Business Daily (Nairobi)
Geoffrey Irungu
14 December 2011
Kenya on Tuesday signed an investment protection agreement with Slovakia, which is looking for opportunities in the infrastructure and utility management sector.
Slovakia, an eastern Europe country with an economy almost three times that of Kenya, said it would provide concessional credit for reconstruction of the 51-kilometre Kehancha-Isebania Road in western Kenya.
Finance minister Uhuru Kenyatta and the Slovak Foreign Affairs minister Mikulas Dzurinda signed the agreements on behalf of the two governments.
“It is our hope that the agreement will not only stimulate the flow of private capital and economic development of our two countries, but also lead to maximising the effective utilisation of economic resources and improving living standards of our peoples,” said Mr Kenyatta.
Mr Dzurinda said the Slovakia plans to invest in infrastructure, water, waste management and agriculture.
Slovakia became independent in 993 when it separated from the Czech Republic and has minimal investments in Kenya apart from involvement in humanitarian assistance by non-governmental organisations.
The concessional export credit will see Slovakia finance the road construction on condition that the expertise, equipment and materials used will be sourced from the country. The financing model is similar to those in place on some projects financed by India and China.
Slovakia trades mainly with other European countries with its exports at over $55 billion and its imports about $54 billion from the 2009 data – which shows a $1 billion positive trade balance in a country with $89 billion in GDP.
Trading partners
It exports 20 per cent of this to Germany and 13 per cent to Czech Republic.
The two are its largest trading partners.
Its main exports are machinery and energy equipment, vehicles, base metals, mineral products, and iron steel. Imports include machinery, vehicles, electrical equipment, mineral fuels, oils, and base metals.
Slovakia’s natural resources include antimony, mercury, iron, copper, lead, zinc, magnesite, limestone and lignite.In agriculture, it produces grains, potatoes, poultry, cattle, hogs, sugar, beets, hops, and fruits.
Its industrial production includes iron and steel, chemicals, electro-chemical, automobiles, light industry and food processing.
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