The government of Kenya and South Korea have made a deal on free trade agreement between the two. The deal was made during bilateral talks between South Korean Trade minister Dukgeun Ahn and his Kenyan counterpart Moses Kuria.
The two further agreed to conclude a Trade and Investment Promotion Framework scheduled to be signed next year in January. Trade and Investment Promotion Framework targets to provide solutions to problems that smooth flow of trade especially on Kenyan products such as coffee, tea, avocados and avocado products, cut flowers, nuts and fresh vegetables.
Trade and Investment Promotion Framework
The framework will also address trade imbalance that hugely favours South Korea whose exports’ worth to Kenya stands at $500 million (Ksh60 billion) compared to Kenya’s exports to Korea at $25 million (Ksh3 billion).
The Kenya Exports Promotion and Branding Agency (KEPROBA) and the Korean Trade Agency (KOTRA) formed a framework of cooperation to will see through the launch of Kenya International Trade Agency (KITA) office in Seoul and development of Kenyan warehouses for selling products in Seoul and Busan, Korea.
During the meeting, Kenya and South Korea agreed on joint investments in the Kenyan Special Economic Zones at the Konza Technopolis, Dongo Kundu, Naivasha, Sagana and the Nairobi International Financial Centre.
Earlier Kenya’s President announced that the country will partner with South Korea to develop manufacturing plants in the Konza Technopolis, an export promotion zone dedicated expected to also drive Kenya’s trade and investments. It will feature pharmaceutical manufacturing, vaccine production, and value addition in agriculture.