Implementation of Vision 2030 projects to boost economy

By Billow Kerrow

I dream of the good times to come in Kenya in just under two decades, God willing. If we pursue the Vision 2030 flagship projects, Kenya will be a great nation in the economic development arena. The big ‘if’ is premised on political stability, good governance and sound economic policies.

The new political dispensation that embraces public participation and accountability is a key ingredient in attainment of these goals. President Kibaki may have squandered his first term but he has done pretty well in his second term.

His commitment to development of infrastructure projects that underpin our economic development is particularly inspiring. If there was no constitutional limit, I would have been tempted to consider him for a further term. Perhaps President Museveni’s recent remarks that the longer one stays in power, the better in governance befits our old man.

This week’s groundbreaking ceremony of the Sh2 trillion (US$25 billion) Lapsset project is a momentous occasion for the region, and a sea of hope for its impoverished masses. As the largest infrastructure project in the region, it symbolises the dawn of freedom that destroys the colonial barriers to trade and investment, and the free movement of people.

Trade among African nations has long been hindered by artificial barriers of poor infrastructure and people communication. That we can share facilities and link our nations is the sure route to economic progress.

Admittedly, building physical structures is the easy part as we have seen in the East African Community integration process. Non-tariff barriers and regulations have slowed down integration and restricted free flow of goods and services, and people, among member countries. Absence of strong political commitment by leaders uncertain about their future, and fearful of their neighbours, is a key impediment.

Lapsset is doable if we target public-private partnerships (PPPs) and tap into the huge investment funds now focused on Africa. Reliance on governments to fund it will come a cropper. Kenya, Ethiopia and South Sudan governments are economic midgets financially, and largely dependent on donors, even to feed the hungry and to educate the children.

The project will be viable too, subject to political stability, and the economic growth of the three countries. A major slow down in Ethiopia and South Sudan may render the project a white elephant. The expected oil boom in the wider East Africa, including Somalia, may also dim the project’s competitiveness unless we move with speed to complete them well before others come on stream.

Lapsset is expected to create economic wealth and enhance our competitiveness. Our freight costs are 30 per cent higher than South Africa, and more than 60 per cent higher than in Europe. As the seaport country, Kenya should reap economic benefit from servicing the landlocked countries of Ethiopia, South Sudan, Rwanda, Uganda and Burundi.

The Government should also focus on the Northern Corridor that requires a major overhaul as it holds the greatest return on investments. Mombasa serves our nation, and our economy is dependent on it. It also serves Uganda, our largest trading partner. That port is dying, and fast. It takes an average of 23 days to clear goods, compared to four days in European ports.

Mombasa, the main source of tourism revenue and the simply the largest foreign exchange earner, is in shambles in terms of infrastructure. City roads are dilapidated, water is scarce and power is grossly inadequate. The railway network, which links Mombasa to our industrial and agricultural heartland and to Uganda, is archaic and only fit for the museum. Regrettably, Mombasa road is also getting clogged with traffic. Kibaki please!

I can’t wait to see the groundbreaking ceremony for the Konza smart city too! If you find the Lapsset project low-tech, keep your eyes on Konza city for the hi-tech, fast-lane projects. At this pace, our political leaders won’t mind US visa bans!

The writer is a former MP for Mandera Central and political economist