- Cairo-based lender CIB made this announcement during the first Egypt-Kenya forum held in Nairobi, Kenya.
- Egypt is shifting its economic strategy by enhancing collaboration with sub–Saharan Africa
- Kenya exports tea, coffee, nuts, meat, wheat and flowers, skin and hides as well as live animals to Egypt..
Lender Commercial International Bank (CIB) has identified partnerships as key drivers of growth that will power investments by bringing together businesses seeking to explore Egypt-Kenya trade opportunities.
Kenya’s Prime Cabinet Secretary Musalia Mudavadi says the entry of CIB into Kenya’s market is a major win for Africa’s quest to enhance trade among its 54 member states.
Speaking at the Egypt-Kenya trade forum in Nairobi attended by roughly 40 Egyptian companies drawn from construction, transport, water, tourism, manufacturing and healthcare sectors, Mudavadi said Kenya was at the forefront of opening its market to African countries to boost intra-Africa trade.
“As a government, we will facilitate and give you the necessary support so that trade, commerce and investments can grow and benefit the people in our two countries,” said Mudavadi.
Kenya’s Foreign Affairs minister Mudavadi, who was accompanied by his Egypt counterpart Sameh Hassan Shoukry said CIB was welcome to do business in East Africa’s largest economy as well as use Nairobi as its launchpad to expand into the rest of Sub-African Africa.
Egypt-Kenya trade ties
In the same forum, CIB pledged support for traders across East Africa seeking to directly conduct business in Egypt. The lender, highlighted its role in facilitating trade for Egyptian businesses currently working in Kenya.
“Over the past two years, we have played a great role in funding trade and investment opportunities for Egyptian companies doing business with Kenya. Since we now have a solid footprint in Kenya, we have provided a seamless platform for the businesses to unlock growth opportunities and we see that we can play an integral role in doing the same for Kenyan companies doing business with Egypt,” said Daphne Maina, the Acting CEO of CIB Kenya.
She added “Since we now have a solid footprint in Kenya, we have provided a seamless platform for the businesses to unlock growth opportunities and we see that we can play an integral role in doing the same for Kenyan companies doing business with Egypt.’’
Egypt is shifting its economic strategy by enhancing collaboration with Sub–Saharan Africa through public-private partnerships such as the Egypt-Kenya trade forum that attracted 40 Egyptian firms.
CIB is playing a critical role in this and has coordinated the event in close collaboration with Kenya’s Ministry of Investment, Trade & Industry and the Arab Republic of Egypt Embassy in Nairobi.
Trade opportunities between Nairobi and Cairo
CIB’s niche lies in facilitating exports and it is working to grow business links between the two countries such as with tea, where Egypt is the second-largest market for Kenyan tea exports.
“As a new entrant into the Kenya banking sector, we feel we have been welcomed with open arms by clients and regulators and so I have no doubt that Egyptians wishing to do business in and with Kenya will not only find it fertile ground full of opportunities, but will also be supported and assisted by those in government and the regulatory bodies to ease your way into this great market,” noted Mr. Essam El Wakil, Independent Board of Directors & Chairman Board Risk Management Committee of CIB Kenya giving his remarks.
Kenya also exports coffee, nuts, meat, wheat and flowers, skin and hides as well as live animals to Egypt. On its part, Egyptian businesses ship fertilizer, textiles, building materials, medicines, vehicles, electronic appliances, electricity accessories and sports equipment among others to Kenya.
Read also: Egypt’s Economic Turnaround on the Horizon
Egypt-Kenya trade forum explores partnerships
Egyptian companies are in Kenya to explore potential partnerships as the two leading economies in Africa look to grow trade beyond traditional commodities such as tea.
Through the Egypt-Kenya trade forum, a number of companies are seeking to expand operations in metal and pipes, sanitation, banking, logistics, footwear, chemicals, glass, packaging and kitchenware.
These potential collaborations come at a time that Egypt has been pushing to foster economic partnerships within the East African region with Kenya as a launch pad.
Further, Egyptians are equally eyeing Kenya’s banking sector as one that presents lucrative opportunities for country’s financial institutions seeking to expand their footprint in East Africa’s financial hub.
Egypt’s largest private sector listed bank, the CIB, says it is gearing up to bolster trade relations with East Africa, with Kenya serving as its entry point into the Sub-Saharan region.
The increasing adoption of digital banking services and the rise of fintech startups in Kenya have attracted Egyptian banks keen on offering innovative financial products and services to cater to the evolving needs of Kenyan consumers and businesses.
“The trade between Kenya and Egypt is quite balanced in the sense that, Egypt is the second largest importer of Kenya’s tea, after Pakistan so in that regard there are sufficient policies put in place to be able to facilitate that especially between the two countries,” added CIB Kenya acting CEO Daphne Maina.
Key sectors on target: infrastructure, logistics
The firms also look to capitalise on Kenya’s construction boom and infrastructure development projects. In the area of logistics, Egyptian companies are eyeing Kenya’s strategic location as a gateway to the broader East African market.
With Kenya’s improving infrastructure and efficient transportation networks, Egyptian logistics firms see the country as a pivotal hub for expanding their distribution networks and streamlining supply chain operations across the region.
Companies specialising in chemicals, glass packaging, and kitchenware are also exploring opportunities to cater to Kenya’s manufacturing sector and consumer goods industry.
Latest data reveals a steady increase in Egypt-Kenya trade volume, reaching $663.6 million (KES94.7 billion) in 2022.
