This archive report was first published on 8 October 2019.
Published on October 8, 2019, Kenya's trade with Tanzania has been marred by roadblocks and declining exports. Despite the construction of a Sh20 billion highway linking Arusha and Athi River, Kenya's annual exports to Tanzania have dropped by more than a third since 2014 to Sh29.75 billion.
Tanzania has also been accused of placing roadblocks on Kenya's trade with Malawi, Zambia, and Zimbabwe. Analysts point to Dar's departure from Comesa to join the Southern Africa Development Community (SADC) as a sign of Tanzania's intentions to limit Kenya's trade in the region.
Instead of trying to persuade Tanzania to open its market, Kenya should explore trade opportunities in other Comesa member states. The Democratic Republic of the Congo (DRC) offers a promising alternative, with its large population and strategic location making it a gateway to Namibia, Botswana, Zambia, and Zimbabwe.
Kenya's leading indigenous banks, KCB and Equity, have already established a strong presence in these countries and can serve as enablers for other business entrepreneurs. To succeed, Kenya's leaders must engage with their counterparts in these countries to agree on the type of industries each country will establish.
By adopting a similar model to Europe's design and production of Airbus planes, Kenya can create jobs and stimulate economic growth. The attractiveness of this model lies in the availability of raw materials in the DRC and other countries, making it an ideal location for setting up industries.
