Kenya and South Africa have strengthened trade ties under the African Continental Free Trade Agreement (AfCFTA) framework.
Both nations have pledged to facilitate the smooth entry of each other's products into their markets and address non-tariff barriers to boost intra-African trade.
Trade between Kenya and South Africa spans various sectors. Kenya exports tea, coffee, fruits, and vegetables and receives iron and steel, mineral fuels, machinery, wine, cars, fridges and TVs from South Africa.
South Africa initiated the milestone by dispatching a consignment comprising refrigerators, paperboard, and steel products bound for the Kenyan market.
The launch took place on the sidelines of the 13th AfCFTA Council of Ministers Meeting in Durban, where President Cyril Ramaphosa officiated the ceremony.
Investment, Trade, and Industry Cabinet Secretary Rebecca Miano along with ministers and Heads of Delegations attending the meeting bore witness to the step towards greater economic integration.
Kenya was an early adopter of the AfCFTA initiative, having dispatched its first consignment of tea and subsequently diversifying its exports to other products in 2022.
The AfCFTA, boasting a population of 1.3 billion people and a collective GDP exceeding USD 3.5 trillion, represents a pivotal market that Kenya and South Africa are keen to explore and exploit for mutual benefit.
Despite the relatively low total trade figures between Kenya and South Africa, amounting to R9.7 billion (Sh83 billion) in 2022, with South Africa holding a trade surplus, the implementation of the AfCFTA opens avenues for substantial growth.
The AfCFTA provides a framework for both countries to enhance awareness among exporters, leveraging their respective national AfCFTA Implementation Strategies to maximise on the advantages offered by the agreement.
In the weeks to come, Kenya is poised to reciprocate South Africa's initiative by dispatching its consignment of Kenyan products to the South African market under the AfCFTA framework.
This reciprocal exchange marks a crucial step in fostering economic collaboration and reaping the benefits of the vast opportunities presented by the AfCFTA.
As South Africa and Kenya lead the way, their proactive engagement under the AfCFTA sets a precedent for other African nations on the importance of regional cooperation and trade integration in driving economic growth across the continent.