Exporters bank on peaceful poll for Agoa growth

Kenyan exporters attending the ninth Agoa meeting in Washington are banking on a peaceful post referendum period to boost the country’s investment profile and reverse the falling volumes under the preferential trade.

Good governance, transparency and institutional reforms envisaged under the proposed constitution are some of the key criteria that the US administration uses to review eligibility for Agoa every three years.

Officials of key export promotion schemes said peaceful voting and successful implementation of the proposed law, if it passes, will reinvent the export wheel and attract more investment.

Kenyans voted on the proposed Constitution on Wednesday.

Business leaders have endorsed the document, saying it would create more investment opportunities.

“We don’t take this new law as a string on the neck of the government but investors see it as an opportunity to push the US-Kenya trade forward,” Jonathan Chifalu, the Export Processing Zone Authority’s spokesperson said.

The annual Agoa forum is a platform for dialogue between top American government officials, the private sector, the civil society and African trade ministers to review progress in using the preferential trade tool to fight poverty.

The one-week Washington forum which started on Monday is held under the theme “New Strategies for a Changing World.”

The eighth Agoa edition was held in Nairobi where American officials led by US Secretary of State Hillary Clinton criticised Kenya for slow pace of reforms, blaming it for the low level of trade between the two countries.

In recent weeks, America has openly supported efforts to give Kenya a new Constitution, raising hopes of stronger diplomatic and investment ties were the proposed law to pass.

In June, US Vice President Joe Biden said in Nairobi his government backs the process of getting a new constitution for Kenya and promised increased trade and foreign investment if the document is approved.

Kenya did not send representatives to this year’s meeting, a move linked to the referendum.

“For the first time, we did not send official delegation to the US to represent the government in the forum in order to free the civil servants to vote but we expect our ambassadors and private sector to represent Kenya,” said Mr Simon Chacha, the external trade secretary.

Kenya is one of the top non-oil exporters to the US under the duty-free Agoa instrument to sell fresh cut roses, sport fishing supplies, nuts, plastic products, jewellery, and essential oils and apparel.