Afreximbank inejects $3Bn in Kenya’s industrialization push

• Part of Afreximbank’s funding will go to Dongo Kundu Industrial Park within the Mombasa Special Economic Zone.
• Another chunk will finance the construction of Naivasha II SEZ that includes a free trade zone, an industrial park, a logistics zone and a public utility area.
• The Naivasha II project will also derive value from its strategic position as it sits on the gateway to East and Central Africa through the Northern Corridor Transport System that serves Uganda, South Sudan, DRC among other countries.

The Afreximbank has entered into a financing agreement with Kenya to finance the development of industrial parks, special economic zones, and export-oriented manufacturing projects to the tune of $3 billion.

In an update, the trade development lender said this three-year investment plan will be critical in bolstering Kenya’s export manufacturing at a time when the East African nation is keen on reviving its ailing manufacturing industry.

“These Parks are an integral part of the Government’s plan to boost the country’s economic growth under the Vision 2030 development blueprint. Today’s signatures are more than ink on paper—they are a promise to the people of Kenya, a pledge that the country will rise as a beacon of industrial might and self-reliance,” noted Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank.

He added, “Africa has been heralded as a land of opportunity, blessed with resources that power the world. Yet, we have struggled to translate this wealth into lasting prosperity for our people. For decades, we have watched as others reap the rewards of our natural resources, leaving us tethered to a cycle of dependency—exchanging our riches for aid and loans that kept us on the fringes of the global breadbasket.”

The projects under focus will be developed by Afreximbank through its affiliate company, Arise Integrated Industrial Platforms (Arise IIP). Afreximbank said that this investment is poised to create and sustain an environment in which export-oriented industries in Kenya can thrive by leveraging economies of scale, shared infrastructure and access to global markets.

Key projects that Afreximbank is financing in Kenya

Some of the target projects are the development of the Dongo Kundu Integrated Industrial Park in Kenya’s Coast and theset up of Naivasha Special Economic Zone II (Naivasha II) in the country’s Rift Valley region.

In a statement the two parties said the projects have already secured leases of the relevant land, and Afreximbank intends to leverage the expertise and experience of Arise IIP, a special economic zone developer with experience in the development of integrated industrial parks in Africa to turn the dream into reality.

Both the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II are included in the Fourth Medium Term Plan (2023-2027) of the Kenyan government’s Vision 2030, entitled “Bottom-Up Economic Transformation Agenda for Inclusive Growth.”

This growth blueprint seeks to strengthen, expand and accelerate Kenya’s capacity to export value-added goods within Africa and across the globe.

“The signing of these agreements today marks a significant milestone in Kenya’s development, expanding opportunities to enhance our manufacturing sector and create a more conducive environment for investment,” remarked President William Ruto at the signing ceremony.

He added, “We convene here today to sign an investment – and not a loan – undertaken by people whose faith in this country and its possibilities motivates their decision. This is our country, let’s continue to do whatever it takes to make it an attractive destination for those who want to invest.”

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 5000 acres.

Read also: Kenya, Tanzania and Congo corridors to drive East Africa trade growth by 2035

Strategic geographic position

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.

Mrs. Oluranti Doherty, Managing Director of Export Development at Afreximbank, and Captain William Ruto, Managing Director of the Kenya Ports Authority, signed the Dongo Kundu Special Economic Zone agreement. Dr. Kenneth Chelule, Chief Executive Officer of the Special Economic Zones Authority, and Mrs. Doherty signed the Naivasha Special Economic Zone agreement.