International Trade Fairs as Strategies Adopted by Government Agencies in Promoting International Trade Activities in Kenya

Abstract

Throughout the ages, trade fairs have been recognized as one of the most efficient and powerful tools for effectively doing business. As a face-to-face meeting point, international trade fairs are basically a target opportunity for achieving trade objectives. They are a cost-effective means to reach the market audience - in one time and in one place. International fairs are assumed to be important tools that countries use to promote their export potentials and investment opportunities to other countries. Fairs can provide opportunities for a direct relationship in the international markets between various stakeholders such as government agencies representatives, investors, buyers and sellers. As a result, the Kenyan government has created a number of agencies that are concerned with promoting Kenya as an investment destination both locally and internationally in order to achieve economic growth and promote trade activities. These government agencies organize international trade fairs and exhibitions both within and outside Kenya with a view of attracting investors to the country, promoting exports (showcasing Kenyan products and services) and other trade activities. Much of the previous research into international trade fairs has concentrated on developed countries and the role that trade fairs play in facilitating or enhancing international business networks is surprisingly neglected, even in well-known books dealing with management of business relationships. Also, not much known local study has focused into international trade fairs as strategies adopted by government agencies in promoting international trade activities in Kenya. This study therefore sought to investigate into the topic. The research was conducted through a survey study. The target population of this study was the managerial staff working for the major foreign and local firms who have invested in Kenya as a result of international trade fairs. The study focused particularly on the departmental heads of these pivotal firms in the country. This paper utilized a questionnaire as used in various previous similar research projects. This study collected quantitative data using a self-administered questionnaire. Responses received were analyzed by descriptive analysis. From the findings, the study established from the majority of the respondents that international trade fairs as strategies adopted by government agencies in promoting international trade activities are effective. Various international trade activities such as joint ventures, public private partnerships, foreign direct investment, as well as importing and exporting activities result from the trade fairs. International Trade Fairs provide access to key resources, such as information, raw materials, technology and markets and that the direct relationship between investors and government agencies in the trade fairs improved investments and promotes trade activities. In conclusion, the study established that most of the respondents were in agreement that trade fairs helped in realization of trade objectives and facilitated new investments through initial contact with potential investors at the trade fairs while maintaining relationships with important clients and investors. This study recommends that in order to avoid many impediments for startup companies as well as small and medium enterprises (SME’s) that wish to venture to international markets and have no pre-existing knowledge and network, the government agencies should make sure that they give advice promptly as well as relevant information to the upcoming startup companies as well as small and medium enterprises (SME’s