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Why more Irish firms are eyeing East Africa
The skyline of Nairobi CBD on June 23, 2021. The CAIPS aim to help Kenya reverse its reliance on imports, shifting from 80 percent imported consumption to greater local production.
More Irish businesses are looking at East African countries including Kenya, Tanzania and Uganda for expansion marking a shift from South Africa and Nigeria that have traditionally served as their launchpads into Africa.
The development was revealed during a recent Africa-Ireland Trade Horizons Conference held in Dublin, Ireland where businesses, trade bodies and government officials met to discuss emerging opportunities on the continent.
East Africa emerged as one of the attractive destinations for Irish businesses, with several firms that already have a presence in countries such as Kenya, Uganda and Tanzania lining up more investments.
At least five Irish businesses are considering setting up in EAC over the next three years, according to Enterprise Ireland— government agency responsible for supporting Irish businesses in sectors such as manufacturing to explore global markets.
Sectors such as agribusiness, technology, education and renewable energy top the priority for Irish firms that have set their eyes on East Africa, according to Neale Richmond, Ireland’s minister for International Development and Diaspora.
Mr Richmond said the interest in East Africa has been fuelled by the success that several Irish companies including multinational taste and nutrition company, Kerry Group, which opened in Kenya in 2020 and has been expanding in the region.
“Irish companies have been successful in Africa and East Africa is now emerging as a key location. Kerry moved to Nairobi a couple years ago and has expanded to Tanzania and keeps expanding and can’t hire staff quick enough in order to meet the demand for their goods,” said Mr Richmond in an interview.
“There is a mix of investments lined up particularly for Kenya and Tanzania. From both economic and development point of view, Nairobi and Dar es Salaam are key locations and we see this increasing as more companies show interest. Renewable energy is an area of interest to us given the climate change impact being felt on the continent.”
Kerry Group operations director Chris Teegan said during a panel discussion on food, agriculture and sustainable development that the firm plans to step up its investments in Kenya, Uganda and Tanzania and is also open to entering Ethiopia.
“You have to be local to develop. That is what we learned. We started in Kenya then Uganda and Tanzania. Our next stop is Ethiopia,” said Mr Teegan.
Besides direct investment, Ireland companies are also sustaining their focus in East Africa’s market as a destination for their exports.
Irish companies’ exports to East Africa have been growing at about seven percent annually, with countries such as Kenya also sending exports to the European country. In 2024, Kenya exported tea worth €26 million (Sh3.92 billion) to Ireland.
“If we can maintain that steady growth in trade by seven percent, the investment figures are going to follow because the more they trade, the more they see the opportunities to invest in various locations. There is an opportunity to expand investments by at least 10 percent in the next three to five years,” said Richmond.
Juma Mukhwana, the Principal Secretary for State Department of Industry, said EAC is moving to harmonise tariffs on goods flowing between the region and European Union (EU) countries such as Ireland and this is likely to sustain trade relations.
In addition, Dr Mukhwana sees the recent trade tariffs imposed by US President Donald Trump on countries across the world helping deepen relations between EAC and EU through arrangements such as Economic Partnership Agreement (EPA).
“Trump’s tariffs present opportunities to absorb trade that will lose EU market,” he said, asking Irish firms seeking EAC for exports to consider a balance of quality with price and understand the value chain.
“For whatever product, you have to understand the value chain. For impact, you must seek to know what is getting into the hands of producers. We have to stop shipping into Africa goods that are already in Africa.”
Irish firms are seeking to diversify by riding on mutual beneficial relationships and regions such as EAC are on the radar according to Ireland Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation, Niamh Smyth.
Ms Symth said Ireland was looking at strengthening collaboration between Irish enterprises and those in Africa by laying the building blocks and bridges to navigate the current global market turbulence.
Mr Richmond told the conference that while many economies in the world are drifting towards an economic policy of “protectionism and barrier creation,” free trade practices hold more benefits. The minister, who has made visits to countries such as Kenya and Tanzania, said more Irish businesses are willing to cross into the Africa as part of the strategy to diversify markets.
“Now is the time for diversification of markets. Now is the time for Irish companies to look for more partners and look at the opportunities that lie in the continent that has the youngest population and fastest growing economies. The future is Africa,” said Mr Richmond.
“In an unstable global economic environment, where new markets are constantly being sought, looking south to Africa – with its youth bulge and growing middle class – is something Irish business needs to be looking at.”
The Africa Ireland Trade Horizons conference marked the third of such conferences seeking to strengthen trade ties between Ireland and Africa.
Total trade in goods between Ireland and Africa grew by 7.9 percent from €2.4 billion (Sh359.7 billion) in 2023 to €2.6 billion (Sh389.7 billion) in 2024, setting a new record.
