Political cooperation between Kenya and Iran should not be taken for granted.
Economic ties, on the other hand, though strong, have not been formalised in a manner that would see Kenya benefit from the successful Iranian business experiences.
That is why one is always happy to note any move at strengthening economic cooperation between Kenya and Islamic Republic of Iran. I am talking about the proposed visit to Kenya by Iranian President Mahmoud Ahmedinejad.
One of the things that Kenya has set out to do is to encourage economic ties between the two countries. So, in this aspect, we are quite excited about the coming of President Mahmoud Ahmedinejad to Kenya.
It is obvious that Western investors will continue to shy away from African countries, despite paying lip service to the economic advancement of Africa. Western governments, too, pay only lip service to African development. The disappointing Western reaction to the New Partnership for Africa's Development (NEPAD) is a case in point.
So it would make sense if Kenya turns its attention to Iran for nothing more than economic progress. There were encouraging statements on this issue from a diplomatic point of view. "Iran is very happy to be part of this important process and is ready to share its development with our African friends within bilaterial agreement, which stresses collaboration between African and non-African countries," a high level Iranian official who cited anomity said.
The "Asian Miracle" is well documented globally. Whereas Africa has failed to reach the heights of economic development that was expected of many of the countries on the continent, Asian nations contrived to confound everyone by making spectacular economic progress. It must be pointed out that African countries have done very well in their trade relationship with Asia. According to UNDP associate administrator Zephirin Diabre, exports from African countries to Asia rose from $6.7 billion in 1990 to $17.2 billion in 2000. These exports, one suspects, are made up mainly of primary products while Asian exports to Africa consist totally of manufactured goods.
This is where I believe that the economic relationship between Kenya and Iran should be encouraged by both the West and many in the East. By this I mean an arrangement that will lead to solid investment in Kenya by Iranian businesses and not use Kenya as a platform for economic colonisation or a ground to justify the return of the cold war. According to Kenya’s Government Spokesman Dr. Alfred Mutua, potential for investment is beginning to happen.
There is clear evidence that foreign investment in Africa has been increasing steadily. No matter what the continent's detractors may say, African countries provide a huge potential for investment. Africa has a potential market of 800 million people and one thing an investor can do is to set up shop in one country while producing goods for a number of neighbouring countries. In fact that is what the African Union is all about - creating one huge market.
African countries do need to emulate Asian business and managerial skills in order to make economic progress. One can remember how Asian countries were once described as sweat shops for Western businesses that were setting up cheap plants in the region. But what the Asians did was to learn the good aspects of Western business culture and mould them with the Asian culture of hard work and resourcefulness to work their way out of poverty. Now Asian businesses dominate in the world market. Education and training have played a major part in the Asian development process. Where, for example, you had Americans studying law - to become ambulance chasers - Asian students were burning the midnight oil studying management and technology at US universities. By the time the Americans wised up to this, the Asian countries had become economic powerhouses and were providing a solid challenge to American businesses.
So, it is clear what Kenya need to achieve if it want to play a major role in global business. Kenya needs to create the climate that will promote business, encourage investment that will create employment and, thus, improve standards of living.
