- To facilitate the execution of these projects, Afreximbank will collaborate with Arise IIP.
- In May, the lender rolled out a $3 billion program aimed at spurring Kenya’s economic growth.
- The plan will also include the establishment of the $600 million e-mobility manufacturing plant in Kenya.
African Export–Import Bank, popularly referred to as Afreximbank, has entered into an agreement with Kenya that will see the lender identify key economic projects that it will finance and manage.
Under the deal signed on May 2, 2023, Afreximbank, through its subsidiary, will conduct a comprehensive feasibility study on these proposed projects. It will them provide the necessary financing for their implementation.
One of the major focus of Afreximbank in Kenya is to provide funding for various special economic zones spread across different counties. The initiative is part of the broader industrial parks development and investment plan for Special Economic Zones (SEZs) in Africa.
“On the 2nd of May 2023, GoK and Afreximbank signed a Memorandum of Understanding to provide a framework of cooperation and to facilitate collaboration for the development, financing and implementation of identified projects,” reads the government of Kenya-Afreximbank meeting briefing document.
To facilitate the successful execution of these projects, Afreximbank’s subsidiary, Fund for Export Development in Africa, will collaborate with their partner, Arise Integrated Industrial Platforms Limited (Arise IIP).
Afreximbank targets trade investments
Arise IIP will play a crucial role in conducting detailed studies and feasibility analyses, as well as taking charge of the development, financing, management, and operation of these integrated industrial platforms.
The Kenyan investments form a part of the overall $400 million agreement in principle that Afreximbank has extended to ARISE IIP. This funding will be utilized for the development of industrial parks and Special Economic Zones in multiple African countries, aiming to boost economic growth and industrialization across the continent.
In Mombasa the projects will pump funds into the Dongo Kundu SEZ including the Port of Mombasa logistics part.
Other projects include Naivasha II SEZ, Isiolo SEZ, Nasewa EPZ in Busia County, Eldoret EPZ in Uasin Gishu, Sagana EPZ in Kirinyaga and the specific assets studies and operationalization of Kenanie Leather Park and of Rivatex Textile East Africa.
The plan will also include the establishment of the $600m e-mobility manufacturing plant in Kenya.
“In order to fully attain the envisioned objectives, it is important the Government of Kenya prioritises the itemised actions and initiatives which are strategic to national economic development under the Kenya country programme,” the lender said in statement.
In may the lender rolled out a $3 billion program aimed at spurring Kenya’s economic growth. The three-year programme by the African Export-Import Bank will support viable trade and trade-related investments in Kenya’s private and public sectors.
Funding African projects
President William Ruto has been has been pushing for African states to support the pan-African lender in funding projects. During a meeting with Afreximbank president Benedict Oramah and former Nigerian president Olusegun Obasanjo, Dr Ruto pointed out that the bank will play a crucial role in boosting intra-African trade with its Pan-African Payment System.
Speaking earlier in the month President William Ruto said the programme is a step forward in the county’s economic recovery agenda. It will assist the government following shocks occasioned by the COVID-19 Pandemic as well as the global economic crisis.
“We intend to leverage e-commerce and e-jobs as we digitise government services. We also aim to reduce pressure on our FX reserves. I also pledge my support for the Pan African Payment and Settlement System (PAPSS) towards adopting the platform in order to minimize currency challenges and bottlenecks in trade on the continent.’’