The two countries have signed deals with the Asian giant in agriculture, healthcare and aviation.
Agriculture, healthcare and aviation are among sectors in Kenya and Rwanda that will benefit from the partnerships signed with India on the sidelines of the 8th Vibrant Gujarat Global Summit 2017 took place place in India from January 10-13.
RwandAir will be the biggest beneficiary as President Paul Kagame announced that his country’s national carrier will start direct flights to India later this year after the signing of a Bilateral Air Services Agreement.
“We are ready to discuss business and investments right away. We have every reason to succeed in our efforts. We are here to make it work,” said President Kagame.
RwandAir chief executive John Mirenge said that the necessary paper work on the frequencies and equipment to be used has been completed.
“Our plan is to start the long haul operation to India in April. We hope to ease market access for both countries and boost our tourism sectors,” said Mr Mirenge.
Currently, travellers between Mumbai and Kigali have to change flights either in Entebbe in Uganda, Addis Ababa in Ethiopia or Nairobi in Kenya, with the journey taking more than 10 hours and costing upwards of $2,000, depending on the airline.
Kenya also pushed for an increase in the frequency of flights between Nairobi and Mumbai. In the memorandum of understanding, carriers from both countries were granted seven additional frequencies. Kenya also granted India the right to fly to Kenya, drop off passengers and proceed to another destination on the continent where they have landing rights.
The previous month, KQ had signed a co-operation agreement with India’s Jet Airways to codeshare on domestic flights between Mumbai, New Delhi, Ahmedabad and Hyderabad, in order to enhance connectivity choices for guests travelling from Kenya to India. The arrangement also enables Jet Airways passengers to book codeshare tickets to Nairobi, and access the rest of Kenya Airways’ network across Africa.
“In December 2015, we granted increased frequencies to each other for our respective airlines. I would like to encourage them to exploit the infrastructure laid down by the Bilateral Air Services Agreement to increase connectivity and mobility of people,” said Kenya’s President Uhuru Kenyatta.
Kenya also bagged $100 million for agricultural mechanisation through a line of credit agreement, with the Indian Prime Minister Narenda Modi saying that the country’s long term arrangement with Kenya for production and import of pulses is under discussion.
“We are keen to increase the volume and value of exports to India by shifting our export base from agricultural and minerals-based raw materials to value added manufactured products. We are also seeking partnerships with India in technology transfer to increase our capacity to add value to our natural products. I also requested India to consider extending the project targeting African cotton growing countries to Kenya as this will help to increase production,” said President Kenyatta.
Market access
Kenya is also pushing India to improve market access for its products that are on high demand in India such as leather products and pulses.
In 2015, the trade balance between Kenya and India reached at $2.22 billion in favour of the latter, with the former benefitting from investments worth $3.5 billion over the past five years. In the third quarter of last year, Rwanda imported goods worth $33.02 million from India.
In terms of investment, data from the Rwanda Development Board shows that the country has benefited from Indian investments worth $317.5 million in the past five years alone.
“We urge India to accord Kenyan exports the same tariff as other East African countries,” said President Kenyatta.
“Already, the Bhabhatron, a machine developed by Indian scientists for cancer treatment, has been delivered to the Kenyatta National Hospital for cancer treatment. Related capacity building for Kenyan doctors is being undertaken under our India Africa Forum Summit initiative,” said Mr Modi.
President Kenyatta said that Kenya relies on generic anti-retroviral drugs manufactured in India.
“Given the large market and demand for the drugs in the region, we would be glad to ensure that the drugs are available, mostly to people infected with HIV/Aids and would like to thank India for donating a consignment of anti-retroviral drugs to Kenya,” he said, adding that Kenya would greatly benefit from the transfer of technology by Indian pharmaceuticals.
Rwanda will also benefit from India’s International Solar Alliance initiative, which will see the latter provide solar power to 35 schools in rural parts of the country.
