Kenya should work towards mutually beneficial economic ties with US, China
Thika Highway. A number of infrastructure projects are being financed by the Chinese government and firms. PHOTO | FILE
A visit by Chinese President Xi Jinping to the US prior to the commencement of the annual United Nations General Assembly has empirically toned down the belief in most public spaces that these two economic giants hardly see eye to eye after four years of Chinese absence.
This is largely attributed to recent hostile relations arising from multiple accusations between the countries — ranging from China’s alleged cyber crimes, aerial confrontations, greenhouse gas emissions, military aggression (in South China sea) to hostile economic relations.
The two countries’ head of states meeting implies the desire to work together towards strengthening their relations. This is a big moment that has actively drawn the world’s attention given their significance in shaping global socio-political and economic paths.
Such high profile visits are always accompanied by pledges and signing of agreements mostly behind closed doors. It is these agreements that open new chapters in international relations and new trade ties.
State visits and international meetings are normally used by world leaders to iron out their issues, create better diplomatic relations and enter into new deals.
That’s why it was not surprising when President Uhuru Kenyatta also took advantage of this year’s UNGA to cut deals with US companies that have promised to commit Sh400 billion for power generation under the umbrella of Business Council for International Understanding (BCIU).
There are benefits that Kenya can reap from a good trade relationship with her foreign development partners.
China remains one of Kenya’s key bilateral partners having taken the lead in development assistance especially around infrastructure development.
Earlier, in August 2013, President Kenyatta had made a state visit to China where he also met President Xi Jinping with the aim of improving bilateral relations.
China is currently the most populous country in the world. This indicates her indisputable position as a key market for consumer goods that Kenya can take advantage of to export more agricultural produce like coffee, tea and horticultural products.
The country has also achieved a spectacular economic take off, multiplying its global weight seven times over the last 30 years to become the second largest power in terms of nominal GDP and the first in terms of exports.
Furthermore, China has set up major internationally orientated industrial companies and is increasing its investments both abroad as well as in new technologies at home, such as renewable energies to further strengthen its position.
These technologies can be shared through training of the local workforce to reduce the cost of labour and enhance our technological know-how. The experience that China has had in improving her economy is invaluable to us.
Kenya has achieved tremendous development results through our partnership with China. Through this result-oriented partnership, the Chinese have significantly transformed infrastructural growth and development in the country.
The emergence of super highways and modern storey buildings are all derived from this partnership.
Chinese firms are currently undertaking mega infrastructural projects in the country which include building the multibillion-shilling standard gauge railway which will link Mombasa to Kampala.
All these, including the solar energy project in Garissa, are of great economic value to us. The country’s relationship with China must remain as long as it can last, given that we are benefiting from it.
US’s strengths and its significance to Kenya:
Kenya and the United States have been trade partners for years. Even though the latter seems to be the biggest beneficiary of that relationship, what the country has gained from the US should be appreciated.
These benefits range from the fight against poverty, HIV/Aids and the battle for women’s empowerment, among others. But the trade relationship between Kenya and US are not fully exploited.
The US, which still stands as the world’s most outstanding superpower, is well-endowed with natural resources and valuable and competitive economical advantages that play a major role in attracting partnerships with other countries.
These include resources like natural gas and petroleum, high technological advancements, a large and generally well-off middle class with disposable income and relative financial security, and good education systems.
To prove the US’s interest in the country, President Barrack Obama’s visit to Kenya in July helped calm the mixed feelings that had grown towards Kenya’s main overseas economic partners, with the government seen as facing East to break away from the traditional trade partners from the West.
During the visit, Kenya was able to revive the deteriorating relationship we have had in the past few years with the US. The two countries signed pacts on infrastructure development and health during a ceremony at Harambee House.
The Security Governance Initiative which is a joint Country Action Plan relates to better border management, enhanced capacities for police human resource management and effective administration of justice in Kenya.
They also tackled the visa regime that would allow the American business community to use it to expand their investments while exploiting opportunities opening up in Africa through Kenya.
The two countries also signed the Co-operation in Threat Reduction Biological Engagement Programs Agreement aimed at facilitating efforts to reduce threats from naturally occurring diseases, biological attacks or “unintentional release of biological pathogens and toxins and the risks posed by non-state actors of bioterrorism.”
We have achieved a great deal of mutual benefits from the good trade partnership we have had for decades, including from tourism.
East meeting West and initiating formal and friendly social and economical agreements is of great value to us as a nation. Take, for example, the pact that US and China have made to have a joint commitment in banning the importation and exportation of ivory trade.
This would boost our local tourism that has been greatly affected by illegal ivory trade, where the region (Kenya, Uganda and Tanzania) contributes to 80 per cent of ivory seizures.
Indeed trade partners and competitors coming together to remove obstacles that are threatening peaceful economic ties and prosperity should be our aspiration to achieve the new set Sustainable Development Goals.
