South Africa and Kenya are deepening trade, investment and industrial cooperation, as both countries prepare to drive Africa's economic transformation.
Speaking at the South Africa-Kenya Business Forum in Midrand, Johannesburg on Thursday, President Cyril Ramaphosa and Kenyan President William Ruto called for stronger cooperation between the continent's leading economies, saying Africa's future growth depends on integrated value chains, infrastructure development and increased intra-African trade.
President Ruto was in South Africa on a state visit.
President Ramaphosa said Kenya remains one of South Africa's largest trading partners on the continent outside the Southern African Development Community (SADC), with bilateral trade continuing to show solid growth.
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“Since 2022, total trade between South Africa and Kenya has grown by an average of 3.5% per year,” the President said.
He said South Africa continues to import products, services, technology and skills from Kenya, while investment flows between the two countries have strengthened.
According to President Ramaphosa, Kenyan companies have invested in 11 projects worth US$283 million in South Africa, while South African companies have invested in 96 projects in Kenya worth more than US$2 billion.
In addition to private sector investment, South Africa's development finance institutions have also played an important role in Kenya's development.
Ramaphosa said, “The Development Bank of Southern Africa was one of the financiers of the 350 km pipeline replacing the Mombasa-to-Nairobi petroleum and crude oil product line. Our development finance institutions are keen to do more to finance catalytic infrastructure in Kenya.”
The President said the Business Forum highlighted significant untapped potential in the economies of both South Africa and Kenya as they pursue structural reforms, industrialization and diversification.
“By unlocking this potential, we can drive inclusive growth, meaningful employment and shared prosperity,” he said.
President Ramaphosa welcomed the discussions on infrastructure financing and strengthening regional value chains, saying that investment should also be accompanied by technology transfer and skills development to create sustainable jobs and build local capacity.
He also highlighted proposals aimed at strengthening food security, including the use of technology for climate-smart agriculture and better livestock management to combat foot-and-mouth disease.
The President said both governments are committed to creating an enabling environment for growth by removing barriers to trade and investment.
“We are facilitating trade by enabling physical and digital infrastructure,” he said.
Initiatives under consideration include funding for the Kenya Roads Board Securitization Programme, which aims to support the development of transport infrastructure.
President Ramaphosa said South Africa and Kenya are also updating information and communications technology agreements to keep pace with advances in industrial innovation, technology transfer, digital trade and artificial intelligence.
“These are just some examples of how we are bridging infrastructure gaps, reducing costs and keeping our products and services competitive against imports from outside the continent,” he said.
driving change
Echoing President Ramaphosa's sentiments, President Ruto said the two countries have the combined economic strength needed to drive Africa's transformation.
“Kenya and South Africa are one of the leading economic bases of our continent.”
He described South Africa as one of Africa's leading industrial and financial powers, while Kenya serves as a gateway to East and Central Africa through its dynamic private sector, digital innovation ecosystem and expanding strategic infrastructure.
President Ruto said the two countries have growing partnerships in trade, investment, tourism, aviation, financial services, manufacturing, ICT and logistics.
“Today, more than 60 South African companies operate in Kenya in banking, insurance, retail, manufacturing, telecommunications, infrastructure and real estate,” he said.
The Kenyan President said the African Continental Free Trade Area (AfCFTA) presents one of the greatest opportunities for economic growth on the continent by creating a single competitive market capable of attracting investment, creating jobs and accelerating industrialization.
“We must move beyond traditional trade and deliberately create integrated regional value chains in manufacturing, agriculture, mining, logistics, pharmaceuticals, energy, digital services and green industrialization,” he said.
President Ruto commended the collaboration taking place through the Joint Cooperation Commission and the Joint Trade Committee, saying their outcomes must now be fully implemented to deliver tangible benefits for businesses and investors.
He highlighted opportunities for collaboration in the automotive manufacturing, pharmaceuticals, mining, chemicals and steel sectors – where South Africa's industrial strength complements Kenya's emergence as a regional production and logistics hub.
On agriculture, President Ruto called for greater investment in agro-processing, irrigation, cold-chain logistics and supply chains that link African producers to African markets.
“Africa cannot afford to spend billions of dollars on food imports while our own farmers and agri-industries are ready to feed the continent,” he said.
South Africa views Kenya as a major strategic partner in East Africa, while Kenya remains South Africa's largest trading partner on the continent outside SADC.
The two countries have signed several agreements covering agriculture, education, tourism, transport, defence, water and sanitation and trade.
The South Africa-Kenya Business Forum brought together government and business leaders to strengthen economic cooperation, facilitate partnerships and identify new opportunities for trade and investment across the continent.