Why Kenya needs to take a different development path

Michael Porter would argue that every nation has a comparative advantage — its capabilities and resources position it to deliver certain goods or services to an advantage over others.

Kenya has a great wealth of resources to tap from — rich flora and fauna, arable land, minerals and an educated and highly adaptable workforce on which manufacturing and services thrive.

The plethora of resources creates endless possibilities for Kenya and probably explains why we have a diversified economy. It also means there are numerous options from an international trade perspective.

Vision 2030 sets out the aspiration for the country — a newly industrialising, middle-income country providing high quality of life to its citizens.

To achieve this vision, Kenya needs to take a different development path. Historically, Kenya is known for tea, coffee, flowers and runners. Singapore, on their part, appreciated their limited natural resources and opted for services — shipping, tourism and financial services to mention a few. They did not have the expertise so they created an attractive environment under Lee Kuan Yew.

In essence, they built a vibrant economy through imported skilled workers. Today, Singapore is an industrialised society with over 3,000 multinational corporations accounting for more than 75 per cent of its manufacturing output and direct export sales. The Port of Singapore is the world’s second busiest after Shanghai.

Singapore is now the 15th largest trading partner of the US and receives over 10 million tourists a year. Kenya and Singapore were apparently at par at independence. When asked what they loved about Kenya, many tourists responded, “warm and welcoming people”. Herein lies the answer to the untapped potential of the country and the resource that gives us an edge over others — our people.

Kenya has one of the most robust, advanced and vibrant financial sectors in the region. Why not build on this to provide the world with some of the best finance professionals? Our medical professionals are also known to hold their own on the global stage.

Lastly, we are recognised the world over for our innovation in the telecommunications and technology space. Imagine creating large pools of professionals in each of these areas and signing agreements with our trading partners to give them the talent they need.

Ethiopia is focusing on strengthening their enabling and supportive sectors hence we can supply them with health, education, financial and technology professionals.

Kenya needs to define its trading strategy with its large trading partners —Uganda, Tanzania, China, the US, UK, the Germany, etc.

By simply determining their current imports and targeting to substitute them with those from Kenya will create a beginning. How about packaging cultural and history-related tourism targeting Americans?

Or uplifting its medical facilities and services to be the medical hub of Africa and drive medical tourism?

Why not be a leading manufacturer of technology related products targeting Africa through Comesa?

Regionally, Kenya needs to identify development plans of its trading partners and work towards supporting them.

If her East African counterparts are putting up industrial parks for textiles, for instance, who will supply related equipment? The possibilities are endless.

At the end of the day one thing stands out — a different approach is required in terms of our international trade and it all begins with investment in our people.

Sam Watene, senior advisor, Altima Africa Ltd.