Despite the tough political environment and the long electioneering period that almost threw the country in a political crisis, Kenya still remains the preferred host for regional investment conferences.
The latest is the two-day East Africa Rail Conference 2017 that brought together over 300 rail industry players and experts from Africa and beyond.
The event that took place on November 21-22 at a Nairobi hotel was a bench-marking and networking platform of industry experts from different countries to explore ways to catapult growth in rail infrastructure.
The conference, which was organised by regional rail players in partnership with Brand Kenya Board and Kenya National Chamber of Commerce and Industry (KNCCI), emphasised the need for more collaborations in the sector to strengthen the region’s and in essence Kenya’s position as a gateway and a transport and logistics hub to the East African sub-region and the entire Great Lakes region.
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It is estimated that over $100 billion is being invested in rail projects in the region, which in essence will facilitate trade, promote regional economic integration and boost interconnectivity between African countries. Africa’s landmass is estimated to be 30 million square kilometers with 66, 011 kilometers of rail roads concentrated in coastal areas to transport raw materials to ports.
Kenya, being the economic hub of East Africa, is spearheading the development of Lamu Port-South Sudan-Ethiopia- Transport (LAPSSET) Corridor Project.
Development of rail infrastructure is one these key projects under LAPSSET.
“Availability of an efficient transport system can be a boost or a barrier to economic growth within individual nations,” said Brand Kenya Board’s Head of Branding Mwihaki Wachira in a presentation on Innovative Financing of Railway projects in Africa during the conference. She added that the Kenya Brand competitiveness index will significantly be impacted with the development of an efficient transport infrastructure.
Kenya is now ranked 3rd in the Sub-Saharan Africa in ease of doing business, according to the 2017 World Bank Ease of doing Business Index, moving up 12 places. This is thanks to good legislation and opening up the country more for trade.
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Kenya’s Standard Gauge Railway (SGR), which was billed as one of the most ambitious projects, has been one of the greatest success stories. Kenya plans to extend the SGR to Kampala and Kigali in Uganda and Rwanda, which will translate to more trade links, since it is estimated that freight trains are able to carry 25 million tonnes per year.
“The government aims to establish a port in Kisumu to serve Uganda and Tanzania as part of SGR Phase 2, which will open up the region and ease doing business further,” said Kenya Railways Managing Director Atanas Maina during the conference.
Some of the delegates who spoke at the conference included representatives from Rail Working Group, Switzerland, Egyptian National Railways, Uganda Railways Corporation, Ethiopian Railways Corporation, Rwanda Transport Development Agency, Industrial Infrastructure, IDC, South Africa, COMESA and ACTESA, TAZARA, Tanzania, among others.
