Kenya must deepen its economic diplomacy in a globalised world

Recent global crises such as Covid-19, global inflation, and the Russian invasion of Ukraine have demonstrated that countries must reassess their priorities. Geopolitical issues such as the US-China trade wars and vaccine inequity at the peak of Covid-19 showed us that nations must assess their own industrial capabilities, overreliance on other nations, food security, energy security, and other economic interdependencies.

In this context, economic diplomacy has become super critical for Kenya as an emerging economy. While other forms of diplomacy (political, cultural, etc.) are important, economic leverage has become even more vital in dictating the terms of engagement in the current world.

Traditional alliances based on colonial/historical ties or geographic proximity have given way to more pragmatic bilateral relations based on shared ideologies and economic interdependence. Having a common enemy is simply not enough. You must show us the money.

The world today is increasingly interconnected yet at the same time deeply fragmented. Globalisation continues to see more fragmentation, especially along geopolitical lines and trade relations.

This calls for each nation to rethink its foreign policy strategy. Economic diplomacy is not just about alliances; it's about self-assertion, value creation, and negotiation power. A case in point is the China-US trade wars or the EU-Russia energy relations at a time of war in Ukraine.

For Kenya, this means alignment with partners far and wide that offer us reciprocal economic benefits. Not just promises, but actual benefits. The onus falls on the President and his core team, including his entourage of economic diplomats/experts and negotiators that accompany him on many foreign trips.

Ministries like Foreign Affairs, Investment, Trade and Indusrty, Treasury and Tourism have a front seat in making this happen. The AG's Office that handles the negotiation of international trade and investment treaties is the other crucial team. We must continue to position Kenya in the global economy, not just by words, but by deeds.

President William Ruto's current term is an opportunity to deepen the nation's standing using economic diplomacy as a vital tool of engagement and alliance building. This is no longer an option if we are to become globally relevant and competitive. In a world of deeply fragmented globalisation, may we not fall through the cracks.

The writer is an economist and PhD International Economics candidate at the Geneva Graduate Institute, Switzerland.