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On a warm May afternoon in 2007, during a critical dialogue between the Kenya Association of Manufacturers (KAM) and the Ministry of Trade and Industry, the late Hon. David Nalo, then Permanent Secretary for Trade, made a thought-provoking remark: “Our embassies should be more than ceremonial. They must drive our economic agenda abroad.” This sentiment resonated deeply and became a pivotal theme in a speech I had the privilege of drafting for Dr. Manu Chandaria, a world-renowned industrialist and philanthropist, as he addressed Kenyan Ambassadors and High Commissioners on their roles in supporting the private sector.
Seventeen years later, the world has transformed in ways both profound and challenging. Political conflicts between nations have diminished significantly, with most global engagements now rooted in economics. Trade barriers, market access, competition, intellectual property rights, and workforce mobility dominate the diplomatic agenda. Yet, the core message of that speech remains strikingly relevant today.
Delivered to heads of Kenyan missions during a high-level engagement with Ambassadors and High Commissioners, Dr. Manu Chandaria’s address underlined a simple yet vital truth: embassies are no longer just about politics and protocol; they must be engines of economic diplomacy.
In a rapidly shifting global landscape, where geopolitical influence is increasingly defined by economic strength, the role of ambassadors must evolve. Traditionally viewed as ceremonial figures, embassies must now actively drive economic agendas abroad. Ambassadors are no longer just representatives of political power but essential players in trade facilitation, investment opportunities, market access, and business development.
The modern diplomat’s toolkit must include trade policy, market intelligence, and business facilitation. Ambassadors, particularly in the East African context, must adapt to a world where economic strength determines geopolitical influence. This shift demands a reimagined role for diplomatic missions, one where they actively champion the private sector, resolve trade disputes, and secure market access.
The challenges of globalization, non-tariff barriers, and intense competition remain significant hurdles for industries like tea, coffee, horticulture, and tourism. These sectors, long the backbone of Kenya’s and Uganda’s export economies, now face formidable competition from emerging markets. For East Africa to thrive, embassies must move beyond ceremonial ribbon-cutting to tangible, data-driven interventions that unlock new opportunities for businesses back home.
The need for merit-based appointments to embassies was raised as well. Traditionally, ambassadorial roles have been allocated based on political affiliations with rejects in political elections taking the lion’s share of the appointments, often sidelining candidates with strong commercial expertise. The private sector has consistently lobbied for a shift, advocating for the inclusion of commercial attaches and diplomats who deeply understand business dynamics.
These specialists, who could be drawn from the private sector or trained extensively in international trade, can play important roles in identifying opportunities, addressing barriers, and facilitating trade. The diplomats must lead the charge in fostering bilateral agreements, navigating regulatory hurdles, and ensuring that their country’s products compete favorably in global markets, while negotiating for favorable investment for their countries.
One persistent challenge for businesses has been the lack of actionable market intelligence from diplomatic missions. Ambassadors must transform their embassies into hubs of trade information, providing real-time data on tariffs, market conditions, and competitive landscapes.
For example, accessing markets like the Democratic Republic of Congo (DRC) remains a daunting task due to limited information on logistics, tariffs, and regulatory requirements. Embassies should bridge these gaps by creating repositories of trade intelligence and facilitating business roadmaps tailored to specific regions.
I had the privilege to be involved in various trade missions organized by the Government of Kenya to various countries. These missions unraveled the gaps in our embassies abroad on championing the commercial agenda in the critical markets for the Kenyan products
East African products, despite their quality, often face barriers related to standards and branding. The “kikoi” case, where the iconic Kenyan textile faced threats of intellectual property infringement, serves as a cautionary tale. The embassies must provide advisory role on protection of intellectual property in their markets.
Such protection extends beyond legal safeguards; it requires active promotion of these products in foreign markets. Embassies must lead efforts to create brand visibility, leveraging local networks to connect businesses with distributors, retailers, and consumers.
Trade facilitation goes beyond policy; it requires practical interventions. Missions abroad should provide comprehensive insights into logistics, including border clearance processes, distribution networks, and port infrastructure. Delays in accessing this information can result in lost opportunities, something the private sector cannot afford in today’s competitive environment.
The response time on trade queries, such as tariff classifications or documentation requirements, should be swift, ideally within three working days. Missions that prioritize efficiency in such matters will gain the trust of businesses and contribute directly to export growth.
The introduction of performance contracts for Ambassadors is critical too. Missions should be appraised based on tangible outcomes, such as the number of new markets accessed, the resolution of trade disputes, and the facilitation of bilateral agreements.
Market rotation should also be institutionalized. Prolonged postings in one region often breed complacency, with some officers losing focus on their mandate. Regular rotations will not only bring fresh perspectives but also reduce the risks of conflicts of interest.
The private sector remains a vital partner in this transformative journey. Regular engagements between ambassadors and business leaders should become standard practice, providing platforms for feedback, collaboration, and shared strategies. Trade missions should not be confined to low-key fairs but should actively involve businesses in creating new opportunities.
The global economic landscape is dynamic, and the role of ambassadors must evolve accordingly. As Dr. Manu so aptly articulated, “The private sector looks to you to be more than representatives. We expect you to be champions – opening doors, solving problems, and creating new pathways for our businesses to thrive.”
As we reflect on his timeless words, let us renew our commitment to economic diplomacy, ensuring that our embassies abroad are not just symbols of national pride but engines of economic progress. Only then can we truly position our nations as formidable players in the global marketplace.