Export Assistance to Sweden

Map of Sweden
Sweden is one of the three countries in Scandinavia, located in Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, Kattegat, and Skagerrak, between Finland and Norway.

Sweden is the third largest country in Europe.
Capital city: Stockholm
Currency: Swedish Krona (SEK)
Official languages: Swedish, with some sami and Finnish speaking minorities. English is the predominant second language.

Economic Climate in Sweden

Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force.
Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 1% of GDP and of employment.

The Swedish economy slid into recession in the third quarter of 2008 as a result of the global economic recession. Growth continued downward in the fourth quarter as deteriorating global conditions reduced export demand and consumption. In early 2009, the Swedish Government announced a $6 billon rescue package for the banking sector to drive the economy into productivity.
Sweden is a country to be reckoned with and this is boosted by its strong domestic demand and robust exports basket and strong trade partners.
Sweden’s export destination: Germany 10.4%, Norway 9.5%, Denmark 7.4%, UK 7.3%, US 6.6%, Finland 6.3%, Netherlands 5.1%, France 4.9%,Belgium 4.4% (2008)
Main exports from Sweden:  Machinery 35%, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals
Sweden’s principal import sources: Germany 17.5%, Denmark 9.4%, Norway 8.6%, UK 6.2%, Finland 5.7%, Netherlands 5.6%, France 5%, Russia 4.4% China 4.2% (2008)
Main imports into Sweden: Machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs, clothing

Trade between Kenya and Sweden
Kenya’s export to Sweden was Kshs 1.6 billion in 2008 while imports stood at Kshs 7 billion in favour of Sweden. Kenyan exporters have an opportunity to increase trade in order to improve the balance of trade.
The main export products to Sweden in 2008 valued between Kshs. 2Million and 1Billion include:
Coffee; coffee husks; substitutes containing coffee 
Other fruit, nuts & other edible parts of plants, prepared or preserved; nuts, peanuts
Other live plants (including roots), cuttings & slips; mushroom spawn 
Other vegetables, fresh or chilled artichokes, asparagus, aubergines,  mushrooms, chili, spinach, pumpkins, squash, olives, sweet corn
Cut flowers & buds for bouquets or ornaments; prepared, fresh, dried,  
Fruit & vegetable juices (& grape must), not fermented & no spirits 
Vegetable saps & extracts; pectates; agar-agar; mucilages &amp
Tobacco unmanufactured, tobacco refuse

Opportunities for Kenyan exporters
There is a trend indicting a shift in trade, where services (like the IT and telecommunications) have taken over from traditional industries (steel, paper, and pulp)
Service exporters (as covered in our Trade Alert No. 22) can benefit. Kenyan service providers can venture into this segment and collaborate with Swedish service companies. Sweden is highly developed in terms of ICT and Kenyan service providers must adopt the use of ICT to engage in trade.
Export opportunities in the consumer products market segment include footwear, furniture, decorative items and gifts, household and furnishing textiles, jewellery.
Environmental and social friendly products and organic products are easily accepted and have a premium price. The exporter must apply for specific labels for these products.
Kenyan exporters can take advantage of exporting to Sweden under the ACP EU rules, which provides for preferential access to Kenya’s exports of all products.
Sweden has a highly developed telecommunications infrastructure; ranked among leading countries for fixed-line, mobile-cellular, Internet and broadband penetration. Exporters can take advantage of the advanced system to communicate one-on-one with Swedish buyers.
The sale and distribution of imported products in Sweden is either undertaken by the importer himself or by an agent. However, franchising has become a widely popular distribution system for exporters resulting in significant cost reductions. Eliminating the margins of intermediaries such as agents allows for a reduction in prices, to the benefit of consumers.


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