Africa Focus: Sino-Kenya industrial cooperation on right track: experts

Kenya's strategic engagement with China to propel industrial revolution heralds immense social and economic benefits to the East Africa nation, experts told Xinhua.

The Kenyan Vision 2030 blue print identifies the industrial sector as key to promote job creation and export earnings in the country. Policymakers and experts noted that Kenya has developed a sound policy and regulatory framework to encourage growth of a vibrant manufacturing sector.

Gerishon Ikiara, a Kenyan economist, said the country's industrial progress is on track thanks to political stewardship and foreign direct investments from China.

"Kenya is among the most industrialized country in the region but this feat would not have been achieved were it not for robust engagement with China. The Asian giant has invested heavily in manufacturing, transport and energy sectors," Ikiara told Xinhua during an interview in Nairobi.

Government statistics indicated the industrial sector accounts for 12 to 14 percent of Kenya's Gross Domestic Product (GDP). Post independent Kenyan regimes have prioritized diversification of the economy to promote service and industrial sectors.

Ikiara noted that despite initial hiccups, Kenya's industrial sector is on the right trajectory and could unleash prosperity for future generations.

"It is true that our industrial growth stagnated briefly but has picked up lately. We are leading exporters of manufactured goods in the east and central Africa region," said the economist.

He noted that Kenya is a leader in agroprocessing, metal works and tannery, and Sino-Kenya cooperation in motor vehicle assembly and light industries has unleashed new jobs and prosperity to ordinary citizens.

Ikiara, who also served as permanent secretary in the ministry of transport and communication, noted that China has provided technical expertise and financial resources to develop home grown industries in Kenya.

"China has injected vitality in our industrial sector. It has helped us diversify our economy. Besides assisting us set up car assembly plants, China has trained local artisans to produce low- cost goods," Ikiara said.

He noted that Sino-Kenya cooperation in the industrial sector dates back to the 1970s and has blossomed lately as governments intensified diversification of the economy.

African countries have reached out to China to acquire capital and technical skills required to establish a thriving industrial sector. Ikiara noted that Sino-Africa industrial cooperation has lifted the continent from economic stagnation.

"As for now, we are able to manufacture low-cost goods thanks to equipment sourced from China. Unlike the West, China has focused on homegrown solutions to our poverty and under- development," Ikiara told Xinhua.

"China has adopted a strategic approach by helping us set up and own the plants," said the economics lecturer at the University of Nairobi.

China is a leading investor in the nascent Kenya's extractive industry. Ikiara noted that China has injected huge capital to help Kenya develop the oil and gas sectors.

"Local consortiums have partnered with Chinese investors to extract coal and set up oil refinery plants. Chinese state owned enterprises have demonstrated prowess in mining sectors across the continent," said Ikiara, adding that Chinese investors have been instrumental in the harnessing of Kenya's renewable energy potential.

"China is the leading manufacturer and exporter of solar panels. It has injected capital to help us develop geothermal power in the vast Rift Valley," he said.

Kenya has developed a comprehensive national industrial policy that proposes a raft of incentives to attract investments in this critical sector. Ikiara noted Kenya has reformed the policy and regulatory environment to enhance industrial cooperation with related countries.

"As we fast-track the establishment of special economic zones, there is need to court China since it is a global leader in this field. We can learn vital lessons from China's thriving special economic zones," Ikiara said.

Kenya must invest in a critical pool of trained personnel and reorganize the legal system to encourage Chinese investments in the industrial sector. Ikiara regretted that archaic laws, red tape and inadequate skilled personnel undermined foreign direct investments in Kenya's industrial sector.

"Kenya, like many African countries, has grappled with public sector inefficiencies and malpractices that discourage investments. Local authorities happen to be the epicenter of unethical practices," he said.

He emphasized that Sino-Kenya industrial cooperation has brighter prospects if the government accelerated public sector reforms and enhanced security to restore investor confidence. Endi