Business becomes the primary focus of Kenyatta’s visit to Ethiopia

Kenyan President Uhuru Kenyatta has promised to revive stagnant economic relations with Ethiopia during a visit aimed at strengthening cooperation between the two East African economies. “I do hope during my tenure we will be able to achieve much higher level of economic engagement between our two countries,” he said at the start of a four day visit to Ethiopia on Tuesday.

The two countries have a defense pact, but economically they are on different economic paths.  Bureaucracy and stringent regulations in Ethiopia, have made it difficult for foreign companies to launch businesses, especially as repatriation of foreign exchange is controlled by government leading to stifled trade between Nairobi and Addis Ababa.

However, it is hoped that Kenyatta’s state visit will give a Special Status Agreement (SSA), signed in November 2012 to improve economic ties and growth opportunities, a needed boost towards complete implementation.  The Kenyan president added, “We are here to see how we can fast track the implementation of Special Status Agreement between our two countries, which will open the door for much and increased economic activities.”

As negotiations continue to improve on the SSA package continue, Kenya’s foreign minister predicted a more promising future in terms of economic relations between the two countries.  Kenyatta also revealed that the two countries have signed an agreement to purchase power from Ethiopia and drive economic development for both countries.

Ethiopia has made huge investments in its energy sector in its quest to become a regional energy hub and major electricity supplier on the continent. According to Ethiopia’s Prime Minister, Hailemariam Deslagne, the country is ready to work with Kenya to integrate the two nations in telecommunications, power, roads and railways infrastructures.

Source: The Africa Report