27 November 2012

Kenya: Addis and Nairobi Sign Trade Pacts

Trade ties between Kenya and Ethiopia could strengthen further in light of an aggressive marketing campaign driven by newly installed Ethiopian Prime Minister Ato Hailemariam Desalegn.

Just a few months after taking the reins of power from the late Meles Zenawi, the new PM was on a three day tour of Kenya where he held extensive talks with President Mwai Kibaki and members of Kenya's business community.

During these meetings, a raft of agreements and trade pacts were agreed on in what would be a re-angling and redefining of Kenya's trade ties with Ethiopia.

Desalegne who prior to getting to the helm was Ethiopia's Foreign Affairs Minister embarked on an aggressive marketing campaign aimed at luring Kenyan investors to his country apart from finding market in Kenya for Ethiopian goods.

Ethiopia is currently enjoying a buoyant economic activity with its GDP currently growing on a nine year sustained streak of 11 per cent. This is mainly driven by a very active manufacturing and agriculture sectors.

Kenya on the other hand is enjoying an annual economic growth of about five per cent with growing manufacturing, agriculture, tourism and ICT sectors.

"Our economy is on a steady growth mostly due to our policy of attracting investments through incentives such as land to serious developers. We are currently having one of the best infrastructure sectors in Africa," said Delasagne.

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