Trade imbalance between Kenya and Germany blamed on lack of value addition

Kenyan exporters will have to diversify export products and increase value addition in order to ease the trade imbalance between Kenya and Germany, according to the Deputy Head of Mission in Berlin Amb. Esther Mungai. 

Speaking at the Kenyan Embassy in Berlin ahead of the official opening of this year’s edition of Fruit Logistica Trade Fair, she lauded government to government collaborations as well as private partnerships between Germany and Kenya that have increased market access for Kenyan goods and services to the EU market.  

Kenya has a trade deficit of Kshs. 87.8 billion to the European Union market as of 2018, with Kenya’s exports to EU standing at Kshs. 131.1 billion while her imports were at Kshs. 218.9 billion, hence creating the deficit.

Germany is one of the key markets where Kenya’s export products are preferred, which are largely vegetables, tea, coffee, fruits and nuts, tobacco and canned fruit juices. 

On the other hand, over 50 Germany firms are in Kenya. 

Fruit Logistica, an international trade fair for fruits and vegetable global marketing has more than 3100 companies from the entire value chain of the green range exhibiting. This will include both global players as well as well as small and medium sized suppliers from all over the world.

Kenya will be represented by 40 companies who will be seeking more market opportunities, make global business networks as well as exchange latest trends in the industry and value addition opportunities to expand the exports pie in the EU markets.

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“I am happy to note that more Kenyan exporters are making in-roads to the EU market.   Germany recognizes Kenya as the most important trading partner in East Africa,” Amb. Mungai said.

During the 3-days’ trade fair, Kenyan Exhibitors also stand to benefit from special match-making sessions through the German-African Business Association (Afrika-Verein der deutschen Wirtschaft), a foreign trade association representing German companies and institutions with an interest in Africa. The Association advocates for a new conception of Africa in Germany as a continent of opportunity.

The Kenya Exports Promotion and Branding Agency (BrandKE), an Agency charged with all exports promotion and country branding initiatives, has also organized a trade mission on the side-lines of the trade fair to deepen trade relations and establish more market linkages for Kenyan exporters. The team will be meeting with leadership teams from the German-African Business Association, German Tea Association, German Tea Council, as well as Kenyans living in Germany.  

 EAC’s and Kenya’s trade with European Union has been enabled by the EAC-EU Economic Partnerships Agreements (EAC-EU EPAs) on trade and development agreements signed to enhance regional economic integration. The agreements cover goods and fisheries alongside development cooperation.

The 28 EU member states include: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom.

Odipo Riaga
Managing Editor at KachTech Media
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