As Nigeria’s President Muhammadu Buhari rounded off his three-day visit to Kenya which began on Wednesday, January 27, indications emerged that the visit, Buhari’s first to the East African country since he was elected into office in March 2015, may soon begin to bear fruit in terms of creating momentum for increased trade and investment between the two countries. This indication came as delegates from both countries at the Kenya-Nigeria Business Forum in Nairobi on Friday discussed the possibility of a duty-free zone for the importing and exporting of goods between the two countries and regions in the hope of opening up trade in Africa. Kiprono Kittony, Chairman, Kenya National Chamber of Commerce and Industry (KNCCI), said there had been an agreement to improve the data gathering in terms of the trade and investment going on between the two countries.


“We would like to see that we have as much accurate information available to us so we can know whether the interaction at a higher level is being realized on a business to business frontier,” said Kittony, who also raised the issue of the ban list in Nigeria and how it limits the possibility for trade between the countries. Sani Dangote, Group Vice President, Dangote Industries Limited, however, said rather than focusing on the ban list, the focus should be on how to provide some bilateral agreement between the two countries to create some kind of duty-free zone whereby goods manufactured in Nigeria can come into Kenya duty-free and goods manufactured in Kenya can also go into Nigeria on a duty-free level. “This could be the incentive to drive business communities to do much better,” said Dangote. Kenya’s President Uhuru Kenyatta said he was “excited” to hear what Dangote had to say, adding that they would work towards a status agreement between Kenya and Nigeria that will drive the merging of East and West.

“On my part I will ensure that I do everything possible to push my officials to ensure that those issues that you see as barriers towards being able to effectively work and partner together are removed and I am certain President Buhari will also commit to the same,” said Kenyatta. President Buhari’s speech addressed the need for diversifying Africa’s focus, prioritising agriculture, manufacturing, and infrastructure development. Ahead of the visit, some experts had expressed optimism that it would create momentum for implementing the up to 17 instruments of cooperation signed by the two countries over the last few years. “I think the agreements that were signed, several articles of cooperation between Kenya and Nigeria during President Jonathan’s time in Nigeria, were really to enhance the trade between the African countries and currently Kenya exports about $24 million to Nigeria and imports about $6 million, so I expect that number to increase,” said James Obimbo, Corporate Finance Analyst at Genghis Capital.

“They really need to come to an agreement of making trade a lot easier, loosening the trade barriers, for example, so as to make it easier to export even more and both countries can really diversify their export markets,” said Obimbo.
Tom Amolo, Political and Diplomatic Secretary in the Kenyan Ministry of Foreign Affairs, told newsmen that the visit would help maintain momentum in the development of bilateral relations registered in the recent past and also signify “the solidity of our relations as it avails a unique opportunity to consolidate strategic partnership between the two countries and forge even closer ties in all fields for the mutual benefit of the people of the two countries”. “It is expected that a decision will be arrived at for the launching of the Kenya-Nigeria joint commission for cooperation (JCC), an important implementation and monitoring mechanism for the agreements and MoUs (Memorandums of Understanding) that our two countries have entered into,” Amolo said. “In addition, the streamlining of immigration issues, particularly the issuance of the five year visas for our businessmen, will further invigorate our trade and business ties,” he added.

Source: Footprint to Africa

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