By
Chrispinus Omar NAIROBI (Xinhua) -- Kenyan
traders have called on the Ethiopian government to remove
bottlenecks which have impeded growth in bilateral trade between
the two countries.
Kenya
Association of Manufactures (KAM) CEO Betty Main, who was on a
three-day visit to Addis Ababa to explore investment
opportunities, urged the Ethiopian government to fast track
investment opportunities in the country.
“The transit pact will be able to allow the movement of transit cargo and goods across the border at Moyale,” Maina said in a statement issued in Nairobi after returning from the visit.
She
added that members of the delegation requested Prime Minister
Hailemariam Desalegn to fast track investments by allowing
Kenyan banks and retailers to operate in the country, improving
capacity building and signing the COMESA Free Trade Area (FTA)
protocol to which the country is not yet a signatory.
They
also requested the country to tackle the problem of foreign
currency shortage which is affecting the growth of the
manufacturing sector.
Kenya
remains one of Ethiopia’s largest trading partners in Africa
and government statistics indicate that in 2010 Kenya’s
exports reached 43 million U.S. dollars against imports of 2.4
million dollars.
During
the meeting, the Ethiopian prime minister said the country was
studying COMESA protocol but cited misgivings about the
application of the rules of origin of the goods traded as one of
the reasons it had not yet signed the pact.
He
said that the country had to protect its fledgling domestic
industries from an influx of cheap imports. He called for
investments in agriculture in Ethiopia.
“This country has huge potential in agriculture; we have around 400,000 hectares of sugar production in this country. Anyone who wants to engage in sugar and palm oil production is welcome to come and invest,” Desalegn added.
Ethiopia
is currently seeking WTO accession but has to allow foreign
ownership of banks which it currently does not do.
Desalegn
said the country was willing to look into the question of
allowing Kenyan owned banks to operate in the country.
The
trade mission concluded on Wednesday with a visit to the
Ethiopian Commodities Exchange (ECX). The prime minister called
for a quick ratification and development of the protocols for
the implementation of the Special Status Agreement (SSA).
“I still feel that the devil is in the details and there is need to work on the specific details with our private sector and our respective governments,” Desalegn said.
A
unique bilateral trade and investment partnership was forged in
November last year after former President Mwai Kibaki and
Desalegn signed the Special Status Agreement (SSA), but it is
yet to be ratified by the Kenyan and Ethiopian parliaments.
The
Kenyan constitution requires that all trade agreements be
approved by Parliament. It will be ratified by the Ethiopian
parliament in September.
Both
countries hope to stimulate economic development through trade
facilitation if it is ratified and implemented.
Desalegn
emphasized the importance not only of foreign direct investment
in the country but also growing the domestic sector, saying his
country was working on infrastructure projects so as to aid the
growth of the private sector in the country which he said was
only 20 years old.
The
Kenyan delegation arrived in Addis Ababa, the country’s
capital, on Monday to explore possibilities trade and investment
in the country.
During
the three-day mission, the group held discussions with
government leaders as well as industry, partners from the Addis
Chamber of Commerce and Sectoral Associations as well business
to business meetings with potential Ethiopian partners.
Kenya’s
Cabinet Secretary for EAC, Tourism and Commerce, Phyllis Kandie
thanked Desalegn for his country’s commitment towards
strengthening the partnership.
“We appreciate to have this level of commitment during our visit. There is so much we can learn from each other,” Kandie said.“We understand each other and that very strong bond and friendship will be able to help our two countries do business together. All this has been provided for in the SSA and we intend to take it from there.”
Ethiopia
is East Africa’s most populous nation at 90 million and is a
strategic trade partner to Kenya, the region’s largest
economy.
In
the last few years, both countries have signed 19 bilateral
agreements, the SSA being the last to be signed. New areas of
business partnerships exist through reciprocity.
Both
countries are also involved in flagship projects such as LAPSSET,
the completion of the Moyale road and the building of a railway
line which will open up a new shipping route for the landlocked
country.
There
is also an agreement to construct a power transmission line that
will provide 400 MW to the Kenya and later on 2000 MW. http://www.coastweek.com
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