Johannesburg - Investment South Africa (ISA) and its counterpart, the Kenya Investment Authority (KenInvest), have signed a Memorandum of Understanding (MoU) on investment co-operation, the Department of Trade and Industry (dti) said on Thursday.
The MoU was inked on the sidelines of President Jacob Zuma’s state visit to Kenya this week.
Zuma had called on the business sector in South Africa and Kenya to increase investments in both countries in a reciprocal manner, saying that South African businesses should consider Kenya as an investment destination and encouraged Kenyan businesses to do likewise in South Africa
Speaking at the signing ceremony, the acting head of Invest SA, Yunus Hoosen, said the MOU between Invest SA and KenInvest was intended to promote and facilitate investment between the two countries.
Hoosen said the MoU was strategic and important, in line with South Africa’s strategy of promoting investment and trade within the continent for mutual development.
South Africa has more than 60 companies operating in Kenya, from the financial services industry to franchising. South Africa’s exports to Kenya amounted to R8.3 billion and imports from there were worth R366 million in 2015.
The dti said South Africa sees further opportunities in Kenya in agro-processing, manufacturing, ICT, infrastructure and financial services.The signing of the MoU will bring the organisations as focal pints on investment between the two countries.
At the bilateral level, trade between the two countries stands at R7.9 billion, while more than 60 South African companies operate in Kenya.
Moses Ikera, managing director of KenInvest, said that the two organisations cooperated well in global forums and it made sense that South Africa - as the regional hub in Southern Africa - and Kenya the regional hub in East Africa cooperate on expanding trade and investment relations.
Ikera also said that the two organisations would meet regularly and support capacity building.
Zuma and his counterpart, President Uhuru Kenyatta, lauded the signing of the investment MoU and urged private sector from both countries to do business among themselves in order to boost economic development within the two countries.
AFRICAN NEWS AGENCY