African Export-Import Bank (Afreximbank) and the Kenyan government have ratified a series of initiatives designed to support the country’s industrialisation and export-led development agenda.
Under the terms of the initiatives, formalised at a signing ceremony with the Kenyan authorities in Mombasa, Afreximbank is expected to finance the development and operationalisation of industrial parks (IPs) and special economic zones (SEZs) to bolster the country’s industrialisation and export manufacturing.
In a press statement, Afreximbank said the proposed industrial parks, to be developed by the bank through its affiliate company, Arise Integrated Industrial Platforms (Arise IIP), targets to create and sustain an environment in which export-oriented industries can thrive, by leveraging economies of scale, shared infrastructure and access to global markets.
Two projects to be undertaken by Afreximbank, with the support of the Government of Kenya and other strategic collaborators, are the development of the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II (Naivasha II).
Having secured leases of the relevant land, Afreximbank intends to leverage the expertise and experience of Arise IIP, a special economic zone developer with experience in the development of integrated industrial parks in Africa.
Both the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II are included in the Fourth Medium Term Plan (2023-2027) of the government’s Vision 2030, dubbed “Bottom-Up Economic Transformation Agenda for Inclusive Growth”,
This reflects the high priority which state institutions are giving to measures that strengthen, expand and accelerate Kenya’s capacity to export value-added goods within Africa and globally.
Speaking on the signing, President William Ruto said the signing of these agreements marks a significant milestone in Kenya’s development, expanding opportunities to enhance our manufacturing sector and create a more conducive environment for investment.
“We have a responsibility to steer the country in the right direction, harnessing the immense potential of manufacturing, industrialization, agro-processing, and value addition within SEZs,” he said.
“We convene here to sign an investment – and not a loan – undertaken by people whose faith in this country and its possibilities motivates their decision. This is our country, let’s continue to do whatever it takes to make it an attractive destination for those who want to invest.”
On his part, Afreximbank President and Chairman of the Board of Directors Benedict Oramah said Africa has been heralded as a land of opportunity, blessed with resources that power the world.
Yet, he added, the continent has struggled to translate this wealth into lasting prosperity for its people.
“For decades, we have watched as others reap the rewards of our natural resources, leaving us tethered to a cycle of dependency; exchanging our riches for aid and loans that kept us on the fringes of the global breadbasket,” Oramah said.
“Those days are behind us. Today, Kenya takes a bold step to reshape this story in a profound and impactful manner. These Parks are an integral part of the Government’s plan to boost the country’s economic growth under the Vision 2030 development blueprint.”
“Today’s signatures are more than ink on paper; they are a promise to the people of Kenya, a pledge that the country will rise as a beacon of industrial might and self-reliance.”
The Dongo Kundu Industrial Park within the Mombasa SEZ is expected, upon completion, to boost the area with a state-of-the-art industrial park that will contribute significantly to economic growth and industrialisation efforts in Mombasa County and in Kenya as a whole.
The Naivasha II Special Economic Zone, Naivasha II project, which is located at Mai Mahiu is expected to include a free trade zone, an industrial park, a logistics zone and a public utility area with a supporting road network. The project will occupy an area of approximately 5000 acres.
The Naivasha II project aims to also derive value from its strategic geographic position as it sits on the gateway to East and Central Africa through the Northern Corridor Transport System, which comprises both a standard gauge railway and a major highway.
Moreover, the SEZ will be close to the Naivasha Inland Container Depot, which serves the East African hinterland countries of Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan and Uganda.
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