Property Markets
Saudi Arabia’s real estate market continued to be one of the...
Greece Looking Economically Vibrant on Road to Recovery
It’s nearly springtime in Athens: street trees are heavy with...
Since China’s entry into the World Trade Organization in 2001, it has become the most formidable  economic competitor the United States had even seen.
The US national debt exceeded $21 trillion for the first time...
Merkel Says Trying to Boost Domestic Demand
Germany is trying to stimulate domestic demand to offset...
Gaza growth fell from 8% in 2016  to a mere 0.5% in 2017.
Gaza has seen conditions steadily deteriorate over the last...
ECB wants to keep headline inflation below,  but close to 2% year-on-year.
Eurozone consumer prices grew less than expected in February...