Doing business in Kenya & South Africa

Speaking Notes by Deputy President Kgalema Motlanthe during the Kenya-SA Business Seminar Breakfast Meeting under the Theme: "Doing business in Kenya & South Africa", Nairobi, Kenya

26 Nov 2010

Your Excellency, the Vice President of the Republic of Kenya, Kalonzo Musyoka
Honourable Ministers and Deputy Ministers
Members of the Business Community
Distinguished guests
Ladies and gentlemen

I am glad that both South African and Kenyan business have decided to get together to pursue mutual business interests.

South Africa and Kenya have enjoyed good relations over the years, especially starting from 1994.

Our visit to Kenya was to strengthen these relations, especially in the area of trade and investment.

We have set in motion processes to address some of the impediments to trade and contact between our two countries.

This afternoon we will be signing agreements which address issues of double taxation and promote the sharing of skills, knowledge and technology.

Programme director,

It is a statement of fact that Kenya is a country with great economic potential and an important destination for SA trade and investment.

The Bilateral Trade Agreement and the Memorandum of Understanding on Economic Cooperation were signed in South Africa on 19 September 2008.

But there was agreement that the current trade situation merited elevation, putting structures in place that would support and facilitate trade.

With this in mind, the Inaugural Session of the SA/Kenya Joint Trade Commission (JTC) was signed on 4 November 2010.

The JTC is intended to streamline our current trade exchanges which have seen positive growth rates, slowly outpacing the negative effects of the global financial crisis.

Our combined volume of trade increased steadily over the past five years and has continued to show positive signs of maintaining this upward mobility in the years to come. On average, the volume of trade since 2005 increased by almost 30% year on year.

With the bilateral relations in mind, we also have to realise that our memberships to two different trade blocs, the East African Community (EAC) and the Southern Africa Customs Union (SACU), should not be obstacles in discussing issues of common concern, such as the existence of restrictive tariffs.

The proposal made in Arusha in February 2008 to form a grand Free Trade Area consisting of the EAC, COMESA and the SADC is a positive step towards the breaking down of such restrictive barriers.

When we take time to carefully analyse the strategic relations between South Africa and Kenya, we realise that both our countries occupy key roles, not only in our respective regions, but also on the continent.

This gives us greater latitude in policy making and implementation, but it retrospectively places a greater amount of responsibility on our shoulders to drive African development.

This environment is also ideal in creating conditions for business to flourish.

But let us not hasten to forget that development goes deeper than just trade and investment, as it also entails accepting progressive change in the way we govern our people and the essentials of good governance.

In reality, the support given to the NEPAD initiative, the positive attainments of the Millennium Development Goals (MDGs) as well as the promotion of regional integration are evidence of the unquestionable commitment both South Africa and Kenya have to the development of our continent.

The path to National Reconciliation is never easy, as South Africa can attest to.

We therefore support the Grand Coalition Government of Kenya in finding ways to work closer together and to unite their people in line with accepted ideals such as national unity, solidarity, and the importance of normative values.

As we extend our hand in friendship to solidify our economic diplomacy, we also recognise the need for the SA-Kenya Business Council that will give guidance to our need for cooperation and the attainment of our common goals.

These, like all other agreements, must be fully implemented, thus creating enabling conditions for our enterprises to trade freely in our respective countries.

As both governments of South Africa and Kenya we remain committed to promoting trade and investment between our countries and our business entrepreneurs would hopefully take full advantage of the conditions we are creating.

I thank you ladies and gentlemen.

Source: The Presidency

Issued by: The Presidency
26 Nov 2010