SPEECH BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H.

, PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCES OF THE REPUBLIC OF KENYA DURING THE ETHIO-KENYA BUSINESS FORUM, ADDIS ABABA, ETHIOPIA, 11TH MARCH, 2014 Your Excellency Captains of Industry Ladies and Gentlemen On behalf of my delegation, let me thank you for the invitation to address this usiness !orum" #llo$ me also to convey to %is Excellency the &rime 'inister, #to %ailemariam (esalegn, and to the people of the !ederal (emocratic )epublic of Ethiopia, the $armest fraternal greetings from the people of *enya" +he cordial relations bet$een *enya and Ethiopia, anchored in old economic, cultural and historical ties, are a matter of pride for both our peoples" +his opportunity to engage $ith Ethiopian private,sector leaders and business executives promises to deepen those ties" Your Excellency, Ladies and Gentlemen It is a central aim of our visit to lay the foundation for robust economic and commercial relations bet$een our t$o peoples" -hile our countries already trade very extensively, there remains room for the expansion of mutual business and investment opportunities" +hat is $hy I am pleased not only to speak to players in commerce and business, but to also listen to their proposals" Your Excellency I have observed $ith appreciation the results of the $ide economic and social and reforms undertaken by the Government of Ethiopia in recent years" Chief among them has been the ne$ appreciation of the private sector.s critical role" #s in my country, your private sector has gro$n into an important partner in the development and implementation of policies and programs for prosperity/ close partnerships bet$een government and business have expanded the productive capacity of our economies" Your Excellency, Ladies and Gentlemen Ethiopia is today a ma0or regional trading partner $ith CO'E1#" *enya, on the other hand, has been an energetic member of the same association" -e

$elcome, therefore, the pronouncement made at the most recent CO'E1# 1ummit that Ethiopia $ill 0oin the CO'E1# free trade area by (ecember 2345" #s political leaders, $e fully appreciate the private sector.s support of regional integration/ $e are particularly grateful for the diligence $ith $hich the business community has aided the tripartite trade negotiations bet$een the East #frican Community, the 1outhern #frican (evelopment Community and CO'E1#" Our goal is to hasten the advent of a more effective regulatory regime, and the gro$th in trade $e can expect thereafter" It is $ith pleasure I note that the volume of trade bet$een *enya and Ethiopia has gro$n steadily over the years" In 2342, *enya.s exports to Ethiopia stood at 678"2 million $hile imports from Ethiopia $ere $orth 65"4 million" It is therefore *enya.s strong desire to implement the 1pecial 1tatus #greement concluded in 9ovember 2342" #part from providing a strong foundation for sustaining the special relationship bet$een *enya and Ethiopia, the 1pecial 1tatus #greement provides a frame$ork for engagement $ith bilateral investors, particularly in the development of strategic infrastructure and in aligning this to both countries. development agenda" I, therefore, urge *enyan and Ethiopian business membership organisations to begin consultations $ith their counterparts" +he :uicker they identify hindrances to the smooth flo$ of investment bet$een the countries, the :uicker both governments $ill be able to remove them" Ladies and Gentlemen -e both have young, vibrant populations, at similar levels of development" 'ost importantly, $e share the spirit of #frican solidarity and a common land border" -ith substantial reserves of natural resources also in consideration, it is clear that the potential for a $in,$in collaboration bet$een our t$o countries is almost limitlesss" #s you are a$are, t$o years ago my country, Ethiopia and 1outh 1udan signed an agreement for a mega pro0ect to open up the transport corridor from Lamu to #ddis #baba and ;uba in 1outh 1udan" Once complete, L#&11E+, as it is more conveniently called, $ill enable Ethiopia to import and export goods via Lamu &ort at competitive rates" Let me hasten to add that Lamu is strategic both politically and economically for our region/ indeed, it presents a most logical entry to both East and Central #frica" Your Excellency, Ladies and Gentlemen

I spoke of our young populations" +hat age structure presents us the challenge of finding dignified $ork for our young people/ a challenge made all the steeper by global economic difficulties" +he burden falls as heavily on private sector leaders as it does on governments< it is your duty to $ork as closely as you can $ith us to employ our youth, and secure ne$ markets for your goods and services" I can disclose that *enya stands ready to begin consultations for the regulations and guidelines that $ould allo$ Ethiopian companies to raise investment capital and trade at our 9airobi 1ecurities Exchange" 'ore importantly, $e are enthused by the possibilities for 0oint ventures bet$een our businesses, and particularly by the potential for cross,listing on regional bourses" Your Excellency, Ladies and Gentlemen If I may, let me take this opportunity to share $ith you *enya.s o$n experiences in business regulation and corporate governance" +he Government of *enya continues to regard the private sector as a key centre of economic and social development" -e have built regulatory capacity through the establishment of statutory bodies $ith sufficient legal po$ers to ensure and enforce fair trade and pricing practices" E:ually, the Government has divested itself of its ma0ority shareholding in state commercial companies through the 9airobi 1ecurities Exchange" +he divestiture programme bore fruit in improved corporate governance, as vital business decision,making and management instruments $ere left to the private sector" 1upported by a strong monetary and fiscal policy frame$ork, the private sector in *enya is no$ one of the fastest gro$ing in #frica" +his is the signpost that $e $ish to plant here today" In the hope that our experience $ould inspire your practice, I have $ith me in my delegation experienced private sector executives $ho $ill be pleased to share their kno$,ho$" Your Excellency, Ladies and Gentlemen In the area of Information Communication and +echnology =IC+>, I bring ne$s of *enya.s advances in the application and development of IC+ based products and services, $hich have hugely improved the lives of millions of *enyans" One such product is our mobile money transfer service, ',&E1#, and the mobile bank account service, ',1%-#)I" *enya $ould be happy to share policy and technical expertise in similar ventures" +urning to the capacity of developing countries to mobilise development resources from international development partners, it is perfectly clear that

traditional sources are no longer as promising as they once $ere, for a variety of reasons" -e must no$ embrace alternative means of financing the vital development pro0ects in our priority sectors" It is time, in fact, to deepen our public,private partnerships and to make the private sector.s efficiencies our o$n" +he pri?es are gro$th economies, ne$ 0obs, and better public services" #s $e address the challenges associated $ith our relatively high costs of production, particularly in energy, let me ask the private sector and business associations in our t$o countries to 0oin their Governments in containing harmful and undesirable business engagements, especially those involving contraband goods and banned products" Your cooperation is to your advantage< you $ill protect the 0obs that ultimately underpin your markets, and investments" Let me close by emphasising that $e value the private sector, as a key partner in the development of our economies, and $ith them our people.s prospects" &recisely because $e value your $ork, $e $ould be happy to hear from you" Let us kno$ ho$ $e can fashion stronger links $ithin the multilateral trading system that no$ prevails" -e are happy to facilitate trade en:uiries, product,promotion fairs and investment fora" 'embers of my delegation $ould be delighted to ans$er :uestions or clarify any issues that may arise" #nd the *enyan Embassy in Ethiopia $ill be only too happy to follo$ up the proposals and in:uiries initiated at this forum and report on their progress" I thank you" God less you"