High-tech greenhouse growers in the UAE may soon observe an increase in organic produce imports from Kenya, following the recently signed Comprehensive Economic Partnership Agreement (Cepa) between the UAE and Kenya. This agreement, the first of its kind with a mainland African nation, seeks to enhance trade by removing barriers and streamlining customs processes.
Kenya, Africa's seventh-largest economy, exported $3.5 billion worth of goods to the UAE in 2023, making the UAE its sixth-largest export destination. Key exports include meat, fruit, vegetables, and flowers, while imports from the UAE consist of petroleum, machinery, and chemicals.
The Cepa is anticipated to boost Kenya's agricultural exports and present new investment avenues for UAE companies. With over two-thirds of Kenyans dependent on agriculture, expanding food exports remains a governmental priority under the Vision 2030 development program.
Despite opportunities, challenges persist, including weak institutional capacity and limited access to affordable financing. Kenya's largest bilateral creditor, China, has reduced lending, affecting infrastructure projects like the standard-gauge railway.
UAE firms are already active in Kenya. Majid Al Futtaim operates 23 Carrefour branches, while Amea Power develops energy projects, including wind and geothermal. The UAE's G42 and EcoCloud plan a green energy-driven data center at Olkaria geothermal hub.
Abu Dhabi aims to aid Kenya's mineral sector development, with a memorandum signed for exploration and mine development. The Abu Dhabi sovereign fund ADQ has also committed up to $500 million in investment support, alongside a joint venture with US Orion Resource Partners for strategic investments in Africa's metals and mining sector.
Source: AGBI