EXIM Thailand Offers Special Deals to Promote African Market Penetration and Thai-Kenyan Trade and Investment

Stocks and Financial Services Press Releases Tuesday August 28, 2018 12:42
Bangkok--28 Aug--EXIM BANK

Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that Africa is a so-called new frontier for Thai entrepreneurs, so EXIM Thailand has made available benefit package for new entrepreneurs who wish to take out export credit insurance with EXIM Thailand to hedge risk of foreign buyers' non-payment. The package comprises 1) a 50% reduction of the calculated export credit insurance premium, and 2) analysis of foreign buyer data free of charge for the first two buyers and 50% discount for the 3rd-5th buyers. The insured will be compensated for a loss from buyers' non-payment at 80% of the loss incurred in relation to trade and political risks. Entrepreneurs may apply for the package from today until the end of 2018.

Mr. Pisit further said that EXIM Thailand has extended collaboration with Thailand's and Kenya's public and private sectors in trade and investment promotion. He recently led an EXIM Thailand team of management and staff members on a visit to Kenya to pay a courtesy call on and meet with H.E. Mr. Cherdkiat Atthakor, Thai Ambassador to the Republic of Kenya; Mr. Thanit Ngansampantrit, Minister Counsellor (Commercial) in Nairobi; and high ranking officers of Kenyan government agencies and private enterprises, namely Central Bank of Kenya, Commercial Bank of Africa Limited, Kenya Investment Authority, Export Processing Zones Authority, Kenya Private Sector Alliance, and Kenya Association of Manufacturers, as well as Kenyan corporates, e.g. Jamil Telecommunications Ltd., mobile phone operator, and Honda Motorcycle Kenya Ltd.

EXIM Thailand President said he had found from this visit that Thailand's trade with and investment in Kenya today is still very small. Thai export to Kenya is merely 0.1% of total export value, although there is high demand for imports of almost all categories of goods, from consumer goods to raw materials and capital goods, due to inadequate supply from local manufacturing sector to meet the high demand. Also, in view of investment, only a few Thai entrepreneurs have made their presence there vis-à-vis a large number of entrepreneurs from competitors like China and India. It may be because Kenya is situated far away from Thailand, with which Thai entrepreneurs are not so familiar and information on which is still lacking. EXIM Thailand has thus looked to expand cooperation with Thai and Kenyan public and private entities in promoting and growing trade and investment between the two countries. This will be in line with Kenya's economic potential, with a growth forecast of 6-7% in the next five years, strong economic and financial fundamentals, and stable exchange rates, compared with those of other countries in the same region. Kenya is also considered a business hub in Eastern Africa accommodating distribution of goods across the region. Moreover, the Kenyan government has an investment promotion policy in place to offer various tax and non-tax incentives and benefits to foreign investors, such as exemption of corporate income tax, exemption of raw material and machinery import duty, establishment of one stop service center to facilitate business incorporation, etc.

Major export goods from Thailand include rice, sugar, motor cars, parts and accessories, rubber products and plastic resin, while main import goods from Kenya are chemicals product, fresh/chilled/frozen/processed/semi-processed aquatic animals, electronic integrated circuits, animals and animal products, and edible meat. As regards investment, Thai entrepreneurs have invested in such businesses as Thai restaurants, spas and hotels.

"Kenya is a new frontier market with high potential ranking among the top in Africa. It also links Eastern Africa with Central Africa for distribution of goods. EXIM Thailand thus aims to encourage Thai entrepreneurs to tap this market for their trade and investment. We are ready to give advice and bring Thai businesses to Kenya through first having Thai goods exported and distributed there to test the market and learn about Kenyan consumer behaviors and then make investment endeavors in local areas where demand for goods and services in response to modern lifestyle has been increasing steadily," added Mr. Pisit.

For further information, please contact Corporate Communication Division, Secretary and Corporate Communication Department
Tel. 0 2271 3700, 0 2278 0047, 0 2617 2111 ext. 1141, 1144

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