A tired traveller was about to fall into the water when a Dame Fortune appeared to him and waking him from his slumber thus addressed him: “Good Sir, pray wake up: for if you fall into the well, the blame will be thrown on me, and I shall get an ill name among mortals; for I find that men are sure to impute their calamities to me, however much by their own folly they have really brought them on themselves.”
Like the tired traveller, we are all responsible for our own destinies and over the last couple of weeks President William Ruto has been walking this road. His administration appears to understand that trade with other African counties is critical for Kenya’s economic growth.
Last week, Presidents William Ruto and Cyril Ramaphosa led their delegations in important talks that saw the two countries sign various deals. When actualised, the deals will be of great benefit to the two countries especially in enhancing trade.
Kenya and South Africa are among the biggest economies in the continent and enhancing intra-trade between the two countries will open immense opportunities for the citizens of the two countries.
Key among the agreements is South Africa relaxing the visa rules that had made it hard for Kenyans to travel to the country for both business and leisure. Allowing visa-free travel will enable Kenyans to enhance their presence in South Africa as tourists and also for business.
The two countries agreed on three memoranda of understanding and one agreement of cooperation in the fields of correctional services, housing, and human settlement as well as cooperation between Kenya’s School of Government and the National School of Government, South Africa.
They also agreed to encourage cooperation on audio-visual productions. South Africa is known as a leader in film production and this deal is set to open up immense opportunities for Kenyans in the arts.
Trade between Kenya and South Africa is critical in the era of free trade within the continent. The agreements between the two countries thus come at a very opportune time, especially for Kenya as South Africa is also a major source of foreign direct investment in Kenya.
The agreements are is set to benefit Kenya, which ran on a trade deficit of Sh40.1 billion in 2021. This is because a lot of private companies and investors from Kenya have been eyeing the southern African country for expansion.
In 2021, Kenya’s exports to South Africa were Sh3.96 billion in 2021 from Sh3.4 billion in 2020, while imports from South Africa were Sh44.07 billion in 2021, up from Sh45.77 billion in 2020.
Beyond South Africa, President Ruto on Thursday attended the Annual General Meeting for Kenya National Chamber of Commerce and Industry. The President said the government will digitise its processes to enhance service delivery in a move to save businesses time and costs.
This will make Kenyan businesses more competitive and enhance their advantage in the continent to ensure that they do business across Africa.
Intra-Africa trade is very important for all Africans, including Kenyans. In Europe, trade between countries in the European Union is at 70 per cent while here in Africa, it stands at 19 per cent and this should change as a matter of urgency.
In October, while attending Uganda's Independence Day, President Ruto called for free trade across the East African countries. He said that there is a need to transform East Africa to a borderless community.
It is important that Kenya leads in finding consensus on the divisive issues in the Africa Trade Agreement and having all counties move together. This will enhance the country’s standing on the continent and ensure that it leads the continent in trade that is beneficial for all countries.
Trade Cabinet Secretary Moses Kuria has hit the ground running, which is good for trade in the country. It is important that Kenyan traders find more markets outside the border.
The government must lower the cost of doing business to attract investors through the just-signed agreements. This will not only help the country create jobs but is bound to enhance economic growth.