This article discusses the recent endorsement of an Economic Partnership Agreement (EPA) between the European Union (EU) and Kenya. It highlights the continents efforts to continue driving sustainable trade and development through the agreement’s aims to boost bilateral trade, attract investments, and foster sustainable economic growth. Key elements of this Economic Partnership Agreement include commitments to climate protection, environmental conservation, labour rights, and gender equality. Kenya’s significance as an EU trading partner underscores the importance of this agreement, promising increased opportunities for Kenyan businesses. The EPA reflects the EU’s sustainability goals and Kenya’s leadership in this area. It also outlines and emphasizes the strategic value of Kenya in the EU’s engagement with Africa. This EPA awaits approval by the European Parliament before its implementation, however the ground work has been completed with the effects only promising to benefit locals. Additionally, the article discusses InterGest South Africa’s anticipation of the agreement’s positive impact on local development and job opportunities.
Economic Partnership Agreement (EPA)
In December 2023, the European Union and Kenya formally endorsed an Economic Partnership Agreement (EPA), aimed at bolstering bilateral trade in goods, fostering investment inflows, and boosting sustainable economic growth.
This EPA serves as a framework to stimulate job creation in both regions, and fosters targeted collaboration to support Kenya’s economic development. This agreement stands out as the most ambitious trade deal authorised by the EU and a developing country with specific growth points being outlined as below:
- Climate Protection
- Environmental Conservation
- Labour Rights
- Gender Equality
Market Access and Economic Opportunities
Kenya’s status as the EU’s primary export destination and second-largest trading partner, with bilateral trade reaching 3.3 billion EUR in 2022, marks a significant economic relationship, presenting a 27% surge compared to 2018. The EPA promises to unlock further opportunities for Kenyan enterprises and exporters, granting full access to the EU market for certified and marketing trading Kenyan products. Additionally, it aims to catalyse EU investment in Kenya by providing more precise legal requirements and economic sustainability.
Kenya’s Environmental Commitments and Sustainability
Known for its leadership in sustainability efforts across Africa, Kenya stands as a committed partner in the fight against climate change. Notably, it co-leads the Coalition of Trade Ministers on Climate initiative alongside the EU and other partners. The EU-Kenya EPA builds upon this foundation, marking the first agreement with a developing nation to incorporate the EU’s novel trade and sustainable development strategy.
Development Cooperation and Capacity Building
Acknowledging Kenya’s developmental requirements, the agreement offers an extended timeline for gradually opening its market, making provisions for protective measures for agriculture, food security, and burgeoning industries. An exclusive chapter in this agreement is dedicated to economic and development cooperation, with aims to boost the competitiveness of Kenya’s economy. When coupled with EU development aid, this endeavour seeks to fortify Kenya’s capacity in the EPA implementation, while still aiding local farmers in meeting EU standards and taking full advantage of the opportunities presented.
Strengthening EU-Africa Trade Ties
In line with the European Commission’s commitment to grow global engagement with African partners, the EPA sets out to fortify sustainable trade ties between the EU and Africa and within the African continent itself, thereby advancing key objectives in the EU-Africa relationship and the global shift towards more renewable and sustainable practices.
Remarks from the European Commission
Upon signing, President Ursula von der Leyen of the European Commission remarked that Kenya is a pivotal partner to ensure the success of the European Union in Africa. She continued to record her excitement in the implantation of this agreement in order to “support investments and create good jobs in Kenya”. Her diplomacy was not short-lived either as she continued to highlight the benefit that both Africans and Europeans will reap from the implementation of this new agreement. Once she had addressed the public and media present at the signing, she concluded the uniqueness of this agreement in the market and just how big a step this is for the EU trade and partners to commit to honouring such promises with an African country.
InterGest South Africa’s Perspective
Since founding our own company in Kenya 6 years ago, InterGest South Africa is eager to see the fruits of this come into fruition in the likes of local development, foreign investment and the creating of additional job opportunities. We are certain that as the effects of this agreement come into practice, investments from the EU will begin to pour in to take advantage of this growing market.
Contact Information
For further insights into how Kenya’s markets will be impacted by this agreement or to gain a better understanding of the growth potential in Eastern Africa, feel free to reach out to us at contact@intergest.co.za.
Source: EU and Kenya sign ambitious Economic Partnership Agreement with strong sustainability provisions – https://ec.europa.eu/commission/presscorner/detail/en/ip_23_6632
