Wednesday 12 June 2013

LAPSSET PROJECT TO BOOST ECONOMIC GROWTH IN THE REGION

Infrastructure development is an important lever through which a country can deliver fast socio-economic development. Kenya has set out to roll out an ambitious infrastructural project that will link its Indian ocean city of Lamu through its vast northern region to two neighboring countries; Southern Sudan to the North west and Ethiopia to the North. Dubbed The Lamu Port-Southern Sudan–Ethiopia Transport (LAPSSET) corridor, this project will comprise development of a brand new Lamu port at the coast with a new oil refinery, an oil pipeline, standard gauge railway line and a road network  linking Lamu and the two countries. Along the corridor, airports, resort cities and a vibrant tourist and livestock industries are expected to come up that will completely transform the region, improve the lives of the indigenous communities and generally contribute to the countries’ Gross National Product.  The LAPSSET project is therefore a critical flagship project of the Vision 2030 given the socio-economic project that is expected from its implementation.

Benefits of the project include opening up of the northern region of this country which for a long time has been in the periphery of development. The Northern region has huge potential for Livestock industry through production of beef, hides and skins and other related products which have a ready market in the Middle East countries. It is the prerogative of the government to initiate programs that enable exploitation of the vast potential within the region. Such programs should highly be based on those that will improve value addition through use of ST&I to increase market competitiveness of the products that will come from the region. The construction of an International Airport at Isiolo, is indeed a good starting point because it will offer investors easy access the international market through export of the goods and services.
The region is also home to wildlife which is a big attraction to the tourist industry but which has not been exploited due to reliable mean of transport and communication. The development of efficient and diversified transport system including standard gauge railway system and international airport will significantly change this scenario and lead to setting up of resort cities and metropolis in the once marginalized areas along the route.

Other benefits expected from this project will include increased opportunities for investment by both local and foreign investors; strengthening regional integration of the East African region through increased trade and interconnectivity by the alternate route for northern African countries to the Eastern and Central African bloc. Moreover, the construction of Lamu port as a second harbor with more berth space for ships,  will increase trade opportunities especially between Kenya, Southern Sudan and Ethiopia and the international world hence strengthening our regional ties and creating more business opportunities for the people from the three countries. Feasibility studies already undertaken show that the project once finalized will contribute between 2% to 3% of GDP to the economy.

Given the huge overall impact of the project that touches on different sectors such as tourism, livestock and mining industry, there is need that the government critically look into the technical and human capacities required for its successful implementation. In as much as the project will create thousands of jobs directly and indirectly, we must also acknowledge that the country is lacking in some of the key human capacities that will be required to drive the different sectors. More critical will be in the engineering sector required to construct the railway and lay the pipeline from Lamu to South Sudan. And with the discovery of oil in Turkana, we will also need a substantial number of petroleum experts in both mining and refining that will allow the country maximize on the profits from the oil sector. To gain from livestock production, the regions will need more animal production experts, breeders and allied technologies to open up livestock potential to local and international investors. This must start will training of more extension officers that will educate the pastoralists on effective animal husbandry and advise on existing markets for their animals and animal products. Investors in the tourism industry on the other hand must take advantage of expected transport corridor in the region and establish hotels and resorts that will tap into the huge tourists potential that exist in the region.

Even as the governments plan to do all these, it must address the challenges of lack of social infrastructure such as housing, schools, hospitals, water and sanitation services, as well as electricity. There is a need to roll up programs that will change the community mindset and to deal will negative cultural issues of the pastoralist communities that have been impediments of socio-economic development for a long time. The community around the project needs to understand they would be the virst beneficieafies, and should demonstrate the sense of ownership.

It is commendable that the government have already set up the The Lamu Port-Southern Sudan–Ethiopia Transport Authority to spearhead development and realization of the project. It is vital that we develop effective strategies that will help ensure successful delivery of the mandate of the project. The Authority need to engage key stakeholders in the various sectors, communities and international partners to ensure that all constructive interests are taken on board and that the project delivers as per its objective within the laid down time lines. My appeal to community around LAPSSET is to look at the bigger picture and visualize how the project will transform the community and the countrys social and economic status positively. Transformational leadership is a must to realize this Big Vision.



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