- Kenya’s exports into the UAE dropped from 38.6billion in 2019 to 34.4 billion in 2020.
- The partnership will facilitate the exchange of trade information, market intelligence, and opportunities through workshops, trade fairs, virtual events.
Kenyans exporting goods into the United Arab Emirates (UAE) set to get insurance against non-payment of exports or international sales transacted on credit in a bid to increase volumes of trade exchange between both countries.
This is following the signing of a Memorandum of Association (MOU) between the UAE Federal export credit company Etihad Credit Insurance (ECI) and the Kenya National Chamber of Commerce and Industry (KNCCI) on June 9th, in Nairobi.
Kenya’s exports into the UAE dropped from 38.6billion in 2019 to 34.4 billion in 2020. The partnership marks a new dawn for investors, importers, and exporters as it aims to instill trust and confidence in international trade for both countries.
The organizations have mapped exporters, importers, and investors from both countries to be matched through virtual and physical B2B meetings for a program set to commence soon.
The partnership will also facilitate the exchange of trade information, market intelligence, and opportunities through workshops, trade fairs, virtual events, and respective communication platforms to members of KNCCI and ECI.
Speaking during the signing of the MOU ECI Chief Executive Officer (CEO) Massimo Falcioni stated that the partnership will enable Kenya to benefit from the UAE’s pivotal role in maintaining the sustainability and trade finance of supply chains and maritime and aerial shipping movements in global markets.
“The UAE and Kenya have maintained excellent trade and business relations over the last four decades and, signing of this agreement come at an opportune time for both countries’ businesses, ” Falcioni said.
KNCCI President Mr. Richard Ngatia confirmed that uncertainty of payment has always been an issue of concern to many Kenyan exporters because they purchase the goods on credit hoping to repay when buyers disburse payments.
Mr. Ngatia further noted that some exporters suffer huge losses upon rejection of their goods for not meeting the required standards.
“The partnership is timely and significant as Kenyan businesses can now engage in international trade with reduced risks and the implementation of This MOU will encourage exporters,” Ngatia said.
KNCCI is an organization that protects and advocates for the interests of the business community in Kenya. Kenya exports vegetables, flowers, and tea into the UAE yearly.
ECI was established in February 2018 by the UAE Federal Government and its founders, the governments of Abu Dhabi, Dubai, Ras Al Khaimah, Fujairah, and Ajman.
It plays a catalyst role in supporting the UAE’s non-oil exports, trade, investments, and strategic sector development, in line with UAE Vision 2021 agenda.
The UAE Federal export credit company is tasked to accelerate and sustain national economic diversification and support the export and re-export of UAE goods, works, services, and foreign investments of the UAE businesses.
It further supports the exporters in the domestic trade through a range of export credit, financing, and investment insurance products.