The Kenya National Chamber of Commerce and Industry (KNCCI) and Etihad Credit Insurance (ECI), the UAE Federal export credit corporation has created a strategic relationship with Kenya to enhance economic cooperation by boosting international trade and investment flows and assisting the two nations' business communities, in the post-pandemic period.
The partnership was formed following the introduction of the ‘Dubai Week in Africa-Kenya' conference earlier this year, which emphasised the rising scope of commerce between the UAE and African countries in the face of the worldwide epidemic.
The Memorandum of Understanding (MoU), signed in the presence of top officials from both organisations by Massimo Falcioni, CEO of ECI, and Richard Ngatia, President of KNCCI, aims to generate chances for improved trade and investment opportunities between the two institutions.
The strategic partnership, marked by mutual support and solidarity, intends to elevate the collaboration between ECI and KNCCI in order to explore significant potential in trade and investment jointly, providing additional impetus to strengthen the UAE's current commercial connections with Kenya.
Within the terms of this agreement, ECI will hold seminars and workshops to educate KNCCI members on the benefits of trade protection measures. It will also provide market information and nation risk analyses in order to detect economic and political risks associated with UAE investment and trade.
KNCCI, on the other hand, will organise appropriate seminars, B2B meetings with qualifying firms, and events for its members, as well as promote ECI's services and products through its newsletter, website, magazine, direct mailing, and events. It will also aid ECI in gathering and disseminating information on UAE investments and exports in Kenya, as well as assisting the UAE Federal Export Credit Agency in doing due diligence on UAE exporters' customers in Kenya.
Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Minister in charge of Talent Attraction and Retention, and Deputy Chairman of Etihad Credit Insurance (ECI) Board of Directors, spoke at the “Dubai Week in Africa-Kenya” conference in February this year, he stated that commercial exchange between the UAE and Kenya grew to $2.7 billion (Dhs9.9 billion) in 2019 from $1.5 billion (Dhs5.5 billion) in 2015, and that Emirati investments in Kenya are worth $2.38 billion (Dhs8.7 billion), while Kenyan investments in the UAE are worth $63 million (Dhs231.4 million).
Falcioni added, "The UAE and Kenya have maintained great trade and economic connections over the previous four decades." The signing of this agreement with KNCCI could not have occurred at a better moment for both UAE and Kenyan enterprises. This MoU would allow Kenya to benefit from the UAE's critical role in ensuring the sustainability and trade financing of supply chains, as well as marine and aerial shipping activities in global markets.”
“The UAE has emerged as a leading global trade destination as a result of its advanced position in many global indexes related to logistical supply, securing trade payments, facilitating business practise, advanced port and logistical facilities, and adoption of the best global practises in related areas. This tight cooperation will aid in the continuation of critical government discussions, increase commerce between the two nations, and provide better and more secure trade opportunities,” Falcioni noted.
Meanwhile, Ngatia stated, "We are happy to collaborate with ECI, which we feel will herald a new chapter in Kenya-UAE commercial cooperation." Working closely with the UAE Federal Export Credit Company and getting access to in-depth information and risk assessment reports would help Kenyan firms realise their full potential.”
The UAE Federal Export Credit Company is tasked with accelerating and maintaining national economic diversification, as well as supporting the export and re-export of UAE goods, works, services, and foreign investments of UAE businesses, as well as supporting domestic exporters through a variety of export credit, financing, and investment insurance products. In response to the country's economic requirements, it began offering credit insurance and project finance guarantees to domestic non-oil commerce in 2020.