Eyes On What US Has For Kenya As Summit Approaches

1. How is the upcoming Summit seeking to increase U.S. investments in Kenya? 

The AmCham Business Summit will advance new opportunities for economic growth in the region and provide a platform for engagements that are expected to enable more business connections to take place leading to market expansion, job creation, and economic prosperity.

Delegates will be able to explore market opportunities across multiple sectors in the region, acquire new business leads and create new linkages as well as engage with government stakeholders on key business drivers including ways to eliminate barriers that inhibit trade and investment.

2. With more U.S. institutions setting bases in Kenya, how will this promote sustainable and inclusive economic growth? 

U.S. companies promote sustainable and inclusive economic growth by creating opportunities for increased trade in goods and services and foreign direct investment which creates quality jobs and promotes sector growth by providing access to high-quality, and competitive intermediate inputs and technologies and transfer of technology and knowledge, enhancing the local skill base and boosting the competitiveness of locally produced goods and services.

3. The government has recently made announcements that will facilitate agricultural trade between U.S. and Kenya. what measures do the stakeholders convening at the Summit seek to put in place to facilitate this agenda? 

Agriculture is an important contributor to the East African economy. The sector contributes 30 – 40% of GDP and is critical to the livelihoods of many in the region, with an estimated 80% of the population in rural areas depending on agriculture for their livelihood (FAO).

Kenya’s 2022 food and agriculture exports to the United States reached an all-time high of $180 million, with more growth expected in 2023. Coffee is up 50% and Macadamia nuts are up 25%. These are the largest contributors to Kenya’s export growth, followed by tea, essential oils, and cut flowers.

To enhance the trade of agricultural produce, the Summit aims to strengthen partnerships with access to American technologies as these can offer a capacity-building pipeline for local value chain players; and promote partnerships between smallholders and large agribusiness firms to enhance sector growth through vertical value chain integration. Discussions with government stakeholders will also explore enhancing the country’s agro-processing capacity through measures such as offering tax and other incentives to investors willing to set up agro-industries in rural areas.

4. With the Ministry of ICT supporting the adoption of a digital economy, what are the trade and investment opportunities that exist between U.S. and Kenya public and private institutions?  

East Africa’s digital economy has undergone significant growth and transformation in the last decade.   Significant opportunities exist in the digital economy across digital services, business process outsourcing, software development, e-commerce, cybersecurity, and fintech.

The success of this is however dependent on establishing investment-enabling and encouraging policies in the digital economy. Current regulations, especially concerning dataflows, privacy, taxation, and the regulation of emerging technologies, remain a key challenge to mobilizing financing for sustainable innovations and spreading digital adoption.

5. While tech is seen as the next big thing, we have seen big U.S. companies such as Microsoft and Twitter massively laying off employees in Africa. Analysts say the trend is expected to sweep through the tech world. What does this say about the sector? Is it possible to push through the resilient future with less workforce and more machinery? What does this say about the unemployability of people?  

East African governments identify the ICT sector as an important lever for economic growth and development with a significant capacity for job creation.  To this end, several governments have passed policies and regulations that are aimed at creating an enabling environment for the sector to flourish.

The layoffs have occurred globally, not just in Africa, and indeed, fears exist over emerging technologies replacing large swaths of workers. However, the implications of such changes are not yet clear as on the other hand, technology is also creating massive opportunities for example, millions of digitally enabled jobs have been created globally in areas such as content creation and the gig economy.

So far what is clear is the need to innovate and adapt to shifting market demands. Countries must focus their labor to specializing in areas with comparative advantage or higher demand and maintain competitiveness.

This will also be a focus of discussion at the AmCham Business Summit Workforce Development Forum with the goal of charting pathways for the region to maintain robust and dynamic economies that continually deliver high quality jobs and opportunities for even the most vulnerable of its people, including women and the youth.

6. How does the Summit seek to address the impact of climate change considering that Kenya is starting to experience its effect such as drastic weather patterns which could affect our economic recovery post-COVID-19? 

It is true, the latest report from the Intergovernmental Panel on Climate Change (IPCC) set out, in stark terms, the imperative to build a sustainable future. Half the world’s population is already living in regions highly vulnerable to climate change.

Meanwhile, despite almost a quarter of GDP is dependent on nature, biodiversity in African countries dropped 65% on average between 1970 and 2016.

The window for action, however, remains open.  Opportunities for all parts of the economy to work together to stave off adverse climate and economic outcomes are in abundance.

Africa’s climate-smart investment potential for example, just up to 2030, is estimated to be around $783bn. Studies have also shown investments in nature in parts of the continent, generating economic benefits over 5,000 times the initial capital.

Around the world, companies and investors have recognized that green business is good business. The economics of short-term profit maximization is gradually being replaced by a more refined sense of long-term business stewardship.

The Summit will bring together experts from business, finance, and government with a focus on ways all parts of the economy can work together to turn environmental commitments into practical action.

The sessions will explore how policy and regulatory environments can be shaped to accelerate investment in climate and nature-positive projects by businesses and financial institutions giving East African countries an opportunity to identify how environmental commitments by global businesses can be translated into action on the ground and tailored to the local sustainable development agenda.

7. SMEs are the backbone of any economy around the world. How does the Summit intend to look at its role in boosting Kenya’s economy? 

SMEs can catalyze international trade and investment between the region and the United States. With the major role they play in world economies, they have more room to participate in international trade if the various challenges they face, including smaller economies of scale than larger enterprises and their limited capacity to navigate around complex foreign regulations, can be addressed.

The Summit will focus on exploring key success factors for SMEs to leverage international trade and investment and what support should be provided to accelerate their efforts.

SMEs participating in the Summit also stand to benefit from engagement with larger U.S. and regional companies for potential partnership opportunities.

8. Finally, what should people expect from the Summit? 

The 3rd AmCham Business Summit seeks to drive relevant dialogue on re-energizing the economies of the region, serving as a catalyst for new ideas, discussions, and policy changes that will shape the future.

The Summit will additionally act as a platform to drive strategic partnerships between governments and key stakeholders in the private sector fuelled by fresh ideas and new pathways to secure an economically resilient and prosperous future.