South Africa and Kenya are deepening trade, investment and industrial cooperation, as the two countries position themselves to drive Africa’s economic transformation.
Speaking at the South Africa-Kenya Business Forum in Midrand, Johannesburg, on Thursday, President Cyril Ramaphosa and Kenyan President William Ruto called for stronger collaboration between the continent’s leading economies, saying that Africa’s future growth depends on integrated value chains, infrastructure development and increased intra-African trade.
President Ruto was in South Africa on a State Visit.
President Ramaphosa said Kenya remains one of South Africa’s largest trading partners on the continent outside the Southern African Development Community (SADC), with bilateral trade continuing to show solid growth.
“Since 2022, total trade between South Africa and Kenya has grown by an average of 3.5% a year,” the President said.
He noted that South Africa continues to import products, services, technology and skills from Kenya, while investment flows between the two countries have strengthened.
According to President Ramaphosa, Kenyan companies have invested in 11 projects in South Africa worth US $283 million, while South African companies have invested in 96 projects in Kenya valued at more than $2 billion.
Beyond private-sector investment, South Africa’s development finance institutions have also played a significant role in supporting Kenya’s development.
“The Development Bank of Southern Africa was one of the funders of a 350km pipeline replacing the Mombasa-to-Nairobi petroleum and crude oil products line. Our development finance institutions are keen to do more to fund catalytic infrastructure in Kenya,” Ramaphosa said.
The President said the Business Forum had highlighted the significant untapped potential in both South Africa and Kenya’s economies, as they pursue structural reform, industrialisation and diversification.
“By unlocking this potential, we can advance inclusive growth, meaningful employment and shared prosperity,” he said.
President Ramaphosa welcomed discussions on financing infrastructure and strengthening regional value chains, saying investment should be accompanied by technology transfer and skills development to create sustainable jobs and build local capacity.
He also highlighted proposals aimed at strengthening food security, including the use of technology for climate-smart agriculture and improved livestock management to combat Foot and Mouth Disease.
The President said both governments are committed to creating enabling environments for growth by removing barriers to trade and investment.
“We are facilitating trade through enabling physical and digital infrastructure,” he said.
Among the initiatives under consideration is funding for the Kenya Roads Board Securitisation Programme, which aims to support transport infrastructure development.
President Ramaphosa added that South Africa and Kenya are also updating information and communications technology agreements to keep pace with advances in industrial innovation, technology transfer, digital trade and artificial intelligence.
“These are a few examples of how we are closing infrastructure gaps, lowering costs and keeping our products and services competitive against imports from outside the continent,” he said.
Driving transformation
Echoing President Ramaphosa’s sentiments, President Ruto said the two countries have the combined economic strength needed to drive Africa’s transformation.
“Kenya and South Africa stand among our continent’s foremost economic anchors.”
He described South Africa as one of Africa’s leading industrial and financial powerhouses, while Kenya serves as a gateway to East and Central Africa through its dynamic private sector, expanding digital innovation ecosystem and strategic infrastructure.
President Ruto noted that the partnership between the two countries continues to grow across trade, investment, tourism, aviation, financial services, manufacturing, ICT and logistics.
“Today, more than 60 South African companies operate in Kenya in banking, insurance, retail, manufacturing, telecommunications, infrastructure and real estate,” he said.
The Kenyan President said the African Continental Free Trade Area (AfCFTA) presents one of the greatest opportunities for economic growth on the continent by creating a single competitive market capable of attracting investment, creating jobs and accelerating industrialisation.
“We must move beyond conventional trade and deliberately build integrated regional value chains in manufacturing, agriculture, mining, logistics, pharmaceuticals, energy, digital services and green industrialisation,” he said.
President Ruto commended the cooperation that takes place through the Joint Commission for Cooperation and the Joint Trade Committee, saying their outcomes must now be fully implemented to deliver tangible benefits for businesses and investors.
He highlighted opportunities for collaboration in automotive manufacturing, pharmaceuticals, mining, chemicals and steel — sectors where South Africa’s industrial strengths complement Kenya’s emergence as a regional production and logistics hub.
On agriculture, President Ruto called for greater investment in agro-processing, irrigation, cold-chain logistics and supply chains that connect African producers to African markets.
“Africa cannot keep spending billions importing food while our own farmers and agro-industries stand ready to feed the continent,” he said.
South Africa regards Kenya as a key strategic partner in East Africa, while Kenya remains South Africa’s largest trading partner on the continent outside SADC.
The two countries have concluded numerous agreements covering agriculture, education, tourism, transport, defence, water and sanitation, and trade.
The South Africa-Kenya Business Forum brought together government and business leaders to strengthen economic cooperation, facilitate partnerships and identify new opportunities for trade and investment across the continent. – SAnews.gov.za
