This archive report was first published on 11 August 2019.
The Lamu Port in Kenya is poised to play a crucial role in the Africa-wide free trade area, launched on July 7, 2019. The port aims to link up with transport networks in other countries in the region, forming a giant corridor that connects the East African coast to the seaboard in West Africa.
The Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor Development Authority (LCDA) has stated that this would make it a formidable enabler for the African Continental Free Trade Area (AfCFTA). The corridor hopes to link up transport networks in the Central African Republic and Cameroon, making it a critical component of the 'equatorial land bridge' across Africa.
According to LCDA, Raila Odinga, the African Union Commission's High Representative for Infrastructure Development, has been drumming up support for the corridor at the AU. In a statement, LCDA said, “... a strong case has been made to the AU on the LAPSSET Corridor Project’s strategic position to connect not only Ethiopia and South Sudan, but also connecting to Central African Republic (Bangui) and Cameroon, terminating at Port of Douala.”
The AfCFTA agreement, adopted on March 21, 2018, aims to remove trade barriers, including tariffs on most goods, to form a continent-wide free trade zone. The agreement came into force on May 30, 2019, and currently has 27 members, with Kenya being among the members that ratified it shortly after formation.
Analysts note that certain factors, such as poor rail and road networks, bureaucracy at border crossing points, and corruption, limit trade in Africa. However, the LAPSSET Corridor Development Authority believes that through infrastructure development, new markets will be established, growing intra-African trade from the current 15 per cent.
LCDA added that Raila as the AU’s special envoy planned to convene a high-level meeting with the countries that fall along Africa’s equatorial land bridge later in the year with the aim of forming these crucial transport infrastructure linkages within the continent.
It is worth noting that LAPSSET has recently completed the first of the three initial berths at Lamu Port, with the others expected to be completed in 2020. The Authority also stated that massive private sector interests have been registered to develop and operate the additional 29 berths as well as develop the new Lamu Port Industrial City.
