The Director of CEOE International accompanies the Secretary of State for Trade on her trip to Kenya and South Africa

The Director General of CEOE International, Narciso Casado, will accompany the Secretary of State for Commerce, Xiana Méndez, on her trip to Kenya and South Africa from 4-9 April. During their visit, they will hold meetings with representatives of Spanish companies in both countries, to learn about the progress of their investment projects and the growth prospects of their investments. The Spanish delegation, which also includes the Director General of the Spanish Chamber of Commerce, Inmaculada Riera, will also use the trip to meet authorities, the most senior representatives of both embassies and experts in key sectors in the two countries. 

In turn, Casado will hold meetings with representatives of the business organisations of both countries, specifically in the case of Kenya with KEPSA, to discuss potential bilateral cooperation and look for projects of shared interest for companies in both countries. For the CEOE, strengthening collaboration with Africa, and specifically with Kenya, is a priority, since it contributes to promoting public-private partnership between the two countries.

Bilateral relationship with Kenya

Bilateral trade relations between Spain and Kenya reveal a historic trade surplus for Spain. Spain currently has a positive balance of 47.7 million euros and coverage of 184%. This trend slowed in 2020, due to the large increase in Spanish imports from Kenya. Spain is Kenya’s seventh-largest supplier and sixth-largest customer in the European Union. For its part, Kenya ranks 94th among our customers and 113th among our suppliers.

On the other hand, Spanish investment in Kenya increased strongly until 2019. In that year the stock stood at 43.7 million euros. The sector where most of the investment is concentrated (85%) is the supply of electricity, gas, steam and air. In terms of trade opportunities, the government’s new “Big Four” economic agenda is opening up business opportunities in the following priority development sectors: Affordable housing, universal health coverage, food security and improving the manufacturing sector. Specifically, Kenyan industry is slated to grow from 9.2% to 20% of GDP, food security to 100%, universal health coverage for all citizens, and 500,000 new affordable homes will be built. 

Bilateral relations with South Africa

Bilateral trade relations between Spain and South Africa show a historic trade surplus in favour of Spain. Currently, Spain has a positive balance of 157 million euros and a coverage of 113%. This trend only shifted in 2018, due to an increase in imports as a result of Spain’s economic growth and the depreciation of the rand. The trade surplus has shrunk due to the large increase in imports from South Africa following the pandemic. Despite this reduction, Spain is South Africa’s sixth-largest customer and supplier in the European Union, representing 6% of exports and 4% of imports from Europe. Our country is also the world’s 19th-largest exporter to South Africa.

In 2019, Spanish investment in the African country reached 15 million euros. 2.95 million euros worth of investment was reported in the country in 2020, making South Africa the first-ranked country in sub-Saharan Africa. As of 31 December 2019, Spain’s cumulative investment stock in South Africa was €857 million. The manufacturing of non-metallic mineral products stands out at 50% and metallurgy at 21%. In terms of business opportunities in the African country, key sectors worth highlighting include renewable energies, water, infrastructures, automotive and tourism.