LAPSSET project to ignite a boom in trade in the country and this is why?

Covering a territory stretching over 75,000 square kilometres (17 per cent of Kenya’s total landmass), 5000sq km of lake, 400km of shoreline and a 500km long border with Ethiopia, Marsabit County is ripe for a business bonanza. With the largest number of domestic animals in Kenya (according to the last census) and natural resources to generate wind and solar power, Marsabit’s business potential is ready for takeoff.

And what a time for the county to achieve the goal of becoming a major trading region as the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor project inches closer to the interior of the vast land of pastoralists endowed with hundreds of livestock and untapped natural resources.

A section of the lapset road under construction

According to the government, the LAPSSET corridor project is envisioned to open up the pastoral regions, particularly in the north of Kenya,  that will now be the next growth frontier for the entire economy as the project facilitates socio-economic development with the completion of key infrastructure projects.

It will lead to an increase in electric power generation through various energy initiatives such as clean energy and attract increased private sector investment in infrastructure development and management in the country. It is this potential investment boom brought about by the project that Marsabit County is preparing to lurch on. “The LAPSET project will automatically open up Marsabit for business,” says Golicha Sora, the county executive for Trade, Industry and Development.

“Anyone who follows development trends in the country and indeed the world need not be told that economies have always thrived along a railway-line or a major highway,” he adds .He says Marsabit is set to take off economically, cashing in on the benefits expected to be brought about by the LAPSSET project due to its strategic location. “We have the longest international border with Ethiopia, which has a population of over 90 million people. The highway will therefore open a world of opportunities for the people of Marsabit,” says Sora.

The new highway, will link Marsabit to Djibouti port through Ethiopia’s well-established road infrastructure and onwards to livestock markets in the Middle East. “It takes traders several weeks, even months to reach the port of Mombasa or Djibouti with their livestock, but with the construction of the LAPSSET corridor, livestock merchants will be spoilt for choice between Djibouti, Lamu and Mombasa ports. All factors considered, the Djibouti port will be most ideal since it will be the closest,” he says.

The county government sent a high powered delegation to Dubai last year to negotiate investment terms with key United Arab Emirates (UAE) officials and corporate and individual investors on key investment opportunities, says Sora.“We put forward a proposal for partnership in livestock value addition, which included the construction of a modern abattoir and the setting up of livestock infrastructure such as dry land ranches and veterinary laboratories to control livestock diseases,” he says.

Co-operative Bank  Marsabit branch

He adds: “We recognised that exporting finished livestock products to this destination would be more profitable than exporting live animals.” Dubai has expressed interest in the proposed Sh300 million abattoir, adding that investors in the Middle East are also planning to venture into the county’s untapped mineral wealth.

“Marsabit has potential for the extraction of minerals such gold and iron ore, according to provisional geological results. We are engaging specialists at the University of Nairobi to confirm the viability of these deposits,” Sora discloses. Wind power generation is expected to receive an injection of Sh300 billion worth of investments.

Salt mining and fish processing were also options put on the table during the negotiations. A salt processing plant and fish processing with cold storage facilities proved critical selling points. To fully exploit the opportunities presented by the LAPSSET project, the Marsabit

County administration will develop cities and markets along the corridor to maximise inter and intra-county trade. Already the county government has plans to build a modern market in Marsabit town at a cost of Sh359 million in a bid to position the town as the transit point for trade in the entire region.

Locally, the county government is putting in place plans to bolster Small and Medium Enterprises (SMEs) by equipping women and youth with business skills. In collaboration with United Nations Development Programme (UNDP), the county’s Trade department has initiated a “business idea completion” across 20 wards to select the best 800 investment ideas.

Forty people will be identified in each ward to receive funds from the Youth Fund to start their own businesses. UNDP has agreed to fund a training programme for trainers in a bid to grow entrepreneurship in the county.