Target private capital to grow maritime sector, Kenya urged

 

Over the years, Kenya and other African countries have shied away from capital-intensive projects in the maritime industry due to budget constraints or lack of immediate returns.

For instance, it took over 30 years for three berths of the Lamu Port to be constructed due to lack of funds.

Now Kenya and other African maritime countries are being encouraged to use public-private partnerships (PPPs) to access private-sector capital to fund capital-intensive projects in the maritime industry.

During a meeting in Mombasa, a United Nations agency urged maritime nations in the continent to allocate adequate funds to promote development in the maritime sector.

The International Maritime Organisation (IMO) director for technical cooperation Youngso Kim noted that member countries should explore customising national strategies and national maritime development plans that prioritise budgets to develop the maritime industry.

He noted that PPPs are an important approach for countries to enhance the growth of the maritime sectors. PPPs are long-term contracts between a private party and a government entity to provide a public service or asset.

“The maritime sector can propel a country’s economy. We need to work on improving budgets for maritime activities,” Kim urged.

He was speaking during IMO’s Eastern and Southern Africa knowledge partnership forum held at a Mombasa hotel last week.

The meeting hosted by Kenya Maritime Authority (KMA) drew participants from 14 IMO member states in Africa.

They included Kenya, Tanzania, Uganda, Ethiopia, Somalia, South Africa, Seychelles, Comoros, Madagascar, Malawi, Angola, Zambia, Zimbabwe and Namibia.

The meeting highlighted maritime technical cooperation activities and Official Development Assistance.  

It focused on empowering member states to embrace PPPs in developing their maritime sectors in the face of low funding and reduced budgets for maritime work.

The forum was held when Kenya was building Lamu as the second-largest commercial port after Mombasa.

Kenya Ports Authority (KPA) has also been kitting the first three berths at Lamu port and building roads to attract ships to the new facility.

Recently, Kenya upgraded the infrastructure at Kisumu port to serve the Great Lakes region including Tanzania and Uganda.

Kenya is planning to build a port infrastructure to serve the upcoming Mombasa Special Economic Zone at Dongo Kundu near the port of Mombasa.

Local and foreign companies have been preparing to set base in Dongo Kundu which is billed as a multi-billion-shilling project meant to create economic opportunities and jobs for the country.

Kenya is set to establish an Sh3.4 billion maritime search and rescue centre in Kisumu to boost safety on Lake Victoria including Tanzania and Uganda.

Addressing participants last week, KMA acting director general Julius Koech said the gathering was not only a testament to Kenya’s commitment to regional cooperation but also a reflection of the increasing significance of technical partnerships in addressing the unique challenges countries in the region face in maritime governance.

During the forum, participants were familiarized with the IMO’s resource mobilization strategy, a framework designed to enhance regional capacity to engage with donors, multilateral development banks and private sector partners.

Every country’s representative also made presentations on their maritime policies, development mechanisms, and investment priorities to enable participants to identify synergies, determine new opportunities for collaboration, and work together towards common goals within the 2030 agenda for sustainable development.

He told development partners and donors in the forum, “the technical and financial assistance you provide plays a crucial role in helping our countries address pressing maritime challenges, from enhancing port infrastructure to advancing maritime safety, security, maritime education and training, and environmental protection.”

He said the support development partners will empower the collective efforts toward sustainable and resilient maritime development in the African region.

Meanwhile, the government will remove abandoned ships at the Coast in Malindi, Kilifi county, to ensure the safety of navigation.

KMA said it has taken possession of Ahadi 001 and Ahadi 002 and will remove the vessels because they pose a danger at sea.

In a notice dated October 25, this year, Koech said KMA has taken possession of the two vessels in line with section 323 of the Merchant Shipping Act, 2009, and other applicable laws.

“A declaration is issued under section 323 of the Merchant Shipping Act, 2009 that the two marine motor vessels, previously known as Ahadi 001 and Ahadi 002, are abandoned at the coast at Malindi, Kilifi County, and are an obstruction and danger to navigation and a threat to the marine environment,” said Koech.