Mega infrastructure projects are planned for East Africa and are set to create unique opportunities and open new markets in Kenya, Uganda and Ethiopia.
Market analyst Frost & Sullivan (F&S) says industry sectors expected to benefit from the planned infrastructure developments include oil and gas (O&G), mining, agriculture and retail.
The new F&S report, ‘African Infrastructure Tracker: Kenya’, reveals that an estimated $55.6 billion in investment into infrastructure development for Kenya is planned, the majority of which will focus on telecommunications and power generation.
“Transport infrastructure has undergone major upgrades over the past five years in order to support the high trade demand in the East African region,” said Frost & Sullivan senior economic consultant Craig Parker. “The Nairobi Southern bypass, for example, was commissioned in 2012 and is already 40% complete.” Major road projects that are currently under way were established to alleviate the severe bottlenecks and traffic congestion. An estimated US$5.14 billion has been dedicated to road project investment in Kenya.
However, disputes and illegal occupation of land in areas where infrastructure projects are under way, or are about to take place, have resulted in high relocation costs. This will culminate in delays along with escalating project completion costs.
Furthermore, legislative changes to the tendering process in Kenya have placed limitations on the type of projects international firms can get involved in. In order to address these challenges, and be accepted for infrastructure project tenders, global firms will be required to form local partnerships or joint ventures with domestic firms.
Kenya set for major infrastructure development
Comments | 0
© Now Media. This content is protected by copyright and may not be adapted or republished. If you would like to discuss cooperation opportunities, please contact: editor@freightnews.co.za.
