Afreximbank to boost Kenya’s logistics sector

African Export-Import Bank (Afreximbank) has signed a loan agreement to fund development and operationalisation of two major industrial parks and special economic zones in Kenya

The projects include the development of the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone (SEZ) II (Naivasha II).

The proposed industrial parks — to be developed by Afreximbank through its affiliate company, Arise Integrated Industrial Platforms (Arise IIP) — will create and sustain an environment in which export-oriented industries can thrive, by leveraging economies of scale, shared infrastructure and access to global markets, the bank said in a statement.

Arise IIP is a special economic zone developer with experience in the development of integrated industrial parks in Africa.

Afreximbank has also committed to a three-year US$3bn country programme to support trade and trade-related investments intended to bolster Kenya’s industrialisation and export manufacturing.

“These parks are an integral part of the government’s plan to boost the country's economic growth under the Vision 2030 development blueprint,” said Professor Benedict Oramah, president and chairman of the board of directors at Afreximbank.

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 is located at Mai Mahiu and will 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 5,000 acres.

The Naivasha II project will 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.

Kenya’s President Dr. William S. Ruto, at the signing ceremony, commented: “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.”