Kenyan firms eye Sh170bn fund for EA conflict areas
What you need to know:
The money set aside by the World Bank and the United Nations seeks to benefit firms that expand operations into the 11 countries that border lakes Victoria, Tanganyika and Nyasa (Lake Malawi), commonly called Great Lakes Region (GLR).
GLR states include Kenya, Tanzania, Uganda, Rwanda and Burundi. Others are Angola, DRC, Sudan, South Sudan, Zambia and the Central African Republic.
Kenyan firms are in the race for a larger share of the Sh170 billion ($2 billion) interest-free fund that the international community has set up for companies investing in the conflict-prone eastern Africa.
The money set aside by the World Bank and the United Nations (UN) seeks to benefit firms that expand operations into the 11 countries that border lakes Victoria, Tanganyika and Nyasa (Lake Malawi), commonly called Great Lakes Region (GLR).
“The criteria for accessing the fund will be agreed on when the GLR states meet in Angola in July but generally, firms will qualify according to ability to generate jobs and stimulate economic activities,” said Mr Ken Vitisia, Kenya’s co-ordinator of GLR matters.
The GLR states include Kenya, Tanzania, Uganda, Rwanda and Burundi. Others are Angola, DRC, Sudan, South Sudan, Zambia and the Central African Republic.
The international community believes failure to engage youth in economic activities has contributed immensely to perennial conflicts in parts of this 312 million-people market.
The Kenyan firms, which already control a significant slice of the 140 million-people EAC market, are seen as front runners in the renewed campaign to boost cross-border investments.
“We hope to see businesses that are networking and creating opportunities that can boost peace,” Modibo Toure, UN’s special advisor on Great Lakes Region, said yesterday at joint forum on investments organised by the private sector and foreign affairs ministry.
Kenya has invested heavily in regional peace efforts, starting with its current engagement in Somalia under the African Union Mission to Somalia (Amisom) which has significantly changed the war-torn state’s investment profile.
The foreign affairs ministry also cites Kenya’s engagement in South Sudan, Central African Republic, Darfur, the Democratic Republic of Congo, Guinea Bissau and Mali as signals of its interest in the region.
In DRC, which is one of the most watched markets in Kenya, the ministry steered successful negotiations and the signing of deal between DRC and M23 Movement in Nairobi last year.
Early this year, it oversaw the signing of Peace, Security and Cooperation Framework for DRC and the Great Lakes Region.
“The African market remains our top priority as we negotiate bilateral deals and ponder poor connectivity,” said trade and foreign affairs Principal Secretary Karanja Kibicho.
Kenya however faces stiff competition from South Africa which has shown great appetite for Africa-focused investments after it signed the GLR treaty last year to participate in boosting peace through investments.
