By Meletus EZE
Kenya Commercial Bank (KCB), a regional financial institution, plans to open a representative office in China in order to lower cost of Sino-Africa trade, officials said on Wednesday.
Lawrence Kimathi, KCB Group Chief Finance Officer, said this in Nairobi when KCB Group released financial reports for the year 2018.
Kimathi said that they were currently discussing with Chinese government officials and the office should be in place by June.
“We hope to use the office to lower cost of transaction between the Chinese and East African business community by enabling payment for imports and exports in local currencies,” Kimathi said.
KCB Group has presence in Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan.
The regional bank also plans to introduce Chinese yuan in all its countries of operations by the end of the year.
Kimathi noted that increasing Sino-Africa trade had created demand for Chinese currency.
He added that the availability of the Chinese yuan, or renminbi, would remove the need for Chinese and East Africa businesses to trade in goods and services using foreign currency such as the U.S. dollar.
“The overall objective of having Chinese yuan locally is to reduce the cost of transaction between East Africans and the Chinese business community,” he said.
According to the KCB Group financial reports for 2018, the institution recorded a net profit of 24 billion shillings (240 million dollars), which is a 22 per cent increase from the results posted in 2017.
On the balance sheet position, the regional bank maintained its market leadership status as the biggest financial institution in East Africa as its assets surged 10 per cent to 7.14 billion dollars.
Similarly, Kenya on Wednesday urged regional economic blocs to finalise a tripartite agreement on easing cross border trade in seeds.
Hamadi Boga, Principal Secretary for Agricultural Research, Ministry of Agriculture, Livestock, Fisheries and Irrigation, said this at a pan African seed forum in the coastal city of Mombasa.
Boga said that once the tripartite agreements were finalised, farmers across the region will have improved access to quality and certified seeds.
“The agreement should ensure that we maintain excellent seed trade and movement by protecting intellectual property alongside phytosanitary matters,” said Boga.
He urged the Common Market for Eastern and Southern Africa, Southern Africa Development Community and East African Community to act fast to help meet the continental trade agreement and food security plan.
Boga said that studies had shown that in cases where certified seeds are adopted and planted, yields increased by about one and half times, hence leading to poverty reduction and transformation of livelihoods.
The official said that there was need to improve performance of the seed sector in the continent, adding that Africa’s share in the global seed trade is relatively small.
He urged African policymakers to harmonise phytosanitary measures for seed in order to facilitate their free movement across borders.
Boga called for encouraging investment in seed business in the member states, increasing access to existing varieties in the countries and stimulating the breeding and availability of improved seed varieties.
He said that all stakeholders in the seed industry must be conversant with the harmonised regulations to enhance seed trade in the regional blocs.
“Seed companies should take advantage of the harmonised seed regulations to widen and promote competitive and sustainable markets for crop seeds within their regions,” said Boga.
He noted that investments in irrigation are key to boosting food production amid shocks linked to climate change.
Boga said that farmers should be encouraged to use drought tolerant and certified seeds in order to attain food security.—-Xinhua
