Kisumu businesses urged to target international markets through value addition

Business leaders and government officials have called for increased investment, value addition and stronger trade links to drive economic growth in Nyanza region.

The call was made at the Nyanza International Business Forum in Kisumu, which brought together representatives from the Kenya National Chamber of Commerce and Industry (KNCCI), national and county governments, universities and the private sector.

The forum focused on ways of expanding trade and investment within the region and opening up new markets for locally produced goods.

KNCCI President Eric Rutto said the meeting provided an opportunity for businesses from across Kenya to exchange ideas and establish new market links.

Dr Rutto said businesses should invest in value addition and use new trade opportunities to expand into international markets.

He said businesses in Kisumu and the wider Lake Victoria region needed to increase production and develop products for export.

The president said the chamber was working to connect local businesses with markets in other parts of Kenya and abroad.

The chamber has 47 chapters across Kenya and is linked to chambers of commerce across Africa and other parts of the world, he said.

“We have brought the leaders of the chamber from across the country so that we can exchange business skills, exchange opportunities and also create markets for products that are produced here in Kisumu outside Kisumu County,” he said.

Dr Rutto said the chamber’s national and international networks could help businesses in Kisumu reach new markets.

He encouraged entrepreneurs to take advantage of trade opportunities in Europe, China and the United Arab Emirates, particularly for products such as tea, coffee, avocados and tropical fruits.

But he said businesses needed to invest in processing rather than relying on the export of raw commodities.

“We are urging the people of Kisumu to be able to do value addition so that we can create more markets for them internationally,” he sad.

Dr Rutto said opportunities created by trade agreements with the European Union and other markets could help businesses in the region expand.

He also urged farmers and fishermen around Lake Victoria to adopt modern technology, including aquaculture, to increase fish production.

Value addition was a recurring theme at the forum, with officials saying businesses needed to move beyond exporting raw agricultural products.

Trade Principal Secretary Regina Ombame said the forum came at a time when the global trading environment was changing rapidly.

She said cooperation between national and county governments and the private sector was important if Kenya was to expand its participation in international markets.

Ombame said infrastructure would be central to that effort. She cited the revival of the Port of Kisumu, improvements at Kisumu International Airport, road development and plans to expand railway connectivity as projects that could strengthen the city’s role as a regional trading centre.

The PS also urged farmers and businesses to process agricultural products before exporting them.

Groundnuts, sesame and sunflower, she said, could generate higher returns if processed into finished or semi-finished products.

But she warned that producing goods for international markets was not enough.

Exporters also needed to understand the standards and regulations of their target markets to avoid having shipments rejected. “We must make sure that everything is to standard,” she said.

The forum also examined economic opportunities beyond traditional activities associated with Lake Victoria.

Ombame said the lake had potential in areas including aquaculture and water sports, as well as in the wider creative and sporting sectors.

She also highlighted opportunities in science, technology and healthcare, saying universities and research institutions in the region could play a greater role in innovation.

Technology could also help farmers and fishers improve productivity, particularly through aquaculture and modern production methods.

Ombame said farmers needed better information about international market requirements before producing goods for export.

She said products such as avocados and sesame seeds could be rejected if they failed to meet the standards required in particular markets.

“The information that we give our people is full information so that they fully understand what is the market asking for,” she said.

Ombame said the government was also working to improve infrastructure in the region, including the Port of Kisumu, Kisumu International Airport and road and railway connections.

She said improved infrastructure would help open markets in Uganda, South Sudan, the Democratic Republic of Congo and other parts of the region.

The government is pursuing an export-led economic strategy as part of its wider economic transformation programme, she added.

Kisumu Deputy Governor Dr Matthew Owili said the county was seeking to create a business environment that would attract investment and support local enterprises.

Dr Owili said the county government was working on policies aimed at attracting more investment and supporting local businesses.

He described Kisumu as a historic trading centre and urged consumers and institutions to buy locally produced goods where possible.

Dr Owili said the county was advocating a “Buy Kisumu, Build Kisumu” approach to encourage consumers and institutions to source goods locally where possible.

Kisumu is also expected to host one of five planned special economic zones, which Dr Owili said would support manufacturing and create new opportunities for businesses.

He said better rail and road connections would be important in allowing goods to move into Kisumu while enabling locally manufactured products to reach markets outside the region.

Despite its position as Kenya’s third-largest city, Dr Owili said Kisumu’s contribution to the country’s gross domestic product remained relatively low.

He said more investment was needed to unlock the city’s potential as a regional trading and manufacturing centre.

The forum comes as the government seeks to strengthen trade links and encourage businesses to compete in international markets.

Participants also discussed opportunities in agriculture, fishing, sports, the creative economy, science and technology.

The officials said stronger links between government, businesses and research institutions would be necessary if the region was to increase production and create more jobs.