South Africa dominates its trade relationship with Kenya

The relationship between Kenya and South Africa seems to be blossoming as trade between both countries, particularly on the side of South Africa, strengthens. A recent report showed that Kenya’s imports from South Africa increased significantly, while South Africa’s imports from Kenya declined. This new development further tilted the trade balance in South Africa’s favor.
South Africa dominates its trade relationship with Kenya

As seen in the Kenyan business news platform, BusinessDaily, the imports from Pretoria to Nairobi increased by 28.3% in 2023.

The data which was released by the South African Revenue Service (SARS), revealed that South Africa shipped its products worth 11.24 billion Rand (Sh96.83 billion) to the East African country between January 2023, to the end of the year.

This is an increase from the goods South Africa exported to Kenya the year prior, worth 8.76 billion Rand (Sh75.48bn).

Iron and steel remained the most exported product South Africa traded to Kenya, “amounting to 2.21 billion Rand (Sh18.94 bn) followed by mineral products at 1.868 billion Rand (Sh15.98 bn). This was followed by vehicles, aircraft, and vessels at Sh15 billion and chemicals at 1.22 billion Rand or Sh10.47 billion,” the report by BusinessDaily revealed.

The dominance of this sector underscored the strategic importance of both commodities in bolstering the South African economy.

However, Kenya’s exports to South Africa experienced a decline. The report by the business publication also showed that Kenya's exports to South Africa reduced by 16% from 441.69 million Rand (Sh3.8 bn) in 2022 to 371.38 million Rand (Sh3.19 bn) in 2023.

Despite the challenges in export figures, the East African giant is poised to get a value cargo of products from South Africa, marking a significant milestone under the African Continental Free Trade Area (AfCFTA). The exact value of the cargo is yet to be disclosed, but this development signifies the evolving nature of trade relations within the African continent.