In related news;
German firms upbeat about Kenya potential
By MAREN DIALE-SCHELLSCHMIDT
Posted Monday, February 6 2017 at 18:34
Kenya will from Wednesday until Friday host the German African Business Summit (GABS) in Nairobi. The event that will be officially opened by President Uhuru Kenyatta represents a key milestone for German-Kenyan and German-African relations.
Whereas the first GABS in 2015 was held in Berlin, Germany, this year’s summit is taking place in Africa for the very first time.
Naturally, Kenya has emerged as the preferred platform for engagement and dialogue between Germany and Africa. This underlines the East African economic powerhouse’s growing profile as the de facto entry point into the region.
GABS will draw more than 400 high profile businessmen and policy makers, half of them from the $3.73 trillion German economy.
The overwhelming attendance of German citizens underscores the European power’s growing interest in Kenya. Germany has an expansive footprint in Kenya, which is indicative of the potential she sees in the country of 45 million people.
For example, the German Business Association Kenya (GBA), which presently has over 150 members, is one of the largest and most influential bilateral business associations in the country.
Last year alone, five major companies launched operations in Kenya, including vehicle assembler Volkswagen, which reopened its assembly plant in Thika.
Germany’s sharp interest in Kenya, especially now during an election year, expresses the confidence it has in the country’s economic resilience.
Kenya and its neighbours have exhibited the most resilience at a time when economic growth across the continent has contracted due to the slump in global commodity prices.
The attractiveness of Nairobi has also played a uniquely instrumental role in endearing the country to German investors.
The city of 3.5 million outperforms its peers in the region primarily due to good infrastructure and, most significantly, a well-educated and highly skilled pool of university graduates.
This notwithstanding, some challenges still remain. Key among these is the growing skills gap for blue collar jobs in Kenya, which is adversely impacting the country’s industrialisation prospects.
In Germany, the blue collar worker represents the first and most important element in a long chain of quality control measures. In Kenya, on the other hand, technical education is viewed as less prestigious.
The smart and ambitious young Kenyans needed for these positions see technical and vocational training only as a second choice to attending a university course. This has widened the technical skills gap in Kenya.
In contrast, the abundance of technical skills make the difference in Germany. The European country’s success in machinery and technology can be traced back to the commitment and adroitness of workers on the factory floor.
Germans value talent and are willing to make long-term investments to develop it and retain it. Consequently, German companies have established dual training schemes with Kenyan stakeholders where German companies and Kenyan training institutions collaborate to improve the quality of vocational training. These partnerships have been particularly successful.
The writer is country director, Delegation of German Industry and Commerce in Kenya.
