This archive report was first published on 23 July 2019.
As the world becomes increasingly interconnected, economic diplomacy has emerged as a crucial factor in driving business growth and securing investment opportunities. This is particularly evident in the current era of dwindling trade barriers and border restrictions, where technology has made it easier for businesses to operate globally.
According to Richard Ngatia, President of the Kenya National Chamber of Commerce and Industry (KNCCI), economic diplomacy deals with the nexus between power and wealth in international affairs. It not only promotes a country's prosperity but also manipulates its foreign commercial and financial relations in support of its foreign policy.
As a major theme of external relations for virtually all countries, economic diplomacy involves the collaboration of various stakeholders, including economic ministries, trade and investment promotion bodies, chambers of commerce, and foreign ministries. The current trends in economic diplomacy include increasing collaboration between State and non-official agencies, as well as the increased importance given to WTO issues, free trade agreements, and accords covering investments, double taxation avoidance, and financial services.
Abroad, embassies, consulates, and trade offices play a crucial role in handling economic diplomacy. The main focus is on promotion, to attract foreign business, investments, technology, and tourists. Economic diplomacy connects closely with political, public, and other segments of diplomatic work.
President Uhuru Kenyatta's recent visit to the Common Market for Eastern and Southern Africa's (Comesa) Source 21 International Trade Fair and High-Level Business Summit is a clear manifestation of the importance of regional blocs and Nairobi's positioning as a regional economic hub and preferred conferencing destination.
The 'Big Four Agenda' outlined by President Kenyatta presents unlimited opportunities for the local business community and foreign investors. This includes food security, affordable housing, manufacturing, and universal health coverage, which will open avenues to investments, create jobs, and facilitate skills transfer for Kenyans on new competitive technologies.
The Kenya National Chamber of Commerce and Industry (KNCCI) has embarked on an aggressive push to expand trade opportunities in international markets through its extensive network. The automation of the issuance of Ordinary Certificates of Origin has enhanced efficiency and security of the process, with fee collection increasing from Sh1.6 million to Sh4.5 million per month since its introduction in late 2015.
Effective day-to-day economic diplomacy by foreign service officers will ensure that Kenya statecraft achieves the best for the country.
