By Luke Anami
Kenya has identified 21 countries as potential export markets in an effort to move away from the traditional ones, Trade Minister Amos Kimunya has said.
In a speech read on his behalf by Assistant Minister Omingo Magara during the launch of the National Export Market Development Programme yesterday, Kimunya said the country must diversify markets and products.
"Kenya’s export destinations are concentrated in a few markets. Comesa and the EU for 60 per cent of Kenya’s total exports, " he said.
"The export basket is narrow hence the need for export market consolidation, enlargement and diversification," he added.
The Export Promotion Council (EPC) has identified and classified the export countries into three groups.
Besides the traditional markets that include the European Union, America and the East African Community, the EPC has identified growth markets, which include Spain, Russia, Belgium, India, Hong Kong, Rwanda, Zambia and Sudan.
Chief Executive Matanda Wabuyele said the council had developed websites, while enlarging the current export markets.
"We have identified the third group, which includes the emerging markets such as, Burundi, Malawi, Ethiopia, Egypt, Sweden, China, Israel, Switzerland, Japan, Kazakhstan, Poland, Nigeria and South Africa," said Wabuyele.
Few options
Kenya’s export markets have in the past been limited to a few countries within the Comesa region and the EU, where about 31.4 per cent and 26.4 per cent of our exports go respectively.
The minister noted that there is a slowing demand for exports in Kenya’s traditional Export markets of European Union and USA due to the global
Kenya must diversify and brand her products, and add value to the ten products that are currently being exported if they have to maintain their presence in the export market.
"We should engineer and add value to our products. While farmers should be encouraged to produce farm products not only for consumption but for other purposes such as exports," said Kimunya.
There is, therefore, need for promotion of the country’s image in these markets as a reputable supplier, strengthening of already established distributorships and agency networks, test-marketing of new products and countering competition both within and without the target markets.
"Continued market monitoring, product development and marketing efforts are required to consolidate and expand market share," said the minister.
With a 30 per cent contribution to the country’s Gross Domestic Product, the export sector holds enormous potential to the country’s economy recovery.
Branding opportunities
"The expansion of Kenya’s exports can only be realised through conscious efforts in enhancement of corporate and brand identities," said the minister.
The Minister encouraged private companies, trade associations and the statutory marketing organisations to participate in the export market development programme, which was developed to ensure that it addresses interests of exporters, actual market research findings and recommendations by commercial attaches in existing markets.
