Midrand: South Africa and Kenya are deepening trade, investment, and industrial cooperation, as the two countries position themselves to drive Africa's economic transformation. Speaking at the South Africa-Kenya Business Forum in Midrand, Johannesburg, President Cyril Ramaphosa and Kenyan President William Ruto called for stronger collaboration between the continent's leading economies, saying that Africa's future growth depends on integrated value chains, infrastructure development, and increased intra-African trade.
According to South African Government News Agency, President Ramaphosa highlighted Kenya as a significant trading partner outside the Southern African Development Community (SADC), with bilateral trade showing solid growth. He noted a 3.5% annual increase in trade between the two countries since 2022. Ramaphosa stated that South Africa imports products, services, technology, and skills from Kenya, while investment flows have strengthened. Kenyan companies have invested in 11 projects in South Africa worth $283 million, and South African companies have invested in 96 projects in Kenya valued at over $2 billion.
South Africa's development finance institutions have also supported Kenya's development. The Development Bank of Southern Africa funded a 350km pipeline replacing the Mombasa-to-Nairobi petroleum and crude oil products line. Ramaphosa emphasized the untapped potential in both countries' economies through structural reform, industrialisation, and diversification.
President Ramaphosa stressed the importance of financing infrastructure and strengthening regional value chains, advocating for investment accompanied by technology transfer and skills development. He highlighted proposals for strengthening food security, including climate-smart agriculture and improved livestock management. Both governments are committed to creating enabling environments for growth by reducing trade and investment barriers.
Funding for the Kenya Roads Board Securitisation Programme, supporting transport infrastructure development, is among initiatives under consideration. South Africa and Kenya are updating information and communications technology agreements to align with advances in industrial innovation, technology transfer, digital trade, and artificial intelligence.
President Ruto echoed Ramaphosa's sentiments, noting the combined economic strength of Kenya and South Africa to drive Africa's transformation. He described South Africa as a leading industrial and financial powerhouse and Kenya as a gateway to East and Central Africa. The partnership between the two countries spans trade, investment, tourism, aviation, financial services, manufacturing, ICT, and logistics.
Ruto highlighted the African Continental Free Trade Area (AfCFTA) as a significant opportunity for economic growth, creating a competitive market to attract investment, create jobs, and accelerate industrialisation. He called for integrated regional value chains in various sectors, including manufacturing, agriculture, mining, logistics, pharmaceuticals, and energy.
The Kenyan President emphasized the need for collaboration in automotive manufacturing, pharmaceuticals, mining, chemicals, and steel, where South Africa's industrial strengths complement Kenya's role as a regional production and logistics hub. On agriculture, Ruto urged greater investment in agro-processing, irrigation, cold-chain logistics, and supply chains connecting African producers to markets.
South Africa regards Kenya as a key strategic partner in East Africa, with numerous agreements covering agriculture, education, tourism, transport, defence, water and sanitation, and trade. The South Africa-Kenya Business Forum brought together government and business leaders to strengthen economic cooperation, facilitate partnerships, and identify new opportunities for trade and investment across the continent.
