Local firms to ride on Kenya-China deals to get global exposure

The Kenya-China Economic and Trade Association Big Four Development Agenda workshop took place last week in Nairobi, in an event that is likely to see international and local companies forge closer partnerships.

The event was hosted by the Government of Kenya in collaboration with the Chinese Embassy, the Kenya Private Sector Alliance (Kepsa), and the Kenya China Economic and Trade Association (KCETA).

The participants discussed practical collaborative approaches that could be put in place to accelerate the Big Four Development Agenda launched last year by President Uhuru Kenyatta during the Jamhuri Day celebrations.

“Kenya is a long-standing partner to China, and it is our hope that the two countries shall continue to work closely in order to see the realisation of the Big Four Agenda for economic development by the Jubilee government. We are committed to according any necessary support to Kenya as they work towards this great plan,” said Mr Liu Xianfa, Chinese ambassador to Kenya at the event.

The agenda include providing universal health care for all Kenyans, ensuring food security and adequate food nutrition by 2022, creating jobs in the manufacturing industry and ensuring that the sector contributes 15 per cent to Kenyan’s GDP as well as deliver at least 500,000 affordable housing units.

“Entrenched in our agenda is the plan to facilitate affordable housing and implement a homeownership programme that will ensure every working family can afford a decent home. Our target is to create 500,000 new homeowners in the next five years,” said Transport and Infrastructure Cabinet Secretary, James Macharia at the event.

The joint forum featured Chinese enterprises in Kenya such as Huawei Technologies, Twyford Ceramics, and AVIC International. Huawei Technologies is currently implementing the Nairobi Intelligent Traffic System (ITS) project which is part of the Nairobi Urban Transport Improvement Program (NUTRIP).

It is funded to the tune of Sh1.4 billion by World Bank and the Government of Kenya with the Kenya Urban Roads being the implementing agency.

Avic International is currently undertaking a Sh40.5 billion construction works for its 30-floor Africa headquarters in Nairobi while Ceramic tiles manufacturer Twyford recently established a modern manufacturing plant in Kajiado County with an investment value of $30 million.

READ: Chinese firm Avic to spend Sh40.5bn on Nairobi hub

In participating in such a forum and collaborating with local industry players, these international companies could benefit in increasing their brand awareness which could see them win future contracts.

A paper on the rewards and risks of business collaboration with governments and industry players published by Stanford University, noted that companies that adopt a shared value mindset and collaborated in addressing social challenges are positioned to sustain, compete, and thrive in global and domestic markets.

“There is a benefit in collaborating with other industry players and the government. Companies can become a positive architect in the socio-economic ecosystem of forces that surround customers, potential employees, and suppliers. This can increase their social license to operate, mitigate risk, and surface new, unexpected, and unforeseen business opportunities,” read the Stanford paper.

One of the companies that have employed this strategy is Dutch brewing company Heineken. In 2011, it announced that it would locally source 60 per cent of its raw materials, such as sorghum, rice, maize and barley, used in the manufacture of its African beer brands.

The initiative was in a bid capture the opportunity in emerging markets to grow the Heineken brand on a global scale by manufacturing consumer-inspired and oriented products. It partnered with NGOs that provide agricultural support and training for small-holder farmers in sourcing the produce from local farming communities.

Following this, its Nigerian brewery was awarded the Best Company in Supply Chain Value Creation at the Nigeria Social Enterprise Report and CSR Awards.

“The Nigerian Breweries received this recognition for increasing the volume of sorghum production in the country and creating 682,000 jobs in the country,” reported Heineken in its 2012 sustainability report.

- African Laughter