Mending Economic Fences

22 Jan 2013

South Arica is breaking barriers that have prevented trade hitherto with its African neighbors. A case in point is the visit by a trade and commerce delegation to Kenya for exploring the possibilities of further trade between the two countries.

Kenya has proved to be a tough customer, blaming its trade partners for this and that. However, Pretoria has shown enough resilience with 35 firms in various sectors of the economy continuing to do business in Kenya.

The fact is South Africa and Kenya belong to different economic blocs – Common Market for Eastern Southern Africa (Comesa) and Southern Africa Development Community (SADC) – and do not, therefore, enjoy tariff concessions.  The barriers are expected to break down as the common ground is being found.

There is trade imbalance between the two countries, because South Africa believes in pure economics and not bilateral and political relations.  However, Kenya provides a big market of 133 million people of the East Africa community.  Kenya has relatively developed infrastructure, strong financial institutions, fast growing middle class, four fibre optic cables, cheap and highly skilled manpower. South Africa can only benefit by trade with Kenya in the circumstances and be in prime position in the African Continent.

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