Kenya-China trade opens doors for tour consultants
Chinese ambassador Liu Guangyuan and Prof Hellen Sambili, acting Minister for Higher Education Science & Technology. Many Kenyans are visiting China. Fredrick Onyango
Growing trade ties between Kenya and China have opened a business line for private consultants who are cashing in by making travel arrangements for entrepreneurs visiting the country.
The China Information and Culture Communication Limited (CICCK), a company based in Nairobi, is flying Kenyans to Guangzhou, China for business tours that seek to link them with producers of goods from the Far East country.
Local banks have also latched onto the idea of organising business and contact-building trips to key markets around the world and especially in China and Hong Kong with most of them establishing clubs to cater for this segment of entrepreneurs.
“Over the past fours years, trade interest has progressively shifted from computer accessories, to importation of motorbikes after the government zero-rated importation tax,” said Gao Wei, the director for CICCK.
Kenya’s imports from China increased four-fold to Sh120.6 billion last year from Sh29.7 billion in 2006, according to the Economic Survey 2011.
However, the balance of trade has over the years been grossly titled in favour of China with exports to the country last year being Sh2.5 billion, representing an increase of only Sh1 billion since 2006.
Total export earnings from the Far East countries, including India, Japan and Pakistan, last year were worth Sh51 billion, an increase of 27.9 per cent.
The nine-day trip by CICCK comes bundled as a package consisting of an international return ticket, visa processing fees, accommodation at a three-star hotel, special cargo shipment fees, city tours as well as access to business consultants while in China. A return trip costs each person Sh129,000 ($1,490).
Barclays Bank, National Bank and KCB are some of the lenders that have invested in the business clubs, which are mostly composed of modest small and mid-sized entrepreneurs (SMEs) seeking new stock for their business as well as grow their new contacts base and market for their products.
Such clubs have seen them benefit from several thematic trips to key international developed trade markets like Dubai, China and Hong Kong as well as local ones.
KCB has two groups of business clubs; Biashara club for SMEs and S&L developers club for those interested in the mortgage business.
“We arrange educative workshops and take them for local and foreign trips where they learn how to improve their businesses. This is part of our strategy to empower those at the bottom of the pyramid,” Mr Martin Oduor-Otieno, the managing director for KCB said.
“On trips to places such as Asian countries where the language barrier is a hindrance, we always ensure that we have a contact person in the country to assist our members as well direct them to the right places to do business,” said Mr Oduor-Otieno.
The banks say that this model of empowering those at the ‘bottom’ of the pyramid has enabled them increase their membership numbers to 2,000 in Biashara Club and 500 in their S&L developers club.
“The current trend indicates that many visitors are increasingly gaining a bias for importing construction materials and hardware equipment in response to the growing local real estate business, said Mr Gao.
CICCK has an annual calendar of between 10 to 12 trips where an extra 200 people come on board through their culture exchange programme.
Growth in trade
The shuttling company has seen its customer base increase from an annual average of 50 people when it started off in 2006, to the current figure of 500 people.
The growth in trade with China last year was buoyed by increased imports of; base stations, machine tools and telephones for cellular networks.
One of the bottlenecks facing the company is the language barrier between locals and potential business partners while in China.
To circumvent this, the CICCK employs a dedicated interpreter for every six visitors whose task is to handle any communication issues that may arise. Mr Gao said the package also involves preferential shipping deals since the company has entered into partnerships with shipping companies .
This he says enables clients to get cheaper services as compared to those traders who ship in goods on their own.
