Mudavadi Reaffirms Kenya’s Commitment to Strengthening Trade and Connectivity with Ethiopia
Lamu Port, which has been positioned as a transformative asset in regional trade, presents significant opportunities for enhancing economic cooperation between Kenya and Ethiopia.
Prime Cabinet Secretary Musalia Mudavadi held a high-level meeting with Ethiopia’s Minister of Foreign Affairs, Dr. Gedion Timothewos, to discuss critical trade and economic issues between the two neighboring nations. Photo/Musalia Mudavadi.
Prime Cabinet Secretary Musalia Mudavadi held a high-level meeting with Ethiopia’s Minister of Foreign Affairs, Dr. Gedion Timothewos, to discuss critical trade and economic issues between the two neighboring nations.
During the talks, Mudavadi commended Ethiopia for its strategic use of Lamu Port and reaffirmed Kenya’s commitment to ensuring that the facility serves as Southern Ethiopia’s primary gateway.
Lamu Port, which has been positioned as a transformative asset in regional trade, presents significant opportunities for enhancing economic cooperation between Kenya and Ethiopia.
Mudavadi encouraged Ethiopia to maximize the full potential of the port, highlighting its role in improving trade efficiency and boosting economic growth for both nations.
In addition to trade infrastructure, the meeting also addressed key bilateral concerns, particularly the challenges facing Kenya Airways in repatriating its funds from Ethiopia.
Mudavadi emphasized the need for a swift resolution to this issue to ensure seamless financial operations and enhance connectivity between the two national carriers.
The difficulties in fund repatriation have posed operational challenges for Kenya Airways, impacting its ability to fully capitalize on the Ethiopian market.
Resolving this matter, he noted, would not only strengthen aviation cooperation but also facilitate smoother business engagements between the two countries.
Another key topic of discussion was Ethiopia’s telecommunications sector, particularly the decision to grant a license to the Safaricom-led consortium.
The move, which has attracted investments amounting to USD 1.9476 billion, has significantly contributed to the sector’s growth, reaching 4.6 million active customers by June 2024.
Mudavadi applauded Ethiopia for this milestone but also raised concerns over various operational hurdles affecting Safaricom’s business in the country.
These challenges include issues related to interconnection rates, pricing regulations, tax incentives, and infrastructure setup, which continue to hinder the company’s ability to operate optimally.
Mudavadi stressed the importance of resolving these bottlenecks to unlock the full potential of the telecommunications partnership, emphasizing that overcoming these challenges would result in mutual economic benefits for both Kenya and Ethiopia.
The discussions between Mudavadi and Dr. Timothewos underscored the deepening economic ties between the two nations and the shared commitment to addressing trade and investment barriers.
With Lamu Port poised to play a central role in regional trade and ongoing efforts to resolve aviation and telecommunications challenges, the partnership between Kenya and Ethiopia is set to grow stronger, fostering economic prosperity for both countries.
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