Korea-Africa-Kenya Trade and Shipping Companies
Dr. Kennedy Otwori Osoro, Diplomacy and International Studies University of Nairobi
Dr. Kennedy Otwori Osoro is a seasoned consultant in the fields of international trade and international economic relations. Dr. Osoro is a 55-year-old Kenyan who has been a lecturer for 23 years. As a senior lecturer, researcher, supervisor, and trainer at the University of Nairobi, he holds a doctorate in economics and has researched and published extensively in the areas of international trade and macroeconomic. In addition, as a seasoned researcher and data analyst, I have a solid foundation in statistical and economic analysis, regional integration, and extensive experience in the development and implementation of policy and legal frameworks.
Abstract
Korea exports to Africa of all products in 2022, was 37% and imported 39% from Africa, the figure remained constant at 31% in 2023 but imports declined to 30% in 2024, while exports increased to 32% of all the goods. During 2022-24, the top exports from Korea to Africa were Ships, boats and floating structures, Vehicles other than railway or tramway rolling stock, sound recorders and reproducers, television, and pharmaceutical products, while the top imports from Africa to Korea were Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral, Copper and articles thereof, Ores, precious or semi-precious stones, precious metals, metals clad, Iron and steel, Fish and crustaceans, molluscs and other aquatic invertebrates, Coffee, tea, maté and spices
Kenya to Korea, has anExport potential $46 mn and Unrealized potential $31 mn and the products with greatest export potential from Kenya to Korea are Coffee, not roasted, not decaffeinated, Titanium ores & concentrates, and Disodium carbonate. Disodium carbonate shows the largest absolute difference between potential and baseline exports in value terms, leaving room to realize additional exports worth $1.7 mn, representing 5.6% of unrealized export potential. Kenya’s best options for export diversification in Korea are Bananas & plantains, Ferro-nickel and Shrimps & prawns, frozen. Kenya finds Carbonised wool, not carded/combed easiest to reach. Copper cathodes is the product that faces the strongest demand potential in Korea, Republic
Export potential for Korea to Africa for allproductsisExport potential $16 bn and Unrealized potential $8.6 bn.The products with greatest export potential from Korea to Africa are Cargo vessels, n.e.s., Tankers, and Motor vehicles for the transport of <10 persons. Tankers shows the largest absolute difference between potential and baseline exports in value terms, leaving room to realize additional exports worth $1.4 bn, representing 16% of unrealized export potential.
Korea’s best options for export diversification in Africa are Bicycle pedals & crank-gear, Methionine and Spark-ignition outboard motors for marine propulsion. Korea, Republic of finds Bicycle pedals & crank-gear easiest to reach. Motorcycles, piston engine [50-250cm3] is the product that faces the strongest demand potential in Africa.
On International shipping industry the African continent has total coastline of over 26,000 nautical miles, including its islands. 38 out of 54 countries on the continent are either coastal or island states. Africa’s maritime network includes 142 links connecting 65 ports; accounts for 22.1% of intra-African freight transport. Only two African ports are featured on the 2024 list of top 50 global container ports. Tanger-Med- Morocco, Port Said, Egypt
Companies like African Shipping SARL, Ocean Africa Container Lines, Coastal International Shipping Lines, and United Africa Feeder Line are examples of African-owned shipping lines. International shipping giants like Maersk, MSC (Mediterranean Shipping Company), and CMA-CGM also have a strong presence, particularly in container shipping.
Despite the vast opportunities presented by AfCFTA, logistical bottlenecks such as the 55 to 60-day shipping time between Ghana’s Tema Port and Kenya’s Port Mombasa – via European transshipment hubs – remain a major impediment to the free movement of goods within Africa.because there is no direct maritime route, despite being only, a six-hour flight apart. A domestically owned African shipping line, would reduce dependency on foreign carriers and also support local job creation, promote industrialisation and retain capital within the region. AfCFTA prosperity requires more African seafarers, ships and ports because 0ther types of freight are typically more expensive, less efficient and less reliable due to the generally underdeveloped railway and highway systems on the continent. Even Africa’s landlocked countries, trade depends primarily on maritime gateways. The first goods traded under the AfCFTA regime were carried by ship from a Ghanaian cosmetics company to Guinea on 4 January 2021. The resultant is Intra-African trade constitutes only about 16 percent of the continent’s total exports, compared to 55 percent in Asia, 49 percent in North America and 63 percent within the European Union.
As a consequence, the key trends shaping Africa’s Container Shipping Landscape is massive Investments in Port Infrastructure in modernizing and expanding key ports to increase capacity and boost efficiency. Projects like Kenya’s Port of Mombasa expansion, Nigeria’s Lekki Deep Sea Port, and Lamu Port in East Africa are positioning the continent as a key player in global trade networks. Embracing Digitalization and Automation like in South Africa, for example, the Port of Durban has embraced smart port technologies to streamline operations and minimize delays and Intra-African Trade Growth Through AfCFTA by reducing tariffs and trade barriers, which in turn will stimulate intra-African trade, creating a surge in demand for containerized transport.
The Largest Maritime Shipping companies in Africa per Country includes 1. Egypt – MSC (Mediterranean Shipping Company) With 721 vessels is Egypt’s largest marine shipping company in the Port of Alexandria. 2. South Africa – Maersk Line, with a total of 740 vessels. with the Port of Durban serving as one of its critical operational centres. 3. Morocco – France’s CMA-CGM, with 600 vessels, operates in more than 160 countries, has significant operations in the Port of Casablanca. 4. Algeria – CMA GGM Algeria, utilizes the Port of Algiers, a crucial port 5. Ghana – MSC (Mediterranean Shipping Company) boasting a fleet of 721 ships, is a Swiss-based has a considerable presence in Ghana, especially at the Port of Tema. 6. Kenya – Morgan Cargo Logistics is top-tier container transport and logistics services, has base in the Port of Mombasa. 7. Nigeria – COSCO – China Ocean Shipping Company, Chinese state-owned enterprise with 180 vessels, is the largest marine shipping company in Nigeria and operations in the Port of Lagos. 8. Tunisia – MISTRAL SHIPPING TUNISIA, has substantial operations in the Port of Rades, Tunisia’s main port. 9. Angola – “Maersk Angola, with its fleet of 740 vessels, Denmark-based corporation operates in more than 70 nations, its operations are carried out from the Port of Luanda. 10. Tanzania – MSC (Mediterranean Shipping Company) with a robust fleet of 721 vessels, runs comprehensive operations in the bustling Port of Dar es Salaam.
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