Introduction

The 2024 Summit of the Forum on China-Africa Cooperation (FOCAC), set to take place in Beijing, presents a unique opportunity for Kenya to bolster its economic ties with China. As the second-largest economy in Africa, Kenya has positioned itself as a key player in the region’s economic landscape. This year’s summit comes at a critical time when Kenya is looking to expand its export market, attract new investments, and integrate more deeply into the global economy. Cynthia Kamau, director of the Kenya National Chamber of Commerce and Industry (KNCCI), emphasized the importance of FOCAC in achieving these goals, highlighting the potential for significant trade deals and partnerships.

FOCAC: A Pillar of China-Africa Relations

Since its inception in 2000, FOCAC has evolved into one of the most important platforms for dialogue and cooperation between China and Africa. The triennial summit brings together leaders from across the African continent and China to discuss and advance mutual interests, particularly in trade, investment, infrastructure development, and cultural exchange.

FOCAC has been instrumental in driving China’s engagement in Africa, with Beijing committing billions of dollars in financial aid, loans, and investment projects across the continent. The 2024 summit, themed “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future,” reflects the deepening strategic partnership between China and Africa, one that is grounded in shared economic interests and a vision for sustainable development.

Kenya’s Strategic Goals at FOCAC 2024

For Kenya, FOCAC 2024 is not just another diplomatic event; it is a critical opportunity to advance its economic agenda. The Kenyan government, led by President William Ruto, has outlined several key objectives for the summit:

1. Boosting Exports to China

One of Kenya’s primary goals at FOCAC 2024 is to increase the volume of exports to China. Currently, Kenya’s exports to China are relatively small compared to the vast amount of goods it imports from the Asian giant. According to the Kenya National Bureau of Statistics, in 2023, Kenya exported goods worth approximately $150 million to China, while imports from China totaled over $4 billion. This trade imbalance is a concern for Kenyan policymakers, who see FOCAC as a platform to negotiate better terms and market access for Kenyan products.

Kenya’s export strategy will likely focus on agricultural products, which are a significant part of the country’s economy. Kenya is one of the world’s leading producers of tea, coffee, and horticultural products, all of which have potential markets in China. Tea, in particular, has been a focal point of Kenya’s trade with China, with recent deals involving Kenyan tea companies securing business worth 300 million shillings (about $2.33 million) in China, thanks to efforts led by the KNCCI.

Moreover, the Kenyan government is pushing for diversification of exports beyond agriculture. There is a growing interest in exporting more manufactured goods, such as textiles, leather products, and processed foods. These sectors have the potential to create jobs and reduce the trade deficit with China, making them a priority at FOCAC 2024.

2. Attracting Chinese Investment

Another key focus for Kenya at FOCAC 2024 is attracting Chinese investment in critical sectors of the economy. China has already established itself as a significant investor in Kenya, particularly in infrastructure projects such as the Standard Gauge Railway (SGR), which has transformed transportation in the country. However, Kenya is keen to attract more investment in other sectors, including manufacturing, energy, and technology.

The KNCCI, which is playing a central role in coordinating Kenya’s participation at FOCAC, has been actively engaging with Chinese businesses to explore new investment opportunities. The chamber’s director, Cynthia Kamau, highlighted that the KNCCI opened an office in Changsha, China, in 2023 to facilitate business matchmaking and promote Kenyan products. The office has been instrumental in securing deals and is part of a broader strategy to establish a more permanent presence in key Chinese cities such as Guangzhou and Shanghai.

Attracting investment in technology and innovation is particularly important for Kenya, which is positioning itself as a regional hub for tech startups. Nairobi, often referred to as “Silicon Savannah,” has seen a surge in tech-related ventures, and there is growing interest in Chinese investment in this sector. The KNCCI’s delegation to FOCAC will be looking to explore partnerships that can bring Chinese expertise and capital into Kenya’s burgeoning tech industry.

FOCAC 2024: A Platform for Collaboration

The 2024 FOCAC summit is expected to be a platform for deepening collaboration between China and African countries, including Kenya. The summit’s agenda will likely focus on several key areas:

1. Infrastructure Development

Infrastructure remains a top priority for FOCAC discussions, as it is critical for economic growth and development. China has been a major partner in Africa’s infrastructure development, funding and constructing roads, railways, ports, and airports across the continent. In Kenya, the SGR project is a prime example of how Chinese investment in infrastructure can have a transformative impact.

At FOCAC 2024, Kenya is expected to seek further collaboration in infrastructure development, particularly in areas such as energy and transportation. The Kenyan government has ambitious plans to expand its energy capacity, including the development of renewable energy sources. Chinese companies, which have extensive experience in this sector, are likely to be key partners in these initiatives.

2. Trade and Economic Cooperation

Trade and economic cooperation will be at the forefront of the FOCAC discussions, with both China and African countries looking to enhance their economic ties. For Kenya, this means not only increasing exports to China but also attracting Chinese businesses to set up operations in the country.

The KNCCI’s efforts to promote Kenya as an investment destination will be complemented by government initiatives aimed at improving the business environment. The Kenyan government has been working on reducing bureaucratic hurdles, improving infrastructure, and providing incentives for foreign investors. These efforts are expected to be showcased at FOCAC 2024, with the goal of attracting more Chinese businesses to Kenya.

3. Innovation and Technology Transfer

Innovation and technology transfer are increasingly important aspects of the China-Africa relationship. As Africa seeks to modernize its economies, there is a growing need for technology and expertise that can drive industrialization and economic diversification. China, with its advanced technological capabilities, is well-positioned to support these efforts.

At FOCAC 2024, Kenya will likely explore opportunities for technology transfer in sectors such as manufacturing, agriculture, and information technology. The KNCCI has already indicated its interest in learning from Chinese best practices and innovations, which can be adapted to the Kenyan context. For example, Chinese agricultural technologies that enhance productivity and sustainability could be invaluable in helping Kenya address food security challenges.

Kenya’s Vision for the Future

The 2024 FOCAC summit is not just about immediate trade deals and investments; it is also about laying the foundation for a long-term strategic partnership between Kenya and China. This partnership is seen as essential for Kenya’s vision of becoming a middle-income country by 2030, as outlined in its Vision 2030 development plan.

To achieve this vision, Kenya needs to diversify its economy, create jobs, and improve the standard of living for its citizens. China’s role as a development partner is crucial in this regard, providing not only financial resources but also expertise and technology that can drive Kenya’s modernization efforts.

President William Ruto’s leadership at FOCAC 2024 underscores the importance of this summit for Kenya’s economic future. By leading a high-level delegation to Beijing, Ruto is signaling Kenya’s commitment to deepening its relationship with China and positioning the country as a key player in the global economy.

Conclusion: A New Chapter in China-Kenya Relations

As the 2024 FOCAC summit unfolds, all eyes will be on the outcomes and agreements that emerge from the discussions. For Kenya, this summit represents a significant opportunity to advance its economic agenda, strengthen its ties with China, and secure the investments and partnerships needed for sustainable growth.

The Kenya National Chamber of Commerce and Industry, under the leadership of Cynthia Kamau, will play a critical role in ensuring that Kenyan businesses are well-positioned to take advantage of the opportunities presented by FOCAC. By focusing on increasing exports, attracting investment, and fostering innovation, Kenya is poised to emerge from this summit with a stronger and more diversified economy.

As Kenya and China continue to collaborate, the 2024 FOCAC summit could mark the beginning of a new chapter in their relationship—one that is characterized by mutual benefit, shared prosperity, and a commitment to building a high-level China-Africa community with a shared future.

Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd September, 2024