Trade with China gets personal
Updated: 2015-07-20 08:47
By LUCIE MORANGI(China Daily)
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"Kenyan entrepreneurs should extend their inquiries to know if the products they are interested in are certified by the Chinese government," Munyao said.
Once a partnership agreement between a Chinese company and a local trader is agreed, they should draw up binding terms
Many Chinese companies require their Kenyan partners to have an existing businesses. But as business grows, some entrepreneurs find themselves short of capital for expansion.
But Munyao said this should not interrupt a business relationship because Chinese businesses are flexible.
"Once they establish your credibility and honesty, they may extend credit facilities. The Chinese are smart and would not lose such an avenue," he added.
Munyao said Kenya is also attracting Western multinationals, so competition is stiff.
"Kenya is an experimental market that tests the resilience of foreign businesses in Africa. Once you are successful in Kenya, you immediately and easily penetrate the eastern and central region and extend toward the greater south and west Africa," he said.
Munyao's business recently imported TV set-top boxes to meet the growing demand for electronic gadgets as Africa switches from analog to digital.
However, controversy regarding the awarding of broadcasting rights delayed the rollout in Kenya and this has significantly watered down market demand.
But Uganda and Tanzania successfully negotiated the change. "We moved our products to these markets and sold about 90 percent of the set-top boxes in Uganda alone. It is not a huge market, but we did not lose," he said.
Munyao praised the market reforms the Kenyan government has been implementing.
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