South Sudan is good market to Kenyan

July 26, 2006 (NAIROBI) — Southern Sudan has become good market for locally produced goods, earning Kenya Sh6.8 billion from exports last year, the daily Nation reported

In contrast Kenya imported a mere Sh218 million worth of goods from the war-torn region, according to Export Promotion Council (EPC) manager, Herbert Kassamani.

Speaking at a breakfast meeting in Nairobi’s Panafric hotel, ahead of a major trade fair in Juba, Southern Sudan on August 10 to 12, Kassamani urged Kenyans to take advantage of peace in Sudan to venture the country.

“It is positive because it shows we already have a trading relationship with Southern Sudan which is a potential and growing market for Kenyan products and services,” he said, adding that the imbalance was the “essence of trade.”

The fair has been organised by a non-governmental organisation, Bread of Life Africa (Bola), and sponsored by among others Southern Sudan Airlines, Network of the World and Crown Berger. Up to 30 Kenyan firms have already set up business links to Sudan following the peace deal between the Khartoum government and Sudanese People’s Liberation Movement/Army. “Some 25,000 Kenyans are already doing business in Southern Sudan,” he said, adding that Kenya Commercial Bank and East African Portland Cement were the biggest.

Local firms have also won contracts to repair some of the roads in the area, and thousands of Kenyan teachers are also flocking the country.

Market research shows that the region’s export worth is $1.4 billion annually (about Sh108 billion) of which Kenya has 2.2 per cent of the market. “A huge chunk remains unexploited,” Mr Kassamali said. Coffee, tea, cement, yeast, baking powder, perfumes and toilet soaps were goods in high demand. There was also huge demand for goods and services in construction, manufacturing, accommodation and cleaning.

Currently, the Middle East, Far East, Europe, US, Egypt, Kenya and Uganda are main exporters of goods and services to southern Sudan.

Kenya is even better placed to capitalise on its proximity to Sudan, and historical ties with the region to benefit through trade.

Mr Kassamani asked the Sudanese government to remove visa requirements for Kenyans going to the country to ease flow of business. “Kenya should also enhance market information so that business community can understand needs of customers. The perception of Kenyan businessmen now is that south Sudan is now changing from problem to an opportunity,” he said.

Bola chief executive officer, Don Reld, said the the first person who brings success to the region (Southern Sudan) will benefit most.

“Buyers will have an opportunity to see who are serious players who can supply what is needed,” he noted.

The fair has attracted participants from America, United Kingdom, Switzerland, India, Canada, Middle East, South Africa and Uganda among others.

(Nation)