UK Foreign Aid, the Eu and German Coffee Barons

Of the £13 Billion annual UK foreign aid budget around £600 million is given to Kenya.

Kenya has long ties with the UK and is arguably one of the most progressive countries within Africa. Kenya is striving for self reliance and is a dynamic rising economy.

But the question has to be asked: Why does Kenya need this aid?

Why isn't Kenya self reliant already?

To be self reliant Kenya (or any country) needs to build trade. They need to sell and export Goods and Services. From this trade comes a surplus and from that surplus Kenya could provide the education, health care and education services that are currently propped up by UK foreign aid.

One of Kenya's main industries is growing coffee beans and selling the unprocessed beans to the Eu (Germany in particular)

Compared to selling processed coffee, the profitability of selling coffee beans as a raw material is pitiful. If you spend say £5.00 on a bag of ground processed coffee, then  about 5 pence (1%) will go to the Kenyan coffee grower.

So why don't the Kenyans process their own coffee and sell on the refined product? 

That's where we come to the German Coffee Industry and Eu protectionism.

Germany (and the rest of the Eu) cannot grow coffee beans. So the Eu is happy to have a zero tariff on coffee beans when imported as a raw material. 

But coffee is processed in Germany and the German Coffee Barons don't like competition. Neither does the Eu. 

If the Kenyans wanted to sell processed coffee to the Eu then they get hit by a 7.5% tariff. On the tight margins in a competitive industry that 7.5% is a killer.

AS a result Kenya doesn't invest in processing its own coffee and makes far less than it should out of its coffee industry.

All so German coffee grinders and blenders can operate free from competition.

Meanwhile UK Foreign Aid is used to prop up vital Kenyan services. 

In a perverse way the final destination of a large part of the £600 million UK foreign aid given to Kenya isn't Kenya at all. It ends up lining the pockets of protected and cosseted German Coffee Barons who profit from this unfair competition.

Without punitive and debilitating Eu tariff boundaries the Kenyans could develop their natural industries as they should be developed. Then they could pay for their own services and not be dependent on the largess of the UK government.

Poor Africans striving for a better future deserve better than this.

And so do we.

Vote Leave on Thursday.

Vote Leave for yourself, and vote Leave for the poor African farmers abused by the Eu.

Hat tip to Anna Racoon who looks at further Eu abuse and exploitation of African Farmers Here

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