PS Alfred urges lake region traders to seize $16 trillion EU market opportunity

The State Department for Trade Principal Secretary (PS), Alfred K’ombudo, has urged traders in the Lake region to take advantage of the European Union’s Economic Partnership Agreement (EU EPA) to access the expansive $16 trillion market.

The EPA, which was signed on 18th December 2023, he said, presents a golden opportunity for farmers, traders, and businesses in the agriculturally rich region to benefit by exporting their produce to the 27 countries of the European Union (EU).

Through the agreement, the PS said, traders would enjoy duty-free, quota-free access to the EU market for Kenyan primary products, as well as all manufactured products that were previously not allowed to enter the EU market under the previous framework.

He added that the partnership, which comes with a development cooperation component to support Kenya in meeting EU product requirements and building capacity for export, was set to stimulate economic growth in the country.

Speaking in Kisumu during a sensitization meeting for stakeholders drawn from Vihiga, Siaya, and Kisumu counties, K’ombudo said the initiative was key to implementing the government’s Bottom-Up Economic Transformation Agenda (BETA) and addressing gaps in access to markets for local products.

The Lake Region, he noted, was endowed with vast arable land, natural resources, and adequate rainfall, urging farmers in the area to diversify production and engage in value addition to fully capitalize on the EU market.

“This is a golden opportunity for all the counties in the Lake Region to diversify their exports, increase income, and empower local economies. We must rise to the occasion and position ourselves strategically to benefit from duty-free and quota-free access to the EU market,” he said.

The European Union, with a market value of USD 16 trillion, stands as one of Kenya’s largest export markets, accounting for an average of 21.1% of the country’s total exports annually.

Currently, Kenya’s exports to the EU largely consist of agricultural commodities, including live plants and cut flowers, coffee, tea, spices, edible fruits and nuts, edible vegetables, ores, fish and crustaceans, oil seeds, and animal and vegetable fats, among other agricultural products.

The blue economy, the PS said, was a potential area that has not been fully exploited, with Kenya’s share of fish product exports to the EU amounting to only 0.04% of the $48 billion fish market.

“As a blue economy region that is well-endowed with fish products and a good transport system, counties in the Lake Region can leverage this to acquire a larger share of the fish export market in the EU,” he said.

To support farmers and traders in exporting in bulk, the PS said the State Department for Trade was in the process of establishing a Multi-Commodity Exchange to connect warehouses with farmers and traders, facilitating the bulk aggregation of goods to meet market demands.

This, he said, was a critical step in addressing challenges faced by farmers and traders, particularly the inability to fulfill large-scale orders due to fragmented production and distribution systems.

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EU Trade Counsellor Filippo Amato said the sensitization meeting, which was the seventh of its kind held in the country, was crucial in creating awareness of the new trading opportunities between Kenya and the EU.

Kenya, he said, had taken the lead in expanding trade opportunities with the EU, calling on other East African Community member states to follow suit.

“The European Union is very delighted to have this agreement with Kenya, following years of negotiations. We are hoping that other countries will also do the same,” he said.

The agricultural products export market, which represents a shift from the traditional oil and minerals exports, he added, offers a significant opportunity for Kenya and other African countries, urging farmers to add value to their products to reach a wider market.

Vihiga County Executive Committee Member (CECM)-In-Charge of Trade Joseph Lunani said county governments were plugging into the national government’s Bottom-Up Economic Transformation Agenda (BETA), adding that the expansion of markets through the EU partnership presents a golden opportunity for farmers and traders in the counties.

 

By Fredrick Odiero.

 

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