by Carlos Kpodiefin
The development of transport infrastructure is the cornerstone of African regional integration and a key factor in reducing logistics costs. It is with this goal in mind that the Multilateral Cooperation Center for Development Finance (MCDF) has approved a significant grant that could transform a major trade corridor in East Africa.
During its Governing Committee meeting in Beijing on November 25, the MCDF approved a grant of USD 3.15 million to finance the preparation phase of a road enhancement project in Kenya. The objective is clear: to boost transport and trade between East Africa’s interior areas and Kenya’s Port of Mombasa, a vital gateway for the region.
A Structuring Public-Private Partnership (PPP)
The project, which will be implemented by the Asian Infrastructure Investment Bank (AIIB), focuses on upgrading a 243-kilometer stretch of road between Mau Summit, a town in western Kenya, and Malaba, the strategic border town with Uganda.
The Road: A Regional Hub
Malaba is more than just a border town; it is a crucial gateway to several regional markets:
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Uganda
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Eastern Democratic Republic of Congo (DRC)
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Northwestern Tanzania
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Rwanda
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Burundi
This road is an integral part of the Trans-African Highway Network, and its improvement will directly impact the supply chain for the entire area.
The Feasibility Study: A Pledge of Transparency and Viability
The MCDF grant is specifically earmarked to finance a detailed feasibility study for this Public-Private Partnership (PPP) project. This study is fundamental to securing investment and ensuring the project’s sustainability.
It will cover essential aspects:
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Technical viability and engineering risks.
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Climate resilience, an increasingly pressing issue in East Africa.
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Environmental and Social (E&S) safeguards.
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Tolling affordability, to ensure that costs do not negate the logistical benefits.
The study aims to establish a transparent, bankable PPP that aligns with International Financial Institution standards, thus enabling the mobilization of substantial private investment. It will also prepare the project’s PPP structure, contract, and tendering documents.
AIIB: First Standalone African Endeavor
This project is doubly symbolic for the AIIB. It marks:
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The AIIB’s first standalone investment in Kenya.
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Its first PPP structuring in Africa.
Building on the findings of a pre-feasibility study already financed by the AIIB, this initiative directly responds to the formal request from the Government of Kenya to advance the preparation of the Mau Summit-Malaba road project.
The expected impact on logistics is considerable: reduction in accidents, easing of traffic congestion, minimizing truck idling time, and consequently, reducing carbon emissions.
Ultimately, the upgrade of this corridor is expected to facilitate trade by drastically lowering transport time and cost along one of the region’s most important trade routes—a strong signal sent by Kenya to its continental partners.
