Monday, August 19, 2013

Egypt and Kenya - A look back. And forward.

A look back at a blogpost I posted on 11th April 2012 about the downturn in Egypt's manufacturing and how Kenyan firms can take advantage of the situation

http://coldtusker.blogspot.com/2012/04/manufacturing-egypt-downdraft.html

Here is an article from Global Post about disinvestment from Egypt or at the minimum a slowdown.

http://www.globalpost.com/dispatch/news/regions/middle-east/egypt/130815/egypt-economy-violence-cairo-rabaa-muslim-brotherhood-military-aid

As a member of COMESA, Kenya stands an excellent chance to take back markets lost to Egypt.

Whereas Kenya cannot replicate the beautiful & fascinating pyramids & ancient temples of Egypt, there is a market for tourists who want to enjoy the "Sun & Sand" and not Ancient History in a peaceful environment. It's a pity about JKIA but it should provide the impetus to expand Mombasa's airport to accommodate more flights direct from the tourists' source market.

Back to manufacturing. If Kenya can quickly create an inviting environment for increased manufacturing for export into COMESA, then that will serve Kenyans well for the future not only to counter Egypt but other countries including South Africa, China & India.

Egypt subsidized energy [electricity and fuel] for its export (including COMESA) markets but Kenya's focus on renewable [esp geothermal] energy will be a long-term advantage as Egypt faces hurdles in subsidizing energy for its population & industries. Subsidies will eventually fail and Kenya should stay away from these and concentrate on making the environment attractive for investors & industrial production.

20 comments:

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Incredible! This is a nice post and the comparison between Egypt and Kenya is really interesting. But I think Egypt is more important than Kenya due to its beautiful and marvelous visiting places. It ll create more impression than other one. Its Amazing natural and historical places can make it more famous than other. I like this country more than Kenya. I would like to read more about this comparison and please share more information with me. This post is really very good and thanks for sharing this with us. Keep it up.

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