Home Business Kenyan, Brazilian businesses sign trade pacts

Kenyan, Brazilian businesses sign trade pacts

CECIEx President Damaris Eugenia Avila da Costa signs an MoU with Kenya National Chamber of Commerce & Industry Director Stephen Mbugua.

The Kenya National Chamber of Commerce and Industry (KNCCI) has signed a Memorandum of Understanding with the São Paulo Chamber of Commerce (SPCC) in a move aimed at boosting trade between Kenya and the Latin American country.

During the launch of an ongoing business-to-business forum at the Villa Rosa Kempinski Hotel in Nairobi on Monday 26th February 2024, KNCCI also signed an MoU with the Brazilian Council of Importing and Exporting Commercial Companies (CECIEx) in a bid to boost exports from Kenya to Brazil.

The agreements are expected to facilitate exchange of market insights, promote trade and pave way for a delegation of Kenyan traders to visit Brazil as part of Kenya’s efforts to bridge the trade imbalance between the two countries.

According to Nelson Omwalo, Technical Trade Advisor at the Embassy of Brazil in Nairobi, “an average of 60 to 70 million US dollars worth of goods from Brazil are imported into Kenya annually. On the other hand, Kenya’s annual exports to Brazil amount to 3 to 7 million US dollars.”

Kenya’s main exports to Brazil include agricultural produce such as tea, coffee, flowers and garments while Brazil’s exports to Kenya include agricultural equipment, machinery, sugar and chocolates.

“There are great opportunities for trade between Brazil and Kenya, particularly in the agribusiness sector since the environmental conditions in our countries are quite similar,” noted Mauricio Manfre, Executive Secretary for the Sao Paulo Chamber of Commerce who is part of the Brazilian trade delegation on a visit to Kenya.

The traders however cited challenges with shipping logistics, lack of direct flights and proliferation of counterfeit goods as some of the major impediments to trade between the two countries.

It takes between 40 – 60 days for goods to be shipped by sea between the two countries.

Additionally, travelers between Nairobi and Sao Paulo spend up to 30 hours on transit.

“There is a general lack of awareness about Brazilian products here in Kenya,” said CECIEx
President Damaris Eugenia Avila da Costa. “Through this initiative we hope to establish contacts with traders and agents as well as enabling more people in Kenya and across Africa to learn about Brazilian products.”

12 Brazilian companies are taking part in the 3 day forum, which concludes on Wednesday 28th February 2024.

12 traders from Brazil are taking part in the Brazil trade mission to East Africa which will run from 26th to 28th February 2024 at the Villa Rosa Kempinski Hotel in Nairobi.

They include traders from diverse sectors ranging from building and construction, interiors and decoration, electrical cables, food and beverages, FMCG, agricultural and farm products, automotive and spare parts, clothing and footwear, and health and beauty products.