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.