Bilateral Trade Relations Between Mozambique and Kenya


Market Survey of Mozambique


Total bilateral trade between Kenya and Mozambique has more than doubled during the period 2004 to 2008 rising from US $ 8 million in 2004 to US $ 17 million in 2008, an annual average growth of 22%. This trade though is skewed in favour of Kenya which has maintained a trade surplus with Mozambique throughout this period, is still very low. The trade surplus ranged between US $ 3.31 million and US $ 9.28 million between 2004 and 2008.


Kenya exports to Mozambique grew from US $ 6.7 million in 2004 to US $ 13.2 million in 2008, representing an annual average growth of 23.4% while imports from Mozambique grew from US $ 1.3 million to US $ 3.9 million an annual average growth of 61.5% during the same period. Kenya’s main exports to Mozambique were sugar confectionary, pharmaceuticals, and footwear made of textile while Mozambique’s main exports to Kenya were liquefied butanes and sugar.


It is therefore recommended that to expand the trade, Kenya must not only consolidate and expand her exports to the Mozambique, but also diversify her basket of export products. Kenyan footwear exports enjoy sizeable market share in Mozambique and the shares need to be expanded. There are potential products which Kenya has a capacity but currently export little or do not export to Mozambique and Kenya should consider exporting them. The products, mostly manufactured products, includes among others: animal/vegetable fats and oils, paper and paper products, dairy products, construction materials (iron & steel, and cement), glass ware, beverages (fruit juices, wine and spirits), in-organic chemicals (soda ash), rubber articles, soaps and detergents.


Analysis of potential export products to Mozambique
In this section, products with export potential have been identified through consideration of the following factors: Kenya’s global exports to Mozambique, Kenya’s global exports and Mozambique’s global imports. Trade potential is deemed to exist in two cases; the first case represents products in which Kenya already has market presence in Mozambique and the second category of product refers to cases where there is a match between Kenya’s exports to world and Mozambique imports from world although no actual trade is reported between the two countries.

 

Products with supply base but minimal or no presence in Mozambique Cement
Products with presence in Mozambique 

Raw tobacco Flat rolled zinc coated products Footwear Pharmaceuticals

Sugar confectionary (Chewing gum)

 

Mozam

Mozs

 

The two leaders challenged the private sector to take advantage of the large market and numerous investment opportunities.


President Kenyatta challenged Kenya’s private sector to diversify its exports and to also tap into new investment opportunities in Mozambique, including in the lucrative mining, oil and gas sectors.


President Nyusi urged the private sector in both nations to spearhead the expansion of economic partnerships between the two nations, especially in sectors such as agriculture, agribusiness, minerals, tourism among others.


The two presidents witnessed the signing of a bilateral agreement to abolish visa requirements for citizens of both countries in order to ease travel.


Kenyans traveling to Mozambique will now not be required to acquire visas before visiting the Southern African nation, thanks to a visa waiver agreement signed between the two countries on Wednesday. Similar courtesies will be extended to Mozambicans coming to Kenya.


President Uhuru Kenyatta and his Mozambican counterpart, President Filipe Nyusi, witnessed the signing of a bilateral agreement to abolish visa requirements for citizens of both countries in order to ease trade and travel between the two nations.


SLOW PACE
And, speaking while addressing a Kenya-Mozambique business forum at the Villa Rosa Kempinski Hotel in Nairobi, the two leaders challenged the private sector to exploit the huge trade potential that exists between the two countries.


President Kenyatta decried the slow pace of growth in trade between the two nations in spite of the large market and numerous investment opportunities.
In 2017, Kenya's imports from Mozambique were worth$31 million while exports were valued at $12 million.

He said the two nations have so far largely traded in manufactured goods, an encouraging sign that Africa’s industrial sector is picking up.


“Kenya and Mozambique are similar because they both work with the private sector,” said President Kenyatta as he encouraged the business community to take advantage of the bilateral agreements and favourable trade policies in the two countries.


Earlier on Wednesday, the two presidents


PRIVATE SECTOR


President Kenyatta challenged Kenya’s private sector to diversify its exports and to also tap into new investment opportunities in Mozambique, including in the lucrative mining, oil and gas sectors.


The President said Kenyan cement companies have now started importing coal from Mozambique, which also has vast deposits of natural gas, indicating that trade between the two countries is growing.


He also invited companies and traders from Mozambique to invest in Kenya’s expanding economy which is open, safe and friendly for business.


The two leaders said improvement in infrastructure will boost Intra-Africa trade, which is still very low.


President Kenyatta said he will work closely with President Nyusi for the successful implementation of all agreements signed between the two nations.


STRONG BONDS


On his part, President Nyusi said Kenya and Mozambique have strong bonds because they share a history stretching back to more than a millennium and that the people of the two nations are related.


President Nyusi urged the private sector in both nations to spearhead the expansion of economic partnerships between the two nations, especially in sectors such as agriculture, agribusiness, minerals, tourism among others.


“We should enhance partnership between our private sectors,” said President Nyusi, who noted that his country can share its experience in fishing with Kenya.
He said Mozambique will participate in the upcoming Blue Economy Conference to be held in Nairobi from Monday next week. President Nyusi will lead the Mozambican delegation at the conference where 11 Heads of State and 8,000 delegates are expected to attend.


The Kenya-Mozambique business forum was also attended by Deputy President William Ruto and Cabinet Secretary for Trade and Industry Peter Munya among other government officials.


LANGUAGE SIMILARITIES


President Kenyatta and First Lady Margaret Kenyatta later hosted a State Banquet in honour of President Filipe and the Mozambican First Lady, Isaura Nyusi, at State House, Nairobi.


Speaking during the banquet, President Kenyatta said the cultural and language similarities that Kenya and Mozambique share make it easier for its people to interact.


"We are one people bound by a common history, one culture and love for one Africa,” said President Kenyatta.


He said the similarities of culture, language and people is testament to the rich heritage.


The similarities in language was demonstrated by President Nyusi who, during his speeches at the various functions, would sometimes switch to Kiswahili, in which he is very fluent.


ECONOMIC PARTNERSHIP


President Kenyatta said that Kenya and Mozambique will, beside their economic partnership, work together in fighting terrorism and other forms of organised crimes.


President Nyusi said he was impressed by the democratic space in Kenya and encouraged President Kenyatta to continue fostering the principle of separation of powers, which is the cornerstone of democracy.


He said that Mozambicans will always remain grateful for the role Kenya played in bringing the Mozambican civil war to an end.


"Kenya, to Mozambique, is not just another country. It is part of our history," he said.


He praised Kenya as a land of champions including the first African Woman Nobel Laureate Prof Wangari Maathai and legendary athletes like Kipchoge Keino.


DIGNITARIES


Deputy President William Ruto and Former Prime Minister Raila Odinga were among the dignitaries who attended the dinner at State House.


President Nyusi is on Thursday scheduled to visit Mombasa and Kwale Counties.


In Kwale, he is expected to interact with members of the Makonde community, who were officially given legal recognition as Kenya's 43rd ethnic group by President Kenyatta last year. The Makonde came to Kenya from Mozambique in the 1950s.

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