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Why exporters want state to help unlock EU market

Why exporters want state to help unlock EU market
A cargo ship in the sea. PHOTO/Print
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Kenyan manufacturers and exporters eyeing the European Union-Kenya Economic Partnership Agreement (EPA) market are seeking government and EU support to navigate the complexities of the lucrative market.

Among the key concerns for exporters is the logistical challenges associated with shipping goods to Europe. Disruptions in the Middle East, such as the closure of the Suez Canal, have led to increased shipping costs and potential damage to perishable goods.

The EPA offers significant benefits to Kenyan exporters, including duty-free and quota-free access to the European market.

However, to fully capitalize on these opportunities, Kenyan businesses must meet EU quality and safety standards which the government and the EU can play a crucial role in providing technical assistance and capacity building to help businesses comply with these standards.

The call comes hot on the heels of the highly charged campaign to actualize EPA intended to bolster trade in goods and create new economic opportunities, with targeted cooperation to enhance economic development.

Speaking during the EPA sensitisation forum at a Mombasa hotel, the exporters acknowledged the special agreement will be a game changer to Kenya’s export industry but noted that the Kenyan government and the EU hold the key to establishing connections to make a soft landing for them in the European Market.

“Kenya is a tropical country ready to feed Europe from vegetables to meat and all types of produce. But as an exporter and an entrepreneur, my request to the Kenyan government and the European Union is to if there is a possibility to create an avenue for a soft landing in Europe,” said Mary Oyier, the founder of Maria Agri Products (MAP).

She explained in the online space they lose lots of money because they land in the hands of scammers.  “So as pioneers of this agreement Kenya and EU can organise a trade fair or an exhibition of like say the first 10 containers to be shipped in Europe so that we can create direct contacts with business people in Europe and from there we can heat it up,” Oyier stated.

“We need a connection in only one country and the rest will fall into place.” The exporters further decried losses due to shipping logistical disruptions arising from geopolitical tension in the Middle East, a situation the agribusiness players said affects their competitiveness in the export market.

According to the traders, the closure of the Suez Canal and disruptions in the Red Sea route to European markets have prompted shipping companies to opt for alternative, longer, and more expensive routes, thereby compromising the quality of the produce on export upon arrival in Europe.

“I export avocados…Last year but one I exported to Egypt and this year I exported to Spain but as you know the war in Israel has created transport challenges as the container takes a longer period than when it was before the war started,” said Lydia Barasa.

“So, you will find fruits take more than 38 weeks and most of the fruits get spoiled and we record a loss,” she stated, noting that extended shipping times compromise fruit quality. 

The journey involves multiple trans-shipments, from Mombasa to Oman, then around the Cape of Good Hope to Europe, resulting in avocados arriving nearly ripe.

This situation she said does not align with the industry standard of delivering fruits with a two-week ripening window.

Maureen Maunda Weswa, another exporter who owns Bhulayi Enterprises (Vizuri Stuff) that exports Basketry products and carvings says a network of Asian businessmen in Lamu have slowed down the seafood exportation by taking part in a cartel and fixing prices.

“We export lobsters, crabs, prawns and other seafood to Asia, specifically Hong Kong, China and Singapore but for the last two years, the business has been slow one, because some Asian cartels in Lamu are controlling the seafood export business. Last time, we got a deal to export crabs to Hongkong but we suffered a major challenge getting the crabs because there are individuals in Lamu who are controlling the business,” Weswa noted.

National Assembly Committee for Trade, Industry and Cooperatives Committee James Gakuya said EPA is a milestone for Kenya which depends on the European market for its horticultural produce.

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